Financial Performance - Net income for Q3 2024 was $1838 thousand, a 574% decrease compared to $4315 thousand for the same period in 2023[8] - AFFO for Q3 2024 was $1399 thousand, compared to $(465) thousand for the same period in 2023[8] - Total operating revenues increased by $17 million, or 146%, despite a 67% decrease in the average gross book value of real estate[4] - Total operating expenses decreased by approximately $35 million, a 302% decrease compared to the same period in 2023[4] - The company increased the bottom and top end of 2024 AFFO guidance range to $024 to $030 from $020 to $026[5] Balance Sheet and Debt Management - Subsequent to September 30, 2024, the company completed 52 farm dispositions for $3080 million in aggregate consideration[5] - The company repaid $1894 million of debt with a weighted average interest rate of 577%, projecting $109 million of annual interest savings[5] - Debt as a percentage of gross book value decreased from 388% as of September 30, 2024, to 271% as of October 28, 2024[5] - The company had total debt outstanding of approximately $3940 million at September 30, 2024, compared to $3631 million at December 31, 2023[10] Portfolio and Dividend - As of September 30, 2024, the portfolio included approximately 1347 thousand acres of owned farmland and 478 thousand acres of managed farmland[43] - The company expects to issue a special dividend to shareholders at year-end, projected to be between $100 and $110 per share[6]

For the quarter ended September 2024, Farmland Partners (FPI) reported revenue of $13.32 million, up 14.6% over the same period last year. EPS came in at $0.03, compared to $0.07 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $11.88 million, representing a surprise of +12.07%. The company delivered an EPS surprise of +200.00%, with the consensus EPS estimate being $0.01. While investors scrutinize revenue and earnings changes year-over-year and how they compare wit ...

Company Performance - Farmland Partners (FPI) reported quarterly funds from operations (FFO) of $0.03 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, and compared to a loss of $0.01 per share a year ago, indicating a 200% surprise in FFO [1] - The company posted revenues of $13.32 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 12.07%, compared to year-ago revenues of $11.62 million [2] - Over the last four quarters, Farmland Partners has surpassed consensus FFO estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Farmland Partners shares have declined approximately 11.9% since the beginning of the year, while the S&P 500 has gained 22.3% [3] - The current consensus FFO estimate for the coming quarter is $0.15 on $20.1 million in revenues, and $0.22 on $55.42 million in revenues for the current fiscal year [7] Industry Outlook - The REIT and Equity Trust - Other industry, to which Farmland Partners belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions, suggesting that investors can track these revisions for better investment decisions [5]

[Report Overview and Highlights](index=1&type=section&id=Report%20Overview%20and%20Highlights) [Third Quarter 2024 Highlights](index=1&type=section&id=Third%20Quarter%202024%20Highlights) FPI reported lower Q3 2024 net income due to prior year's asset gain, but AFFO turned positive with 14.6% revenue growth and 30.2% expense reduction | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income | $1.8 million | $4.3 million | (58.1)% | | Net Income per Share | $0.02 | $0.07 | (71.4)% | | AFFO | $1.4 million | ($0.5) million | Positive Turnaround | | AFFO per Share | $0.03 | ($0.01) | Positive Turnaround | | Total Operating Revenues | +14.6% | - | - | | Total Operating Expenses | -30.2% | - | - | - The increase in operating revenues was achieved despite a **6.7% decrease** in the average gross book value of real estate, from **$1.08 billion** in 2023 to **$1.01 billion** in 2024, due to strategic asset dispositions[2](index=2&type=chunk) [Subsequent Events (Post-Q3 2024)](index=1&type=section&id=Subsequent%20Events) Post-Q3, FPI completed $308 million farm dispositions, repaid $189.4 million debt, significantly improving leverage and raising 2024 AFFO guidance - Completed **52 farm dispositions** for aggregate consideration of **$308.0 million**[3](index=3&type=chunk) - Repaid **$189.4 million** of debt with a weighted average interest rate of **5.77%**, eliminating all floating rate debt exposure and projecting **$10.9 million** in annual interest savings[3](index=3&type=chunk) - Leverage was significantly reduced, with debt as a percentage of gross book value decreasing from **38.8% to 27.1%** and the total debt to EBITDAre ratio falling from **10.9 to 5.8**[3](index=3&type=chunk) - Increased the full-year 2024 AFFO guidance range to **$0.24 - $0.30 per share** from **$0.20 - $0.26 per share**[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Luca Fabbri attributed strong performance to operational efficiencies and asset sales, which drove debt reduction, increased guidance, and a projected special year-end dividend - The CEO credits strong operating results to efficiencies from portfolio improvements and cost-saving measures initiated in 2023[4](index=4&type=chunk) - Asset sales generated gains of approximately **$53 million**, demonstrating the strong value embedded in the company's portfolio[4](index=4&type=chunk) - The company expects to issue a special dividend projected to be between **$1.00 and $1.10 per share** at year-end[4](index=4&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) [Financial and Operating Results Summary](index=2&type=section&id=Financial%20and%20Operating%20Results%20Summary) FPI's Q3 2024 net income decreased, but AFFO improved, while Adjusted EBITDAre and NOI showed healthy growth for both three and nine-month periods | Metric (in thousands) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $1,838 | $4,315 | $1,194 | $13,927 | | AFFO | $1,399 | ($465) | $4,713 | ($46) | | Adjusted EBITDAre | $7,649 | $6,317 | $22,752 | $18,804 | | Total Operating Revenues | $13,317 | $11,617 | $36,752 | $35,874 | | Net Operating Income (NOI) | $9,784 | $8,815 | $28,249 | $26,536 | [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2024, FPI's total assets slightly increased to $1.027 billion, liabilities rose to $406.5 million, and equity slightly decreased to $519.4 million | Balance Sheet Item (in thousands) | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total real estate, net | $974,646 | $961,531 | | Cash and cash equivalents | $8,090 | $5,489 | | **Total Assets** | **$1,027,123** | **$1,022,002** | | Mortgage notes and bonds payable, net | $392,244 | $360,859 | | **Total Liabilities** | **$406,482** | **$391,192** | | **Total Equity** | **$519,413** | **$528,840** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q3 2024 total operating revenues increased 14.6% to $13.3 million, expenses fell to $8.1 million, resulting in $1.8 million net income despite lower asset disposition gains | Income Statement Item (in thousands) | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Total Operating Revenues | $13,317 | $11,617 | | Total Operating Expenses | $8,094 | $11,602 | | (Gain) on disposition of assets, net | ($1,980) | ($10,293) | | Interest Expense | $5,496 | $6,230 | | **Net Income** | **$1,838** | **$4,315** | | Basic Net Income per Share | $0.02 | $0.07 | [Portfolio and Capital Management](index=2&type=section&id=Portfolio%20and%20Capital%20Management) [Acquisition and Disposition Activity](index=2&type=section&id=Acquisition%20and%20Disposition%20Activity) In the first nine months of 2024, FPI acquired three properties for $16.3 million with no dispositions, though significant dispositions occurred post-quarter - Acquired **three properties** for a total of **$16.3 million** during the nine months ended September 30, 2024[8](index=8&type=chunk) - There were no property dispositions during the nine months ended September 30, 2024[8](index=8&type=chunk) [Balance Sheet, Debt, and Liquidity](index=2&type=section&id=Balance%20Sheet%2C%20Debt%2C%20and%20Liquidity) As of September 30, 2024, FPI's total debt was $394.0 million with $140.2 million liquidity, significantly improving post-quarter with a $189.4 million debt repayment | Metric (in millions) | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Debt Outstanding | $394.0 | $363.1 | | Cash | $8.1 | $5.5 | | Undrawn Credit Availability | $132.1 | $201.1 | | **Total Liquidity** | **$140.2** | **$206.6** | - Subsequent to September 30, 2024, the Company repaid debt totaling **$189.4 million**[8](index=8&type=chunk) [Dividend Declaration](index=2&type=section&id=Dividend%20Declaration) On October 29, 2024, the Board declared a regular quarterly cash dividend of $0.06 per share of common stock - A quarterly cash dividend of **$0.06 per share** was declared, payable on January 15, 2025, to stockholders of record as of January 2, 2025[9](index=9&type=chunk) [Outlook and Guidance](index=1&type=section&id=Outlook%20and%20Guidance) [2024 Earnings Guidance](index=1&type=section&id=2024%20Earnings%20Guidance) FPI raised its full-year 2024 AFFO guidance to $0.24 - $0.30 per share, reflecting strong operational performance and recent asset sales and debt reduction | Guidance Metric | Previous Range | Updated Range | | :--- | :--- | :--- | | 2024 AFFO per Share | $0.20 - $0.26 | $0.24 - $0.30 | [Special Dividend Projection](index=1&type=section&id=Special%20Dividend%20Projection) The company projects a special year-end dividend of $1.00 to $1.10 per share, funded by gains from recent asset sales - A special dividend is projected for year-end 2024 with an expected value between **$1.00 and $1.10 per share**[4](index=4&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of Non-GAAP Measures](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The report provides detailed reconciliations of GAAP net income to non-GAAP metrics like FFO, AFFO, EBITDAre, Adjusted EBITDAre, and NOI, clarifying adjustments for performance measurement Q3 2024 Reconciliation of Net Income to AFFO (in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $1,838 | | (Gain) on disposition of assets, net | ($1,980) | | Depreciation, depletion and amortization | $1,414 | | FFO | $1,272 | | Stock-based compensation | $870 | | Distributions on Preferred units | ($743) | | **AFFO** | **$1,399** | Q3 2024 Reconciliation of Net Income to Adjusted EBITDAre (in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $1,838 | | Interest expense | $5,496 | | Depreciation, depletion and amortization | $1,414 | | (Gain) on disposition of assets, net | ($1,980) | | EBITDAre | $6,779 | | Stock-based compensation | $870 | | **Adjusted EBITDAre** | **$7,649** | [Definitions of Non-GAAP Measures](index=8&type=section&id=Definitions%20of%20Non-GAAP%20Measures) FPI defines non-GAAP measures including Nareit-standard FFO and EBITDAre, plus company-specific AFFO, Adjusted EBITDAre, and NOI, providing supplemental performance insights - **FFO (Funds from Operations):** Calculated per Nareit standards, it excludes gains/losses from property sales and real estate depreciation to measure operational performance[22](index=22&type=chunk) - **AFFO (Adjusted Funds from Operations):** FFO adjusted to exclude items not reflective of sustainable operating performance, such as stock-based compensation and acquisition costs[23](index=23&type=chunk) - **EBITDAre and Adjusted EBITDAre:** EBITDAre is calculated per Nareit standards. Adjusted EBITDAre further removes items like stock-based compensation to better reflect ongoing operating performance[25](index=25&type=chunk)[26](index=26&type=chunk) - **NOI (Net Operating Income):** Calculated as total operating revenues less property operating expenses and cost of goods sold, reflecting performance directly associated with owning and leasing farmland[28](index=28&type=chunk) [Other Information](index=2&type=section&id=Other%20Information) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) A conference call and webcast are scheduled for October 31, 2024, at 11:00 a.m. U.S. Eastern Time to discuss Q3 financial results and provide a corporate update - A conference call to discuss Q3 2024 results was scheduled for October 31, 2024, at 11:00 a.m. (U.S. Eastern Time)[11](index=11&type=chunk) [About Farmland Partners Inc.](index=3&type=section&id=About%20Farmland%20Partners%20Inc.) Farmland Partners Inc. is an internally managed REIT owning and/or managing approximately 136,000 acres of North American farmland across 15 U.S. states, also providing farmer loans - FPI is an internally managed REIT that owns and/or manages approximately **136,000 acres** of farmland in **15 states**[14](index=14&type=chunk) - The company's business includes owning farmland, making loans to farmers secured by farm real estate, and owning agricultural equipment dealerships[14](index=14&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements regarding the company's outlook, which are not guarantees of future performance and are subject to numerous market, geopolitical, and interest rate risks - The report includes forward-looking statements concerning the company's outlook, which are subject to risks and uncertainties[15](index=15&type=chunk) - Key risks mentioned include market factors affecting the special dividend, geopolitical conflicts, trade policies, inflation, interest rates, and weather events[15](index=15&type=chunk)

Table of Contents or UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36405 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock FPI New Yor ...

FPI LISTED Q2 2024 Supplemental Package Farmland Partners Inc. (NYSE: FPI) is an internally managed real estate company that owns and seeks to acquire high-quality farmland throughout North America addressing the global demand for food, feed, fiber and fuel. www.farmlandpartners.com | 4600 S Syracuse St Suite #1450 Denver CO 80237 | 720.452.3100 Table of Contents | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------- ...

Financial Data and Key Metrics Changes - For Q2 2024, the company reported a net loss of $2.1 million, with a net loss per share of $0.06, which is lower than the same period in 2023 due to prior year dispositions [22] - Adjusted Funds from Operations (AFFO) was $0.5 million, or $0.01 per weighted share, higher than the same period in 2023, positively impacted by lower property taxes and increased citrus sales [22][23] - Total operating expenses decreased by 7%, reflecting effective cost management [18] Business Line Data and Key Metrics Changes - Fixed farm rent decreased due to property dispositions, while direct operations revenue increased due to higher citrus and walnut sales [27][28] - The company disposed of approximately 10.4% of its portfolio, yet operating revenues were down only 1.2%, indicating improved portfolio performance [18] Market Data and Key Metrics Changes - Commodity prices for primary row crops like corn and soybeans are lower than in previous years, leading to challenges for farmers but not a broad economic crisis [9] - In California, while some crops like citrus have seen price increases, challenges remain due to water risks and rising labor costs [10] Company Strategy and Development Direction - The company plans to gradually reduce its exposure to California due to ongoing challenges in that market [13] - The management believes the company trades at a significant discount to its net asset value, with efforts to close this gap through asset sales [14][15] Management's Comments on Operating Environment and Future Outlook - Management anticipates modest rent increases of 5% to 10% for lease renewals, reflecting the current lower commodity price environment [33] - The company expects to see a plateau in farmland values rather than a decline, with no significant risk of asset price decreases in the row crop region [12][35] Other Important Information - The company has undrawn capacity on its lines of credit of approximately $158 million as of the end of Q2 [26] - The forecasted range of AFFO for 2024 is $9.8 million to $12.8 million, or $0.20 to $0.26 per share [30] Q&A Session Summary Question: What are the expectations for rent renewal leases given the current farm economy? - Management expects rent renewals to increase by 5% to 10%, which is lower than previous years due to the current economic environment [33] Question: How does the company view the current distress in the farming economy? - Management noted that while there are some distressed farmers, the overall market remains stable, and high-quality farms continue to have strong demand [35] Question: What is the company's strategy regarding asset dispositions in the upcoming quarters? - The company plans to focus on asset sales in the fourth quarter, with a preference for high-quality farms and a gradual reduction of exposure in California [41][43] Question: How would the company approach acquisitions if capital costs were lower? - If capital costs were lower, the company would consider buying farms, as current market conditions present a good opportunity despite the lack of bargains [39] Question: What is the impact of almond pricing stabilization on the company's revenue? - Management acknowledged some positive movement in almond pricing but emphasized that it is too early to incorporate this into projections [54]

Farmland Partners (FPI) came out with quarterly funds from operations (FFO) of $0.01 per share, in line with the Zacks Consensus Estimate. This compares to loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this real estate investment trust specializing in farmland would post FFO of $0.02 per share when it actually produced FFO of $0.06, delivering a surprise of 200%.Over the last four quarters, the company has surpassed consensus FFO e ...

[Q2 2024 Performance Highlights](index=1&type=section&id=Q2%202024%20Performance%20Highlights) [Selected Highlights](index=1&type=section&id=Selected%20Highlights) Farmland Partners Inc. reported a **($2.1) million net loss** in Q2 2024, with **AFFO improving to $0.5 million** Q2 2024 vs Q2 2023 Financial Highlights | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net Income (Loss) | ($2.1) million | $7.9 million | | Net Income (Loss) per Share | ($0.06) | $0.14 | | AFFO | $0.5 million | ($1.1) million | | AFFO per Share | $0.01 | ($0.02) | | Total Operating Expenses | Decreased 7.0% | - | - The decrease in average gross book value of real estate by **10.4%** to **$1.01 billion** is a result of dispositions that occurred in 2023[2](index=2&type=chunk) - Susan Landi was appointed as the company's new Chief Financial Officer (CFO) and Treasurer[2](index=2&type=chunk) [CEO Comments](index=1&type=section&id=CEO%20Comments) CEO Luca Fabbri attributed strong Q2 performance to portfolio improvements and cost savings, planning further asset disposals - The company's strong Q2 performance is credited to portfolio improvements, debt reduction from 2023 activities, and a resilient farm economy[3](index=3&type=chunk) - Future strategy includes further asset disposals to fund additional debt or preferred equity reductions and stock buybacks[3](index=3&type=chunk) - Management is optimistic that lower interest rates, a leaner corporate structure, and continued strong results will reduce the discount of the current stock price to its intrinsic value[3](index=3&type=chunk) [Financial and Operating Results](index=2&type=section&id=Financial%20and%20Operating%20Results) [Summary of Financial and Operating Results](index=2&type=section&id=Summary%20of%20Financial%20and%20Operating%20Results) Q2 2024 saw a **1.2% decrease in revenues** but a **7.8% increase in NOI to $8.8 million**; H1 AFFO grew **690.9%** Financial and Operating Results (in thousands) | Metric | Q2 2024 | Q2 2023 | Change | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | $(2,052) | $7,899 | NM | $(644) | $9,612 | NM | | AFFO | $530 | $(1,131) | NM | $3,314 | $419 | 690.9% | | AFFO per share | $0.01 | $(0.02) | NM | $0.07 | $0.01 | 600.0% | | Adjusted EBITDAre | $6,521 | $5,400 | 20.8% | $15,103 | $12,487 | 20.9% | | Total Operating Revenues | $11,445 | $11,584 | (1.2)% | $23,435 | $24,256 | (3.4)% | | Net Operating Income (NOI) | $8,814 | $8,176 | 7.8% | $18,465 | $17,720 | 4.2% | [Acquisition and Disposition Activity](index=2&type=section&id=Acquisition%20and%20Disposition%20Activity) In H1 2024, the company was a net acquirer, purchasing **three properties for $16.3 million** with no dispositions - Acquired **three properties** for a total of **$16.3 million** during the six months ended June 30, 2024[7](index=7&type=chunk) - There were no dispositions of properties during the first six months of 2024[7](index=7&type=chunk) [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) As of June 30, 2024, total debt increased to **$393.0 million**, with total liquidity at **$163.8 million** Balance Sheet and Liquidity Highlights | Metric | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Debt Outstanding | $393.0 million | $363.1 million | | Total Liquidity | $163.8 million | $206.6 million | | - Cash | $5.7 million | $5.5 million | | - Undrawn Credit Facilities | $158.1 million | $201.1 million | - As of July 19, 2024, the company had **49,370,199 shares** of common stock outstanding on a fully diluted basis[7](index=7&type=chunk) [Dividend Declarations](index=2&type=section&id=Dividend%20Declarations) The Board declared a quarterly cash dividend of **$0.06 per share**, payable October 15, 2024 - A quarterly cash dividend of **$0.06 per share** has been declared[8](index=8&type=chunk) - The dividend is payable on October 15, 2024, to stockholders of record on October 1, 2024[8](index=8&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew slightly to **$1.028 billion** as of June 30, 2024, driven by increased real estate assets Consolidated Balance Sheet Data (in thousands) | Account | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total real estate, net** | **$975,513** | **$961,531** | | Cash and cash equivalents | $5,746 | $5,489 | | **TOTAL ASSETS** | **$1,028,491** | **$1,022,002** | | Mortgage notes and bonds payable, net | $391,059 | $360,859 | | **Total liabilities** | **$406,537** | **$391,192** | | **Total equity** | **$521,469** | **$528,840** | | **TOTAL LIABILITIES AND EQUITY** | **$1,028,491** | **$1,022,002** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2024 total operating revenues were **$11.4 million**, resulting in a **net loss of ($2.1) million** Consolidated Statements of Operations (in thousands) | Account | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | | :--- | :--- | :--- | :--- | :--- | | Total operating revenues | $11,445 | $11,584 | $23,435 | $24,256 | | Total operating expenses | $8,205 | $8,827 | $15,048 | $16,663 | | (Gain) loss on disposition of assets, net | $10 | $(11,060) | $96 | $(12,886) | | Interest expense | $5,249 | $5,844 | $10,285 | $10,768 | | **NET INCOME (LOSS)** | **$(2,052)** | **$7,899** | **$(644)** | **$9,612** | | Basic net income (loss) per share | $(0.06) | $0.14 | $(0.05) | $0.15 | [Reconciliation of Non-GAAP Measures](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) [Reconciliation of FFO and AFFO](index=6&type=section&id=Reconciliation%20of%20FFO%20and%20AFFO) Q2 2024 net loss of **($2.1) million** reconciled to an **AFFO of $0.5 million** Q2 Reconciliation of Net Income to AFFO (in thousands) | Line Item | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net income (loss) | $(2,052) | $7,899 | | (Gain) loss on disposition of assets, net | $10 | $(11,060) | | Depreciation, depletion and amortization | $1,430 | $2,207 | | **FFO** | **$(612)** | **$(954)** | | Severance expense | $1,373 | $— | | Distributions on Preferred units and stock | $(743) | $(683) | | **AFFO** | **$530** | **$(1,131)** | [Reconciliation of EBITDAre and Adjusted EBITDAre](index=6&type=section&id=Reconciliation%20of%20EBITDAre%20and%20Adjusted%20EBITDAre) Q2 2024 Adjusted EBITDAre increased to **$6.5 million**, adjusted for interest, D&A, and severance Reconciliation of Net Income to Adjusted EBITDAre (in thousands) | Line Item | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $(2,052) | $7,899 | $(644) | $9,612 | | Interest expense | $5,249 | $5,844 | $10,285 | $10,768 | | Depreciation, depletion and amortization | $1,430 | $2,207 | $2,911 | $4,001 | | (Gain) loss on disposition of assets, net | $10 | $(11,060) | $96 | $(12,886) | | **EBITDAre** | **$4,636** | **$4,894** | **$12,666** | **$11,508** | | Severance expense | $1,373 | $— | $1,373 | $— | | **Adjusted EBITDAre** | **$6,521** | **$5,400** | **$15,103** | **$12,487** | [Reconciliation of Net Operating Income (NOI)](index=7&type=section&id=Reconciliation%20of%20Net%20Operating%20Income%20%28NOI%29) Q2 2024 NOI increased to **$8.8 million** from **$8.2 million**, driven by reduced operating expenses Reconciliation to NOI (in thousands) | Line Item | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | | :--- | :--- | :--- | :--- | :--- | | Total operating revenues | $11,445 | $11,584 | $23,435 | $24,256 | | Property operating expenses | $(1,870) | $(2,428) | $(3,668) | $(4,610) | | Cost of goods sold | $(761) | $(980) | $(1,302) | $(1,926) | | **NOI** | **$8,814** | **$8,176** | **$18,465** | **$17,720** | [Company Information and Outlook](index=2&type=section&id=Company%20Information%20and%20Outlook) [Company Overview](index=3&type=section&id=Company%20Overview) Farmland Partners Inc. is an internally managed REIT owning **180,100 acres** across **17 U.S. states** - As of June 30, 2024, the company owns and/or manages approximately **180,100 acres** in **17 U.S. states**[12](index=12&type=chunk) - The portfolio includes approximately **26 crop types** and **over 100 tenants**[12](index=12&type=chunk) - The company elected to be taxed as a **REIT** starting with the taxable year ended December 31, 2014[12](index=12&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements subject to risks including geopolitical conflicts, inflation, and interest rates - Forward-looking statements are subject to risks that could cause actual results to differ materially[13](index=13&type=chunk) - Key risk factors include the war in Ukraine, conflict in the Middle East, high inflation, elevated interest rates, extreme weather events, and changes in trade policies[13](index=13&type=chunk) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) A conference call to discuss financial results was scheduled for July 25, 2024, with a replay available - A conference call to discuss financial results was scheduled for July 25, 2024, at 11:00 a.m. (U.S. Eastern Time)[10](index=10&type=chunk) - A replay of the call will be available until August 4, 2024[11](index=11&type=chunk) [Definitions of Non-GAAP Financial Measures](index=8&type=section&id=Definitions%20of%20Non-GAAP%20Financial%20Measures) [FFO (Funds From Operations)](index=8&type=section&id=FFO%20%28Funds%20From%20Operations%29) FFO is a non-GAAP measure per Nareit standards, excluding property sales gains/losses and real estate depreciation - FFO is calculated per **Nareit standards**, defined as net income excluding gains/losses from sales of depreciable property and real estate-related depreciation and amortization[23](index=23&type=chunk) [AFFO (Adjusted Funds From Operations)](index=8&type=section&id=AFFO%20%28Adjusted%20Funds%20From%20Operations%29) AFFO adjusts FFO to represent sustainable operating performance by excluding acquisition costs and severance - AFFO adjusts FFO to exclude items not reflective of sustainable operating performance, such as acquisition costs, stock-based compensation, and severance expense[24](index=24&type=chunk) - Management considers AFFO a useful supplemental metric as it is more indicative of operational performance than FFO[25](index=25&type=chunk) [EBITDAre and Adjusted EBITDAre](index=9&type=section&id=EBITDAre%20and%20Adjusted%20EBITDAre) EBITDAre is calculated per Nareit standards, with Adjusted EBITDAre removing stock-based compensation and acquisition costs - EBITDAre is calculated according to **Nareit standards** The company also reports Adjusted EBITDAre, which adjusts for items like stock-based compensation and acquisition costs[26](index=26&type=chunk)[27](index=27&type=chunk) [Net Operating Income (NOI)](index=9&type=section&id=Net%20Operating%20Income%20%28NOI%29) NOI is total operating revenues less property-level operating expenses and cost of goods sold, reflecting direct asset profitability - NOI is calculated as total operating revenues minus property operating expenses and cost of goods sold[29](index=29&type=chunk) - It provides a performance measure that reflects revenues and expenses directly associated with owning and leasing farmland real estate[29](index=29&type=chunk)

Investing in Real Estate Investment Trusts (REITs) is great if you’re in search of dividends. Moreover, numerous REITs have shed value since the turn of the year, suggesting a buying opportunity has emerged. All sounds good, doesn’t it? Not so fast. I urge investors to reconsider before committing capital to certain REITs to sell, as various risk factors have emerged. A supply and demand imbalance has occurred, leading to a 20% year-over-year (YOY) drop in U.S. commercial real estate transactions. Commercia ...