[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Q1 2025 financial statements show total assets at $810.5 million, net income of $2.1 million driven by asset gains and lower interest expense, and operating cash flow of $6.4 million [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to $810.5 million due to reduced cash, while total liabilities fell to $218.5 million primarily from lower dividends payable, with equity stable at $492.2 million Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$810,465** | **$868,560** | | Cash and cash equivalents | $21,650 | $78,441 | | Total real estate, net | $714,095 | $717,843 | | **Total Liabilities** | **$218,518** | **$272,003** | | Mortgage notes and bonds payable, net | $201,803 | $203,683 | | Dividends payable | $2,890 | $57,253 | | **Total Equity** | **$492,204** | **$494,587** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 net income increased to $2.1 million despite lower revenues, driven by a $0.8 million gain on asset disposition and a $2.4 million reduction in interest expense, resulting in $0.03 EPS Q1 2025 vs. Q1 2024 Operating Results (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total operating revenues | $10,252 | $11,990 | | Rental income | $6,970 | $10,207 | | Total operating expenses | $6,399 | $6,843 | | (Gain) loss on disposition of assets, net | $(763) | $86 | | Interest expense | $2,638 | $5,036 | | **Net Income** | **$2,093** | **$1,408** | | Net income available to common stockholders | $1,272 | $606 | | **Basic and Diluted EPS** | **$0.03** | **$0.01** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw $6.4 million cash from operations, $0.1 million from investing activities, and a $63.3 million use in financing, primarily for dividends, leading to a $56.8 million net cash decrease Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from Operating Activities | $6,370 | $11,897 | | Net cash from Investing Activities | $99 | $(14,497) | | Net cash from Financing Activities | $(63,260) | $3,339 | | **Net (decrease) in cash** | **$(56,791)** | **$739** | | Cash at end of period | $21,650 | $6,228 | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the company's REIT structure, its 92,400-acre farmland portfolio, revenue recognition, $201.8 million debt, ongoing litigation, FPI Loan Program, share repurchases, and hedging strategies - As of March 31, 2025, the Company owned a portfolio of approximately **92,400 acres** of farmland and managed an additional **46,800 acres**[26](index=26&type=chunk) - The company has a single operating segment, and its chief operating decision makers assess performance using Adjusted Funds from Operations (AFFO), a non-GAAP measure[41](index=41&type=chunk)[42](index=42&type=chunk) - The company has **$167.4 million** available under its lines of credit as of March 31, 2025, and manages liquidity through cash balances, credit lines, and potential asset sales[36](index=36&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 net income growth driven by asset gains and lower interest expense, the company's farmland acquisition strategy, key market factors, strong liquidity with $167.4 million credit availability, and non-GAAP measures like AFFO of $2.3 million - The company's primary strategic objective is to be a leading institutional owner and manager of high-quality North American farmland, delivering returns through cash dividends and asset appreciation[152](index=152&type=chunk) - Key factors influencing future results include global food demand, farmland supply constraints, inflation, interest rates, and international trade policies[167](index=167&type=chunk)[168](index=168&type=chunk)[192](index=192&type=chunk) - Net income for Q1 2025 was primarily affected by dispositions, higher crop sales, increased interest income, proceeds from a solar lease, and lower interest expense, offset by lower income from forfeited deposits[197](index=197&type=chunk) Q1 2025 vs Q1 2024 Key Metrics (in thousands) | Metric | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Rental income | $6,970 | $10,207 | $(3,237) | (31.7)% | | Total operating revenues | $10,252 | $11,990 | $(1,738) | (14.5)% | | Interest expense | $2,638 | $5,036 | $(2,398) | (47.6)% | | **Net Income** | **$2,093** | **$1,408** | **$685** | **48.7%** | [Results of Operations](index=59&type=section&id=Results%20of%20Operations) Q1 2025 saw rental income decrease by $3.2 million due to asset sales, offset by a $1.3 million rise in other revenue and a $2.4 million reduction in interest expense, alongside a $0.8 million gain on asset dispositions - Rental income decreased by **$3.2 million (31.7%)** in Q1 2025 compared to Q1 2024, primarily due to dispositions that occurred in 2024[198](index=198&type=chunk) - Other revenue increased by **$1.3 million**, mainly due to higher interest income from a larger average balance on loans under the FPI Loan Program[199](index=199&type=chunk) - Interest expense decreased by **$2.4 million (47.6%)** due to lower outstanding debt and a reduction in exposure to variable interest rates[207](index=207&type=chunk) - A net gain on asset disposition of **$0.8 million** was recorded in Q1 2025, compared to a net loss of **$0.1 million** in Q1 2024[205](index=205&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity with $21.7 million cash and $167.4 million credit availability, with Q1 2025 cash flows showing $6.4 million from operations, $0.1 million from investing, and $63.3 million used in financing, including $55.7 million in dividends - As of March 31, 2025, the company had **$167.4 million** in undrawn availability under its lines of credit[210](index=210&type=chunk) - During Q1 2025, the company repurchased **63,023 shares** of common stock for approximately **$0.7 million**, with **$55.0 million** remaining under the repurchase authorization[213](index=213&type=chunk)[243](index=243&type=chunk) Sources and Uses of Cash (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from Operating Activities | $6,370 | $11,897 | | Net cash from Investing Activities | $99 | $(14,497) | | Net cash from Financing Activities | $(63,260) | $3,339 | [Non-GAAP Financial Measures](index=65&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like FFO and AFFO, reporting Q1 2025 FFO at $2.5 million and AFFO at $2.3 million ($0.05 per share), alongside EBITDAre of $5.2 million Reconciliation of Net Income to FFO and AFFO (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $2,093 | $1,408 | | (Gain) loss on disposition of assets, net | $(763) | $86 | | Depreciation, depletion and amortization | $1,173 | $1,481 | | **FFO** | **$2,503** | **$2,975** | | Stock-based compensation | $519 | $525 | | Distributions on Series A Preferred Units | $(743) | $(743) | | **AFFO** | **$2,284** | **$2,784** | AFFO Per Share | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | AFFO per diluted weighted average share | $0.05 | $0.06 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=71&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, which is managed by an interest rate swap effectively converting its $11.8 million variable-rate debt to a fixed rate - The company's primary market risk is interest rate risk, which it manages through fixed-rate financing and derivative instruments like interest rate swaps[234](index=234&type=chunk) - As of March 31, 2025, the company's **$11.8 million** of variable-rate debt is covered by an interest rate swap, effectively reducing its floating rate exposure to zero[235](index=235&type=chunk) [Item 4. Controls and Procedures](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[237](index=237&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[239](index=239&type=chunk) [PART II. OTHER INFORMATION](index=71&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=71&type=section&id=Item%201.%20Legal%20Proceedings) The company is pursuing ongoing litigation against Sabrepoint regarding an alleged 2018 'short and distort' scheme, with the case recently remanded for further proceedings after a favorable appellate decision - The company is pursuing a lawsuit against Sabrepoint related to an alleged "short and distort" scheme from 2018. On April 25, 2025, the Texas Supreme Court affirmed a lower court's decision that the company's claims are not barred, remanding the case for further proceedings[95](index=95&type=chunk)[240](index=240&type=chunk) [Item 1A. Risk Factors](index=73&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 were reported - No material changes from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 were reported[241](index=241&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased 87,000 shares of common stock at an average price of $11.71, with $55.0 million remaining under the repurchase program and no unregistered sales Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased (thousands) | Average Price Paid per Share | Approx. Value Remaining in Program (thousands) | | :--- | :--- | :--- | :--- | | Jan 2025 | 67 | $11.72 | $55,011 | | Feb 2025 | 8 | $11.90 | $55,011 | | Mar 2025 | 12 | $11.56 | $55,011 | | **Total** | **87** | **$11.71** | **$55,011** | - As of March 31, 2025, the company had **$55.0 million** of capacity remaining under its share repurchase program[243](index=243&type=chunk) [Item 3. Defaults Upon Senior Securities](index=73&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[247](index=247&type=chunk) [Item 4. Mine Safety Disclosures](index=75&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[248](index=248&type=chunk) [Item 5. Other Information](index=75&type=section&id=Item%205.%20Other%20Information) The company reported no adoptions or modifications of Rule 10b5-1 plans during the period - None[249](index=249&type=chunk) [Item 6. Exhibits](index=75&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including CEO and CFO certifications and Inline XBRL data files - The report includes CEO and CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906, as well as Inline XBRL data files for the financial statements[251](index=251&type=chunk)

Financial Data and Key Metrics Changes - For Q1 2025, net income was $2.1 million, or $0.03 per share, an increase compared to the same period in 2024, driven by higher interest income and lower interest expenses [29] - Adjusted Funds from Operations (AFFO) was $2.3 million, or $0.05 per weighted average share, which was lower than the same period in 2024 [29] - Interest expense decreased by $2.4 million due to a reduction in debt of $189.4 million in Q4 2024 [30] Business Line Data and Key Metrics Changes - Fixed farm rent decreased due to property dispositions in 2024, while solar, wind, and recreation revenues increased due to a solar lease arrangement [32] - Management fees and interest income rose due to increased loan issuances under the FPI loan program [32] - Direct operations revenue increased due to higher walnut prices, offset by increased costs for water and maintenance [32] Market Data and Key Metrics Changes - The portfolio's NAV is estimated to be in the mid-$14 range, reflecting a decrease due to dividend payouts [19] - The market for row crop land values remains stable, with no significant frothiness observed [45] - California land values are not recovering, with some capitulation among sellers indicating potential market stabilization [16][18] Company Strategy and Development Direction - The company plans to continue selective capital deployment, focusing on small acquisitions and loan programs [27] - There is an emphasis on stock buybacks due to the perceived undervaluation of the company's shares compared to farmland values [52] - The company aims to maintain liquidity and flexibility in capital deployment strategies [62] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of farmland, particularly in the context of global food demand and population growth [26] - The potential impact of tariffs on the agricultural market was discussed, with management noting that while there may be short-term pressures, long-term fundamentals remain strong [7][11] - The company anticipates modest rent increases in the row crop segment, reflecting a pause in rental growth [9] Other Important Information - The company won part of a legal case in Texas, which may have implications for future operations [13] - A compensation advisory vote did not pass, attributed to ISS recommendations, which management believes were misinformed [21][22] Q&A Session Summary Question: Can you provide details on the amortization of the FPI loan points? - Management indicated that approximately $2.4 million is expected to be recognized as amortization of points income for the year [40] Question: Is the increase in solar, wind, and recreational rent recurring? - Management clarified that while the arrangement with a solar tenant is recurring, it may not be at the same scale as the current year [42] Question: How have cap rates moved year-to-date? - Management noted that cap rates for row crop land values are stable, with no significant changes observed [45] Question: What is the company's stance on stock buybacks versus land purchases? - Management expressed a preference for stock buybacks due to the significant discount of the stock price compared to its perceived value [52] Question: How do tariffs affect core row crop assets versus permanent crops? - Management explained that many specialty crops are consumed domestically, which may provide some benefits amid tariff pressures [56]

Financial Data and Key Metrics Changes - For Q1 2025, net income was $2.1 million, or $0.03 per share, an increase compared to the same period in 2024, driven by higher interest income, proceeds from a solar lease, and lower interest expenses [28] - AFFO was $2.3 million, or $0.05 per weighted average share, which was lower than the same period in 2024 [29] - Interest expense decreased by $2.4 million due to a reduction in debt [29] Business Line Data and Key Metrics Changes - Fixed farm rent decreased due to property dispositions in 2024, while solar, wind, and recreation revenues increased due to a solar lease arrangement [31] - Management fees and interest income rose due to increased loan issuances under the FPI loan program [31] - Direct operations revenue increased due to higher walnut prices, offset by increased costs for water and maintenance [31] Market Data and Key Metrics Changes - The portfolio NAV is estimated to be in the mid-$14 range, reflecting a decrease due to dividend payouts [18] - The market for row crop land is stable, with no significant frothiness observed, and high-quality land remains strong [46][49] Company Strategy and Development Direction - The company plans to continue selective capital deployment, including small acquisitions and loan programs [26] - The focus remains on maintaining high cash flows and AFFO while considering stock buybacks due to perceived undervaluation [55] Management Comments on Operating Environment and Future Outlook - Management expressed concerns about tariffs and stagflation, noting that while tariffs could impact exports, stagflation historically boosts farmland values [6][11] - The company anticipates modest rent increases in the short term but remains optimistic about long-term demand for agricultural land [9][25] Other Important Information - The company won part of a legal case in Texas, which may have implications for future operations [13] - A compensation advisory vote did not pass, attributed to ISS recommendations, which management believes were incorrect [20][21] Q&A Session Summary Question: What is the amortization amount for the FPI loan points in Q1? - The company expects to recognize approximately $2.4 million in amortization of points income for the year [39] Question: Is the increase in solar, wind, and recreational rent recurring? - The arrangement with the tenant is recurring but not at the same scale as the current year [41] Question: How were the April 25 debt maturities repaid? - The company drew about $14 million from its line of credit and used operational funds for the remainder [45] Question: How have cap rates moved year-to-date? - Cap rates for row crop land values are stable, with no significant changes observed [46] Question: Will the Farmer Mac facility be renewed? - The company is likely to keep the facility in place for liquidity purposes [63][64]

Financial Performance - Net income for Q1 2025 was $21 million, or $003 per share available to common stockholders, compared to $14 million, or $001 per share, in Q1 2024[11] - AFFO for Q1 2025 was $23 million, or $005 per share, compared to $28 million, or $006 per share, in Q1 2024[11] - Total operating revenues decreased by 145% from $1199 million in Q1 2024 to $1025 million in Q1 2025[13] - Net Operating Income (NOI) decreased by 160% from $965 million in Q1 2024 to $811 million in Q1 2025[13] - Adjusted EBITDAre decreased by 338% from $858 million in Q1 2024 to $568 million in Q1 2025[13] Investment Activities - The company completed acquisitions of five properties for a total consideration of $65 million[11] - The company completed two farm dispositions for $100 million in aggregate consideration, recognizing a gain on sale of $08 million[11] - $76 million in loans were issued under the FPI Loan Program[11] - The company repurchased 63023 shares of its common stock at a weighted average price of $1174 per share[11] Balance Sheet - Total debt outstanding was approximately $2026 million as of March 31, 2025, compared to $2046 million as of December 31, 2024[18] - The company had access to liquidity of $1891 million as of March 31, 2025, consisting of $217 million in cash and $1674 million in undrawn availability under its credit facilities[18] 2025 Outlook - The company increased the bottom and top end of 2025 AFFO guidance range to $028 to $034 from $025 to $030[11]

Core Viewpoint - Farmland Partners (FPI) reported quarterly funds from operations (FFO) of $0.05 per share, missing the Zacks Consensus Estimate of $0.06 per share, and down from $0.06 per share a year ago [1][2] Financial Performance - The FFO surprise for the quarter was -16.67%, while the previous quarter had an FFO of $0.19 per share, exceeding expectations by 11.76% [2] - The company posted revenues of $10.25 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.14%, but down from $11.99 million a year ago [3] - Over the last four quarters, Farmland Partners has exceeded consensus revenue estimates two times [3] Stock Performance - Farmland Partners shares have declined approximately 13.2% since the beginning of the year, compared to a decline of 4.7% for the S&P 500 [4] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [4] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.03 on revenues of $9.59 million, and for the current fiscal year, it is $0.28 on revenues of $47.18 million [8] - The estimate revisions trend for Farmland Partners is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [7] Industry Context - The REIT and Equity Trust - Other industry is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting that the overall industry outlook may impact stock performance [9]

[First Quarter 2025 Results Overview](index=1&type=section&id=First%20Quarter%202025%20Results%20Overview) [Selected Highlights](index=1&type=section&id=Selected%20Highlights) Q1 2025 saw increased net income and AFFO, driven by strategic portfolio management and share repurchases, leading to raised full-year guidance Q1 2025 Key Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $2.1 million | $1.4 million | | Net Income per Share | $0.03 | $0.01 | | AFFO | $2.3 million | $2.8 million | | AFFO per Share | $0.05 | $0.06 | - Completed acquisitions of five properties for a total of **$6.5 million**[3](index=3&type=chunk) - Completed two farm dispositions for **$10.0 million**, recognizing a gain of **$0.8 million**[3](index=3&type=chunk) - Repurchased **63,023 shares** of common stock at a weighted average price of **$11.74 per share**[3](index=3&type=chunk) - Increased the full-year 2025 AFFO guidance range to **$0.28 - $0.34 per share**, up from **$0.25 - $0.30**[3](index=3&type=chunk) [CEO Comments](index=1&type=section&id=CEO%20Comments) The CEO attributed strong Q1 results and raised 2025 guidance to optimized farm operations, strategic asset disposals, share buybacks, and improved financial income - The company's strategy focuses on optimizing farm operations, disposing of selected assets to reallocate proceeds, and buying back undervalued stock[2](index=2&type=chunk) - Financial performance was aided by increased interest income, a significant reduction in interest expense, and revenues from a solar power production arrangement[2](index=2&type=chunk) [Financial and Operating Performance](index=2&type=section&id=Financial%20and%20Operating%20Performance) [Financial and Operating Results](index=2&type=section&id=Financial%20and%20Operating%20Results) Q1 2025 net income increased by **48.7%** to **$2.1 million** despite a **14.5%** decrease in total operating revenues to **$10.3 million** and an **18.0%** decline in AFFO to **$2.3 million** Financial and Operating Results (Q1 2025 vs Q1 2024) | Metric (in thousands) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Financial Results** | | | | | Net Income | $2,093 | $1,408 | 48.7% | | AFFO | $2,284 | $2,784 | (18.0)% | | Adjusted EBITDAre | $5,682 | $8,582 | (33.8)% | | **Operating Results** | | | | | Total Operating Revenues | $10,252 | $11,990 | (14.5)% | | Net Operating Income (NOI) | $8,108 | $9,651 | (16.0)% | - Q1 2025 results include approximately **$1.0 million** from a solar lease arrangement[6](index=6&type=chunk) - Q1 2024 results included approximately **$1.2 million** of income from forfeited deposits related to a terminated repurchase agreement[6](index=6&type=chunk) [Portfolio Activity and Balance Sheet](index=2&type=section&id=Portfolio%20Activity%20and%20Balance%20Sheet) In Q1 2025, the company strategically acquired **$6.5 million** in properties and disposed of **$10.0 million**, slightly reducing total debt while liquidity decreased due to lower cash balances - Acquired **five properties** for **$6.5 million** and disposed of **two properties** for **$10.0 million** during Q1 2025[10](index=10&type=chunk) - Total debt outstanding was approximately **$202.6 million** at March 31, 2025, compared to **$204.6 million** at December 31, 2024[10](index=10&type=chunk) - Total liquidity was **$189.1 million** at quarter-end, consisting of **$21.7 million** in cash and **$167.4 million** in undrawn credit facilities[10](index=10&type=chunk) [Dividend Declarations](index=2&type=section&id=Dividend%20Declarations) The Board of Directors declared a quarterly cash dividend of **$0.06 per share** of common stock and Class A Common OP unit, payable on July 15, 2025 - A quarterly cash dividend of **$0.06 per share** was declared, payable on July 15, 2025[8](index=8&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to **$810.5 million** from **$868.6 million**, primarily due to reduced cash, while total liabilities also significantly decreased to **$218.5 million** Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total real estate, net | $714,095 | $717,843 | | Cash and cash equivalents | $21,650 | $78,441 | | **Total Assets** | **$810,465** | **$868,560** | | Mortgage notes and bonds payable, net | $201,803 | $203,683 | | **Total Liabilities** | **$218,518** | **$272,003** | | **Total Equity** | **$492,204** | **$494,587** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 total operating revenues decreased to **$10.3 million**, primarily from lower rental income, yet net income increased to **$2.1 million** due to reduced interest expense and a net gain on asset dispositions Statement of Operations Summary (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Rental income | $6,970 | $10,207 | | Total operating revenues | $10,252 | $11,990 | | Total operating expenses | $6,399 | $6,843 | | (Gain) loss on disposition of assets, net | $(763) | $86 | | Interest expense | $2,638 | $5,036 | | **Net Income** | **$2,093** | **$1,408** | | Basic net income per share | $0.03 | $0.01 | [Reconciliation of Non-GAAP Measures](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The company reconciled GAAP net income to non-GAAP measures, showing Q1 2025 FFO at **$2.5 million**, AFFO at **$2.3 million**, Adjusted EBITDAre at **$5.7 million**, and NOI at **$8.1 million**, all lower year-over-year Reconciliation to AFFO (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $2,093 | $1,408 | | (Gain) loss on disposition of assets, net | $(763) | $86 | | Depreciation, depletion and amortization | $1,173 | $1,481 | | **FFO** | **$2,503** | **$2,975** | | Adjustments (Stock comp, etc.) | $(219) | $(191) | | **AFFO** | **$2,284** | **$2,784** | Reconciliation to Adjusted EBITDAre (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $2,093 | $1,408 | | Interest expense | $2,638 | $5,036 | | Depreciation, etc. | $1,173 | $1,481 | | (Gain) loss on disposition | $(763) | $86 | | **EBITDAre** | **$5,158** | **$8,030** | | Adjustments (Stock comp, etc.) | $524 | $552 | | **Adjusted EBITDAre** | **$5,682** | **$8,582** | Reconciliation to NOI (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total operating revenues | $10,252 | $11,990 | | Property operating expenses | $1,480 | $1,798 | | Cost of goods sold | $664 | $541 | | **NOI** | **$8,108** | **$9,651** | [Non-GAAP Financial Measures Definitions](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) [FFO and AFFO](index=9&type=section&id=FFO%20and%20AFFO) FFO and AFFO are key non-GAAP performance measures, with FFO reflecting core operational performance per Nareit standards, and AFFO further adjusting for non-sustainable items like acquisition costs and stock-based compensation - FFO is calculated according to Nareit standards and is used as a starting point to measure operational performance by excluding items like property sales gains and real estate depreciation[21](index=21&type=chunk) - AFFO adjusts FFO to exclude items like acquisition costs and stock-based compensation, aiming to provide a clearer view of the sustainability of ongoing operating performance[22](index=22&type=chunk)[23](index=23&type=chunk) [EBITDAre, Adjusted EBITDAre, and NOI](index=11&type=section&id=EBITDAre%2C%20Adjusted%20EBITDAre%2C%20and%20NOI) EBITDAre and Adjusted EBITDAre are Nareit-defined measures for operating performance, while NOI directly assesses farmland portfolio performance by excluding corporate overhead and financing costs - EBITDAre is calculated per Nareit standards. The company uses Adjusted EBITDAre, which further excludes items like stock-based compensation, to better reflect business operating performance[24](index=24&type=chunk)[25](index=25&type=chunk) - NOI is defined as total operating revenues less property operating expenses and cost of goods sold. It reflects revenues and expenses directly associated with owning and leasing farmland[27](index=27&type=chunk)

Financial Performance - Net income increased 94% from $31.7 million for the year ended December 31, 2023 to $61.5 million for the year ended December 31, 2024[24] - Adjusted Funds from Operation ("AFFO") increased 72.9% from $8.1 million for the year ended December 31, 2023 to $14.1 million for the year ended December 31, 2024[24] - Liquidity increased to $245.8 million as of December 31, 2024, compared to $206.6 million as of December 31, 2023[24] - The company completed dispositions of 54 properties for $312.0 million, recognizing an aggregate gain on sale of $54.1 million[24] - The company completed acquisitions of four properties for a total cash consideration of $17.9 million[24] Debt and Indebtedness - Total indebtedness decreased $158.5 million from $363.1 million at December 31, 2023 to $204.6 million at December 31, 2024[24] - As of December 31, 2024, the company had approximately $204.6 million of outstanding indebtedness, primarily secured by mortgages on its farms[83] - As of December 31, 2024, $78.9 million of the company's outstanding indebtedness was subject to interest rates that reset periodically[88] Property and Portfolio Management - The company owned approximately 93,500 acres of farmland across multiple states as of December 31, 2024[19] - Approximately 60% of the owned portfolio (by value) was used to grow primary crops, while 40% was used for specialty crops as of December 31, 2024[19] - The company managed approximately 48,300 acres of farmland on behalf of third parties as of December 31, 2024[49] - The company focuses on acquiring high-quality farmland with average or better-than-average soil quality and appropriate water availability[42][43] - The company has a diversified portfolio that includes not only farmland but also related real estate assets such as grain storage facilities and processing plants[41] Sustainability and Environmental Impact - The company emphasizes sustainability, aiming to help feed the world with minimal environmental impact, supported by its Board of Directors and senior management[65] - The company is committed to biodiversity, participating in the USDA's Conservation Reserve Program to improve water quality and protect wildlife habitat[70] - The company has leased acres to support 2 solar energy operational projects across 10 farms and 1 wind energy project on 1 farm, generating approximately 207 megawatts of renewable energy[69] Risks and Challenges - The company is susceptible to declines in tenant profitability, which could adversely affect cash flow and distributions to stockholders[80] - The company faces competition from various sources, including individual farmers and institutional investors, for farmland acquisition[71] - Increases in interest rates may adversely impact tenants' borrowing costs, potentially affecting their ability to make rental payments[89] - The company faces challenges due to elevated inflation and supply chain disruptions, which could adversely affect operations and demand for tenants' crops[92] - The company is subject to adverse weather conditions, which could materially affect its results of operations and ability to make distributions to stockholders[114] Corporate Governance and Structure - The company has 24 employees, with 23 being full-time, and none are members of a labor union as of December 31, 2024[75] - The partnership agreement allows the general partner to act in the interests of stockholders, potentially leading to conflicts with limited partners[149] - The company’s charter restricts ownership to a maximum of 9.8% of any class or series of stock, which may delay or prevent change of control transactions[152] - The Board of Directors has the authority to amend the charter to increase the number of authorized shares without stockholder approval[153] Cybersecurity and Legal Risks - Cybersecurity risks have increased, and the company has experienced past cyberattacks, which could negatively impact operations and financial condition[137] - The company has made provisions for potential litigation costs, which could impact earnings and cash flows if claims are resolved unfavorably[134] - The company may incur unrecoverable costs related to ongoing litigation against Sabrepoint, which could materially affect financial condition and results of operations[135] Future Outlook and Distributions - The company intends to continue declaring quarterly distributions, but future distributions will depend on actual results of operations, economic conditions, and other factors[212] - To maintain REIT qualification, the company must distribute at least 90% of its REIT taxable income annually, which may require using cash reserves or incurring debt[215] - The company’s ability to make distributions is influenced by historical and projected results, financial condition, and cash flows, which may lead to market price fluctuations[187]

Financial Data and Key Metrics Changes - For the full year ended December 31, 2024, net income was $61.5 million or $1.19 per share, an increase from the previous year due to asset dispositions, significant debt reductions, and strong lease renewals [21][22] - AFFO was $14.1 million or $0.29 per weighted average share, significantly higher than the same period in 2023, positively impacted by lower property taxes, reduced interest expenses, and increased sales of specialty crops [21][22][30] Business Line Data and Key Metrics Changes - The gain on disposition of assets was higher due to the sale of 54 properties in 2024, resulting in an aggregate gain of $54.1 million compared to 74 properties and $36.1 million in 2023 [22] - Direct operations revenue increased due to higher sales of citrus, avocado, and walnuts, along with lower impairment and cost of sales [26][30] Market Data and Key Metrics Changes - The company noted a plateau in land values in Illinois, with strong prices for quality properties, while expressing concerns about the California market due to water and regulatory challenges [34][40][41] - The company is monitoring the California farmland market, which is currently dislocated, with many properties available but few large investors entering the market [96][99] Company Strategy and Development Direction - The company has focused on asset sales to return cash to shareholders, evidenced by a $1.15 special dividend [11][12] - Future acquisitions will be considered based on valuation, particularly in Illinois and potentially in the Delta region, while being cautious about California [35][38][41] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for rent increases in 2025, driven by rising grain prices and improving farmer profitability [80][90] - The company anticipates AFFO per share guidance for 2025 to be between $0.25 and $0.30, above the current dividend rate of $0.24 [17][31] Other Important Information - The company has no debt subject to interest rate resets during 2025, and it had undrawn capacity on lines of approximately $167 million at the end of the year [24][25] - General and administrative expenses increased due to a one-time severance expense and a special bonus to executive officers [23] Q&A Session Summary Question: Thoughts on pricing environment for net acquisitions in 2025 - Management indicated a strong focus on Illinois, with a plateau in valuations but strong prices for quality properties, while expressing caution about California due to various challenges [34][40] Question: Thoughts on Ohio Deere dealerships and potential expansion - Management sees potential in the dealership business for current yield and long-term appreciation but will proceed cautiously [46][50] Question: Incremental borrowing rate for new debt - The current incremental borrowing rate is around 6% [55] Question: Impact of USDA funding freezes on tenants - Management does not have tenants exposed to funding freezes and remains focused on quality tenants without reliance on government payments [68][72] Question: Renewal lease terms and asking rates for new renewals - The three-year average on renewal rates is up 12.4%, but 2024 saw a slight decline of 0.8% due to property sales [76][78] Question: Farmers' income outlook and its impact on dividends - Management noted that farm income is climbing back up, driven by grain prices and direct payments, which could support rent increases [87][90] Question: Demand for the FPI loan program - There has been an uptick in demand for the loan program, driven by operators feeling squeezed in 2024 [111]

[Farmland Partners Inc. Full Year 2024 Performance Report](index=1&type=section&id=Farmland%20Partners%20Inc.%20Reports%20Full%20Year%202024%20Results) [Report Overview and Business Highlights](index=1&type=section&id=Report%20Overview%20and%20Business%20Highlights) Farmland Partners Inc. achieved strong 2024 results with 94% net income growth and over 80% AFFO per share increase, driven by strategic asset dispositions and debt reduction - CEO Luca Fabbri stated 2024 was a very strong year, successfully executing strategies to reduce general and administrative expenses, improve operational efficiency, and selectively dispose of assets, enabling debt reduction and share repurchases at a significant discount during high interest rate periods[2](index=2&type=chunk) 2024 Key Performance Highlights | 2024 Key Performance Highlights | Amount/Description | | :--- | :--- | | Net Income | $61.5 million (or $1.19 per share) | | AFFO | $14.1 million (or $0.29 per share) | | Asset Dispositions | Completed 54 farm dispositions totaling $312.0 million, realizing gains of $54.1 million | | Share Repurchases | Repurchased 2,240,295 shares at a weighted average price of $12.25 per share | | Debt Reduction | Total debt reduced by $158.5 million, estimated annual interest savings of $10.9 million | | Leverage Ratio | Debt as a percentage of total book value decreased from 36.3% to 27.2% | | Special Dividend | Declared a special dividend of $1.15 per share | - Subsequent to December 31, 2024, the company continued its strategy, completing a $4.1 million farm disposition, repaying $2.0 million in loan principal, and issuing $3.1 million in new loans under the FPI Loan Program[3](index=3&type=chunk) [Financial and Operating Performance](index=3&type=section&id=Financial%20and%20Operating%20Performance) The company's 2024 financial performance showed significant year-over-year growth in net income and AFFO, alongside a substantial reduction in total debt Financial and Operating Performance (As of December 31) | Financial and Operating Performance (As of December 31) | 2024 ($ in thousands) | 2023 ($ in thousands) | Change | | :--- | :--- | :--- | :--- | | **Financial Performance** | | | | | Net Income | $61,450 | $31,681 | 94.0% | | Net Income Per Share | $1.19 | $0.55 | 116.4% | | AFFO | $14,074 | $8,140 | 72.9% | | AFFO Per Share | $0.29 | $0.16 | 81.3% | | **Operating Performance** | | | | | Total Operating Revenue | $58,226 | $57,466 | 1.3% | | Net Operating Income (NOI) | $46,921 | $44,052 | 6.5% | - In 2024, the company acquired four properties for **$17.9 million** and completed 54 property dispositions for **$312 million**, realizing **$54.1 million** in sales gains[11](index=11&type=chunk) - As of December 31, 2024, total debt decreased from **$363.1 million** in the prior year to **$204.6 million**, while available liquidity increased from **$206.6 million** to **$245.8 million**[11](index=11&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents detailed consolidated financial statements for 2024 and 2023, reflecting the company's financial position and operational outcomes [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) The 2024 balance sheet reflects strategic asset dispositions, showing reduced total assets and a significant decrease in total liabilities Consolidated Balance Sheet Items | Balance Sheet Items ($ in thousands) | December 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Net Real Estate | $717,843 | $961,531 | | **Total Assets** | **$868,560** | **$1,022,002** | | Mortgage Notes and Bonds Payable, Net | $203,683 | $360,859 | | **Total Liabilities** | **$272,003** | **$391,192** | | **Total Equity** | **$494,587** | **$528,840** | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For 2024, the company reported a 94% increase in net income to $61.5 million, driven by asset disposition gains and reduced operating expenses Consolidated Statements of Operations Items | Operations Statement Items ($ in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Total Operating Revenue | $58,226 | $57,466 | | Total Operating Expenses | $33,539 | $39,467 | | Net Gain on Asset Dispositions | $54,148 | $36,133 | | **Net Income** | **$61,450** | **$31,681** | | Basic Net Income Attributable to Common Stockholders Per Share | $1.19 | $0.55 | [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section details the reconciliation of GAAP net income to key non-GAAP performance metrics, including FFO, AFFO, EBITDAre, and NOI [Reconciliation of Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Reconciliation tables illustrate adjustments from net income to non-GAAP metrics, showing significant increases in FFO, AFFO, Adjusted EBITDAre, and NOI for 2024 Net Income to FFO and AFFO Reconciliation | Net Income to FFO and AFFO Reconciliation ($ in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net Income | $61,450 | $31,681 | | Less: Net Gain on Asset Dispositions | ($54,148) | ($36,133) | | Plus: Depreciation, Depletion, and Amortization | $5,588 | $7,499 | | Plus: Impairment of Assets | $790 | $5,840 | | **FFO** | **$13,680** | **$8,887** | | Adjustments... | ... | ... | | **AFFO** | **$14,074** | **$8,140** | Net Income to EBITDAre and Adjusted EBITDAre Reconciliation | Net Income to EBITDAre and Adjusted EBITDAre Reconciliation ($ in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net Income | $61,450 | $31,681 | | Adjustments... | ... | ... | | **EBITDAre** | **$32,518** | **$31,378** | | Adjustments... | ... | ... | | **Adjusted EBITDAre** | **$35,882** | **$33,403** | Operating Revenue to NOI Reconciliation | Operating Revenue to NOI Reconciliation ($ in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Total Operating Revenue | $58,226 | $57,466 | | Less: Property Operating Expenses | $7,368 | $8,660 | | Less: Cost of Sales | $3,937 | $4,754 | | **NOI** | **$46,921** | **$44,052** | [Definitions of Non-GAAP Measures](index=10&type=section&id=Definitions%20of%20Non-GAAP%20Measures) The company defines its key non-GAAP metrics, including FFO, AFFO, EBITDAre, and NOI, explaining their calculation and utility for investors - **FFO (Funds From Operations)**: Calculated according to Nareit standards, excluding depreciation, amortization, and gains/losses on asset dispositions from net income to measure core operating performance[29](index=29&type=chunk) - **AFFO (Adjusted Funds From Operations)**: Further adjusted from FFO to exclude non-recurring items like share-based compensation and acquisition costs, considered by management a more useful measure of ongoing operational performance[30](index=30&type=chunk)[31](index=31&type=chunk) - **EBITDAre (Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate)**: Calculated per Nareit standards, with the company further adjusting to Adjusted EBITDAre by excluding items such as share-based compensation and acquisition costs to better reflect operating results[33](index=33&type=chunk)[34](index=34&type=chunk) - **NOI (Net Operating Income)**: Calculated as total operating revenue less property operating expenses and cost of sales, reflecting income and expenses directly related to owning and leasing farmland real estate[36](index=36&type=chunk) [Other Information](index=3&type=section&id=Other%20Information) This section provides additional company updates, including quarterly dividend announcements, 2025 guidance access, and investor call details - The company's Board of Directors declared a quarterly cash dividend of **$0.06 per share** on February 18, 2025, payable on April 15, 2025[9](index=9&type=chunk) - For 2025 earnings guidance, refer to page 15 of the supplemental materials in the investor relations section of the company's website[10](index=10&type=chunk) - A conference call is scheduled for February 20, 2025, at **11:00 AM ET** to discuss financial results and provide a company update[12](index=12&type=chunk) - As of December 31, 2024, the company is an internally managed real estate company owning and/or managing approximately **141,800 acres** of farmland across 16 states[14](index=14&type=chunk)

Samuel Smith has a diverse background that includes being lead analyst and Vice President at several highly regarded dividend stock research firms and running his own dividend investing YouTube channel. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering from Texas A&M with a focus on applied mathematics and machine learning.Samuel leads the High Yield Inve ...