Farmland Partners(FPI)

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Farmland Partners (FPI) Upgraded to Strong Buy: What Does It Mean for the Stock?
ZACKS· 2024-06-10 17:01
Farmland Partners (FPI) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing ea ...
Brace for a Market Crash With These 3 (Surprising) New Inflation Hedges
investorplace.com· 2024-05-16 20:16
An inflation hedge protects against currency devaluation caused by rising prices. It involves investing in assets expected to maintain or increase value. Hedging can prevent investment losses due to inflation, which reduces the real return. For instance, the real return is negative if a stock yields 5%, but inflation is 6%. Inflation-hedged assets may retain high value despite lower intrinsic worth as investors seek them out.When people talk about their money not stretching as far, they’re referring to infl ...
Farmland Partners(FPI) - 2024 Q1 - Earnings Call Presentation
2024-05-01 21:11
Q1 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 ...
Farmland Partners(FPI) - 2024 Q1 - Quarterly Report
2024-05-01 20:05
PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements reflect a slight asset increase and a decrease in Q1 2024 net income to $1.4 million [Note 1—Organization and Significant Accounting Policies](index=11&type=section&id=Note%201%E2%80%94Organization%20and%20Significant%20Accounting%20Policies) Farmland Partners Inc. (FPI) is an internally managed REIT owning approximately 134,700 acres of North American farmland - FPI is a REIT owning a portfolio of approximately **134,700 acres of farmland** and serves as property manager for an additional **42,700 acres** as of March 31, 2024[28](index=28&type=chunk) - The company's Taxable REIT Subsidiary (TRS) performs direct farming operations on **2,103 acres** in California and provides property management, auction, and brokerage services[29](index=29&type=chunk) - The company manages liquidity through cash balances, available credit lines (**$178.9 million** as of March 31, 2024), and a history of refinancing debt[36](index=36&type=chunk) [Note 2—Revenue Recognition](index=15&type=section&id=Note%202%E2%80%94Revenue%20Recognition) Revenue is primarily from rental income, totaling $10.2 million in Q1 2024, with $120 million in future fixed rent payments Rental Income by Source (in thousands) | Source | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Fixed Farm Rent | $8,624 | $8,794 | | Solar, Wind and Recreation Rent | $653 | $770 | | Tenant Reimbursements | $721 | $1,038 | | Variable Rent | $209 | $124 | | **Total** | **$10,207** | **$10,726** | Future Minimum Fixed Rent Payments (in thousands) | Period | Amount | | :--- | :--- | | 2024 (remaining) | $16,351 | | 2025 | $24,114 | | 2026 | $18,020 | | 2027 | $8,229 | | 2028 | $3,885 | | Thereafter | $49,377 | | **Total** | **$119,976** | - Deferred revenue increased significantly to **$9.9 million** as of March 31, 2024, from **$2.1 million** at year-end 2023[51](index=51&type=chunk) [Note 3—Concentration Risk](index=20&type=section&id=Note%203%E2%80%94Concentration%20Risk) FPI had no single tenant representing 10% or more of Q1 2024 revenue, with the Corn Belt as the largest region - For the three months ended March 31, 2024, the company had no tenant concentration of **10% or greater** of period revenue[60](index=60&type=chunk) Geographic Concentration by Acres and Rental Income (Q1 2024) | Region | % of Total Acres | % of Rental Income | | :--- | :--- | :--- | | Corn Belt | 34.5% | 46.7% | | Delta and South | 19.6% | 10.8% | | High Plains | 16.2% | 6.4% | | Southeast | 21.4% | 21.9% | | West Coast | 8.3% | 14.2% | [Note 4—Related Party Transactions](index=20&type=section&id=Note%204%E2%80%94Related%20Party%20Transactions) The company holds a 9.97% equity interest in the OZ Fund and earned $0.1 million in management fees from it - The company holds a **9.97% interest** in the OZ Fund, with an aggregate equity method investment balance of approximately **$4.1 million** as of March 31, 2024[63](index=63&type=chunk) - FPI earned management fees of **$0.1 million** from the OZ Fund during each of the three-month periods ended March 31, 2024 and 2023[66](index=66&type=chunk) - A lease agreement with American Ag Aviation, owned by the company's Executive Chairman, was terminated in November 2023[62](index=62&type=chunk) [Note 5—Real Estate](index=22&type=section&id=Note%205%E2%80%94Real%20Estate) In Q1 2024, the company acquired three properties for $16.3 million, with no dispositions during the period - In Q1 2024, the company acquired three properties in the Corn Belt for an aggregate consideration of **$16.3 million**[67](index=67&type=chunk) - There were no property dispositions during Q1 2024[68](index=68&type=chunk) - In Q1 2023, the company completed two dispositions for **$7.1 million** in cash, recognizing a gain of **$1.8 million**[68](index=68&type=chunk) [Note 6—Loans and Financing Receivables](index=22&type=section&id=Note%206%E2%80%94Loans%20and%20Financing%20Receivables) Total net loans and financing receivables increased to $31.17 million as of March 31, 2024, with minimal credit loss allowance Loans and Financing Receivables, Net (in thousands) | Category | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Loans under FPI Loan Program | $14,039 | $13,894 | | Financing Receivables | $17,131 | $17,126 | | **Total Net Receivables** | **$31,170** | **$31,020** | - The allowance for credit losses was stable at **$168,000** as of March 31, 2024 and December 31, 2023[74](index=74&type=chunk)[77](index=77&type=chunk) - All payments under loans and financing receivables were current as of March 31, 2024[72](index=72&type=chunk) [Note 7—Mortgage Notes, Lines of Credit and Bonds Payable](index=25&type=section&id=Note%207%E2%80%94Mortgage%20Notes,%20Lines%20of%20Credit%20and%20Bonds%20Payable) Total net mortgage notes and bonds payable increased to $380.9 million, with $178.9 million available on credit lines Total Indebtedness (in thousands) | Component | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total outstanding principal | $382,963 | $363,095 | | Debt issuance costs | $(2,073) | $(2,236) | | **Total mortgage notes and bonds payable, net** | **$380,890** | **$360,859** | - As of March 31, 2024, the company had **$75.0 million** available under its MetLife revolving credit facility and **$85.8 million** available under its Rutledge facility[83](index=83&type=chunk)[87](index=87&type=chunk) - The company was in compliance with all applicable debt covenants as of March 31, 2024[81](index=81&type=chunk)[83](index=83&type=chunk)[85](index=85&type=chunk)[87](index=87&type=chunk) [Note 8—Commitments and Contingencies](index=30&type=section&id=Note%208%E2%80%94Commitments%20and%20Contingencies) The company is engaged in ongoing litigation against Sabrepoint and recognized $1.2 million income from forfeited deposits - The company is pursuing a lawsuit against Sabrepoint for an alleged 'short and distort' scheme, currently under review by the Texas Supreme Court[96](index=96&type=chunk) - As of March 31, 2024, assets with an aggregate net book value of **$5.1 million** were subject to unexercised repurchase options[99](index=99&type=chunk) - During Q1 2024, a repurchase option and lease agreement were terminated, allowing the company to retain approximately **$1.2 million** in income from forfeited deposits[99](index=99&type=chunk) [Note 9—Stockholders' Equity and Non-controlling Interests](index=32&type=section&id=Note%209%E2%80%94Stockholders'%20Equity%20and%20Non-controlling%20Interests) FPI owned 97.5% of its Operating Partnership, declared a $0.06 quarterly dividend, and reported $0.01 EPS for Q1 2024 - The company's share repurchase program had approximately **$83.3 million** of capacity remaining as of March 31, 2024, with no shares repurchased during the quarter[116](index=116&type=chunk) - A quarterly dividend of **$0.06 per common share/OP unit** was declared for Q1 2024, consistent with the prior year[113](index=113&type=chunk) Earnings Per Share (EPS) Calculation - Q1 2024 (in thousands, except per share) | Metric | Amount | | :--- | :--- | | Net income available to common stockholders | $606 | | Weighted-average common shares - basic & diluted | 47,704 | | **Income per share - basic & diluted** | **$0.01** | [Note 10—Hedge Accounting](index=42&type=section&id=Note%2010%E2%80%94Hedge%20Accounting) The company uses an interest rate swap with a $33.2 million notional amount to manage interest rate risk - The company uses an interest rate swap, designated as a cash flow hedge, to manage exposure to interest rate movements on its variable-rate debt[133](index=133&type=chunk) - As of March 31, 2024, the total notional amount of the receive-variable/pay-fixed interest rate swap was **$33.2 million**[139](index=139&type=chunk) - The fair value of the interest rate swap was a derivative asset of **$1.6 million** as of March 31, 2024[140](index=140&type=chunk) [Note 11—Income Taxes](index=46&type=section&id=Note%2011%E2%80%94Income%20Taxes) The TRS reported a Q1 2024 pre-tax loss of $0.97 million, with a full valuation allowance against deferred tax assets - The TRS reported a pre-tax loss of **$972,000** for Q1 2024, compared to an **$84,000** profit in Q1 2023[145](index=145&type=chunk) - A valuation allowance of **$2.14 million** has been recorded against the TRS's net deferred tax assets[147](index=147&type=chunk) Net Operating Loss (NOL) Carryforwards (in thousands) | Type | Amount | Expiration | | :--- | :--- | :--- | | Federal | $8,490 | Does not expire | | State | $6,189 | Various | [Note 12—Subsequent Events](index=47&type=section&id=Note%2012%E2%80%94Subsequent%20Events) Post-quarter-end, a $0.06 per share quarterly cash dividend was declared, and $5.0 million was borrowed on credit lines - On April 29, 2024, the Board of Directors declared a quarterly cash dividend of **$0.06 per share**, payable on July 15, 2024[152](index=152&type=chunk) - Subsequent to March 31, 2024, the company borrowed **$5.0 million** against its lines of credit[153](index=153&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$1,031,074** | **$1,022,002** | | Total real estate, net | $976,767 | $961,531 | | Cash and cash equivalents | $6,228 | $5,489 | | **Total Liabilities** | **$404,656** | **$391,192** | | Mortgage notes and bonds payable, net | $380,890 | $360,859 | | **Total Equity** | **$526,675** | **$528,840** | Consolidated Statement of Operations Highlights (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total operating revenues | $11,990 | $12,672 | | Total operating expenses | $6,843 | $7,835 | | (Gain) loss on disposition of assets, net | $86 | $(1,826) | | (Income) from forfeited deposits | $(1,205) | $— | | **Net Income** | **$1,408** | **$1,714** | | Net income available to common stockholders | $606 | $857 | | **Basic & Diluted EPS** | **$0.01** | **$0.02** | | Dividends declared per common share | $0.06 | $0.06 | Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $11,897 | $15,839 | | Net cash (used in) provided by investing activities | $(14,497) | $5,911 | | Net cash provided by (used in) financing activities | $3,339 | $(17,175) | | **Net increase in cash** | **$739** | **$4,575** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses the company's diversified farmland portfolio, Q1 2024 net income decrease, and strong liquidity [Overview and Background](index=48&type=section&id=Overview%20and%20Background) FPI is a leading institutional owner and manager of high-quality North American farmland, diversified across crop types - As of March 31, 2024, the company owned approximately **134,700 acres** and managed an additional **42,700 acres** of farmland[157](index=157&type=chunk)[166](index=166&type=chunk) - The portfolio is valued at approximately **70% primary crops** (corn, soybeans, etc.) and **30% specialty crops** (almonds, citrus, etc.)[158](index=158&type=chunk) - Business activities include leasing farmland, providing loans to farmers, and offering agricultural services through its TRS[160](index=160&type=chunk)[163](index=163&type=chunk) [Factors That May Influence Future Results of Operations and Farmland Values](index=52&type=section&id=Factors%20That%20May%20Influence%20Future%20Results%20of%20Operations%20and%20Farmland%20Values) Future results are influenced by global food demand, commodity prices, rising interest rates, and appreciating land values - The war in Ukraine has disrupted global food trade, stressing supply and supporting high commodity prices, benefiting U.S. farmers[168](index=168&type=chunk)[169](index=169&type=chunk) - High inflation and rising interest rates have increased the cost of the company's floating rate debt and debt with upcoming rate resets[170](index=170&type=chunk) - Long-term drivers like global population growth and decreasing arable land per capita are expected to support farmland values and rental rates[171](index=171&type=chunk)[172](index=172&type=chunk)[177](index=177&type=chunk) - Farmland values have remained strong, with significant rent increases on leases renegotiated in 2021-2023, though appreciation slowed in early 2024[179](index=179&type=chunk) [Results of Operations](index=61&type=section&id=Results%20of%20Operations) Net income decreased to $1.4 million in Q1 2024, primarily due to a swing in asset disposition gains/losses Comparison of Operating Results (in thousands) | Line Item | Q1 2024 | Q1 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total operating revenues | $11,990 | $12,672 | $(682) | (5.4)% | | Total operating expenses | $6,843 | $7,835 | $(992) | (12.7)% | | (Gain) loss on disposition of assets, net | $86 | $(1,826) | $1,912 | NM | | (Income) from forfeited deposits | $(1,205) | $— | $(1,205) | NM | | **NET INCOME** | **$1,408** | **$1,714** | **$(306)** | **(17.9)%** | - The decrease in net income was primarily driven by the absence of a large gain on asset disposition that occurred in Q1 2023[209](index=209&type=chunk) - A **$1.2 million** income from forfeited deposits, resulting from a terminated repurchase agreement, positively impacted Q1 2024 results[209](index=209&type=chunk) [Liquidity and Capital Resources](index=62&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $178.9 million available on credit lines, despite shifts in cash flow activities - As of March 31, 2024, the company had **$178.9 million** in availability under its lines of credit[213](index=213&type=chunk) Summary of Cash Flows (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash from Operating | $11,897 | $15,839 | | Net cash from Investing | $(14,497) | $5,911 | | Net cash from Financing | $3,339 | $(17,175) | - The company's at-the-market (ATM) offering program expired in April 2024, and it intends to explore additional financing alternatives[214](index=214&type=chunk) [Non-GAAP Financial Measures](index=66&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures like FFO and AFFO improved in Q1 2024, with AFFO rising to $2.8 million from $1.6 million Reconciliation of Net Income to FFO and AFFO (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income | $1,408 | $1,714 | | Adjustments (Depreciation, Gain/Loss on sale) | $1,567 | $(32) | | **FFO** | **$2,975** | **$1,682** | | Other Adjustments (Stock comp, etc.) | $(191) | $(132) | | **AFFO** | **$2,784** | **$1,550** | Reconciliation of Net Income to Adjusted EBITDAre (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income | $1,408 | $1,714 | | Adjustments (Interest, Tax, D&A, etc.) | $6,622 | $4,901 | | **EBITDAre** | **$8,030** | **$6,615** | | Other Adjustments (Stock comp, etc.) | $552 | $473 | | **Adjusted EBITDAre** | **$8,582** | **$7,088** | [Seasonality](index=73&type=section&id=Seasonality) The company's business is highly seasonal, with significant rent payments concentrated in the first and fourth quarters - The business is highly seasonal, with a significant portion of rent payments received in the first and fourth quarters[244](index=244&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=73&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate risk related to SOFR, with a 1.0% change impacting cash flow by $0.7 million - The primary market risk is interest rate risk tied to SOFR[245](index=245&type=chunk) - After accounting for an interest rate swap, the company's floating rate debt exposure is reduced from **26.2% to 17.5%** of total debt[246](index=246&type=chunk) - A **1.0% change in SOFR** is estimated to impact annual cash flow by approximately **$0.7 million**[246](index=246&type=chunk) [Item 4. Controls and Procedures](index=73&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[249](index=249&type=chunk) - There were no changes in the company's internal controls over financial reporting during Q1 2024 that have materially affected, or are reasonably likely to materially affect, the controls[251](index=251&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=75&type=section&id=Item%201.%20Legal%20Proceedings.) This section refers readers to Note 8 of the Consolidated Financial Statements for details on legal proceedings - For information on legal proceedings, the report refers to Note 8 of the Consolidated Financial Statements[252](index=252&type=chunk) [Item 1A. Risk Factors](index=75&type=section&id=Item%201A.%20Risk%20Factors.) There were no material changes to the risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K - There were no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023[253](index=253&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=75&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) No unregistered sales or open market share repurchases occurred in Q1 2024, though shares were acquired for tax withholding - No unregistered sales of equity securities occurred during the quarter[253](index=253&type=chunk) - The company did not repurchase any shares of its common stock under its repurchase program during Q1 2024, with **$83.3 million** of capacity remaining[255](index=255&type=chunk) - A total of **15,000 shares** were acquired to satisfy tax withholding obligations for employees upon the vesting of restricted stock awards[256](index=256&type=chunk) [Item 3. Defaults Upon Senior Securities](index=77&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) The company reported no defaults upon its senior securities during the period - None[257](index=257&type=chunk) [Item 4. Mine Safety Disclosures](index=77&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company's operations - Not applicable[257](index=257&type=chunk) [Item 5. Other Information](index=77&type=section&id=Item%205.%20Other%20Information.) The company reported no adoptions or modifications of Rule 10b5-1 trading plans during the quarter - None[257](index=257&type=chunk) [Item 6. Exhibits](index=77&type=section&id=Item%206.%20Exhibits.) This section provides an index of exhibits, including CEO and CFO certifications and Inline XBRL data files - The report includes CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[261](index=261&type=chunk) - Financial statements and notes were filed with embedded Inline XBRL tags[260](index=260&type=chunk)
Farmland Partners(FPI) - 2024 Q1 - Earnings Call Transcript
2024-05-01 19:11
Farmland Partners, Inc. (NYSE:FPI) Q1 2024 Earnings Conference Call May 1, 2024 11:00 AM ET Company Participants Luca Fabbri - President and Chief Executive Officer Christine Garrison - General Counsel Paul Pittman - Executive Chairman James Gilligan - Chief Financial Officer Conference Call Participants Scott Fortune - ROTH MKM Robert Stevenson - Janney John Massocca - B. Riley Securities Operator Thank you for standing by. My name is Cath, and I will be your conference operator today. At this time, I woul ...
Farmland Partners (FPI) Reports Q1 Earnings: What Key Metrics Have to Say
Zacks Investment Research· 2024-05-01 00:06
Farmland Partners (FPI) reported $11.99 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 5.4%. EPS of $0.06 for the same period compares to $0.02 a year ago.The reported revenue represents a surprise of -1.32% over the Zacks Consensus Estimate of $12.15 million. With the consensus EPS estimate being $0.02, the EPS surprise was +200.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to dete ...
Farmland Partners (FPI) Q1 FFO Top Estimates
Zacks Investment Research· 2024-04-30 22:31
Farmland Partners (FPI) came out with quarterly funds from operations (FFO) of $0.06 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to FFO of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 200%. A quarter ago, it was expected that this real estate investment trust specializing in farmland would post FFO of $0.17 per share when it actually produced FFO of $0.16, delivering a surprise of -5.8 ...
Farmland Partners(FPI) - 2024 Q1 - Quarterly Results
2024-04-30 20:05
Exhibit 99.1 Farmland Partners Inc. Reports First Quarter 2024 Results Increased Fiscal Year 2024 Guidance DENVER, April 30, 2024 (BUSINESS WIRE) -- Farmland Partners Inc. (NYSE: FPI) ("FPI" or the "Company") today reported financial results for the quarter ended March 31, 2024. Selected Highlights During the quarter ended March 31, 2024, the Company: ● recorded net income of $1.4 million, or $0.01 per share available to common stockholders, compared to $1.7 million, or $0.02 per share available to common s ...
What Makes Farmland Partners (FPI) a New Strong Buy Stock
Zacks Investment Research· 2024-04-17 17:01
Farmland Partners (FPI) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The p ...
Farmland Partners: The Store Of Value Thesis
Seeking Alpha· 2024-03-20 07:21
keeperofthezoo/iStock via Getty Images On our last coverage of Farmland Partners Inc. (NYSE:FPI) we weighed the bull and the bear arguments and found both to be wanting. We could not rate it a Sell and we were only ready to buy a bit lower. But for FPI to actually deliver this value, will require a firm commitment to sell the whole company. This can happen right away or even over two years. But that is the only way we can see some significant upside. Exploiting the differences between public and private ...