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 ...

Farmland Partners (FPI) shares rallied 5.4% in the last trading session to close at $11.51. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4.1% loss over the past four weeks.The increased investor optimism in the stock can be attributed to the favorable operating environment.This real estate investment trust specializing in farmland is expected to post quarterly funds from operations (FFO) of $0.02 per share ...

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 ...

Inflation Hedge Overview - Inflation hedges protect against currency devaluation due to rising prices, involving investments in assets expected to maintain or increase value [1] - Inflation affects purchasing power, prompting individuals to seek earnings and investments that outpace inflation [1] Traditional Inflation Hedges - Gold has been a traditional inflation hedge since 1971, gaining popularity during economic downturns [3] - In 2024, inflation remains a concern, with investors turning to big tech stocks alongside gold as a hedge [3][4] - A Bloomberg survey indicated that 46% of respondents favored gold, while nearly a third chose tech giants like Nvidia, Amazon, and Meta as inflation hedges [3][4] Tech Stocks as Inflation Hedges - Nvidia's stock surged over 200% in 2024, exceeding $900 per share, driven by strong earnings from generative AI and H100 GPUs [5] - Tech companies like Nvidia and Apple have outperformed the S&P 500, with Nvidia's stock increasing six times during a previous inflation spike [4][5] Farmland Investment - Farmland has historically been used as an inflation hedge, with U.S. farmland properties held by pension funds and tax-exempt vehicles valued at $16.2 billion in 2023 [6][7] - Farmland correlates strongly with inflation indices and has shown resilience, averaging an 11% annual return from 1992 to 2020 [7] - The scarcity of farmland, with over 11 million acres lost in 20 years, contributes to its value preservation during inflation [7] Chicken Wing Business Opportunity - Rising demand for chicken products is noted as consumers shift from beef to more affordable chicken options, benefiting companies like Tyson Foods and Pilgrim's Pride [8][9] - Retail sales of U.S. chicken products rose by 3% for the year ending April 21, while beef and pork sales declined [8] - Tyson's CEO highlighted strong chicken demand amid rising livestock costs, with ground beef prices surging approximately 12% year-over-year [9]

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 ...

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, 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) 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 ...