Farmland Partners, Inc. (NYSE:FPI) Q3 2023 Earnings Conference Call October 26, 2023 11:00 AM ET Company Participants Luca Fabbri - President & CEO Christine Garrison - General Counsel Paul Pittman - Executive Chairman James Gilligan - CFO Conference Call Participants Rob Stevenson - Janney Tousley Hyde - Raymond James John Massocca - B. Riley Operator Hello, and welcome to Farmland Partners, Inc. Q3 2023 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' ...

Table of Contents or UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36405 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock FPI Ne ...

Financial Data and Key Metrics Changes - For Q2 2023, net income was $7.9 million, an increase from $3 million in Q2 2022, representing a $4.9 million increase [19] - Net income per share available to common stockholders rose to $0.14 from $0.04 in the previous year, an increase of $0.10 [20] - AFFO was negative $1.1 million compared to positive $1.1 million in Q2 2022, a decrease of $2.2 million [20] - For the first half of 2023, net income was $9.6 million, up from $4.1 million in the same period of 2022, an increase of $5.5 million [20] - AFFO for the first half was $0.4 million, down from $3.3 million in 2022, a decrease of $2.8 million [20] Business Line Data and Key Metrics Changes - The company sold approximately $52 million in assets in the first half of 2023, with an additional $3 million in early Q3, and has $22 million under contract pending closing [12] - Gains from asset sales were about 33% over net book value for the $52 million closed, and expected gains of about 75% over book value for the $22 million under contract [13] - The company is focusing on reducing volatility in revenue streams by selling farms with water challenges or market volatility concerns [7][8] Market Data and Key Metrics Changes - The overall transaction volume in the marketplace is slowing down due to farmers being cash buyers and high interest rates affecting buying capacity [16][17] - The company noted a decrease in auction and brokerage activity due to a lack of sellers in the market [60] Company Strategy and Development Direction - The company aims to concentrate its portfolio to lessen water risk and volatility of earnings, focusing on high-quality farms [8] - Proceeds from asset sales are primarily used for stock buybacks and debt reduction, with a shift towards debt reduction expected in the near term [9][15] - The company is engaged in broader portfolio optimization, with a focus on acquiring farms that fit its strategy while being less acquisitive than in the past [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the farm economy and the potential for significant appreciation in farmland values [6][11] - Interest rates are expected to eventually decrease, which would positively impact AFFO [11] - The company is cautious about the current economic environment but remains focused on long-term value creation [6][11] Other Important Information - The company has approximately $473.5 million in total debt as of June 30, 2023, with undrawn capacity on lines of credit exceeding $120 million [23] - The company is considering additional distributions to shareholders due to capital gains from asset sales, though specifics are still under discussion [44][45] Q&A Session Summary Question: Expected sales over the remainder of 2023 in specific markets - Management indicated that upcoming auctions are primarily in the High Plains, with potential sales in the West Coast and less in the eastern part of the country [33][35] Question: Impact of revenue volatility on asset sales - Management noted that volatility primarily comes from specialty crops, particularly on the West Coast, and they are looking to reduce exposure in that area [37][38] Question: Guidance on AFFO and capital gains distribution - Management confirmed that the bulk of AFFO is expected in the fourth quarter, and discussions about potential distributions are ongoing [41][44] Question: Update on hedge fund litigation - Management provided an update on ongoing litigation, indicating confidence in their position and minimal financial impact at this time [47][48] Question: Timing of debt repayments and asset sales - Management clarified that proceeds from asset sales will largely be directed towards debt repayment, with a focus on maintaining liquidity [64][66] Question: Buyer demographics for sold assets - Management stated that sales have been to a mix of institutional buyers and local farmers, with a preference to offer farms to current tenants first [68]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements for the periods ended June 30, 2023, including balance sheets, operations, and cash flows [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $1.125 billion while total liabilities increased to $489.7 million as of June 30, 2023 Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$1,125,375** | **$1,160,149** | | Total real estate, net | $1,074,446 | $1,105,916 | | Cash and cash equivalents | $11,228 | $7,654 | | **Total Liabilities** | **$489,676** | **$455,935** | | Mortgage notes and bonds payable, net | $471,042 | $436,875 | | **Total Equity** | **$535,214** | **$594,004** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Net income rose to $7.9 million for Q2 and $9.6 million for H1 2023, driven by significant gains on asset dispositions Statement of Operations Highlights (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Total operating revenues | $11,584 | $12,357 | $24,256 | $26,247 | | Operating income | $2,757 | $3,455 | $7,593 | $7,773 | | (Gain) on disposition of assets | $(11,060) | $(3,335) | $(12,886) | $(3,995) | | Interest expense | $5,844 | $3,743 | $10,768 | $7,570 | | **Net income** | **$7,899** | **$2,993** | **$9,612** | **$4,131** | | Diluted EPS | $0.12 | $0.04 | $0.15 | $0.05 | | Dividends declared per common share | $0.06 | $0.06 | $0.12 | $0.11 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash from operations was $9.4 million, with investing activities providing $39.9 million and financing activities using $45.8 million in H1 2023 Six Months Ended June 30, Cash Flow Summary (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $9,394 | $8,438 | | Net cash provided by (used in) investing activities | $39,949 | $(16,503) | | Net cash (used in) financing activities | $(45,769) | $(2,409) | | **Net increase (decrease) in cash** | **$3,574** | **$(10,474)** | | **Cash at end of period** | **$11,228** | **$19,697** | - Key financing activities in H1 2023 included **$68.0 million in borrowings**, **$34.0 million in debt repayments**, and **$61.7 million in common stock repurchases**, contrasting with H1 2022 which saw no repurchases[21](index=21&type=chunk) [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides details on the company's REIT structure, accounting policies, asset transactions, debt, equity, and ongoing litigation - As of June 30, 2023, the Company owned approximately **159,200 acres of farmland** and managed an additional 31,000 acres, operating as a REIT[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - During H1 2023, the company acquired two properties for **$9.0 million** and disposed of 19 properties for **$51.5 million**, recognizing a **gain of $12.9 million**[98](index=98&type=chunk)[99](index=99&type=chunk) - The company repurchased **5,595,332 shares for $61.7 million** in H1 2023, with **$53.8 million remaining** available under the share repurchase program[154](index=154&type=chunk) - On June 30, 2023, the Court of Appeals **reversed a trial court's dismissal** of the Company's claims against Sabrepoint, remanding the case for further proceedings[131](index=131&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=58&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses operating results, financial condition, liquidity, capital resources, and key performance factors for the periods ended June 30, 2023 [Overview and Factors Influencing Results](index=58&type=section&id=Overview%20and%20Factors%20Influencing%20Results) Outlines the farmland acquisition strategy, portfolio composition, and the impact of commodity prices and interest rates on performance - As of June 30, 2023, the portfolio consists of **~159,200 owned acres**, with 70% by value in primary crops and 30% in specialty crops[196](index=196&type=chunk) - Management anticipates that high demand for U.S. primary crops due to the war in Ukraine will **sustain high profitability for U.S. farmers**[208](index=208&type=chunk) - Rising interest rates have significantly increased debt costs; a **1.0% increase in rates would decrease annual cash flow by approximately $1.5 million**[209](index=209&type=chunk)[233](index=233&type=chunk) Lease Expirations by Annual Fixed Rents (as of June 30, 2023) | Year Ending Dec 31 | Annual Fixed Rents (in thousands) | % of Annual Fixed Rents | | :--- | :--- | :--- | | 2023 (remaining) | $11,452 | 35.1% | | 2024 | $11,052 | 33.8% | | 2025 | $6,645 | 20.3% | | 2026 | $1,670 | 5.1% | | 2027 | $1,700 | 5.2% | | Thereafter | $139 | 0.5% | [Results of Operations](index=71&type=section&id=Results%20of%20Operations) Net income increased for Q2 and H1 2023, primarily due to higher gains on asset sales offsetting lower revenues and higher interest expense Comparison of Three Months Ended June 30 (in thousands) | Metric | 2023 | 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total operating revenues | $11,584 | $12,357 | $(773) | (6.3)% | | (Gain) on disposition of assets | $(11,060) | $(3,335) | $(7,725) | 231.6% | | Interest expense | $5,844 | $3,743 | $2,101 | 56.1% | | Legal and accounting | $281 | $816 | $(535) | (65.6)% | | **Net Income** | **$7,899** | **$2,993** | **$4,906** | **163.9%** | Comparison of Six Months Ended June 30 (in thousands) | Metric | 2023 | 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total operating revenues | $24,256 | $26,247 | $(1,991) | (7.6)% | | (Gain) on disposition of assets | $(12,886) | $(3,995) | $(8,891) | 222.6% | | Interest expense | $10,768 | $7,570 | $3,198 | 42.2% | | Legal and accounting | $526 | $2,072 | $(1,546) | (74.6)% | | **Net Income** | **$9,612** | **$4,131** | **$5,481** | **132.7%** | [Liquidity and Capital Resources](index=74&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by cash, operating cash flows, credit facilities, and asset sales, with significant H1 2023 share repurchases - As of June 30, 2023, the company had **$11.2 million in cash** and **$120.7 million available** under its lines of credit[259](index=259&type=chunk)[266](index=266&type=chunk) - The company's At-the-Market (ATM) Program had **$50.5 million remaining capacity** as of June 30, 2023, with no shares sold in H1 2023[261](index=261&type=chunk) - Cash from investing activities was a **source of $39.9 million in H1 2023**, a significant shift from a use of $16.5 million in H1 2022, driven by higher property dispositions[267](index=267&type=chunk)[269](index=269&type=chunk) - Cash used in financing activities **increased to $45.8 million in H1 2023** from $2.4 million in H1 2022, mainly due to **$61.7 million in common stock repurchases**[267](index=267&type=chunk)[270](index=270&type=chunk) [Non-GAAP Financial Measures](index=79&type=section&id=Non-GAAP%20Financial%20Measures) Defines and reconciles non-GAAP measures, showing lower AFFO and stable Adjusted EBITDAre compared to the prior year Reconciliation of Net Income to FFO and AFFO (in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Net income | $7,899 | $2,993 | $9,612 | $4,131 | | (Gain) on disposition of assets | $(11,060) | $(3,335) | $(12,886) | $(3,995) | | Depreciation, depletion and amortization | $2,207 | $1,660 | $4,001 | $3,411 | | **FFO** | **$(954)** | **$1,318** | **$727** | **$3,547** | | Adjustments (Stock comp, etc.) | $(177) | $(207) | $(308) | $(281) | | **AFFO** | **$(1,131)** | **$1,111** | **$419** | **$3,266** | Reconciliation of Net Income to Adjusted EBITDAre (in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Net income | $7,899 | $2,993 | $9,612 | $4,131 | | Interest, Taxes, D&A, etc. | $(3,005) | $2,164 | $1,896 | $7,082 | | **EBITDAre** | **$4,894** | **$5,157** | **$11,508** | **$11,213** | | Adjustments | $506 | $601 | $979 | $1,305 | | **Adjusted EBITDAre** | **$5,400** | **$5,758** | **$12,487** | **$12,518** | [Quantitative and Qualitative Disclosures About Market Risk](index=85&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is interest rate exposure on $186.5 million of variable-rate debt, partially hedged by an interest rate swap - As of June 30, 2023, **$186.5 million (39.4%)** of the company's debt had variable interest rates[290](index=290&type=chunk) - A **1.0% increase in interest rates** would decrease the company's annual cash flow by approximately **$1.5 million**[290](index=290&type=chunk) - The company uses an interest rate swap with a notional amount of **$33.2 million** to reduce its floating rate exposure[290](index=290&type=chunk) [Controls and Procedures](index=85&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of the end of the period covered by the report[292](index=292&type=chunk) - There were **no changes in the company's internal controls** over financial reporting during H1 2023 that have materially affected, or are reasonably likely to materially affect, the controls[294](index=294&type=chunk) [PART II. OTHER INFORMATION](index=85&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=85&type=section&id=Item%201.%20Legal%20Proceedings) An appeals court reversed a lower court's dismissal of the company's lawsuit against Sabrepoint, allowing the case to proceed - On June 30, 2023, the Court of Appeals for the Fifth District of Texas **reversed a trial court's summary judgment** against the Company in its lawsuit against Sabrepoint, remanding the case for further proceedings[131](index=131&type=chunk)[295](index=295&type=chunk) [Risk Factors](index=87&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported from the risk factors disclosed in the 2022 Annual Report on Form 10-K - As of June 30, 2023, there were **no material changes** from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022[297](index=297&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=87&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Q2 2023 share repurchase activity, totaling 4.1 million shares, and an increased repurchase authorization Issuer Purchases of Equity Securities (Q2 2023) | Period | Total Shares Purchased (thousands) | Average Price Paid per Share | Approx. Value Remaining for Repurchase (thousands) | | :--- | :--- | :--- | :--- | | April 2023 | 1,180 | $10.75 | $13,169 | | May 2023 | 1,120 | $10.94 | $75,901 | | June 2023 | 1,837 | $12.03 | $53,767 | | **Total** | **4,137** | **$11.37** | **$53,767** | - On May 3, 2023, the Board of Directors approved a **$75.0 million increase** to the share repurchase program authorization[299](index=299&type=chunk) [Defaults Upon Senior Securities](index=89&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities - None[303](index=303&type=chunk) [Mine Safety Disclosures](index=89&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - Not applicable[303](index=303&type=chunk) [Other Information](index=89&type=section&id=Item%205.%20Other%20Information) No other material information was reported for the period - None[303](index=303&type=chunk) [Exhibits](index=89&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the report, including Sarbanes-Oxley certifications and Inline XBRL data - Exhibits filed include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and Inline XBRL data files[304](index=304&type=chunk)[305](index=305&type=chunk)

Financial Data and Key Metrics Changes - For Q1 2023, net income was $1.7 million, up from $1.1 million in Q1 2022, representing an increase of $0.6 million. Net income per share available to common stockholders increased to $0.02 from $0.00 in the previous year [11] - Adjusted Funds from Operations (AFFO) decreased to $1.6 million from $2.1 million year-over-year, with AFFO per weighted average share dropping to $0.03 from $0.04 [11] - Operating expenses in Q1 2023 were lower by $1.7 million compared to 2022, primarily due to reduced cost of goods sold and general administrative expenses [11] Business Line Data and Key Metrics Changes - Fixed farm rent decreased by approximately $1 million to $1.3 million due to projected dispositions, while solar revenue increased due to a large project in Illinois [14][15] - Variable payments decreased by $0.5 million due to lower performance in grapes and row crops, primarily from lower yields during the Q4 harvest [14] - Direct operations revenue was down $1.1 million in Q1 2023 due to lower crop insurance payments and crop sales, particularly in citrus [14] Market Data and Key Metrics Changes - The USDA projects 2023 to be the second-best year ever for farmer profitability, with strong pricing for crop insurance indicating high revenue potential for farmers [8] - Farmland prices have seen significant appreciation over the past two years, although transaction volumes are slowing due to a scarcity of quality assets for sale [9] - The overall farm economy remains strong despite macroeconomic turmoil, with lenders actively financing farmland purchases [9] Company Strategy and Development Direction - The company plans to sell farms that do not have strong return profiles and focus on trimming its portfolio to enhance overall asset appreciation [6] - Proceeds from asset sales will be used to pay down debt and repurchase stock, with a commitment to close the gap between perceived and market value [6][10] - The company emphasizes the importance of appreciation in farmland value, which is currently undervalued in the public market [5][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the tough economic environment but highlights the strength of the farmland market, which remains active and liquid [5] - The company is closely monitoring weather impacts, particularly in California, but has not observed widespread damage to its portfolio [8][29] - Management expects a strong rent lease renewal cycle, although increases may not be as high as previous years due to the current lease vintage [32][33] Other Important Information - Total debt as of March 31, 2023, was approximately $443.6 million, with undrawn capacity exceeding $159 million [12] - The company has renegotiated rates for loans representing approximately $109 million, with further rate resets planned [12] Q&A Session Summary Question: Timing for the 11 farms under contract - Management indicated that the bulk of these sales will close in the second quarter, with some extending into the third quarter [16] Question: Focus of the $80 million in dispositions - Most sales will involve row crops outside the Midwest, with potential sales of specialty crops due to long-term water risks [18] Question: Debt repayment priorities with sale proceeds - The company plans to pay down the highest cost debt first, including floating lines and the Farmer Mac line [20] Question: Update on Saberpoint litigation - There are no new developments; the company is currently on appeal [22] Question: Balancing business scaling versus stock buybacks - Management believes the stock is undervalued and sees buying back shares as a priority to create value for investors [24][25] Question: Weather-related impacts on crops - Management is optimistic about the weather conditions, noting that California's recent precipitation is beneficial for agriculture overall [29] Question: Rent growth expectations - Management expects strong rent increases but acknowledges that they may not reach the levels seen in the previous year due to the current lease base [31][33] Question: Auction process for $40 million of assets - The auction will be handled by MWA for Nebraska assets, with some partnerships for Colorado sales [39][40]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36405 FARMLAND PARTNERS INC. (Exact Name of Registrant as Specified in its Charter) Maryland 46-3769850 (Stat ...

Investor Presentation MARCH 2023 Disclaimer 2 Forward-looking Statements This presentation made by Farmland Partners Inc. (the "Company," "FPI," "we," "us," or "our") contains "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" ...

Q4 2022 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 Inc. (FPI) Q4 2022 Earnings Conference Call February 23, 2023 11:00 AM ET Corporate Participants Christine Garrison - General Counsel & Secretary Paul Pittman - Executive Chairman & Chief Executive Officer Luca Fabbri - President James Gilligan - Chief Financial Officer Conference Call Participants Dave Rodgers - Baird Craig Kucera - B. Riley Securities Operator Welcome to the Farmland Partners Inc., Q4 2022 Earnings Call. [Operator Instructions]. Thank you. Now, let me turn the call over ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-36405 FARMLAND PARTNERS INC. (Exact Name of Registrant as Specified in Its Charter) Maryland 46-3769850 (State or O ...