Farmland Partners Inc. (NYSE:FPI) Q3 2022 Earnings Conference Call October 25, 2022 1:00 PM ET Company Participants Christine Garrison - General Counsel & Secretary Paul Pittman - Executive Chairman & Chief Executive Officer Luca Fabbri - President James Gilligan - Chief Financial Officer Conference Call Participants Rob Stevenson - Janney Gerry Sweeney - Roth Capital Dave Rodgers - Baird Craig Kucera - B. Riley Securities Operator Ladies and gentlemen, thank you for your patience and thank you for attendin ...

Farmland Partners Inc. (NYSE:FPI) Q2 2022 Results Conference Call July 27, 2022 1:00 PM ET Company Participants Paul Pittman - Executive Chairman & CEO Christine Garrison - General Counsel Luca Fabbri - President James Gilligan - CFO & Treasurer Conference Call Participants Rob Stevenson - Janney Buck Horne - Raymond James Dave Rodgers - Baird Operator Good afternoon. Thank you for attending today's Farmland Partners Incorporated Q2 2022 Earnings Call. My name is Forum, and I will be your moderator for toda ...

Financial Data and Key Metrics Changes - Net income for Q1 2022 was $1.1 million, down from $2.5 million in Q1 2021, with adjusted net income at $2 million compared to $5 million in Q1 2021 [17] - AFFO was positive $2.1 million compared to negative $1.6 million in Q1 2021, with AFFO per weighted average share at positive $0.04 compared to negative $0.05 in Q1 2021 [17] - Total debt as of March 31, 2022, was $465 million, with a further reduction of $16.9 million after the quarter [18] Business Line Data and Key Metrics Changes - The company has renewed around 25% of leases for 2022, with rental increases in the range of 15% to 20% [7] - Fixed payments increased due to additional leases signed and new acquisitions, while variable payments remained unchanged [26] - Direct operations gross profit decreased due to citrus pricing changes, with mandarins and oranges higher but lemons lower [26] Market Data and Key Metrics Changes - The profitability of farmers is strong, driven by increasing food demand and decreasing availability of high-quality farmland, despite higher fertilizer prices [8] - The geopolitical situation, particularly the war in Ukraine, has heightened the perception of the value of producing stable food crops in the U.S. [11] Company Strategy and Development Direction - The company aims to be selective in acquisitions, focusing on long-term value creation rather than a specific volume of transactions [32] - There is a strong emphasis on ESG and sustainability, with a focus on producing affordable food in an environmentally sustainable way [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that the current environment is favorable for rental increases due to high farmer profitability and ongoing grain shortages [39] - The company anticipates continued strong demand for farmland and expects to benefit from the current upward trend in rental prices [39] Other Important Information - The company has seen significant investor interest in farmland as an asset class, driven by macroeconomic factors and the current geopolitical climate [10] - Legal expenses are expected to decline following the resolution of a class action lawsuit, contributing to improved financial performance [9] Q&A Session Summary Question: Inquiry about deal flow and acquisition volumes - Management indicated a pipeline of approximately $300 million, with expectations for tens of millions in deals in the next quarter, but emphasized selectivity in transactions [32][34] Question: Renewal spreads and future rental increases - Management confirmed that rental increases of 15% to 20% are expected to continue through the lease cycle, driven by strong farmer profitability [36][39] Question: Direct operations and occupancy rates - Direct operations are utilized for farms in redevelopment, with a focus on capturing more upside compared to leasing [42][45] Question: Crop insurance proceeds and guidance - Crop insurance proceeds were included in original guidance, and future visibility on crop performance is still being assessed [47][49] Question: Rental increases and organic growth rate - Management confirmed that the organic growth rate for next year could be in the 3% to 4% range based on current lease renewals [50][52] Question: Recovery from legal issues - Management is pursuing recovery related to a previous class action lawsuit, but quantifying potential recovery is challenging at this stage [55][58] Question: Debt paydown strategy - The company is focused on paying down higher-rate debt and freeing up collateral for future financing flexibility [60][61] Question: Future leverage strategy - Management indicated a trend towards slightly less leverage over time while maintaining financial flexibility for growth [63][64]