Farmland Partners Inc. (NYSE:FPI) Q4 2021 Results Conference Call February 23, 2022 11:00 AM ET Company Participants Paul Pittman - Chairman & CEO James Gilligan - CFO and Treasurer Luca Fabbri - President Conference Call Participants Rob Stevenson - Janney Dave Rodgers - Baird Buck Horne - Raymond James Craig Kucera - B. Riley Securities Ryan Watson - Medium Investment Advisors Operator Good morning, ladies and gentlemen. Thank you for attending today's Farmland Partners Fourth Quarter 2021 Earnings Confer ...

Financial Data and Key Metrics Changes - The company reported an AFFO of negative $0.02 year-to-date, an improvement from negative $0.03 for the same period last year [18][19] - Total indebtedness decreased by $6 million year-to-date, aligning with the company's intent to gradually reduce leverage [21] - The company has approximately $40 million of liquidity available for acquisitions and other purposes as of the end of the second quarter [21] Business Line Data and Key Metrics Changes - The company completed four acquisitions totaling nearly $30 million and sold 15 properties for $31 million, resulting in a gain of $3.5 million [20] - Lease renewals are expected to see increases in low crop rents ranging from 7% to 10%, with some as high as 20% [9][25] Market Data and Key Metrics Changes - Farmer profitability has significantly increased, returning to levels seen in 2012 and 2013, primarily driven by rising grain prices [8] - The Midwest region is experiencing the strongest rent increases, particularly in Illinois, where increases are running at 10% or better [27] Company Strategy and Development Direction - The company is focused on maintaining a diversified portfolio, targeting a mix of 70% row crops and 30% specialty crops [36] - The company is actively pursuing opportunities in the Southeast and Delta regions, while still growing its portfolio in the Midwest [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position, citing a strong agricultural economy and the potential for continued land value appreciation [10][11] - The company plans to expand its loan program, which has historically met farmers' needs, and aims to grow this business further [13][56] Other Important Information - The company has reopened its loan program after previously suspending it due to litigation concerns, indicating strong demand for such loans [56] - Management discussed ongoing litigation, noting that costs are expected to moderate in the coming quarters [41][42] Q&A Session Summary Question: Can you provide more detail on the leasing spreads and regional performance? - Management indicated that the 7% to 10% increase in rents is based on a conservative estimate, with the Midwest showing the strongest increases [25][26] Question: What does the acquisition pipeline look like? - The company has a pipeline of deals measured in the kind of $50 million plus, indicating a robust acquisition strategy [33] Question: How are drought conditions affecting your markets? - Management noted that row crop regions have experienced adequate rainfall, while specialty crops in California face challenges due to water costs [60][63] Question: What is the company's strategy regarding equity issuance? - Management emphasized the importance of balancing equity issuance with maintaining shareholder value, particularly as stock prices approach NAV [65][66]

Financial Data and Key Metrics Changes - The company recorded total operating revenues of $11.6 million for Q1 2021, slightly down from $11.7 million in Q1 2020, indicating a strong performance despite a reduced portfolio [22] - Total operating income was $3.1 million in Q1 2021 compared to $5.3 million in the same period of 2020, but adjusted for litigation expenses, the performance would have been $5.6 million [22] - The basic net loss to common stockholders was $0.02 per share in Q1 2021, improved from a net loss of $0.09 per share in Q1 2020, and would have been a net income of $0.07 per share without litigation expenses [23] - Adjusted Funds from Operations (AFFO) was negative $0.05 in Q1 2021, compared to negative $0.01 in Q1 2020, but would have been positive $0.03 without legal expenses [23] Business Line Data and Key Metrics Changes - The company initiated an acquisition program, purchasing approximately $2.9 million in assets without incurring debt, indicating a shift towards growth [10] - The company reduced its debt by $20 million and repurchased a small amount of Series B preferred shares, continuing its deleveraging strategy [11] Market Data and Key Metrics Changes - The company anticipates strong rent increases in the coming quarters, with about one-third of the portfolio rolling over this summer and fall, potentially leading to rent increases of 5% to over 15% [11][39] - There is a significant increase in farmer profitability driven by rising commodity prices, particularly in corn and soybeans, which is expected to last for several years [14][17] Company Strategy and Development Direction - The company is transitioning from a focus on asset sales and stock buybacks to a growth-oriented strategy, aiming to increase assets under management and reduce leverage [10][11] - The company is also establishing a substantial off-balance sheet vehicle related to opportunity zones to enhance growth [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term demand for farmland driven by population growth and GDP increases in developing countries, alongside a decline in arable land per person [13] - The company is closely monitoring inflation trends, noting that farmland is a good hedge against inflation, which could benefit investors [20] - Management acknowledged ongoing litigation expenses but remains confident that these will eventually conclude successfully [21] Other Important Information - The net asset value is estimated to be around $14 per share, with expectations of land value appreciation continuing for several years [12] - The company has seen a significant increase in demand for U.S. food products, particularly from China, which is expected to drive commodity prices higher [18] Q&A Session Summary Question: What determined the 14 dispositions? - The majority of the dispositions were assets contributed to the Opportunity Zone Fund, which allows the company to maintain management fees on those assets [26] Question: What are the fees from the asset management business? - The company receives fees based on assets under management from the Opportunity Zone vehicle, which are set to exceed current overhead costs [29] Question: What is the mix of specialty and row crops in the lease rollover? - The lease rollover is more weighted towards row crops this year, with expectations of improved profitability in that segment [44] Question: How do you view the lease roll-ups this summer? - The company expects rent increases of 5% to over 15% for row crops, driven by improved profitability for farmers [39] Question: Are you seeing more competition for bidding on acres? - There is an increase in both prices and volumes in the farmland market, particularly in high-quality land regions like Illinois [56] Question: How are labor shortages affecting profitability? - Labor shortages are a concern, particularly in specialty crops, but the company has not faced significant operational issues [66] Question: How is the drought affecting specialty crops? - The drought's impact is more significant for non-irrigated crops, but the company is positioned well with irrigated land [70]

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 June 30, 2019 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 ...