Farmland Partners(FPI) - 2023 Q4 - Annual Results

Financial Performance - For the year ended December 31, 2023, the company recorded net income of $31.7 million, or$ 0.55 per share, representing a 164.9% increase compared to $12.0 million, or$ 0.16 per share in 2022[2]. - Total operating revenues for the year ended December 31, 2023, were $57.5 million, a decrease of 6.1% from$ 61.2 million in 2022[4]. - Net income for the year ended December 31, 2023, was $31,681,000, compared to$ 11,960,000 in 2022, representing a significant increase of 164%[14]. - The company reported a basic net income available to common stockholders of $0.55 per share for 2023, up from$ 0.16 per share in 2022[14]. - Funds from operations (FFO) for 2023 were $8,887,000, down from$ 16,279,000 in 2022, indicating a decline of approximately 45%[16]. - Net Operating Income (NOI) for 2023 was $44,052,000, down from$ 47,054,000 in 2022, a decline of 6.4%[19]. - Adjusted EBITDAre for the year ended December 31, 2023, was $33.4 million, a decrease of 3.9% from$ 34.8 million in 2022[4]. - Adjusted EBITDAre for 2023 was $33,403,000, compared to$ 34,759,000 in 2022, reflecting a slight decrease of about 4%[17]. Asset and Liability Management - The company decreased total debt from $439.5 million at December 31, 2022, to$ 363.1 million at December 31, 2023, which is a reduction of $76.4 million, representing 38% of net real estate value[2][6]. - Total assets decreased to$ 1,022,002,000 as of December 31, 2023, down from $1,160,149,000 in 2022, reflecting a decline of approximately 12%[12]. - Total liabilities decreased to$ 391,192,000 in 2023, down from $455,935,000 in 2022, a reduction of about 14%[12]. Cash Flow and Liquidity - The company increased liquidity to$ 206.6 million as of December 31, 2023, compared to $176.7 million as of December 31, 2022[2][6]. - The company’s cash and cash equivalents increased to$ 5,489,000 in 2023 from $7,654,000 in 2022, a decrease of approximately 28%[12]. Dividends and Shareholder Returns - The company declared a one-time special dividend of$ 0.21 per share in December 2023, which was paid in January 2024[2][6]. - The company declared dividends of $0.24 per common share in 2023, compared to$ 0.23 per share in 2022[14]. - The company repurchased 6,551,087 shares of its common stock at a weighted average price of $11.00 per share during the year[2][6]. Property Transactions - The company completed dispositions of 74 properties for approximately$ 195.5 million, recognizing a total gain on sale of $36.1 million[2][6]. - The company acquired four properties for a total consideration of$ 22.2 million in 2023[2][6]. Operating Expenses - Interest expense rose significantly to $22,657,000 in 2023, up from$ 16,143,000 in 2022, an increase of 40.5%[19]. - Depreciation, depletion, and amortization expenses increased to $7,499,000 in 2023 from$ 6,960,000 in 2022, a rise of 7.7%[19]. - General and administrative expenses decreased to $11,274,000 in 2023 from$ 12,005,000 in 2022, a reduction of 6.1%[19]. Other Financial Metrics - The average rent increase for renewed fixed cash farm leases was approximately 20%, which represented about 14% of total revenue for 2023[2][3]. - The company recorded a gain on the disposition of assets of $(36,133,000) in 2023, compared to$ (2,641,000) in 2022[14]. - Crop sales decreased to $2,257,000 in 2023, down 57.9% from$ 5,372,000 in 2022[19]. - The company considers FFO, NOI, and AFFO as key supplemental measures of performance, which are not alternatives to net income[20]. - Adjusted EBITDAre is calculated by adjusting EBITDAre for certain items, providing useful supplemental information regarding ongoing operating performance[25].