Farmland Partners(FPI) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Presents the company's unaudited consolidated financial statements and detailed explanatory notes for the reporting periods Item 1. Financial Statements This section presents the unaudited consolidated financial statements of Farmland Partners Inc. for the periods ended June 30, 2025, and December 31, 2024 (for balance sheet) or June 30, 2024 (for income statements and cash flows), along with detailed notes explaining the company's organization, accounting policies, revenue recognition, risk concentrations, real estate activities, loan programs, debt structure, commitments, equity, hedge accounting, and income taxes Consolidated Balance Sheets Presents the company's financial position, including assets, liabilities, and equity, at specific reporting dates ASSETS (in thousands) | ASSETS (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Total real estate, net | $648,571 | $717,843 | | Cash and cash equivalents | $51,073 | $78,441 | | Loans and financing receivables, net | $64,066 | $55,305 | | TOTAL ASSETS | $776,671 | $868,560 | LIABILITIES AND EQUITY (in thousands) | LIABILITIES AND EQUITY (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Mortgage notes and bonds payable, net | $192,747 | $203,683 | | Total liabilities | $202,671 | $272,003 | | Redeemable non-controlling interest in operating partnership, Series A preferred units | $100,485 | $101,970 | | Total equity | $473,515 | $494,587 | | TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS IN OPERATING PARTNERSHIP AND EQUITY | $776,671 | $868,560 | - Total assets decreased by $91.89 million from December 31, 2024, to June 30, 2025, primarily driven by a reduction in net real estate and cash, partially offset by an increase in loans and financing receivables[11] - Total liabilities decreased by $69.33 million, mainly due to a reduction in mortgage notes and bonds payable and dividends payable[11] Consolidated Statements of Operations Details the company's revenues, expenses, and net income or loss over the specified reporting periods OPERATING REVENUES (in thousands) | OPERATING REVENUES (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Rental income | $6,024 | $9,539 | $12,994 | $19,746 | | Crop sales | $1,439 | $935 | $2,286 | $1,595 | | Other revenue | $2,497 | $971 | $4,932 | $2,094 | | Total operating revenues | $9,960 | $11,445 | $20,212 | $23,435 | OPERATING EXPENSES (in thousands) | OPERATING EXPENSES (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Impairment of assets | $16,821 | $0 | $16,821 | $0 | | Total operating expenses | $24,093 | $8,205 | $30,492 | $15,048 | OTHER (INCOME) EXPENSE (in thousands) | OTHER (INCOME) EXPENSE (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | (Gain) loss on disposition of assets, net | $(24,228) | $10 | $(24,991) | $96 | | Interest expense | $2,437 | $5,249 | $5,075 | $10,285 | NET INCOME (LOSS) (in thousands) | NET INCOME (LOSS) (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | NET INCOME (LOSS) | $7,792 | $(2,052) | $9,885 | $(644) | | Net income (loss) available to common stockholders of Farmland Partners Inc. | $6,836 | $(2,769) | $8,108 | $(2,163) | | Basic net income (loss) available to common stockholders (per share) | $0.15 | $(0.06) | $0.18 | $(0.05) | | Diluted net income (loss) available to common stockholders (per share) | $0.14 | $(0.06) | $0.18 | $(0.05) | - Net income for the three months ended June 30, 2025, was $7.79 million, a significant improvement from a net loss of $2.05 million in the prior-year period, primarily driven by a substantial gain on asset dispositions and lower interest expense, despite a decrease in rental income and an impairment charge[14] - For the six months ended June 30, 2025, net income was $9.89 million, compared to a net loss of $0.64 million in the same period last year, influenced by similar factors[14] Consolidated Statements of Comprehensive Income (Loss) Reports net income or loss alongside other comprehensive income or loss for the reporting periods (in thousands) | (in thousands) | For the Three Months Ended June 30, 2025 | For the Three Months Ended June 30, 2024 | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Net income (loss) | $7,792 | $(2,052) | $9,885 | $(644) | | Comprehensive income (loss) | $7,435 | $(2,008) | $9,441 | $(814) | | Comprehensive income (loss) attributable to Farmland Partners Inc. | $7,245 | $(1,958) | $9,197 | $(799) | - Comprehensive income attributable to Farmland Partners Inc. significantly improved to $7.25 million for the three months ended June 30, 2025, from a loss of $1.96 million in the prior year, and to $9.20 million for the six months, from a loss of $0.80 million[17] Consolidated Statements of Changes in Equity Outlines the movements in the company's equity accounts over the specified reporting periods (in thousands) | (in thousands) | Balance at December 31, 2024 | Balance at June 30, 2025 | | :--------------- | :--------------------------- | :----------------------- | | Total Equity | $494,587 | $473,515 | Key Changes (6 Months Ended June 30, 2025) | Key Changes (6 Months Ended June 30, 2025) | Amount (in thousands) | | :--------------------------------------- | :-------------------- | | Net income | $9,641 | | Dividends accrued and paid | $(6,208) | | Common stock repurchased and cancellation of shares | $(24,263) | | Conversion of common units to shares of common stock | $0 (net effect) | - Total equity decreased from $494.59 million at December 31, 2024, to $473.52 million at June 30, 2025, primarily due to common stock repurchases and dividends paid, partially offset by net income[19](index=19&