Financial Data and Key Metrics Changes - Net income for 2025 was $32.2 million, with a quarterly net income of $21.8 million, translating to $0.65 and $0.49 per share, respectively, which is lower than the same periods in 2024 [12] - AFFO for 2025 was $17.9 million, with a quarterly AFFO of $11.4 million, or $0.39 and $0.26 per weighted average share, respectively, which was higher than the same periods in 2024 [12] - Total operating revenues declined by approximately $6 million, primarily due to asset dispositions in 2024 and 2025, partially offset by increased variable rents and interest income [13] Business Line Data and Key Metrics Changes - The company sold its brokerage and asset management subsidiary, MWA, to streamline operations while maintaining a working relationship with the buyer [9] - The increase in AFFO was driven by higher activity under the FPI loan program, lower interest expenses from reduced debt, and overall lower operating expenses [14] Market Data and Key Metrics Changes - The company expects to continue making marginal improvements to its portfolio in 2026, with a focus on California, contingent on fair pricing reflecting intrinsic asset value [11] - The market for California assets is now open again, although pricing remains low, and the company plans to gradually liquidate less desirable properties [30] Company Strategy and Development Direction - The company has simplified its business model and reduced debt, which has allowed for a 50% increase in dividends [5] - The focus is on creating shareholder value through disciplined asset management rather than growth for growth's sake [49] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the agricultural business due to inherent uncertainties until harvest [10] - The forecast for 2026 includes a projected net income range of $8.8 million to $10.9 million and an AFFO range of $14.4 million to $16.4 million [16] Other Important Information - The company has undrawn capacity on lines of credit of approximately $164 million at the end of December 2025, which has since decreased to approximately $111.7 million [14] - The company successfully amended its Farmer Mac facility, increasing its size from $75 million to $89.6 million [15] Q&A Session Summary Question: Guidance on variable rent changes - Management indicated that the decline in variable payments is due to both asset dispositions and a cautious approach to forecasting performance in 2026 [21][22] Question: Year-over-year decline in G&A expenses - A significant portion of the decline in G&A costs is attributed to the sale of Murray Wise, along with other cost reductions [27][28] Question: Disposition strategy and market conditions - Management stated that all portfolio assets are saleable, with a focus on achieving the best prices under current market conditions, particularly in California [29][30] Question: FPI loan program demand - The loan program is experiencing strong demand, with management willing to extend loans as long as collateral remains solid [38] Question: Impact of lease transitions on variable payments - The transition of a lease from fixed to variable was not significant to the P&L [40][43] Question: Anticipated pricing for refinancing term loans - Management expects the refinancing to occur around the 5.3% range, in line with current market conditions [46][48] Question: Capital recycling strategy and share repurchases - Management indicated that share repurchases may decline as stock prices appreciate, with dividend increases driven by cash flow expectations rather than asset sales [53][54]