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Farmland Partners Inc. Reports Third Quarter 2024 Results

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Farmland Partners Inc. (NYSE: FPI) reported third quarter 2024 financial results. Net income was $1.8 million, or $0.02 per share, down from $4.3 million, or $0.07 per share, in the same period in 2023. AFFO increased to $1.4 million, or $0.03 per share, compared to a loss of $0.5 million, or ($0.01) per share, in Q3 2023. Total operating revenues rose 14.6% to $13.3 million. The company reduced total operating expenses by 30.2% and completed $308 million in farm dispositions, repaying $189.4 million in debt. Debt as a percentage of gross book value decreased to 27.1%. FPI increased its 2024 AFFO guidance and projects a special dividend of at least $1.00 per share. CEO Luca Fabbri highlighted the company's strong operating quarter and strategic moves to reduce debt and enhance shareholder value.

Farmland Partners Inc. (NYSE: FPI) ha riportato i risultati finanziari del terzo trimestre del 2024. Il reddito netto è stato di 1,8 milioni di dollari, ovvero 0,02 dollari per azione, in calo rispetto ai 4,3 milioni di dollari, o 0,07 dollari per azione, nello stesso periodo del 2023. L'AFFO è aumentato a 1,4 milioni di dollari, o 0,03 dollari per azione, rispetto a una perdita di 0,5 milioni di dollari, o (-0,01) dollari per azione, nel Q3 2023. I ricavi operativi totali sono aumentati del 14,6%, raggiungendo i 13,3 milioni di dollari. L'azienda ha ridotto le spese operative totali del 30,2% e ha completato dismissioni agricole per 308 milioni di dollari, rimborsando 189,4 milioni di dollari di debito. Il debito come percentuale del valore contabile lordo è sceso al 27,1%. FPI ha aumentato le previsioni di AFFO per il 2024 e prevede un dividendo speciale di almeno 1,00 dollaro per azione. Il CEO Luca Fabbri ha evidenziato il forte trimestre operativo dell'azienda e le mosse strategiche per ridurre il debito e aumentare il valore per gli azionisti.

Farmland Partners Inc. (NYSE: FPI) informó los resultados financieros del tercer trimestre de 2024. La ganancia neta fue de 1,8 millones de dólares, o 0,02 dólares por acción, una disminución respecto a los 4,3 millones de dólares, o 0,07 dólares por acción, en el mismo período de 2023. El AFFO aumentó a 1,4 millones de dólares, o 0,03 dólares por acción, en comparación con una pérdida de 0,5 millones de dólares, o (-0,01) dólares por acción, en el Q3 de 2023. Los ingresos operativos totales crecieron un 14,6% alcanzando los 13,3 millones de dólares. La empresa redujo los gastos operativos totales en un 30,2% y completó desinversiones agrícolas por 308 millones de dólares, reembolsando 189,4 millones de dólares en deuda. La deuda como porcentaje del valor contable bruto disminuyó al 27,1%. FPI aumentó su guía de AFFO para 2024 y proyecta un dividendo especial de al menos 1,00 dólar por acción. El CEO Luca Fabbri destacó el sólido trimestre operativo de la empresa y las medidas estratégicas para reducir la deuda y aumentar el valor para los accionistas.

Farmland Partners Inc. (NYSE: FPI)가 2024년 3분기 재무 결과를 보고했습니다. 순이익은 180만 달러, 주당 0.02달러로, 2023년 같은 기간에 비해 430만 달러, 주당 0.07달러에서 감소했습니다. AFFO는 140만 달러, 주당 0.03달러로 증가했으며, 2023년 3분기에는 50만 달러의 손실, 주당 (-0.01)달러를 기록했습니다. 총 운영 수익은 14.6% 증가하여 1330만 달러에 달했습니다. 회사는 총 운영 비용을 30.2% 줄였고, 3억 8백만 달러의 농지 매각을 완료하며 1억 8940만 달러의 부채를 상환했습니다. 총 장부가치 대비 부채 비율은 27.1%로 감소했습니다. FPI는 2024년 AFFO 전망을 증가시키고 주당 최소 1.00달러의 특별 배당금을 예상하고 있습니다. CEO 루카 파브리(Luca Fabbri)는 회사의 강력한 운영 분기와 부채 감소 및 주주 가치를 높이기 위한 전략적 조치를 강조했습니다.

Farmland Partners Inc. (NYSE: FPI) a publié ses résultats financiers pour le troisième trimestre 2024. Le revenu net s'élevait à 1,8 million de dollars, soit 0,02 dollar par action, en baisse par rapport à 4,3 millions de dollars, ou 0,07 dollar par action, au même trimestre en 2023. L'AFFO a augmenté à 1,4 million de dollars, soit 0,03 dollar par action, contre une perte de 0,5 million de dollars, soit (-0,01) dollar par action, au T3 2023. Les revenus opérationnels totaux ont augmenté de 14,6% pour atteindre 13,3 millions de dollars. L'entreprise a réduit ses dépenses opérationnelles de 30,2% et a réalisé des cessions de terres agricoles pour 308 millions de dollars, remboursant 189,4 millions de dollars de dettes. La dette en pourcentage de la valeur comptable brute a diminué à 27,1%. FPI a relevé ses prévisions d'AFFO pour 2024 et prévoit un dividende exceptionnel d'au moins 1,00 dollar par action. Le PDG Luca Fabbri a souligné le solide trimestre opérationnel de l'entreprise et les mesures stratégiques pour réduire la dette et améliorer la valeur pour les actionnaires.

Farmland Partners Inc. (NYSE: FPI) hat die finanziellen Ergebnisse des dritten Quartals 2024 veröffentlicht. Der Nettogewinn betrug 1,8 Millionen Dollar oder 0,02 Dollar pro Aktie, was einem Rückgang von 4,3 Millionen Dollar oder 0,07 Dollar pro Aktie im gleichen Zeitraum 2023 entspricht. Das AFFO stieg auf 1,4 Millionen Dollar oder 0,03 Dollar pro Aktie, verglichen mit einem Verlust von 0,5 Millionen Dollar oder (-0,01) Dollar pro Aktie im Q3 2023. Die Gesamterlöse aus dem operativen Geschäft stiegen um 14,6% auf 13,3 Millionen Dollar. Das Unternehmen reduzierte die Gesamtkosten um 30,2% und schloss Veräußern von 308 Millionen Dollar ab, wodurch 189,4 Millionen Dollar Schulden zurückgezahlt wurden. Der Schuldenanteil am Bruttobuchwert sank auf 27,1%. FPI erhöhte seine AFFO-Prognose für 2024 und plant eine Sonderdividende von mindestens 1,00 Dollar pro Aktie. CEO Luca Fabbri hob das starke operative Quartal des Unternehmens und strategische Maßnahmen zur Schuldenreduzierung sowie zur Steigerung des Shareholder-Values hervor.

Positive
  • AFFO increased to $1.4 million, or $0.03 per share.
  • Total operating revenues rose by 14.6% to $13.3 million.
  • Reduced total operating expenses by 30.2%.
  • Completed $308 million in farm dispositions.
  • Repaid $189.4 million in debt.
  • Debt as a percentage of gross book value decreased to 27.1%.
  • Increased 2024 AFFO guidance range.
  • Projected special dividend of at least $1.00 per share.
Negative
  • Net income decreased to $1.8 million, or $0.02 per share, down from $4.3 million, or $0.07 per share, in Q3 2023.

Significantly Reduces Debt, Increases 2024 Earnings Guidance, And Projects Special Dividend Of At Least $1.00

DENVER--(BUSINESS WIRE)-- Farmland Partners Inc. (NYSE: FPI) (“FPI” or the “Company”) today reported financial results for the quarter ended September 30, 2024.

Selected Highlights

During the quarter ended September 30, 2024, the Company:

  • recorded net income of $1.8 million, or $0.02 per share available to common stockholders, compared to $4.3 million (which included $10.3 million of gain on disposition of assets, net), or $0.07 per share available to common stockholders for the same period in 2023;
  • recorded AFFO of $1.4 million, or $0.03 per share, compared to ($0.5) million, or ($0.01) per share, for the same period in 2023;
  • increased total operating revenues by $1.7 million, or 14.6%, despite a decrease in average gross book value of real estate from $1.08 billion to $1.01 billion from 2023 to 2024, a decrease of 6.7% as a result of dispositions that occurred during 2023, reflecting the Company’s strategic balancing of maximizing farm revenue while realizing for shareholders the benefit of selling appreciated farmland;
  • reduced total operating expenses by approximately $3.5 million, a 30.2% decrease compared to the same period in 2023.

Subsequent to September 30, 2024, the Company:

  • completed 52 farm dispositions under two transactions for $308.0 million in aggregate consideration;
  • repaid $189.4 million of debt with a weighted average interest rate of 5.77%, eliminating the Company’s exposure to floating rate debt and positioning the Company for approximately $10.9 million of projected annual interest savings going forward;
  • decreased debt as a percentage of gross book value from 38.8% as of September 30, 2024 to 27.1% as of October 28, 2024 and decreased ratio of total debt to EBITDAre from 10.9 to 5.8;
  • issued a loan under the FPI Loan Program to a former tenant and its affiliates for approximately $20.0 million; and
  • increased the bottom and top end of 2024 AFFO guidance range to $0.24 to $0.30 from $0.20 to $0.26.

CEO Comments

Luca Fabbri, President and Chief Executive Officer, commented: “We are pleased to report another strong operating quarter, driven by efficiencies in our core business from the portfolio improvements and cost saving measures that we began in 2023. We have meaningfully increased 2024 earnings guidance at both the top and bottom ends of the ranges based on our improvements in our core business and the completion of $308 million in asset sales and the resulting debt reductions of $189 million and interest savings, the full impact of which will be seen in the coming quarters. These sales, and their related gains of approximately $53 million, have allowed us to, again, demonstrate the strong value embedded in our portfolio, which we believe continues to be meaningfully discounted by the market. With the remaining proceeds, we intend to make further debt reductions, buy back stock, and pursue strategic acquisitions. Additionally, as we did last year, we expect to issue a special dividend to shareholders at year-end, with the amount projected to be between $1.00 and $1.10 per share.”

Financial and Operating Results

  • The table below shows financial and operating results for the three and nine months ended September 30, 2024 and 2023.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

For the three months ended September 30,

 

 

 

 

For the nine months ended September 30,

 

 

 

Financial Results:

 

2024

 

2023

 

 

 

Change

 

2024

 

 

2023

 

 

 

Change

Net Income

 

$

1,838

 

$

4,315

 

 

 

(57.4

)%

 

$

1,194

 

 

$

13,927

 

 

 

(91.4

)%

Net income (loss) available to common stockholders ⁽¹⁾

 

$

0.02

 

$

0.07

 

 

 

(71.4

)%

 

$

(0.02

)

 

$

0.22

 

 

 

NM

 

AFFO (2)

 

$

1,399

 

$

(465

)

 

 

NM

%

 

$

4,713

 

 

$

(46

)

 

 

NM

 

AFFO per weighted average common share

 

$

0.03

 

$

(0.01

)

 

 

NM

%

 

$

0.10

 

 

$

0.00

 

 

 

NM

 

Adjusted EBITDAre (2)

 

$

7,649

 

$

6,317

 

 

 

21.1

%

 

$

22,752

 

 

$

18,804

 

 

 

21.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Results:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Revenues

 

$

13,317

 

$

11,617

 

 

 

14.6

%

 

$

36,752

 

 

$

35,874

 

 

 

2.4

%

Net Operating Income (NOI)

 

$

9,784

 

$

8,815

 

 

 

11.0

%

 

$

28,249

 

 

$

26,536

 

 

 

6.5

%

_________________________

NM = Not Meaningful

(1)

Basic net income per share available to common stockholders. See “Note 9—Stockholders’ Equity and Non-controlling Interests” in the Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2024, when filed, for more information.

(2)

The nine months ended September 30, 2024 includes approximately $1.2 million of income from forfeited deposits due to the termination of a repurchase agreement and excludes approximately $1.4 million of severance expense.

  • See “Non-GAAP Financial Measures” below for complete definitions of AFFO, Adjusted EBITDAre, and NOI and the financial tables accompanying this press release for reconciliations of net income to AFFO, Adjusted EBITDAre and NOI.

Acquisition and Disposition Activity

  • During the nine months ended September 30, 2024, the Company acquired three properties for total consideration of $16.3 million.
  • During the nine months ended September 30, 2024, there were no dispositions of properties.

Balance Sheet

  • The Company had total debt outstanding of approximately $394.0 million at September 30, 2024 compared to total debt outstanding of approximately $363.1 million at December 31, 2023.
  • At September 30, 2024, the Company had access to liquidity of $140.2 million, consisting of $8.1 million in cash and $132.1 million in undrawn availability under its credit facilities compared to cash of $5.5 million and $201.1 million in undrawn availability under its credit facilities at December 31, 2023. Subsequent to September 30, 2024, the Company has repaid debt totaling $189.4 million and increased availability under its credit facilities to $168.9 million.
  • As of October 25, 2024, the Company had 49,375,976 shares of common stock outstanding on a fully diluted basis.

Dividend Declarations

On October 29, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.06 per share of common stock and Class A Common OP unit. The dividends are payable on January 15, 2025 to stockholders and common unit holders of record as of January 2, 2025.

2024 Earnings Guidance and Supplemental Package

For 2024 earnings guidance, please see page 15 of the supplemental package, which can be accessed through the Investor Relations section of the Company's website.

Conference Call Information

The Company has scheduled a conference call on October 31, 2024, at 11:00 a.m. (U.S. Eastern Time) to discuss the financial results and provide a company update.

The call can be accessed live over the phone by dialing 1-800-715-9871 and using the conference ID 4868033. The conference call will also be available via a live listen-only webcast that can be accessed through the Investor Relations section of the Company's website, www.farmlandpartners.com.

A replay of the conference call will be available beginning shortly after the end of the event until November 10, 2024, by dialing 1-800-770-2030 and using the playback ID 4868033. A replay of the webcast will also be accessible on the Investor Relations section of the Company's website for a limited time following the event.

About Farmland Partners Inc.

Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of the date of this release, the Company owned and/or managed approximately 136,000 acres of farmland in 15 states, including Arkansas, California, Colorado, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Ohio, South Carolina, and Texas. In addition, the Company owns land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand. The Company elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ended December 31, 2014. Additional information: www.farmlandpartners.com or (720) 452-3100.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the federal securities laws, including, without limitation, statements with respect to our outlook and the outlook for the farm economy generally, proposed and pending acquisitions and dispositions, financing activities, crop yields and prices and anticipated rental rates. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” or similar expressions or their negatives, as well as statements in future tense. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance, and our actual results could differ materially from those set forth in the forward-looking statements. Some factors that might cause such a difference include the following: market factors and other considerations that could result in the Company deciding not to declare and pay a special dividend or to declare and pay a special dividend that is less than stockholders anticipate; the ongoing war in Ukraine and the ongoing conflict in the Middle East and their impacts on the world agriculture market, world food supply, the farm economy generally, and our tenants’ businesses; changes in trade policies in the United States and other countries that import agricultural products from the United States; high inflation and elevated interest rates; the onset of an economic recession in the United States and other countries that impact the farm economy; extreme weather events, such as droughts, tornadoes, hurricanes or floods; the impact of future public health crises on our business and on the economy and capital markets generally; general volatility of the capital markets and the market price of the Company’s common stock; changes in the Company’s business strategy, availability, terms and deployment of capital; the Company’s ability to refinance existing indebtedness at or prior to maturity on favorable terms, or at all; availability of qualified personnel; changes in the Company’s industry, interest rates or the general economy; adverse developments related to crop yields or crop prices; the degree and nature of the Company’s competition; the outcomes of ongoing litigation; the timing, price or amount of repurchases, if any, under the Company's share repurchase program; the ability to consummate acquisitions or dispositions under contract; and the other factors described in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and the Company’s other filings with the Securities and Exchange Commission. Any forward-looking information presented herein is made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Farmland Partners Inc.

Consolidated Balance Sheets

As of September 30, 2024 (Unaudited) and December 31, 2023

(in thousands)

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

2024

 

 

2023

 

ASSETS

 

 

 

 

 

 

Land, at cost

 

$

886,003

 

 

$

869,848

 

Grain facilities

 

 

12,459

 

 

 

12,222

 

Groundwater

 

 

11,033

 

 

 

11,472

 

Irrigation improvements

 

 

41,751

 

 

 

41,988

 

Drainage improvements

 

 

10,315

 

 

 

10,315

 

Permanent plantings

 

 

42,474

 

 

 

39,620

 

Other

 

 

4,626

 

 

 

4,696

 

Construction in progress

 

 

1,818

 

 

 

4,453

 

Real estate, at cost

 

 

1,010,479

 

 

 

994,614

 

Less accumulated depreciation

 

 

(35,833

)

 

 

(33,083

)

Total real estate, net

 

 

974,646

 

 

 

961,531

 

Deposits

 

 

1

 

 

 

426

 

Cash and cash equivalents

 

 

8,090

 

 

 

5,489

 

Assets held for sale

 

 

24

 

 

 

28

 

Loans and financing receivables, net

 

 

22,239

 

 

 

31,020

 

Right of use asset

 

 

242

 

 

 

399

 

Accounts receivable, net

 

 

9,033

 

 

 

7,743

 

Derivative asset

 

 

807

 

 

 

1,707

 

Inventory

 

 

2,785

 

 

 

2,335

 

Equity method investments

 

 

4,079

 

 

 

4,136

 

Intangible assets, net

 

 

2,019

 

 

 

2,035

 

Goodwill

 

 

2,706

 

 

 

2,706

 

Prepaid and other assets

 

 

452

 

 

 

2,447

 

TOTAL ASSETS

 

$

1,027,123

 

 

$

1,022,002

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Mortgage notes and bonds payable, net

 

$

392,244

 

 

$

360,859

 

Lease liability

 

 

242

 

 

 

399

 

Dividends payable

 

 

2,970

 

 

 

13,286

 

Accrued interest

 

 

5,069

 

 

 

4,747

 

Accrued property taxes

 

 

2,341

 

 

 

1,898

 

Deferred revenue

 

 

130

 

 

 

2,149

 

Accrued expenses

 

 

3,486

 

 

 

7,854

 

Total liabilities

 

 

406,482

 

 

 

391,192

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable non-controlling interest in operating partnership, Series A preferred units

 

 

101,228

 

 

 

101,970

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

Common stock, $0.01 par value, 500,000,000 shares authorized; 48,172,637 shares issued and outstanding at September 30, 2024, and 48,002,716 shares issued and outstanding at December 31, 2023

 

 

465

 

 

 

466

 

Additional paid in capital

 

 

579,044

 

 

 

577,253

 

Retained earnings

 

 

30,348

 

 

 

31,411

 

Cumulative dividends

 

 

(104,615

)

 

 

(95,939

)

Other comprehensive income

 

 

1,463

 

 

 

2,691

 

Non-controlling interests in operating partnership

 

 

12,708

 

 

 

12,958

 

Total equity

 

 

519,413

 

 

 

528,840

 

 

 

 

 

 

 

 

TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS IN OPERATING PARTNERSHIP AND EQUITY

 

$

1,027,123

 

 

$

1,022,002

 

Farmland Partners Inc.

Consolidated Statements of Operations

Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited)

(in thousands except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

OPERATING REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

9,753

 

 

$

10,137

 

 

$

29,499

 

 

$

31,084

 

Crop sales

 

 

2,616

 

 

 

814

 

 

 

4,211

 

 

 

1,689

 

Other revenue

 

 

948

 

 

 

666

 

 

 

3,042

 

 

 

3,101

 

Total operating revenues

 

 

13,317

 

 

 

11,617

 

 

 

36,752

 

 

 

35,874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

1,414

 

 

 

1,904

 

 

 

4,325

 

 

 

5,905

 

Property operating expenses

 

 

1,956

 

 

 

2,099

 

 

 

5,624

 

 

 

6,709

 

Cost of goods sold

 

 

1,577

 

 

 

703

 

 

 

2,879

 

 

 

2,629

 

Acquisition and due diligence costs

 

 

 

 

 

3

 

 

 

27

 

 

 

17

 

General and administrative expenses

 

 

2,634

 

 

 

2,651

 

 

 

8,998

 

 

 

8,161

 

Legal and accounting

 

 

502

 

 

 

398

 

 

 

1,242

 

 

 

924

 

Impairment of assets

 

 

 

 

 

3,840

 

 

 

 

 

 

3,840

 

Other operating expenses

 

 

11

 

 

 

4

 

 

 

47

 

 

 

81

 

Total operating expenses

 

 

8,094

 

 

 

11,602

 

 

 

23,142

 

 

 

28,266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER (INCOME) EXPENSE:

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expense

 

 

(134

)

 

 

(41

)

 

 

(202

)

 

 

23

 

(Income) loss from equity method investment

 

 

(8

)

 

 

(5

)

 

 

(103

)

 

 

17

 

(Gain) on disposition of assets, net

 

 

(1,980

)

 

 

(10,293

)

 

 

(1,884

)

 

 

(23,179

)

(Income) from forfeited deposits

 

 

 

 

 

 

 

 

(1,205

)

 

 

 

Interest expense

 

 

5,496

 

 

 

6,230

 

 

 

15,781

 

 

 

16,998

 

Total other (income) expense

 

 

3,374

 

 

 

(4,109

)

 

 

12,387

 

 

 

(6,141

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income before income tax (benefit) expense

 

 

1,849

 

 

 

4,124

 

 

 

1,223

 

 

 

13,749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) expense

 

 

11

 

 

 

(191

)

 

 

29

 

 

 

(178

)

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

 

1,838

 

 

 

4,315

 

 

 

1,194

 

 

 

13,927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (income) attributable to non-controlling interests in operating partnership

 

 

(45

)

 

 

(105

)

 

 

(29

)

 

 

(331

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to the Company

 

 

1,793

 

 

 

4,210

 

 

 

1,165

 

 

 

13,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend equivalent rights allocated to performance-based unvested restricted shares

 

 

(2

)

 

 

 

 

 

(6

)

 

 

 

Nonforfeitable distributions allocated to time-based unvested restricted shares

 

 

(20

)

 

 

(21

)

 

 

(64

)

 

 

(64

)

Distributions on Series A Preferred Units

 

 

(743

)

 

 

(743

)

 

 

(2,229

)

 

 

(2,228

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) available to common stockholders of Farmland Partners Inc.

 

$

1,028

 

 

$

3,446

 

 

$

(1,134

)

 

$

11,304

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted per common share data:

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) available to common stockholders

 

$

0.02

 

 

$

0.07

 

 

$

(0.02

)

 

$

0.22

 

Diluted net income (loss) available to common stockholders

 

$

0.02

 

 

$

0.07

 

 

$

(0.02

)

 

$

0.22

 

Basic weighted average common shares outstanding

 

 

47,839

 

 

 

48,432

 

 

 

47,780

 

 

 

51,079

 

Diluted weighted average common shares outstanding

 

 

47,839

 

 

 

48,432

 

 

 

47,780

 

 

 

51,079

 

Dividends declared per common share

 

$

0.06

 

 

$

0.06

 

 

$

0.18

 

 

$

0.18

 

 

Note: Due to a presentation change to the consolidated statements of operations, the Company now groups tenant reimbursement into rental income. Please see “Note 2—Revenue Recognition” of the Company’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2024, when filed, for the detailed components of rental income.

Farmland Partners Inc.

Reconciliation of Non-GAAP Measures

Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended September 30,

 

 

For the nine months ended September 30,

(in thousands except per share amounts)

 

 

2024

 

 

2023

 

 

 

2024

 

 

2023

 

Net income

 

 

$

1,838

 

 

$

4,315

 

 

 

$

1,194

 

 

$

13,927

 

(Gain) on disposition of assets, net

 

 

 

(1,980

)

 

 

(10,293

)

 

 

 

(1,884

)

 

 

(23,179

)

Depreciation, depletion and amortization

 

 

 

1,414

 

 

 

1,904

 

 

 

 

4,325

 

 

 

5,905

 

Impairment of assets

 

 

 

 

 

 

3,840

 

 

 

 

 

 

 

3,840

 

FFO (1)

 

 

$

1,272

 

 

$

(234

)

 

 

$

3,635

 

 

$

493

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation and incentive

 

 

 

870

 

 

 

509

 

 

 

 

1,907

 

 

 

1,474

 

Deferred impact of interest rate swap terminations

 

 

 

 

 

 

 

 

 

 

 

 

 

198

 

Real estate related acquisition and due diligence costs

 

 

 

 

 

 

3

 

 

 

 

27

 

 

 

17

 

Distributions on Preferred units and stock

 

 

 

(743

)

 

 

(743

)

 

 

 

(2,229

)

 

 

(2,228

)

Severance expense

 

 

 

 

 

 

 

 

 

 

1,373

 

 

 

 

AFFO (1)

 

 

$

1,399

 

 

$

(465

)

 

 

$

4,713

 

 

$

(46

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AFFO per diluted weighted average share data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AFFO weighted average common shares

 

 

 

49,414

 

 

 

49,997

 

 

 

 

49,365

 

 

 

52,652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) available to common stockholders of Farmland Partners Inc.

 

 

$

0.02

 

 

$

0.07

 

 

 

$

(0.02

)

 

$

0.22

 

Income available to redeemable non-controlling interest and non-controlling interest in operating partnership

 

 

 

0.02

 

 

 

0.01

 

 

 

 

0.06

 

 

 

0.05

 

Depreciation, depletion and amortization

 

 

 

0.03

 

 

 

0.04

 

 

 

 

0.09

 

 

 

0.11

 

Impairment of assets

 

 

 

0.00

 

 

 

0.08

 

 

 

 

0.00

 

 

 

0.07

 

Stock-based compensation and incentive

 

 

 

0.02

 

 

 

0.01

 

 

 

 

0.04

 

 

 

0.03

 

(Gain) on disposition of assets, net

 

 

 

(0.04

)

 

 

(0.21

)

 

 

 

(0.04

)

 

 

(0.44

)

Distributions on Preferred units and stock

 

 

 

(0.02

)

 

 

(0.01

)

 

 

 

(0.06

)

 

 

(0.04

)

Severance expense

 

 

 

0.00

 

 

 

0.00

 

 

 

 

0.03

 

 

 

0.00

 

AFFO per diluted weighted average share (1)

 

 

$

0.03

 

 

$

(0.01

)

 

 

$

0.10

 

 

$

0.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended September 30,

 

 

For the nine months ended September 30,

(in thousands)

 

 

 

2024

 

 

2023

 

 

 

2024

 

 

2023

 

Net income

 

 

 

 

$

1,838

 

 

$

4,315

 

 

 

$

1,194

 

 

$

13,927

 

Interest expense

 

 

 

 

 

5,496

 

 

 

6,230

 

 

 

 

15,781

 

 

 

16,998

 

Income tax (benefit) expense

 

 

 

 

 

11

 

 

 

(191

)

 

 

 

29

 

 

 

(178

)

Depreciation, depletion and amortization

 

 

 

 

 

1,414

 

 

 

1,904

 

 

 

 

4,325

 

 

 

5,905

 

Impairment of assets

 

 

 

 

 

 

 

 

3,840

 

 

 

 

 

 

 

3,840

 

(Gain) on disposition of assets, net

 

 

 

 

 

(1,980

)

 

 

(10,293

)

 

 

 

(1,884

)

 

 

(23,179

)

EBITDAre (1)

 

 

 

 

$

6,779

 

 

$

5,805

 

 

 

$

19,445

 

 

$

17,313

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation and incentive

 

 

 

 

 

870

 

 

 

509

 

 

 

 

1,907

 

 

 

1,474

 

Real estate related acquisition and due diligence costs

 

 

 

 

 

 

 

 

3

 

 

 

 

27

 

 

 

17

 

Severance expense

 

 

 

 

 

 

 

 

 

 

 

 

1,373

 

 

 

 

Adjusted EBITDAre (1)

 

 

 

 

$

7,649

 

 

$

6,317

 

 

 

$

22,752

 

 

$

18,804

 

(1)

The nine months ended September 30, 2024 includes approximately $1.2 million of income from forfeited deposits due to the termination of a repurchase agreement and excludes approximately $1.4 million of severance expense.

Farmland Partners Inc.

Reconciliation of Non-GAAP Measures

Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended September 30,

 

 

For the nine months ended September 30,

($ in thousands)

 

 

2024

 

 

2023

 

 

 

2024

 

 

2023

 

OPERATING REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

 

$

9,753

 

 

$

10,137

 

 

 

$

29,499

 

 

$

31,084

 

Crop sales

 

 

 

2,616

 

 

 

814

 

 

 

 

4,211

 

 

 

1,689

 

Other revenue

 

 

 

948

 

 

 

666

 

 

 

 

3,042

 

 

 

3,101

 

Total operating revenues

 

 

 

13,317

 

 

 

11,617

 

 

 

 

36,752

 

 

 

35,874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

 

 

1,956

 

 

 

2,099

 

 

 

 

5,624

 

 

 

6,709

 

Cost of goods sold

 

 

 

1,577

 

 

 

703

 

 

 

 

2,879

 

 

 

2,629

 

NOI

 

 

 

9,784

 

 

 

8,815

 

 

 

 

28,249

 

 

 

26,536

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

 

1,414

 

 

 

1,904

 

 

 

 

4,325

 

 

 

5,905

 

Acquisition and due diligence costs

 

 

 

 

 

 

3

 

 

 

 

27

 

 

 

17

 

General and administrative expenses

 

 

 

2,634

 

 

 

2,651

 

 

 

 

8,998

 

 

 

8,161

 

Legal and accounting

 

 

 

502

 

 

 

398

 

 

 

 

1,242

 

 

 

924

 

Impairment of assets

 

 

 

 

 

 

3,840

 

 

 

 

 

 

 

3,840

 

Other operating expenses

 

 

 

11

 

 

 

4

 

 

 

 

47

 

 

 

81

 

Other (income) expense

 

 

 

(134

)

 

 

(41

)

 

 

 

(202

)

 

 

23

 

(Income) loss from equity method investment

 

 

 

(8

)

 

 

(5

)

 

 

 

(103

)

 

 

17

 

(Gain) on disposition of assets, net

 

 

 

(1,980

)

 

 

(10,293

)

 

 

 

(1,884

)

 

 

(23,179

)

(Income) from forfeited deposits

 

 

 

 

 

 

 

 

 

 

(1,205

)

 

 

 

Interest expense

 

 

 

5,496

 

 

 

6,230

 

 

 

 

15,781

 

 

 

16,998

 

Income tax (benefit) expense

 

 

 

11

 

 

 

(191

)

 

 

 

29

 

 

 

(178

)

NET INCOME

 

 

$

1,838

 

 

$

4,315

 

 

 

$

1,194

 

 

$

13,927

 

 

Note: Due to a presentation change to the consolidated statements of operations, the Company now groups tenant reimbursement into rental income. Please see “Note 2—Revenue Recognition” of the Company’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2024, when filed, for the detailed components of rental income.

Non-GAAP Financial Measures

The Company considers the following non-GAAP measures as useful to investors as key supplemental measures of its performance: FFO, NOI, AFFO, EBITDAre and Adjusted EBITDAre. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss as a measure of the Company’s operating performance. FFO, NOI, AFFO, EBITDAre and Adjusted EBITDAre, as calculated by the Company, may not be comparable to other companies that do not define such terms exactly as the Company.

FFO

The Company calculates FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts, or Nareit. Nareit defines FFO as net income (loss) (calculated in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, real estate related depreciation, depletion and amortization (excluding amortization of deferred financing costs), impairment write-downs of depreciated property, and adjustments associated with impairment write-downs for unconsolidated partnerships and joint ventures. Management presents FFO as a supplemental performance measure because it believes that FFO is beneficial to investors as a starting point in measuring the Company’s operational performance. Specifically, in excluding real estate related depreciation and amortization and gains and losses from sales of depreciable operating properties, which do not relate to or are not indicative of operating performance, FFO provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. The Company also believes that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare the Company’s operating performance with that of other REITs. However, other equity REITs may not calculate FFO in accordance with the Nareit definition as the Company does, and, accordingly, the Company’s FFO may not be comparable to such other REITs’ FFO.

AFFO

The Company calculates AFFO by adjusting FFO to exclude the income and expenses that the Company believes are not reflective of the sustainability of the Company’s ongoing operating performance, including, but not limited to, real estate related acquisition and due diligence costs, stock-based compensation and incentive, deferred impact of interest rate swap terminations, distributions on the Company’s preferred units and severance expense.

Changes in GAAP accounting and reporting rules that were put in effect after the establishment of Nareit’s definition of FFO in 1999 result in the inclusion of a number of items in FFO that do not correlate with the sustainability of the Company’s operating performance. Therefore, in addition to FFO, the Company presents AFFO and AFFO per share, fully diluted, both of which are non-GAAP measures. Management considers AFFO a useful supplemental performance metric for investors as it is more indicative of the Company’s operational performance than FFO. AFFO is not intended to represent cash flow or liquidity for the period and is only intended to provide an additional measure of the Company’s operating performance. Even AFFO, however, does not properly capture the timing of cash receipts, especially in connection with full-year rent payments under lease agreements entered into in connection with newly acquired farms. Management considers AFFO per share, fully diluted to be a supplemental metric to GAAP earnings per share. AFFO per share, fully diluted provides additional insight into how the Company’s operating performance could be allocated to potential shares outstanding at a specific point in time. Management believes that AFFO is a widely recognized measure of the operations of REITs and presenting AFFO will enable investors to assess the Company’s performance in comparison to other REITs. However, other REITs may use different methodologies for calculating AFFO and AFFO per share, fully diluted and, accordingly, the Company’s AFFO and AFFO per share, fully diluted may not always be comparable to AFFO and AFFO per share amounts calculated by other REITs. AFFO and AFFO per share, fully diluted should not be considered as an alternative to net income (loss) or earnings per share (determined in accordance with GAAP) as an indication of financial performance, or as an alternative to net income (loss) earnings per share (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor are they indicative of funds available to fund the Company’s cash needs, including its ability to make distributions.

EBITDAre and Adjusted EBITDAre

The Company calculates Earnings Before Interest Taxes Depreciation and Amortization for real estate (“EBITDAre”) in accordance with the standards established by Nareit in its September 2017 White Paper. Nareit defines EBITDAre as net income (calculated in accordance with GAAP) excluding interest expense, income tax, depreciation and amortization, gains or losses on disposition of depreciated property (including gains or losses on change of control), impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustments to reflect the entity’s pro rata share of EBITDAre of unconsolidated affiliates. EBITDAre is a key financial measure used to evaluate the Company’s operating performance but should not be construed as an alternative to operating income, cash flows from operating activities or net income, in each case as determined in accordance with GAAP. The Company believes that EBITDAre is a useful performance measure commonly reported and will be widely used by analysts and investors in the Company’s industry. However, while EBITDAre is a performance measure widely used across the Company’s industry, the Company does not believe that it correctly captures the Company’s business operating performance because it includes non-cash expenses and recurring adjustments that are necessary to better understand the Company’s business operating performance. Therefore, in addition to EBITDAre, management uses Adjusted EBITDAre, a non-GAAP measure.

The Company calculates Adjusted EBITDAre by adjusting EBITDAre for certain items such as stock-based compensation and incentive, real estate related acquisition and due diligence costs and severance expense that the Company considers necessary to understand its operating performance. The Company believes that Adjusted EBITDAre provides useful supplemental information to investors regarding the Company’s ongoing operating performance that, when considered with net income and EBITDAre, is beneficial to an investor’s understanding of the Company’s operating performance. However, EBITDAre and Adjusted EBITDAre have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP.

In prior periods, the Company has presented EBITDA and Adjusted EBITDA. In accordance with Nareit’s recommendation, beginning with the Company’s reported results for the three months ended March 31, 2018, the Company is reporting EBITDAre and Adjusted EBITDAre in place of EBITDA and Adjusted EBITDA.

Net Operating Income (NOI)

The Company calculates net operating income (NOI) as total operating revenues (rental income, tenant reimbursements, crop sales and other revenue), less property operating expenses (direct property expenses and real estate taxes), less cost of goods sold. Since net operating income excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other income and losses and extraordinary items, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and leasing farmland real estate, providing a perspective not immediately apparent from net income. However, net operating income should not be viewed as an alternative measure of the Company’s financial performance since it does not reflect general and administrative expenses, interest expense, depreciation and amortization costs, other income and losses.

Susan Landi

ir@farmlandpartners.com

Source: Farmland Partners Inc.

FAQ

What were Farmland Partners' Q3 2024 earnings?

Farmland Partners reported Q3 2024 net income of $1.8 million, or $0.02 per share.

How did Farmland Partners' AFFO change in Q3 2024?

AFFO increased to $1.4 million, or $0.03 per share, from a loss of $0.5 million, or ($0.01) per share, in Q3 2023.

What is Farmland Partners' updated 2024 AFFO guidance?

The updated 2024 AFFO guidance range is $0.24 to $0.30.

How much debt did Farmland Partners repay after Q3 2024?

Farmland Partners repaid $189.4 million in debt.

What special dividend does Farmland Partners project for 2024?

Farmland Partners projects a special dividend of at least $1.00 per share.

Farmland Partners Inc.

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