Farmland Partners Inc. Shares Impact from Hurricanes Ida and Nicholas (No Significant Damage) and Strong Positive Lease Renewal Trends

Rhea-AI Summary

Farmland Partners Inc. (NYSE: FPI) reported no significant damage to its farms from Hurricanes Ida and Nicholas, despite severe weather in the Delta region. The company shared updates on lease renewals, indicating that approximately 40,100 acres (27% of its owned portfolio) are up for renewal in 2021, with 23,250 acres (59% of renewals) completed. The renewal trends show a weighted average increase of 10-11%. These renewals are set to begin contributing to revenue more significantly in 2022 and beyond. The next earnings call will provide further updates.

Positive

• No significant damage to farms from Hurricanes Ida and Nicholas.
• Approximately 27% of the total owned portfolio up for lease renewal in 2021.
• Completion of 59% of 2021 lease renewals.
• Lease renewal rates show a weighted average increase of 10-11%.

Negative

• None.

DENVER, Sept. 20, 2021 /PRNewswire/ -- Farmland Partners Inc. (NYSE: FPI) (the "Company") has received numerous inquiries regarding impacts from recent hurricanes and the lease renewal cycle and would like the share the following information.

Hurricanes Ida and Nicholas

In the past few weeks, the Delta region, and Louisiana in particular, has been hit by Hurricanes Ida and Nicholas.  While there was substantial rain on the Company's farms in the region, none of the Company's farms suffered significant damage from the storms.  Many farmers, other business owners, and residents were not so fortunate, and we wish them a speedy recovery.

Lease Renewals

• Total portfolio: Approximately 158,000 acres owned and approximately 8,300 acres managed.
• 2021 Renewals: Approximately 40,100 acres, or approximately 27% of total owned portfolio¹
• 2021 Renewals Completed: Approximately 23,250 acres, or 59% of renewals¹
• Renewal Trends: Weighted average increase of approximately 10% to 11%

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1 Excludes farms that are expected to be under direct operations in 2022, as well as farms under contract for potential sale and purchase.

The Company's lease renewals signed in 2021 generally commence in Q4 and, accordingly, contribute to revenue to a greater extent in 2022 and beyond than in 2021.

The Company intends to provide an update on these and other developments during its next quarterly earnings call.

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 owns and/or manages approximately 166,000 acres in 16 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota and Virginia. We have approximately 26 crop types and over 100 tenants. 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, proposed and pending acquisitions and dispositions, the potential impact of trade disputes and recent extreme weather events on the Company's results, 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: general volatility of the capital markets and the market price of the Company's common stock or Series B participating preferred 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 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, 2020, 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.

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SOURCE Farmland Partners Inc.

FAQ

What impact did Hurricanes Ida and Nicholas have on Farmland Partners Inc. (FPI)?

Farmland Partners Inc. reported no significant damage to its farms from Hurricanes Ida and Nicholas.

How many acres of farmland are being renewed in 2021 for FPI?

Approximately 40,100 acres, or 27% of the total owned portfolio, are up for lease renewal in 2021.

What percentage of lease renewals has Farmland Partners Inc. completed in 2021?

Farmland Partners Inc. has completed approximately 59% of its lease renewals in 2021.

What is the expected increase in lease renewal rates for FPI?

The lease renewal rates show a weighted average increase of approximately 10-11%.

When will the 2021 lease renewals for FPI contribute to revenue?

The lease renewals signed in 2021 will commence in Q4 and contribute more to revenue in 2022 and beyond.