DENVER, June 5, 2017 /PRNewswire/ -- Farmland
Partners Inc. (NYSE: FPI) (the "Company") today released a
supplemental financial package (the "Supplemental"), which includes
the Company's initial full-year 2017 financial outlook. The
Supplemental is available on the investor relations section of the
Company's website.
Initial Full-Year 2017 Financial Outlook
(in thousands,
except per share data)
|
|
|
|
Low
|
High
|
|
|
|
Revenue
|
|
|
Base rental
income
|
$31,500
|
$32,000
|
Participation
income
|
7,500
|
8,500
|
Other
revenue
|
3,000
|
3,000
|
Total
revenues
|
$42,000
|
$43,500
|
|
|
|
Expenses
|
|
|
Property operating
expenses
|
5,000
|
6,000
|
General and
administrative
|
7,000
|
8,000
|
Legal and
accounting
|
1,500
|
1,750
|
Interest
|
13,500
|
14,000
|
Preferred
dividends
|
$3,510
|
$3,510
|
|
|
|
Per Share
Data
|
|
|
Weighted average
shares outstanding
|
37,500
|
38,000
|
|
|
|
AFFO per
share
|
$0.33
|
$0.37
|
- Revenue and expense guidance excludes the impact of any future
acquisitions, dispositions or other capital markets activity
- Revenue projection is based primarily on farm-by-farm lease
economics
- Management will update guidance at its discretion
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 over 154,000 acres in
Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North
Carolina, South Carolina,
South Dakota, Texas and Virginia. 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.
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 the Company's financial
outlook and future results of operations. 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, 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 under contract and the other factors
described in the section entitled "Risk Factors" in our Annual
Report on Form 10-K for the year ended December 31, 2016, and our 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 we do not undertake any obligation to update or
revise any forward-looking information to reflect changes in
assumptions, the occurrence of unanticipated events, or
otherwise.
Non-GAAP Financial Measures
The Company considers certain non-GAAP measures as useful to
investors as key supplemental measures of its performance,
including funds from operations ("FFO") and adjusted funds from
operations ("AFFO"). 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 and
AFFO, as calculated by the Company, may not be comparable to other
companies that do not define such terms exactly as the Company.
The Company does not provide a reconciliation for its guidance
range of AFFO per diluted share to net income per diluted share,
the most directly comparable forward-looking GAAP financial
measure, because it is unable to provide a meaningful or accurate
estimate of reconciling items and the information is not available
without unreasonable effort as a result of the inherent difficulty
of forecasting the timing and/or amounts of various items that
would impact net income per diluted share.
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, plus real estate
related depreciation, depletion and amortization (excluding
amortization of deferred financing costs), and after adjustments
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 and stock-based compensation. For the quarter
ended March 31, 2017, excluded
expenses include the payments related to the Prudential
Sub-Advisory Agreement and corresponding termination payment as
well as acquisition and due diligence costs in connection with the
closing of the AFCO merger.
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.
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SOURCE Farmland Partners Inc.