Reports Record Year; Initiates 2023
Guidance
Farmland Partners Inc. (NYSE: FPI) (“FPI” or the “Company”)
today reported financial results for the quarter and year ended
December 31, 2022.
Selected Fiscal Year 2022 Highlights
During the year ended December 31, 2022, the Company:
- recorded net income of $12.0 million, or $0.16 per share
available to common stockholders, compared to $10.3 million, or
($0.17) per share available to common stockholders, for the same
period in 2021;
- recorded AFFO of $15.8 million, or $0.30 per share, compared to
$0.4 million, or $0.01 per share, for the same period in 2021;
- decreased indebtedness by $73.9 million, from $513.4 million of
total debt outstanding at December 31, 2021 to $439.5 million at
December 31, 2022;
- increased access to liquidity to $176.7 million, compared to
$30.2 million for the same period in 2021; and
- renewed approximately 95% of row crop fixed farm rent leases
expiring in 20221 at average rent increases of approximately
16%.
Selected Q4 2022 Highlights
During the quarter ended December 31, 2022, the Company:
- recorded net income of $6.7 million (including $1.3 million in
losses on grape vine and citrus tree redevelopment/retirement), or
$0.11 per share available to common stockholders, compared to $13.3
million (including $5.9 million in gains on sale of properties), or
$0.14 per share available to common stockholders, for the same
period in 2021; and
- recorded AFFO of $10.0 million, or $0.18 per share, compared to
$8.9 million, or $0.19 per share, for the same period in 2021.
CEO Comments
Paul A. Pittman, Chairman and CEO said: “2022 was a strong year
for FPI—total revenue and AFFO were the highest in the history of
the company. Higher rents on fixed leases, increased auction and
brokerage fee revenue, and lower litigation expenses helped propel
the company to an outstanding year. During 2022 the Company had
very strong results on its row crop properties and faced challenges
on the specialty crop properties due to drought and ongoing
supply/demand imbalances. We remain positive on the outlook for the
farm economy, as global food demand continues to be very strong and
values of premium farms in our Corn Belt, Mississippi Delta, and
Southeast regions continue to increase to their highest levels in
years. As we move into 2023, our overall business is solid.
However, inflation that is helping to push farmer profitability and
land values to record levels is also leading to increased interest
costs for the Company and borrowers worldwide. At the same time,
supply chain disruptions, weather events, and other factors have
resulted in volatility in certain crop yields and crop prices. Our
bottom line will be negatively impacted by these headwinds, but we
remain confident that we are positioned well to withstand these
pressures and continue to operate profitably, efficiently, and
effectively until we can resume our strategic growth plan once
those headwinds abate.”
_______________ 1 Row crop fixed farm rent leases with
expiration in 2022 represented approximately 13% of total revenue
in 2022.
Financial and Operating Results
- The tables below show financial and operating results for the
quarters and years ended December 31, 2022 and 2021.
As reported
For the years ended
December 31,
Financial Results:
2022
2021
Change
Net Income
$
11,960
$
10,259
16.6
%
Net income (loss) per share available to
common stockholders
$
0.16
$
(0.17
)
NM
AFFO
$
15,761
$
410
NM
AFFO per weighted average common
shares
$
0.30
$
0.01
NM
Adjusted EBITDAre
$
34,759
$
25,845
34.5
%
Operating Results:
Total Operating Revenues
$
61,210
$
51,739
18.3
%
Operating Income
$
24,974
$
16,813
48.5
%
Net Operating Income (NOI)
$
47,054
$
42,883
9.7
%
NM = Not Meaningful
As reported
For the three months
ended
December 31,
Financial Results:
2022
2021
Change
Net Income
$
6,707
$
13,313
(49.6)
%
Net income per share available to common
stockholders
$
0.11
$
0.14
(21.4)
%
AFFO
$
10,031
$
8,901
12.7
%
AFFO per weighted average common
shares
$
0.18
$
0.19
(5.3)
%
Adjusted EBITDAre
$
15,107
$
13,625
10.9
%
Operating Results:
Total Operating Revenues
$
21,823
$
20,046
8.9
%
Operating Income
$
12,473
$
11,322
10.2
%
Net Operating Income (NOI)
$
18,240
$
18,156
0.5
%
- See "Non-GAAP Financial Measures" 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 year ended December 31, 2022, the Company acquired
20 properties for total consideration of $54.4 million in real
estate purchases accounted for as asset acquisitions plus $17.3
million for the purchase of land and buildings for four agriculture
equipment dealerships in Ohio leased to Ag Pro under the John Deere
brand. Those leases are accounted for as financing receivables and
reflected in loans and financing receivables, net on the Company’s
balance sheet.
- During the year ended December 31, 2022, the Company completed
five property dispositions for cash consideration of $17.0 million
and total gain on sale of $2.6 million.
Balance Sheet
- The Company had total debt outstanding of $439.5 million at
December 31, 2022, compared to total debt outstanding of $513.4
million at December 31, 2021, a reduction of $73.9 million during
the year ended December 31, 2022.
- At December 31, 2022, the Company had access to liquidity of
$176.7 million, consisting of $7.7 million in cash and $169.0
million in undrawn availability under its credit facilities,
respectively, compared to cash of $30.2 million and no undrawn
availability on the Company’s credit facilities at December 31,
2021.
- During the year ended December 31, 2022, the Company sold 8.6
million shares of common stock at a weighted average price of
$14.13 for aggregate net proceeds of $121.3 million under its
“at-the-market” offering program.
- As of February 17, 2023, the Company had 55,577,529 shares of
common stock outstanding on a fully diluted basis.
- The company had Series A preferred units of $110.2 million
outstanding after the redemption of $10.0 million of Series A
preferred units during the year ended December 31, 2022.
Dividend Declarations
- The Company’s Board of Directors declared a quarterly cash
dividend of $0.06 per share of common stock and per Class A Common
OP unit. The dividends are payable on April 17, 2023, to
stockholders and common unit holders of record on April 3,
2023.
Subsequent to Q4 2022
- Subsequent to December 31, 2022, the Company reset rates on
$109.4 million of the $174.1 million with interest rate resets in
2023: MetLife Term Loan #5 repriced to 5.63%, effective January 12,
2023; MetLife #6 repriced to 5.55%, effective February 14, 2023;
MetLife Term Loan #1 and 4 repriced to 5.55%, effective March 29,
2023.
2023 Earnings Guidance and Supplemental Package
For 2023 earnings guidance, please see pages 14 to 17 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 February 23,
2023, at 11:00 a.m. (Eastern Time) to discuss the financial results
and provide a company update.
The call can be accessed by dialing 1-844-200-6205 (USA),
1-833-950-0062 (Canada), or 1-929-526-1599 (other locations) and
using the access code 185046. The conference call will also be
available via a live listen-only webcast and 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 March 5, 2023, by dialing
1-866-813-9403 (USA), 1-226-828-7578 (Canada), or +44 (20)
4525-0658 (other locations) and using the access code 548018. 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 December 31, 2022, the Company owns and/or manages approximately
196,100 acres in 19 states, including Alabama, Arkansas,
California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa,
Kansas, Louisiana, Michigan, Mississippi, Missouri, Nebraska, North
Carolina, South Carolina, Texas, and Virginia. In addition, we own
land and buildings for four agriculture equipment dealerships in
Ohio leased to Ag Pro under the John Deere brand. 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 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: the on-going war in Ukraine and
its impact on the world agriculture market, world food supply, the
farm economy, and our tenants’ businesses; 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 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, 2021, 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 December 31, 2022 and
2021
(in thousands)
December 31,
December 31,
2022
2021
ASSETS
Land, at cost
$
980,521
$
945,951
Grain facilities
11,349
10,754
Groundwater
17,682
10,214
Irrigation improvements
50,097
52,693
Drainage improvements
12,543
12,606
Permanent plantings
50,394
53,698
Other
6,967
6,848
Construction in progress
14,810
10,647
Real estate, at cost
1,144,363
1,103,411
Less accumulated depreciation
(38,447
)
(38,303
)
Total real estate, net
1,105,916
1,065,108
Deposits
148
58
Cash and cash equivalents
7,654
30,171
Assets held for sale
33
530
Loans and financing receivables, net
21,921
6,112
Right of use asset
325
107
Deferred offering costs
63
40
Accounts receivable, net
7,055
4,900
Derivative asset
2,084
—
Inventory
2,808
3,059
Equity method investments
4,185
3,427
Intangible assets, net
2,055
1,915
Goodwill
2,706
2,706
Prepaid and other assets
3,196
3,392
TOTAL ASSETS
$
1,160,149
$
1,121,525
LIABILITIES AND EQUITY
LIABILITIES
Mortgage notes and bonds payable, net
$
436,875
$
511,323
Lease liability
325
107
Dividends payable
3,333
2,342
Derivative liability
—
785
Accrued interest
4,135
3,011
Accrued property taxes
2,008
1,762
Deferred revenue
44
45
Accrued expenses
9,215
9,564
Total liabilities
455,935
528,939
Commitments and contingencies
Redeemable non-controlling interest in
operating partnership, Series A preferred units
110,210
120,510
EQUITY
Common stock, $0.01 par value, 500,000,000
shares authorized; 54,318,312 shares issued and outstanding at
December 31, 2022, and 45,474,145 shares issued and outstanding at
December 31, 2021
531
444
Additional paid in capital
647,346
524,183
Retained earnings (deficit)
3,567
(4,739
)
Cumulative dividends
(73,964
)
(61,853
)
Other comprehensive income
3,306
279
Non-controlling interests in operating
partnership
13,218
13,762
Total equity
594,004
472,076
TOTAL LIABILITIES, REDEEMABLE
NON-CONTROLLING INTERESTS IN OPERATING PARTNERSHIP AND EQUITY
$
1,160,149
$
1,121,525
Farmland Partners Inc.
Consolidated Statements of
Operations
Years Ended December 31, 2022
and 2021
(in thousands except per share
amounts)
For the Years Ended
December 31,
2022
2021
OPERATING REVENUES:
Rental income
$
45,615
$
45,251
Tenant reimbursements
3,264
3,450
Crop sales
5,372
880
Other revenue
6,959
2,158
Total operating revenues
61,210
51,739
OPERATING EXPENSES
Depreciation, depletion and
amortization
6,960
7,629
Property operating expenses
8,190
7,331
Cost of goods sold
5,966
1,525
Acquisition and due diligence costs
111
55
General and administrative expenses
12,005
8,208
Legal and accounting
2,874
10,147
Other operating expenses
130
31
Total operating expenses
36,236
34,926
OPERATING INCOME
24,974
16,813
OTHER (INCOME) EXPENSE:
Other (income)
(663
)
(66
)
(Income) from equity method investment
(52
)
(19
)
(Gain) on disposition of assets
(2,641
)
(9,290
)
Interest expense
16,143
15,929
Total other expense
12,787
6,554
Net income before income tax expense
12,187
10,259
Income tax expense
227
—
NET INCOME
11,960
10,259
Net (income) attributable to
non-controlling interests in operating partnership
(286
)
(268
)
Net income attributable to the Company
11,674
9,991
Nonforfeitable distributions allocated to
unvested restricted shares
(63
)
(57
)
Distributions on Series A Preferred Units
and Series B Preferred Stock
(3,210
)
(10,052
)
Redemption of Series B Participating
Preferred Stock
—
(5,716
)
Net income (loss) available to common
stockholders of Farmland Partners Inc.
$
8,401
$
(5,834
)
Basic and diluted per common share
data:
Basic net income (loss) available to
common stockholders
$
0.16
$
(0.17
)
Diluted net income (loss) available to
common stockholders
$
0.16
$
(0.17
)
Basic weighted average common shares
outstanding
50,953
34,641
Diluted weighted average common shares
outstanding
50,953
34,641
Dividends declared per common share
$
0.23
$
0.20
Farmland Partners Inc.
Reconciliation of Non-GAAP
Measures
Years Ended December 31, 2022
and 2021
For the years ended December
31,
(in thousands except per share
amounts)
2022
2021
Net income
$
11,960
$
10,259
(Gain) on disposition of assets
(2,641
)
(9,290
)
Depreciation, depletion and
amortization
6,960
7,629
FFO
$
16,279
$
8,598
Stock-based compensation and incentive
1,999
1,263
Deferred impact of interest rate swap
terminations
582
546
Real estate related acquisition and due
diligence costs
111
55
Distributions on Preferred units and
stock
(3,210
)
(10,052
)
AFFO
$
15,761
$
410
AFFO per diluted weighted average share
data:
AFFO weighted average common shares
52,531
36,410
Net income (loss) available to common
stockholders of Farmland Partners Inc.
$
0.16
$
(0.17
)
Income available to redeemable
non-controlling interest and non-controlling interest in operating
partnership
0.08
0.48
Depreciation, depletion and
amortization
0.13
0.21
Stock-based compensation and incentive
0.04
0.03
(Gain) on disposition of assets
(0.05
)
(0.26
)
Distributions on Preferred units and
stock
(0.06
)
(0.28
)
AFFO per diluted weighted average
share
$
0.30
$
0.01
For the years ended
December 31,
(in thousands)
2022
2021
Net income
$
11,960
$
10,259
Interest expense
16,143
15,929
Income tax expense
227
—
Depreciation, depletion and
amortization
6,960
7,629
(Gain) on disposition of assets
(2,641
)
(9,290
)
EBITDAre
$
32,649
$
24,527
Stock-based compensation and incentive
1,999
1,263
Real estate related acquisition and due
diligence costs
111
55
Adjusted EBITDAre
$
34,759
$
25,845
Farmland Partners Inc.
Reconciliation of Non-GAAP Measures Years Ended December 31, 2022
and 2021
For the years ended December
31,
($ in thousands)
2022
2021
OPERATING REVENUES:
Rental income
$
45,615
$
45,251
Tenant reimbursements
3,264
3,450
Crop sales
5,372
880
Other revenue
6,959
2,158
Total operating revenues
61,210
51,739
Property operating expenses
8,190
7,331
Cost of goods sold
5,966
1,525
NOI
47,054
42,883
Depreciation, depletion and
amortization
6,960
7,629
Acquisition and due diligence costs
111
55
General and administrative expenses
12,005
8,208
Legal and accounting
2,874
10,147
Other operating expenses
130
31
Other (income)
(663
)
(66
)
(Income) from equity method investment
(52
)
(19
)
(Gain) loss on disposition of assets
(2,641
)
(9,290
)
Interest expense
16,143
15,929
Income tax expense
227
—
NET INCOME
$
11,960
$
10,259
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, 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, stock-based compensation and incentive,
deferred impact of interest rate swap terminations, and
distributions on the Company’s preferred units. For the avoidance
of doubt, $5.7 million non-cash redemption of Series B
Participating Preferred Stock in Q4 2021 is not included in
AFFO.
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
and real estate related acquisition and due diligence costs 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20230222005937/en/
James Gilligan ir@farmlandpartners.com
Farmland Partners (NYSE:FPI)
過去 株価チャート
から 11 2024 まで 12 2024
Farmland Partners (NYSE:FPI)
過去 株価チャート
から 12 2023 まで 12 2024
