Completed Nearly $200 million of Asset
Sales, Demonstrating Gains, and Returning Capital to
Shareholders
Farmland Partners Inc. (NYSE: FPI) (“FPI” or the “Company”)
today reported financial results for the year ended December 31,
2023.
Selected Fiscal Year 2023 Highlights
During the year ended December 31, 2023, the
Company:
- recorded net income of $31.7 million, or $0.55 per share
available to common stockholders, compared to $12.0 million, or
$0.16 per share available to common stockholders for the same
period in 2022;
- recorded AFFO of $8.1 million, or $0.16 per share, compared to
$15.8 million, or $0.30 per share, for the same period in
2022;
- completed dispositions of 74 properties for approximately
$195.5 million in aggregate consideration, recognized an aggregate
gain on sale of approximately $36.1 million, and deferred an
additional net gain on sale of $2.1 million in connection with
dispositions of certain properties with seller financing;
- declared a one-time special dividend of $0.21 per share of
common stock and Class A Common OP Unit in December 2023 which was
paid in January 2024;
- completed acquisitions of four properties for total
consideration of $22.2 million;
- repurchased 6,551,087 shares of its common stock at a weighted
average price of $11.00 per share;
- decreased indebtedness by $76.4 million, from $439.5 million of
total debt outstanding at December 31, 2022, or 40% of net real
estate value, to $363.1 million at December 31, 2023, or 38% of net
real estate value;
- increased liquidity to $206.6 million as of December 31, 2023,
compared to $176.7 million as of December 31, 2022; and
- renewed fixed cash farm leases expiring in 2023, which
represented approximately 14% of total revenue for 2023, at average
rent increases of approximately 20%.
CEO Comments
Luca Fabbri, President and Chief Executive Officer: “Against a
backdrop of uncertainty and poor performance in many real estate
sectors, in 2023 farmland has yet again demonstrated its strength
and stability thanks to its very different fundamentals. We have
been able to renew our expiring leases with an average rent
increase of approximately 20%, as a testimony of the strength of
the farm economy and our tenant base. Our strategy has been to
demonstrate concretely the value embedded in our portfolio,
selectively disposing of assets and using proceeds to buy back
stock at prices we believe to be significantly below fair value per
share, reduce leverage, acquire other farms with better long term
value generation potential, and distribute a special dividend to
our shareholders. The vast majority of our asset sales, and related
gains, occurred on farms outside the core of the Corn Belt region,
which is the most valuable part of our farmland portfolio. In 2024
we plan to continue to look for opportunities to selectively prune
our portfolio, albeit likely at a smaller scale, and further reduce
our overhead expenses.”
Financial and Operating Results
- The table below shows financial and operating results for the
years ended December 31, 2023 and 2022.
(in thousands)
For the years ended December
31,
Financial Results:
2023
2022
Change
Net Income
$
31,681
$
11,960
164.9
%
Net income per share available to common
stockholders (1)
$
0.55
$
0.16
243.8
%
AFFO
$
8,140
$
15,761
(48.4
)
%
AFFO per weighted average common
shares
$
0.16
$
0.30
(46.7
)
%
Adjusted EBITDAre
$
33,403
$
34,759
(3.9
)
%
Operating Results:
Total Operating Revenues
$
57,466
$
61,210
(6.1
)
%
Net Operating Income (NOI)
$
44,052
$
47,054
(6.4
)
%
___________________
NM = Not Meaningful
(1)
Basic net income per share available to
common stockholders. See “Note 9—Stockholders’ Equity and
Non-controlling Interests” in the Annual Report on Form 10-K for
the year ended December 31, 2023, when filed, for more
information.
- 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, 2023, the Company acquired
four properties for total consideration of $22.2 million.
- During the year ended December 31, 2023, the Company completed
74 property dispositions for approximately $195.5 million in
aggregate consideration, including $11.8 million in seller
financing, and total gain on sale of $36.1 million. In addition,
the Company deferred a net gain on sale of $2.1 million in
connection with dispositions of certain properties with seller
financing.
Balance Sheet
- The Company had total debt outstanding of $363.1 million at
December 31, 2023, or 38% of net real estate value, compared to
total debt outstanding of $439.5 million at December 31, 2022, or
40% of net real estate value.
- At December 31, 2023, the Company had access to liquidity of
$206.6 million, consisting of $5.5 million in cash and $201.1
million in undrawn availability under its credit facilities
compared to cash of $7.7 million and $169.0 million in undrawn
availability under its credit facilities at December 31, 2022.
- During the year ended December 31, 2023, the Company
repurchased 6,551,087 shares of its common stock at a weighted
average price of $11.00 per share.
- In December 2023, the Company declared a one-time special
dividend of $0.21 per share of common stock and Class A Common OP
Unit which was paid in January 2024;
- As of February 23, 2024, the Company had 49,231,777 shares of
common stock outstanding on a fully diluted basis.
Dividend Declarations
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 April 15, 2024, to stockholders
and common unit holders of record on April 1, 2024.
2023 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 February 29,
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
1-888-596-4144 and using the conference ID 9397607. 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 March 10, 2024, by dialing
1-800-770-2030 and using the playback ID 9397607. 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, 2023, the Company owns and/or manages approximately
171,100 acres in 16 states, including Arkansas, California,
Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana,
Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, 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 has 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, 2022, 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, 2023 and
2022
(in thousands)
December 31,
December 31,
2023
2022
ASSETS
Land, at cost
$
869,848
$
980,521
Grain facilities
12,222
11,349
Groundwater
11,472
17,682
Irrigation improvements
41,988
50,097
Drainage improvements
10,315
12,543
Permanent plantings
39,620
50,394
Other
4,696
6,967
Construction in progress
4,453
14,810
Real estate, at cost
994,614
1,144,363
Less accumulated depreciation
(33,083
)
(38,447
)
Total real estate, net
961,531
1,105,916
Deposits
426
148
Cash and cash equivalents
5,489
7,654
Assets held for sale
28
33
Loans and financing receivables, net
31,020
21,921
Right of use asset
399
325
Deferred offering costs
—
63
Accounts receivable, net
7,743
7,055
Derivative asset
1,707
2,084
Inventory
2,335
2,808
Equity method investments
4,136
4,185
Intangible assets, net
2,035
2,055
Goodwill
2,706
2,706
Prepaid and other assets
2,447
3,196
TOTAL ASSETS
$
1,022,002
$
1,160,149
LIABILITIES AND EQUITY
LIABILITIES
Mortgage notes and bonds payable, net
$
360,859
$
436,875
Lease liability
399
325
Dividends payable
13,286
3,333
Accrued interest
4,747
4,135
Accrued property taxes
1,898
2,008
Deferred revenue
2,149
44
Accrued expenses
7,854
9,215
Total liabilities
391,192
455,935
Commitments and contingencies
Redeemable non-controlling interest in
operating partnership, Series A preferred units
101,970
110,210
EQUITY
Common stock, $0.01 par value, 500,000,000
shares authorized; 48,002,716 shares issued and outstanding at
December 31, 2023, and 54,318,312 shares issued and outstanding at
December 31, 2022
466
531
Additional paid in capital
577,253
647,346
Retained earnings
31,411
3,567
Cumulative dividends
(95,939
)
(73,964
)
Other comprehensive income
2,691
3,306
Non-controlling interests in operating
partnership
12,958
13,218
Total equity
528,840
594,004
TOTAL LIABILITIES, REDEEMABLE
NON-CONTROLLING INTERESTS IN OPERATING PARTNERSHIP AND EQUITY
$
1,022,002
$
1,160,149
Farmland Partners Inc.
Consolidated Statements of
Operations
Years Ended December 31, 2023
and 2022
(in thousands except per share
amounts)
For the Years Ended
December 31,
2023
2022
OPERATING REVENUES:
Rental income
$
49,185
$
48,879
Crop sales
2,257
5,372
Other revenue
6,024
6,959
Total operating revenues
57,466
61,210
OPERATING EXPENSES
Depreciation, depletion and
amortization
7,499
6,960
Property operating expenses
8,660
8,190
Cost of goods sold
4,754
5,966
Acquisition and due diligence costs
17
111
General and administrative expenses
11,274
12,005
Legal and accounting
1,279
2,874
Impairment of assets
5,840
—
Other operating expenses
144
130
Total operating expenses
39,467
36,236
OTHER (INCOME) EXPENSE:
Other (income)
(39
)
(663
)
(Income) from equity method investment
(1
)
(52
)
(Gain) on disposition of assets, net
(36,133
)
(2,641
)
Interest expense
22,657
16,143
Total other expense
(13,516
)
12,787
Net income before income tax (benefit)
expense
31,515
12,187
Income tax (benefit) expense
(166
)
227
NET INCOME
31,681
11,960
Net (income) attributable to
non-controlling interests in operating partnership
(768
)
(286
)
Net income attributable to the Company
30,913
11,674
Nonforfeitable distributions allocated to
unvested restricted shares
(157
)
(63
)
Distributions on Series A Preferred
Units
(2,970
)
(3,210
)
Net income available to common
stockholders of Farmland Partners Inc.
$
27,786
$
8,401
Basic and diluted per common share
data:
Basic net income available to common
stockholders
$
0.55
$
0.16
Diluted net income available to common
stockholders
$
0.53
$
0.16
Basic weighted average common shares
outstanding
50,243
50,953
Diluted weighted average common shares
outstanding
58,292
50,953
Dividends declared per common share
$
0.24
$
0.23
Please note: a presentation change to the consolidated
statements of operations now groups tenant reimbursement into
rental income. Please see “Note 2—Revenue Recognition” of the
Annual Report on Form 10-K for the year ended December 31, 2023,
when filed, for the detailed components of rental income.
Farmland Partners Inc.
Reconciliation of Non-GAAP
Measures
Years Ended December 31, 2023
and 2022
For the years ended December
31,
(in thousands except per share
amounts)
2023
2022
Net income
$
31,681
$
11,960
(Gain) on disposition of assets, net
(36,133
)
(2,641
)
Depreciation, depletion and
amortization
7,499
6,960
Impairment of assets
5,840
—
FFO
$
8,887
$
16,279
Stock-based compensation and incentive
2,008
1,999
Deferred impact of interest rate swap
terminations
198
582
Real estate related acquisition and due
diligence costs
17
111
Distributions on Preferred units and
stock
(2,970
)
(3,210
)
AFFO
$
8,140
$
15,761
AFFO per diluted weighted average share
data:
AFFO weighted average common shares
51,810
52,531
Net income available to common
stockholders of Farmland Partners Inc.
$
0.55
$
0.16
Income available to redeemable
non-controlling interest and non-controlling interest in operating
partnership
0.08
0.08
Depreciation, depletion and
amortization
0.14
0.13
Impairment of assets
0.11
0.00
Stock-based compensation and incentive
0.04
0.04
(Gain) on disposition of assets, net
(0.70
)
(0.05
)
Distributions on Preferred units and
stock
(0.06
)
(0.06
)
AFFO per diluted weighted average
share
$
0.16
$
0.30
For the years ended December
31,
(in thousands)
2023
2022
Net income
$
31,681
$
11,960
Interest expense
22,657
16,143
Income tax (benefit) expense
(166
)
227
Depreciation, depletion and
amortization
7,499
6,960
Impairment of assets
5,840
—
(Gain) on disposition of assets, net
(36,133
)
(2,641
)
EBITDAre
$
31,378
$
32,649
Stock-based compensation and incentive
2,008
1,999
Real estate related acquisition and due
diligence costs
17
111
Adjusted EBITDAre
$
33,403
$
34,759
Farmland Partners Inc.
Reconciliation of Non-GAAP
Measures
Years Ended December 31, 2023
and 2022
For the years ended December
31,
($ in thousands)
2023
2022
OPERATING REVENUES:
Rental income
$
49,185
$
48,879
Crop sales
2,257
5,372
Other revenue
6,024
6,959
Total operating revenues
57,466
61,210
Property operating expenses
8,660
8,190
Cost of goods sold
4,754
5,966
NOI
44,052
47,054
Depreciation, depletion and
amortization
7,499
6,960
Acquisition and due diligence costs
17
111
General and administrative expenses
11,274
12,005
Legal and accounting
1,279
2,874
Impairment of assets
5,840
—
Other operating expenses
144
130
Other (income)
(39
)
(663
)
(Income) from equity method investment
(1
)
(52
)
(Gain) loss on disposition of assets,
net
(36,133
)
(2,641
)
Interest expense
22,657
16,143
Income tax (benefit) expense
(166
)
227
NET INCOME
$
31,681
$
11,960
Please note: a presentation change to the consolidated
statements of operations now groups tenant reimbursement into
rental income. Please see “Note 2—Revenue Recognition” of the
Annual Report on Form 10-K for the year ended December 31, 2023,
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 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.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240228627301/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
