Increased Fiscal Year 2024 Guidance
Farmland Partners Inc. (NYSE: FPI) (“FPI” or the “Company”)
today reported financial results for the quarter ended March 31,
2024.
Selected Highlights
During the quarter ended March 31, 2024, the
Company:
- recorded net income of $1.4 million, or
$0.01 per share available to common stockholders, compared to $1.7
million, or $0.02 per share available to common stockholders for
the same period in 2023;
- recorded AFFO of $2.8 million, or $0.06 per
share, compared to $1.6 million, or $0.03 per share, for the same
period in 2023;
- had average gross book value of real estate
of $1.00 billion compared to $1.14 billion for the same period in
2023, a decrease of 12.2% as a result of dispositions that occurred
during 2023, while total operating revenues decreased $0.7 million
or 5.4%;
- recognized a decrease of approximately $1.0
million, or 12.7% in total operating expenses compared to the same
period in 2023;
- increased the bottom and top end of 2024
AFFO guidance range to $0.19 to $0.26 from $0.15 to $0.23; and
- completed acquisitions of three properties
for total consideration of $16.3 million.
CEO Comments
Luca Fabbri, President and Chief Executive Officer: “FPI had a
very strong first quarter, with the highest first quarter AFFO ever
recorded in our company's history at $2.8 million, which was aided
by approximately $1.2 million of income from forfeited deposits.
After the overall portfolio improvements and very strong rent
increases of 2023, we have begun 2024 with a focus on continuing
the reduction in overhead expenses, lowering senior executive
compensation and shrinking our Board of Directors. While we
completed a large number of asset dispositions in 2023, which we do
not expect to repeat in 2024, we continue to pursue opportunities
to further enhance our farm portfolio, by acquiring complementary
assets in strong regions and evaluating selected farm dispositions
on assets with a less favorable long-term outlook for water
availability and/or crop pricing.”
Financial and Operating Results
- The table below shows financial and operating results for the
three months ended March 31, 2024 and 2023.
(in thousands)
For the three months ended
March 31,
Financial Results:
2024
2023
Change
Net Income
$
1,408
$
1,714
(17.9
)%
Net income available to common
stockholders (1)
$
0.01
$
0.02
(50.0
)%
AFFO (2)
$
2,784
$
1,550
79.6
%
AFFO per weighted average common share
$
0.06
$
0.03
100.0
%
Adjusted EBITDAre (2)
$
8,582
$
7,088
21.1
%
Operating Results:
Total Operating Revenues
$
11,990
$
12,672
(5.4
)%
Net Operating Income (NOI)
$
9,651
$
9,544
1.1
%
___________________
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 months ended March 31, 2024, when filed, for more
information.
(2)
Q1 2024 includes approximately $1.2
million of income from forfeited deposits due to the termination of
a repurchase agreement.
- 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 three months ended March 31, 2024, the Company
acquired three properties for total consideration of $16.3
million.
- During the three months ended March 31, 2024, there were no
dispositions of properties.
Balance Sheet
- The Company had total debt outstanding of $383.0 million at
March 31, 2024 compared to total debt outstanding of $363.1 million
at December 31, 2023.
- At March 31, 2024, the Company had access to liquidity of
$185.1 million, consisting of $6.2 million in cash and $178.9
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.
- During the three months ended March 31, 2024, the Company did
not repurchase any shares of common or preferred stock.
- As of April 25, 2024, the Company had 49,358,330 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 July 15, 2024, to stockholders
and common unit holders of record on July 1, 2024.
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 May 1, 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 2678168. 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 May 11, 2024, by dialing
1-800-770-2030 and using the playback ID 2678168. 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 March 31, 2024, the Company owned and/or managed approximately
177,400 acres in 17 states, including Arkansas, California,
Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana,
Mississippi, Missouri, Nebraska, North Carolina, Ohio, 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 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 March 31, 2024
(Unaudited) and December 31, 2023
(in thousands)
March 31,
December 31,
2024
2023
ASSETS
Land, at cost
$
885,993
$
869,848
Grain facilities
12,459
12,222
Groundwater
11,472
11,472
Irrigation improvements
41,345
41,988
Drainage improvements
10,315
10,315
Permanent plantings
42,286
39,620
Other
4,698
4,696
Construction in progress
1,795
4,453
Real estate, at cost
1,010,363
994,614
Less accumulated depreciation
(33,596
)
(33,083
)
Total real estate, net
976,767
961,531
Deposits
—
426
Cash and cash equivalents
6,228
5,489
Assets held for sale
26
28
Loans and financing receivables, net
31,170
31,020
Right of use asset
355
399
Accounts receivable, net
1,741
7,743
Derivative asset
1,602
1,707
Inventory
2,699
2,335
Equity method investments
4,053
4,136
Intangible assets, net
2,030
2,035
Goodwill
2,706
2,706
Prepaid and other assets
1,697
2,447
TOTAL ASSETS
$
1,031,074
$
1,022,002
LIABILITIES AND EQUITY
LIABILITIES
Mortgage notes and bonds payable, net
$
380,890
$
360,859
Lease liability
355
399
Dividends payable
2,964
13,286
Accrued interest
4,376
4,747
Accrued property taxes
2,523
1,898
Deferred revenue
9,889
2,149
Accrued expenses
3,659
7,854
Total liabilities
404,656
391,192
Commitments and contingencies
Redeemable non-controlling interest in
operating partnership, Series A preferred units
99,743
101,970
EQUITY
Common stock, $0.01 par value, 500,000,000
shares authorized; 48,154,991 shares issued and outstanding at
March 31, 2024, and 48,002,716 shares issued and outstanding at
December 31, 2023
466
466
Additional paid in capital
577,648
577,253
Retained earnings
32,041
31,411
Cumulative dividends
(98,830
)
(95,939
)
Other comprehensive income
2,476
2,691
Non-controlling interests in operating
partnership
12,874
12,958
Total equity
526,675
528,840
TOTAL LIABILITIES, REDEEMABLE
NON-CONTROLLING INTERESTS IN OPERATING PARTNERSHIP AND EQUITY
$
1,031,074
$
1,022,002
Farmland Partners Inc.
Consolidated Statements of
Operations
Three Months Ended March 31,
2024 and 2023 (Unaudited)
(in thousands except per share
amounts)
For the Three Months
Ended
March 31,
2024
2023
OPERATING REVENUES:
Rental income
$
10,207
$
10,726
Crop sales
660
360
Other revenue
1,123
1,586
Total operating revenues
11,990
12,672
OPERATING EXPENSES
Depreciation, depletion and
amortization
1,481
1,794
Property operating expenses
1,798
2,182
Cost of goods sold
541
946
Acquisition and due diligence costs
27
14
General and administrative expenses
2,627
2,606
Legal and accounting
333
244
Other operating expenses
36
49
Total operating expenses
6,843
7,835
OTHER (INCOME) EXPENSE:
Other (income)
(120
)
(11
)
(Income) loss from equity method
investment
(77
)
27
(Gain) loss on disposition of assets,
net
86
(1,826
)
(Income) from forfeited deposits
(1,205
)
—
Interest expense
5,036
4,924
Total other expense
3,720
3,114
Net income before income tax (benefit)
expense
1,427
1,723
Income tax expense
19
9
NET INCOME
1,408
1,714
Net (income) attributable to
non-controlling interests in operating partnership
(35
)
(38
)
Net income attributable to the Company
1,373
1,676
Dividend equivalent rights allocated to
performance-based unvested restricted shares
(2
)
—
Nonforfeitable distributions allocated to
time-based unvested restricted shares
(22
)
(16
)
Distributions on Series A Preferred
Units
(743
)
(803
)
Net income available to common
stockholders of Farmland Partners Inc.
$
606
$
857
Basic and diluted per common share
data:
Basic net income available to common
stockholders
$
0.01
$
0.02
Diluted net income available to common
stockholders
$
0.01
$
0.02
Basic weighted average common shares
outstanding
47,704
54,007
Diluted weighted average common shares
outstanding
47,704
54,007
Dividends declared per common share
$
0.06
$
0.06
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 months ended March 31, 2024, when filed, for the detailed
components of rental income.
Farmland Partners Inc.
Reconciliation of Non-GAAP
Measures
Three Months Ended March 31,
2024 and 2023 (Unaudited)
For the three months
ended
March 31,
(in thousands except per share
amounts)
2024
2023
Net income
$
1,408
$
1,714
(Gain) loss on disposition of assets,
net
86
(1,826
)
Depreciation, depletion and
amortization
1,481
1,794
FFO (1)
$
2,975
$
1,682
Stock-based compensation and incentive
525
459
Deferred impact of interest rate swap
terminations
—
198
Real estate related acquisition and due
diligence costs
27
14
Distributions on Preferred units and
stock
(743
)
(803
)
AFFO (1)
$
2,784
$
1,550
AFFO per diluted weighted average share
data:
AFFO weighted average common shares
49,278
55,567
Net income available to common
stockholders of Farmland Partners Inc.
$
0.01
$
0.02
Income available to redeemable
non-controlling interest and non-controlling interest in operating
partnership
0.03
0.01
Depreciation, depletion and
amortization
0.03
0.03
Impairment of assets
0.00
0.00
Stock-based compensation and incentive
0.01
0.01
(Gain) on disposition of assets, net
0.00
(0.03
)
Distributions on Preferred units and
stock
(0.02
)
(0.01
)
AFFO per diluted weighted average share
(1)
$
0.06
$
0.03
For the three months
ended
March 31,
(in thousands)
2024
2023
Net income
$
1,408
$
1,714
Interest expense
5,036
4,924
Income tax expense
19
9
Depreciation, depletion and
amortization
1,481
1,794
(Gain) loss on disposition of assets,
net
86
(1,826
)
EBITDAre (1)
$
8,030
$
6,615
Stock-based compensation and incentive
525
459
Real estate related acquisition and due
diligence costs
27
14
Adjusted EBITDAre (1)
$
8,582
$
7,088
(1)
Q1 2024 includes approximately $1.2
million of income from forfeited deposits due to the termination of
a repurchase agreement
Farmland Partners Inc.
Reconciliation of Non-GAAP
Measures
Three Months Ended March 31,
2024 and 2023 (Unaudited)
For the three months
ended
March 31,
($ in thousands)
2024
2023
OPERATING REVENUES:
Rental income
$
10,207
$
10,726
Crop sales
660
360
Other revenue
1,123
1,586
Total operating revenues
11,990
12,672
Property operating expenses
1,798
2,182
Cost of goods sold
541
946
NOI
9,651
9,544
Depreciation, depletion and
amortization
1,481
1,794
Acquisition and due diligence costs
27
14
General and administrative expenses
2,627
2,606
Legal and accounting
333
244
Other operating expenses
36
49
Other (income)
(120
)
(11
)
(Income) loss from equity method
investment
(77
)
27
(Gain) loss on disposition of assets,
net
86
(1,826
)
(Income) from forfeited deposits
(1,205
)
—
Interest expense
5,036
4,924
Income tax expense
19
9
NET INCOME
$
1,408
$
1,714
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 months ended March 31, 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, 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/20240430711499/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
