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>>> Farmland Partners Inc. Reports Second Quarter 2022 Results


Businesswire

July 26, 2022


https://finance.yahoo.com/news/farmland-partners-inc-reports-second-000000872.html


FPI Significantly Improves Operating Performance, Reduces Leverage, Raises Guidance, and Continues to Grow Portfolio


DENVER, July 27, 2022--(BUSINESS WIRE)--Farmland Partners Inc. (NYSE: FPI) ("FPI" or the "Company") today reported financial results for the three and six months ended June 30, 2022.

Selected Q2 2022 Highlights

During the three months ended June 30, 2022, the Company:

increased net income by $5.9 million to $3.0 million, or $0.04 per share available to common stockholders, compared to $(2.9) million, or $(0.19) per share available to common stockholders, for the same period in 2021;

increased AFFO by $4.8 million to $1.1 million, or $0.02 per share, from $(3.6) million, or $(0.11) per share, for the same period in 2021;

decreased debt by $38.4 million, while maintaining $32.0 million of undrawn capacity under its line of credit, bringing total debt to enterprise value to approximately 33.7%;

has renewed over one-third of leases expiring in 2022 at average rent increases in excess of 15%; and

received a federal judge’s dismissal of the class action lawsuit brought against FPI, which stemmed from a 2018 short and distort attack against the Company (link).

CEO Comments

Paul A. Pittman, Chairman and CEO said: "The second quarter of 2022 was an outstanding quarter in all respects—AFFO increased $4.8 million and operating income was up over 250% compared Q2 2021. Operations benefited from higher rents on fixed leases, increased fee revenue resulting from the 2021 acquisition of Murray Wise Associates, and lower capital costs (both interest and preferred distributions) resulting from the significant de-leveraging of the balance sheet. Across all row-crop regions, farmland values continue to appreciate strongly. In addition, we achieved total vindication from the 2018 short and distort scheme through the dismissal of the class action lawsuit against FPI, allowing management to focus attention on growing the business to deliver solid value to our shareholders. Despite pressure on the general economy, our outlook for 2022 remains positive, and we have increased both the bottom and top ends of our guidance range issued in May."

Financial and Operating Results

The tables below show financial and operating results for the three and six months ended June 30, 2022 and 2021. The values are shown as reported and after adjusting for litigation items.

Legal and accounting expense for the three months ended June 30, 2022 and 2021 included $0.3 million and $2.7 million, respectively, related to litigation. Revenue for the three months ended June 30, 2022 and 2021 included $— million and $0.6 million, respectively, of litigation settlement proceeds related to the Rota Fortunae case.

Legal and accounting expense for the six months ended June 30, 2022 and 2021 included $1.2 million and $5.2 million, respectively, related to litigation. Revenue for the six months ended June 30, 2022 and 2021 included $— million and $0.6 million, respectively, of litigation settlement proceeds related to the Rota Fortunae case.

(2)

Please note change in the definition of NOI to include cost of goods sold.

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 six months ended June 30, 2022, the Company completed nine property acquisitions for total consideration of $28.2 million.

During the six months ended June 30, 2022, the Company completed five property dispositions for cash consideration of $16.9 million and total gain on sale of $4.0 million (or 30.6%).

Balance Sheet

During the six months ended June 30, 2022, the Company sold 7.0 million shares of common stock at a weighted average price of $14.00 for aggregate net proceeds of $98.4 million under its "at-the-market" offering programs. After the end of the quarter, the Company sold an additional 247,416 shares of common stock at a weighted average price of $14.17 for aggregate net proceeds of $3.5 million.

As of July 22, 2022, the Company had 54,283,413 shares of common stock outstanding on a fully diluted basis.

The Company had total debt outstanding of $426.5 million at June 30, 2022, compared to total debt outstanding of $513.4 million at December 31, 2021. Debt as a percentage of enterprise value was approximately 33.7% at June 30, 2022, compared to approximately 44.1% at December 31, 2021.

The company had Series A preferred units of $113.7 million outstanding after the redemption of $5.0 million of Series A preferred units in the quarter.

The Company had liquidity of $51.7 million, consisting of $19.7 million in cash and $32.0 million in undrawn availability under its credit facility at June 30, 2022, compared to cash of $30.2 million at December 31, 2021.

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 October 17, 2022, to stockholders and common unit holders of record on October 1, 2022.

Conference Call Information and Supplemental Package

The Company has scheduled a conference call on July 27, 2022, at 1:00 p.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 882915. 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 August 8, 2022, by dialing 1-866-813-9403 (USA), 1-226-828-7578 (Canada), or [phone] (other locations) and using the access code 371344. 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.

A supplemental package can be accessed through the Investor Relations section of the Company's website.

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 June 30, 2022, the Company owns and/or manages approximately 185,300 acres in 18 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, North Carolina, Nebraska, South Carolina, 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:

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