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Jun 30, 2023
Farmland Partners Q2 2023 Earnings Report
Reported strong value appreciation through asset sales and increased net income.
Key Takeaways
Farmland Partners Inc. reported a significant increase in net income for Q2 2023, driven by gains on farm dispositions. However, AFFO decreased compared to the same period last year. The company is focusing on farm sales to reduce high-cost debt and is experiencing lower transaction volumes in auction and brokerage channels.
Net income increased to $7.9 million, or $0.14 per share, compared to $3.0 million, or $0.04 per share in Q2 2022.
AFFO decreased to ($1.1) million, or ($0.02) per share, compared to $1.1 million, or $0.02 per share in Q2 2022.
Completed 17 farm dispositions for $44.4 million, recognizing a gain on sale of $11.1 million.
Repurchased 4,136,946 shares of common stock at a weighted average price of $11.37 per share.
Revenue by Segment
Forward Guidance
The company is targeting additional farm sales of over $80 million in the second half of 2023 to reduce high-cost debt. However, lower-than-expected transaction volumes and higher interest expense are expected to impact results.
Positive Outlook
- Targeting additional farm sales of over $80 million in the second half of 2023.
- Proceeds from farm sales will be used to reduce high-cost debt.
- Working with potential buyers on additional sales to close before year-end.
- Potential for additional dividends to be declared based on capital gains from farm sales.
- U.S. farm economy remains strong and a pillar of worldwide food security.
Challenges Ahead
- Experiencing lower-than-expected transaction volumes in auction and brokerage channels.
- Higher interest expense will impact results.
- Level of capital gains on sales of farms in 2023 may result in additional dividends being declared at a later time, which decision will be based on actual results, further internal financial analysis, and would be subject to board approval.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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