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Sep 30, 2022
Farmland Partners Q3 2022 Earnings Report
FPI's operating performance significantly improved and guidance was raised.
Key Takeaways
Farmland Partners Inc. reported a strong third quarter in 2022, with AFFO increasing by $5.7 million and operating income up over 200% compared to Q3 2021. The company benefited from higher rents, increased auction and brokerage fee revenue, increased direct operations gross profit, and lower litigation expenses. The outlook for 2022 remains positive, and the company increased both the bottom and top ends of its guidance range.
Net income increased by $3.8 million to $1.1 million, or $0.01 per share.
AFFO increased by $5.7 million to $2.5 million, or $0.05 per share.
Debt decreased by $16.0 million, while maintaining $48.0 million of undrawn capacity under its Rutledge line of credit.
Approximately 60% of leases expiring in 2022 were renewed at average rent increases in excess of 15%.
Revenue by Segment
Forward Guidance
Farmland Partners Inc. raised its 2022 AFFO guidance range to $0.27 to $0.31 from $0.26 to $0.30.
Positive Outlook
- Increased bottom end of AFFO guidance range.
- Increased top end of AFFO guidance range.
- Operations benefitted from higher rents on fixed leases.
- Increased auction and brokerage fee revenue.
- Increased direct operations gross profit.
Challenges Ahead
- Inflation leading to increased interest rates.
- Increased interest rates will impact many borrowers, including FPI, in 2023.
- 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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