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Sep 30, 2023
Farmland Partners Q3 2023 Earnings Report
Farmland Partners reported mixed results in Q3 2023, with increased net income offset by a decrease in AFFO, while continuing its asset disposition strategy and increasing guidance.
Key Takeaways
Farmland Partners Inc. reported a significant increase in net income for Q3 2023, driven by gains from farm dispositions. However, AFFO decreased compared to the same period in the previous year. The company continued its strategy of selectively pruning its portfolio through asset sales and redeploying capital into stock buybacks, debt repayment, and acquisitions. They also increased guidance based on the value appreciation through asset sales.
Net income increased to $4.3 million, or $0.07 per share, compared to $1.1 million, or $0.01 per share in Q3 2022.
AFFO decreased to ($0.5) million, or ($0.01) per share, compared to $2.5 million, or $0.05 per share in Q3 2022.
Completed 35 farm dispositions for approximately $71.1 million, recognizing a gain on sale of approximately $10.3 million.
Repurchased 618,073 shares of common stock at a weighted average price of $10.89 per share.
Revenue by Segment
Forward Guidance
Farmland Partners plans to sell additional farmland and has acquisition transactions under advanced negotiations.
Positive Outlook
- US agriculture industry offers stability.
- Selectively pruning portfolio.
- Redeploying capital through stock buybacks.
- Redeploying capital through debt repayment.
- Redeploying capital through attractive asset acquisitions.
Challenges Ahead
- Global economic uncertainty.
- Geopolitical uncertainty.
- Farms not long-term strategic fits for the portfolio.
- War in Ukraine.
- Volatility of the capital markets.
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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