Farmland Partners Q1 2026 Earnings Report

Farmland Partners EPS Results

• Actual EPS: $0.01
• Consensus EPS: $0.04
• Beat/Miss: Missed by -$0.03
• One Year Ago EPS: N/A

Farmland Partners Revenue Results

• Actual Revenue: $10.10 million
• Expected Revenue: $5.67 million
• Beat/Miss: Beat by +$4.43 million
• YoY Revenue Growth: N/A

Farmland Partners Announcement Details

• Quarter: Q1 2026
• Date: 4/29/2026
• Time: After Market Closes
• Conference Call Date: Thursday, April 30, 2026
• Conference Call Time: 11:00AM ET

Farmland Partners (NYSE:FPI) Inc is a real estate investment trust (REIT) that acquires and manages high-quality farmland in the United States. The company’s primary business activity is the ownership of agricultural land, which it leases to farmers under various rental arrangements designed to generate stable cash rents and long-term capital appreciation. By focusing on farmland as a real asset, the company seeks to benefit from rising global demand for food, fiber and renewable fuels.

Founded in 2013 and headquartered in Scottsdale, Arizona, Farmland Partners completed its initial public offering in June 2017 and began trading on the New York Stock Exchange under the ticker FPI. Since its inception, the company has assembled a geographically diversified portfolio spanning key agricultural regions. Its holdings extend across multiple states, including major row-crop producers in the Midwest and Southeast.

The company’s portfolio encompasses over 100,000 acres of farmland, with lease structures ranging from fixed cash rents to crop-share and variable leases that align tenant incentives with crop performance. Farmland Partners works closely with local farmers and operators to implement efficient land management practices and to optimize crop selection based on regional soil and climate conditions.

Governed by a board of directors and led by a management team with deep experience in agribusiness and real estate investment, Farmland Partners emphasizes disciplined acquisition criteria, active asset management and sustainable farming practices. The company aims to deliver long-term value for its shareholders through a combination of current income, potential rental growth and farmland appreciation.

Farmland Partners Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Redeemed the Series A preferred units in cash, removing a conversion overhang, and ended Q1 with about $114 million of undrawn credit capacity, which management describes as a very strong liquidity position.
• Negative Sentiment: Updated 2026 AFFO guidance of $13.2M–$15.2M ($0.30–$0.35 per share) was lowered from prior guidance, reflecting higher credit loss provisions and other adjustments.
• Negative Sentiment: Increased the allowance for credit losses on the FPI Loan Program due to borrower-specific credit concerns, which raised operating expenses and prompted conservative reserving.
• Positive Sentiment: Management plans to prioritize deleveraging when roughly $30M from the FPI Loan Program is returned, while remaining opportunistic on share repurchases; the company also sold another California property to reduce regional exposure.

Presentation

[Operator]

Thank you. I would now like to turn the conference over to Luca Fabbri, President and Chief Executive, please go ahead.

[Luca Fabbri, President and Chief Executive at Farmland Partners]

Thank you, Janice. Good morning, everybody, and welcome to Farmland Partners' first quarter 2026 earnings conference call and webcast. We truly appreciate your taking the time to join us for this call because we see them as a very important opportunity to share with you our thinking and our strategy in a format less formal and more interactive than public filings and press releases. I will now turn the call over to our General Counsel, Christine M. Garrison, for some customary preliminary remarks. Christine.

[Christine M. Garrison, General Counsel at Farmland Partners]

Thank you, Luca, and thank you to everyone on the call. The press release announcing our first quarter earnings was distributed after market close yesterday. The supplemental package has been posted to the investor relations section of our website under the subheader Events and Presentations. For those who listen to the recording of this presentation, we remind you that the remarks made herein are as of today, April 30th, and will not be updated subsequent to this call. During this call, we will make forward-looking statements, including statements related to the future performance of our portfolio, our identified and potential acquisitions and dispositions, impact of acquisitions, dispositions and financing activities, business development opportunities, as well as comments on our outlook for our business rents in the broader agricultural markets.

[Christine M. Garrison, General Counsel at Farmland Partners]

We'll also discuss certain non-GAAP financial measures, including net operating income, FFO, adjusted FFO, EBITDAre, and Adjusted EBITDAre. Definitions of these non-GAAP measures, as well as reconciliations to the most comparable GAAP measures, are included in the company's press release announcing first quarter 2026 earnings, which is available on our website, farmlandpartners.com, and is furnished as an exhibit to our current report on Form 8-K, dated April 29th, 2026. Listeners are cautioned that these statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review the risk factors discussed in our press release distributed yesterday and the documents we have filed with or furnished to the SEC.

[Christine M. Garrison, General Counsel at Farmland Partners]

I would now like to turn the call to our Executive Chairman, Paul Pittman. Paul.

[Paul Pittman, Executive Chairman at Farmland Partners]

Thank you, Christine. It was all in all a pretty good quarter. I'm just gonna address a couple of issues in my prepared comments, and then I'll turn it over to Luca. The first issue is we've been getting some questions about what's the impact of the war in Iran on fertilizer, grain prices, farmer outlook, et cetera. Let me kind of hit a couple of key issues, and if anybody has follow-ups, we can deal with it in Q&A. The first is on fertilizer. Most of the U.S. fertilizer does not come from the Middle East or from the Gulf. Generally, it frankly comes from the U.S. and Canada.

[Paul Pittman, Executive Chairman at Farmland Partners]

All in all, the U.S. farmer, while prices may be higher for fertilizer, is sort of unaffected from a supply perspective on fertilizer. I think if this went on for another year, it would have some impact, but largely speaking, I haven't heard any reports about a lack of fertilizer. What I have heard is some people changing crop decisions because cost of fertilizer is an issue, which may lead to slightly less corn being produced as opposed to soybeans in particular. That's really kind of on the fertilizer front. We have seen some grain price increases recently, particularly in wheat. The U.S. is not a huge worldwide producer of wheat compared to some other places in the world.

[Paul Pittman, Executive Chairman at Farmland Partners]

You have seen, wheat is also very fertilizer intensive. You may see less wheat grown or less yield on wheat in other parts of the world because of the limitation on fertilizer production coming out of the Gulf. We've seen some wheat price increases, some corn increases as price increases as well. I think that's at least as much due to drought in the U.S. as it is to the war that's going on in Iran. The drought in the southeastern portion of the U.S., which is a reasonably large wheat producer, is very, very significant. I read this morning it's actually the worst, the worst drought, that may have ever been at this point in the southeast.

[Paul Pittman, Executive Chairman at Farmland Partners]

That'll lead to, you know, probably lead to somewhat, increases in grain prices. The final question we've been getting is about how all that might impact our next cycle of rent negotiations. The real answer is it's really too early to tell. This doesn't move through the, you know, things like the war in Iran does not move through the farm economy overnight. You know, certainly doesn't move through nearly as quickly as the up and down of the public markets. This is gonna be a kinda slow-moving, process. Higher grain prices obviously, help us in our upcoming rent negotiations, which won't even start for another few months. You know, lower grain prices obviously hurt in those negotiations.

[Paul Pittman, Executive Chairman at Farmland Partners]

Just to give context, hurt means we're largely flat and have a hard time getting increases. Good times is when we can get, you know, modest increases in rents. The final issue I wanna address before I turn over to Luca is, we did take some additional loan loss reserves, not because we're, you know, directly concerned that we won't collect, but we are obviously making relatively high interest rate, high risk loans, and we just think it's prudent to continue to make some reserves under the eventuality that, you know, we didn't collect everything. Hopefully, those things get reversed, but we put them in our financials.

[Paul Pittman, Executive Chairman at Farmland Partners]

You know, in an effort to be cautious and conservative, given the risk profile, of our loan program. With that, I'm gonna turn it over to you, Luca, and I'll be back at the Q&A.

[Luca Fabbri, President and Chief Executive at Farmland Partners]

Thank you, Paul. This quarter was very much in line with expectations from an operational standpoint. The largest items of note, we actually already addressed in the prior call, which is the completed redemption of our Series A preferred units. They were a significant overhang on the company in case we had to convert them into common at prices that we consider at a significant discount to our intrinsic value. We had prepared for this event for a long time by shoring up our liquidity reserves, and we were able to satisfy our Series A holders in cash. Despite that, we still have a very strong liquidity position. We have access to about $114 million in untapped liquidity on our lines of credit.

[Luca Fabbri, President and Chief Executive at Farmland Partners]

We from a balance sheet perspective, our company is very, very strong at this point in time. On the portfolio side, we continue to marginally improve the overall quality of our portfolio. We dispose of another California property, which we consider a region, you know, subject to volatility and to risks, and therefore we welcome the reduction to that kind of exposure. Overall, in the global picture, you know, if you set AI aside, this is a time of great uncertainty and volatility and so on and so forth. In the agricultural sector in particular, there is quite a bit of trepidation about what's going to happen on the cost side, as Paul was outlining.

[Luca Fabbri, President and Chief Executive at Farmland Partners]

Overall, farmland as an asset class continues to demonstrate its strength and its resilience, and we remain a very, very strong believer in the quality of the asset class. With that, I will turn the call over to our CFO, Susan Landi, for her overview of the company's financial performance. Susan?

[Susan Landi, CFO at Farmland Partners]

Thank you, Luca. We're gonna cover a few items today, including the summary of the three months ended March 31st, 2026, a review of our capital structure, and updated guidance for 2026. I'll be referring to the supplemental package, which is available in the investor relations section of our website under the subheader Events and Presentations. First, I will share a few financial metrics that appear on page two. For the three months ended March 31st, 2026, net income was $0.6 million, or $0.01 per share available to common stockholders, which was lower than the same period for 2025. AFFO was $2.1 million versus $2.3 million for the same period of 2025, or $0.05 per weighted average share, which was the same as Q1 of 2025.

[Susan Landi, CFO at Farmland Partners]

Page 5 shows a more comprehensive look at the main drivers of the changes year-over-year. On the revenue side, we were positively impacted by higher interest income due to a higher average balance on loans under the FPI Loan Program and financing receivables, an increase in amortization of points, and higher proceeds from oil and gas royalties. These increases were partially offset by lower rental income due to asset dispositions, the absence of auction brokerage and third-party management income due to the sale of MWA in the fourth quarter of 2025. Operating expenses are slightly higher over the prior year due to the increase in the allowance for credit losses related to loans under the FPI Loan Program.

[Susan Landi, CFO at Farmland Partners]

This increase was partially offset by decreases in property operating and depreciation expenses, which are due to asset dispositions and savings on corporate and travel expenses as a result of the sale of MWA. On page 12, there are a few capital structure items to point out. We had undrawn capacity on lines of credit of approximately $114 million at the end of Q1 of 2026. Borrowings during the quarter were primarily used to redeem the remaining Series A preferred units. We had rate resets on three MetLife loans during the quarter. The aggregate amount of these loans was $19.3 million. The weighted average rate on these loans went from about 5.56 to 5.19. The MetLife term loan number seven is scheduled to reprice in June.

[Susan Landi, CFO at Farmland Partners]

Moving on to page 15, you'll see our updated outlook for 2026. The assumptions are listed at the bottom of the page. On the revenue side, changes from the February guidance include management fees and interest income, which is higher due to the amendment and extensions of loans under the FPI loan program. On the expense side, changes from the February guidance include an increase in provision for credit loss allowance due to higher allowance on potential credit losses of loans. The forecasted range of AFFO is $13.2 million-$15.2 million, or $0.30-$0.35 per share, which is a decrease from the prior quarter on both the high and low end of the range. This summarizes where we stand today. We will keep you updated as we progress through the year. This wraps up our comments this morning.

[Susan Landi, CFO at Farmland Partners]

Thank you all for participating. Operator, you can now begin the Q&A session.

[Operator]

At this time, I would like to remind everyone in order to ask question, press star then the one on your telephone keypad. We will pause for just a moment to compile a Q&A roster. Your first question is coming from the line of John Massocca with B. Riley Securities. Please go ahead.

[John Massocca, Senior Research Analyst at B. Riley Securities]

Good morning.

[Paul Pittman, Executive Chairman at Farmland Partners]

Good morning.

[Luca Fabbri, President and Chief Executive at Farmland Partners]

Morning, John.

[John Massocca, Senior Research Analyst at B. Riley Securities]

Let me just kind of Oh,

[Luca Fabbri, President and Chief Executive at Farmland Partners]

Go ahead.

[John Massocca, Senior Research Analyst at B. Riley Securities]

Maybe just to clarify on the loan reserve increase, is that being tied to the performance of the borrower? I mean, is there something specific you're seeing there? It just seems like, you know, it seems like it's an older loan, right? It's not a new loan necessarily creating more reserves. Just kind of curious why the change, if it kind of seemed like there wasn't a major change in the outlook for kind of farm valuations.

[Paul Pittman, Executive Chairman at Farmland Partners]

Yeah. We make loans to a variety of different folks. One of the lenders, one of the borrowers continues to have, you know, sort of some critical challenges in their overall business, and, you know, have, you know, negative news cycle, if you will. While we may feel secure about our specific loans, that negative news cycle always makes us nervous, which is really what's kind of driving the, you know, the reserves. When things get messy for a borrower with other lenders, even though it may not directly affect our collateral position, it just makes the whole, you know, any situation more complicated, and, you know, in a non sort of defined way increases risk. That's what's driving those concerns.

[John Massocca, Senior Research Analyst at B. Riley Securities]

Are those issues caused at all about a certain crop type having headwinds, or is it more just very specific to the borrower themselves?

[Paul Pittman, Executive Chairman at Farmland Partners]

No, it's very, it's very specific to that borrower. It's not a crop type issue.

[John Massocca, Senior Research Analyst at B. Riley Securities]

Okay. In terms of the size of the outstanding Loan Program, I mean, is any of that kind of maintained size and kind of growing interest income tied to extensions on that with that particular borrower, or is it just kind of more broadly either extensions or new loans within the Program?

[Paul Pittman, Executive Chairman at Farmland Partners]

Some of the some of the extensions and some of the increased interest rates are related to that buyer or that borrower.

[John Massocca, Senior Research Analyst at B. Riley Securities]

Shifting gears maybe a little bit, has the conflict in the Middle East and maybe some of the uncertainty around prices impacted the disposition market, for transactions to the extent you're still really looking for more kind of sale opportunities within your portfolio, within your non-core portfolio?

[Paul Pittman, Executive Chairman at Farmland Partners]

No, no. What's going on in the Middle East doesn't have any kind of sort of direct line of sight impact on the transaction market for farmland. What does have an impact is the general economy/general ag economy. You know, we're not in any real different situation than we were before hostilities in Iran started. We were in a somewhat challenging farm economy based on crop price versus cost of operation. That makes farmers less aggressive bidders on properties. As we always talk about, the farmers are the most aggressive bidders and really sort of set the price for properties. This is, again, this is not, you know, you don't have a pendulum here that swings very far.

[Paul Pittman, Executive Chairman at Farmland Partners]

You know, good times are, okay, 5%, if you're really lucky, 7% or 8% increases in land values on a per annual basis, bad times are, you know, only up 1% or 2%, or maybe flat, or maybe even down 1% or 2%. You know, I think it's just incredibly important to always recognize that we're in a industry with a very slow, steady upward march in asset values due to scarcity and fundamentally due to food demand. Those are not things that, you know, all of us involved in public markets have a hard time grasping this. You know, you just don't get the kind of volatility swings we're used to seeing in asset values or crop price or anything else.

[Paul Pittman, Executive Chairman at Farmland Partners]

It's very glacial in terms of, you know, with a pretty strong upward trend. It doesn't, it just doesn't move quickly no matter what.

[John Massocca, Senior Research Analyst at B. Riley Securities]

Okay. You talked a little bit about kind of the impact or non-impact of fertilizer prices. Just as someone who's much closer to kind of the farm economy than, you know, most other people on the call, how impactful has the increase in diesel prices been, and is that something that can maybe be even more meaningful for farmers versus fertilizer or something where it's just a relatively small portion of the overall cost of running the farm?

[Paul Pittman, Executive Chairman at Farmland Partners]

It's a relatively small portion is the answer. A couple of things to grasp here. Number one, most farmers, most farmers of scale do some level of hedging or pre-buying of their diesel fuel. You know, it's quite common for a farmer to have, you know, 10,000 gallons or multiple 10,000 gallon tanks of diesel on their farm. And they probably bought that, you know, sometime last winter, well before the Iranian hostilities began. You know, not a huge impact, but obviously as they look forward on their budgets, you know, they'll run out of that fuel sometime this summer, have to replace it. You know, when they start trucking this fall, you know, diesel will affect trucking costs.

[Paul Pittman, Executive Chairman at Farmland Partners]

You know, it's certainly not positive for their P&L, but again, it just doesn't come through very quickly because of the amount of kind of pre-bought capacity on diesel. You know, round numbers, diesel might be in the neighborhood of 10% of a farmer's crop budget, maybe a little less, you know. It's just not, it's not a huge impact overall. Probably less impactful than fertilizer cost on the, you know, the corn and wheat crops. Hope that helps.

[John Massocca, Senior Research Analyst at B. Riley Securities]

Yeah. I appreciate all the color. I'll cede the floor. Thank you very much.

[Operator]

There's no other questions in queue at this time. Oh, there's one that just came in. It's coming from the line of Susie Hyde with Raymond James. Please go ahead.

[Susie Hyde, Equity Research Analyst at Raymond James]

Hey, guys. Sorry, just sneak this one in. Just a quick follow-up on the FPI Loan Program. It looks you have probably somewhere around $30 million coming in later this year. Are there any kind of priorities for capital allocation we should be thinking about, share repurchases, deleveraging the balance sheet a little bit further, extending new loans? Any, any kind of color you can provide would be very helpful. Thank you.

[Paul Pittman, Executive Chairman at Farmland Partners]

Yeah. I would say that most of that capital when it gets returned to us, is likely to go for continued deleveraging of the balance sheet. You know, I think our stock is still a relative bargain, although not as big a bargain as it has been in times past. You know, you could see us buy stock back depending on stock price, but more likely deleveraging would be my current thinking. Luca or Susan, if you have a point of view on this, feel free to express it, even if it's frankly different than mine.

[Luca Fabbri, President and Chief Executive at Farmland Partners]

No. The, as we've discussed, that's our priority right now on capital allocation is frankly delevering. We remain, as Paul mentioned, we remain very, very opportunistic on the stock price in watching it and planning, implementing potential stock repurchases.

[Susie Hyde, Equity Research Analyst at Raymond James]

Got it. Thank you. That's all I had.

[Operator]

Your next question is coming from the line of John Massocca with B. Riley Securities. Please go ahead.

[John Massocca, Senior Research Analyst at B. Riley Securities]

Yeah. Just a quick follow-up one. Any kind of outlook currently for what you would expect the rate to be on the repricing of the term loan number seven in June?

[Paul Pittman, Executive Chairman at Farmland Partners]

I'm gonna turn that over to Luca or Susan, if you wanna make a comment there.

[Susan Landi, CFO at Farmland Partners]

At this point, we're expecting it to be fairly in line with what we did with the two that occurred in Q1.

[Luca Fabbri, President and Chief Executive at Farmland Partners]

Yeah. I would expect to add on to that, expect the spread to be consistent, Of course your guess on rates is as good as mine.

[John Massocca, Senior Research Analyst at B. Riley Securities]

All right. Does that lock in in June, or is it locking in advance of the actual change?

[Susan Landi, CFO at Farmland Partners]

It locks just before.

[Luca Fabbri, President and Chief Executive at Farmland Partners]

Yeah. It will be-

[John Massocca, Senior Research Analyst at B. Riley Securities]

Okay

[Luca Fabbri, President and Chief Executive at Farmland Partners]

late May, early June.

[John Massocca, Senior Research Analyst at B. Riley Securities]

Okay, perfect. Thank you very much. That's it for me.

[Operator]

There's no questions in queue at this time. That concludes our Q&A session. I will now turn the conference back over to Luca Fabbri for closing remarks. Please go ahead.

[Luca Fabbri, President and Chief Executive at Farmland Partners]

Thanks, Janice. We appreciate your interest in our company and look forward to updating you on our activities and results in the coming quarters. Have a great day, everybody.

[Operator]

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Participants

Executives

• Christine M. Garrison, General Counsel
• Luca Fabbri, President and Chief Executive
• Paul Pittman, Executive Chairman
• Susan Landi, CFO

Analysts

• John Massocca, Senior Research Analyst at B. Riley Securities
• Susie Hyde, Equity Research Analyst at Raymond James