Farmland Partners Inc. (NYSE:FPI) Stock to Pay Quarterly Dividend of $0.09

Key Points

• Farmland Partners declared a quarterly dividend of $0.09 per share, payable January 15 to shareholders of record January 4. The annualized dividend is $0.36, representing a 3.6% yield.
• The dividend appears financially stretched: the payout ratio is 225% of current earnings, while analysts expect a 144% payout ratio based on next year’s projected earnings.
• FPI shares opened at $10.12, down 1.9%, after the company reported a quarterly loss of $0.36 per share—well below the $0.01 consensus estimate—despite revenue exceeding expectations.

Farmland Partners Inc. (NYSE:FPI - Get Free Report) announced a quarterly dividend on Tuesday, October 27th. Shareholders of record on Monday, January 4th will be given a dividend of $0.09 per share by the financial services provider on Friday, January 15th. This represents a $0.36 annualized dividend and a yield of 3.6%. The ex-dividend date is Monday, January 4th.

Farmland Partners has raised its dividend payment by an average of 0.2% per year over the last three years. Farmland Partners has a dividend payout ratio of 225.0% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Farmland Partners to earn $0.25 per share next year, which means the company may not be able to cover its $0.36 annual dividend with an expected future payout ratio of 144.0%.

Farmland Partners Stock Down 1.9%

Shares of FPI stock opened at $10.12 on Thursday. Farmland Partners has a 12-month low of $9.21 and a 12-month high of $13.23. The firm has a fifty day moving average of $10.56 and a 200-day moving average of $10.73. The firm has a market capitalization of $441.76 million, a price-to-earnings ratio of 19.85 and a beta of 0.68.

Farmland Partners (NYSE:FPI - Get Free Report) last posted its earnings results on Wednesday, October 28th. The financial services provider reported ($0.36) earnings per share for the quarter, missing the consensus estimate of $0.01 by ($0.37). The business had revenue of $9.78 million for the quarter, compared to the consensus estimate of $5.98 million. Farmland Partners had a return on equity of 5.54% and a net margin of 49.85%. Research analysts expect that Farmland Partners will post 0.23 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in FPI. BlackRock Inc. bought a new stake in shares of Farmland Partners during the 2nd quarter valued at $40,290,000. Deutsche Bank AG bought a new stake in Farmland Partners during the second quarter worth $9,101,000. Man Group plc bought a new stake in Farmland Partners during the second quarter worth $2,756,000. Bank of New York Mellon Corp acquired a new stake in shares of Farmland Partners in the 2nd quarter valued at $2,663,000. Finally, Cauble & Harre Wealth Management Inc. acquired a new stake in shares of Farmland Partners in the 2nd quarter valued at $1,837,000. 58.00% of the stock is currently owned by institutional investors.

About Farmland Partners

Farmland Partners Inc is a real estate investment trust (REIT) that owns and manages agricultural land in the United States. The company leases its farmland to farmers and agricultural operators, who use the properties to grow crops and conduct related farming activities.

Farmland Partners' portfolio is primarily focused on high-quality farmland used to produce major row crops, including corn, soybeans, wheat and cotton, as well as specialty crops in selected markets. Its properties are located across a range of prominent agricultural regions, providing exposure to diverse soil types, growing conditions and crop economies.

Founded in 2013 and headquartered in Denver, Colorado, Farmland Partners became a publicly traded company on the New York Stock Exchange in 2014.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.