NYSE$FPI

Farmland Partners Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong value appreciation through asset sales and increased net income.

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.

Headline financials

Total Revenue

$11.6M

Previous: $12.4M-6.3%
EPS (adj)

-$0.02

Previous: $0.03-166.7%
Capital Expenditures

-$11.6M

Previous: -$30.8M+62.4%
Free Cash Flow

-$3.88M

Previous: -$27.9M+86.1%
Net Income

$7.71M

Previous: $2.92M+164.4%
Operating Income

$2.76M

Previous: $3.46M-20.2%
Gross Profit

$11.6M

Previous: $12.4M-6.3%
Cash & Equivalents

$9.06M

Previous: $19.7M-54.0%
Total Assets

$1.13B

Previous: $1.13B+0.0%
Stock-Based Comp

$473K

Previous: $185K+155.7%

Revenue & EPS history

Farmland Partners · Revenue · Quarterly

$11.6M

Q2 2023-6.3%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Farmland Partners · $10.8M total across 3 segments · Q2 2023

  • Rental Income
    $9.39M+2.1%
  • Other Revenue
    $849K-29.4%
  • Crop Sales
    $515K-55.2%

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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Reflecting industry-wide trends.
  • Despite the challenges of 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.2%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.5%

Avg return

30 days after

59%

29 / 49 earnings

Positive

+13.6%

Q4 2018

Best reaction

-13.4%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%-7.9%-10.5%
Q4 2025+2.8%+8.0%-7.2%
Q3 2025+2.1%-2.1%-2.6%
Q2 2025+0.8%+1.2%+1.5%
Q1 2025-0.3%+3.8%+15.3%
Q4 2024+7.5%+0.6%-5.9%
Q3 2024+6.5%+7.7%+15.5%
Q2 2024-8.2%-10.8%-11.6%
Q1 2024+3.2%+3.9%-1.0%
Q4 2023+7.6%+2.8%+1.2%
Q3 2023-1.7%-3.6%+18.9%
Q2 2023-11.0%-12.6%-16.7%
Q1 2023+4.6%+5.5%+16.4%
Q4 2022-13.4%-13.9%-17.9%
Q3 2022+5.4%+5.9%+0.4%
Q2 2022-0.3%+2.7%+3.0%
Q1 2022+9.7%+4.6%+4.3%
Q4 2021+4.4%+3.2%+15.9%
Q3 2021-4.4%-6.5%-0.9%
Q2 2021-0.6%-1.4%+1.5%
Q1 2021+2.8%+0.2%-1.4%
Q4 2020-12.9%-13.4%-0.8%
Q3 2020+9.8%+16.5%+27.0%
Q2 2020-3.6%-2.2%-5.3%
Q1 2020+0.2%-7.3%+11.9%
Q4 2019+11.9%+13.3%+17.5%
Q3 2019-2.7%-2.8%-2.7%
Q2 2019+5.6%+7.9%+9.9%
Q1 2019-1.2%-0.6%-2.9%
Q4 2018+13.6%+14.5%+25.7%
Q3 2018+0.7%+6.9%-15.4%
Q2 2018-5.7%-3.8%-2.1%
Q1 2018+5.2%+0.9%+13.9%
Q4 2017+6.1%+7.4%+11.0%
Q3 2017+4.1%+4.9%+3.1%
Q2 2017+6.7%+4.9%-4.7%
Q1 2017-1.4%-4.7%-11.4%
Q4 2016+4.6%+3.8%-0.6%
Q3 2016-2.4%+0.4%+7.1%
Q2 2016+0.0%-3.1%-1.1%
Q1 2016-0.3%
Q4 2015-0.4%
Q3 2015-1.2%
Q2 2015+0.6%
Q1 2015+2.2%
Q4 2014+0.6%
Q3 2014+1.3%
Q2 2014-1.3%
Q1 2014+2.3%
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012

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