# Farmland Partners Inc. (NYSE: FPI) is a Buy

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Last modified: 2021-05-13

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By Shayne Heffernan · 2021-05-13
Tags: Shayne Heffernan on Investments, Stocks, Real Estate, US Stocks, Todays Trade Ideas
Signed: no (published before platform launch).
Nothing in this article is investment advice.

Farmland Partners Inc. (NYSE: FPI) ("FPI" or the "Company") today reported financial results for the quarter ended March 31, 2021.

**Selected Q1 2021 Highlights**

During the quarter ended March 31, 2021, the Company:

- recorded net income of $2.5 million, $5.0 million excluding litigation-related legal expenses1;
- recorded AFFO of -$1.6 million, $0.9 million excluding litigation-related legal expenses;
- completed two acquisitions, for total consideration of $2.9 million;
- completed 14 dispositions, for total consideration of $28.5 million, total gain on sale of $3.4 million;
- reduced debt by $20 million;
- bought back 8,291 shares of Series B preferred stock at a weighted average price of $25.82 for an aggregate purchase price of $0.2 million; and
- grew the off-balance sheet asset management business to ten properties and $21.5 million of AUM.

**CEO Comments**

Paul A. Pittman, Chairman and CEO said: "The demand-driven bull market and farm productivity gains are generating a strong profit outlook for farmers, which, in turn, are generating positive momentum in land values and lease renewal rates.  Q1 2021 was a strong quarter for Farmland Partners, other than for legal expenses related to the on-going Rota Fortunae litigation.  Specialty crop performance is on track to equal or exceed 2020, but it is still early in the season."

**Macro Comments**

- **Commodity Demand:** Soy exports for the 2020/2021 marketing year are forecasted to be the largest ever, with the first six months (August to February) showing an increase of 78% over the prior year. Soybean inventory reached its lowest level since March 2016. Corn exports increased 77% for the first six months of the 2020/2021 marketing year (August to February). Ethanol was down 6% over the same period, but gasoline production is expected to increase relative to prior year as gasoline consumption recovers from COVID-19 related travel restrictions.

**Financial Results**

- For the three months ended March 31, 2021, the Company recorded net income of $2.5 million ($5.0 million excluding litigation-related legal expenses), as compared to net income of $0.4 million for the same period during 2020.
- For the three months ended March 31, 2021, the Company recorded basic net loss to common stockholders of $0.02 per share (basic net income to common stockholders of $0.07 per share excluding litigation-related legal expenses), as compared to basic net loss to common stockholders of $­­­0.09 per share for the same period during 2020.
- For the three months ended March 31, 2021, the Company recorded Adjusted Funds from Operations ("AFFO") of -$1.6 million ($0.9 million excluding litigation-related legal expenses), as compared to AFFO of -$0.4 million for the same period during 2020.
- For the three months ended March 31, 2021, the Company recorded AFFO per fully diluted share of -$0.05 ($0.03 excluding litigation-related legal expenses), as compared to AFFO per fully diluted share of -$0.01 for the same period during 2020.
- For the three months ended March 31, 2021, the Company recorded Adjusted Earnings Before Interest Taxes Depreciation and Amortization for real estate ("Adjusted EBITDAre") of $5.3 million ($7.8 million excluding litigation-related legal expenses), as compared to $7.4 million for the same period during 2020.
- See "Non-GAAP Financial Measures" for complete definitions of AFFO and Adjusted EBITDAre and the financial tables accompanying this press release for reconciliations of net income to AFFO and Adjusted EBITDAre.

**Operating Results            **

- For the three months ended March 31, 2021, the Company recorded total operating revenues of $11.6 million, as compared to $11.7 million for the same period during 2020.
- For the three months ended March 31, 2021, the Company recorded total operating income of $3.1 million ($5.6 million excluding litigation-related legal expenses), as compared to total operating income of $5.3 million for the same period in 2020.
- For the three months ended March 31, 2021, the Company recorded net operating income ("NOI") of $9.6 million, as compared to NOI of $9.8 million for the same period in 2020.
- See "Non-GAAP Financial Measures" for a complete definition of NOI and the financial tables included in this press release for reconciliations of net income to NOI.

**Acquisition and Disposition Activity**

- During the quarter ended March 31, 2021, the Company completed two acquisitions for total consideration of $2.9 million.
- During the quarter ended March 31, 2021, the company the Company completed disposal of 14 properties for total consideration of $28.5 million and total gain on sale was $3.4 million.

**Balance Sheet**

- During the quarter ended March 31, 2021, the Company did not repurchase any shares of common stock.
- During the quarter ended March 31, 2021, the Company repurchased 8,291 shares of Series B preferred stock at a weighted average price of $25.82 for an aggregate purchase price of $0.2 million.
- As of March 31, 2021, and the date of this press release, the Company had 32,319,978 shares of common stock outstanding on a fully diluted basis.
- The Company had total debt outstanding of $488.2 million at March 31, 2021, compared to total debt outstanding of $508.2 million at December 31, 2020.

**Dividend Declarations**

- The Company's Board of Directors declared a quarterly cash dividend of $0.05 per share of common stock and per Class A Common OP unit. The dividends are payable on July 15, 2021, to stockholders and common unit holders of record on July 1, 2021.
- The Company's Board of Directors declared a quarterly cash dividend of $0.3750 per share of Series B Participating Preferred Stock. The dividends are payable on June 30, 2021 to holders of Series B Participating Preferred Stock of record on June 15, 2021.

**Conference Call Information**

The Company has scheduled a conference call on May 13, 2021 at 11:00 a.m. (Eastern Time) to discuss the financial results and provide a company update.  The call can be accessed live over the phone toll-free by dialing 1-866-262-6804 (U.S.), or 1-855-669-9657 (Canada), or 1-412-902-4107 (International).  Participants can reference the Farmland Partners Inc. First Quarter 2021 Earnings Conference Call.  The conference call will also be available via a live listen-only webcast and can be accessed through the Investor Relations section of the Company's website, [www.farmlandpartners.com](https://c212.net/c/link/?t=0&l=en&o=3162497-1&h=3590679196&u=http%3A%2F%2Fwww.farmlandpartners.com%2F&a=www.farmlandpartners.com).  A replay of the conference call will be available beginning shortly after the end of the event until May 27, 2021 at 11:59 p.m. (Eastern Time), by dialing 1-877-344-7529 (U.S.), or 1-855-669-9658 (Canada), or 1-412-317-0088 (International); passcode: 10155371 . A replay of the webcast will also be accessible on the Investor Relations section of the Company's website for a limited time following the event.

A supplemental information package accompanying this release will be made available on the Investor Relations section of the Company's website.

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