Farmland Partners Inc. Q3 FY2025 earnings call

• Paul noted a strong Q3 AFFO performance, mentioned China agriculture commodity trade deal's potential impact on US farmers and land values, and cautioned about next year's AFFO being more modest as it's based on onetime events. - Luca highlighted sale of Murray Wise Associates as a good outcome for shareholders and employees, exchange of Series A preferred units showing asset appreciation, and plan to issue special dividend between $0.18 and $0.22 per share in January 2026. - Susan provided overview of financial performance, capital structure, revenue categories, and updated 2025 outlook including revenue and expense changes and AFFO forecast.

1. Sale of brokerage and third-party farm management subsidiary: Sold Murray Wise Associates, which is a good outcome for shareholders in terms of price and simplifies operations. Employees also benefit with a platform for growth while maintaining access. 2. Exchange of Series A preferred units: Exchanged $31 million worth of Series A preferred units for properties in Illinois, with properties appreciated by about 56% compared to 10 years ago. 3. Financial performance: - 3 months ended September 30, 2025: Net income was $0.5 million or $0 per share available to common shareholders (lower than same period 2024 due to deferred gains from 2023 property dispositions vs current period loss). AFFO was $2.9 million or $0.07 per weighted average share (higher than same period 2024 due to lower interest expense, lower property operating costs, and increased interest income). - 9 months ended September 30, 2025: Net income was $10.4 million or $0.18 per share available to common shareholders (higher than same period 2024 due to net gains on dispositions, significant debt reductions, and increased interest income). AFFO was $6.5 million or $0.14 per weighted average share (higher than same period 2024 due to lower property taxes, lower general and administrative expenses, and lower interest expense). 4. Revenue categories: - Fixed farm rent: Decreased as expected due to dispositions in Q4 2024 and 2025. - Solar, wind and recreation: Increased primarily due to proceeds from a solar revenue sharing arrangement in Q1 2025, but partially offset by dispositions. - Management fees and interest income: Increased primarily due to increase in loan issuances under FPI loan program. - Direct ops (crop sales, crop insurance and cost of goods sold): Crop sales increased due to higher prices and yield on citrus and avocados and earlier sales in 2025; cost of goods sold increased due to higher maintenance costs, partially offset by lower impairment on inventory.

• Revenue: Increase in management fees and interest income due to higher loan balance under FPI loan program; increase in variable payments, crop sales and crop insurance due to updated outlook on properties; decrease in other items due to less auction and brokerage revenues from sale of Murray Wise & Associates. - Expense: Increase in impairment related to certain properties on West Coast due to updated market information; decrease in property operating and depreciation expenses related to property dispositions. - Forecasted range of AFFO: $14.5 million to $16.6 million or $0.32 to $0.36 per share, an increase from prior quarter on both high and low end.

Forward-looking statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond control, which can cause actual results to differ materially from current expectations. Listeners are advised to review risk factors discussed in press release and SEC filings.

Q: When does the '23 farm sale and the retirement of the preferred units close?

A: That transaction will close December 10.

Q: What are you guys planning on doing with the MetLife Term Loan that matures in March?

A: Planning to renew it probably with MetLife themselves or with one of our other lenders.

Q: Can you give us some color on how much the sale of a walnut property impacted crop sales revenue and the cost of goods this quarter?

A: Recognized about $0.2 million on the sale of the Blue Heron walnut property in California, which is the accelerated portion.

Q: Looking at the guidance, one of the main increases in revenue was related to management fees and interest income. Can you give color on loan pipeline?

A: Somebody came to us and said they'd like to continue to extend this loan subject to strong security position and our comfort with the loan, and we're almost always willing to do that as we are a high-cost lender.

Q: In the past, you mentioned that the long-term average rate increase is somewhere around 3% to 4%. How might that average skew going forward as you pare down the portfolio?

A: It will stay consistent as the portfolio gets more weighted to the Midwest, which sticks closer to those kinds of averages.

Q: Do you have any updates on the renewable progress for this year?

A: Renewals are largely done by now as prepping soils for next year's crop already, renewals in row crop region are likely to be flat with last year, and negotiation of rents in tough economic cycle for farmers is 1-year extensions now.