Farmland Partners Inc. Q4 FY2025 earnings call

• Paul Pittman noted it was a very good quarter and year, strong AFFO, strong asset sale program, simplified business with sale of Murray Wise, reduced debt and leverage, paid off preferred, increased dividend by 50%. - Luca Fabbri mentioned strong Q4 in strong year, historically strong Q4 revenue due to cash receipt-based streams, strengthened balance sheet by repaying Series A equity via cash instead of common stock conversion, sold brokerage and auction subsidiary MWA to People's Company with continued close working relationship, 2026 outlook strong but cautious at start due to seasonality, expect to continue dispositions for portfolio improvements, especially in California at fair prices, raised dividend by 50% to $0.09 per share per quarter. - Susan Landi walked through financial results, key drivers of variances, capital structure items like undrawn capacity on lines of credit, amended Farmer Mac Facility, format life loans resetting in 2026, outlook for 2026 with net income range $8.8M - $10.9M and AFFO range $14.4M - $16.4M or $0.33 - $0.37 per share, revenue and expense assumptions.

Net income was $32.2 million for 2025 and $21.8 million for the quarter or $0.65 and $0.49 per share available to common stockholders, respectively, lower than same periods in 2024. AFFO was $17.9 million for 2025 and $11.4 million for the quarter or $0.39 and $0.26 per weighted average share, respectively, higher than same periods in 2024. Total operating revenues declined by ~$6 million due to dispositions, partially offset by increase in variable rents and interest income. Total operating expenses, excluding impairments, were down by ~$3.6 million due to lower property operating costs, depreciation, G&A expenses. Impairment of assets increased by $17 million related to certain West Coast properties. Other income was lower due to lower gains on property dispositions but partially offset by reduction in interest expense from debt reduction. Revenue contribution details not explicitly broken down by product segments as per transcript.

• Forecasted net income range for 2026 is $8.8 million to $10.9 million. - Forecasted range of AFFO is $14.4 million to $16.4 million or $0.33 to $0.37 per share. - On revenue side, Fixed Farm, Solar, Wind and Recreation Rent reflects full year impact of 2025 dispositions, lease renewals and variable payments; crop sales and crop insurance expected to decrease from 2025. - On expense side, decrease in property operating expenses and DDA due to 2025 dispositions, G&A decreased due to lower payroll costs from MWA sale and lower expected credit losses on loans; interest expense increased due to 2026 borrowings.

• Forward-looking statements subject to risks and uncertainties difficult to predict and beyond control, can cause actual results to differ materially from expectations. - Risks discussed in press release distributed yesterday and SEC filings.

Q: Maybe looking at the guidance, how much of variable rent change is due to asset sales vs farm revenue look?

A: Luca said a bit of both, with some strong Q4 2025 variable payments and more cautious forecast in 2026 Q4 due to unknown crop yields and pricing; Susan added majority of decrease relates to dispositions.

Q: How much of G&A decline is from Murray Wise, loan portfolio, efficiencies?

A: Paul said large part from Murray Wise employees no longer on payroll, plus other cost reductions, and ongoing run rate for 2026.

Q: Runway for dispositions, California market, other portfolio assets?

A: Paul said everything in portfolio is salable, California market open but pricing not great, will gradually liquidate non-core California assets, continue to whittle down exposure in other states for efficiency, super bullish on Illinois assets.

Q: FTI loans scheduled to mature end of January, repaid or extended?

A: Susan said extended to September.

Q: Demand for loan program?

A: Paul said strong, countercyclical, opportunity exists with struggling farmers, comfortable with collateral, program will be growing or steady state.

Q: Lease transition from fixed to variable, impact on Q4 variable payments?

A: Luca said not very significant, 1-year extension on California farm then disposed of.

Q: Term Loan #1 refinancing, anticipated pricing?

A: Susan said likely reprice at ~5.3% range.

Q: Acquisitions, market pricing attractive?

A: Paul said pricing not down significantly in core Midwest, 2/3 return from appreciation, 1/3 from current yield, attitude is create value for shareholders via dispositions or growth.

Q: Increase in dividend, capital recycling strategy and share repurchases?

A: Paul said share repurchases may decline as stock price appreciates, dividend increase driven by increased AFFO, not by asset sales.

Q: FPI Loan Program accounting and contract terms with renewals?

A: Paul said usually get interest along the way, principal extended, not typically capitalize interest.