DENVER, July 19, 2017 /PRNewswire/ -- Farmland
Partners Inc. (NYSE: FPI) (the "Company") today reported financial
results for the quarter ended June 30,
2017.
Second Quarter Highlights
- Reported operating revenues of $11.5
million for the quarter ended June
30, 2017, a 90% increase over the same period in 2016
- Reported net income of $2.0
million for the quarter ended June
30, 2017, a 53% increase over the same period in 2016
- Reported basic net income available to common stockholders of
$0.02 per share for the quarter ended
June 30, 2017, as compared to
$0.00 per share for the same period
in 2016
- Reported AFFO per share of $0.10
for the quarter ended June 30, 2017,
a 51% increase over the same period in 2016
- Reported Adjusted EBITDA of $8.1
million for the quarter ended June
30, 2017, a 100% increase over the same period in 2016
- Declared a dividend of $0.1275
per share ($0.51 annualized) for the
third quarter of 2017 – a 5.86% distribution rate based on the
Company's closing stock price on July 19,
2017
"This was a quarter marked by healthy year-over-year AFFO
per share growth. Our second quarter 2017 results are more
indicative of our ongoing operations as compared to the first
quarter of 2017, which included the closing of the AFCO merger and
related integration activities during the quarter," said
Paul Pittman, CEO of the Company.
"We are maintaining our prior full year 2017 AFFO per share
guidance. We expect to recognize the majority of our participating
revenue, with a positive impact on AFFO, in the second half of the
year."
Third Quarter 2017 Dividend Declaration
The Company announced that its Board of Directors has approved a
quarterly cash dividend of $0.1275
per share to be paid on October 13,
2017 to stockholders of record at the close of business on
October 2, 2017. The annualized
dividend of $0.51 per share
represents an annual distribution rate of 5.86% based on the
Company's closing stock price on July 19,
2017.
Acquisition Activity
During the six months ended June 30,
2017, the Company completed 16 acquisitions, including its
merger with American Farmland Company ("AFCO"), in Illinois, South
Carolina, South Dakota,
Arkansas, Michigan, Georgia, Kansas, California, Colorado, Florida and Alabama. Consideration totaled $373.5 million and was comprised of cash, shares
of common stock and units in the Company's operating
partnership.
Operating
Results
The Company owns or has under contract over 154,000 acres in
Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North
Carolina, South Carolina,
South Dakota, Texas and Virginia.
The Company recorded total operating revenues of $11.5 million and net operating income of
$10.3 million for the three months
ended June 30, 2017, as compared to
total operating revenues of $6.0
million and net operating income of $5.5 million for the same period in 2016. The
Company recorded net income of $2.0
million and basic net income available to common
stockholders of $0.02 per share for
the three months ended June 30, 2017,
as compared to net income of $1.3
million and basic net income available to common
stockholders of $0.00 per share for
the same period in 2016.
The Company recorded total operating revenues of $18.6 million and net operating income of
$15.6 million for the six months
ended June 30, 2017, as compared to
total operating revenues of $10.7
million and net operating income of $9.7 million for the same period in 2016. The
Company recorded net income of approximately $19,000 and basic net loss available to common
stockholders of $0.06 per share for
the six months ended June 30, 2017,
as compared to net loss of $0.6
million and basic net loss available to common stockholders
of $0.15 per share for the same
period in 2016.
See "Non-GAAP Financial Measures" for a complete definition of
net operating income and the financial table accompanying this
press release for reconciliations of total operating revenues to
net operating income.
Adjusted Funds from Operations and Adjusted EBITDA
Adjusted Funds from Operations ("AFFO") was $3.7 million for the three months ended
June 30, 2017, as compared to
$1.2 million for the three months
ended June 30, 2016, and $4.1 million for the six months ended
June 30, 2017, as compared to
$1.9 million for the six months ended
June 30, 2016. AFFO per fully
diluted share was $0.10 for the three
months ended June 30, 2017 as
compared to $0.06 for the three
months ended June 30, 2016, and
$0.11 for the six months ended
June 30, 2017 as compared to
$0.11 for the six months ended
June 30, 2016.
Adjusted EBITDA was $8.1 million
for the three months ended June 30,
2017, as compared to $4.0
million for the three months ended June 30, 2016, and $12.0
million for the six months ended June
30, 2017, as compared to $6.6
million for the six months ended June
30, 2016.
See "Non-GAAP Financial Measures" for complete definitions of
AFFO and Adjusted EBITDA and the financial tables accompanying this
press release for reconciliations of net income to AFFO and
Adjusted EBITDA.
Conference Call Information
The Company has scheduled a conference call on Thursday, July 20, 2017 at 11:00 a.m. (Eastern Time) to discuss its
financial results for the second quarter ended June 30, 2017 and provide a company update. The
conference call can be accessed live over the phone toll-free by
dialing (866) 262-6804, or for international callers by dialing
(412) 902-4107. Participants can reference the Farmland
Partners Inc. Second Quarter 2017 Earnings 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. A replay of the conference call
will be available beginning July 20,
2017 at 1:00 p.m. (Eastern
Time) until August 3, 2017 at
11:59 p.m. (Eastern Time), by dialing
(877) 344-7529 (U.S.) or (412) 317-0088 (International); passcode:
10110729. A replay of the webcast will also be accessible on the
Investor Relations website for a limited time following the
event.
About Farmland Partners Inc.
Farmland Partners Inc. is an internally managed real estate
company that owns and seeks to acquire high-quality North American
farmland and makes loans to farmers secured by farm real estate. As
of the date of this release, the Company owns over 154,000 acres in
Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North
Carolina, South Carolina,
South Dakota, Texas and Virginia. The Company elected to be taxed as a
real estate investment trust, or REIT, for U.S. federal income tax
purposes, commencing with the taxable year ended December 31, 2014.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the federal securities laws, including, without
limitation, statements with respect to proposed and pending
acquisitions, financing activities, crop yields and prices and 2017
annual rents. Forward-looking statements generally can be
identified by the use of forward-looking terminology such as "may,"
"should," "could," "would," "predicts," "potential," "continue,"
"expects," "anticipates," "future," "intends," "plans," "believes,"
"estimates" or similar expressions or their negatives, as well as
statements in future tense. Although the Company believes that the
expectations reflected in such forward-looking statements are based
upon reasonable assumptions, beliefs and expectations, such
forward-looking statements are not predictions of future events or
guarantees of future performance and our actual results could
differ materially from those set forth in the forward-looking
statements. Some factors that might cause such a difference include
the following: general volatility of the capital markets and the
market price of the Company's common stock, changes in the
Company's business strategy, availability, terms and deployment of
capital, the Company's ability to refinance existing indebtedness
at or prior to maturity on favorable terms, or at all, availability
of qualified personnel, changes in the Company's industry, interest
rates or the general economy, adverse developments related to crop
yields or crop prices, the degree and nature of the Company's
competition, the timing, price or amount of repurchases, if any,
under the Company's share repurchase program, the ability to
consummate acquisitions under contract and the other factors
described in the section entitled "Risk Factors" in our Annual
Report on Form 10-K for the year ended December 31, 2016, and our other filings with the
Securities and Exchange Commission. Any forward-looking
information presented herein is made only as of the date of this
press release, and we do not undertake any obligation to update or
revise any forward-looking information to reflect changes in
assumptions, the occurrence of unanticipated events, or
otherwise.
Farmland Partners
Inc.
Consolidated Balance
Sheets
As of June 30, 2017
and December 31, 2016
(Unaudited)
|
|
($ in
thousands)
|
|
June 30,
|
|
December 31,
|
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
|
|
|
Land, at
cost
|
|
$
|
834,953
|
|
$
|
551,392
|
Grain
facilities
|
|
|
8,489
|
|
|
6,856
|
Groundwater
|
|
|
12,072
|
|
|
11,933
|
Irrigation
improvements
|
|
|
46,011
|
|
|
15,988
|
Drainage
improvements
|
|
|
7,740
|
|
|
4,757
|
Permanent
plantings
|
|
|
51,663
|
|
|
1,845
|
Other
|
|
|
6,608
|
|
|
2,901
|
Construction in
progress
|
|
|
9,357
|
|
|
1,615
|
Real estate, at
cost
|
|
|
976,893
|
|
|
597,287
|
Less accumulated
depreciation
|
|
|
(6,419)
|
|
|
(3,224)
|
Total real estate,
net
|
|
|
970,474
|
|
|
594,063
|
Deposits
|
|
|
99
|
|
|
5,721
|
Cash
|
|
|
29,422
|
|
|
47,166
|
Notes and interest
receivable, net
|
|
|
5,960
|
|
|
2,843
|
Deferred offering
costs
|
|
|
326
|
|
|
216
|
Deferred financing
fees, net
|
|
|
391
|
|
|
—
|
Accounts receivable,
net
|
|
|
3,293
|
|
|
4,181
|
Inventory
|
|
|
75
|
|
|
283
|
Prepaid and other
assets
|
|
|
2,979
|
|
|
1,056
|
TOTAL
ASSETS
|
|
$
|
1,013,019
|
|
$
|
655,529
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Mortgage notes, line
of credit and bonds payable, net
|
|
$
|
485,400
|
|
$
|
308,779
|
Dividends and
distributions payable
|
|
|
4,998
|
|
|
2,938
|
Accrued
interest
|
|
|
3,079
|
|
|
1,538
|
Accrued property
taxes
|
|
|
1,574
|
|
|
1,225
|
Deferred
revenue
|
|
|
9,328
|
|
|
982
|
Accrued
expenses
|
|
|
3,823
|
|
|
4,558
|
Total
liabilities
|
|
|
508,202
|
|
|
320,020
|
|
|
|
|
|
|
|
Redeemable
non-controlling interests in operating partnership, preferred
units
|
|
|
118,755
|
|
|
119,915
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Common stock, $0.01
par value, 500,000,000 shares authorized; 32,829,338 shares issued
and outstanding at June 30, 2017, and 17,351,446 shares issued
and outstanding at December 31, 2016
|
|
|
324
|
|
|
172
|
Additional paid in
capital
|
|
|
342,891
|
|
|
172,100
|
Retained
earnings
|
|
|
2,408
|
|
|
4,103
|
Cumulative
dividends
|
|
|
(22,796)
|
|
|
(14,473)
|
Non-controlling
interests in operating partnership
|
|
|
63,235
|
|
|
53,692
|
Total
equity
|
|
|
386,062
|
|
|
215,594
|
|
|
|
|
|
|
|
TOTAL LIABILITIES,
REDEEMABLE NON-CONTROLLING INTERESTS IN OPERATING PARTNERSHIP AND
EQUITY
|
|
$
|
1,013,019
|
|
$
|
655,529
|
Farmland Partners
Inc.
Consolidated
Statements of Operations
For the three and six
months ended June 30, 2017 and 2016
(Unaudited)
|
|
($ in thousands,
except per share amounts)
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
OPERATING
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
income
|
|
$
|
10,471
|
|
$
|
5,881
|
|
$
|
17,274
|
|
$
|
10,298
|
Tenant
reimbursements
|
|
|
652
|
|
|
95
|
|
|
756
|
|
|
164
|
Other
revenue
|
|
|
337
|
|
|
55
|
|
|
579
|
|
|
261
|
Total operating
revenues
|
|
|
11,460
|
|
|
6,031
|
|
|
18,609
|
|
|
10,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
depletion
|
|
|
2,056
|
|
|
365
|
|
|
3,544
|
|
|
683
|
Property operating
expenses
|
|
|
1,196
|
|
|
541
|
|
|
2,999
|
|
|
981
|
Acquisition and due
diligence costs
|
|
|
183
|
|
|
48
|
|
|
698
|
|
|
105
|
General and
administrative expenses
|
|
|
2,052
|
|
|
1,657
|
|
|
4,133
|
|
|
3,183
|
Legal and
accounting
|
|
|
302
|
|
|
186
|
|
|
701
|
|
|
552
|
Other operating
expenses
|
|
|
120
|
|
|
—
|
|
|
276
|
|
|
89
|
Total operating
expenses
|
|
|
5,909
|
|
|
2,797
|
|
|
12,351
|
|
|
5,593
|
OPERATING
INCOME
|
|
|
5,551
|
|
|
3,234
|
|
|
6,258
|
|
|
5,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (INCOME)
EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
(16)
|
|
|
(33)
|
|
|
(22)
|
|
|
(62)
|
Loss on sale of
assets
|
|
|
92
|
|
|
—
|
|
|
92
|
|
|
—
|
Interest
expense
|
|
|
3,454
|
|
|
1,950
|
|
|
6,169
|
|
|
5,804
|
Total other
expense
|
|
|
3,530
|
|
|
1,917
|
|
|
6,239
|
|
|
5,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
|
2,021
|
|
|
1,317
|
|
|
19
|
|
|
(612)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (income) loss
attributable to non-controlling interests in operating
partnership
|
|
|
(334)
|
|
|
(408)
|
|
|
41
|
|
|
67
|
Net (income) loss
attributable to redeemable non-controlling interests in
operating partnership
|
|
|
—
|
|
|
(37)
|
|
|
—
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to the Company
|
|
|
1,687
|
|
|
872
|
|
|
60
|
|
|
(481)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonforfeitable
distributions allocated to unvested restricted
shares
|
|
|
(37)
|
|
|
(23)
|
|
|
(80)
|
|
|
(53)
|
Distributions on
redeemable non-controlling interests in operating partnership,
common units
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(113)
|
Distributions on
redeemable non-controlling interests in operating partnership,
preferred units
|
|
|
(878)
|
|
|
(887)
|
|
|
(1,755)
|
|
|
(1,170)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common stockholders of Farmland Partners
Inc.
|
|
$
|
772
|
|
$
|
(38)
|
|
$
|
(1,775)
|
|
$
|
(1,817)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted per
common share data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) available to common stockholders
|
|
$
|
0.02
|
|
$
|
0.00
|
|
$
|
(0.06)
|
|
$
|
(0.15)
|
Diluted net income
(loss) available to common stockholders
|
|
$
|
0.02
|
|
$
|
0.00
|
|
$
|
(0.06)
|
|
$
|
(0.15)
|
Basic weighted
average common shares outstanding
|
|
|
32,457
|
|
|
12,452
|
|
|
29,594
|
|
|
12,146
|
Diluted weighted
average common shares outstanding
|
|
|
32,457
|
|
|
12,452
|
|
|
29,594
|
|
|
12,146
|
Dividends declared
per common share
|
|
$
|
0.1275
|
|
$
|
0.1275
|
|
$
|
0.2550
|
|
$
|
0.2550
|
Farmland Partners
Inc.
Reconciliation of
Non-GAAP Measures
For the three and six
months ended June 30, 2017 and 2016
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June
30,
|
|
For the six months ended June
30,
|
(in thousands,
except per share amounts)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Total operating
revenues
|
|
$
|
11,460
|
|
$
|
6,031
|
|
$
|
18,609
|
|
$
|
10,723
|
Property operating
expenses
|
|
|
1,196
|
|
|
541
|
|
|
2,999
|
|
|
981
|
Net operating
income
|
|
|
10,264
|
|
|
5,490
|
|
|
15,610
|
|
|
9,742
|
|
|
For the three months ended
June 30,
|
|
For the six months ended
June 30,
|
(in thousands,
except per share amounts)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income
(loss)
|
|
$
|
2,021
|
|
$
|
1,317
|
|
$
|
19
|
|
$
|
(612)
|
Depreciation and
depletion
|
|
|
2,056
|
|
|
365
|
|
|
3,544
|
|
|
683
|
FFO
|
|
|
4,077
|
|
|
1,682
|
|
|
3,563
|
|
|
71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock based
compensation
|
|
|
360
|
|
|
314
|
|
|
788
|
|
|
556
|
Indirect equity
offering costs
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
48
|
Real estate related
acquisition and due diligence costs
|
|
|
183
|
|
|
66
|
|
|
1,510
|
|
|
2,437
|
Distributions on
Preferred units
|
|
|
(877)
|
|
|
(887)
|
|
|
(1,755)
|
|
|
(1,170)
|
AFFO
|
|
$
|
3,743
|
|
$
|
1,199
|
|
$
|
4,106
|
|
$
|
1,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per diluted
weighted average share data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO weighted average
common shares
|
|
|
39,166
|
|
|
18,991
|
|
|
36,187
|
|
|
18,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share available to common stockholders
|
|
$
|
0.02
|
|
$
|
0.00
|
|
$
|
(0.06)
|
|
$
|
(0.15)
|
Income available to
redeemable non-controlling interest and non-controlling interest in
operating partnership
|
|
|
0.04
|
|
|
0.07
|
|
|
0.06
|
|
|
0.11
|
Depreciation and
depletion
|
|
|
0.05
|
|
|
0.02
|
|
|
0.10
|
|
|
0.04
|
Stock based
compensation
|
|
|
0.01
|
|
|
0.02
|
|
|
0.02
|
|
|
0.03
|
Real estate related
acquisition and due diligence costs
|
|
|
0.00
|
|
|
0.00
|
|
|
0.04
|
|
|
0.14
|
Distributions on
Preferred units
|
|
|
(0.02)
|
|
|
(0.05)
|
|
|
(0.05)
|
|
|
(0.06)
|
AFFO per diluted
weighted average share
|
|
$
|
0.10
|
|
$
|
0.06
|
|
$
|
0.11
|
|
$
|
0.11
|
|
|
For the three months
ended
|
|
For the six months
ended
|
|
|
June 30,
|
|
June 30,
|
(in
thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income
(loss)
|
|
$
|
2,021
|
|
$
|
1,317
|
|
$
|
19
|
|
$
|
(612)
|
Interest
expense
|
|
|
3,454
|
|
|
1,950
|
|
|
6,169
|
|
|
5,804
|
Depreciation and
depletion
|
|
|
2,056
|
|
|
365
|
|
|
3,544
|
|
|
683
|
EBITDA
|
|
$
|
7,531
|
|
$
|
3,632
|
|
$
|
9,732
|
|
$
|
5,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
360
|
|
|
314
|
|
|
788
|
|
|
556
|
Indirect equity
offering costs
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
48
|
Real estate related
acquisition and due diligence costs
|
|
|
183
|
|
|
66
|
|
|
1,510
|
|
|
143
|
Adjusted
EBITDA
|
|
$
|
8,074
|
|
$
|
4,036
|
|
$
|
12,030
|
|
$
|
6,622
|
Non-GAAP Financial Measures
The Company considers the following non-GAAP measures as useful
to investors as key supplemental measures of its performance: NOI,
FFO, AFFO, EBITDA and Adjusted EBITDA. These non-GAAP
financial measures should be considered along with, but not as
alternatives to, net income or loss as a measure of the Company's
operating performance. NOI, FFO, AFFO, EBITDA and Adjusted
EBITDA, as calculated by the Company, may not be comparable to
other companies that do not define such terms exactly as the
Company.
Net Operating Income
The Company calculates net operating income as total operating
revenues (rental income, tenant reimbursements and other revenue)
less property operating expenses (direct property expenses and real
estate taxes). Since net operating income excludes general and
administrative expenses, interest expense, depreciation and
amortization, acquisition-related expenses, other income and losses
and extraordinary items, it provides a performance measure that,
when compared year over year, reflects the revenues and expenses
directly associated with owning and leasing farmland real estate,
providing a perspective not immediately apparent from net income.
However, net operating income should not be viewed as an
alternative measure of the Company's financial performance since it
does not reflect general and administrative expenses, interest
expense, depreciation and amortization costs, other income and
losses.
FFO
The Company calculates FFO in accordance with the standards
established by the National Association of Real Estate Investment
Trusts, or NAREIT. NAREIT defines FFO as net income (loss)
(calculated in accordance with GAAP), excluding gains (or losses)
from sales of depreciable operating property, plus real estate
related depreciation, depletion and amortization (excluding
amortization of deferred financing costs), and after adjustments
for unconsolidated partnerships and joint ventures. Management
presents FFO as a supplemental performance measure because it
believes that FFO is beneficial to investors as a starting point in
measuring the Company's operational performance. Specifically, in
excluding real estate related depreciation and amortization and
gains and losses from sales of depreciable operating properties,
which do not relate to or are not indicative of operating
performance, FFO provides a performance measure that, when compared
year over year, captures trends in occupancy rates, rental rates
and operating costs. The Company also believes that, as a widely
recognized measure of the performance of REITs, FFO will be used by
investors as a basis to compare the Company's operating performance
with that of other REITs. However, other equity REITs may not
calculate FFO in accordance with the NAREIT definition as the
Company does, and, accordingly, the Company's FFO may not be
comparable to such other REITs' FFO.
AFFO
The Company calculates AFFO by adjusting FFO to exclude the
income and expenses that the Company believes are not reflective of
the sustainability of the Company's ongoing operating performance,
including, but not limited to, real estate related acquisition and
due diligence costs and stock-based compensation.
Changes in GAAP accounting and reporting rules that were put in
effect after the establishment of NAREIT's definition of FFO in
1999 result in the inclusion of a number of items in FFO that do
not correlate with the sustainability of the Company's operating
performance. Therefore, in addition to FFO, the Company
presents AFFO and AFFO per share, fully diluted, both of which are
non-GAAP measures. Management considers AFFO a useful
supplemental performance metric for investors as it is more
indicative of the Company's operational performance than FFO. AFFO
is not intended to represent cash flow or liquidity for the period,
and is only intended to provide an additional measure of the
Company's operating performance. Even AFFO, however, does not
properly capture the timing of cash receipts, especially in
connection with full-year rent payments under lease agreements
entered into in connection with newly acquired farms. Management
considers AFFO per share, fully diluted to be a supplemental metric
to GAAP earnings per share. AFFO per share, fully diluted provides
additional insight into how the Company's operating performance
could be allocated to potential shares outstanding at a specific
point in time. Management believes that AFFO is a widely recognized
measure of the operations of REITs, and presenting AFFO will enable
investors to assess the Company's performance in comparison to
other REITs. However, other REITs may use different methodologies
for calculating AFFO and AFFO per share, fully diluted and,
accordingly, the Company's AFFO and AFFO per share, fully diluted
may not always be comparable to AFFO and AFFO per share amounts
calculated by other REITs. AFFO and AFFO per share, fully diluted
should not be considered as an alternative to net income (loss) or
earnings per share (determined in accordance with GAAP) as an
indication of financial performance, or as an alternative to net
income (loss) earnings per share (determined in accordance with
GAAP) as a measure of the Company's liquidity, nor are they
indicative of funds available to fund the Company's cash needs,
including its ability to make distributions.
EBITDA and Adjusted EBITDA
Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA") is a key financial measure used to evaluate the
Company's operating performance but should not be construed as an
alternative to operating income, cash flows from operating
activities or net income, in each case as determined in accordance
with GAAP. The Company believes that EBITDA is a standard
performance measure commonly reported and widely used by analysts
and investors in the Company's industry. However, while EBITDA is a
performance measure widely used across several industries, the
Company does not believe that it correctly captures the Company's
business operating performance because it includes non-cash
expenses and recurring adjustments that are necessary to better
understand the Company's business operating performance.
Therefore, in addition to EBITDA, management uses Adjusted EBITDA,
a non-GAAP measure.
The Company calculates Adjusted EBITDA by adjusting EBITDA for
certain items such as stock-based compensation and real estate
related acquisition and due diligence costs that the Company
considers necessary to understand its operating performance. The
Company believes that Adjusted EBITDA provides useful supplemental
information to investors regarding the Company's ongoing operating
performance that, when considered with net income and EBITDA, is
beneficial to an investor's understanding of the Company's
operating performance. However, EBITDA and Adjusted EBITDA have
limitations as analytical tools and should not be considered in
isolation or as a substitute for analysis of the Company's results
as reported under GAAP.
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content:http://www.prnewswire.com/news-releases/farmland-partners-inc-reports-second-quarter-results-and-announces-net-income-per-share-of-002-and-affo-per-share-of-010-300491126.html
SOURCE Farmland Partners Inc.