FPI Significantly Improves Operating
Performance, Reduces Leverage, Raises Guidance, and Continues to
Grow Portfolio
Farmland Partners Inc. (NYSE: FPI) (“FPI” or the “Company”)
today reported financial results for the three and six months ended
June 30, 2022.
Selected Q2 2022 Highlights
During the three months ended June 30, 2022, the Company:
- increased net income by $5.9 million to $3.0 million, or $0.04
per share available to common stockholders, compared to $(2.9)
million, or $(0.19) per share available to common stockholders, for
the same period in 2021;
- increased AFFO by $4.8 million to $1.1 million, or $0.02 per
share, from $(3.6) million, or $(0.11) per share, for the same
period in 2021;
- decreased debt by $38.4 million, while maintaining $32.0
million of undrawn capacity under its line of credit, bringing
total debt to enterprise value to approximately 33.7%;
- has renewed over one-third of leases expiring in 2022 at
average rent increases in excess of 15%; and
- received a federal judge’s dismissal of the class action
lawsuit brought against FPI, which stemmed from a 2018 short and
distort attack against the Company (link).
CEO Comments
Paul A. Pittman, Chairman and CEO said: “The second quarter of
2022 was an outstanding quarter in all respects—AFFO increased $4.8
million and operating income was up over 250% compared Q2 2021.
Operations benefited from higher rents on fixed leases, increased
fee revenue resulting from the 2021 acquisition of Murray Wise
Associates, and lower capital costs (both interest and preferred
distributions) resulting from the significant de-leveraging of the
balance sheet. Across all row-crop regions, farmland values
continue to appreciate strongly. In addition, we achieved total
vindication from the 2018 short and distort scheme through the
dismissal of the class action lawsuit against FPI, allowing
management to focus attention on growing the business to deliver
solid value to our shareholders. Despite pressure on the general
economy, our outlook for 2022 remains positive, and we have
increased both the bottom and top ends of our guidance range issued
in May.”
Financial and Operating Results
- The tables below show financial and operating results for the
three and six months ended June 30, 2022 and 2021. The values are
shown as reported and after adjusting for litigation items.
As reported
Adjusted for litigation
(1)
For the three months
ended
For the three months
ended
June 30,
June 30,
Financial Results:
2022
2021
Change
2022
2021
Change
Net Income (Loss)
$
2,993
$
(2,865
)
NM
$
3,326
$
(735
)
NM
Net income (loss) per share available to
common stockholders
$
0.04
$
(0.19
)
NM
$
0.05
$
(0.12
)
NM
AFFO
$
1,111
$
(3,648
)
NM
$
1,444
$
(1,518
)
NM
AFFO per weighted average common
shares
$
0.02
$
(0.11
)
NM
$
0.03
$
(0.05
)
NM
Adjusted EBITDAre
$
5,758
$
3,182
81.0
%
$
6,091
$
5,312
14.7
%
Operating Results:
Total Operating Revenues
$
12,357
$
10,013
23.4
%
$
12,357
$
9,463
30.6
%
Operating Income
$
3,455
$
955
261.8
%
$
3,788
$
3,085
22.8
%
Net Operating Income (NOI) (2)
$
8,966
$
7,638
17.4
%
$
8,966
$
7,088
26.5
%
(1)
Legal and accounting expense for the three
months ended June 30, 2022 and 2021 included $0.3 million and $2.7
million, respectively, related to litigation. Revenue for the three
months ended June 30, 2022 and 2021 included $— million and $0.6
million, respectively, of litigation settlement proceeds related to
the Rota Fortunae case.
(2)
Please note change in the definition of
NOI to include cost of goods sold.
As reported
Adjusted for litigation
(1)
For the six months
ended
For the six months
ended
June 30,
June 30,
Financial Results:
2022
2021
Change
2022
2021
Change
Net Income (Loss)
$
4,131
$
(388
)
NM
$
5,300
$
4,250
24.7
%
Net income (loss) per share available to
common stockholders
$
0.05
$
(0.21
)
NM
$
0.07
$
(0.07
)
NM
AFFO
$
3,266
$
(5,259
)
NM
$
4,435
$
(621
)
NM
AFFO per weighted average common
shares
$
0.07
$
(0.16
)
NM
$
0.09
$
(0.02
)
NM
Adjusted EBITDAre
$
12,518
$
8,511
47.1
%
$
13,687
$
13,149
4.1
%
Operating Results:
Total Operating Revenues
$
26,247
$
21,589
21.6
%
$
26,247
$
21,039
24.8
%
Net Operating Income (NOI) (2)
$
19,462
$
17,033
14.3
%
$
19,462
$
16,483
18.1
%
Operating Income
$
7,773
$
4,054
91.7
%
$
8,942
$
8,692
2.9
%
(1)
Legal and accounting expense for the six
months ended June 30, 2022 and 2021 included $1.2 million and $5.2
million, respectively, related to litigation. Revenue for the six
months ended June 30, 2022 and 2021 included $— million and $0.6
million, respectively, of litigation settlement proceeds related to
the Rota Fortunae case.
(2)
Please note change in the definition of
NOI to include cost of goods sold.
- See "Non-GAAP Financial Measures" for complete definitions of
AFFO, Adjusted EBITDAre, and NOI and the financial tables
accompanying this press release for reconciliations of net income
to AFFO, Adjusted EBITDAre and NOI.
Acquisition and Disposition Activity
- During the six months ended June 30, 2022, the Company
completed nine property acquisitions for total consideration of
$28.2 million.
- During the six months ended June 30, 2022, the Company
completed five property dispositions for cash consideration of
$16.9 million and total gain on sale of $4.0 million (or
30.6%).
Balance Sheet
- During the six months ended June 30, 2022, the Company sold 7.0
million shares of common stock at a weighted average price of
$14.00 for aggregate net proceeds of $98.4 million under its
“at-the-market” offering programs. After the end of the quarter,
the Company sold an additional 247,416 shares of common stock at a
weighted average price of $14.17 for aggregate net proceeds of $3.5
million.
- As of July 22, 2022, the Company had 54,283,413 shares of
common stock outstanding on a fully diluted basis.
- The Company had total debt outstanding of $426.5 million at
June 30, 2022, compared to total debt outstanding of $513.4 million
at December 31, 2021. Debt as a percentage of enterprise value was
approximately 33.7% at June 30, 2022, compared to approximately
44.1% at December 31, 2021.
- The company had Series A preferred units of $113.7 million
outstanding after the redemption of $5.0 million of Series A
preferred units in the quarter.
- The Company had liquidity of $51.7 million, consisting of $19.7
million in cash and $32.0 million in undrawn availability under its
credit facility at June 30, 2022, compared to cash of $30.2 million
at December 31, 2021.
Dividend Declarations
- The Company’s Board of Directors declared a quarterly cash
dividend of $0.06 per share of common stock and per Class A Common
OP unit. The dividends are payable on October 17, 2022, to
stockholders and common unit holders of record on October 1,
2022.
Conference Call Information and Supplemental Package
The Company has scheduled a conference call on July 27, 2022, at
1:00 p.m. (Eastern Time) to discuss the financial results and
provide a company update.
The call can be accessed by dialing 1-844-200-6205 (USA),
1-833-950-0062 (Canada), or 1-929-526-1599 (other locations) and
using the access code 882915. 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
shortly after the end of the event until August 8, 2022, by dialing
1-866-813-9403 (USA), 1-226-828-7578 (Canada), or +44 (20)
4525-0658 (other locations) and using the access code 371344. 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 package can be accessed through the Investor
Relations section of the Company's website.
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 June 30, 2022, the Company owns and/or manages approximately
185,300 acres in 18 states, including Alabama, Arkansas,
California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa,
Kansas, Louisiana, Michigan, Mississippi, Missouri, North Carolina,
Nebraska, South Carolina, and Virginia. We have approximately 26
crop types and over 100 tenants. 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. Additional information: www.farmlandpartners.com or (720)
452-3100.
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 our outlook and the outlook
for the farm economy generally, proposed and pending acquisitions
and dispositions, financing activities, crop yields and prices and
anticipated rental rates. 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: the on-going war in Ukraine and
its impact on the world agriculture market, world food supply, the
farm economy, and our tenants’ businesses; 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 or dispositions under
contract; and the other factors described in the section entitled
“Risk Factors” in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2021, and the Company’s 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 the Company does 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, 2022
(Unaudited) and December 31, 2021
(in thousands)
June 30,
December 31,
2022
2021
ASSETS
Land, at cost
$
960,593
$
945,951
Grain facilities
10,918
10,754
Groundwater
12,602
10,214
Irrigation improvements
53,431
52,693
Drainage improvements
12,528
12,606
Permanent plantings
53,698
53,698
Other
6,975
6,848
Construction in progress
12,804
10,647
Real estate, at cost
1,123,549
1,103,411
Less accumulated depreciation
(41,562
)
(38,303
)
Total real estate, net
1,081,987
1,065,108
Deposits
531
58
Cash
19,696
30,171
Assets held for sale
83
530
Notes and interest receivable, net
5,855
6,112
Right of use asset
387
107
Deferred offering costs
83
40
Accounts receivable, net
2,457
4,900
Derivative asset
698
—
Inventory
2,962
3,059
Equity method investments
4,148
3,427
Intangible assets, net
1,912
1,915
Goodwill
2,706
2,706
Prepaid and other assets
1,655
3,392
TOTAL ASSETS
$
1,125,160
$
1,121,525
LIABILITIES AND EQUITY
LIABILITIES
Mortgage notes and bonds payable, net
$
424,474
$
511,323
Lease liability
387
107
Dividends payable
3,239
2,342
Derivative liability
—
785
Accrued interest
2,991
3,011
Accrued property taxes
1,851
1,762
Deferred revenue
1,317
45
Accrued expenses
7,826
9,564
Total liabilities
442,085
528,939
Commitments and contingencies
Redeemable non-controlling interest in
operating partnership, Series A preferred units
113,680
120,510
EQUITY
Common stock, $0.01 par value, 500,000,000
shares authorized; 52,742,449 shares issued and outstanding at June
30, 2022, and 45,474,145 shares issued and outstanding at December
31, 2021
515
444
Additional paid in capital
623,748
524,183
Retained deficit
(2,456
)
(4,739
)
Cumulative dividends
(67,446
)
(61,853
)
Other comprehensive income
1,857
279
Non-controlling interests in operating
partnership
13,177
13,762
Total equity
569,395
472,076
TOTAL LIABILITIES, REDEEMABLE
NON-CONTROLLING INTERESTS IN OPERATING PARTNERSHIP AND EQUITY
$
1,125,160
$
1,121,525
Farmland Partners Inc.
Consolidated Statements of
Operations
Three and Six Months Ended
June 30, 2022 and 2021
(Unaudited)
(in thousands except per share
amounts)
For the Three Months
Ended
For the Six Months
Ended
June 30,
June 30,
2022
2021
2022
2021
OPERATING REVENUES:
Rental income
$
9,196
$
8,291
$
18,741
$
18,551
Tenant reimbursements
809
839
1,587
1,777
Crop sales
1,150
237
1,845
453
Other revenue
1,202
646
4,074
808
Total operating revenues
12,357
10,013
26,247
21,589
OPERATING EXPENSES
Depreciation, depletion and
amortization
1,660
1,885
3,411
3,820
Property operating expenses
2,058
1,708
4,013
3,639
Cost of goods sold
1,333
667
2,772
917
Acquisition and due diligence costs
—
—
62
—
General and administrative expenses
3,004
1,897
6,108
3,514
Legal and accounting
816
2,901
2,072
5,643
Other operating expenses
31
—
36
2
Total operating expenses
8,902
9,058
18,474
17,535
OPERATING INCOME
3,455
955
7,773
4,054
OTHER (INCOME) EXPENSE:
Other income
(34
)
(8
)
(14
)
(52
)
Income from equity method investment
(8
)
—
(15
)
—
Gain on disposition of assets
(3,335
)
(74
)
(3,995
)
(3,467
)
Interest expense
3,743
3,902
7,570
7,961
Total other expense
366
3,820
3,546
4,442
Net income (loss) before income tax
expense
3,089
(2,865
)
4,227
(388
)
Income tax expense
96
—
96
—
NET INCOME (LOSS)
2,993
(2,865
)
4,131
(388
)
Net (income) loss attributable to
non-controlling interests in operating partnership
(77
)
130
(110
)
13
Net income (loss) attributable to the
Company
2,916
(2,735
)
4,021
(375
)
Nonforfeitable distributions allocated to
unvested restricted shares
(16
)
(14
)
(31
)
(28
)
Distributions on Series A Preferred Units
and Series B Preferred Stock
(840
)
(3,055
)
(1,680
)
(6,120
)
Net income (loss) available to common
stockholders of Farmland Partners Inc.
$
2,060
$
(5,804
)
$
2,310
$
(6,523
)
Basic and diluted per common share
data:
Basic net income (loss) available to
common stockholders
$
0.04
$
(0.19
)
$
0.05
$
(0.21
)
Diluted net income (loss) available to
common stockholders
$
0.04
$
(0.19
)
$
0.05
$
(0.21
)
Basic weighted average common shares
outstanding
50,362
31,072
48,084
30,747
Diluted weighted average common shares
outstanding
50,362
31,072
48,084
30,747
Dividends declared per common share
$
0.06
$
0.05
$
0.11
$
0.10
Farmland Partners Inc.
Reconciliation of Non-GAAP
Measures
Three and Six Months Ended
June 30, 2022 and 2021
(Unaudited)
For the three months ended
June 30,
For the six months ended June
30,
(in thousands except per share
amounts)
2022
2021
2022
2021
Net income (loss)
$
2,993
$
(2,865
)
$
4,131
$
(388
)
Gain on disposition of assets
(3,335
)
(74
)
(3,995
)
(3,467
)
Depreciation, depletion and
amortization
1,660
1,885
3,411
3,820
FFO
1,318
(1,054
)
3,547
(35
)
Stock-based compensation and incentive
601
334
1,243
585
Deferred impact of interest rate swap
terminations
32
127
94
311
Real estate related acquisition and due
diligence costs
—
—
62
—
Distributions on Preferred units and
stock
(840
)
(3,055
)
(1,680
)
(6,120
)
AFFO
$
1,111
$
(3,648
)
$
3,266
$
(5,259
)
AFFO per diluted weighted average share
data:
AFFO weighted average common shares
51,985
32,836
49,739
32,527
Net loss per share available to common
stockholders
$
0.04
$
(0.19
)
$
0.05
$
(0.21
)
Income available to redeemable
non-controlling interest and non-controlling interest in operating
partnership
0.02
0.10
0.04
0.21
Depreciation and depletion
0.03
0.06
0.07
0.12
Stock-based compensation and incentive
0.01
0.01
0.02
0.02
(Gain) loss on disposition of assets
(0.06
)
—
(0.08
)
(0.11
)
Distributions on Preferred units and
stock
(0.02
)
(0.09
)
(0.03
)
(0.19
)
AFFO per diluted weighted average
share
$
0.02
$
(0.11
)
$
0.07
$
(0.16
)
For the three months
ended
For the six months
ended
June 30,
June 30,
(in thousands)
2022
2021
2022
2021
Net income (loss)
$
2,993
$
(2,865
)
$
4,131
$
(388
)
Interest expense
3,743
3,902
7,570
7,961
Income tax expense
96
—
96
—
Depreciation, depletion and
amortization
1,660
1,885
3,411
3,820
Gain on disposition of assets
(3,335
)
(74
)
(3,995
)
(3,467
)
EBITDAre
$
5,157
$
2,848
$
11,213
$
7,926
Stock-based compensation and incentive
601
334
1,243
585
Real estate related acquisition and due
diligence costs
—
—
62
—
Adjusted EBITDAre
$
5,758
$
3,182
$
12,518
$
8,511
Farmland Partners Inc.
Reconciliation of Non-GAAP
Measures
Three and Six Months Ended
June 30, 2022 and 2021
(Unaudited)
For the three months ended
June 30,
For the six months ended June
30,
($ in thousands)
2022
2021
2022
2021
OPERATING REVENUES:
Rental income
$
9,196
$
8,291
$
18,741
$
18,551
Tenant reimbursements
809
839
1,587
1,777
Crop sales
1,150
237
1,845
453
Other revenue
1,202
646
4,074
808
Total operating revenues
12,357
10,013
26,247
21,589
Property operating expenses
2,058
1,708
4,013
3,639
Cost of goods sold
1,333
667
2,772
917
NOI
8,966
7,638
19,462
17,033
Depreciation, depletion and
amortization
1,660
1,885
3,411
3,820
Acquisition and due diligence costs
—
—
62
—
General and administrative expenses
3,004
1,897
6,108
3,514
Legal and accounting
816
2,901
2,072
5,643
Other operating expenses
31
—
36
2
Other (income)
(34
)
(8
)
(14
)
(52
)
(Income) loss from equity method
investment
(8
)
—
(15
)
—
Gain on disposition of assets
(3,335
)
(74
)
(3,995
)
(3,467
)
Interest expense
3,743
3,902
7,570
7,961
Income tax expense
96
—
96
—
NET INCOME (LOSS)
$
2,993
$
(2,865
)
$
4,131
$
(388
)
Non-GAAP Financial Measures
The Company considers the following non-GAAP measures as useful
to investors as key supplemental measures of its performance: FFO,
NOI, AFFO, EBITDAre and Adjusted EBITDAre. 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. FFO, NOI, AFFO, EBITDAre and Adjusted EBITDAre, as
calculated by the Company, may not be comparable to other companies
that do not define such terms exactly as the Company.
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, stock-based compensation and incentive,
deferred impact of interest rate swap terminations, and
distributions on the Company’s Series A preferred units. For the
avoidance of doubt, $5.7 million non-cash redemption of Series B
Participating Preferred Stock in Q4 2021 is not included in
AFFO.
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.
EBITDAre and Adjusted EBITDAre
The Company calculates Earnings Before Interest Taxes
Depreciation and Amortization for real estate (“EBITDAre”) in
accordance with the standards established by NAREIT in its
September 2017 White Paper. NAREIT defines EBITDAre as net income
(calculated in accordance with GAAP) excluding interest expense,
income tax, depreciation and amortization, gains or losses on
disposition of depreciated property (including gains or losses on
change of control), impairment write-downs of depreciated property
and of investments in unconsolidated affiliates caused by a
decrease in value of depreciated property in the affiliate, and
adjustments to reflect the entity’s pro rata share of EBITDAre of
unconsolidated affiliates. EBITDAre 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 EBITDAre is a
useful performance measure commonly reported and will be widely
used by analysts and investors in the Company’s industry. However,
while EBITDAre is a performance measure widely used across the
Company’s industry, 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 EBITDAre, management uses
Adjusted EBITDAre, a non-GAAP measure.
The Company calculates Adjusted EBITDAre by adjusting EBITDAre
for certain items such as stock-based compensation and incentive
and real estate related acquisition and due diligence costs that
the Company considers necessary to understand its operating
performance. The Company believes that Adjusted EBITDAre provides
useful supplemental information to investors regarding the
Company’s ongoing operating performance that, when considered with
net income and EBITDAre, is beneficial to an investor’s
understanding of the Company’s operating performance. However,
EBITDAre and Adjusted EBITDAre 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.
In prior periods, the Company has presented EBITDA and Adjusted
EBITDA. In accordance with NAREIT’s recommendation, beginning with
the Company’s reported results for the three months ended March 31,
2018, the Company is reporting EBITDAre and Adjusted EBITDAre in
place of EBITDA and Adjusted EBITDA.
Net Operating Income (NOI)
The Company calculates net operating income (NOI) as total
operating revenues (rental income, tenant reimbursements, crop
sales and other revenue), less property operating expenses (direct
property expenses and real estate taxes), less cost of goods sold.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220726006149/en/
James Gilligan ir@farmlandpartners.com
Farmland Partners (NYSE:FPI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Farmland Partners (NYSE:FPI)
Historical Stock Chart
From Apr 2023 to Apr 2024