Farmland Partners Inc (FPI) Q3 2024 Earnings Call Highlights: Strategic Asset Sales and Special ...

GuruFocus.com11-01

Net Income (Q3 2024): $1.8 million or $0.02 per share. Adjusted Funds from Operations (AFFO) (Q3 2024): $1.4 million or $0.03 per share. Net Income (9 months ended September 30, 2024): $1.2 million or...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2480020721?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/sTtF4vwoxH6BKPD9yuV8kQ--~B/aD01MDA7dz01MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/bc9f8576b21237864186b88fcca4443d","is_english":true,"pubTime":"2024-11-01 15:17","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2480020721","market":"us","top_or_hot":-1,"title":"Farmland Partners Inc (FPI) Q3 2024 Earnings Call Highlights: Strategic Asset Sales and Special ...","media":"GuruFocus.com","content":"<div>\n<p>Net Income (Q3 2024): $1.8 million or $0.02 per share.\nAdjusted Funds from Operations (AFFO) (Q3 2024): $1.4 million or $0.03 per share.\nNet Income (9 months ended September 30, 2024): $1.2 million or...</p>\n\n<a href=\"https://finance.yahoo.com/news/farmland-partners-inc-fpi-q3-071701675.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Farmland Partners Inc (FPI) Q3 2024 Earnings Call Highlights: Strategic Asset Sales and Special ...</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFarmland Partners Inc (FPI) Q3 2024 Earnings Call Highlights: Strategic Asset Sales and Special ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-01 15:17 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/farmland-partners-inc-fpi-q3-071701675.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Net Income (Q3 2024): $1.8 million or $0.02 per share.\nAdjusted Funds from Operations (AFFO) (Q3 2024): $1.4 million or $0.03 per share.\nNet Income (9 months ended September 30, 2024): $1.2 million or...</p>\n\n<a href=\"https://finance.yahoo.com/news/farmland-partners-inc-fpi-q3-071701675.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"FPI","symbol_name":"Farmland Partners Inc","start_time":0,"source_url":"https://finance.yahoo.com/news/farmland-partners-inc-fpi-q3-071701675.html","article_id":"2480020721","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/sTtF4vwoxH6BKPD9yuV8kQ--~B/aD01MDA7dz01MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/bc9f8576b21237864186b88fcca4443d"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2480020721","pubTimestamp":1730445421,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Net Income : $1.8 million or $0.02 per share.Adjusted Funds from Operations  : $4.7 million or $0.10 per share.Property Operating Expenses: Lower for both three and nine months ended September 30, 2024.Interest Expense: Decreased for both three and nine months ended September 30, 2024.Floating Rate Debt: Approximately 20% of total debt as of September 30, 2024.Weighted Average Cost of Debt: Decreased from 5.34% to 5.05% after repayments.Fixed Farm Rent: Decreased by approximately 3.5% due to 2023 dispositions.Direct Operations Revenue: Increased by $1.6 million over the prior year.Special Dividend: Expected in the range of $1.00 to $1.10 per share.GuruFocus has detected 8 Warning Signs with FPI.Farmland Partners Inc  reported a strong operational quarter with significant asset sales contributing to shareholder gains.Q: What was the annualized revenue on the 52 farms that were sold, and how will this affect 2025 revenue?A: The full-year annualized revenues for the farm sales were approx","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"FPI":"Farmland Partners Inc"},"translate_title":"Farmland Partners Inc(FPI)2024年第三季度收益看涨期权亮点：战略资产出售和特别……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"FPI":1},"content_text":"Net Income (Q3 2024): $1.8 million or $0.02 per share.\nAdjusted Funds from Operations (AFFO) (Q3 2024): $1.4 million or $0.03 per share.\nNet Income (9 months ended September 30, 2024): $1.2 million or negative $0.02 per share.\nAdjusted Funds from Operations (AFFO) (9 months ended September 30, 2024): $4.7 million or $0.10 per share.\nProperty Operating Expenses: Lower for both three and nine months ended September 30, 2024.\nInterest Expense: Decreased for both three and nine months ended September 30, 2024.\nFloating Rate Debt: Approximately 20% of total debt as of September 30, 2024.\nWeighted Average Cost of Debt: Decreased from 5.34% to 5.05% after repayments.\nFixed Farm Rent: Decreased by approximately 3.5% due to 2023 dispositions.\nDirect Operations Revenue: Increased by $1.6 million over the prior year.\nSpecial Dividend: Expected in the range of $1.00 to $1.10 per share.\n2024 AFFO Guidance: $11.8 million to $14.8 million or $0.24 to $0.30 per share.\n\n\nWarning! GuruFocus has detected 8 Warning Signs with FPI.\n High Yield Dividend Stocks in Gurus' Portfolio\nThis Powerful Chart Made Peter Lynch 29% A Year For 13 Years\nHow to calculate the intrinsic value of a stock?\n\nRelease Date: October 31, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nFarmland Partners Inc (NYSE:FPI) reported a strong operational quarter with significant asset sales contributing to shareholder gains.\nThe company has successfully reduced its debt load by almost half, which is expected to positively impact its financial stability.\nFPI announced a special dividend in the range of $1.00 to $1.10, reflecting strong business performance and tax requirements.\nThe company has maintained a strong position in high-value farmland areas, particularly in Illinois, which is expected to appreciate further.\nFPI has managed to avoid debt repayment penalties through strategic negotiations, enhancing financial flexibility.\n\n Negative Points \n\nNet income for the quarter was lower compared to the same period in 2023, primarily due to asset dispositions.\nThe company faces challenges in accurately valuing its California specialty crop assets, which adds uncertainty to its portfolio valuation.\nGeneral and administrative expenses increased due to one-time severance costs and transaction-related expenses.\nThe farming environment remains challenging, with expectations for flat rent growth in 2025, impacting revenue projections.\nFPI is limited to a certain number of asset transactions per year due to tax regulations, which could restrict future sales activities.\n\n Q & A Highlights \nQ: What was the annualized revenue on the 52 farms that were sold, and how will this affect 2025 revenue? A: The full-year annualized revenues for the farm sales were approximately $11.2 million. The company expects to remain mostly whole from a net income standpoint due to interest savings and other cost reductions, such as property taxes and maintenance, which will offset the revenue loss.\nQ: What drove the significant increase in crop sales year over year? A: The increase in crop sales was primarily due to a strong crop yield and good prices from the Condor avocado farm, along with good performance in citrus sales.\nQ: How do the recent asset sales affect the company's ability to sell more assets in 2025? A: The company will face similar restrictions as this year, likely limiting them to about seven transactions in a calendar year. However, they have been creative in managing high transaction volumes within these rules.\nQ: What is the outlook for rent increases in 2025 given the current farming environment? A: The company expects flat rent projections for next year, with a possibility of a slight increase up to 5%. The challenging market conditions have led to this conservative outlook.\nQ: Are there any additional opportunities for loans under the FPI loan program given the current farming environment? A: Yes, there are opportunities to make loans, and the company is open to doing so if they can secure high-quality collateral and achieve a good spread against their cost of capital. These loans are typically short-term, lasting one to two years.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2480020721"}