Farmland Partners posts fall in 2025 net income; lifts quarterly dividend by 50%

Overview

• U.S. farmland REIT's 2025 net income decreased 47.6% yr/yr

• Company raised quarterly dividend by 50% to $0.09 per share

• Completed 60 property dispositions for $90.2 mln in 2025, reducing debt by $43 mln

Outlook

• Company aims to deliver attractive risk-adjusted returns in 2026

• Farmland Partners sees favorable long-term agricultural trends supporting future performance

Result Drivers

• PROPERTY DISPOSITIONS - Co completed 60 property sales for $90.2 mln, recognizing a net gain of $34.9 mln, which contributed to debt reduction and balance sheet simplification

• TENANT STRENGTH - Despite crop pricing pressures, co highlighted the strength and resilience of its tenants as a key factor in maintaining portfolio performance

• BALANCE SHEET IMPROVEMENT - Co reduced total indebtedness by $43 mln and redeemed Series A preferred units to eliminate dilution risk and simplify financial structure

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Farmland Partners Inc is $12.50, about 4.9% above its February 17 closing price of $11.92

• The stock recently traded at 79 times the next 12-month earnings vs. a P/E of 50 three months ago

Press Release: ID:nBwb35y07a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)