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Farmland Partners (FPI)
NYSE:FPI
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Farmland
(NYSE:FPI)
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Rating:67Neutral
Price Target:
$10.50
â–²(1.84% Upside)
The overall stock score of 67 reflects strong financial health and attractive valuation, offset by bearish technical indicators and concerns about future earnings sustainability. The company's robust cash flow and strategic initiatives provide a positive outlook, but the decline in revenue growth and potential AFFO moderation next year are key risks.
Positive Factors
Strong Profitability Margins
High profitability margins indicate efficient operations and strong pricing power, which can support long-term financial stability and growth.
Strategic Asset Management
Strategic asset exchanges and appreciation enhance asset value and shareholder returns, supporting long-term growth and financial health.
Improved Leverage Management
Improved leverage management reduces financial risk, providing greater flexibility for future investments and stability in economic downturns.
Negative Factors
Revenue Decline
A decline in revenue can hinder growth prospects and affect the company's ability to invest in new opportunities, impacting long-term performance.
Sustainability Concerns
Reliance on one-time events for financial performance raises concerns about the sustainability of earnings, affecting long-term investor confidence.
Increased Legal Expenses
Rising legal expenses can strain financial resources and distract management, potentially affecting operational efficiency and strategic focus.
Farmland (FPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$443.04M
Dividend Yield14.23%
Average Volume (3M)486.63K
Price to Earnings (P/E)8.6
Beta (1Y)0.43
Revenue Growth-9.27%
EPS Growth333.85%
CountryUS
Employees23
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)0.00
Shares Outstanding43,097,553
10 Day Avg. Volume426,887
30 Day Avg. Volume486,631
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)1.16
Price to Sales (P/S)9.60
P/FCF Ratio34.64
Enterprise Value/Market Cap1.66
Enterprise Value/Revenue13.91
Enterprise Value/Gross Profit17.67
Enterprise Value/Ebitda9.44
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Farmland Business Overview & Revenue Model
Company DescriptionFarmland 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 approximately 155,000 acres in 16 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota 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.
How the Company Makes MoneyFarmland Partners generates revenue primarily through leasing its farmland to farmers, who pay rent on a per-acre basis. This rental income is the company's main revenue stream and can come from both fixed-rate leases and variable-rate leases, which may depend on the crop yield or market prices. Additionally, Farmland may earn income from capital appreciation of its land holdings as farmland values rise over time. The company focuses on maintaining a diversified portfolio of agricultural properties across various states, minimizing risk and enhancing revenue stability. Strategic partnerships with agricultural producers and market participants also play a crucial role in optimizing land use and increasing profitability.
Farmland Key Performance Indicators (KPIs)
Farmland Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Neutral
The earnings call presented a strong financial performance for the current quarter, highlighted by strategic sales and exchanges contributing to shareholder value. However, concerns about the sustainability of these achievements into next year, coupled with increased legal expenses, introduce caution.Q3-2025 Updates
Positive Updates
Strong AFFO Performance
AFFO for the three months ended September 30, 2025, was $2.9 million or $0.07 per share, higher than the same period for 2024, driven by lower interest expenses and increased interest income.
Sale of Murray Wise Associates
A strategic sale of the brokerage and third-party farm management subsidiary, Murray Wise Associates, simplifying operations and providing a good outcome for shareholders.
Exchange of Series A Preferred Units
Exchanged $31 million worth of Series A preferred units for properties in Illinois, with a 56% appreciation over 10 years.
Special Dividend Announcement
Plan to issue a special dividend in the range of $0.18 to $0.22 per share in January 2026.
Reduction in Interest Expenses
Interest expense decreased by $3.2 million for the three months ended and $8.4 million for the nine months ended September 30, 2025.
Negative Updates
Lower Net Income
Net income was $0.5 million or $0 per share, lower than the same period for 2024, due to current period dispositions resulting in a loss of $0.5 million.
Potential Decrease in AFFO Next Year
The current year's strong AFFO was partly due to one-time events, and a more modest AFFO is expected next year.
Increased Legal and Accounting Expenses
Legal and accounting expenses increased due to ongoing litigation, including short and distort cases and a dispute in Louisiana.
Company Guidance
During the Farmland Partners Inc. Q3 2025 earnings call, the company provided detailed guidance and outlook for the remainder of the year, highlighting key financial metrics and strategic decisions. The company reported net income of $0.5 million for the third quarter and $10.4 million for the nine months ending September 30, 2025. Adjusted Funds From Operations (AFFO) for the quarter was $2.9 million, translating to $0.07 per share, marking an improvement from the previous year due to lower interest expenses and reduced operating costs. The guidance for the full year 2025 was updated, projecting AFFO between $14.5 million and $16.6 million, or $0.32 to $0.36 per share, driven by increased management fees and interest income from the FPI loan program. Additionally, the company announced plans for a special dividend ranging from $0.18 to $0.22 per share, set to be issued in January 2026. Key strategic moves included the sale of the Murray Wise Associates subsidiary and the exchange of $31 million of Series A preferred units for properties in Illinois, with the latter appreciating by about 56% over ten years. The call also addressed broader market conditions, noting the potential impact of a new China trade deal on soybean exports and farmer profitability, while emphasizing the consistent long-term appreciation potential in farmland assets.Farmland Financial Statement Overview
Summary
Farmland's financial health is robust with strong profitability margins but faces challenges in revenue growth. The balance sheet shows improved leverage risk, while cash flow remains steady without showing growth. Overall, the company is in a solid financial position but should focus on sustaining revenue and cash flow growth.Income Statement
The TTM shows a gross profit margin of 76.9% and a net profit margin of 127.6%, indicating strong profitability. However, revenue decreased by 5.5% from 2024 to the TTM, which is a concern. The EBIT margin is 37.8%, reflecting good operational efficiency, while the EBITDA margin at 147.2% is exceptionally high due to a one-time gain, suggesting inflated profitability that may not be sustainable.Balance Sheet
The debt-to-equity ratio has improved drastically to 0.001, indicating strong leverage management. The ROE stands at 14.8%, showing effective use of equity to generate profit. However, the equity ratio decreased to 61.0% in the TTM, reflecting potential risk if liabilities grow faster than assets.Cash Flow
Free cash flow remains stable at $14.52 million with no growth, indicating consistent cash generation. The operating cash flow to net income ratio is 0.21, suggesting limited cash conversion from earnings. Nevertheless, free cash flow covers net income, showing adequate liquidity.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 52.94M | 58.23M | 57.47M | 61.21M | 51.74M | 50.69M |
| Gross Profit | 41.67M | 46.92M | 44.05M | 47.05M | 42.88M | 39.95M |
| EBITDA | 78.03M | 85.88M | 61.67M | 35.29M | 24.52M | 30.31M |
| Net Income | 68.87M | 59.91M | 30.91M | 11.67M | 9.99M | 7.12M |
Balance Sheet | ||||||
| Total Assets | 738.55M | 868.56M | 1.02B | 1.16B | 1.12B | 1.09B |
| Cash, Cash Equivalents and Short-Term Investments | 13.47M | 78.44M | 5.49M | 7.65M | 30.17M | 27.22M |
| Total Debt | 541.00K | 203.88M | 361.26M | 437.20M | 511.43M | 506.72M |
| Total Liabilities | 180.15M | 272.00M | 391.19M | 455.94M | 528.94M | 524.80M |
| Stockholders Equity | 457.32M | 481.91M | 515.88M | 580.79M | 458.31M | 429.84M |
Cash Flow | ||||||
| Free Cash Flow | 16.85M | 16.14M | 12.89M | 12.80M | 7.86M | 19.73M |
| Operating Cash Flow | 16.85M | 16.14M | 12.89M | 17.05M | 7.86M | 19.73M |
| Investing Cash Flow | 346.60M | 268.75M | 158.46M | -60.40M | -18.77M | 18.67M |
| Financing Cash Flow | -358.06M | -211.94M | -173.51M | 20.83M | 13.87M | -23.74M |
Farmland Technical Analysis
Positive
10.31
Price Trends
9.68
Positive
10.01
Positive
10.23
Positive
Market Momentum
0.11
Negative
66.99
Neutral
92.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FPI, the sentiment is Positive. The current price of 10.31 is above the 20-day moving average (MA) of 9.87, above the 50-day MA of 9.68, and above the 200-day MA of 10.23, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 66.99 is Neutral, neither overbought nor oversold. The STOCH value of 92.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FPI.
Farmland Risk Analysis
Farmland disclosed 63 risk factors in its most recent earnings report. Farmland reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Farmland Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.74B | 9.50 | 38.06% | 12.79% | 8.88% | 131.78% | |
67 Neutral | $443.04M | 8.60 | 14.30% | 14.23% | -9.27% | 333.85% | |
66 Neutral | $18.56B | 55.75 | 3.42% | 3.57% | -1.64% | -37.58% | |
66 Neutral | $3.31B | 52.13 | 3.25% | 4.53% | 5.40% | 294.38% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
FPI
Farmland
10.30
-0.76
-6.87%
PCH
PotlatchDeltic
42.65
4.48
11.74%
RYN
Rayonier
23.06
-0.26
-1.11%
WY
Weyerhaeuser
25.45
-2.58
-9.20%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.