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Farmland Partners (FPI)
NYSE:FPI
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Farmland
(NYSE:FPI)
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Rating:67Neutral
Price Target:
$12.50
▲(21.24% 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
Very Low Leverage
Extremely low leverage and a strong equity ratio provide durable financial flexibility, reducing refinancing and interest-rate risk. This balance sheet strength supports capital allocation for acquisitions, dividends, or buybacks and cushions the REIT through agricultural cycles.
Strong Cash Generation
Robust free cash flow growth and very high operating-cash-to-net-income indicate persistent cash conversion ability. Sustained cash generation underpins dividend capacity, funds capex or strategic transactions, and reduces dependence on external financing over the medium term.
High Profitability Margins
Exceptionally high reported margins reflect efficient operations and strong returns on invested equity (ROE 14.56%). High structural profitability gives the company scope to absorb cyclical revenue dips while maintaining cash distributions and reinvesting in core farmland assets.
Negative Factors
Declining Revenue Trend
Material negative revenue growth weakens the top-line base that supports AFFO and dividend sustainability. If lease income or acreage earnings continue to contract, the company’s ability to grow net operating income and fund long-term land investment or shareholder returns could be impaired.
AFFO Sustainability Risk
Reliance on asset sales and one-off gains to boost AFFO is a structural risk: if recurring operating cash flows revert to normalized levels, AFFO and distributable cash may decline. This threatens durable dividend levels and constrains long-term capital planning.
Ongoing Litigation and Costs
Active litigation raises recurring legal and accounting costs, creates potential contingent liabilities, and distracts management. Over months this can erode free cash flow, increase governance risk, and limit bandwidth for strategic initiatives like acquisitions or portfolio optimization.
Farmland (FPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$485.71M
Dividend Yield14.23%
Average Volume (3M)436.09K
Price to Earnings (P/E)9.4
Beta (1Y)0.44
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. Volume485,522
30 Day Avg. Volume436,089
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 Cap1.03
Enterprise Value/Revenue9.43
Enterprise Value/Gross Profit11.98
Enterprise Value/Ebitda6.40
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 exhibits strong profitability with high net and EBIT margins, and a solid balance sheet with minimal leverage. However, the decline in revenue growth is a concern that needs to be addressed to sustain long-term growth. The company's cash flow position is robust, providing a cushion for operational and strategic initiatives.Income Statement
The income statement shows a mixed performance. The TTM data indicates a decline in revenue growth at -3.76%, which is a concern. However, the company maintains strong profitability with a high net profit margin of 130.10% and an EBIT margin of 133.59%. The gross profit margin remains robust at 63.60%, although it has decreased from previous years. Overall, while profitability metrics are strong, the negative revenue growth trend is a potential risk.65
Positive
Balance Sheet
The balance sheet reflects a solid financial position with a very low debt-to-equity ratio of 0.0012 in the TTM period, indicating minimal leverage. Return on equity is healthy at 14.56%, showing effective use of equity to generate profits. The equity ratio is strong, indicating a stable financial structure. The reduction in debt levels over time is a positive sign for financial stability.75
Positive
Cash Flow
Cash flow analysis reveals positive trends with a free cash flow growth rate of 16.03% in the TTM period. The operating cash flow to net income ratio is exceptionally high at 27.89, indicating strong cash generation relative to net income. The free cash flow to net income ratio is stable at 1.0, suggesting efficient cash flow management. Overall, cash flow metrics are strong, supporting the company's liquidity and operational efficiency.70
Positive
| 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
10.05
Positive
10.06
Positive
10.29
Positive
Market Momentum
0.38
Negative
68.28
Neutral
88.08
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 below the 20-day moving average (MA) of 10.64, above the 50-day MA of 10.05, and above the 200-day MA of 10.29, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 68.28 is Neutral, neither overbought nor oversold. The STOCH value of 88.08 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.64B | 9.30 | 38.06% | 12.79% | 8.88% | 131.78% | |
68 Neutral | $3.23B | 51.00 | 3.25% | 4.53% | 5.40% | 294.38% | |
67 Neutral | $485.71M | 9.42 | 14.30% | 14.23% | -9.27% | 333.85% | |
66 Neutral | $18.63B | 57.70 | ― | 3.57% | -1.64% | -37.58% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
FPI
Farmland
11.40
0.28
2.47%
PCH
PotlatchDeltic
41.73
0.02
0.04%
RYN
Rayonier
22.55
-0.63
-2.72%
WY
Weyerhaeuser
26.68
-2.49
-8.54%
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.