Farmland Partners Inc. 2026 Q3 Earnings Call

Good morning and welcome to Farmland Partners' third quarter 2026 earnings conference call and webcast. We truly appreciate your taking the time to join us for these calls because we see them as a very important opportunity to share with you our thinking and our strategy in a format less formal and more interactive than public filings and press releases. I will now turn over the call to our General Counsel, Christine Garrison, for some customary preliminary remarks.

Christine? Thank you, Luca, and thank you to everyone on the call.

The press release announcing our third quarter earnings was distributed after market close yesterday. The supplemental package has been posted to the investor relations section of our website under the subheader Events and Presentations. For those who listen to the recording of this presentation, we remind you that the remarks made herein are as of today, October 29, 2026, and will not be updated subsequent to this call. During this call, we will make forward-looking statements, including statements related to the future performance of our portfolio, our identified and potential acquisitions and dispositions, impact of acquisitions, dispositions, and financing activities, business development opportunities, as well as comments on our outlook for our business rents in the broader agricultural markets. We will also discuss certain non-GAAP financial measures, including net operating income, FFO, adjusted FFO, EBITDAre, and adjusted EBITDAre.

Definitions of these non-GAAP measures, as well as reconciliations to the most comparable GAAP measures, are included in the company's press release announcing third quarter 2026 earnings, which is now available on our website, farmlandpartners.com, and is furnished as an exhibit to our current report on Form 8-K, dated October 28, 2026. Listeners are cautioned that these statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations, and we advise listeners to review the risk factors discussed in our press release distributed yesterday and in documents we have filed with or furnished to the SEC. I would now like to turn the call to our Executive Chairman, Paul Pittman.

Paul? Thank you, Christine. Hello, everybody.

It was a tough quarter from the standpoint of our earnings due to some reserves and negative surprises we had along the way. The underlying core value of the portfolio, which today is gradually getting ever more concentrated in the Midwest, is incredibly strong. Nothing negative going on there. Farm economy is pretty decent, but not perfect by any means. Costs are high. But the core portfolio continues to perform very well. We got a surprising and negative result in a piece of litigation in Louisiana, which is a major piece of the reserves we took, and then we also have one loan situation that we continue to be worried about. So we thought it prudent to take a reserve there, even though we will continue all efforts to collect the full amount.

With that, I will stop and turn it over to Luca, I believe, follows me here.

Yeah. Thank you, Paul. Just wanted to kind of strengthen a little bit Paul's comments about the strength of the resilience of the farm economy, especially the resilience of the asset class. This is not a great year for farmers because despite pretty good news on both yields and crop prices, everybody's now reading headlines about the devastating impact of the cost items on their P&Ls, especially diesel prices. This is especially negative at this time of the year when they are burning through a lot of diesel fuel for harvest. So we are about a third of the way into our lease renewal process for the renewing leases, very focused on the Midwest. And we are seeing that there is a lot of uncertainty regarding profitability among farmers.

This is also a lease renewal cycle that is coming off a renewal about 3 years ago, on average, that was incredibly strong. So, so far we are seeing relatively flat to slightly up lease renewals, but we are still very early to know exactly how it's going to end up in aggregate when we are done. The other point I would like to make is that, as always, we are incredibly strong believers in the asset class, especially for the core of our portfolio in the Midwest. We see the best farmland acquisition opportunity as being our own stock because we are trading at a significant discount to NAV. And to that effect, in the quarter, we purchased about 1.7 million shares at an average price of $10.32.

This is all the comments I wanted to make. I will turn the call over to our CFO, Susan Landi, for her overview of the company's financial performance.

Susan? Thank you, Luca. I am going to cover a few items today, including a summary of the 3 and 9 months ended September 30, 2026, a review of our capital structure, and updated guidance for 2026.

I will be referring to the supplemental package, which is available in the investor relations section of our website under the subheader, Events and Presentations. First, I will share a few financial metrics that appear on page 2. For the 3 months ended September 30, 2026, net loss was $15.5 million, or $0.36 per share available to common stockholders, versus a net income of $0.5 million, or $0.00 per share available to common stockholders for the same period in 2025. AFFO was negative $2.1 million, or negative $0.05 per weighted average share, compared to $2.9 million, or $0.07 per weighted average share for the same period in 2025.

For the 9 months ended September 30, 2026, net loss was $11.7 million, or negative $0.28 per share available at common stockholders, versus net income of $10.4 million, or $0.18 a share available to common stockholders for the same period in 2025. AFFO was $1.7 million, or $0.04 per weighted average share, compared to $6.5 million, or $0.14 per weighted average share for the same period in 2025. Page 5 shows a more comprehensive look at the main drivers of these changes year-over-year. On the revenue side, we were positively impacted by higher receipts from oil and gas royalties and higher interest income due to a higher average balance on loans under the FPI Loan Program and financing receivables.