Farmland Partners Inc.

What they do

FPI owns and acquires farmland, leasing it to tenant farmers, and also operates a loan program and a taxable REIT subsidiary that provides purchasing services and direct farming operations. As of June 30, 2026, the portfolio comprised approximately 70,100 acres across 11 states, plus four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand. Approximately 60% of the portfolio (by value) is used for primary crops (corn, soybeans, wheat, rice, cotton) and 40% for specialty crops (almonds, pistachios, citrus, avocados, strawberries, edible beans).

Revenue drivers

• Farmland leases — Primary revenue source: rents from tenants farming owned acreage, with a mix of primary (60%) and specialty (40%) crops by value.
• Agricultural equipment dealerships — Four Ohio properties leased to Ag Pro under the John Deere brand, providing stable rental income.
• FPI Loan Program — Loans to landowners and farmers for operations, acquisitions, and infrastructure; generates interest income.
• FPI Agribusiness (TRS) — Taxable REIT subsidiary providing volume purchasing services to tenants and direct farming on 1,845 acres of permanent crops in California.

Recent performance

For Q2 2026, FPI reported net income of $3.1 million ($0.07 per share) versus $7.8 million ($0.15) in Q2 2025, a 59.8% decline. AFFO rose 30.6% to $1.7 million ($0.04 per share) from $1.3 million ($0.03), and NOI increased 2.9% to $7.1 million. Total operating revenues fell 5.7% to $9.4 million, reflecting a smaller portfolio after 2025 dispositions. Six-month 2026 net income was $3.8 million ($0.08 per share), down from $9.9 million ($0.18) in the prior-year period, while AFFO grew 5.2% to $3.8 million.

Strategy

FPI is actively streamlining its portfolio and balance sheet, having completed 60 property dispositions in 2025 for $90.2 million, reducing debt by $43.0 million, and repurchasing 3.4 million shares at a weighted average price of $11.07. The company sold its Murray Wise Associates brokerage business in November 2025 for $5.3 million and exchanged 23 properties to redeem 31,000 Series A preferred units. Management continues to evaluate further asset disposals, with proceeds used for debt reduction or stock buybacks, while focusing on improving operating profitability and cash flow.

Risks

• Tenant profitability downturn — A sustained decline in farming profitability could impair tenants' ability to pay rent, directly hurting cash flow and distributions.
• Commodity and trade exposure — Crop prices and tariffs—particularly on U.S. soybean exports to China—can affect tenant incomes and lease rates.
• Weather and climate risk — Droughts, floods, and other extreme weather events in key agricultural regions could reduce yields and rent collections.
• Concentration in specialty crops — Specialty crops (40% of portfolio value) such as almonds and citrus face market-specific price and regulatory risks.

Outlook

Management raised the low end of 2026 AFFO per share guidance to $0.31, with the top end unchanged at $0.35. They cite a resilient farm economy and expect to continue evaluating asset disposals in the remainder of the year, using proceeds to reduce debt or fund share repurchases. The company maintains liquidity of $172.9 million as of December 31, 2025, and reduced debt as a percentage of gross book value to 35.5% as of Q2 2026.