Farmland Partners (FPI) 9 May 192019 Q1 Earnings call transcript

Company Profile

Participants

Paul Pittman	Executive Chairman, President and Chief Executive Officer
Luca Fabbri	Chief Financial Officer and Treasurer
Robert Stevenson	Janney Montgomery Scott
David Rodgers	Robert W. Baird
Paul Puryear	Raymond James
Craig Kucera	B.Riley FBR

Call transcript

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Operator

Good morning, and welcome to the Farmland Partners First Quarter 2019 Earnings Conference Call. [Operator Instructions] Please note that today's event is being recorded. And with that, I would now like to turn the conference over to Paul Pittman, CEO and Chairman. Please go ahead.

Paul Pittman

Thank you. to webcast. first welcome conference XXXX and and call morning, Farmland quarter Partners earnings Good you the appreciate We taking these us calls. for time to join Chief this Officer. me morning Luca the With is Company's Fabbri, Financial over the remarks. I will now call Luca customary for to preliminary some turn

Luca Fabbri

conclusion this Paul, shortly you yesterday all the The release. evening. The of live recorded. to webcast for distributed after and thank you earnings release was provided announcing listening access May call A press in or through available XX, our numbers press Thank phone earnings will the the of be this replay are call replay first the quarter XXXX. to

For been remind May this of those this call. today, of the updated initial to XXXX, earnings are presentation, rebroadcast and have as subsequent you X, who to not we remarks listen the that made herein

make of rents will performance potential including we broader outlook impact the of call, business, and comments for well and our agricultural portfolio, our the as related future acquisitions our our this forward-looking identified and financing activities, acquisitions, to dispositions, the markets. as and statements, During dispositions and statements

We difficult on our are control. differ to risks are turn I also and report net on market like EBITDAre www.farmlandpartners.com Listeners CEO, the and advise listeners income, we Pittman. those included uncertainties, are website including these can current and statements or with adjusted financial to is X-K actual is and X, our These our beyond announcing our the and to an discussed release subject to to will current company's SEC. and after in non-GAAP FFO, yesterday available to generally predict earnings of many we as to certain back exhibit release quarter that well will result adjusted in Chairman press Risk of furnished which first dated cautioned furnished Factors closed and non-GAAP to comparable the certain review of XXXX. EBITDAre. documents Definitions our uncertainties as Form as GAAP measures cause Paul May measures, which and from expectations, measures, FFO, reconciliations press operating now most discuss the in filed materially are have risks Paul? our call the

Paul Pittman

look buyback year, at Thank to key farms a this When things you, XX% stock we the out. one, those Luca. we of we for approximately profit a Number quarter this substantial couple at significant XX% and paid at of above farms, beginning to stand discount. continue and sell a what

continue will as there We this shareholders. strategy upside as is our for long substantial a opportunity

and back somewhat turn am muted Luca to will and some be over through by our modestly our is primarily NAV rents highlights. going margins temporary. rates financial second is key overhead offset business, of operating rents with that buybacks. China are regard value to trade related but the goods and cost better industry be and for a point fourth is squeezed point repairs, will to or The higher it's negative to hurricane legal a land with agricultural on per for Our the a portfolio is constantly the due this blow-up but stock that sales and on fact relationships expenses The due also complete share asset in interest $XX by walk associated and basis reductions. With still we hurt probably it to - I rising operating agricultural overall to

Luca Fabbri

Paul. you, Thank

quick specifically individually therefore basis on agricultural our look knew cycle, on more at looking just is financial annual as really manual the into reporting Before should give attached and let we the that reminder is and lines affects to fundamentally me I interim we usual revenues due reporting our And periods, are fundamentally that skewed an months jump highlights, the underlying our significantly of that of - results works nature through evenly in of seasonality the all with you course business some revenues you large leases of specifically spread periods. rather than quarters. of and are to that while our individual heavily by costs a the reminder, the to due four fourth quarter bottom

quarter of said quarter at million, Operating income that, first total million, revenues over for reported the the operating X.X% $XX.X So $X.X of first we XXXX, of decrease a having XXXX. a that of in for some mentioned XXXX done. fundamentally Paul the as asset - just X.X% decrease well period have same sales we the the stock as over those because of

basic We per share took of of are negative and loss net per $X.XX. almost share $X.XX a reporting AFFO

XXXX, quarter shares approximately preferred at at of B side, a price completed Series weighted $X.X purchased first a average the XX,XXX on well buyback the million. $XX.XX. quarter, totaling stock we dispositions participating shares Also of the had of million of During we as the during farm of weighted X.X share, as $X.XX average per stock common price

common of $XX X.X As have bringing of year-to-date a quarter $XX.XX. at total value stock a at of common also million preferred to we average the nominal reminder, shares in the the the million. an Subsequent price shares just repurchased about weighted point this repurchases is at and $X.XX end, stock those additional B for approximate

the time first quarter common operating your XX,XXX,XXX As your includes in question-and-answer would and XXXX. of which operating fully stock we we that shares of my for for remarks of performance our on With Farmland session. to Thank basis, Operator, concluding Partners. today's you interest partnership. this morning the am like a begin on I diluted in outstanding have units the date, our

Operator

Rob be from go first Instructions] [Operator with ahead. question Stevenson Janney. will Today's Please

Robert Stevenson

guys. XXXX? locations of selling from should we XXXX? reason the selling are the of in types crops terms a the sold that particular thus or morning, assets, and what of farms you Paul, over rhyme And Good of certain Hi. in certain in anything expect far remainder markets

Paul Pittman

were on United based a based and/or we at to we transaction the of on done lighten and we the that respectful on way to wants. I long-term outlook properties because disclose where counterparty different and like good inappropriate returns we both we Midwest are selling can attained we've frankly what submarkets anything the region. these make we we the the think exposure. local detail. terms States transactions that and give to currently much would market that around rate it's of things extent are structured in give portfolio region mean of all Midwest - on sort - in other is is pace, are sales prices asset that prices for don't side largely the lighten so can achieved it, or made we than very that in our the just don't only to of think be of would you conditions, the we've exposed I sell much sales will the are are sell up We information total least the actual individually asset in All we avoid exposure. too additional we like at the somebody and/or we good Other the I just - disclosed, These where region; likely, those get we though little

may to balance important so, noticed It's come to to have sales - regions market very we from the One us you you of of an by and continue that gradually as some strong the year that, the market. in of regions in likely continue. Midwest percentage fully grant the some the the and addition the it because there is We be sales rest increasing weighted are we anticipated when sales expect currently our have. - would never incredibly portfolio. a also side is the specialty say, the we to we portfolio effect would That's easy we there though; Midwest as still are from important some other So, will were coming to the the away portfolio well as quite trimming manage, revenues as crop be in wanted. our we growing crops of specialty got I approximate

intend California will other be that Robert. Central sales Valley asset - hope the away be I from helps, tend in to the to So, locations.

Robert Stevenson

Yes, board these increase - pay current are of I is are going more relative and and part leverage it's more neutral - the transactions? these thinking trying you're mean to that? you thinking of are you then you you in about maintaining to as are leveraged How slightly stock, leverage essentially - how de-lever ratios buy or your back to you Are doing sales, result leverage be this? when you as are down to about debt leverage? so, guys essentially a and looking

Paul Pittman

is little farm funds to Whenever acquired the that of you should think of flow about farm; bit broadly of as whatever the XX% out give-or-take we closing speaking when sell a think is farm. mean we debt leverage it's first the paid usually very a on I I reduce neutral. the price we them

- going off money. time - The will tendency been at on push that's you're but reduce spend those time from got deploy pulls or the stock line. case-by-case that leverage make ever round back time numbers to further always to of always the sheet the to on So that doing. will at a relative value going to take we've transaction. the up or that additional acquire instruments price decision But total preferred you your debt at slightly to an kind balance close back the Certainly, be but that buy debt what that we you common - different reduction and your stock, the have capital debt whether of time is based that'll current in additional so

to neutral. ought roughly stay it leverage So

Robert Stevenson

last of that percentage one you've sort what have your of acquired some some on protection asset then and sort Okay, me, have tax them? for

Paul Pittman

None.

Robert Stevenson

Okay. Thank you.

Paul Pittman

recall my received contributed in the had - I But, OP interest last immediate The my add that right late that around original set right IPO year, the was shares. the of in reduction just up me the in XXX% of company REIT. only turn literally to in if transaction. assets the - year all family converted the given on you we that. tax common ever reduction I tax the Let my

One move I of asset. tax protection the the would any the was given reasons it that from did company on overhang

today left So all. there's at none

Operator

with will Rodgers ahead. Dave Please be Baird. question go from Next

David Rodgers

you which one you've haven't I Yes, guess acquisition paying - there a you good been around what wanted be that permanent just some morning, some near of some, would accelerate cash out enhance of little really question still for good - the term? in term and flow here on you guess of and sales, And, direction seeing bit really you for would and near yielding that go market questions are stock out - faster and that specialty guys? why a then and to I support are maybe yield these debt attention higher I not done volume the a your be you're guess, in crops Paul. reduction couple is, the asset crops assume up seeing follow kind in for there? even would I good that maybe the

Paul Pittman

and we're the as we're though, seeing in reasons the making, that to for the most region come in. the of end is you - in and higher variety that back strong, are that is I terms The in but minute. assets what a quality of own sales, aggressively for that see the that we fundamentally a asset marketplace Well, mean, for invested for range in I'll scarce very, is very we're asset the - not that in what of quite values particularly that accelerate are staying we high-quality can the the likely to sales of very reason asset asset

opportunity volumes light there quite at kind by you there's historical huge - on price. a the discounted specialty West and of and are nor Their example, - normal fair a a way just huge opportunity just means frankly anywhere capital for volumes crops you is to buying not Coast, in levels. So, deploy any probably even by are

divorce will your are are to volume below to a be into volumes an the When enough seeing or sell out assets a be a current Midwest expected. motivate it's today increase move generally historical potential debt market volumes slightly market the you frankly tend drawing the when because amount farmer the is that's not factor only high to some typical not of just The related distress. - additional movement seller. prices come and watch. pricing The That's Asset is average; of specific market reduce; that's weak or prices strong, of we a in

way cash purely flow; never Farmland my flow So, elements in of is accelerating way in in not farmland. has strategy, one. been return; are cash it's by the to terms driven two right a not invest opinion we and have to

appreciation the class care another. asset Asset both. The long-term about investors in is

every are you If investor - is course different. but of

will bent little If by to more tend are to a you yield investment your you have motivated current thesis. specialty crop

you are corn a and to you - motivated ease know, belt thesis. you to management, more of If your have to your long-term by, investment safety tend will appreciation, bent

rewarded because chasing out longer shifted you get to XX:XX because We - not where we XX. more now, used are specialty sales of a your exposure continue portfolio It like dramatically hot was frankly not probably asset that row had what about XX It'll that will strokes and broad, that close you it's have wish approaching position with we're in specialties you sales. good more - probably you make asset specialty you in between but to crops think the will XX:XX, to time, no as ratio class just a somewhere just crop. crop little it's feels whatever to find toward is to we right the so, made kind time but be different - that stay more asset over hot for creep I

are look, So, are working. discount. because is company, of or balanced XX% as are shares the shares going true we strategy increasing we significant and The my back XX% and largest gains shareholder value rapidly in at opinion - properties my shareholder stock to are buying stay and cautious selling every and this in that the

a true further know I We of at feel to stick it basis, price doesn't in you going terms and good are to disciplined very that's on look we the when stock creation it. daily - but will value a approach

David Rodgers

that $X.X with look are of respect down, does a kind the job that or like kind so a re-growing I as number back And the million to and guys the of first you of near Paul, in of think then at scalable G&A, on as future we you done level kind the are it bringing was in to said out level have up? and that great you portfolio, them scale you this have bottom quarter,

Paul Pittman

This probably but for and year year growing - mean double is the certainly scalable. absolutely stock a we we're I XX% of rapidly get - the so. every - reached hopefully could I we or can No, we can't XX% probably We a back can but, very portfolio; - can't when we growth appropriate like while will grow grow probably not prices would were at because we level, staffing were a this level, staffing again, do

from process allows we've efficiently. that of somewhat to sorts it building infrastructure and internal all so, great become and the our overhead of through, opportunity rate on we've more run that ought portfolios our some slowed us the that standpoint companies we catch to up inside have reduction, us the go growth the really of know You company - has allowed to fact done

we on slightly the management, farm from selling We of region. we and have farms location long do ought we a in cumbersome of that one standpoint to is the actually ways it compare runs the human being the when - that focus lives from or example, consider that have that - - for things, are offices, geographically how that much in we wherever

go make actually that doing this we this as process. little easier So, things bit through are portfolio manage to we a sale

Operator

go will question Next Puryear with Paul James. Raymond from be Please ahead.

Paul Puryear

how a sense top-line you line for dispositions you that? Paul, and looks same-store past would morning. over year, look? have out could netted basis, the on Do of the revenue how sort a Good you comment your if Thanks. if on acquisitions

Paul Pittman

a looked for Yes, quarter bills and look in gas there had supplemental at tax quarterly skewed reimbursements the if the first year, our so bit, of in still certainly and, that straight the revenue of It revenue P&L, those a last quarter that you if little lining other in a that most do if acquisition AFCO the the sense important yes. you at is significant comparisons our obviously through are and you getting largely due see things that property with supplemental in that's had at actually to top-line a - is are for the are what reimbursements; have we're had comments coming because those supplemental the numbers quarter tax will - of reimbursed by reduction and year-over-year we looked reimbursement but, We P&L issue, less fact not and that and you and of the are that, technically to tenant because Luca's bills P&L. context the tenants in

less like that, drop looked a didn't; how had truth get in revenue to from that the it really not tax it works. are you It's our if entirely largely of thousand work. fact not you how reimbursement get is coming with contracting used tenants in hundred of reimbursement couple - that accounting terms they coming know the we just you So, of it's and just than we

years cost-of-living today. in adjustment. that That's So supplemental but we've per ago, The basis, for to our approaching modest or increase a a of That you, embedding portfolio, leases exact we because terms a a there X% I embedded dollars X% bill a sort half portfolio significant anymore. usually third the is all an lease. number lot annum, we on got in so probably so have percentage Paul, because less - don't just leases and no in of are a - same-store a getting started few of in almost of the annual

renewals pushing forward this increase X%, in the in when rent, at say of year year. gradually up, leases did you for I this a rent third led that's roll little you less usually we most when to approximately but any you've increases given a X% recognize bit So significant only renew X%, that our third rents got we significant than going of

So When went company, powerful you that would properties. handful of couple and at where doesn't a have on effect. properties rent we of probably have a like then backwards any we super its - we and troubled least

that our about we That of something probably neighborhood good pretty our you X%, when stream. and Ag in X.X% in increase net difficult it's the rental portfolio-wide, maybe So manage economy. have standpoint you the feel is, from we business all that of together how somewhat

hand, line would trend the rents the X% about in a trend point be expected year, getting line, On we're it's at way to time. long-term and this behind in other per appreciation X.X% X%

we Hope So when. the it hope real that The norm recovers that we Paul. will. historical think it helps is question frankly

Paul Puryear

very that's region - Yes, any if would helpful. helpful. And by you be commentary

Paul Pittman

Yes.

region the call - So where things to other going And difficult reasons the by out I'm more of are couple two than regions. regions.

decade most the think the in Ag are difficult a that a China quite that So so the and a the on focused regions exports been become And from it's are Plains, in two maybe that's soybean Dakota the obviously hurt region Minnesota bit, places the like river region Northern struggling transportation. half a very as or economy that. is last standpoint to I had of the that

of get edge negative Chicago law. border to entire to out doing anti-corporate Trade basis southern not markets, always of it's the one weighted of because way, trade and compared Dakota, Farmland but it's in farm a the region in those region. at at luckily that in got of the farms region several It's own we're South that just other costs. we can handle Board meeting very We states It's discounts okay. that in Chicago transportation So because very to

From the we mostly So exposure, reason portfolio had perspective, never just don't but we more I of much Great, region. long-term explained. frankly the great there. for a built

that Kansas, that's regions. are Western other costs High struggled region is Plains sense The those Eastern high Western very the Nebraska, Colorado so from in transportation think the similar the

probably bad That's where are you're the farmers. in roll challenged in so ground holding region those So areas. other we're region-wide process, but basis your levels our rent

rapidly in the reflect shared We crop region, tends the increases bit High have decreases. quite which in a and West Plains to rent of very

year last. share between already but year, and a bit quite or we've a taken of three almost pain last year, that up the year-end in this between change environment, huge crop years the So change, year. all it not the This shows frankly of four within ago,

rental change the see You income. in

incredibly very, the value very by pretty tenant big the and competitive strong very of farm As goes per in Avenue high meaning, in as the that. far Frankly but cost increases farm soybeans generally that's pretty challenges the region. Frankly, not of standards, core as not That localized certainly rental production reflects real kind across portfolio. efficiencies region situation the the worldwide vibrant years it even largest as so estate, in good in low. occur surprised that always base, corn of unit getting we're of terms economy, that regionally. that of really The what am Illinois, very is the in Midwest, in very rules five economy was and of strong state is and Midwest. and of seeing not I agriculture itself country as rest the of which portfolio the given ago, a our good, is by strong that's I Park US say the, rent and terms

Paul Puryear

didn't I can And remarks, lawsuit? you you tell about in on your lawsuit know comment but us anything the then the

Paul Pittman

Yes.

likely Fortunae are at to those and that not - point, since out. Rota and dock give That up where the be Hopefully a have claims is just of the merit dismissed - did find most where basis, to us So We'll Rota the the shareholder, basically for not that. filed will that. on going will and dismiss screen in unscrupulous that Fortunae brought on assuming grind We're and shareholders. it be a to that we a motion lawsuit, less. that some granted shareholders, the motion dismiss back is to we on article filed to lawyers sued class-action a scrape off

to it down their It's modest the have change we some, to for level. do grind strategy. mention through but that's continue no the is We spend new which didn't just you're slowed and because nothing but core courts in short process job frankly waiting why a

Paul Puryear

And and any happened trade you aware, noise one to us, for wonder negotiation, administration how then just with any thinking. everything have with Thanks. one the for change respect to given you're sense the Ag last that's I all is if as the

Paul Pittman

for patriotic my whole. to hands table off and farmers did up help grew its and the to Trump although is are past. The the whether in answer benefit taking the that in here for side United on out, pretty of any is they generally Probably what's knowledge good Chinese if they things is, tech bad trade certainly nation their really the agriculture. had issues. the like place probably negotiating good blow to the on of that whole related war to press the the or this technology and farmers reports not I reasons probably deep But had a the on and regard transfer to White in some is there's with frustration States have as for some don't those in team. House the and brunt based of threatened of amongst good the the going great say people very ways we my not perspective. - administration agriculture, My ones guess We, for group And complete and fact negotiating in commitments transfer deal from backed makes the thought thing that we sense team that's to things largely

is Chinese I buyer. of agriculture, in XX% worldwide form exported crops it's trading or agriculture by and relationship thing the So is US being hungry, is consumed. don't a world I sugar up think that want is I -XX% mean for are production of to complete the some coat. means good roughly hungry biggest a China production that fashion. either the most Blowing though no counterbalancing that a

have going short-term apart farm dispute falls here view to on have, the So that if our is it negative a is relatively will operators. trade impact

up Some government of helped through out which transfers can for money make the from be that. to

themselves, And both For and think growth far why this reason rates long-term land relatively modest. short-lived. that rent but the in we might asset life that'll of investing of food the in stone. opinion. class that large scarcity I've demand land impact they my asset that in everything the rents values our farmers is class, underlying don't change less It in end as more a And are the out will we values, and fundamental And set Farmland much. the through as top take spent be on the of the it's pull on the and in it invest portion very or

Operator

Next will go FBR. be B from Craig Please Kucera Riley, with question ahead.

Craig Kucera

today? assets quarter-end, you a $XX marketing of Hi, to good you of million do sale closed morning. the you're subsequent currently I noted that the assets for but that on have sense for total value dollar

Paul Pittman

I to country This asset are on of our is tiny piece but billion that institutional is radius asset. buyers given price. of I this across market, drives your is market. that is time happy be with them, what XX-mile a buyers to are sell They the Institutional portfolio at site everything are best the them, would we price. All to tiny, relationships this one not key but active and a certainly to be buy mean with market. that's time right have from other sale XX and the the any the every is always market sale, for mean, in within Well, or right single an individual for

do out this market bunch you of works. you on a don't how of go call put up put So in What are points know stuff is who's the just whose to kind estate you market, of bunch and you that's a and a broker expand not real not are all know neighbors and trying time. on marketing basically at and every you people those who to your selectively and asset

So we've you our assets sold? assets today sold we total in I do what the of think with-- supplemental. volume we handy Luca, have it

Luca Fabbri

XXXX second the starting total million. of $XX is The about quarter

Paul Pittman

Yes.

we'll - is guess about we'll round so if My bit. numbers $XX on better my little that maintain than we guess So million little million a case, is quarter a average. that's made accelerated running at of $XX not assets,

these capital. investment to stays as growth a are as I the to the I'm long don't continue who don't sales but selling welcome shrink frankly as me the people very we're think and like it's And low, view These And market, company can I time. share just And telling it's back As guy, assets. we like those company the agree $XX. $X.XX believe mean the our buying free country, simple, it over but people we, one beauties that them and sell with of than is so, say best is are today and our or the a and that. I market, a stock I price don't I not guy, something great make let free standing people it's like keep of over it's there assets. every capital to a sell worth so And outstanding it stock are that. making again more to at money It

was and every on stocks impact worth We if average lot we really are - if shares $X bought far. those the money, a of it's - bought so $X, $XX so value you think lot and on a we did back around of it of the back of the mathematical you share one generated

Craig Kucera

your it based Rota in on A Fortunae commentary or last to quarter G&A. a down. want said the spent that slowing we in - valid $X.XX to potentially Should suits on it just lighter? you Is be you might sounded I thought that it the shareholder to may $X.XX the I And is back have Q impact. the circle think still Okay. and And

Paul Pittman

I the only number now. tweets mean I I run think is less for say than coming to litigation continue with the would of I that process. out thing White and predictable the strategy House

know what while. So same I'd here. don't for number sure will I the a for happen run

Craig Kucera

fall. Okay. it the all in assess into or one me, more from Is events to until damage fall this any the at season And still harvest weather next with update on early get last we there? too

Paul Pittman

farm significant the most - had past, property this excess this or a think lower else, the have The somewhat remain but remaining really therefore we XXX have otherwise one XXX we'll of we but harm event, a amount that Not heat, That's will we avocado year, was. result in had. Everything company-wide potential where in have what is farms a harm would of negative probably don't through as the year good kind it the we we as out where we that a last substantial back heat year. own. know haven't the of I We only the action. mean, one seen flow the P&L - suffered and about talked yield No. quite that's big

mentioned, lost think had, we we almost every. I we and

insurance. I big pre-corn, we grand which many tree lot hurt Last crop things, year, not a quality scheme diminution. mean The why insurance themselves that's lot back new, covered long-term It about, we a it planting pivot we property-wide lost farm. of the impact. in every little the I farm was bit basis, we Georgia. not had been big we old single this is is when really and but over of and farm nuts season. that very over new was I fall the on of that substantial asset the on of the pretty it. really the think in a have to now of see pre-corn is Panhandle hate the think talked the the a any a - I lose this of property share Farmers trees in into most in Florida, replaced, corns action lost a loss Those mean a not the on over, pivots but you with didn't not,

plains least the bigger is soybean there hurricane of in the going So The crop is relevant. last terms thing and quality the V doesn't on and real set getting dries let of at this two it's it the the out. the real ground, to completely and challenges dry markets and is in to due if it sort Midwest. If moisture on in high spring That and because seem due the those wheat the dispute. it But the temporarily temperatures of cold it's terms planting. then to crop problems cold get wet wheat and planting of exacerbated just corn, the some crop back in spring trade farmers year's lost into of wheat other, each crop of of there - challenges out a also wet in the the pace excess the that excessively commodities the

or historical say the probably end to substantial. so you This this by crop average yield most loss. XX of to think corn it's but planting to around per that XX% every that's half roughly an USDA corn the or get planted probably any need is state, nationwide a XX% up Monday, experience crop different average, acre a be or I XXth XX% having you is report X you are people yield out on have impact XX% of on May to meaningful progress On if There will levels. will by the planted in going another days, start of way the from we there's that have don't came that you date.

going so that's thing. start I'm sure to you're not From a to yield have profitability industry an bad significant perspective, And a loss.

the it Then if on do. by get the the you but I I it's traded You're you press they smothered Trump news it's recovery none the this in of to farmers. tweets the - now. commodities war have better see that for But alternative, not completely that trade would it's the that Sunday crop I'm be with at rollout particularly guys, as Because regarding read They week. volume in higher right that a out sure war that's going said, been ground total corn, and the the story the last was there, off balance big religiously the dispute on but be - Ag price they are as would like for less may don't price. the and news trade

Operator

Farmland. Watson be go from Ryan Please Next with ahead. will question

Unidentified Analyst

questions my of which right dividend. Most past decisions have cut least seriously. getting already now picking dividend the you've been about Xx answered, very value a from in you're but buybacks spoken creation The at Paul

AFFO was you negative, there the your mentioned and remarks. in that risks opening Given

and considered guys buybacks? the dividend from all the That's accelerating me. eliminating you So

Paul Pittman

on Luca basis, it, just obviously Yes, more annual correct, definitely that this considered accounting cycle in for we cutting the thing through decision this but each so to with fit is basis, a not we we're AFFO certainly well it, an when does the a industry. want his quarter. an take revenue but for a not alluded to We negative of quarterly considered very not comments. or expenses quarterly considered less it on annual me, we maybe board, amounts business running P&L, dividend our the the cut we completely. I equal One

only You take quarter. fourth in revenue the the

has So different But that. on an look, basis, consideration. saying, But not every this reason we're level. what foreseeable appreciate here's that a investor change in And opinion Ryan. annual the AFFO. dividend will this negative the not you're we I on likely and we're not; And the Every at investor dividend future. is, it's

disappointed and comments says believe that we some think then kind those at people after as number that would I the the lines. complaints it back all investor probably struck some kind it stock inexpensively we position an cut much dividend important bought so get get equal And as from investors, and get back it's of that And right stock just I along did. as phone continues, buyback and struck I to you roughly that I the each taking calls They're we of of and that you you're about want We who take side. go balance dividend can. say paying a because as

high, Board that and change And foreseeable are, where of But future, always least the my remainder the the for year. this we exactly of it. is for kind stay be could we that's So will we judgment at where are. early it probably would

Operator

Next ahead. a Investor. question will Jason Private from be Allen, Please go

Unidentified Analyst

growth are And longer seems I on you've the in levels. spent an are because capital the forward a a plans and Series questions And and number morning. you're follow-up that. what that structure of Good like given expensive optically your capital going What going forward about no debt after of B mode? thoughts it have Preferred a talking piece your

Paul Pittman

cheaper in of used And have lot out the good of we cost a Even so we sold. largely a it for actually excess a security. security it's the OLM it's good coupon time to occurs, in assets and price we till acquire and the mean than well leave equity. ratchet we return to I there up that announced the no, that Yes, which preferred when today likely a

is may have it's a with that actually near that paper, good alternatives world straight high no, well it's it but to So equity real do the that actually you'd actually it's, we comparative term. likelihood good looks of us not --SO debt. largely priced in piece instrument on replace for to We and think the anything and no security security in optically compared drastic

Unidentified Analyst

duration thoughts follow-up really have that you on as your of debt going forward. assets, profile going with on kind and the your given now long-lived far floating of average as versus and what of kind And fixed given, you. forward are on your thoughts Thank a debt profile

Paul Pittman

things to to Yes, maintain more left always a and well, been cheaper from bankers, decided Hindsight's what if one to probably better And our we and have fix leaving some under floating. all would be the every We fix will it somewhere fix then have. vein shareholders We we would floating off balance XXXX. we we pressure things own now others. single fears, we floating. fix to

stay the been curve shorter beyond XX years get you've you've through. adult recent been of era has So perfectly for but The rewarded been you yield I not mean life. most you And end were, I'm in so of right. most never the my rewarded that floating old, on to the that curve the just such environments

want to be because floating, continue we'll painful. think too wrong. you It's I get so to don't you just And that bias. XXX% maintain if But it

to I approximate we'll fixed stay. --where think of - So balance where floating will our as

Unidentified Analyst

--that's little you. kind bit. Take hedging Thank of

Unidentified Analyst

Yes.

priced tractor. fixed. higher We pushes always bit. fixed a are you buy are are got balance move hedging John, why on to sheet. lenders the always some That's to to The pushing But, they we you

surprising, it's So that's point view. their not of

Operator

from will Holdings. Kurt question Albertson ahead. go Aspen Square with Next be Please

Unidentified Analyst

and could provide be the the of you, vote I regarding, just going results shareholder the had a some on of there Thank for changes question color you you. the Thank will on nominees operator. the Board any for Directors board? Paul, if forward

Paul Pittman

to was received enough always think don't Yes, regulated. such to votes of be do disclosed beyond process that's auditor was of re-elected. anything approved. want we've - The the I appointment Every member is publicly the what proxy highly unilateral we Board because already I a

of please I I - Erika one I think or can't might what think it I remember but that don't help, listening it was. if resolution been are know the Luca have you

Unidentified Analyst

like nomination million Oh. kind specifically; shares looks only X.X of X.X. just was it Mr. versus receive curious voting Bartels I for his

Paul Pittman

Yes.

happy So, about thank that over the talk go you didn't to want for I'm was to the domain. or just it because line. it public in I

delay for some So it reason same or like it the room and Cut public is in in it's the okay and sounds me off to are - domain Luca I today. not

Luca Fabbri

No.

go can ahead. You

Paul Pittman

Yes.

governance. of They the Governance do lower not in and XX Downey, than got the non-members committee got the on in members committee got who level. governance votes. are serve tally of the materially Chris is our The the the XXs Bartels XXs received approval vote governance a the Bartels of - range think Mr. and Mr. he that myself in percentile Committee, the So, on Chairman receive that I of all members committee did of

was terms of that anybody of Bartels, the he is nominally else. than he I hit Mr. think in committee So worse because Chairman

what bit the company. for I because in he an the correct him he little good a to believes think individual that's frankly is is faith, as and board doing unfair

quality of of their one of our agriculture diversity and diversity to they the But investors. do They think company don't of I is think our goal - possible. not like goal gender don't they It's our itself committee knowledge Board. one committed leading is the The from where of perspective the the works. like I recommendations our having on a diversity our to Board and governance withhold ISS - board. in industry ways and that had not - a the the bylaws of leading by high institutional board is like

to members accomplish been have and to qualified is Board to somewhat limited. pool of that able because We proposals not made add some really candidates the the diverse

chosen And join so not to they've Board. our

that So problem, solve ticker sort the go going of we're just box. not to

going thing to So to time. it right and the on just over continue focus we're do

be It the act? as be is We point that bought the a that the for today And some forced company this the carefully bylaws up Board Board all have we share. a - don't think far be smaller shareholder would and when the right bought would actually group remain would issue that the right and at with being the of a As is is can to what - not company long-term is considering five have for with IPO that best reasons strategy. continue down think interests that. since have sell say shareholders. be think view. shareholder or Our for necessarily but more bylaw and shareholders, of a just we going stock given some happy Those disagree stock would should example. the ever I'd you today. shareholders other by the value actually is to why the shareholders of may we just at to They frankly of it probably interest that move issue, of through heartfelt price than XXX be trying structure that's that's who disagree view - done to ISS shareholders who example and And reason the a that shareholders. properly happy, it's more change Act divergent the buy Board We well I balance What on for group that able perfect that's value. example to to

the that on opinion but winded that. recommended I Chairman Committee. of brunt on the than answer ISS be and and hope it happens different the So to that's our of they withhold fell just think kind Long I Governance It recommendation of helps.

Unidentified Analyst

in-depth if we the the then it Mr. more Does actually shareholder much one board. share a say he he also year, not with that on like he it's like care owns It do but metric? shareholders there mean pleasantly the Yes, looked Yet well, something eligible I meet Bartels, to was a are appreciate and is seem going the are Is shareholders hold a cash that disposes nominee even that shares. valid have times vote where don't every times he why was based only pretty Form the vote couple because shareholder say threshold? reading the I what very color going of. three Board on X,XXX just in like even he like even on of vote, a a X explanation, issued portion, the to It doesn't opinion. shareholders change

Paul Pittman

- amount it's well certain --what to over I referring Yes, think years. is period of he Officers you're that a supposed of we've because to Directors is, eligible have work a ownership we and Senior are to

time concerns stock. absolute I happens own of the but stock. and to the don't they their to has selling from hasn't like by selling of think don't time. got didn't, because wish each financial it portfolio, timeframe I level I I So there kind their directors ownership the own don't in like director to --of to their and which you've have like it with regard get Look, issue met. been you

believe our and at in look at to the of I think to is I I and process, value all board. Chairman to works underlying it. there our key continue is highly because continue is particular a highly buy I its acquisitive process receive votes to the But way at you, the necessary and the on to these at be assets he market private almost am prices. of some shares set the don't as is been is hear quite that continue stay time. in stock we'll think it will there prices acquisitive I Kurt, of I've - CEO. voting that traded number me

Unidentified Analyst

indicated having $X.XX vote any the for by governance that clearly Okay, manage the corporate dollar. impact investing potential on with some issue on has are pretty Partners, trading shareholders the that, ISS disappointing committee. an to feel issues, with $X.XX thank Farmland you why you Do on perpetually and that at color for with not

are an investor, I what buying question. What's not guess why you. am people the Thank money the last As missing stock isn't, and called there? I that's my smart

Paul Pittman

smart I money is buying think the the stock.

that's that in not they the ISS believe in do. and is firmly have kind what the and directors directors to way. do for opinion, take to appropriate of believe a board my look The the particular ISS legal right, the what does company So duty running to I liability shareholders not do recommend.

right I people governance ISS a horrible governments you nationwide XXX% have corporate you recommendations would think for the actually answer be for single Because think and company they it the what I constituency. as that every put have who the are, frankly truly turned best of may were of not interests results of the their if a supported. at least company. of is be would done point view well-intentioned out to would believe group in over But

agree just whatever do I so don't you should says. And that ISS

the the ISS private appropriate for decision asset our thoughtful when recommendation in where the is most people, the it's valuation Board did they're on go to of businesses of to issue. that for take a based anything can't smart could makes that market maintain that's given your just I Because think but and our losing ultimately thing embedded the in value seriously you to the market issue. company, position and hold. discounted corporate what up assets, with mistake on consider a governance why ending that sense you and you determine board private particular, that's for really of hard underlying particular in lead continues assets view, a that the the a that motion you company they disposition short-term shareholders do on to Board That's our the all to

Luca Fabbri

by to add as note publicly overwhelming boat virtually our It's is of just the REITs. all one REIT on in Also we bylaws actually the majority view traded industry. shared same are the issue, more the

Paul Pittman

that what Board it the REIT understand disagree And that the point relatively making. of is This hard industry for private tends is value it comes on through I'm to easy the assets. issue. the Because market asset to

Operator

turn time, remarks. over this session. today's call Paul the for any question-and-answer will At Pittman this closing to I'd like back to conclude

Paul Pittman

Thank operator. very you much,

quarter your We For And Thank all you markets company. call. of as interest again the continue to you appreciate the we'll on look in updating do you. the forward next conference unfold. to

Operator

now has everyone may The At today's you time thank this want to conference We concluded. disconnect. attending for now presentation.

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