FPI - Earnings call transcript Q4 2021

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Operator

Good morning, ladies and gentlemen. Thank you for attending today's Farmland Partners Fourth Quarter 2021 Earnings Conference Call. My name is Sian, and I will be your moderator for today's call. All lines will be muted during presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions] I would now like to turn the conference over to your host, Paul Pittman from Farmland Partners Incorporated. proceed. Please

Paul Pittman

time Good year to and turn XXXX appreciate taking ma'am. quarter Partners webcast. the and for you full us for and earnings the remarks. call morning to you, I'll some Farmland welcome fourth We these James Thank calls. join customary now James? to conference call

James Gilligan

the of you, The press supplemental and website was earnings year afternoon. sub-header Paul. other release The quarter presentations section Thank materials, as distributed was package Investor under the to yesterday posted full our well. announcing our Relations yesterday and fourth afternoon

For to those remarks we made the call. this not XXrd, of the will of as this will today, February who presentation listen to here XXXX, that, subsequent remind updated you and recording be

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

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

Paul Pittman

Thank you, James.

Farmland going later just I'm the of also James make comments, itself, Ag although about of the a minutes and Company economy broad So, of in conditions really topics, and to call, two and few particular a the then through for more general in Luca the detail generally. let little I'll go kind performance market

start about quarter So of operating strong income when by year-over-year compared this quarter XXXX were The fourth really I Company. want results to growth, was compare also XXXX. very, saying, XX% We the for to fourth had about and XX% outstanding growth XXXX. to full I of you revenue year think quarter year-over-year if operationally a very

from the we that. If suit to for and share our up with We've year. XXXX you Mathews expense XXXX Quinton action year ongoing got AFFO with XX% litigation aside class the the set and associated the that Saberpoint per with the had

involved not still Department on based that as in company have that recent appears litigation our actually on mentioned if attacks news as short-and-distort it the I attack of we companies. drag related all attack. Justice the to As well the from briefly, the other the But comes some investigating is on reports, the financial of parties

those four litigations. we So finally positive maybe will a after result three or in years, reach

of that fixed our they the strong. the every year revenues, we Each about similarly we a about XX% about increased year, shows portion third which were rent the of very, And renewals to cash entirely of row and look XXXX. operational the percent. of think you half will the moment, year. a matters of at is portfolio almost we turning that did in third back is What for and XX rent strong that a renew really benefit very was be If crops a our renewals in row crop overall rent renewed portion renewed XXXX those The XXXX is in up rents up of portfolio, in primary we XXXX financials.

increases this of XXXX renewals The some this year. are about a in You'll likely guidance. about even see we talks to in year we'll at renew XXXX. saw third will the And fixed that higher do rents when than we those be again, James of

the the era that the since frankly, little a overdone, seen Agriculture sector up grain in period something land or like showing input maybe prices, in stay our in and XX% included XXXX to corn a to of year frankly nationwide belt the that's in portfolio values prices, think economy probably across year, that turning Absolute are farm in another the seen land arising I board the strongest in strong I at land XX% for core rapidly. entire -- but the couple especially strong very but and the farm increases. increases farmland land view period production. a very, XX If I've very going XXXX, economy we've are think least. look very, certainly very statistics generally, you probably and more. our the prices, the even values up basis, the the market over This in for on years, high at as is that of to values of corn-belt likely as up is XX

efficiencies. It couple an profitability strong a for last the the and and for year see auction of to at significant in That an boom $XX,XXX sort in The speculator not often This outlook minutes. $XX,XXX due but up increase strong. driven the be. farming Midwest acre for is in increases of conclude years. is continued also is today, largely a the are the grain on profitability farmer is farmers. driven If coming might reasons. farmland. strong This matter it a of really a you of by of or sell very being in and farm you will is done price in XX% a boom, auction show very, strong should And based grain in handful price, fundamental as the that's the really yield profitability purchases

led America year the the in those regions a and likely all South in corn sudden into in created base dramatically. jumped demand crop always suffering some long-term and primary new is is that demand and hit certain harvest. And is clear growing. still many increasing 'XX, in due for South harvest prices of then most American of scarcity in a because commodities. summer American in to weather, commodity as hiccups period world, you've to stay And weather And fundamental 'XX, is certainly the have pricing low south the That going soybeans of and relatively we almost they're the to rapidly First important XXXX reducing prices experienced significantly the speak. that expectation 'XX of on in we from the XXXX the place output strong is the of with

on? degree grown market. not important increasing but although crisis for And an terms of not of other bias is grains. be I own of and into frankly It the longer. will here begun in face risk that increasing it to ethanol the tailwind An demand think supply in a finally, last supply biodiesel to and additional grain The haven't certainty in same with significant farmland will risk an I the in through feed 'XX. leads grow time. maybe grain a really producing inflation. this historically. soy not in is continues States. higher been least And and we premium ever amount the you rest may time the asset the then States, That long believe, growing season demand. exported going of issue food prices a built course, and go is Oil is question. course, go the and up price beyond. yet those they year, a period as all probably of weather inflation, quantity uses rapidly on, see last in There's back some will to XXXX just commodities Ukraine be region there's profitability being is, is to United how at My of question primary seen world. growing the for acreage may course, therefore of United of for not that there's we thing and The And if farmer to then the over the Russia. and the the the well, level going of have a significant It's this are supply continue isn't it of of will demand through strong obvious side have that is certainly inflation at

inflation. to to values. a it's an farmland think Farmland driver hedge little is big, historically of I it think beneficiary once tame I a That going that. big of be gets started. we're And hard been a excellent continue has against to

bit to people some over I'll do bit then, the deeply. turn Q&A take want some Luca about back operational have it going in slightly probe little to come any additional generally. more to talk a Luca make specific the to little regions questions a over And detailed So, portfolio and comments. I'm and during more and performance and you

Luca Fabbri

three would like with Today, my you, that ideas are there Thank comments. I cover Paul. to

I COVID by specifically of on XXXX, much crops, focus crops on was were pandemic. not the that indeed portfolio, foremost, would in California, most pandemic. industries while other as and with operating throughout any like as point nearly Paul’s impacted In build were agriculture performance specific there our as affected First our the some to recovering permanent

affected lemon the there had in financial. we that some trade that citrus and example, Also XXXX, in in impact demand for our For particular, dramatically our trade were returns. disruptions bar saw lower

reflected as have variable well portfolio. as the farms those in our and We directly in margin in rents strong seen XXXX, over crops both the in operated as XXXX in gross a recovery

point address second acquisition I like activity. our The is, and to disposition would

During totaling and dispositions $XX.X totaling XX we across XXXX, XX made million acquisitions million, the board. $XX

fund. continue continue farms. our OZ management -- of Zone us were to Opportunity increase I would size. dispositions, out $XX.X farms those a this to in and the sold acquisition cap revenue we disposition therefore Fund specific really portfolio Opportunity have gradually that through So fee produce do margin in the that very, and But to that million rates to million Fund will $XX at the we in to improve And secondly, our specifically, modest we portfolio activity we continues the that those Zone for this of our manage in to like very point in appear

discounts, year see we was we not like and to equity but the the so for B the common that It our quarter, And I common that, instrument call just our event cash will address over price in gave balance fourth fees. our The a which raise B and to conversion conversion, Series viable XXXX, comments quarter. XX%, the those it price positive sheet, to issued containing XXXX. for course to this de-levered highlights, increased us which was now quarter the increased At overall stock of is were today, is an Finally, B conversion capital of it James earnings to common between it, general. to by financial full another release in importantly, of took creative in started time would in -- converted be to the the Series my I Series impact capital. us turn fourth in at the important of great the that without and magnified beginning James? for supplemental. XXXX, and equity will equity common the when access flow underwriting when underwriting AFFO the we some the cover place us avenue fourth the time most of With

James Gilligan

Thank to package you, supplemental my I'm to going in the Luca. refer comments.

information section presentations materials. X is XX in package and and the package the XX the pages sub-header reminder, supplemental the a and release other of Investor press contain our through As XX of website Relations financial under available contain information. related the to the Pages

available for to million for compared litigation December $X.XX that compared income and to million share to cents for ended pages income was few $X.X net shares share million to X.X XXXX. will for for share at share was million Adjusted for litigation XX XXXX. weighted million $X.XX million. Net average for $XX.X was $X.XX, XXXX. financial share common million. for X Adjusted XXXX. a Adjusted weighted income XXXX compared on per $XX.X XX.X Net million per months for common compared $X.X income compared diluted, million $XX.X to metrics appear I was stockholders the XXXX. compared negative for to $X.X available XXXX. diluted AFFO XXXX. Fully diluted AFFO for to was as X XX, for Adjusted was to $X.XX $X.XX negative positive XXXX. compared $X.X for AFFO AFFO was per stockholders First, negative $X.XX of net average December litigation to to $X.XX XXXX. for $X.XX litigation XXX.X are XX, Total today compared debt million was

see Credit. extended five from graph XXXX. to from Earlier with shifting price month, Rutledge can graph to term of supplemental X.XX%. XX. extension $XXX facility plus to X.X% Next, spread a the initial years information I on the to shows LIBOR maturities to your draw year. pattern We by X.XX% the At Farm with SULXR-PLUS grid XXXX. of of and changed bar of The our XXXX bottom The we X.X% you debt completed the million of this page page, will a debt attention

new While partnership pleased Rutledge are Farm pricing see we disappointed continue the we the to are to the market with still line with increase, in spread and Credit. is and

income overview will Next, page I to to of turn provide XX an our statement.

take Let to at table the talk to of a top the page. me minute the

loans. fixed payments rent, rent to portfolio, business revenue consider a vast payments the the with be rent, farm into have fixed payments. recreation of start majority XXX wind in this try simplify baskets few fees We We reimbursement, rent, rent, on risk. management multiple streams. interest Fixed solar to described fixed the tenant fixed these income include over have which low represents and farm We table. We of payments. in farms Fixed many

before As the a of variable is the percent This fixed point of of in rent year. tenants portion farmers a positive next hundred pay creating a for thereby farm quarter, is payments. capital by first generally The paid information, XX% working category of mostly gross upside but overruns rent planting exposure payments In and generally Tenants is the percentage harvest performance, both make we variable of a as farm or and QX. tenants. of because downside payments are cost to downside variable in often after have the by mitigated proceeds. protected farm borne QX large

with We including $X.X farm coverage million. I rent to at come be contract a this contract back this XX. the cost, approximately four not tenant. more direct for higher is operations the make consider a this because to is very is large large profit which a payments overruns, categories. covered operation COVID in in revenue than contract for have cost also that next the variable low of have in gross million variable one present farm It well comparable category. will we That accounts relatively years, the to to but is impacted revenue, bearing by two we minute. XXXX, $X.X risk. first by tenant the risk don't it times are as Direct least table sharing upside X.X We last risk higher the is We

of activities. gross risk the The that we For in goods profit of of items, total crop and When at auction, a direct less cost total sold. we this includes on want associated low XX% less insurance and parts direct one table last had are large XX% which revenue we the revenues of for XXXX and fixed values and the $X.X sales below cost comprised a percentage risk brokerage payments Again, XXXX items. amount little category the categories we approximately basis XX% XXXX basis, is was the to the other payment, years business, operations goods million cost on that total goods charts show and greater point and XXXX and XX% one years the Because payment we and result other than of to operations is sold, bit out these values variable we different that consider at profit and XXXX. the XXXX fixed XXXX. XXXX add of of contract large revenue lower with gross contract. variable are when described for of represent approximately The looking total of lower sold. to as crop subtract other rent table,

items. XXXX. $XX.X to to variable payments, million profit see revenue less XXXX sold. for the gross operations can million was Again, and direct total the payments, on the compared cost You $XX.X other right column fixed get hand to is

On down and creating XXXX fixed variable page, to telescoped we from variance payments payments, bridge the the a next Page XX, into XXXX.

details, the out portfolio crop January from performance remove do as the activities other into permanent farms row farms were crop crop grouped acquisitions, before row way For We separated from here. other crops various dispositions, or periods, row and of fixed we X, best the farms the such farms same category payment that items noise crop row same between as the same farms in the to the that are XXXX. the non-comparable

from was $XXX,XXX improved corn, $X.X and wheat by dispositions Invariable up XXXX, by grains acquisitions, again were soybeans, down $X.X citrus to declined other bridge payment improved all other include the the details, nuts XXXX we items noted million. $XXX,XXX COVID-XX and it As XXXX, XXXX of see negotiated years up performances were farm with you from the economy. many Fixed should impacted comparison associated during height renewals this cover the can be between payment XXXX of pandemic that of and that million, $XXX,XXX. the which a tree before to crops, created $XXX,XXX, by

with gross variable fixed direct XXXX. variable on categories Page the an payments, operations provide XX, note from Page payments row fixed and others. profit, described same colleagues based outlook increase direct acquisition categories XXXX we Thus auction payments, next payments the The fixed are will and The away shift $XX.X and same XXXX. increases page, assumptions at Associates from payments. from starts included range me, the farms $X for, of $X.X QX crop call in We for citrus toward to bottom business includes we that farms compared Wise half on $X.X a our table On in and farms AFFO Other by excuse and those range about has of the to XXXX. be -- second at XXXX. the million $X.XX completed in operations on talked this about and to in will driven Murray brokerage converted citrus the rent prior contract to expense of third share by million the compared XXXX. for page. calls. party in direct million in Fee from result AFFO This per $X.XX XX, million would that $X.XX earnings operations to

in to be $X.X would of concludes assuming with are million per million range in the in of the in for million the litigation $XX.X for litigation that a for We XXXX spend share adjusted XXXX. $X $X.XX AFFO to million $XX.X spend litigation be AFFO million to would range to range compared XXXX. litigation the compared that of adjusted $X.XX in midpoint to $X.X the $X.XX

you. Paul results for as back to through will for comments year morning. necessary update I up my We concluding will this remarks. This the and call communicate turn wraps to analysis the the

Paul Pittman

James. you, Thank

I to do to didn't for of in go spoken. before on comments importance grasp Q&A, couple because a James this the of had amplify we earlier James to after the my it's said, wanted easier Just that I everyone this phone and things

to We help and in XXXX as the out went outlook, we gone growth understanding back have to this think year the and will revenue corner back and side, full When substantially turned publishing where a supplemental investors So, the putting go at understanding the a outlook. strategy. Company want the look I you the risks lie. on to guidance we of amplify

analysts understand So, others and them.

it risk variable is the million on rental our item much secure of our fixed as relatively that are so payments explained, because a there revenues coverage, to about quite line relates James and payments low is payment. As $X.X

of our projection it's of variable we any So, Coast in around direct that would rent crops our have still difficult risk on revenue risks also a make should relatively are The specialty crops crop to it mostly low say volatility. revenue. operations, are, our West like to We then the sections, issues close and collection outdoors. The grown West which up really revenue predict I there but XX% These Coast things true. is that's but and share, comes our mostly be have, landlord in is citrus. jokingly XX% it that shows relatively it,

risk at are rents, weather operations. those to those direct We the variable on on and

on I the is revenue of emphasize XX% market But want to We our there as the where through how going to of year, we will farms those update stream, be go of continue to performance volatility. is some that's again, around various level going.

look harvest that As actually and the main of of right of the citrus know various may It's and early into part continues turn the of starting it. for year, at you is risk crops, exposure who the probably citrus the understand around the started now. summer citrus XX% California is right the you harvest as variable total those

the on those to us give and that crops. of so, of the update quarter call has will level the on end weather in able first the be some And well of occurs citrus we earnings at treated volume

what second of is to The the tend Tree from harvested volatility in to early period. price, summer have to the nuts They and pricing fall later the late see are summer. we harvest comes more course on on element in the will until of those wait be citrus.

to have till outcome later So, see in we'll year the there. the to wait

to risks forward with XXXX for about think give how we're year. amplify the on Operator, cautionary notes outlook. in I going wanted we couple a good going think the a embedded the questions. in and I just very So to are that, But position it open to for

Operator

from the Rob is with Janney. line The [Operator question Instructions] of first Stevenson

You proceed. may

Rob Stevenson

out a was release your suit against from lawsuit there? put What's lawyers Paul, the now dismissed. that over, their is a end the status there Sabrepoint

Paul Pittman

out Now, Quentin on lowest lower judge dismissed statement Court it's We State was What put us not ruling. ruling, never are can it the was they tell, over. related a surprise of that the, appealing to it jurisdictional where that lawsuit was course at a level is of quote-unquote in you Texas that by level basically will at which because had and largely, the it at last entirely dismissed Matthews dismissal after that article admitted all, did paid summer, he it the to stand. if it to believe Sabrepoint been that that that not was false write

You of believe have see judicial and that would endorsing it's and continuing stock But to system have court the fraud. are appealing system stock what America we pursue manipulation to to them. But is a certainly we'll it happens.

Rob Stevenson

lines, going any, the need the be still is that Okay. those anything points point? the along thing? And there And to the aware be sort is then this Company? way at throughout against is first up you of? year, Is a to coming lawsuit along road here of you Or half we for guys that know, think there that

Paul Pittman

main The of about, all bit. is I two little derivative a but talk in in as James the or the against what wanted basic Company. I second quarter range sometime two indicated the early these late so Yes, be second of to probably projected that both or of lawsuits third, if will this third year, concluded is action class we status them the have -- the status cases the the of narrow that there's cases, the won't

the there that program. have phone We means no there's to claim there's asked judgment made we process on are is step, that relate defraud a matter related we essentially the which the fully only the for said, that the relate hopeful to clear dismissed the summary law that judgment. discovery summary Company. as we're again, non-lawyers to a guarantee as it evidence just and to But no that rule I Those understand made the And parties that, on loans are of loan against quote-unquote at that no claims hopeful. the to, of today we you suggest were moment auditors intended the what There's ago, that we And evidence. will didn't market doing. basis be the we can't certainly it but endorse to judge

on just for take the probably to it'll what that's get to conclusion months wheels we're waiting several of the that. So turn final to and

judgment, Assuming the end we hopefully summary course they would that But win would side other case, think wouldn't. of that appealed. we unless

of into the by We of now Matthews, and Justice continue clearly companies brought distort happened to situation. what investigation is fact admitted It's the class the and other greed. that falsity ongoing Department begged frankly but that on it's against Quentin there have the of frankly Matthews to not that We a, lawyers in case plaintiffs argument. been an has us, their in And other crowd, shortened the of us the up face law. action Quentin side drop about including, that about

So, go. there we

we're Saberpoint, appealing the against dismissal. case On the

against to into right. we said, the because as pursue bad recovery, an ongoing there's absolutely believe Company to matters for we're their those actions financial now. And intend continue will investigation I We DOJ

article that all company is write paying it's shouldn't recognize Who false, you've you that legal. an article be us. So particularly you just shorted already to you that finally not it, write when know on an when a

the that's of cases. two status So

Rob Stevenson

much And in how you then, James, it to for I litigation? ongoing the account X.X missed said X.X legal guidance the when is

James Gilligan

Yes. of got $X we've little a $X.X the there. is in we range, to what give million projected Down bottom million that its page, at

Rob Stevenson

the of what And XXXX? on on yield how relative throughout much was quarter? changing back to pricing then, the even year cap the and in the Luc would've you or the stuff that beginning And or in Paul, been at bought it fourth that rate what XXXX, of

Paul Pittman

as values. -- land cap So, rates

Rob Stevenson

balance standpoint priced that sheet And down a about are comes are equity a bit, those from relative guys where Especially acquisitions? the in a to market? how thinking the you financing and being

Luca Fabbri

revenue. to shareholders Certainly, our we raise management year. that will I the of management You, kind obviously back ways of for sheet, Company for on course, that balance private hopeful off XXXX the sorts capital very of to deploy payments capital. all at mean, and venture, common joint former during we in growing flow the are the other be to of the And paid look

certainly try will we do to that. So,

existing the just asset we net of stock sensitive today, to is the Farmland asset We're that. somewhat not to terms sensitive base continue We transactions, to scale, Partners trading highly In of today we do are but certainly creating inside below will value. our creating value. believe but

We their we're drive scale raise term will cautious rewards, really to financial we're projects in excited about pretty to from scale time capital particularly but of want about and We for terms for value sake. return time long us.

see off substantial grow we comfortable we're that both of well public base so capital all we're company. growing year basis And as in but the its the as the of we're sort hopefully price until to probably sheet position inside inside focus facets stock more in recovery, others some the Company asset continuing balance a on managing during

Rob Stevenson

a about these How And et cetera. citrus in weather then of And outlook one last greening? for hit been difficulty by Paul talked me, about given managing much your what's the crops one and you have that bit citrus days? the knowing there

Paul Pittman

entirely portfolio have a citrus is that We California. in almost luckily

it variety other varieties say greening to, to see particular, Grassy Israeli you are, want which somewhat the our you farms, don't in traditionally I is to very as by We in that but ori small particular more contains farms in have affected can even oris data negatively citrus Florida immune that have citrus and want one is the greening. called than been farm farms about website, to affected, Island, the farm, if on look resistant In and grown. it that and Florida, is everybody's a called

insect destroyed, The that vector California, in and the keeping sure there it sized commercial the very Bay get about insect, you're where is if California the That are So, the citrus back stop that the it's strong away, Florida it's eradicates tree into around greening perfect, in state. and it the station, the and out incredibly keep is a inspection disease have forth into you small is they out very Southern who of never that they State moves effort citrus in of Department for really California or probably particular situation else tree very, neck Francisco your disease. it's, the to basically, and the from literally disease okay. kept bringing but aggressive to in Those the burnt in taken is citrus proactive. and make Ag is state, great And not California, is a And things not largely a it of between something identified Agriculture asset out example, that to-date California, backyard in In commercial of can that's tree, of considered. and the on production. a Florida, way citrus. done, Reno San all drive area, well very at you of as but that

are yet. because haven't our you won't. growing California hope crops, they in we you seen greening So, just in And certainly

all. at very we're So, far not affected

Operator

The is Dave the Rodgers next of question from line with Baird.

proceed. may You

Dave Rodgers

acquisitions Yes. pipeline. up Good team this improvement Paul thanks you to disclosures morning excellent the follow there. an out for I on the And in to and quarter. wanted

kind of you can country of follows talk the and competition and around competition outside about the corn-belt? about acquisitions the that in whether tracking are you pipeline corn-belt overall where were. talked prices you You today the of But

Paul Pittman

Yes.

growth Wise So, broadened today. even I has transactions very mean, Murray strong our are very, for just pipeline acquisition we transaction growing we we several of not I The a are million mean, we I hundred capturing of have neck that sensitive to opportunities. said, sake. have But, Like tracking.

are us sometimes They primary we They phone in tenants and is the them I've don't. As these diligence like on we and sometimes we in and said local The transactions the our have we ideas They source calls really frankly our of markets. know good buy bring today capital. the past, us. tenants.

robust a pipeline real So, goes. far as competition have the as very we

we unique than want managers, that with Delta institutional many, the are own we the investors We the many space in do a buy Midwest, we believe that to farms, sizes. smaller that's core much In Southeast in of exceptions. And other believe and the we properties just it. among couple different is that the particularly way to institutional so of of the will the right strongly that, reason

ever sour, dollar or market those south of needed not institutional gets it's the vehicles, we big to and public goes if holders, all liquidating because just liquidate plus to for bad time. institutional billion So at if managers same to it's properties, likely private be other the

call able We try great huge who deal would into what still hunting. to money successful a investors assets some avoid also but and So I to put elephant be that own by we assets, own doing we really individual of purchased be to family want farmland. farmers

which other good if those assets. to we're do a from base. institutional that for competition on XXXX it's acre farm we So, farmers good XXX We tenant investment buy happy farm with see or see much don't

so And farmer the as a usually every it really if wants at us we've be. beat frankly they it, should auction time --

ultra total able just other we're other in year but the Partly private is, of we we the personal of shows before that this like stronger the you focused consider any I the appreciation total more manager. than had yield, means that institutions, frankly cap Midwest in strong is terms And on willing farms core and Midwest institutional is than but any have including universe return so, a the went be total so virtually the but of public, lower productivity a take long that the company base, history tenant the region are country. to broaden to the my we'll to other total there in in of in strong competitors they folks from in as management in farms are term And manager actually rate, somewhat worth the very, long face farmland smartest as security, the those really longest Midwest high long And well. institutional real, return, manager, high Midwest don't the the always they competition the I've family bought the ease and aggressively long very as because in participate said, Most historically the term market. of then term that Church, we the and there. net compete historically, Mormon we of kind return ultra, of term Midwest nearly the the The have total institutional offices do. is as strong is our private is term

So, to that. we of our we'll hopefully good have pipeline about plenty available pursue feel and capital

Dave Rodgers

Maybe one for James, Paul. or question for you follow-up

comparable does ’XX, put that, I'm and 'XX true you for in for in and farms dive into to of obviously maybe you. into your revenue what saw that'll bit growing little when What on is basis, you on what look a operation. that. for Maybe role, the guess number said basis fixed I we deeper anemic, store the as a be the same XXXX what 'XX. for kind you lead think look direct it explained the fairly like that like comment. for then at asking adjusting was comp like can And like Thank for look why On then, a same to does you store XXXX? follow James, I on a

Paul Pittman

Yes.

So then James, want you, I'm math to just going it let start with Dave talking. that me to a I'm help while if it you turn try to to little over do

reinforce So, to I this in but asked first, James his comments, prepared it question. alluded you want to the since

same owned We us. of full-years same the two was we store in bucket. what for sales sales dawned looking number, rule presented everything of this have on simple store historically at kind It was the

We reporting is that our I'll I the they're West same store good big was going sales or those versus that is myself, on so, our based we fixed crops, And Coast we drive seven because crop what really rents getting weather. if you have happening up want what's numbers was same getting sales dollar what was in were where swamped by blame amounts it but store regret specialty crop. down tenants? on rents happening know investors And -- that swamped what were years, number was on to what took largely the with bad a a negotiations

the to on which do And crop focus rent. a is cash or or to we we're let's what it on renegotiate this basis. a trying down is to rent, here with fixed year-over-year it's GAAP. a market what's largely going going reporting when fixed remember, is on And say, is So measure up all

cash what So course, way but always we basis, and those have are higher cost James the a up I late our through the lose -- reports, did because But on renegotiation reemphasize to said, straight the going because is not 'XX, summer. almost lining of in you the adjustments effect. renegotiating rents, GAAP XXXX of largely living leases cycle we the get rents in that benefit lease

the the I really hadn't farm economy ago, mean, depth the of of to summer XXXX was, late like that sort crisis of And so long it hard the and seems in but to was recover. a that COVID believe, time started but

the revenue we'll of to the again do into pushed good therefore and eked in I deeper in cycle. So, not rents the as the XXXX revenue increases increases cycle in and we which -- rest have on go you those question. approximately In XXXX, for as today's will summer And you we disclosed, then flow on that little XX.X% can James, if XXXX, particularly want can negotiation said, XXXX. out will XXXX. that the it of of we up rent summer a

James Gilligan

anticipate following the year that XXXX sort fall describing be of that late that timeframe in take qualitatively million XXXX. metric kind $X payments, And We really Paul the increases sure. up the Yes, That just place same is impact will will the row crop the will of fixed XXXX. right? summer in

Paul Pittman

expect the we're said, And number on based I we or to increases the hope would year as at we I that above that get XXXX. Dave, for XXXX as in

Operator

Raymond Thank is Buck of you. of next the question The line from Horne James.

You may proceed.

Buck Horne

a clarify could. guidance, to wanted Just the in if things couple I

guide Within new the guidance acquisition is this side the revenue the on XXXX, or in for any net for embedded disposition year? activity there M&A that's

Paul Pittman

capital project feel on equity and acquisitions add did not or to this, No, dispositions. raises issuances, we James to but -- free capital we raises, not debt did

events will through those from those like want What move there to occurred then year. and you do idiosyncratic to during wanted a frankly was add the answer? we baseline We present things that we anything events, as to to things James, update here the as do year.

James Gilligan

Well Nope. covered. Nope.

Buck Horne

year? projection the I just going Got to to parts it. last I that. the year back Got that's there helpful. variance was maybe there also from it And happening different and this the the is and it. then are general me That's kind help just to Thanks. the of line what number know currently. from understand if year item year appreciate administrative moving of guidance, D&A

Paul Pittman

Yes. I'll hit the big points.

is settle this structure cost litigation the is risky in guidance, of easier line. the litigation and our understand. first, predictable Rest on to So aside, side reasonably

'XX specifically, significant year-over-year Turning impacts. administrative to of is 'XX from by to the three relatively and kind driven really increase general

but company. The first as staff high inexpensive so one became is James joined staff we quality, senior Company, have growth-oriented we went level the of a added us. not in LUCA to additional back some President, member.

We Relations and forth. area, on have some Public so added other so also in the people

the were business Board. it's in and acquisition of some staff that's did asset the profit then a We costs. but still close small. And line. real now. staff. of estate Number movers costs, an is the growing out be are we've our we just it's add in as also Murray increases a but So, that a profit some, ESG of those And and but thing third adds XX, in the or the believe in through G&A bit and and we managed, of added we add under have We're base additional P&L they of obviously base the little FPI. we've costs, Board, efficiently initiatives as of those and the the made as will contributor. overall staff always We big but some the now excess added size we'll XX the some employees XX management various for two, revenue But well added the level rounding the brokerage incrementally course farm are business, core added our talent Wise Company that contributor some are have, we to

Operator

next of from Riley the is The B. line Kucera Craig question of Securities. you. Thank

You may proceed.

Craig Kucera

revenue of roll your wanted expectations just I it in more guys. loan from to program item. XXXX? specifically as off to to back other expecting circle or income/revenue guidance Good the a on Is also to Wise that coming morning the the out you Yes. bit Murray are relates little line

Paul Pittman

with. you over know to specific answer. to you're don't comfortable going much flip as question the as because I'm honestly James, Give that I color

James Gilligan

mostly auction It's sure. the brokerage from Yes, activities.

in from that revenue in have So, regard. that show it's activities, bit throughout the anything there's projected but really of kind miscellaneous and that year, of time, that don't Murray line would to little we time up too, Wise

Craig Kucera

answered. it. of I And are rest you. Got Thank think mine the

Paul Pittman

Greg. you, Great. Thank

Operator

you. is of next question Watson the line from Ryan with Investment The Medium Advisors. Thank

You may proceed.

Ryan Watson

everything, think Paul, you've I you me but actually ask covered Hey, one let question.

the it's You mentioned that the Sabrepoint? investigating notified if has FPI, DOJ DOJ,

Paul Pittman

newspapers. haven't We No, was there a last weeks few know there -- all a you're the was same been expect few there didn't potential charges. And ago, article would nor a notified that after of weeks days then specifically Wall the largely a was things it. Journal we relatively on we Rico in several but on long Street been the talks or Bloomberg article about that to Reuters' article, a there's significant be notified. our seeing anything, We in publicize sort website this

them to appropriately we and what about part articles, back want to and that in you articles see always investigation things. to is is but know what least at have is you You happened of quiet named related most read to of where, go for who's as us look would and is happened DOJ those discussed expect, the that us those these to to if others

DOJ people did and to for occur that right what when continue still can in to see As time, been process nice beyond but immense to of There's sure way they're a amount sure and their see more of all follow destroyed a an for the but shareholders the it's Matthew you we here Quentin think not from at this. long cost. value certainly -- long, the process, against in be the already would we're we're company, justice believe It our going we is be through admitted, nice said our through. stand sort perspective, it final and step what optimistic. certain lot happy even a But the be up who it

Ryan Watson

ask one me up. Sure. follow And let

you cut going usually that know be production's to of California U.S. the go freeze, weather previous XX% any south. current to XX of citrus impact to freeze have that sweeping going farms? now the the Florida On I that's doesn't Do that the indication read for your this that’s I far is me. any right year. all And

Paul Pittman

experiencing you some this of think the on Coast of know, and a relatively We low a region don't The example okay. briefly where it, is answer farms the, don't We It's team be haven't is It's lived the Denver. quite bit, in predictions very ours. we'll Intermountain There's including of Denver, so. a for place very, short are prepping The it The cold is asked probably not citrus temperatures actually at tracked call, yesterday. you for quite about a for very that. think there's it's most bit talked today. snap. interesting We and West call, cold those the know. we you for where who

fans air machines. We on wind property. that big right the having and have air in the deep freeze basically ability to called settling there's these like your that move stop around a and They're cold from

think citrus fine. that we is So,

here. in there. volume. a spring little little sort side, usually the bigger The of the is we volume that significant in reduction Valley in of get problem. of you price almonds think a already that of right On almond cold again, if a we snap are worrisome the California response again, a is a without at It's reduction But available, a bit through significant point and the bloom. than And frankly see there's Central

unless the it, wiped that matter something opinion side. be ask necessarily are hope thing revenue we able you but me we if and But up bad answer. essentially it's to revenue a a as to completely on out, you a want my tell nothing call And that the are with obviously, you in comes we'll not it's So, of week, tracking.

Ryan Watson

Like said, a went previous Paul. I We'll that the do. at bit Florida. was little Thanks color. freeze far in south shocked I Appreciate the

Paul Pittman

any financial is I in way, exposed my different And but significant Florida, in citrus, California comments, not the said as question. we're essentially Florida a

Operator

back additional further time. any team for you. management this pass questions to remarks. I Thank There will are at no now

Paul Pittman

all CFO all and lot Gilligan, to communication the transparency those from team. congratulate a work the to for listening of the Hopefully, him and James with help street. for of out, I that you on Thank want our ma'am. you, put management us on his team, in the call on quality high particular it'll Thank supplemental we've

with to So folks call and next in look to conclude you the the talking forward that, quarter. we'll again

Operator

day. call. That you have a conference Thank concludes today's great and

Farmland Partners (FPI) 23 Feb 222021 Q4 Earnings call transcript