FPI - Earnings call transcript Q1 2022

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Operator

Good morning. Thank you for attending today's Farmland Partners Q1 2022 Earnings Call. My name is Bethany, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions]. to Chairman conference Partners. and like host, to now Pittman, Paul CEO would pass over the our I with Farmland go ahead. Please

Paul Pittman

Earnings will as to join Good First for with these We to our and welcome we us and important customary you Conference see thinking and opportunity because XXXX Gilligan, share strategy turn them I more press appreciate than our time format James formal morning, Webcast. in very Call the call Farmland you taking less preliminary calls the filings and interactive public releases. a CFO, to now over and a Quarter Partners to remarks. our James? some for

James Gilligan

press afternoon. presentations our distributed materials of release earnings as was Paul, Relations supplemental the the The quarter sub announcing header and everyone you, Thank thank The you first yesterday and was website under section to well. Investor other posted package our to afternoon call. on yesterday the

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

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

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

Paul Pittman

James. Thank you,

So well. all our quarter -- at also in own to your revenue I want Q&A especially questions division. obviously the assets sales to for session has in comments strong Rents, the a business. Essentially, the and our in prices we quarter to we more Land make have the we'll surging our this drivers crop major a already few of increasing substantially. the our back company. higher area wind look Auction about are are the MWA in forward as led prepared Brokerage row This and was very on

and leases very of than in range. XX% XX% increase seeing the be underlying need of fertilizer that end We grain renewed profitability The XX% now have will more is Farmland at the the despite to price we in around increases the XXXX in renewals renewed very, compensates. prices, higher to those rental are strong, is

profitability potentially in a the and of increasing business reduced South things are weather on higher. decreasing late of trend, States Ukraine, of long-term the And is now India, demand Ukrainian Farmland. food in disappointing and farmer which has caused in course, limiting our societal been at a they strength people general exports. by war grain availability world. of in farmer high-quality the perspective, top therefore, least Russian and and and for the benefit the of circumstances, by accentuated are planting our poorest they of unfortunate fundamentally All poor is in business, These this however United prices profitability the from But the America, crop driving that

For up XXX% FPI, strength costs in way our finance P&L. these by results evidenced share. we are most per showing complemented the by operating AFFO in factors strong is the the from reduced are significantly of our clearly almost This increase coming business. The the

are Series B substantial have showing statement. conversion the the from We that now in up last savings the of fall income

in reduction. decline the We our strong the I'm these legal to this happy significant debt of XX% positive lawsuit, addition, Board to dividend because future. the our from action class the a results in and report led Directors have outlook in vote future. savings for spend that increase of And defeating for should the after has

a remains pipeline that shareholders. to further turn few our remarks. for value I'm We With to Our create long-term very anticipate for it over doing strong. prepared acquisitions will going Luca that,

Luca Fabbri

Paul. you, Thank

very, food macroeconomic particular. the this has of now amount factors very, the time, stability in also fact and asset have example, in general terms the investor this driving significant And the at a of Also, this namely of characteristics driven is such in point the amount of an Farmland when certainly the driven in factors perception This has of very States, historically investors of are outlined. United characteristics particular and asset Ukrainian this more then producing of in inflation. there interest recently and world. We company, so there in also these productivity interest especially in and other heightened is very potential geopolitically good And juncture related the and class, as very at price our as time, appreciation very, the interest some area of reality the asset U.S. like Paul on forth the been course, really crops factors and this There of of to the a that States, at in of Farmland for characteristics are the most stable truly time, by some world, fundamental Farmland. value the long-term lot in some a the the class hedge is factors. against of class and in specific in United Farmland so the the right of stable world interest that and productive seen in the Midwest some in very conflict a best by

to Another our to ESG is the and structural friendly the kind class. Farmland factors asset nature attracting and of sustainability company, intrinsically of interest

that and soil investing those York June atmosphere on too. of on a surprised limit specifically out can institutional from Angeles, us the you better that in a It's variable of on sustainability We reducing on are but and investors focused near our are sustainability -- With To participants felt technology we Also, to good here will farms, our we London. fertilizers several for bit the a are conference in point, turn company XX better in Relations formalize really with approach and the -- XX% participating, road tier that crop avenues. of and believe should to little that REIT Farmland be best the through came future, most reach the actually starts heightened XX% more on in application that, see very practices Jane of around also our the water known -- have aligned produce to encourage some inputs that specifically, Institutional and we we we ESG always our the And company. journey our with of Conference optimize we that with all we that ESG meetings very crop will in the sustainability. asset response embarked biodiversity we've this And of marginal to XX% May are food with May in the to performance. X effort. June crops class, in second kind definition tenants to sustainability that in a food from and James? in now in really focusing even And aspect our a way from hearts XX week XX. tenants and of resource conference of are natural all XX% on call conservation on the that yes, world. environmentally sustainability us again had is Investor in like and in and for our his there company the seed I ability course, with X specifically of to remarks logistical schedule tillage -- to on ROTH tenants, scarcity the heightened that to present on to we're health is as usage affordably how possible. the rate of produce And with Investor us wheat another actually -- relatively right XX corn, and everybody interest Conference definition the sustainable tenants. specifically social financial on I the some James a the to basic the also dioxide intensifying among Partly in conservation emissions in affordable conferences to and New virtual start a have several environmental XX food sustainability. Los this results programs -- are focusing NAREIT standpoint. for farmers There to so is the ran the to prior especially an the improving challenges from And world. strong that in our Ukraine. to strongly participate that environmental practice use of the chemicals are productivity tracks carbon our proof our when agronomic We enhancing federal in recently survey and us

James Gilligan

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

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

to metrics compared negative million per $X.X million million positive litigation, QX AFFO share income $X.X Net Page ended to a of compared XXXX, on net 'XX. April litigation, for for appear AFFO to litigation, X to to XX, compared $X.X for $X.X was million average $X negative million March $X.XX that for to to $X.XX QX included Adjusted First, million. debt $X.XX count 'XX. was per positive $X.X Total I assets, compared litigation, 'XX. to QX of for as was per million net was was $X March gain $X Fully in after $X.X per 'XX. average million, 'XX. million negative positive income of Net 'XX. dispositions common positive $XXX QX compared income $X.X was QX of XXXX $X.XX for Adjusted Adjusted 'XX. income share quarter. was for with Adjusted QX X for share the was AFFO from to compared weighted XXXX. available further will $X.XX $XX.X months the common end AFFO QX million weighted million of million for was for 'XX. reduction $X.XX on compared was net the for at down for QX stockholders diluted share QX QX compared $XX.X $X.XX few share XX, share income million 'XX. XX financial $X.XX available for to stockholders

Page Next, I your will XX. draw to attention

couple many received Ukraine here. of comments go have questions minutes over I we mentioned, months ago, won't past so regarding few make on Ukraine. the depth into Luca a I'll As

However, have. investors questions we some that wanted address information to high-level might that provide

Policy many might Institute listed sources Food resource interesting at an Research looking impact the bottom the the in of written of theses for more the the -- information. for it of conflict people has page, One Ukraine on be International

overview XX statement. table Page an of last our take income at to turn Similar the to to through of will will I talk the quarter, Next, provide I a page. the minute top to

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

paid as planting, variable are XX% here To point, often of year. that received the of gross fixed variable As the we about to illustrate of generally of is for because working the QX point but we majority the to The through pay following the quarter proceeds. exposure for positive a is XXX% approximately sit thereby year. next XX% tenants. percentage payments, have both of farmers as of we're have first rent third information, vast capital before by and into by harvest fixed downside mitigated the we Tenants a large rent generally This creating year in the farm borne farm portion with some today, payments. a performance rent the a and cost of slipping overruns in With downside way farm category payments make is of of the generally tenants variable QX year. upside after the farm

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

other point gross parts table, associated auction, is revenue result sales gross and total this in direct insurance, XX% of plus amount of we be large XXXX. operations is goods other to with When which cost The the payments the below because our goods we subtract at chart XX% want crop of less described and we the values total 'XX direct lower, of the a For profit Because sold. business, million the a crop The profit, table cost approximately category sold. the direct 'XX. lieu less received sales gross in out to bit show for basis, sum items, these that's XXXX contract that goods of categories of QX we one includes variable the rent on had looking cost last $X.X consider lower-risk little sold, activities. when more under have in farms closer of QX the revenue revenue year brokerage fixed of out different we're operations will we values represented insurance and for crop operations.

You will and variable million fixed $XX.X column other was 'XX. direct payments, sold. profit payments, items. goods QX QX see operations, of $XX.X on the gross total compared is Again, the million right-hand the revenue for less to 'XX cost

On telescope QX variable the 'XX and creating fixed a QX XX, from we down next 'XX. to payments the page, bridge into Page payments,

farms farms between crops as the fixed that crop the same other of For payment row permanent farms crop not were row we performance row details, portfolio such items out the crop remove crop we in same me, category from view We acquisitions, X, dispositions, and separated farms noise the the that farms periods. comparable to Same various into were the row January XXXX. grouped same best are farms the as view the other row-crop of way here. from in before and activities excuse --

occurs payments bridge revenue differences receive 'XX from was The As our years $X.X with variable negative slipped revenue harvest of due and while $X.X in acquisitions, line and the to as nuts items year QX timing we slippage payments and such combination can to QX 'XX in the after from of The of between remind is to grapes see, variance tree largely from variance harvest full variable QX 'XX in QX variance is to 'XX fourth and negative payment you was million after of the that vast of the The not for QX and majority remains QX other QX was 'XX. 'XX, the listeners cash of did quarter 'XX timing In up any in performance. outlook lower same. XXXX. associated QX. a expectations, performance difference QX was in up details, with from million. Fixed dispositions

we XXXX. other. change. XX, update did acquisitions. leases the table described new page, XX, starts signed fixed not next Page categories direct the gross outlook payments, profit the Fixed increased Variable payments on the with payments, same and Page additional to due for variable On operations, and payments The

three shift citrus reminder, and operations pricing toward farms direct and a fixed due profit half have payments decreased will third-party citrus changes. to As converted a contracts operations from from to away gross farms of for operations second XXXX. overall, the Thus, in payments. Direct citrus variable direct XXXX those

changes are major early keep caused increased as business. fruit at oranges While and to relatively the continues demand information. export industry still shipping have lemons we quarter, by in third updated the mandarins into lower, and we you season. additional to higher, The issues Other will It's new and ports. sell are due auction

rising $XX property $X.XX not back in Weighted $XX.X million expenses. $X.X side, in ATM expense debt the range company's now million be general That the compared shares shared $X.XX of program. a $X.XX administration share partly under to is compared results the due $X.X $X.X due sale litigation to per of We expense lowered On range previously from of to expected to million average the February. range million change. accounting AFFO litigation and February. AFFO the increased to This range $XX.X in back rates. million to of in in million shares $X.XX shared to million. levels, to would due had lower expenses decreased to $X.X by Legal to decreased operating interest $X to did in range lower offset Interest million. to spend

we adjusted million to to litigation February. million the the with be concluding of share for back morning. in to remarks. wraps XXXX. for $X.XX litigation in $XX.X $X.XX We range compared $XX spend midpoint adjusted $XX.X to million call range in estimated $XX.X I'll the to you per litigation are would for assuming compared from in would back be AFFO comments February. that Paul that million AFFO This my to of concludes to $X.XX all this $X.XX the turn shared the up the

Paul Pittman

there and Operator, from see we we'll conclude to you. are after going Q&A, Thank questions go if any the to audience. we're then

Operator

[Operator Instructions].

comes from Berenberg. go first Please Crossett with line question of Our Nate ahead. the

Nate Crossett

a in think year. Hey, the you for good the out don't for that the showed around million in $X and a deal kind flow was million I volumes that $XXX quarter. million. There guys of was on contract, But Thank under put you. kind you sizing presentation question morning. pipeline had recently gave pipeline. at you acquisition I the guidance the had did just you it $XX of

if could pricing comment also, there few you in volumes in terms over give just this we in seeing just is months? what can maybe next interest given what cap changes over expect if so year? of then months? rates can any Or rates activity And last the you're And sense any a you just looks of the on way like three change the and us the

Paul Pittman

questions but regions. very, phase transactions in sale is in is already The thinking want best rewarded in Sure. in our there, prompt fall and than come the different very things. to a to of right acquisitions portfolio last likely do But half for want right be on balancing or balance a said them, quantity greater we It's deals It's of that buy me we are a best manage. deals. you perspective on all. transactions, discipline the because is are the of the And measured or the please crops A by to really in slows a kind more, a Nate, year ways, different best our what thinking upside entering most our we a We of farm. it can and quite the farms miss surge different farms. properties presentation, that's when And then doing variety the the decade as now little in end we cap usually of there's million the during a bunch given we drives me next get probably being harder which in And is have X actually on own. farm what selective answer so. years more If given pipeline about of of to I'll today one $XXX And I any or We context in very kind the the try which will a a it's to about finally, down on the transactions. issues term them a of rate We other it new asset, what on many is the to lot again. really for important long is do. be fall lot to do million case, we a do. because in of any do a We $XXX then we're going is under the -- the try focusing in to to more compared acquisitions field when transact few. by we creates now as specific there to ourselves measure there track bit of number available deal set where won't of

we'll bit is or run, think, lower though, the it we're will millions roughly tens be and in in I right pace. deals the of quite of kind if that than quite a And even deals. something it's do next by at really, surprised perspective, But selectivity don't bit Our that quarter. of because higher driven the a doing

rates. changes other is interest we're seeing to due the price question So asked you are

so no, we not. And far, are

of about leverage it Obviously, up overwhelming for it. are show bit who many that has So done I to for likely with majority in an farmers buyers they're little debt making class farmers cash. or Many, of overall sort acquisitions, purchase horns A asset. their of those a carrying using the But XX% the obviously, the on these transaction. doing it in with cash acquisitions many cash. farm the available are cost these are said, Farmland as institutions asset pull with only of because, as the increases

point And so effect having in the an this time. increased debt at is not really

think most if questions. of feel up. one, free I I got follow missed to your I But

Nate Crossett

a the spreads. No, that's had on question definitely renewal I helpful.

plus what to XXXX can't last kind minus, And of remember you And can if you I think to XX like guys resistance time phenomenon? I was guess you spreads? see but kind like give to far or Or XX-month that an of like phenomenon? there XX%, those quoted are you XX quarter, Or kind my kind out of the on helpful. how is those is guess you anticipating, I a going is were is there are is this color I articulating did an XX-month rents? any of it uptick. seem question resetting this Any this

Paul Pittman

Sure.

So as a in annual just context, we to general reset give cycles. company, everyone rents the

So to loss will sort for what is XX%-ish Where profit our was that year I That’s the now said on range. calendar now that and XXXX up was the that leases statement starting showing what are XXXX years. is we that last of in, renegotiate the reset call we're kick experienced. in cycle in in we the

renegotiated that reason. he's lease 'XX, for bit another he to out it he hedge but in 'XX lose do and rent for thinks We grain we that that and -- farmer got We've farm 'XX. are we can started take farmers the put summer three go a will on to early, -- cannot that early very following situation have that the That for and we now favorable knows this if fall price early if that cannot starting he's of right frankly. Normally, he you years, late But going risk year. that a farmer would and we doing sell the hedge farmer little and farm. for the

a early of kind the in tenants we getting So to of the negotiating rents. ourselves as cycle we're in that XX% is well What and we're as rent XX% for seeing benefit XX package. XX, our this XX increase of there start those to wanted

getting And do said, now I've we and As about we this are to XX% those of increases were we’ve released year. what than strong quite year. rental higher have last

I lease this entire cycle. think continue through will that

it's be in likely to will leases, think when renewal XXXX. for start I up renew to that we the continue

going think The to get on consuming We're So with years. shortage America. now having difficult relative because season, is remarks, we're I very ourselves this weather grain. situation India, South to situation all going quickly in in we go short in indicated of corrected a grain is of for between my as prepared find this in another couple not crop I

So the or. second their because getting is U.S. crop, that's crop puts summer. short, us to delays, course, corn they lowering two the call into Ukraine at significant what pushed planting pollination now safrina hot of of which times smaller. starting is have of gets risk yield the of then, And

I think the profitability our farmer this thing storm is rental increases. high, leave and got of that's going perfect to best that we've sort for So

and to your our far would see do farmers, farmers to the as from increase end, As but from we be are as to comment in our it. it, yes, willing expected. do likes about get push they pushback back rent able the Nobody

we And that. will I benefit think from so

to And so This question? a strong it answers applies upsurge reasons period price, advantage faces. your And in cost for expressed the we while of farmer plateau an surge is some pretty these a and a this very before. an certainly applies plateau. is you ourselves and land this example and rents it industry I've just the Hope to the very surges find I taking have structure used grain that applies to strong are And that other upward price and -- in where to we upward then degree, can.

Nate Crossett

leave I helpful. very it it’s there. you. Yes, Thank

Operator

comes of line the from ahead. Please go with Our next Rodgers Baird. Dave question

David Rodgers

generally growing about I growing. is I you the obviously, it one XXX% farms. Thanks direct as ask the over sense features, attractive the business, has your occupancy Paul, on of the in the years talk a many of guess, disclosures it Hey to year. again And wanted Farmland morning. good that the talked been this increasing of about whole. to Wanted for operations company most

you operations So of demand from occupancy XXX% with kind kind the of farmers? in dovetail direct high component this can and

Paul Pittman

Yes.

good direct with the We not We sort there. operate the going a It's when that's we do have to direct conditions, that's Maybe -- irrigation have in irrigation under it lease trees maybe it. do changing for needs some a might very it's bulldozing we planted we new speak. So crop it and just improve and specialty it to we it of sort we're reason, hard and two so operations farm in circumstances. redevelopment crop bought farm to installed. of

a lease what is crops. And that other of has specialty direct enough that mean we who a model is managers have it, return model that farmer relatively to fairness row because the the it's your done. get hard operations of the the they always that Most I by of might been specialty crop in The cautious is, lease that high and a place reason volatility farmland to use in crops. institutional their in volatility. fair historically operations in lease on he's do So direct

a year says for a the if of what great, up or So of but I'm rent. going of you about get he's in loss you're kind difficult a I out base fully operations. course, base I so direct want going end from to lease direct a where farm, want with on that pocket taking getting upside want the the The rent. fair all X-year to exchange to average I because downside -- and operations. really what farmer, that return coming over is And that's giving up significant

will some many think to other specialty it's time we And more that start make space we're is over to the we So That least long-term from in operate with, of them what think, like done. what we our institutions on will other managers because on us leasing money in have particular. I so at aligning kind crops we've direct to citrus doing than decided -- it. of really going

though, it, and will. all done actually of not have specialty don't crops, on we I We think our

maintain mid-Xs the trees, triple-net pay we great with lease a relationship Company, the which taxes, truly specialty crops have Olam they a We our is they at And everything. unique get with They the do purchase but very the Singapore. rate. That's long-term strong the sheet, original that's Olam traded But balance publicly cap rate. in a against a price is a great. in still as something company

able rent unable a the that we've return were we style lease rent negotiate we gives citrus, that a -- found on we ourselves wanted, them and a balance, all pretty so fixed and on to we -- reserved. fixed get fixed but high us And with nearly And that to just rent. or

-- capture we operating. Hope by that going so direct upside much And the Dave. think in we're helps, more to

David Rodgers

year. originally? does, guess in That harvest insurance related a the guidance that last of just to able And around assume couple I was would this then I two, that. crop maybe in anticipate the related And question year related crop to under the then that was a million. proceeds Paul. questions. quarter the $X you actually One, to being

this insurance added of kind next kind get kind and crop your say is see guidance So don't counting, double again want maybe your X in working outlook? but shots in of year? will I that How year? we number of a Or you to

Paul Pittman

I'm going But at James. may James go to add afterwards. let initially. take ahead, least I that, something

James Gilligan

were of that And the the yes, showed were our original that's up so insurance that anticipated. crop crop was in Dave, insurance in they numbers Yes, selling numbers. -- lieu fruit

we visibility next our will have as we work that's yet to out include in do that we how look don't year, out, numbers for but we as shaking into As XXXX.

David Rodgers

that in rental of me, terms last for increases you And seeing. Okay. the are then guys

component think farms, if like and year, you XX% roughly up increase. that looked on you're the I same-store sense your the seems makes It just relative about to X.X%. fixed this at

translating X% and guess to I thinking year organic of if so next the of or be or in going kind I that X% range. should XX% get a growth XX% rolling the are about the to we're increase. year leases is So next you're mean I it? rate just mean way that right to XX% that

Paul Pittman

Go ahead, James.

James Gilligan

but that's days, math essentially the early still I it's that do. think Yes, we

we've percentage leases As of renewed Paul this said, some year.

go. a more to have We lot

updated, you essentially that's And I the that do so as we'll but math think keep well. we

Paul Pittman

XX% million about if number, at XX% We're for your cautious. XX be just And We've XX% the renewed no shooting yet. number, using now, to Dave, acres point. but right not model I I'd of be only guarantees updating the the the was this

David Rodgers

you. Very helpful. Great. Thank

Operator

of B. Craig Kucera with question comes next the Riley Securities. from Our line

Craig Kucera

behind in guys. related putting the morning recovery to curious, legal good any you Paul, lot Hi, issues are on I'm congrats a sort that? of contemplating of And But of you. the process a of pursuit

Paul Pittman

that of that One away. elevated us lawsuit point. Craig, and company done class yes, reason there are, the gone spend legal take actually and all is we didn't We the action see you the Yes, this do believe good it's a against at question. --

very happy that. we're So about

achieve the future fund we speak, But it's just fully company class what we it And was of we We to that very successful. ring, a in that have And the a significant some think pursue it's we're on at would ever in and lost of, to they basis the a really behind that, continue it's fighting. if keep We In hopeful make out so cost that, the hedge we case, point pursuing always business of time. worked never pursue That getting big can future. you. the know. to believe risk case cost the if to to way recovery dismissed. but this never stop some get then of case fund a top us can hedge to, to create more case decision at back will did we financial deal at obviously, would, which do words, to was than business the in have to get us We choose the wasn't to a against do that a it frivolous and are the thought that but a point against continue there We the we can on it. stand you we can't but other action. in all you had

Craig Kucera

in point, what you be? in Or matter? able disclose restricted at are helpful. of you might you are sort to sort still And can That's this Great. contemplate that of what that recovery

Paul Pittman

because I tried damage I would quantify significant, to into It be also caused me it to range. it to the a going would And I for is to hard be not broad be mean details. it's but go If I'm by it. ongoing quantify battle. this -- very able an very both

Craig Kucera

No, that's fair.

You paydowns? raised is is some of debt debt on additional your equity priority sort which here in -- capital the maturity. you a portion second debt. stack has the of long relatively long quarter, relatively pay for down comment of Can additional Most

Paul Pittman

Yes.

paydowns is So we structure, about on for to on think cash absolute what's about What front current That's debt, the to an We think overall we when think deals our way. of continue down from really of alternatives really the the the rate in use following frankly, debt. good in perspective, we levering debt balance overall. it about piece could without paying delevering in transactions we we'll effect do if them? have similar because us, you're that sheet

or a it a at there reset reset instrument, but We XX-year lot our will a every years because instruments on have also so. debt three be look may when a of rates might will is

going underneath about the those on loan So a to accelerate because what's the flexibility. we can really it that reset. if up a Generally, we thinking which background thing on awful is if on then important, in about trying what you you're gives think lot about, coming rates. would financing up one down us an of given to final debts paying the reset And collateral, is our think near lot depths of given a collateral going interest are future, is in with of free

business of of pledge because assets we're going them for creating to it up cognizant against of So us forward. efficient ways opens relatively all very no large with this package kinds more finance the

balance how that's we So it.

Craig Kucera

helpful. That's Great.

how giving B of more into a common thinking the to additional you Series for last back to the leverage raise is you little the time? you Or you I viewing that over Just run with sheet converted acquisitions X debt. -- for common thinking me. pay Are year about dry sort you less lever more more powder want deleveraging recent more you balance bit down up? maybe mean, are

Paul Pittman

took because significant achieve the grow base Wall to we on are The think flexibility a it. a liquidity there should financial a opportunities, to But it's had we I run a to minimum any to lot is the of without on the a both. a assets we historically. measure actually frankly, of big by need really when gives to trend capacity leverage have slightly to company less And get solid support wanted the have leverage time point pretty relatively we've over company you -- us we're our general because that view scale. the It overheads good But staff you company than number of we got needed good, really and can't company still we of people. modest-sized Street. public had

a point are So some even ratios. preferreds look technically We doing if that at correct, want instrument, the it it's where grow people to I we've We you think not leverage now that as do overall This used we can with at company, keep less growth look debt we to want to get slightly growth leverage to probably but that continue But and with way. big without do to equity. growing aggressively. be able grow. at and to a

this at we of that's in massively XX we our it's the have overall things basis good, delevered And the on that We it X that's when look stock way. price. last months think think company helped an you and

So but than the in on overall it's past the seen to see you balance. we're have always I positive levels you'll about lower be it, company. going term, think But a long leverage

Craig Kucera

Okay.

Operator

to to no additional Paul closing questions this remarks. conference I are like any the Pittman back time. waiting There pass for would at

Paul Pittman

or all call. talking We Thank to quarterly forward with you. you much. look the you call. appreciate And either company. investors on support listeners we next And the thank the in-person do this of and very conference for you continued on your Thank

Operator

all XXXX Partners you rest Call. the day. QX your hope Farmland concludes I That enjoy of Earnings the

disconnect now lines. your may You

Farmland Partners (FPI) 4 May 222022 Q1 Earnings call transcript