FPI - Earnings call transcript Q2 2022

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Operator

Good afternoon. Thank you for attending today's Farmland Partners Incorporated Q2 2022 Earnings Call. My name is Forum, 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] It is now my pleasure to pass the conference over to our host, Paul Pittman, Chairman and CEO of Farmland Partners; Mr. proceed. please Pittman,

Paul Pittman

are one morning, XXXX Good you you to Partners thinking because of Farmland the before want Company's make for Thank in to management conference and call quarter they calls want we these the earnings to appreciate formalities and inform important and call, second opportunity time the you. join welcome an webcast. a and I formal to taking I less about press than interactive releases. our the do more public strategy format, comment. filings and begin We

tell reporting quarterly best level probably of are which loss, an stock night down price the fantastic this around. other stunning we up sources ever news published Reuters company what reporting spread is our the was picked us in We has after That the very absolutely from incompetence, middle a a had, why up by having several explains quarter. of can instead in of quarter and as

it is Christine? With net income loss will it at some preliminary remarks. $X.XX we there did as making General we with off there for customary the go show aware details I that when start to in I'm error Counsel, us net income our $X.XX in news gain. everyone going to a fact that, over sources turn want that to are continue, Christine out a but Garrison, through So,

Christine Garrison

has to sub and call. Investor press quarter was close our Materials. earnings header, Thank of supplemental yesterday. market you, you second the been our Other under the Paul, release distributed announcing on posted and Presentations section everyone package The thank Relations website to after the The

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

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

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

Paul Pittman

Christine. Right. Thank you,

minutes ever had. few So as strongest has I quarter the said is that company a this ago, this probably

our are is business We quite where a situation in going in well. virtually everything

significantly. continue values to increase Asset

as the see XX% been in XX% That's we're as in year-over-year, think appreciation. high improvement year XXXX going more gain XX% another may I asset or asset values. the to after have or

Our revenues strongly. are up

Our operating up income is over XXX%.

is Let up strongly. Operating year-over-year me up is AFFO that. income repeat XXX%.

for of in releasing The is the are in renewal, released we we a below discount up share, are we we're in now trading $X.XX and a guidance rent We on still releasing in we probably have of are X/X in a two bumps are excess have net the substantial Leverage our rent of XX% that asset asset a quarters trading process approximately now. at row farms at getting neighborhood that $X.XX trading in Company effort. my in net value. and share the rates, estimation down today's that raised value, probably

all So in quarter. strong is an all, this incredibly

quarter. I'll very a As that, walk to going turn turn Luca put I'm details. ahead, Company I a fake overnight. said very The And through financial James out speak, ago, over to so Luca. news, the over that it to very, further it to few and minutes disappointed to make then got comments, by successful had to with some Go

Luca Fabbri

testament a the cost active growth capital our a and that Company maintaining program point of very, efficient to significant you, I REIT very of presence at see Company's index, wanted growth milestone been regarding the success May cost-effective as thoughts ATM market the we the number to The the capital in markets capital were a as share wanted on while and such Company. the industry that in tool and the of just included and Paul. have of the REIT that is Thank quite control in over We Also see out a raise couple more the capital. markets. index. XX, the in to one We MSCI commonly with to we RMZ markets. capital of as

this of far side. the A on -- So index. in year, MSCI note the year-to-date approximately inclusion which $XXX our issued just actually marketing quick REIT the we some around million

-- that on will we us more the on and you his Company's see performance. follow media Facebook, social up James? presence over the so are forth. to turn kind and will James now up and the better of and will are of communicate Please for running in channels. strategy on a the I And to new on ESG Company soon role Company's have of website overview so on call LinkedIn, Twitter, starting we of also financial to widespread step We the kind presence

James Gilligan

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

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

First, I few financial Page that a X. metrics share appear on will

revenue, increase in of or an negative XXXX farms June to Net 'XX, Murray of in say operations XXXX 'XX, due reduced to compared weighted for stockholders and of the is $X.XX $X.XX acquisition as net For $X.X $X.X MWA an $X.XX reduced QX stock. end compared legal QX positive for of average increase internally $X.XX. positive $X.XX. share income expenses and an and negative the million. XX, AFFO to on compared $X direct million due to for share under expenses accounting greater $X.XX Cost was General to compared increase of administrative in was million in due per preferred to per an positive for months was was Wise higher 'XX, to AFFO $X.X of XXXX the was Improved increased distributions number million million. were QX performance three late million to XXXX. $X.X available 'XX, QX negative we of Associates goods increase largely XXXX, compared to $X.X higher of sold negative XXXX. positive common income

$X.XX of to XXXX, XX, 'XX, to was $X.X was reduced of for A was million, AFFO offset and expenses cost million $XXX MWA 'XX, partly income per million. increased reduced $X.X preferred legal stock, an to negative XX, June increase to to net $X.X was for compared QX, available 'XX, performance negative $X.X directly acquisition common stockholders and due year-to-date Total accounting an weighted the increase debt million 'XX. $X.XX farms to the distributions in and positive of an expenses general June income compared ended in sold due at per administrative Similar to since in months by operating six goods increase more of of late XXXX, on XX, of 'XX, share AFFO million. million positive preferred increase and $X.XX was XX. as $X.XX. was XXXX, June reduced XX, for as of count $XX by Series We balance compared positive have July to for million revenue, we The share $X December $XX million within an diluted an quarter. of of debt the million improved positive million. $XXX.X $X.XX. A compared Net of was $X.X share For $X.XX preferred negative increase $X.X due over negative million. increase Fully to was Series average net repaid the

the entire out overview table. I couple XX last of on turn took the call. Page different I today's to listed of quarters, minutes components review to our statement. Next, to the provide through a we the go will won't in In two an table income

of annual the on for free QX analysis in any Just compared values paid cost feel large described on for but Page The before QX we XXXX that planting XX capital following XX positive that categories The this follow remind the to the if farm of XXXX. basis, in gross quarter. first XXX% perspective the up. the highlight Page less working of that's portion a Thus, to questions, are leases you people couple number items highlights, profit one, sold. operations to XX% of a a goods of follow are: from different generally direct revenue we two, have number year. show charts please And for on shows a charts the fixed rent, to

'XX. revenue operations, $XX the variable total on million is column other You goods 'XX 'XX items. compared less variable can from a the QX dive direct was payments, Further gross to sold. 'XX. right-hand cost the of payments, deeper and payments, The $X.X QX QX on fixed and see fixed million profit XX, bridge into to variance for creating Page QX we down payments

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

after compared see, in with occurs variance listeners items, The revenue $X.X remind As fixed $X.X in was all harvest The was largely from the up in the decline million was positive cash last and QX other vast in payments citrus to due acquisitions, lagging year, the 'XX of due was and to you QX crops XX majority 'XX The XXXX. and in performance quarter. positive fourth in expectations. nuts year-to-date of a line show the 'XX. dispositions up on with variance in the In was numbers million. due to largely XXXX Southeast. is and, associated to same details, QX part a we tree payment other farm can not largely 'XX. that Page therefore, from final pecans payment in charts that was variance The variable information the for sold to The for

On Page year-to-date with can the up show total to $XX.X fixed Further payments, profit 'XX payments on the million variable million. you 'XX, same from Year-to-date, broken as were items associated other up to direct XX, and for down sold. compared $XX.X row-crop top of the payments is fashion $X.X on Same we dispositions other see the page. items. fixed gross $X.X Again, 'XX cost right-hand the was 'XX. goods million out the the less million and farms columns two operations, the fixed revenue previous acquisitions, charts, in year-to-date payments, was year-to-date

Grapes mentioned that second ago. all a performance, the as that quarter 'XX to For by crops timing was up ago. QX XXXX revenue received QX bridge the was QX XXXX did due was and item year-to-date into is first tree mentioned in 'XX the impacting to from the QX and QX slipping final lagging to were any down that year-to-date variable also after XXXX, not Citrus from was farm sold was lower which other that in benefit moment from were harvest shows, a down, while details, caused previous nets quarter. caused the in by payment a really quarter slipping revenue due minute down

categories the operations, profit described outlook for On XX, other. variable lower, increased increased updated -- payments the Page payments, page, XXXX. due acquisitions the gross fixed next table XX pricing leases payments, We direct Page export slightly. decreased and starts and demand the same gross we to citrus issues payments on charts, the major are Fixed shipping and operations profit to lemons at Variable Direct new due signed. by and ports. changes, with caused changes

increased Other harvested fruit updated will third to from due Murray the We throughout Associates. as is the you sold Wise additional keep quarter. business auction

due the administrative is AFFO. On Wise $XXX,XXX the the incentive Murray expense side, in treatment That acquisition with general XXXX. accounting the added to noncash approximately associated late incentive noncash of to back and increased

higher up from has decreased to expenses travel $X.X per million $X.X to Legal Weighted offset to under share shares decreased May, results expense personnel This addition, of projected. to $X.XX $XX to lower back In down That of the levels, comments to range debt Company's increased and due this accounting expenses. by are litigation now the the spend range litigation for back and begin in wraps expected back million range rising program. range morning. shares $X.XX average compared decreased than Operator, lower $XX.X $X.X in the trending interest This to from slightly million shared due sale to million the in session. from is $X.X in $X.XX million AFFO $XX.X the to in in for million May. $XX.X partly the you $X.XX ATM question-and-answer AFFO can Interest compared my million rates. May. today. million range to to due originally of to

Operator

is the [Operator from Rob, Janney. of first line Stevenson with Our comes line open. Rob question your Instructions] now

Rob Stevenson

ago, increase you off three Paul term expiring about that a were years can of is of? ago, XX% you off is was the it's expire, that leases leases the renewed? on or signed that the Luca, what So year plus, two up talk that years ago, what but

Paul Pittman

signed off this signed usually is if don't XXXX every leases if single increase true know lease years an ago, majority of that years will be 'XX, was three been were -- have would three they in I vintage overwhelming leases. would ago. That the it's -- have but leases been

Rob Stevenson

annual what bumps leases typically them? terms did in of those And have in

Paul Pittman

in annum doing the in from have bump per had will thing that It era, them. that They common generally, a was most X% era. were we that

leases significant a total rents. be then and than higher And of we're will this are based were that the sometimes and now living X% X% carrying so And of cost bump they CPI sometimes lot in historically. adjustments on or a

Rob Stevenson

Okay.

the goes through that X%? CPI So to the bump CPI, to at either X% one goes or X% least

Paul Pittman

Correct.

Rob Stevenson

On the leases? then go in And new -- ahead. terms -- what

Paul Pittman

XX%. onetime Yes. That when excess the is XX% cost adjustment living And lease that part not is just in a over. of of that jump of rolls

Rob Stevenson

that I looking in mean, at then And Okay. roughly have typically haven't guys that renewed the been yet, as two-thirds to of you or amount close XXX% renewals. terms of

hefty going issue that be guys and with assume renewals, crop comp I terms over any I whatever these a XX% you given settling the that XX% on, et wind make to there up from back will prices, their you or up But from up at guys is even forth or there going standpoint, mean, they're operators. not So cetera, dramatically. just fall profit standpoint prices unless their

Paul Pittman

level high. a set. farmer that but year farmer these on change this decent And I or will think a strong. the profitability. to but last to -- difficulty higher, outstanding got don't haven't economy year, don't just renewals. any is prices farm we There's sort it's We've It We I year, had on a quite The crops think last XX% be are increase here. rent and be don't historically No. success got crop. group be The anticipate in collections and slightly mean -- quite of -- okay, are any there'll I going increased are about crop

a a chart down. soybean short-term you -- the or days, If some are have is of my prices but are this feels strongest But future, prices XX and in down, this continue it chart if ever had XX-year grain two-year and -- you look will prices look farmers at foreseeable the is if to XX that for chart, opinion. of corn at or a like happen

So that. strong, the and is farmer we're a of beneficiary profitability

Rob Stevenson

today so the out that on you rather in sale given you interested How sale farms farms acquisitions to guess pay than that more second of both I pricing a in improvement farms of in are having for to you good for availability up you? make the related you'd versus number What for the market there the of bit and today, question, on in still that characterizing at farms sense is those also the And where that here. those? about years you're and are a economy quarter a there prices talked couple sitting And acquiring farm Okay. are there's ago? out the selling? interested Or picked in for of terms plenty people be

Paul Pittman

-- there. It's so different questions of lots

still So country year. XX market now It's a about is strong. feature, is XXXX our farms been somewhat is It's class in the rapid asset but unique for is the an appreciation though, year the very number appreciating. is market the farmland and farm when I more economy farm an market. XXXX always one, strong appreciating The pricing come muted that in rapid, strong to farms appreciation. best for appreciating months, The think, of

If the and that off or everybody sold not you see farm will are, volume those probably economic in so farm sale being are volumes in are sold weren't you And a feels economy farms farms their farm. volumes, have prices cases, prices is the wouldn't that forced and sidelines strong. additional times, farms. frankly, bring selling very have good in farmland Nobody is the sales only best When strong go of study high only in basically sale good down divorce distress. death, that tough

So to the be want we in for us, market.

portfolio. the long-term We quality oriented our are of very in

prices this assets best we this in even is are one because market buying trading. are be though to the high, need you So of farms, these

Rob Stevenson

better and/or especially markets cost specific order today, given the capital are that and broaden quality any to Okay. That's there crops in your improve And helpful. portfolio targeting today of I guess, resiliency. you're or

Paul Pittman

Yes.

of at mean, the I returns Midwest, the places continues amount there. strongest the the the if think yield back and appreciation value and to has we've core been look we've current had strongest public, of really be immense strong appreciation the to portfolio I that both -- has from come an over time. appreciation added Midwest this period the you of The over time

rates in -- that a additional Midwest farming will high-quality So cap the land, in just are deploying It's very, better continue That and also, the for discussed other before, a that in in leads Midwest keep environment, problem, high. the we as rates. And in being low-risk particularly said, appropriately to capital California. the adding lot we'll going cap return risks. overall benign any the assets than -- crop in Southeast. also lot of But competition the Midwest. frankly, we're a diversification The we in so is pretty The not probably to add very low very tenants, is other environments, pretty and low the total to frankly portfolio. continue place the Delta regions, though, of

cautious. are We

do a I than there call in but of will prior because months the in decades, specialty I said Midwest. They operations couple there think of very water successful earnings California be high-value yield ago. growing current -- better We're for the crops. still have cautious risk

So to there. to we continue invest want

there. a opportunity And of so, strong good the out pipeline lot is and

Rob Stevenson

What's lawsuits last the dates status are the not last me. of legal on notable mistaken, hedge the up If And you the that? then any one is of I'm coming And there current that fund. against proceeding? left Okay. for

Paul Pittman

an in that of proceeding current that appeal the status is Texas. Yes, basically it's legal

think The anticipate fourth court technicality on now. the in to of do results don't the on There's going sorts activity issues. lot activity they'll get during will try right third some of We really quarter. Maybe jurisdiction has appeals much and other We come not to be of side a there successful. the continued quarter. out a not other of of out

costly slowed in only going optimistic the about case on. still legal but shareholders successful recovery it's lawsuit That And the the still as Just far We're spend, substantially. but all point less tracers defending -- against at than expensive down against pains some us. it that for is as case the to future. our the of this, was hedge against the part But fund that's me behind say Company, that. the ambulance the was ourselves always most

Operator

line your Buck, the Horne from comes Raymond James. of question now next line Our Buck with is open.

Buck Horne

outstanding the results. Congrats on

XX past the the that side commodity certainly price the mentioned But over have so. year, -- wondering far weeks in front into achieving over so context coming or renewal recent any your year. affecting the we as effective this in back that rollover the in where there's of that been been or of farm or prices renegotiations half past years the XX% happened the other are maybe look just and You of prices few you've is rate the pushback if recent from rollover the half I'm commodity of so X

Paul Pittman

is we're the going XX% but that we to nature is, we running what it No, -- are XX% the renew it renew tend managers it assume to easiest farm materially or -- farms I the entire renewing. our reported achieve We being would to human above the across rate currently of reason first. leases group we better renewal we're way reported

right over it will a we're So but the XX% improvement think number average will below I now, back weighted we think the don't from pull pull year running on it absolute at basis. prior

prices, be a question the of is context the bit about grain days. although important, recovered top last come historical quite in we honest, seen grain absolute have it's to markets the to few the So just off,

July over around a a were the out CPI. got prices Soybeans range market out right see last in few in soybean top In high weeks is prices. corn things. for two sort overwhelming really, or The come involved strong are the higher. hovering lifetime days of come the XX those being of of to my XX really bit. not XX even years, or if temper in and last little started X% the These has yesterday. What $X.XX seen XX $X. different when agriculture, would inflation prices XX up, example, for numbers the so We've we've We'll be prices in the hopefully

and second grain to has There bit. food to ship the a prices is sort of was the the premium war grains market allow to thing out taken out little of corridor Ukraine. agreement so pullback. But Ukraine a that big And of the be of a humanitarian we've part

Of course, this follow bombed if Russians you day agreement signed next the closely, on have port the to appear was day. the the and

will that not actually of amounts real-world humanitarian sense. kind So sure to sure it not is work lead corridor certainly think to of of about huge a going grain sort moving. I mean in this

you're bombing. really huge ship to port where owner Sea, If bulk there's appear in at the put the be a and of Russians a you Black want mines where to the

If a worker, itself, there a Ukraine or full this farmer be ahead do you got drop the was the My didn't drive or trucks is they really out across that's in that and to this a you're Ukraine. the issue we're to of to to And going plant or you in seeing a in silos. grain It's the come a a work, fact of days, want market crop really wheat. that the want stuck real year. little trucker, is not sense if few port war-torn country, those last optimism show grain the up do soybeans you're to off corn of bunch

'XX come to Western per the sure a that and United bin-busting I Brazil, States Western who that, tell. of an the it. already the a commentators hope suggesting States a the the have crops fact, think date. will producers are from planting going world will crops worst crop United because down to of only world change is world that I a and example, given Europe that and in the be the I currently of of yet. don't sort they've late shortage the it where the having give XX And But little of you there maintain least through happens. had and overall is If in 'XX. shortage really food two early be are will The to can't can you to of Europe. their into another We the of is crop in yield really for lot States key good in just projecting the secondary the good come is that It's USDA acre extreme to in hope the and for rest too commodities, even weather. swing decades. months heat and wait it is probably relative at one really probably got are in happens, producers the United of and think, it

And so this Hope relatively environment high to helps. bit. price for quite that is a going go on

Buck Horne

still in in shift extremely with half in index the the NAV on That's That's to where the a I'm helpful Company half believe the still And do back evolving your Yes. you you the thoughts in of context NAV. inclusion. don't are conjunction utilize though, gears of the color. helpful to around that is? curious, strategy. How -- that. front ATM little you a the trading of versus all commentary. that how the I appreciate utilizing comments the year really why bit stock discount the ATM at your of And you material trade-off obviously,

Paul Pittman

Yes.

I So does of dilution have a we is to we calculation mean will use to modestly run as my guess ATM we says that far. do Internally, it the the so continue sort what that think balance shareholding dilutive we're meaning is than breakup sheet it existing NAV think higher equity to we issuing basis, issue we a to the equity. where issuing we're value shareholders if at continue

over us from periods in against that XX% it has good of shares can frankly if total to the a that IRR holding of that equity issuing of So to balance you the or justify like I we given particularly is asset, sensitive return that, dilutive front sensitive really slightly amount And are. X% of an that. you a we we're I'm have opportunity deal and acquisitions own, X% perspective. P&L rate or make have very a to to it but accretive

are debt we way. sort of expensive higher the -- modest dedicated the the to as year, we do in balance, And and balancing for don't in just current by Company that the risk. down. leverage. they shareholder to to doing think delevering a But XXXX, have And Again, over delever derisking, slightly interest more we We that's we portfolio resets what's of the that is will why will it's reduce continuing the thing with roll the second But The this we're capital. reset -- of a value we more. and equity some relatively working remainder have any what's think rates by we'll yield do and acquisitions. what's on drive equity level continuing issuances

any you worked. We're graph, XX% like up or it's price stock of If obviously do year-to-date, round kind numbers XX%. something stock strategies these price index

our not competitors, down. certainly everybody of the S&P, that all REITs, else the up other much probably All is and

stronger convert major companies ourselves also And are. they to like Deere John ag up and than We we're Corteva.

think So I is $XX a $XX although think I range stock trust we pains NAV or in we're getting when every it or the issue me right higher. time it $XX me,

Operator

your the from open. line line Dave is comes with now question Rodgers of next Our Baird. Dave,

Dave Rodgers

factors? How modeled you the which kind is of there. seen see. start while year? related that operating guidance the year the which first was acquisitions, other any half Maybe I to the in was that the was And versus the better-than-anticipated The we've have guidance into a to time much of rents James, going in component up, than first of don't know, the net of on good

James Gilligan

Yes.

components? -- you your question? that you the operating repeat Sorry, You said can said

Dave Rodgers

your versus Yes. portion that modeling else? Through the much better-than-anticipated something in own how that, right, NOI, of by versus was of acquisitions driven top rent

James Gilligan

Yes, got you.

new to have leases acquisitions. this that fixed acquisitions kind that due that's payment of signed new year really that side, and were in late in. related were were the to on those XXXX The signed leases So, been would factored

of raising Murray this So year. it's basket have things that payments of Wise a due in activity bit activity, little increased as and auction activity. to other lot the progressed new is payments Associates we there Murray other fixed been activity. strong how But have really sort And -- activities that a really to on just that's of mentioned component And the really Wise due in at the were seen brokerage a Associates. year. And we've the of And there basket. up auction variable big kind throughout

So it's been year. a for nice this us positive

Paul Pittman

the improved leases back a same-store the the new of rent row you at increases a might look the the business, those our question, slightly it that increase. you came Wise renewed almost strong the like three in But very strongly models crop To business of Murray accurately. things simply buckets, from acquisitions equation. million going crop level. revenue additional positive, $X think in Dave, things few we coming at mean we row the then kind crops I That's agriculture, 'XX. it's a bump specialty and and of the positive Murray crop neutral, year sort Yes. from from specific an broad side Wise is I -- happened and nice that of That's and a the It's broadly in agriculture, specialty time, of maybe on operational when boom think what's team positive.

Dave Rodgers

about you well? I what's trending how you of half or acquirer cap at is a helpful. two you question the of net the yield net Great. second sold look the a second year, then And first of stance as you're your year half investment see and lot guess continue that of in rate questions, in the I will half than that, to assets. one second either in is, resulted guess, you that half, the year That's as you targeting or think you the in When spread the more first the the the be that

Paul Pittman

Yes.

net the acquirer and terms we will across in strong -- second offer, on for certainly half, would be X% round the maintain a rates, in are came in would be to sort of rate to cap is be we're likely prices acquirer a super average portfolio. cap trying somebody range that it sale, on plan and farmland incredibly think assets. to we're everything our to a net certain take Obviously, the paid numbers, But be made aggressive a if intention. of the I So, And own being we assets. probably always there us

portfolio cap up every rents, XX% original it's the to get against when important going looked is that in rapidly. our can't But you purchase original in that at if rate You grasp you against XX% purchase location. increases making or your price, price start pretty

up evaluate these portfolio getting as increases to starting the you through. in the creep cap pushed purchase we're rent if So see price it against original we we're across rates have

into price that those on though farmland have it that, going when kind got rate decades long-term lot cap that, and the obviously XX% additional didn't price a of rate or forms sense, A purchase you've for of I have own to well make the purchase today -- at in increases of embedded improvement as and change, assets because acquisition even you things example, XX% against there If a might that CapEx personally you on on cap in rent the a the comes original are to the asset. front. good return as didn't look

Dave Rodgers

in along you a helpful. I think more balance guess investments target maybe trying assets, toward plus net about kind really asset acquisitions? as just Is that kind options between one that's do to those at topic want the rank mean and for kind you selling weigh as that I deleveraging those? you I'm to where of as your guess Or mind. maybe question of are guided -- you No, equity? look figure is them deleveraging of final about the think plug I you sales And

Paul Pittman

high. balance. It's a Look, really balance. a leverage of is, Company not frankly, really It's the very the today

basis, the of own. value in this on billion of X.X-ish portfolio looked current the we is about Book a assets market If range. the value something you is probably at $X.XXX

adjust economy, in And is frankly, ago. the leverage kind it's for true XX% community decade what value, care lending market and a paid when farm of now. a we which They the We're worth lower don't so how environment. it down for or what care you I works,

equity by on the that look many bit. than which in at preferred in side, quite throw the is you it's If a ways to even the lower it, way right

can, we cash we in by like feel particularly the now. given environment enhancing don't debt reducing interest right rate substantial the we have but where like leverage, we're we flow So,

digits, that, the those pharma a think low your balance crummy total to though, of the couple mean digits. farm, of sold farms. single X.X% against economy. sales round-tripped was fact years. occurred that have That pretty sales I most farms It's when in You return, acquire of IRR. last we double in We've million you I of high about $XXX

lot now, a that run better. or IRR sales really X right we we if doing So were of rapidly XX or probably up

you just of debt, at the so, yield current farm on kind look the can't look you And can't really yield our have to total at current a return. the in -- on buying

a which the and much think balance equity is, So, things. additional where the It's to we'll the we where -- really two balance. total of how a we really best question deploy is return have

absolute trading So don't think of map. sort I have things. road those off we It's really an just opportunistically between

and I you year the in reduction see debt is further the can think acquisitions. of further some rest what some

Operator

queue. in more no questions currently the are There waiting

management I team for pass back will So to the remarks. call our closing

Paul Pittman

the out thank all day next hopefully, you up of a two, And quarter. the all little very We're Obviously, news you accurately, Goodbye us. get Thank that didn't the Thank in now. show your you the happy or in but for today. about for Great. performance the market. it disappointed will joining all. time

Operator

for conference participation. your Thank today's call. concludes you This

lines. You may now your disconnect

Farmland Partners (FPI) 27 Jul 222022 Q2 Earnings call transcript