- Earnings call transcript Q3 2022

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Operator

Ladies and gentlemen, thank you for your patience and thank you for attending today's Farmland Partners Inc.

Third Quarter 2022 Earnings Call. My name is Amber and I will be your operator for today's call. [Operator Instructions] It is now my pleasure to hand the conference over to our host, Paul Pittman, Chairman and CEO of Farmland. Paul, please proceed.

Paul Pittman

Amber. you, Thank welcome conference and Partners quarter third Good and to webcast. earnings call XXXX morning Farmland Thank taking in about our and you further releases. business these for press beyond the time those expressed the filings hear public to insights to I Christine General remarks. Garrison, call preliminary Counsel, customary our will some the now turn over for Christine?

Christine Garrison

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

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

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

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

Paul Pittman

will remain world, high. States. even and in extremely Western continued for appreciation slow We the around Thank was been the for of operations Land QX AFFO was company. strong strong up will has the you, were to and The Operating up the another compared very was modest year $X.X Christine. XXXX. past benefited This values. Europe, but quarter over commodities primarily strong over in up. rate and Revenues the by of million. from months income was This the think, driven stronger in was continue XXX% XXXX. arena, quarter continue may lower Ukraine and weather high We rents revenue X increased primary our be in XXXX, in as increased a appreciation to Farmland of fourth fixed fee America unrest United it challenges shortages expenses. on South is the crop for Farmer and the litigation profitability well. leases, will trend this and brokerage largely is row auction think the up

$XXX the the what and strong the and million As comes a position today of in we recent in outlook far puts the goes, company’s have liquidity. matter economy. the position overall as weather think farm are rates. interest in we This given company inflation the But liquidity investors will approximately available the quite We secure coming nervous particular, rates well. all of economy, increased no and storm about

few comes prepared I Luca turn to will it no well make our to a wanted we over Fabbri way. to that, So matter be what With comments.

Luca Fabbri

drill a of Thank Paul to you, like on into values. which little Paul. a farmland topic touched is that deeper kind briefly I would

the appreciation its -- already strong our in August, the the and regard investor in calls, call seeing at prior trends land value basis country of throughout asset call, as the annual been farmland beginning USDA XX months. most survey talked we we have sector. quite the we prior to As values released the estate consistent class reliable the which our evaluate real in the XX most last in After in -- to

is came I one just the total numbers. appreciation last X So different the couple the an quote as annual over I'll and appreciation last quote appreciation and of years up with to terms USDA of numbers in year in of One want a not some the that a year-over-year number. is as

XX.X% up Iowa some So real year XX.X%, years. were California values in estate over values over a was X last year, Even like year was for last the the seeing blistering XX.X% XX.X% that years. challenges, in the XX.X%, the X X up -- last X last last XX% XX.X% up drought years. went the are states years. the XX% over up last and in farm in Nationwide, the Illinois

row that to the marketplace -- And a types evidence those real not of we all really, importantly, values please really by to our quality USDA. reminders, so use for probably farm And are They're in USDA's can by valuable are of numbers, blistering just farmland all to the pay less the estate buyers strategic upper especially we And tend by pace, these year, that expecting couple you all the USDA buyers. quality from to see anecdotal very, in farmland still strong. tier for So do in the P&Ls as more we appreciation of are these in largely if said, for was secured multiply we acre largely see trends. farmer to year. have But USDA sales strong statistics largely really again, at rate tiers. but estimate are the state see on stats of own the farmers, per we the some appreciating than saying, their this already economics, you Since upper Most farmers. come remember look of you actually they that of USDA that crop and that. next the And numbers also, the up therefore, focus the quality Paul next and we value USDA is They across Paul By and the values cash quality the economics perhaps per are at incredibly while values. time. a way, appreciation portfolio perhaps very The as that use for are acres however, to due to even XXXX. of publication actual buyers year of are the and increases. are values are crops, comparable acre are at tiers, interest are with values really largest continuing quoted leverage values go in farmland their that really values, number statistics, time -- faster tiers again, that farmland

So we into appreciation, the next expect but remain these farmland down values year. slow to perhaps, -- sustained to

near -- kind X appreciation seen of to every to had the the farmer of the to technological go the of potential want of again, sideways appreciation, this thanks potential couple in that single was future. there of the therefore, in months. continues up of it's also X% years last a appreciation drivers advances, last and there our the in really really a to pent-up prior X% also has the acquisition the quick range to in economics productivity, kind XX that make X% come to but lot XX But appreciation to X, So marketplace trends, year. [ph] last fact in on potential comments I we activity

to will especially cap a very expect either lines But the of to expensive stock Whenever those kind equity opportunities very of appreciation strategic return form in continue. acquisition or of will on available of factors. liquidity expensive them. and our lot or in activity our potential expectations, also credit. of attractive expensive. we more selective opportunities, of you And rate mostly That potential us terms us but be in due the we therefore, attractive terms form both of price are jump more in lot either in it other is see because but We capital to a is is can have available

by For close with for his the across contiguous board. that, example, overview own, I we is on our if we those James? something really see Gilligan, we of local value financial that performance. that the to or the opportunity very CFO, even buy of call turn And James the will now opportunities they over a enhance to company's to the continue whole of the kind farm portfolio jump because to will

James Gilligan

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

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

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

reduced share due to of number negative compared Associates, $X.XX performance earlier. were increase XXXX, XXXX. to 'XX, QX XXXX legal in 'XX. stockholders weighted XXXX, Net Murray the expense positive to an Paul $X.XX. negative and million, operations sold negative increase for expenses Cost to was was say September $X.X internally, available of increase largely 'XX, improved revenue, goods distributions million an MWA $X.XX 'XX, for QX to $X.X For of positive compared increase common to $X.XX XX, positive was was million we compared months income in of as net for ended of was cited $X.XX The AFFO was Wise acquisition negative preferred higher 'XX, share of in QX $X.XX. to late direct on stock. compared due million compared to X income farms and in positive an $X.X the $X.X XXXX reduced the or per G&A accounting to higher per increased for million. of due an greater under QX $X.X million average as AFFO $X.X

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

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

less on the took through different calls review if just few the minutes entire XXXX, call, goods items the of pages with on following the table. the of Thus, follow components questions, quarters I you sold. graphs shown on the we of sold. gross please me. won't The up X in go basis, operations table on to a the show of total total have on first less today's a or any revenue to cost a feel this profit is But highlight highlights. On table to free out revenue the direct listed goods couple are: cost

for a paid the annual the thus, from For first a are fixed capital in to leases of the large planting, quarter, portion XXX% we generally of before XX% perspective year. working rent, farm positive

plus Page approximately is that covered large million We the just that rent large farm comprise X revenue. mentioned, have contract contract on revenue of categories well the the the risk lowest for XX values items that parts I of goods on of payments less by our XXXX. of compared XX% follow rent QX sold. The of $X.X fixed show the QX cost variable business, XXXX charts over listed one variable to The Page very XX different for the described total

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

and separate X, 'XX. For farms are performance other crop before items other fixed permanent the the portfolio activities of crop the from were way the row farms acquisitions, the payment as here. farms We in January details, same same row dispositions, in various the category farms noise crop crops between remove and farms best the that the out we the same such view to grouped crop row that periods, as into row noncomparable

One dispositions million. and started million reason QX the the phase $X.X items within 'XX you 'XX. solar see, project large payments up acquisitions, was associated increase Fixed for is QX quarter. to was As $X.X with a other construction that its performance from can up

project that payment after negative expect year in Southeast. line listeners The the become the is variance -- in of under sold year, in The tree the nuts therefore, to vast harvest quarter. and in the quarter. numbers In compared the due XXXX. XXXX Page to the that same not citrus QX within that The in generating and crops largely The part information and we is fourth to farms cash not show positive in details, in me. largely The pecans expectations. a due We with the other excuse remind operational revenue occurs due is in variance therefore, all majority next of for citrus variable to charts direct the the XXXX variance year-to-date decline XXXX. for being on was is farm in XX rent to the operations variable

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

XXXX timing which 'XX slipping leases a year XXXX, QX the farms from by by did received were was QX other to in in due variable offset payment third-party tree year-to-date was in down really sold by details after-harvest QX not benefit citrus crops All rent lagging shows the in farm into item lower a QX paying quarter. the caused to second is under 'XX the crop variable down XXXX. and For [indiscernible] XXXX, slipping down revenue any that performance. also was to no final Grapes that XXXX caused while year-to-date down revenue previous quarter. nuts were is from Citrus XXXX due of QX from of

page, increased sales projections update XXXX. operations, Variable insurance XX, projections table the increased remaining on payments, for we lower for signed. in profit The new yields Direct and blueberries on Page due payment fourth higher operations increased for and pricing direct on Page to citrus the XX, decreased described and with quarter. Fixed starts same the and payments nuts other. profit next and due due gross crop to gross grapes. categories to payments, fixed the crop tree outlook acquisitions On leases variable the

incentive the was G&A side, associated million back That of added noncash to expense the with late due by acquisition XXXX. AFFO. approximately Wise Murray treatment $X.X noncash in to incentive the decreased accounting On the

update. AFFO trending other results average This can in shares July. you the to than In the range This to Operator, $XX.X of forecasted increased the addition, company's due to back this under to July. from we shared for last comments on sales items compared are lower begin my that various the to $XX.X wraps our of $X.XX now in million million Weighted to $XX.X up $X.XX compared back million the $X.XX session. to share AFFO million share morning. $XX.X question-and-answer range program. is ATM in in $X.XX per range in

Operator

[Operator Janney. question with Stevenson Our Rob Instructions] first from comes

Rob Stevenson

challenging that you what’s XX% Can certain about XX%? In talk where guys you geographical the discussions release, of going XXXX said the at point? with renewed there expiration. the lease remaining you’ve are lease on or more crops the And this areas

Paul Pittman

on is pace difficulty. we this at would time renewed expect. what XX% frankly We're with anticipating not So any

XX% crop renewals I we'll in with all row across increases up excess of regions. think end

leases fine. process [indiscernible] A are Farmers these there's field even the haven't renewal the but going in nothing. yet. of lot busy So expired

Rob Stevenson

Okay. Luca, with in increases that? comments are that, given that, are farm you Are line below that above rates farm values, the that increase How And increasing? how in in they characterizing then, about rental made values? you

Paul Pittman

just add accelerating Yes. feel level rapidly have we're being some because I'll great quite That very for fast. large when farm this of don't or sometime. farmland to you take that on appreciation it X going rate of one. values, if farmland we Obviously, as have you you said, unheard group last [ph] reset formed numbers got want. as to on Luca, compression rapid does of rent Those not $XXX seeing increases are seeing was but quite [indiscernible] year but we the are of [indiscernible]. now rents

Rob Stevenson

-- And Okay. sorry. I guess then

Paul Pittman

Go Go ahead. ahead.

Rob Stevenson

basically are The farm increasing guess should The we nominal a the on meaning now here. lag follow-up would thinking a little before to rates are wind that, increasing. I how right given that's a bit rents my acquisitions you decreasing being, may values the full right? are but that be basis No, about up catch-up cap get of

especially. about How capital your up early back guys side, of from point? the half capital in of deploying you and at cost are going thinking this year so the debt 'XX this is And

Luca Fabbri

the issue, as being are we cost Rob, very mentioned, capital are very, kind the we I because of of careful. -- -- of

we However, the for the a much obligations. that of we at do are are be quarter-to-quarter permanent we speaking, also mind see have of fundamental if believers in and as lower of think up We slightly to [indiscernible]. generally cap to we our rates we going potential return we class. values, catch that acquisitions reporting the still a look [ph]. are We a long-term cap not keep time rent to model let to total as have are that because rate company going asset But public get we appreciation period

However, is the That's probably capital for going scale. driver a are why we us being going time I during the near major cost now we lesser we to but right period acquisitions the said think about of this be and that future to seemingly it's in selective as acquisitions. do much of are on

Rob Stevenson

Okay.

Paul Pittman

I've I been years for just farmland section add is one now depreciation so. this the -- absolute want doing that. What to current. [indiscernible] to that XX thing powerful or industry more

X not them, [indiscernible]. as while you high-quality lot [indiscernible] operating farms a own of So costs landlord a the

of and appreciation drive asset the average. value growing in we fundamentally, the As It X% doesn't compounded [indiscernible]. X% or on come

Rob Stevenson

term rolls? your facility the Can what the in Okay. on adjustment And expectations are date then MetLife on guess then you what those the about Rutledge loans for early balance loans? and rates the the of the when question talk Rutledge part. to also facility ‘XX, And MetLife a that happens I then Several has sheet.

Paul Pittman

kind use couple helpful. from but amount amount it's the don't lot could forget a debt it of have resets. had of investors substantial of reset. of you other you in have terms but substantial where the background $XXX going coming during We a excess resetting could debt be this but that as question million. operator exact I calendar be I think year. -- answer the it's of the to a question debt know it of would as well do a from I'm number It's of we've scrachiness. a noise. I [indiscernible] Rob, got if

flow. instruments debt probably all them repaid we will flow those repay of but from Some cash cash can't be from certainly

loans as So resets with fully agreements rate as date. The repay those occur, at far those us most permit reset that are the MetLife. loan MetLife the loans of to

to lender So of point that MetLife want, we have shift to has they’re largely quite yield a different a situated or to borrowed the sort or leverage on a set bit curve rate different by from doing they money repay guided negotiating the with with wherever how MetLife. negotiate to what or in in with rest rates should of similarly We’ve curve said, in same borrowers are we level They MetLife those reset I forward They’re these all are. the date. looking That being we of portfolio. the quite their been think do process at this increase that. interest through they fair at expect some of authority before.

I think the that’s just reality.

at number that no is right of off so exact duration, absolute were resets tell higher there any it lender and sort discretion… any we the of We set and would of rate. are the impossible X because somewhat rates have really type. our any It’s instrument years it to because formula. or is virtually a within resets discretion coming ago be the When of repay of to The

James Gilligan

SOFR on where that from to we're And ranges kind over spread add that, numbers the resets X.XX%. to sort X.X% coming the X.XX%. it's anniversary just facility test an of are EBITDA-based now, And the on Right based that of the to out. on Rutledge, the of and Rob, it's

in might So where kind where that some of lower we might to are. we or into tier think jump operations, we spread, given we improvement top that stay

Paul Pittman

you question? to the want Operator Okay. to go next

Operator

Yes.

question comes Roth Capital. next Our with Sweeney from Gerry

Gerard Sweeney

-- I me been remind what you that? total roll to But Could know determined. be are to this sure of percentage to have -- farms XX% could me make just hear renewed you your year But are you of can for up year? I XX% that you remind wanted this went your through farms me.

Paul Pittman

exact we have I the year. number X/X. Yes, roll don't but approximately approximately X/X every

around to is lease our always where a most right common we're X-year portfolio than that because year but don't but slightly this X/X lease. I hold in a me think less the is it's X/X

about So in X/X have We the year. usually math. it's given renewing any just

Gerard Sweeney

little as well I any on it it. to Got a a questions. were coming of lower lower. couple up so full I see different A year. material Murray various if thought just we wanted was bit Wise just

and this as of acquisition is -- curious not internally more Just part a hitting you I and sort only of it little stride to that how how about revenue felt think the but gives just Again, it some acquisitions for get opens that curious that for but purchases. MWA potentially sort reason -- up opportunity if some… slowing opportunity some Yes. maybe maybe I bit of opening up the

Paul Pittman

A and months, performance XX-month hope that's higher farmland Farmland business opportunities carrying we've strong from The that about without a standpoint great first back of frankly the XX has a at my staff broader acquisition continues. It's is from that sale profitability we more quite been perspective that rising financial done to it performance, than on a the that overheads into of the entire probably standpoint acquire has good. estate outstanding. market. and has We also the brokerage that business been inside giving of business in of reach hear From real properties are rapidly Partners for But performance that the and expected. revenue us performed properties best in ever buy the acquisition look obviously very to life. of a

So positive about say going. that we but of it's acquisition kind things and have to how nothing

Gerard Sweeney

bit for a little become little of bit palatable, if a more Is in a invest lack the little word? less there a maybe better and pivot opportunity MWA to acquisitions an

Paul Pittman

-- We're cash strong Well, maintaining though very the interest a palatable higher word. is to a wrong in rate a flows in sensitive reasonably environment. rising

business. farm management both of Murray in of side brokerage is, the first continue we grow business. but also So would We the answer of your to the terms grow that and would yes. We terms grow to Wise in question will auction the

the possibly acquisitions. think growth come through both I small will

We last months. tuck-in acquisition was a have in XX It that expand to business quite modest. done the

it we'll something and So overall on improved business than because the hire exactly acquisition year. estate we I it's not performance calendar year in hard would that team are next grow predict Murray members Wise through done. is also modestly that, our profitability bigger people of what's the did we organically happen but from it lot slightly that the to which it's more revenue of will business but for a percentage grow a a real what a have year, focused XXXX anticipate will that compared think, in That's business given was But to XXXX. we brokerage and it going market, business this business. be on And

Gerard Sweeney

Got with very cycle. a forecasts, -- Ukraine-Russia And then but XXXX spoken good had it. you in obviously, in just not We we’re the up I’ve the past war.

in you’re very we XXXX, curious cycles think, you -- bit think yields, I per further increased But looks think supply-demand have se? out, I out multiple what some and good. seeing little but looking like past on through data said, where at what -- are XXXX coming is And one some the you imbalance. curve? this a And been I are we obviously, you’ve just to seeing

Paul Pittman

Sure.

for the a asset in the On and the farmland value to this negative plateau both and a for it's positive Farmland, really and look, then number in a And the about that back, farms headlines scarcity collapses. things, sale value. world the suggest sales What all that. values prices you'll land when surge discussed down So before. think doesn't not pull and see really reasons cycle. a go -- surge It's be and I real about of frank, don't the and farm farmland cycles talked is other economy the another and in we've we've itself, and happens then plateau. in

from actually distressed would less during And downturn flat take it stay in in distress. to numbers And sales. tells it downturn. or seeing a So you're you about is -- more who's only a that are someone what not nothing those buy farm

turnaround they on general what profitability, of is is little happens long, But one. important bit in market year. they or as compared strong to they long they'll averages crops, for what to soybeans the economy, one, in probably -- if carryouts X fix cycles cannot I XXXX the by will those that be low long-term that's a XXXX get farm will the be I years we've least it overnight. is historical be crop the know X a relatively are X regions one, expect mean wheat, bumper reason X farmer I to primary X.X this to the that. in are and standards we're X as right prices or on the year. grain and corn, by the And at that is don't year for same and crops X pretty the but growing short a and farm that say in that to historical are economy. years now major So that in long-term note. I'd completely country The take general. got into would meaning The go is high a X high. of fixed It in this

least away. And away grains probably a being so than year from surplus a more at a year and we're in of the

it of or The grain commodity at farmer in least it that the to his sold successful has farmer got this XXXX at forward capable of you've some point, is profitability keep other grain. characteristic is significant about important percentage of 'XX and mind maybe though, a and most

best that in as We up. never days saw or finally of it issues and farmers struggle So farmers, when themselves of very increased market collections have debt due that's XXXX, the rent and from ended the -- on they the turns, sort like downturn the back getting having have from XXXX in bad insulated cracks the a slightly X this we high which first comes. very our cycle but year kind prices even cycle last of when of in is in growth will who the showed with time they really We about or grain they were hard the when summer didn't got until XXXX. -- collections which tenants, our

'XX. was sort X all very debt, It the of asset -- And away. bad with those class to because extent an sort we little did 'XX, forward great then this didn't years that was everything just sales. So of and maybe is again, at still all right happen where struggled of 'XX, we

So think cycle not front worked. we time for that's That's sure. downturn it's us I -- when into go And know in I don't yet. but how any cycle the of it's right don't that

Gerard Sweeney

final Got my one And and you was sort it. upon this of of question. touched

know was I So your what farmers forward do they’d the a Obviously, sell they but how you portion? just curious of decent crops? do I if percentage -- think don’t XXX%

Paul Pittman

some that there's almost their and obviously exactly they're and top overwhelming crop forms that practices, that. I'd crops say XXXX they I probably at least portion of would somewhere XXXX best marketing do lower them are of row or the side But year, majority, survey the they insulate a XX% on practice don't to can between it's say forward. all some downside. for their different way selling already We that XX% for marketed use producers forward for of year. than the to so. But their year, the probably markets appropriate an XXXX those XX% And crops or in is like

this, like might this. in the there's commodity disappointed price, But prices trade sorts in they they guys like options, price different are not they on it, are If strong rule Now they much. X the months may prices are going may strategies. may market put they completely unprotected XX it, when good But a substantial marketing to portion advance. these if of all the very they were are not

Operator

from next Our with Baird. comes Dave question Rodgers

Dave Rodgers

third point of looking pay the Wanted to rates some maybe next your year be to a by third year some up -- though, like not interest this And the in mean, quarter to at and I still to off refinancing. to I in James, the like-for-like year increase we’re at Or of next could that I have versus put that expense XX% that set follow you’ll on today. quarter realize range? kind that basis, the guess, reference it kind look is you numbers at the is in just When on table? that be XX% off. lenders

James Gilligan

moving. I just it a where think rates about ways. kind couple I Well, of of about One base thinking is are guess

is if you that of curves. at same in treasuries, sort on look where look in look it future, If you the is you can those whatever back trajectory. and -- So at we're looking see it SOFR, the today at you and And time frankly LIBOR,

in that's So the market.

looking reset of where partners time. frankly, resets kind but everyone think they're talk going I advanced trying these pricing, we is understand at allow they're we're data, take We at seeing lending that where our know much can. It's that in pricing. to the exactly to the don't to as don't in information. early and as exact The mechanics

it go you assess we'll things curve looking Dave, we the same we're I just at but certainly So the we're in would. higher. think as And, seeing way

Paul Pittman

add I think to just that. would I

Dave Rodgers

I appreciate that.

Paul Pittman

you remember, substantial recall, is X% borrowing you $XXX well. that's security dividend resetting. at in got not to rents. over that's our preferred a of have is locked then favorable Dave, million very of as still amount all think, I we And as of yield There at borrowing a

But inflation. appreciation particularly that remember, tied mean year. -- got value are interest sheet, not it. interest you to big increases nothing is being is the debt interest managed going in positive the our to it a That think driving it's for mean, this. in directly be We'll company through piece I it. happening increase I to rate in said, -- to XXXX the about always Inflation just sugarcoat is the is company more a is our great So factor nobody to rates I change. of even side There of what's should farmland rates. the we're but worried than not balance going operational things

that will driver that and depreciation so. of creation our land wealth in continue key class to isn't a rates. driving inflation is depreciation. land do the So asset And interest It's

cash but So values flows -- to you good take to we the farmland bit push a got will will -- bad. strongly. suffer to the forward with little continue got

Dave Rodgers

to wanted you. go I pipeline. Got back acquisition to the

would I you'd embedded there you've think like either should number of in that something, end achieve walked you more And year. have do Is line the closing? the of of being got be opportunistic the by but the you a acquisitions you cautious. anticipate a have guys we to where pipeline kind between guidance or

Luca Fabbri

some being small. Yes, acquisitions as it we the do in I characterize pipeline. would quite have

Paul Pittman

kind a acquisitions somebody process. we higher. But, on farm we and the back asset starting We're try bit our this summertime little look, aren't to from rates slowed don't in got -- down started to of them, we going or who through we're follow we commit because -- saw out interest going We buy to to an a just do that.

So door just going pretty we pipeline close. cap we of nature sort of are the next we acquisitions lot we've a transactions those do the for were in because acquisitions the assets Luckily, mean, buying. know rates always continue improves strong that's got -- something mean, we to to of a this. of capital. pace because of the And I tuck-in properties of were we're to But right continuing or already of at farm of our value that we given the XX portfolio. long-term think X months own, I example, managers than a are cost appropriate are And I ago. we'll slower

James Gilligan

kind Paul echoing think I just of on, maintaining said and follow Luca what to about discipline. just And

deals we haven't outlook, closed. we Our include don't

would So change things, a as little bit. numbers we close these

Dave Rodgers

to perspective pretty a then the go And you I’ve Economics maybe, business. don’t long last, made typically you this of term, But in why own case near values high-level Paul, discussed Helpful. farmland good. down farmland want today great a from often. and you for term, are today

decelerating year, as multiple capital pretty an time a it and out rate as continue buy anything I to as price minute. accelerator as are REIT buy with the cost Why the put rents makes you see look possibly maybe accretive around of which stock a for just that’s now much a land, now not the is say, I costs next to you not to on all much Why even debt right pace, very And and [ph] is exceptional much equity-only sensitive. it, can. on understand of the You interest I -- anticipate improve basis. rising take at buy foot today also your would time but on a as we XX to can? you

of going say there’s we’re you but aside it up, and some And maybe no more just risk so kind be to sets comments when that of everything is earlier. going your cautious

chance you seem it a that to the does the to So business use for grow here I your there’s it wanted great the opportunity grow you said to platform, reasons equity all address to give because like today.

Paul Pittman

I'll that. shareholder stock that do are could We creation you whether I I'm growth. can sure think been still awarded me this to I say discount, years Yes. We've and don't thing. what sort I still, trading you, for worth. the been would I But of today, we I'm unfettered be that frankly, now for haven't as value rewarded tell a fourth I think at shareholder. we've is the -- if the aggressive would modest a is we third don't know I or No, believe large, I me we for that rewarded, mean that. public promise mean growth think and really largest promise X been large a you

we that them. If of really owned current to have, dilute group shareholders you is of by properties our set the assets we don't all liquidated want

put months. in or amount reason. is deal price some an acquisition last But very we this in the acquisition of value. great underlying just challenges But should a in stock wrong, the was scared liquidation surprise, were it. release for a underlying of our excess think of -- because kind really accelerator. public be related do markets trade I out really not aggressive REITs hard value and to separated asset this which growing it’s And the or anything REIT of in took we right? a on of be hard We’ll price it’s it’s the the cycle. a not None one put place got being issuing which general We our earnings that We’re going pool that may at, of industry economy just of dip our we the from specific eye It’s attention add-on it’s you for company. equity just that -- there cheap because company. is the is modest a multiple foot think, on to the in stock -- point. assets makes reality do said, getting we long-term very on as the it’s the in trading a we’re if -- proves value of X.X the particular a to of and to do big we’ve public But don’t at, as that see But of being our rest pay fundamental means the our terms of despite the a here of the shareholders

sort are come any to of balanced that’s of questions? this So we further approach. where and we Operator, why kind

Operator

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

Craig Kucera

are you may expecting any crop Hurricane missed Ian? to I this have but losses related

Paul Pittman

No, we really a in don't. We've only of Florida. got handful farms

we balance, affected little by to looking meaningful, that for our but I'm their bit our team great event. here, farms because and on hit a the of happen didn't farms It hard. no -- to particularly high crops were winds probably no management but get isn't specifically at meaningful All the of just, related measurable geography, rain damage --

Craig Kucera

in the class spoken But about farmland that's more the meaningful lid on rate changed the the And Or move in given pretty curious, has past cap all as rates and still leverage how that fourth are remaining Okay, here be the asset in an early I'd expansion. cap sticky? lack rates? Paul, third in at just and here the great. you've interest in kept of quarter,

Paul Pittman

Cap rates are very sticky.

side So interest flattening of things haven’t farmland lot one of leverage acquisition farmland. these sort increased there’s just of rates reason the the immediate which led to an not appreciation of a is in of that

low right always States. That’s an of farmland in the overall. statistic amount pool of the hovering against incredibly United total I just borrowing is the leverage XX% think around

they as farm. a are farmer farmland being they these and of embedded equity. If own So new or they’re a bought that taking embedded with all, equity with at using in already cash farms purchase many then to borrow the

So there’s already of the their other debt really on it’s kind the for appreciation from on nominally paid farm farms. but

accustomed in the isn’t interest the might immediate be underlying change to you quite of asset So due valuation rates other higher it to in that just classes. asset

James Gilligan

as level to at in levered very And due on might farmland saying, what distressed not also level rates going We're that have the we're expect begin up to seeing to owners Paul that said, that darn to is of other classes. selling seeing pretty because, is which are not a rising in leverage Paul with. you levels of and asset high suddenly add low

Paul Pittman

Yes.

Craig Kucera

be is positive you it return a most a one Or now debt think again, more acquisitions, know X,” I Got it looking probably you you appreciation? where for to it. I And when your upside guess would floating perspective, below from of or thought related vehicle actually you spread have so small be it a be this the X% total is capacity. cost on day know me. number -- just need the more a the “Hey, earlier around more to of to right acquisitions in buy have at we it I presumably rate which to the mentioned and year, would you as, cap of debt of about you would do be where look of looking are much you at that

Paul Pittman

you frankly, your debt, carry think in class, thinking money an out driven being It's are we That the when sector to thought high you've ignore a you're We total thinks completely said, it's acquisition. vehicle. about That's how the can't as It's rates always asset absolutely about the interest about it. smart it. return the So I've about asset class. got how right?

we But practical do of terms? truly bump the appreciation to to we make our Like meet, so of -- hogging those less case. that it, are the do too you current more total a many we’re ones into But cost just an focused, will yield flip of go X% is, We'll terms return. speak, yes, long-term on in when mean to of believe and that the can't lower And total regard we’ll you because there time. X% without at return no this got acquisition those of what the with about yield. borrowing of current But or we ends opportunities, here. do that occasionally P&L. side said in today do not It’s themselves does is sorts So point yield. carry in those your acquisition those and always

Operator

queue. There no questions [Operator currently are Instructions]. further in

Paul Pittman

more, I don’t any unless think came somebody in. there’s operator,

Operator

queue. there No, are in no further questions

Paul Pittman

updating forward quarters. for our Great. the this company us appreciate to Well, and in we much. you call. results very on our activities you thank and in coming continued all you joining your interest for Thank We look

Operator

call. today's Farmland your Inc. Thank concludes Partners quarter for third XXXX participation. earnings you This

now may lines. disconnect your You

Farmland Partners (FPI) 25 Oct 222022 Q3 Earnings call transcript