Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Farmland Partners, Inc.

Second Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. there a remarks, session. speakers' the will question-and-answer be After [Operator Instructions]. Thank you. and President CEO. Fabbri, Luca

You conference. may your begin

Luca Fabbri

Rob. morning, Webcast. you, first Partners. Quarter a Thank Good quarter half Earnings Partners to busy here Conference Second of Farmland the Call for frankly, and and It year been everyone, has busy and Farmland welcome

more we especially I of to are I for we Garrison, for and appreciate taking team been the to now explain to planning opportunity I turn call a the Christine call. what Counsel, some us bit give join customary your myself more our what for to do. General the So over -- preliminary the And color time remarks. little and doing this bit a have will welcome rest and about little the to Christine?

Christine Garrison

been and Luca, after supplemental on closed The and press thank announcing the Relations Presentations. website distributed under call. has everyone to you quarter The the market was release Thanks, of sub-header section earnings posted yesterday. Events the our second Investor our to package

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

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

measures X-K and well announcing are second Form GAAP included FFO, in EBITDAre is most current July farmlandpartners.com, available the net an earnings, quarter on XX, furnished including company's financial report as as of adjusted exhibit on website, our dated reconciliations discuss XXXX. our press to is which the release measures and these FFO, also to Definitions will We non-GAAP income, measures certain adjusted as EBITDAre. non-GAAP comparable operating

advise generally cautioned subject of cause to certain and our and risks are risks beyond uncertainties, the Paul control. are differ furnished discussed results yesterday actual in would the Pittman. documents these now and from can Listeners materially SEC. that These we distributed with in and statements press review filed and our release listeners have are Paul? we risk our to our the which expectations to turn like factors current many Chairman, Executive to or predict I to to call difficult uncertainties to

Paul Pittman

was, very long-term a quarter This Christine. for stock. you, a the our value-oriented shareholder good in frankly and Thank good half very

through our but under significantly have increased loads. asset stock the We not that come may beginning eventually. underlying all will those value perceive of strong this, sales market us to debt reduction a of gradual of value shares the The buybacks, and very

and know, you for are against that I'm of discounted taking shareholder large all a As high actions values fundamentally are myself, we stock. Farmland large, a arbitraging deeply very

to We will do it long shareholders rewarded. as as continue get takes that our to

-- economy pretty the call. stock last performed farm strong. since well quite The remains The our has

Farmland Asset values to continue for rise.

the that of pretty on Please are not farms. out our we portfolio, strong trim As recognize we very we our things gradually farms. selling getting best are gains

portfolio, for in those the water are selling that are even farms have volatility are of we we selling. in stronger or or of we not appreciation We some The challenges are they are are than portfolio. where selling challenges market our outliers parts concerned the we reason

to volatility want of management in earnings We that simplify risk business. concentrate ways water portfolio and this to of lessen the gradually the lessen

bought you created As from approximately about appreciation on the need and all is We really that creation yield. and XX-plus-year I've went would from. an how be I career calculations and value where -- I in have one-third is IRR sold comes said roughly the value think values is from over the that created last the Farmland did call, value class, current and of Farmland two-thirds had, to investment assets

Appreciation is current is yield two-thirds, one-third.

in REIT sort partly the of -- is to wrong because stock is think market whatever on For maybe for is quarterly down the smart a buying thing be focused we're focused I incredibly public scorecard investor. it That is AFFO, a to today X%. on. reason, opportunity The is the on X%

debt. proceeds To our we're at such frankly, of going because discount. to stock have stock weighted a pay to buy making sales are the overweighted, date, the think stock The deep of repurchases back and is we we the down

want higher. don't levels much these to climb We debt

less for So do we mean not but from any shift at reduction to sort reduction to will we've of we buybacks, -- more debt debt and well, oriented as been we're debt much going be a what's shifting Doesn't buybacks. down along so will paid but to we least will more be the a or shifting quarter way posture. to

we stock time, and levels watch back. gradually over may down, may debt the we -- change As come price shift we our

of of like That debt. back We Obviously, transforms now. that did debt buy our much about that we a point to -- X% I a instrument instrument. just years a or dividend-bearing instrument a is instrument couple an hybrid is a instrument it B, from coupon. some preferred preferred in like out, but interest-bearing a It's expires want bought is many ways

But gradually and faced from paid to away off make we show strong, to The prices, debt and pay buyback the additional down up stock continue get at at AFFO, we markets we a piece payment. So that that onetime strong locations buy grab in a with very want with. the that we and farms balance, preferred. in the occasionally with of so having find are the savings farms sell is we aren't love that ourselves just don't big doesn't we the in whittle position will happy we

probably positive business the call overemphasize increase a as asset managing that them that point. and no core come recover will large and Rates appreciation The AFFO shockingly when is will eventually as that to certainly of getting that farms, -- -- on will exactly our one when But interest that rates -- but class happens. one else. the possible. strongly, and the that ultimately will earnings knows happen. I can in occurs we No not due to high-quality really me happens, down the harvesting don't that as efficiently and massive buying yield current want inflation everything have

for to With questions will turn stop, it over be of Luca. that, available I'll and course,

Luca Fabbri

kind we of that our Thank first vis-a-vis a is outline. little to been the current doing everybody bit through in would you, half of the go Paul. pillars like strategy detail I the year what the have in walk more of

asset about million asset the half, sales we disposition million closed sold contract, We under million an very On about additional pending about side, the in $XX $XX beginning assets. asset had QX of in closing. on $X of so sales in We first the far. in

million beginning We to of $XX to million auction August. going have about Colorado in at $XX assets the here in

an $XX transactions in very have about of negotiation. a advanced We million additional

this of is identified total $XXX so transactions a transactions So about or far. million in closed total

should in to are more expect more year. later the and transactions, probably We asset come sales working, you

Paul and has So the here, attention focus everybody really I to the asset in stop as appreciation power mentioned, class. of want on the of

the solidified just been in pending really closed I'm have terms stick much ones of or to very to that of closing. really going are having And kind --

the year, of first recognized On XX% close the half million $XX net the over gains about book in we value. of

$XX about contract, the expecting book million over For are under we value. gains XX%

a be very to appreciation content center management So demonstrates investing a potential. component There core anybody investing this is strategy. has is asset our very, truly certainly class in strong that in of the this and asset for portfolio class

way, are as also in will broader a still in context, we the optimization, Paul engaged if buying are some By you that mentioned, we and portfolio farms.

course, been we as strategy as in our in of this at given close are, million. about acquisition but an time, point QX in $X We in on have for the acquisitive we did Oklahoma overall not past,

that We to. and portfolio opportunities have we alluded that for another continue fit transaction derisk therefore, the way close year streamline that Paul later pending evaluating of farm to another kind our and and here this

of and stock pay is reduction Now -- we of kind down The other or in are this use mostly we items. on proceeds, two earlier as repurchases. announced the really focusing front-loaded of of leverage debt. One one repurchases stock of terms we year, is

bought we back million So about $XX in stock.

very, we the to for that the all material that we've in building creating pursuing. intrinsic have diluted an In to true believe we and of terms shares, strategy the value value the a are been are therefore, outstanding very and to doing of of per in as mind, clear the price is, That average year. XX% at beginning of shares $XX.XX that share. of about discount shares, is decided the we our did shareholders speak of And the what and

front-loaded said, therefore, as -- went balance focused these year we we overwhelmingly On will repurchases up stock debt actually of as proceeds use side, balance the of end be the later debt the said, of proceeds I and of as QX. the this But the in in debt kind slightly -- on reduction.

been have value by asset we gains. sum, demonstrating in So sales

by We creating that value are stock repercussions. repurchases some has

course, of assets. are, as sell We some we

with kind incurred temporarily and I revenue just debt, but of costs some higher but soon. that have losing We are reverse the of We will those associated we explained, some had farms. as [indiscernible]

else on Also than the side. slightly experienced expecting. like also We business other rates everybody higher interest we one were

some The in that of a they're the farms. sideways that the several yet to strategic much of appreciation. down While we're couple the torrid result slowing -- asset the overall buyers pretty more years strong years buyers and cash of are cash bit. catching and seeing use last in having country, climbing That's to parts they wanted a of marketplace, in buy frankly, them the in farmers, much increases is marketplace the use up valuations on very volume pretty one main actually of they transaction despite use were

scarcity high assets paucity And of interest coming to cost hitting of a bit the with little they now being are a market. buyers are, as Also, of bit as of transactions little is there of pause a therefore,

the little a slowed business in reviewed down -- down a in business the little bit. So projections also a for auction has brokerage transaction as we our result that have slowdown volumes, bit, of of and the and volume year our

he I little year is for that our trying with full-year particular given a performance. James of through also done. for the overview more also the try of to to turn we have dispositions is to his all portfolio going the of is will for -- in expectations offer that terms our XXXX the view James? he that the him, is forma will over and now actually pro company's that financial call bit in details means to walk James changing, what

James Gilligan

XX, June XXXX, my I'm summary number of of and remarks. of cover Luca. comparison going and you, will package and capital months for to structure a review a rates, revenue the Thank supplemental I referring including year-to-date today, updated three be ended in interest guidance items XXXX. six to of

As the a our the and the available sub-header Relations in Investor section supplemental website Presentations. reminder, under is Events of

press XX through numbers Page number X financial tables XX contain information. X through related Page the release contain supplemental and and the

a Page First, X. few I'll that financial appear number on metrics share

For an for 'XX, $X.X the $X.X three ended XXXX, income to months million net was million million. XX, increase compared of June $X

'XX, income stockholders $X.XX per positive 'XX, and compared to average was increase $X.XX decrease weighted million million million. $X.X decrease was for $X.X to Net share share to an per 'XX, AFFO was compared available for $X.XX. for common $X.XX negative to AFFO negative of positive of of a $X.X a compared $X.XX. $X.XX

$X.XX. to six $X.X Net stockholders the available an a $X.XX. ended million to was of income compared increase million 'XX, common million was for weighted for for of $X.X of of 'XX, AFFO $X.XX June $X.X XX, $X.X to per a $X.X 'XX, share AFFO compared $X.XX average to compared For was million. 'XX, increase XXXX, for income million. compared an share to was $X.X decrease per $X.XX million net $X.XX months decrease

of tax higher assets in nonrecurring X. some of depletion of depreciable to second placed Next, by appeared items tenant operating the first in due expenses operating we'll expenses quarter the amortization increased property minute. that of in and number onetime reimbursed Page in service. adjustments occurred on and things. which were the look of by including a that a higher $XXX,XXX XXXX and more was made approximately we'll Depreciation, quarter in was approximately the Higher XXXX quarter couple tenant in in the shown review property Property caused the reimbursements, $XXX,XXX and other at taxes, a

was tenant XXXX with partially nonrecurring XXXX. offset farm. the the quarter the final addition, In the on due occurred cost sharing expense to utility $XXX,XXX in reconciliation second expenses of of California of quarter by the That in the approximately of second lower

significantly and in the due the primarily ago. expenses to expenses to lower sale in second value rates and spend. to describe lower up lower greater compensation. And Legal and to Interest quarter XXXX, net due Farmland due balance increased XXXX appreciation as are accounting litigation lower stock-based expense dispositions compared were to General relative book administrative debt XXXX Luca compared a is of XXXX. higher the in values to minute demonstrating

diluted skip shares. of I number couple XX.X to our at Total ahead Page last Next, as XX count XX a comments debt XXXX share July of $XXX.X make at structure. about XX, will capital million million. Fully June of Friday, stood was

at million undrawn quarter. end table on bottom look the you capacity credit lines the towards at the of If excess we page, second the $XXX had of in the the of of

reset and that's rate engage the to year, MetLife with started this more number one we have MetLife XX, loan lender. We

XXXX, three million. loan year XX totaling and That's resets we rate numbers MetLife $XX have X, approximately Next XX.

XX, Page to won't but in the previous blocks our page free if statement that through have any provides me questions. quarters, we in sold. contact building as you go overview goods an to detail feel cost income that of I of revenue Turning have and and please generate

building The points the A columns payments, commented the shows page, between first exceeded blocks XXXX of are: the XXXX. on highlight all at really next bottom periods. few differences describe two these the four fixed Page quarters that's to for XXXX, shown and XX the we the to first XX, described

than this down in leases a between was by the telescope rent XXXX. increased periods renewed properties bit. acquire lower items we year. To that far little as came farm in remaining Fixed in The the XXXX disposition offset so and

as Solar increased Illinois phase large project year. of in late a construction the commenced XXXX last in State its

reimbursement, property four agricultural mentioned and in tax In $XXX,XXX reimbursements equipment earlier. the first dealerships as XXXX, Ohio for in and of about that the the tenant required of land onetime QX Tenant John brain. Deere increased quarter under assessment related buildings

classifies The treatment accounting those as transactions. financing acquisitions

in on due as compared the crops So to Variable down to the Citrus, and income payments interest on you're in if balance in income in increase interest loans row due an down grapes XXXX and accounts to to QX second as lower were to a as row quarter year sheet income. XXXX. in This nuts QX statement quarter is crops. and in quarter XXXX. row and the really the tree into one second The This performance largely of fell is with that expected due to is crops last difference slip revenue exception. third timing going into the

crop the XXXX operations auction decreased due and to combination brokerage insurance described crop largely citrus It to compared Luca was sold. Other to and Direct down lower goods due items is of sales, earlier. cost enrollments. as of activity

for outlook our on for and the We brokerage have shown year, fees XX. decreased Page auction as

for previous XXXX, page If on to the you same described outlook blocks building updated the the we flip using Page pages. XX, have the

bottom. towards the listed are Assumptions

contemplates estimate, this what actual disposed transactions. identified and million This an calling we're may number that reminder, in we differ. $XXX is As a results of approximately

revenue the will with format change and fixed new signed. On leases acquisitions side, dispositions,

operations. due have to and goods income, tenant and wind changes. plus pay Solar, sales, to farms of for payments insurance small down sold farms variable Citrus less direct reimbursement fees crop recreation, outlook direct interest is rent, as walnut very increased while cost management operations, and crop under due and citrus Variable improved all that

due the Other the to and items brokerage decreased auction for outlook of year. balance lower revenue

are the first the and of items expense operating onetime we've from in covered, second the the due property quarter. expense first tax couple half the On XXXX to expense a nonrecurring quarter increasing in side, the expenses property that of

X% first the range. in Legal of the for spend spend MetLife XXXX. also We're accounting to rates. decreased last the lower Interest of half half prices and of decreases #XX, in debt of administrative XXXX. estimating projected rate reset in interest balances first X.X% remaining higher and XXXX, and the expense lower with updated General increases that's

This While the provided credit. decreased painful, of access from undrawn $X.XX shares back May. in in the of $XXX million to in to liquidity $X.XX projections Weighted per million of over in share, share range expense the we increase buybacks. is decrease $X.X interest resulted maintain AFFO or average the million form $X.X to lines in a

be provide rents, removing projection for would At what $X pro more we announces of Fixed renewals, on of by next XX, looked variable various would That additional farm the et year. lower rent not the analysis, partial forma will XXXX Page note, July require than a like data. transactions, information including bottom farm million lease approximately transactions cetera. guidance. Please have of year this is

than will would July lower reimbursements recreation than $XXX,XXX be lower wind, approximately guidance. tenant guidance. July $XXX,XXX approximately Solar, be The

to stand Net this we debt will million. where $XXX helps X.X given million would than shares describe Hopefully, be diluted shares $XXX what approximately lower guidance. approximately July be The million fully we noted.

keep this wraps This certainly you session. comments will you We year participating. begin Operator, Q&A progresses. morning. now can you the all updated as for Thank up the my for

Operator

your from And the [Operator first Stevenson question from of comes Rob Instructions] line Janney.

Your line open. is

Robert Stevenson

Good morning, guys.

you So the in but Southeast, High in acres sales West almost thousand expected markets? sold each the this Coast guys same or expecting to Corn to 'XX Or of in a are acres the remainder and Delta X,XXX West Belt Plains. going be the you South nothing in the Plains of couple High some see quarter, those sales? over Coast The and are and of

Paul Pittman

we very the in which much are in are auctions except land auctions all The sold High auctions did were And is the starting. the but So to of Nebraska, it's are sales style the oriented Illinois Nebraska, and part -- alluded Iowa in Nebraska release all as Nebraska has that water in we put earnings sales eastern, is in Corn Paul. the Midwest Plains Nebraska to we is Belt, in then coming are unusual. western one-third area. those that more Corn challenged. west, got What that far actually And that the that are alluded this you Belt say in did, of challenged state. much the move we soon, water

As are don't far quality some sales for our of reason, the think as the the perspective we that, as are as and farms whatever Delta from in certainly high we pruning others. Southeast, the

into of So that refuse. can't the made sold a couple in acreage into we which an bucket, in fall just the us Delta, some but bucket of offer Southeast of just them fall somebody the

managers our comps that. kind -- don't relatively publish up. farm it, this the value being we frequently Rob, to from don't farm use it's and everything else. bottoms portfolio managers, publish they but because of We our want own by done We

we worth. what's think obviously, appreciation over tracking in growth of And is internally internal of sort coming we sort the have with so And list of a something projection a particular. what mental that and on of property value years the then

someone or puts offer. gives so we If up appreciation to shows their five years for what and far years an "think that is in of us it's next it above up without the three offer, wait and having worth,"

that and buying We recycle our always capital will back deal the almost circumstance, farms. take additional in or into buying stock -- this

any wants economic something more are selling. really we're emotionally tied to we somebody do, perspective farm If than not from we an

gave, answers, is Plans, of the the country. be there come the probably year, the High of -- part that caveats Hope things the may should happen But on the the frankly, eastern in though, some less West in still part what the and with I more in Rob. So the country. of Coast eastern in sales, in the rest

Robert Stevenson

that. are those Are talked ones guess variable sold, today, and those the of get cetera. reducing in some assets any volatility are like the I ones? of more guys some And in in to I that a are the is revenue what it's And you wait to revenue subside now, market of stuff having trying right that? of almonds, tree with have to Yes. West or to past bit stuff really some that. variable, stuff and to more going are demand issues the stable streams you prices the the crops, monetize Coast the the guess the for like the strawberries Is at be I'm as supply that the monetizing et streams, about and

Paul Pittman

bit insightful little a of a It's a It's question. a question and bag. good very mixed

so volatility comes in in XX% is the on percentage West entirely roughly almost the portfolio, cash -- usually coming fixed February other -- crops the portfolio occasional in market specialty from. Coast, It's business, March, volatility that's the a comes mean here's overall rent, row incredibly of XX% crops first, but So brokerage and the The or it's from incredibly business. debt specialty our mostly the the bad in MWA timing predictable. It's our from the crops, November. predictable. where than I

how sort is portion in And in kind matched can low you of crop budget the of the with in up the see that James of the actuals company's portfolio.

West water volatility the substantially on want our up year, not that have is I lighten on the Coast, again. exited our mean doesn't Coast. taken up but It yes, So also we be there out there. And perspective mean West we they it's but the completely, will is a but exposure. lighten exposure risk the water to risk this

there. So said, from more as you will I sales, see come

-- the Illinois land raises of and the are state it economic corn. kind unlike the classes the other Related same The where all you state, asked. wheat, some though, soybeans, question is the livestock. Farmland so fundamentally has But It It raises it across market it's in different. to raises different values that, it's was -- world.

food miles two vastly you five the California, different no of to. terms are connected they're and When in different to vastly value in apart economy go acres, acres

land your having trees. value walnuts, sense, permanent a the that a economic time general is than it's two say XX% if crop, then of California, quality So now tough probably more what to right crop things. in those farm which you're start on in you a but And existing go you is water And land and frankly, it. water, in, even is in important with you're trapped and in of because

to you just farm economy, can't it's sell I'm going so say, to -- bad. the hey, So walnut not

easy the hand, the On was sell. it's economy other strong, if walnut to

to issues. those migrate through have more we farms. complicated So They're obviously

diligence So always of is lead quite of tens millions be and then transactions there individual the sales due size And finally, high, dollars. longer almost of processes times. can

somewhat institutional it's of farmer So more than individual market. market an an is it

your slows just it So process. down

Robert Stevenson

there anything Is James, normal helpful, fourth different the Paul. fourth quarter? $X.XX, appreciate I in That's AFFO. weighting the share 'XX? quarter, this split year $X.XX. XX% call big than intact third it. It's so is your half coming of to usually, sort your fourth the quarter per $X.XX that year-to-date, Okay. in AFFO would is Or is to more be quarter is the Typically, this XX% second to quarter. suggest third guidance here a percentage on of likely quarter it,

James Gilligan

Yes.

Rob, shape pretty years. the the past curve of similar would kind I be of the think, in

really in bulk is So fourth the the quarter. coming

So think consistent. I yes, that would pretty be

Robert Stevenson

possibly you but first guys need without bit to dividend? talked going All it the press of 'XX quarter foregone in using level a right. common are little a -- conclusion special sell the in Or and in million it's the special you about what gains a that having me, guys pay you if pay to dividend to all a 'XX can release, dividend? And $XXX James, the one you then last about absorb what capital for dividend

James Gilligan

ourselves, a only the level. Yes, at our tax that a about of Board it's lot with Rob, frankly, certainly not And but conversation advisers. topic lot internally, a also we're doing it's talking analysis a a

what not we position the think additional in potential I point, this not make declare a have we're at just -- magnitude. of So to sort distribution, to an

more we'll I to it's So possibility. think but a come certainly you back have when info, later we

Paul Pittman

want caution, put think to probable is distribute timing the the and a question shareholders. in would a tax, and pay that based right didn't sales, certainly $XXX but obviously amount The needs powerful don't we dividend, don't rather your unknown but James. probability it's done, I that to we'd don't the add use Rob, Let have knows sales. release, at I to that, because was the is were had today. press to it we otherwise. I of to different sort. or I not this have make be believe, to the if of are that -- word gains that complete just point, want on question. something whether we've there to if going James compelling we exact two pretty buildings probably bit But in highly because mathematics the we're appreciate me and who special some your special those little million We relatively the

Robert Stevenson

And just Paul, litigation? fund that quo Okay. last hedge on guess of update me, the for this any I is sort then. then one status Or at point?

Paul Pittman

Yes. to one they complex hit No, a weren't wiggle the a for then short next of that involvement. this and want And and the a they quickly. a got lot after read, occasionally view our case, to has -- the trying if under they We've documentation always this judges, it these legal can the court deeper always and minute, out their divorce untrue. says call. commercial Counsel the is the because you But example, a That up who very state found minute day. talk do judge the case a in And guys General party I'll prove our show e-mails involved. understand you they of traffic third litigation of have was the didn't of case that a the that really in answer is caused been point trying in this theory Sabrepoint,

unanimous That's Texas. a come totally races. ago got unanimous judges back decision, waste of in to had guilty, our what not the favor, favorable in it they're a we are that trying process That's untrue. they're -- know of they're Texas change was Federal Sabrepoint, and mind. or opinion. their They result the course, got to they saying, that. so get so will, going appealing We group is a they they it will the we a more view, because So they're decision time hey, run continue in can't year dismissed in decision appeal, to and appealed to doing. fail our and that Court, of so in But in Colorado to

Good and don't on we're you're again, it, of and we're view. because will spend point that's rule, much you But waiting That's judge is on money my just news there top good. stay when sitting we much money the to on on there. not it, spending

Robert Stevenson

time the Thank you. That's helpful. Appreciate guys.

Paul Pittman

Thanks.

Operator

And question comes Securities. from B. your Craig line from the Kucera of next Riley

open. Your line is

Craig Kucera

questions. had Yes, morning good of guys. hey, I couple a

-- crop some would like to of downward how your core renewal that kind expectations? quarter. of what discussions? Is going and First, prices, your row they talk the since the impacting about I are some And of the your first are lease in volatility

Paul Pittman

Sure. do are in two lease when of really important terms you to there the that in renewals, negotiation. The renewals probably -- lease -- factors go

The negotiation, the you the general renegotiating. sense at economy what farm the first time is and of vintage are a of lease

this strong darn last what's And crop year time, get has in week but strong. on so kind the it Ukraine may as with was prices, not row now, the two. economy as farm in And pretty of of in it at terms strong, and quite is here point pretty or going but a right in ago, stronger

place economy. good But in the in pretty we're a farm

vintage leases of the of renegotiating. we're terms In

That in XXXX that We then most had negotiated transitions. big cases, XXXX. was pretty had economy the renegotiating was farm where some of era that the That leases back lease time the fall are or didn't. some of frame and an now bumps a in the was 'XX in

the still year leases were kind earlier and the the leases in so pretty weak, negotiated strong. of And negotiated were late

like of XXXX, pretty kind very bumps, you're of this wasn't in year. we'll renegotiating one year, the likely we ones the strong get XX% So if bracket to got that last big back

happen negotiated in XXXX one, cycle. the you renegotiating late to that be If was

that's XX% like just off You more lease coming a may because because higher see -- to X% you're up, base. a

now, kind an So take be facing. I I in as hard next that's year, it's average what rents we're our early think process, guess pretty to will tell. increase the to climb. don't we're had so educated quite I of continue high if right mean but as to will

jumpers we had in quite as I last as will terms think percentage year. be not strong, it good of but

Craig Kucera

the that. just XX basis us It helpful. from you're increase you yesterday, I've on discussions at? Or $XX we walk interest Thanks to XX rate related I had another would May XXX on maybe your be like sort point helpful. the be getting a your James, XX. of looking XX through guidance, Kind reset looking color there basis the outstanding. points a million That's assumptions to how looks for color. know that's you can about on of July. Are those question might the to any spreads to got

James Gilligan

Sure.

look rate we they're MetLife the work we the how language Note as when these off But is in put a at works in to X. it of resets resets, the generally, So how spread priced treasuries. sort general, the actually queue to in

year, spreads, And out. earlier hoped they've in had And widened while be to bit movement so a we've we the in treasuries. have the may tighter, little

I XXX side and think So treasuries over, spread, and to of wanted now our range moved. of to closer XXX been we're, to if XXX you historically, range it's have the a kind the put around,

typically, little three some to pricing this the instrument, lender. the So And ability flex the a longer. discussion we In table out year. we're that's have particular for off on with

of maybe much earlier have in as we were It actual years Some year -- didn't the loan. ones was maturing they three term just four the in the or out.

yield that does -- further out curve the sense? possibility of really sort wasn't make a going So

Craig Kucera

paying but you. direct farms of Thank variable payment mostly were think rent, And down, by an another follow-up helpful. that's your expectations your that comprised I and some on which the be guidance. are operations there improvement citrus variable Is I Yes, of are just up spending know those? maybe some you helpful color did to under those there. if or a there direct operation a Just have Or sell tree third-party a that understand farms would performance citrus is related? disconnect in nuts.

James Gilligan

it basket little mean Yes. both realize a but I because are I counted in of citrus, they're they farms. confusing, different be the can

a better we've doing little bit of So farms operations basket are estimated. the citrus initially a bit than we that are frankly direct in doing paying a sort are farms variable of got worse. little set that the And are of rent

they're on sometimes within farm. yes, they products lot different of under the a And do of grow So broadly the even products. different all but citrus, farms, types

a of question. guess, leaving divergence, is the and no oranges. so on seeing of and really the on I bad pun of the little sort bit a we're farms So answer variable just -- farms. the bit a nothing portfolio But that little -- operations worse bit to a better part use direct oranges It's to against here,

Craig Kucera

sense. makes I that No, that. appreciate

pretty circle lack which that to just sellers the buyers of was auction in both? Is that. wanted fee sort to at quarter-to-quarter. due of or I meaningful back and to a looking drop Just or expectations, brokerage

Paul Pittman

a farm, It hearing when pick sitting farm, at and around sell to And wait farm is every same party euphoric, suburban let's the mean sales surge gathering, a passed super or happens those really that in me $XX,XXX month is let's of family Then sellers. the market I their sold. in real sky high. one. particularly Chicago a crop his away, What really that in the level world, prices gets table is family the extended but owns family about is is grandmother happens everybody Let prices and start an when economy going, the -- grandma on grandma they're up two. lack well, picture farm out, hey, what prices are

maybe wait will recover prices up. will Ukraine worse Let's get go or two, the a maybe year grain it and or will

because to haven't there's rates needs the some certainly just buying we helped, least And community transitioned this of and have money. borrow the high And so -- interest hesitation. at

it's transitioned number kind So farms. from last XX in that euphoric people selling of what happens to the really dropped plateau, of the the as super and we months

who brokerage one just auctions by us, about country our the Wise. moments sell Wise were I business. farms. to declines just They're I a Murray are on talked Nebraska across The Murray of So not ago, competitors for volume few amount Murray that business in did the thing do mention other major run major the in want a Wise. They

the paid. business financials. we system our the Wise revenue get of beings Murray in the But consolidated fee revenue way have fee the accounting pay take that that human that The out in to works, then we the received, gets division -- because we

So fee but not you great levels it's line. anyway, from Wise as worse but it vehicle. it should, the because Murray it even Look, business Murray that the the FPI's the makes take it for done makes out came looks

Craig Kucera

that makes sense. No,

Paul Pittman

[Indiscernible]. public don't the know I am think in I big to the it's exact mean consolidated numbers, but out. domain, pretty don't a and get nut I I

Craig Kucera

Thank you.

Operator

from line next [ph] the Alex from of Baird. question And your comes Fagan

open. is line Your

Unidentified Analyst

my you Hi, taking thank for question.

the reasons, like. I debt in the backloaded, figure and will front-loaded the mentioned modeling that that repayment on that what repayments. heard timing The first of debt to is trying will be be of you for buybacks were remarks prepared kind out schedule the just

Paul Pittman

been under of advanced million that closings we've from the the we've really to debt. with contract down to of will The that been are today go $XXX sales remainder So either kind proceeds negotiations. XXX referring or closings largely pay of that of those closed,

to So the pay down debt. sold closing to scheduled are are go be going know to scheduled, the then the things to be closings of we going

mind -- to is need cash we you fungible. in just keep buy thing an additional the But might is

for and and trading it now, quite repurchases at $XXX what's it, was those average not my additional a higher at worked. farm. we we that than money of million looking that And stock but has XX.XX%, mean, dedicated I now, screen pretty been back bit higher But it's right bought spent. So stock we're did I'm buy an to it asset for price that, available sales than might we and already saying now. and the from an coming taking

And so that of new we a did reduction then proceeds. on first buyback and million second $XXX the stock net

Unidentified Analyst

actually that. everybody color selling you then more to much to. on How for else? of farmers sales, go helpful. to assets you provide the going That's to some are And versus asset Thank the can whom you're

Paul Pittman

it's We've bag. are They're competitors. I institutional buyers mixed Well, their that had obviously own transactions a digging major confidentiality. couple of mean are

they're remainder who's quite competitive of farm won't buying And investors a the say So families, and the institutional farmers then have the who us those I of their worth net local of assets. the of names, have to big few been but bought group. ultra-high

control institutional biggest to by first and probably want reflective roughly So of market farmers. go often to chance cultural may ones of if tenant if and -- in that wherewithal asset farms we modest often it. the his that own backer we individual how are transactions we're as a the or the to you themselves. the financial has But matter, Alex, afford financial believe find the tenant so are keep of the it's a buying a more offer the kind we, even can And can't really he of works size

than some going sell to of We want kind stuff, the other inbound we that say, then to we're And hey, doesn't the on it waiting so to -- for for properties as calls. or But that. on we're inbound it. able start kind with to putting don't of known just it. wherewithal seeing to and always And We're not buy sell we're other made willing wait call. we actually decision not if We'll have we're that's it farm. auctioning, for the to he's move really people we farmer a buying

Unidentified Analyst

for me. you for That's Thank Okay. that. it

Operator

call over this there now will I closing Luca at are to remarks. Mr. final some time. for And turn no further back questions Fabbri the

Luca Fabbri

Thank forward a listening participating day. you, We look and you, quarters. company for to on your you to in and in in Rob, updating thank call. results Have this everybody and coming our and appreciate the interest our great activities

Operator

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

disconnect. may now You

Farmland Partners (FPI) 27 Jul 232023 Q2 Earnings call transcript