Q2 2024 Farmland Partners Inc Earnings Call Transcript
Key Points
- Farmland Partners Inc (FPI) reported a strong Q2 2024, with operating revenues down only 1.2% despite disposing of 10.4% of its portfolio.
- The company has successfully managed its expenses, with total operating expenses down 7%.
- AFFO (Adjusted Funds From Operations) was positively impacted by lower property taxes, lower G&A expenses, and increased citrus sales.
- Farmland Partners Inc (FPI) has undrawn capacity on its lines of credit of approximately $158 million.
- The company anticipates modest rent increases and does not expect significant changes in bad debt levels, which are currently almost zero.
- Commodity prices for primary row crops like corn, soybeans, and wheat are lower, leading to challenges for farmers' cash flow and balance sheets.
- California assets face challenges due to water risks, political regulations, and increasing labor costs.
- The company experienced a net loss of $2.1 million for the three months ended June 30, 2024.
- G&A expenses increased due to a one-time severance expense of $1.4 million related to the departure of the former CFO.
- Farmland values have hit a plateau, with no significant appreciation expected in the near term.
Thank you for standing by. My name is Greg and I will be your conference operator today. At this time, I would like to welcome everyone to Farmland Partners, Inc. Q2 2024 Earnings Call. [Operator Instructions] Thank you. I would now like to turn the call over to Luca Fabbri, President and CEO. Luca, please go ahead.
Thank you, Greg. Good morning everybody and welcome to our second quarter 2024 earnings conference call and webcast. We appreciate your presence here on this call and taking the time to join us, because we see them as very, very important opportunities to share more informally, our thinking and our strategy in a more interactive format, rather than the usual SEC public filings and press releases.
But first, let me turn the call over to our General Counsel, Christine Garrison for some customary preliminary remarks. Go ahead, Christine.
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