Farmland Partners (FPI) 29 Feb 242023 Q4 Earnings call transcript

Hello. My name is Jeannie, and I will be your conference operator today. I would like to welcome you to the Farmland Partners, Inc. Q4 and Fiscal Year 2023 Earnings Call. [Operator Instructions]. to CEO. call like Fabbri, to now and President would turn over the Luca I

begin conference. may You your

turn Thanks, Jeannie. We Good for a Full taking Year very morning, time these and our welcome Earnings the than over to see Call of to less I calls more interactive public Conference with General important and Garrison, form because and will them join opportunity call Webcast. Counsel, to you formal truly for preliminary we the the now your our to our some XXXX strategy appreciate us in Farmland as thinking remarks. releases. Partners share filings and press Christine and Christine? customary

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

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

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

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

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

you, Christine. Thank

to five comments So I'm the going company or to go points and more detail. into Luca of over to and sort make very sorts before about four of James it turn general I

is think in Land the we slowed of up in context the the across significantly will undervalued So again of first that point yet the But comparing we XXXX. the be regions slow continue values the prior value country, asset portfolio. that growth continued have to And XXXX. to country in to the producing the in needs the of years. be go grain to some underlying rate rate taken ourselves

in farmland go as That history we regions So as in country. rapid probably the 'XX seen ever grain-growing appreciation can't in 'XX, we've in forever. saw the of and values on

common huge to, portfolio. will is into overwhelmingly in of market company we move that is value XXXX. we disconnect the But trading our our flattening sort opinion, my an the or and led as public has stock. of crop oriented So a land row between plateauing of value markets in see us what this private a there the and a is

as to stock. that that a know, a continue As many of I you effort long back amount stock of We're company personally of significant last The gap bought bought as year. likely continues. lot

to moment a specialty crops. for Turning

in particularly have will situation. out the West we second the those and now will are on help believe help the strong We in water of the reasonably year yield We United of this States, strong That year. pretty rainfall crops that California. that in the situation, Coast will markets

Although many those world. the across price of over of to due planting to commodities be continues pressure

to is third ways Turning are I the Despite valued. the as which is asset it underlying the between our what point that's but I make, are to I to about cutting. AFFO. frankly valued we value are relates company, incorrect want we how gap about in REITs cost and price, stock think that our said many and on

drive we to hard do must that. and quite AFFO working So we're higher

going size an coming So of cost we from to costs, that we're effort do, really is effort, stay steps the done take staff our travel compensation. flat the XX% a to on cutting his That's try of aggressive it. drinking into embarked the in have to or is but to and to so higher. going XXXX. reductions, received which am months thing cut These Board selective challenging over continue cost-cutting always XX That we $XXX,XXX XXXX, are is to for the compensation drive last our have Luca and AFFO I year. XXXX going a in cutting required I compensation

increasing shareholder, think an an this of AFFO. like As owner, get I to employee, stock price and not going higher, are that major and a we requires

two those We and look context, million and will projections. spent of XX% XXXX in our Just to legal line XX.X%. $XX.X just a XXXX. in if that back financials. to put in couple in Those G&A for In on a to more to there That's line two approximately and items reduction cost-cutting the add effort come. years, be you items up accounting 'XX

and the in 'XX like to the look sales 'XX. might company that in -- the what now what program Turning of

properties asset it more focus XXXX this others were detail, many, sales do of will the so into difficult very think appreciating to won't the This why of we've asset of properties sales to our exited think not we that rapidly year, is During I get those were we go portfolio are Eastern of address properties, challenges. manage. to water to But and in significant we that much so get and unload had rid Colorado many made rid here.

themes the year. XXXX those will continue in on We

less materially will on There We're around of do than probably by to 'XX tax 'XX, in there were seven year any largely driven and transactions limited XXXXs asset in we this that. rules. top be then sales

So expect this year expect sales last of don't same quantity assets, as but year. the

to continue G&A expenses. property want we We this. our does as do the easier lowers on the the cost It operating to simplify reductions also portfolio make line. that

terms use In those the asset from proceeds the sales. of of

that the we Some be will generally most, markets which regions the the and money like of the are into recycled regions of country. the grain-growing

money for debt some for used and be buybacks. used reduction will money of stock that that Some will of be

don't exactly As increase perspective to think when, are cost, I savings our a at those instead but cycle. know far are we of as the to come cycle of rate eventually. is We a beginning reduction us interest rate going

we buying interest even cost wait, reduction anyway. have stock we Or if we $X to carefully when about from to deeply going an at you're or of the or such that get do comes discounted levels. cash, maybe excess reduction, share take knowing So need $X you very that our of gain sort jolt to just a back the think $X debt near-term

about to our trade-off the mind. we in think have And that's so

think ball crystal When when look you say. point crystal ball, I So that was what a I is and at look a had XXXX, this that you -- final five. would if point,

of help XXXX think years on have yields side That I X specialty and crops, a rainfall of to yield we'll agronomic see crops. is years. those and price due slightly will we in the solved lot on the in than problems recent better had largely has

price recovery, on pricing at think the just I right side, get a in we'll now. On modest what's looking going

rents, what directly side have affect always the underlying fixed of profitability now of but care cash our On about row us, so won't pharma portfolio, the crop tenants. the we we the performance

years, prices see yields, than You're and reasonably strong have you that seen probably recent cycle going to seen over over in grain we've again. but somewhat lower

It to farmland into not and get, couple just of for make appreciation values out as go slow be of They surge come price but we'll will rent It again. see that cycle farmland increases impossible. the And a will We lower slightly then will difficult more big. a years. commodity values. won't of cycle

our overheads will through and we of we AFFO in a the year substantial will this gradual debt lower will share. the and in amount and of our company, our believe we terms see reduction wind variable, continue is to cost, us interest per will flow -- that late of start to at We backs our in hopefully give

And then continue will to mentioned, the as selective of I the final sales. is XXXX make we asset plan, point

go. price some we're With those get we over that for like a to willing further asset, let be I that remarks. to to asset much high make any turn that of not will So Luca assets do or it we that, whenever will very

that the we In further selected value Thank I wanted to And Paul. you, points objectives. discount. sales, the had we embedded back really Paul of reduce stock at articulate already then buy to wanted emphasize will asset portfolio that. raised. was in finally, XXXX, by main and One strategic three demonstrate a we our some to

our fit some significant about a taxable I our sold or significant about qualification special in that that assets, that worth there were that is regions not challenged, portfolio. dividend distribute in because potential blueberries uncertainties asset about long the for were meet the to did potential recovery, Michigan. for we frankly, a we objective, generating focused assets sales actually in had strategic [indiscernible] like, term to long-term for had first gains good crops million order $XXX suppose is were mentioning the to water requirements. they to there where, that's As example, was Those we not a appreciation mostly they were on believe because in extent

the the appreciation, untouched. of portfolio, see in we actually along core Belt effectively So the Virtually which significant portfolio. Midwest. left portfolio. we in part our believe our the is the Corn is embedded that of What most the core And of have the is we that appreciation core

about by same debt, objective At $XX about second reducing million. increased the did that $XX We reduced we we Our liquidity time, was million. and so. by

So of dot finally, repurchased right liquidity. about of we maintain shares average we price to $XX. on access And sources million at an X.X

of the value a you portfolio sharp that our a to discount that's value. share real on basis, However, measure per

kind mentioned, were XXXX that and we've Other general we and we very in rents. done expiry that legal And as about of reduced about by at XX% things leases increase meaningful the administrative is accounting expenses renewed that overhead, XX%. and in Paul

continue forward Paul selective XXXX, sales. Looking we mentioned, asset in some will as

of come will our as variability far there. in further projections whenever We will degree our always you grow continue out that we there up, crops to always strong that And I purchase outside. go reduce good, see put we as remind And opportunities, expenses. the is assets we which supplemental, overhead a we

to So for we Officer, we I Chief nature the Mother assumptions, try the overview be some in to will expected James? With than than -- Gilligan, his there Financial over worse our the better potential company's reasonably returns. but that, of call turn be or for financial capricious. very our James now can always realistic is performance.

I'll Thank of you, Relations Events our review the XXXX, supplemental today, available referring and and a to items comparison year the rates, summary as in going reminder, package my few sub-header to cover be XXXX. I'm including and full guidance interest capital Presentations. year Luca. for Investor revenue website the under on structure to a the of remarks, supplemental of full section is

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

For weighted non-fixed XXXX, assets, gains common was the was revenue will net to to stockholders down increased million ago. on per XX, income year minute was income AFFO up as payment largely a ended lower to of per $XX.X as $X.XX, available share AFFO million average largely elevated XXX% minutes. over expense and we interest $X.XX categories due December at net Luca to a review down mentioned in and $X.X due share of to couple in to disposition full the and

XXXX XXXX tenant. and in a amortization related in placed the Next, the higher operating we'll quarter. on service $XXX,XXX #X. That higher $XXX,XXX higher shown caused in taxes, was property Depreciation, the Page adjustments due property placed to and other including Property first in the of were by by assets was into of year to reimbursed depletion and in more approximately amount depreciable assets review of the service. expenses items approximately some expenses operating onetime tax made and

in nonrecurring reconciliation the In addition, approximately cost a second on $XXX,XXX to the quarter was of of expense final California a farm. sharing due

compensation primarily expenses Legal were XXXX, expenses. and to were lower to for due lower lower spend. XXXX General lower litigation and lower administrative in travel and expenses accounting expenses due

was two quarter's loss. items: relates a transaction resulted Impairment call, that in last in we that $X.X of covered early on in sale XXXX assets closed XXXX there First, as QX of to million a

However, is considered quarter so X/XX, was the sale was loss held and over at for it that end at asset sale considered an carried a X/XX, impairment.

of $X farm due fourth we as one of million Second, quarter do in value. a every portfolio XXXX, in the estimate after California the year, decrease take in a decided to to on we our impairment reviewing

over within on to recognize should million that was additional XXXX. book gain a caused were made XXXX adjustment of XXXX in XXXX. disposition This compared value. benefit expense third XXXX, appreciation estimates. sales we 'XX quarter to Gain of that It in to increased an $X.X net expense higher to period be think up in was was Interest Income values significantly tax an will the we an relative the of prior we by demonstrating that noted adjustments farmland deferred in due rates.

December Next, XXXX, the of as quarter second of I'll end from get approximately approximately net and was That's about at the of Floating end approximately the of the down the Page XX% $XXX.X from third XX debt structure. at end $XXX approximately $XX at from a XX% couple quarter. swap end end XX, stood down approximately second from quarter the of the make million of the our million of total the comments down quarter. a to debt, the debt capital of down XX% rate Total million, the third at of and percent at year. ahead

XX.X shown have resets on capacity $XX XXXX, rate XXXX. end undrawn approximately million totaling million. Fully million the #X, credit on #XX diluted MetLife was loans share We lines shares. the count we the had of table. of of #XX, as on XX, of at February That's three $XXX debt In and

overview an GAAP Please revenue financials our rental income supplemental, from change X XX-Ks in been a provides It generate statement income XX the a and sold. rent, presentation the variable of this goods we and that show Page of Note now are change rental quarter. it XX-K, and statement. reimbursements building very what is that included blocks income Tenant income on cost of the In have our note small wind, we've of XX-Qs. providing farm the in rent. to fixed reimbursements tenant is components and the but recreation, past solar small similar the

comments these show with between are: blocks periods. and points few rent for highlight to we XX, Page building farm to On years XXXX describe the the bottom between A fixed at differences increased the periods. XXXX the

in renewed properties and That As we and by XXXX. in XXXX. acquired in dispositions XXXX XXXX offset was leases

of the rent of fourth that began of ended in under quarter assessment in the its rent project that Tenant causing outsized and recreation when project with quarter 'XX, tenant. an 'XX that a primarily tax through reimbursed a increase the during and increased the is fourth 'XX, onetime a first couple by minutes reimbursement mentioned that by XXXX the quarter of land There was The phase. was of increase was large project operations $XXX,XXX of were wind construction Solar in the ago solar quarter changes property caused third of construction in time. on Illinois. with from state an

to walnuts. cost the items crop and largely 'XX In operations was is of brokerage grapes, were to Almonds. crop decreased insurance lower due comprise the Other in first the XXXX, to was goods up nuts. crops, Citrus combination down items year-over-year, compared relative were and payments of were to row due sales, payments to and to compared down the Direct down activity XXXX, 'XX while Variable categories largely citrus and XXXX. due summary, QX auction sold. quarters of down. and to It fixed other that tree second due

on the out the at for as pages. previous There are format Next assumptions XXXX, we outlook Page XX, using listed the bottom. same show

are included three other first the of acquisitions projections. have these in quarter We No transactions targeted XXXX. for

farm lease the that XXXX revenue the XXXX On full impact QX we're three plus, the reflect of renewals late from acquisitions fixed side, of plus course, year. last dispositions changes year targeting, rent

to recreation to is rent construction XXXX with wind associated the that Solar absence ago. the of decrease mentioned relative was and solar due 'XX the project a minute

of tree reimbursement reimbursements decreased Management in due onetime tax in the Tenant payments the outlook and farms quarter of absence year. sold the that quarter that plus because and last issued first XXXX. farm income sales interest that loans Citrus of nut absence and fourth Along to of during fees the with XXXX. occurred due increased decreased of the XXXX. Variable grape were for to in

Direct insurance, again, up of farms performance goods operations, less slightly due is sold, cost to operations. citrus expected crop plus crop that's higher sales, direct in under

items brokerage Other for auction small have in XXXX. improvements and expected

debt decreased Hopefully, On side, property mentioned share, year, to or travel given and shares range sales spend know today. $XX.X items. where and increase last XXXX. marketing the of of impact compensation, this with to AFFO in XXXX lower $X.X of a describe taxes, spend. insurance expense Legal year largely helps per This accounting decreased with Weighted and what we asset Interest General impacted cost the average Luca balances. the to million full stand to share an the rates minute to buybacks $X.XX million lower in ago. over $X.XX that and we due has estimates changes lower lower is due expenses small lower and decreases property because XXXX. expense operating due inflation on litigation other and administrative

now we up all comments participating. the We Thank my That for can this you the for morning. Q&A keep you ramps Operator, will session. you throughout begin progress year. updated as

the with comes your from question Instructions]. of [Operator Scott line Roth And Fortune MKM.

about if out potential you focus the want kind the the and of kind moving potential any more since they're kind as look then the between at of there market crops, you've permanent of at properties of within at row are to value of of you in That's or look portfolio in of mix the with your those crops kind belt. there the And obviously, acquisitions continuing Just look opportunities, away follow-up a And other your talked and and corn assets just from pipeline kind network? your mix see the that where water the on to or pipeline [indiscernible] and change portfolio. you the there?

Yes.

So this I'll Paul, that and is question. take

to So regions define the just attractive. belt It's we going first, Midwest, the core Illinois, the of our heart that of row crop corn view Indiana, the Missouri, the country. of the to find be

are will make Water States, Southeastern in growth. seldom, all tenants And ever, to easy will Delta, consistent that make they think appreciate rents the costs, and We Louisiana, to Georgia, will overheads would acquisitions are rapidly is very strong low and largely to those those in the continue the they Arkansas, particularly maybe grain Those Florida, rent very high-quality those in an becomes if acquisitions the of manage as regions very also relatively operate, We very, have They more scarce we operating ever Very properties. low Midwest, continue, to very farmland Alabama. United though, predictable issue producers. regions. Mississippi property area. and in be Carolinas, regions. in

to regions, to those continue highly are we'll there. attractive invest we and So

West dryer the So parts of U.S. the means is the implication for by what that that

now, so become dry. but think starts no of Eastern there, lower up starting that challenge. but is continue Colorado, Eastern problem, to X own a still halfway across will may on so few own years So today. Nebraska, Nebraska it a relatively overall of lighten We exposure. some really on Nebraska, We forth, properties from still as Western the in farms but and than percentage be those portfolio about that quite regions, will water we it a to

is Coast. bag. mixed to the West West clearer The a moving Coast Now

rights, the climate a of surface water that have productive. Some rights groundwater water, places highly farms the environment. strong very unique have make very, It's

it we a the that planting from we there think years some of are number quite reasons will X own of significant the a California And So overall over leads tough going world. many again, commodities one, by for of water; is farms those still may to but which the the percentage be on lower do now, across portfolio. in pricing. number bit two,

any problem to And have farms. share. there's way those the volatility regard lot cash crop two, think solve with don't crop we to volatile; manage. share of It's number and get We those one on number to very is rents Therefore, the to hard complex farms. a

also we back more can it feeds up manage. that, lighten perspective. from stable if less make expensive predictable into this the to So of investor and an simplify it on sort and and portfolio, easier

Scott. question, So that I hope answers your

it. good It's the color. at No, forward going you as I opportunities row here. Obviously, crops appreciate really look good

follow-up standpoint, to rates, assets And other pipeline these just here standpoint on just that of little more kind the a on from the farmer partners help here at environment challenging, these that environment interested as type financing more as but acquisitions, of parties from kind potential and and us that at the from the or understand things. far right, purchase a and looking or of what's obviously the higher close

Yes.

want a right add huge than Farmer the all frankly, example, or matter, story is, Mac of million now. land estate agriculture space, available liquidity space lack to a as other marketplace So fact traditional me have agriculture years. and as and to a that the companies the last despite XX and large There insurance is money assets. may active, absolutely over Luca banks and The into no am wealthy believer us personal for commercial are is We, James XX borrowing approximately there challenge that appreciation available. The in this. capacity. the But lenders that to completely or is credit I lend that $XXX made in and that of different both real -- farm is of

versus of negative a X costs spread spread. property. X points, run yield willing percentage X X. a frankly or be that off negative But too farm or on I'm run a cannot spread borrowing to today, negative current might you But not

challenging do it it makes plenty cost capital of acquisitions. opportunity, to but difficult. it so There's of our And makes

for opportunity in come our and scale both And program pretty -- an we'll limited in quarter, do transactions be for don't know the or deep Philosophically, So example, believe well and I to likely there's to some an Luca joining specific higher at always come we to that along Farmland deals rents those reason, acquisition been very rewarded try think -- time, have add-on will is get it's value reach is we first deep have. as those institution increasing or something where, over we we done. to already James... property. we'll

just penetration add, point, can think about an sector to in Paul's mortgage like data. XX%. to if the LTV USDA it according I'd basis, echo that Scott, our on like you it's That's

relative of for is see terms real The areas of that historical to commercial might are Farmers than sort of be top been very of a leverage X system in of profitability farmer kind other in much the last This have would you #X in look, lower years strong like Still three averages. rank. estate. profitability. down outlook year the -- So years bit. little

still are a not as little while doing well. maybe but well, farmers it's pretty bit, down So

buy darn of to to bit would still XXXX competition a appetite but in or still about your question well. have maybe likely from a maybe as quite they so farmers as be folks 'XX people been doing And acquisitions, pretty won't

I real that more on add If may one quick to one.

farm rent mentioned is kind a in of last Obviously, of said here You few going obviously kind 'XX just forward value rent that, but can for XXXX? look there ballpark increases any preliminary here. and we kind year, you of expectations into XX% forward after years, the if increases here. levels

Yes.

see rationale. XXXX, the think I give I'll then the give and answer, in I'll you you to going you're

revert would estimate. still we're little it of to be think think more to year. will years the that a but the been be those kind couple rents we to norm. in XXXX over is bit I historic in roll early my the It's than of to I of norm but on bracket sort to have That XX% X% going historic that have closer last to say,

reasons And here the for are that.

specific of strongly reason. started First, very portfolio sort ago. a now X We push increases to years rent

years And of so X we've very rent strong increases. had

this base -- I time, it high jumps we like X a re-leasing like think, rents ago, year. exact because we mean I already. years relatively got in this will and be forget off we when then that So start XX%, the years statistic, the ago, the got X And cycle single-digit XX%. high year, I then

so And higher we're be going to coming base. off a

I think right the kind level. X% of XX% So is to

of is of land negative to couple this macro profitability. for Then land grain a function are values, an XX-year X- past important the years. of the environment, little turning view than to of farmer's a going point, view function in outlook been values to and lower farmer's the are has more whereas a prices X-year due rents a farm Farmland depreciation. And that's it to a of be

rental are are get in the Thus, markets So but more effective. increase we'll we've declines, crop lower somewhat Farmland it's values by unaffected few in slightly a than price last -- gotten years. largely rents

the of Your next Segan question comes from Baird. line Alex with

one First Any that on in were specific? me would great. for be more staffing or they color corporate is, specific Were the roles reduced? company property which

Yes. be. always and will They they were corporate almost specific,

that. here REIT like We something are very XX a overall thin the itself, employees, in we're -- team

the in don't different in the in will, Champion, staff. staff. of approximately we're rules, think Illinois been But the sooner any could this pool tiny I group we tiny, have field. you running are. we cuts if sort the the of have brokerage assets We there $X.X get of than business farm billion headquarters of But a not with out

tight you -- working in are hide hard, can't everybody make. and harder. a bit company size. this And a little already these in was was people this a not mean quite are cuts team I now easy like to Everybody working

Denver the junior role as our were a didn't we'll operations in just we roles specific here school, go office, replace. back somewhat So graduate to in person one have to and functions

IR capable and on our the might And social all a I talking Luca, we've person not go have James as when really process. PR of consultant. We person. Internet much to some and and that's media sort call smaller a IR, still them you necessarily, had press that of And to very investors in our but let have me, access say that to degree, process,

acquisitive the control the the is And flying as Travel the used year. discussion. a been costs ask -- occurs, just directors get in to five. were directors leave, have of XX then We that's directors -- renominated any we and didn't a had directors, have quite the past. The are will under had reduced costs. And we as than few change to as one other to to a so Board had we but of have hard it's always annual less we meeting you great now X. in had we there of to around was the Board When literally not significantly and X And -- we then much we're Board not down the the look major past just year a as do be. we

Yes. one That's me. great more just color. And for

increases rents that XX%, for historical Can XXXX? about talked closer in embedded of you is to is which at confirm, to guide X% norm. in kind You XXXX what's the

the So in our mind, renewal a is the season of bear things end couple rent at year. to of

lot end Halloween November of of is that of think the coming A kind So and year. through in December. the

a rent we the rather is for XXXX, impact them flat. simplifying rolls small. projections assumption make on XXXX When keep of generally actually and we make So

in the at so not this increases And baked are really point.

Rent fully for to add increases are XX% is projections to X% see said. just That's contracted projection. about to increases rent XXXX will that because guess. the I'm happen something that, you and November, James me a add what in James though, that affect will it's XXXX very leased. and a already the next said not talking The important, just XXXX are what the Let to

now. projection. embedded there's hope 'XX because understand signed. So are roll in leases those not that risk already affect That a the projections and makes rent I the you sense

Riley. B. of the comes line John question next Your Massocca with from

touch bit of but given of number just brackets in on guys proceeds. XXXX, that you circumstances on tax maybe little could possibly means disposition what can transactions just kind of any terms do a in the So you

say. It's Yes. really hard to really,

have them. transaction used we seven of limit, So we've and one already the actually

And it was six but very something -- it that a of partial was a left. we it So transaction, used ownership sold. we party unfortunately, owned small controlling got a we

So we've off already table. the taken one

$XX through the we in offer if we'll of of or of sales year. hurdle said, be not million some reduction the opportunity, to they're in in great predict. number, the burn of size that is left. to the into I pretty But sales debt little do to have the unless for buybacks because year, Obviously, the hard some asset not always we if which the get might probably as $XX -- -- we opportunity There transactions it's a exceptions, sales a would transactions we bigger. we do beginning XXXX make bit. left shrink modeled good quickly. to size, in. don't course, during I if projections, neighborhood worth But it likely to 'XX year, you still stock helps we're asset too the But million modeled came is want to have in asset or room due later a had us of give But it's of So assumptions incredibly no like

did more we do And XX sales, of we if XX probably of purchases.

buybacks work the of trying dependent how interest debt terms it debt. think terms price will of of outlook But stock were at say a and credible to if go rate to half So a you dependent to in that's in stock with reduction. net I'd XX about half and it, will

sales And that then All much kind of of right. variable helpful. asset and That's I for in based is occurred how think XXXX, of much about already as very XXXX rent in pricing that 'XX. outlook? payments on And yield decline kind of versus that outlook set the from how is

but to more numbers is going need specific James add let and I helpful. to I'll I'm that, then probably Luca it to, take if or some

else So first. handle should James, somebody it. go you

Yes.

XXXX. it's mix. of great in So farms sold We couple a a

the that received sort of sold respect couple of have same the years away. that in goes some away. variable We would farms, So to goes with of past which nut a characteristics variable tree grapes we rent rent

farm pretty we ways, XXXX. reverting to large historical performed that, some little in have just, that to citrus that means. bit well addition And in a is In a

really I that for outlook being projected little variable what's the downside, bit to to lower. That's think, from So a sort upside, us payments surprise there. the of farm surprise the citrus prudently conservative impacting year-to-year. is change but Again, could could we're, us

Yes.

on build that. to Just

we mentioning was of outside. I As earlier, grow kind crops

out rely guesses. kind best just and at that terms for variable on access So events. by strongly that farms. Keep But the we up point, an be coming very season outlook have the expertise can mind yield of this in to wild on the on price are in yield they relatively on affected market for late with of our rent, weather we there

on have now further -- tempered So right be crop kind we outstanding down of farms the even looks that in the potentially certain outlook yields that road. might on

on that price and receive early this the by the queue following year. often, in a much late permanent houses ultimate very the year crops packing for And is determined not if marketing into we is that price,

of of road some do the upside on middle best information We we we we that the variability, but both can our have. So -- the have, the to best that on the be that on we remember and there information take a downside. significant kind of rely try

MetLife some sheet. And term Can balance sense. one maybe maybe That 'XX. pricing just one you of remind last the outlook us makes loan in resets the the on the for process,

Yes.

filed little it's X later today. we've in got XX-K and a our generally, more bit So to when Note detail

MetLife depending that. duration as spread treasuries, if et the So we're X-year treasuries, like X-year treasuries, generally, of reset, you'd tranches at X-year on to X-year, the cetera. But price a look we a those resets, talking if

treasuries XXX points over. historically We a of over basis XXX a in have in to been kind spread

do on sure got make we're is we've we're we to we that. certainly and high to of to can bring the where the -- world execution. getting probably side today, negotiate Given we We can as competitive good that try what bear down, lenders to hard as

that's and and can we and with a MetLife good we've and it where often. really back And how dynamic out early look got So think included, we all them the we about get engage we seeing lenders, with to execution.

we So in of our of year, we resets, last -- did years. X sort most

at and a end out discussions, XX% to penalty. ability all in up throughout the we get prepay bit XX% year MetLife sometimes these the of calendar to least lines year, And these more rolled we years to Towards X term. without little maintain to any on

to favor So somewhere in XX% our that pay of do all the that fixed sort of lines, we'd range that with and to these to the like We every on move extent side. really can year. XX% in down rates

projections assumption MetLife interest rent. Correct mean, a I an that in -- think in saw because rate of that projections increases that to you mentioned the based one I'm curves wrong, projected an if think we XXXX those to thing yield over. add those have, I of roll me current on loans supplemental. of made I those we've don't James but in it, sort jump the on the rate rental

the Luca at to I are There over Fabbri Instructions] will turn for now remarks. questions no this [Operator time. back call further closing

please you, Thank the We interest And thank the quarterly in updates. forward your appreciate year continue this you, with our meantime, everybody. our Jeannie, our to everybody, We out best a to company. look through in day. to way never and and conversation ir@farmlandpartners.com. if have Thank which Investor you is us. you, email have through great any hesitate Relations reach burning address, is questions,

concludes This call. today's

disconnect. now may You