Farmland Partners Inc (FPI) Q4 2025 Earnings Call Highlights: Strong AFFO Growth and Strategic …

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Fri, February 20, 2026 at 8:00 AM GMT+9 3 min read

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This article first appeared on GuruFocus.

Release Date: February 19, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Farmland Partners Inc (NYSE:FPI) reported a strong Q4 and overall strong year for 2025, with significant AFFO growth.

The company successfully reduced its debt and leverage, particularly by paying off preferred shares, which reduced senior claims to common shareholders.

FPI increased its dividend by 50%, reflecting disciplined cost control and strategic asset management.

The sale of the Murray Wise subsidiary simplified the business while maintaining market intelligence through a close relationship with the buyer.

The company has a strong outlook for 2026, with plans for portfolio improvements and a focus on fair asset pricing.

Negative Points

Net income for 2025 and Q4 was lower compared to the same periods in 2024.

Total operating revenues declined by approximately $6 million due to asset dispositions in 2024 and 2025.

Impairment of assets increased by $17 million, related to certain West Coast properties.

Interest expense increased due to borrowings in 2026, impacting financial flexibility.

The company remains cautious about the agricultural market's uncertainty, particularly regarding crop yields and pricing.

Q & A Highlights

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Q: How much of the change in variable rent guidance for 2026 is due to asset sales versus changes in farm revenue? A: Luca Pabli, CEO: It’s a combination of both asset dispositions and a more cautious approach to forecasting farm revenue for 2026. The strong performance in Q4 2025 has led us to be conservative in our estimates, as crop yields and pricing remain uncertain. Susan Landy, CFO, added that the majority of the decrease relates to dispositions.

Q: Regarding the expected decline in G&A expenses for 2026, how much is due to the sale of Murray Wise and other factors? A: Paul Sitman, Executive Chairman: The reduction in G&A is significantly due to the sale of Murray Wise, which reduced payroll costs. Additionally, there are other cost reductions in general overhead, and this is expected to be a sustainable run rate for 2026.

Q: What is the outlook for asset dispositions, particularly in California, and how does it affect fixed and variable rents? A: Paul Sitman, Executive Chairman: The California market is open again, though pricing isn’t ideal. We plan to gradually liquidate California assets, focusing on achieving high prices. The impact would be more significant on variable rents rather than fixed farm rents.

Story Continues  

Q: Have the FBI loans scheduled to mature at the end of January been repaid or extended? A: Susan Landy, CFO: The loans have been extended to September. The loan program remains strong, and we are comfortable extending loans as long as the collateral is solid.

Q: With the increase in the dividend, how should we think about the capital recycling strategy and share repurchases? A: Paul Sitman, Executive Chairman: Share repurchases may decline as the stock price appreciates, but we believe the stock is still trading below its breakup value. The dividend increase is driven by increased AFFO, not asset sales, which are unpredictable and drive special dividends.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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