Farmland Partners Inc. (FPI) reported significant financial growth for the fiscal year ending December 31, 2024, with net income rising 94% to $61.5 million, up from $31.7 million in 2023. Adjusted Funds from Operations (AFFO) also saw a substantial increase of 72.9%, reaching $14.1 million compared to $8.1 million the previous year. The company attributed this growth to higher crop sales, which surged by 122.7% to $5.0 million, and a notable gain on asset dispositions, which totaled $54.1 million from the sale of 54 properties.
In terms of operational changes, FPI completed the sale of 54 properties across various regions, generating $312 million in aggregate consideration. The company also made strategic acquisitions, purchasing four properties for $17.9 million. These transactions reflect FPI's ongoing strategy to optimize its portfolio and enhance liquidity, which increased to $245.8 million as of December 31, 2024, compared to $206.6 million a year earlier. The company repurchased 2.24 million shares of its common stock at an average price of $12.25 per share, further demonstrating its commitment to returning value to shareholders.
FPI's operational metrics indicate a diverse portfolio, with approximately 93,500 acres of farmland across multiple states, including Arkansas, California, and Texas. The company manages an additional 48,300 acres, and as of the end of 2024, about 60% of its portfolio was dedicated to primary crops like corn and soybeans, while 40% was allocated to specialty crops. The company’s tenant base remains stable, with a near-zero vacancy rate for quality farmland, which is expected to continue due to strong demand and limited supply.
Looking ahead, FPI's management expressed optimism about the agricultural market, citing increasing global food demand and the scarcity of high-quality farmland as key drivers for future growth. However, the company also acknowledged potential risks, including the impact of high inflation, interest rates, and geopolitical tensions, particularly the ongoing war in Ukraine, which could affect crop prices and tenant profitability. FPI plans to maintain its focus on strategic acquisitions and operational efficiency to navigate these challenges and sustain its growth trajectory.
About Farmland Partners Inc.
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