Farmland Partners (FPI) Q4 2025 earnings summary

Executive summary

• Net income for 2025 was $32.2 million ($0.65 per share), down from 2024, mainly due to lower gains on asset sales and reduced operating revenues.

• AFFO increased to $17.9 million ($0.39 per share), up 27% year-over-year and exceeding guidance by $0.05 per share.

• Completed 60 property dispositions for $90.2 million, recognizing a $34.9 million net gain, and acquired six properties for $7.3 million.

• Reduced total indebtedness by $43.0 million to $161.6 million and repurchased 3.4 million shares at $11.07 average price.

• Sold Murray Wise subsidiary (MWA) for $5.3 million, realizing a $1.0 million gain and streamlining operations.

Financial highlights

• Total operating revenues declined by $6 million (10.4%) to $52.2 million, mainly due to asset dispositions.

• AFFO for 2025 was $17.9 million and $11.4 million for Q4, both higher than 2024.

• Adjusted EBITDAre decreased 16.2% to $30.1 million.

• Operating expenses (excluding impairments) decreased by $3.6 million, mainly from lower property costs and G&A.

• Asset impairments increased by $17 million, related to West Coast properties.

Outlook and guidance

• 2026 net income forecasted at $8.8–$10.9 million; AFFO at $14.4–$16.4 million ($0.33–$0.37 per share).

• Revenue expected to decrease due to prior year dispositions and lower variable payments from citrus and avocados.

• Expenses projected to decline further from lower property and payroll costs.

• Interest expense expected to rise due to new borrowings in 2026.

• Management expects continued strong risk-adjusted returns in 2026, supported by disciplined capital management and favorable agricultural trends.