Key Takeaways
- Farmland Partners reported Q1 2025 net income of $2.1 million, up from $1.4 million in Q1 2024.
- AFFO declined to $2.3 million from $2.8 million year-over-year, though full-year AFFO guidance was raised.
- The company completed five acquisitions and two property sales during the quarter.
- Balance sheet liquidity remained solid, with $189.1 million in cash and available credit.
- A quarterly dividend of $0.06 per share was declared, payable on July 15, 2025.
Farmland Partners posts higher net income, raises 2025 AFFO forecast
Farmland Partners Inc. (NYSE: FPI) reported financial results for the quarter ended March 31, 2025, delivering higher net income and raising its full-year AFFO guidance despite lower operating revenues compared to the prior year.
Net income for the first quarter totaled $2.1 million, or $0.03 per share available to common stockholders, compared to $1.4 million, or $0.01 per share, in the same period last year. AFFO, a key performance metric, declined to $2.3 million or $0.05 per share, compared to $2.8 million or $0.06 per share in Q1 2024.
“Farmland Partners had a strong start to the year, which supported our decision to raise our full-year AFFO guidance,” said Luca Fabbri, President and CEO of Farmland Partners. “Our strategic focus on asset optimization and shareholder returns continues to deliver results.”
Acquisitions and dispositions support portfolio management strategy
During the quarter, Farmland Partners completed five property acquisitions totaling $6.5 million. At the same time, the company disposed of two farms for $10 million, recognizing a $0.8 million gain on sale.
The company also issued $7.6 million in loans under the FPI Loan Program and repurchased 63,023 shares of common stock at an average price of $11.74 per share.
Q1 2025 Transaction Activity
| Activity | Amount |
|---|---|
| Acquisitions | $6.5 million |
| Dispositions | $10.0 million |
| Gain on Sale | $0.8 million |
| Shares Repurchased | 63,023 shares at $11.74 avg. price |
Financial performance supported by interest income and reduced expenses
Farmland Partners noted that financial performance in the quarter benefited from higher interest income and lower interest expenses, following debt reductions in prior quarters. Additionally, revenue from a solar power production arrangement contributed to income.
Total operating revenues for the quarter were $10.3 million, down from $12.0 million in Q1 2024. Net Operating Income (NOI) also decreased to $8.1 million from $9.7 million, reflecting impacts from property sales and seasonality.
Strong balance sheet and dividend maintained for Farmland Partners
As of March 31, 2025, Farmland Partners reported total debt of $202.6 million, slightly lower than at year-end 2024. Liquidity stood at $189.1 million, including $21.7 million in cash and $167.4 million in undrawn credit.
The company’s Board of Directors declared a quarterly dividend of $0.06 per share, payable on July 15, 2025, to shareholders of record as of July 1, 2025.
Farmland Partners 2025 outlook improved with increased AFFO guidance
Farmland Partners raised its full-year AFFO guidance range to $0.28 to $0.34 per share, up from the previous range of $0.25 to $0.30.
CEO Luca Fabbri stated, “We look forward to a strong remainder of the year,” citing the resilience of farmland as an asset class and the company’s ongoing strategic initiatives as drivers of expected performance.
Read the complete financial results here.
