Key Takeaways
- Farmland Partners’ Net income reached $7.8M in Q2 2025, reversing a loss in the same period last year
- AFFO increased 145% YoY to $1.3M; adjusted EBITDAre declined 32%
- Company completed $71.6M in farmland sales, recording $24.2M in gains
- FPI repurchased over 2.2M shares during and after the quarter
- Impairments on California properties totaled $16.8M due to long-term crop and water challenges
Farmland Partners Grows Net Income Through Strategic Dispositions Despite Operational Declines
Farmland Partners Inc. (NYSE: FPI) reported improved financial results for the second quarter of 2025, driven primarily by significant gains from farmland sales and ongoing share repurchase activity. The company recorded net income of $7.8 million, or $0.15 per share, compared to a loss of $2.1 million in Q2 2024.
The company’s Adjusted Funds From Operations (AFFO) rose to $1.3 million, up from $530,000 in the same period last year. However, adjusted EBITDAre fell 31.5% year-over-year to $4.5 million, reflecting a decrease in recurring operating income.
Asset Sales and Share Buybacks Central to Capital Strategy
During the quarter, Farmland Partners sold 32 properties for $71.6 million, resulting in a $24.2 million gain. Year-to-date, total dispositions stood at $81.6 million, reinforcing the company’s strategy to unlock farmland value.
Proceeds from sales were used to repurchase 2.1 million shares at an average price of $11.19. An additional 182,000 shares were repurchased post-quarter at $11.48. These actions align with the company’s approach to redeploy capital toward undervalued stock and reduce high-cost debt.
California Impairments Reflect Long-Term Crop and Water Pressures
The company recognized $16.8 million in impairments on its California permanent crop properties. CEO Luca Fabbri noted the write-downs stemmed from evolving crop and water dynamics, but emphasized continued confidence in farmland as a “low-volatility, total-return asset class.”
Despite impairments, Fabbri highlighted the strong gains from farm sales and ongoing operating cash flows as signs of value creation for shareholders.
Operating Metrics Decline While Balance Sheet Remains Flexible
Operating revenue fell 13% year-over-year to $10 million, and net operating income (NOI) declined 22% to $6.9 million, reflecting reduced rental income from sold assets and challenging lease dynamics. The company acquired five properties for $6.5 million during the first half of 2025.
As of June 30, total debt stood at $193.4 million, down from $204.6 million at year-end 2024. Liquidity totaled $211.1 million, including $51.1 million in cash and $160 million in undrawn credit.
Dividend Maintained; Farmland Partners’ Outlook Focused on Asset Optimization
On July 22, Farmland Partners’ board declared a $0.06 quarterly dividend per common share, payable on October 15, 2025, to shareholders of record as of October 1.
Looking ahead, the company plans to continue optimizing its portfolio through selective acquisitions, sales of appreciated properties, and further capital allocation to enhance shareholder value, with a particular focus on maintaining flexibility in a dynamic farmland market.
Read the complete financial results here.
