The following is a summary of the Farmland Partners Inc. (FPI) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Reported a net loss of $2.1 million for Q2 2024, deteriorating from the previous year primarily due to the impacts of property dispositions.

• AFFO rose to $0.5 million, showing improvement due to lower general & administrative expenses and increased sales volume of citrus.

• Despite a 10.4% reduction in portfolio size, operating revenues decreased only by 1.2%, reflecting efficient portfolio management.

Business Progress:

• Announced a CFO transition aiming to reduce costs; Susan Landi has taken over as CFO following the departure of James Gilligan.

• Emphasized a strategic reduction in exposure to California's market due to regulatory and labor cost challenges, planning to focus more on core assets in the Corn Belt.

• Highlighted the seasonal nature of financial performance, with expectations of stronger revenue recognition in Q4.

Opportunities:

• Plans to continue asset sales to capitalize on high private market values, particularly with the expectation of some transactions later in the year due to Safe Harbor limitations.

• Seasonality in business provides potential for stronger performance in Q4, historically a higher revenue period.

Risks:

• Acknowledged lower commodity prices leading to minor distress among farmers, impacting negotiations and potential rent renewals.

• Noted potential pressure in leasing and property values due to economic conditions affecting the agricultural sector.

• Highlighted ongoing environmental and political challenges in California affecting asset values and operations.

More details: Farmland Partners Inc IR

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