Farmland Partners Inc (FPI) Reports Q3 2023 Results: Net Income Soars by 285.6%
Net income for Q3 2023 reached $4.315 million, a significant increase of 285.6% from Q3 2022.
Net income per share available to common stockholders rose by 600.0% to $0.07.
Total operating revenues for Q3 2023 were $11.617 million, a decrease of 11.6% from the same period last year.
The company declared a quarterly cash dividend of $0.06 per share of common stock and Class A Common OP unit, payable on January 16, 2024.
Farmland Partners Inc (NYSE:FPI) released its financial results for the third quarter of 2023 on October 25, 2023. The company reported a substantial increase in net income, demonstrating strong performance despite global economic and geopolitical uncertainty. The company's strategy of selectively pruning its portfolio and redeploying capital through stock buybacks, debt repayment, and attractive asset acquisitions has proven effective.
Financial and Operating Results
For the quarter ended September 30, 2023, FPI reported a net income of $4.315 million, a significant increase of 285.6% from the same period in 2022. Net income per share available to common stockholders rose by 600.0% to $0.07. However, the company reported a decrease in total operating revenues, which stood at $11.617 million, a decrease of 11.6% from the same period last year.
Dividend Declarations
The company's Board of Directors declared a quarterly cash dividend of $0.06 per share of common stock and Class A Common OP unit. The dividends are payable on January 16, 2024, to stockholders and common unit holders of record on January 2, 2024.
Balance Sheet Overview
As of September 30, 2023, the company's total assets stood at $1.068 billion, a decrease from $1.160 billion at the end of 2022. The company's total liabilities were $438.607 million, a decrease from $455.935 million at the end of 2022. The company's equity stood at $528.862 million, a decrease from $594.004 million at the end of 2022.
CEO Comments
Luca Fabbri, President and Chief Executive Officer: Against a backdrop of global economic and geopolitical uncertainty, the US agriculture industry in general, and farmland as an asset class in particular, continue to offer stability to consumers and investors alike. We have been leveraging this stability by continuing to selectively prune our portfolio, with a focus on farms that are not long-term strategic fits for the portfolio. With proceeds from asset sales, we are redeploying capital through stock buybacks, debt repayment and attractive asset acquisitions. The strong lease renewals we have been securing are a testament to the robust health of the farm economy and the overall quality of our portfolio.
Farmland Partners Inc (NYSE:FPI) is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of September 30, 2023, the Company owns and/or manages approximately 178,200 acres in 20 states.
Explore the complete 8-K earnings release (here) from Farmland Partners Inc for further details.
This article first appeared on GuruFocus.
