Farmland Partners Inc.

For Q2 2026, net income was $3.1 million, or $0.07 per share available to common stockholders, versus $7.8 million, or $0.15 per share, in Q2 2025. AFFO was $1.7 million, or $0.04 per weighted average share, versus $1.3 million, or $0.03 per share, a year ago. For the first six months of 2026, net income was $3.8 million, or $0.08 per share, versus $9.9 million, or $0.18 per share, and AFFO was $3.8 million, or $0.09 per share, versus $3.6 million, or $0.08 per share. Management said Q2 revenue was helped by higher interest income, more amortization of points, and higher oil and gas royalty proceeds, partly offset by lower rental income from prior-year asset sales. Updated 2026 AFFO guidance is $13.5 million to $15.3 million, or $0.31 to $0.35 per share, with the low end raised and the high end unchanged; the change reflects higher variable lease payments, offset by more credit loss allowance, higher impairment on one West Coast property, and a $3.6 million gain on a property sale.

Luca Fabbri characterized the quarter as strong but calm, saying the company slightly raised guidance on the low end while the period was otherwise uneventful. He emphasized that lease renewals are being handled cautiously because tenant financial conditions are weak, though the tenant base remains strong. He also said Farmland Partners is continuing to evaluate dispositions, especially noncore California assets, and is watching whether farm economics improve before accelerating renewals.

Susan Landi highlighted Q2 net income of $3.1 million and AFFO of $1.7 million, along with first-half net income of $3.8 million and AFFO of $3.8 million. She said operating expenses declined year over year, helped by lower G&A, legal fees, and property impairment charges, while credit loss allowance increased on FPI loan program receivables. On capital structure, she noted about $122 million of undrawn capacity at quarter-end, $8 million of repayments with no borrowings in the quarter, and a rate reset/extension that lowered average loan rates from 5.64% to 5.25%.

Analysts focused on the credit loss reserve, the source of the quarter’s property gain, variable rent assumptions, buybacks, and tenant stress. Management said the reserve build was mainly tied to one distressed borrower and was prudent given the loan program’s risk profile, while the $3.6 million gain came from selling an Illinois farm to the solar developer because its development value exceeded agricultural value. On buybacks, Paul Pittman said the program is driven first by stock price and then cash, but the company is reluctant to borrow long-term at mid-5% rates just to fund repurchases without asset sales to backfill. He also said California remains challenged, though less so than six months ago, and that the company still sees a long-term need to reduce exposure there.