Farmland Partners (NYSE:FPI) management highlighted what it called a “very, very good quarter and a very good year” during the company’s fourth-quarter and full-year 2025 earnings call held Feb. 19, 2026. Executives pointed to higher adjusted funds from operations (AFFO), continued portfolio and corporate simplification steps, and a balance sheet repositioning that included redeeming the company’s remaining Series A preferred units in cash.
2025 results: net income down, AFFO up
CFO Susan Landi said net income totaled $32.2 million for full-year 2025 and $21.8 million for the fourth quarter, or $0.65 and $0.49 per share available to common stockholders, respectively. Landi noted net income for both periods was lower than the comparable 2024 periods.
According to Landi, total operating revenues declined by about $6 million primarily due to dispositions completed in 2024 and 2025. The company partially offset the decline with an increase in variable rents in the fourth quarter and higher interest income tied to larger average balances under the company’s loan program.
On the cost side, Landi said total operating expenses excluding impairments fell by roughly $3.6 million, driven by lower property operating costs and depreciation related to dispositions, as well as lower general and administrative (G&A) expenses. She said G&A benefited from lower bonus expense in 2025 and referenced a one-time severance expense of $1.4 million and accelerated stock-based compensation recorded in the prior year.
Impairments, however, rose. Landi said impairment of assets increased by $17 million related to certain West Coast properties where the company concluded there had been a loss in value. The impairment was recorded in the second quarter.
“Other income was lower than prior year due to lower gains on property dispositions,” Landi said, though she added results were partially offset by a $9.2 million reduction in interest expense due to significant debt reductions since October 2024.
Balance sheet actions and preferred unit redemption
Management emphasized a focus on liquidity and leverage. CEO Luca Fabbri said the company prepared for repayment of its Series A equity and was able to complete that repayment in February as a cash redemption rather than through common stock conversion, which he said would have been “very dilutive.” Landi said the company redeemed the remaining 68,000 outstanding Series A Preferred Units using borrowings subsequent to year-end, which she said removed a common stock overhang and further simplified the balance sheet.
Landi reported the company had about $164 million of undrawn capacity on its lines of credit at the end of December 2025. As of the call date, undrawn capacity was about $111.7 million, reflecting net borrowings used primarily for the preferred redemption.
She also said Farmland Partners amended its Farmer Mac facility in December, increasing the facility size from $75 million to $89.6 million. Looking ahead to 2026, Landi noted four MetLife loans totaling about $26 million have resets coming up, and that one loan repriced in January at 5.19%.
MWA sale, G&A run-rate, and operating approach
Fabbri and Executive Chairman Paul Pittman said Farmland Partners continued to simplify its business through the sale of its brokerage, auction, and asset management subsidiary, Murray Wise Associates (MWA), to Peoples Company. Fabbri said the company would maintain a “very close working relationship” with the buyer and former MWA team, allowing it to streamline while retaining access to market intelligence previously generated internally.
Asked about G&A guidance, management said MWA was a major driver of the expected year-over-year decline in overhead. Pittman said MWA represented a “significant reduction” because the company no longer has those employees on payroll, and added that additional overhead reductions were also underway. Pittman said the company believes the 2026 level represents a “sustainable and ongoing run rate.”
2026 guidance: cautious stance on variable revenues
For 2026, Landi provided guidance calling for net income of $8.8 million to $10.9 million and AFFO of $14.4 million to $16.4 million, or $0.33 to $0.37 per share.
On revenue expectations, Landi said fixed farm, solar, wind, and recreation rent reflects the full-year impact of 2025 dispositions and lease renewals. She said variable payments, crop sales, and crop insurance are expected to decrease from 2025 due in part to the company’s “early season outlook on citrus and avocados” and in part due to dispositions.
During Q&A, Fabbri said the variable outlook incorporates both asset sales and a more cautious forecasting posture after strong variable performance in the fourth quarter of 2025. He said the company does not have “hard knowledge” of fourth-quarter 2026 yields and pricing, describing the uncertainty as inherent to agriculture. Landi added that the “vast majority” of the decline in variable revenue expectations relates to 2025 dispositions, and said farm rents were “relatively flat,” contributing to a decision to pursue primarily single-year renewals.
On expenses, Landi said property operating expenses and depreciation are expected to decline due to 2025 dispositions, while G&A is forecast to fall primarily due to the MWA sale and lower expected credit losses on loans. She said interest expense is expected to increase due to borrowings made so far in 2026.
Portfolio dispositions, California stance, and loan program activity
Management indicated it expects continued portfolio “marginal improvements” in 2026, with emphasis on California when pricing is considered fair. Pittman said the company has “soured on California,” adding it would gradually liquidate most of its holdings there while likely retaining its best properties in almonds and other tree nuts. He said the California market is “open again,” though pricing “isn’t great,” and described a prior period where buyers’ and sellers’ expectations were far apart as having closed, with transactions now occurring.
Pittman also said the company is “super, super bullish on Illinois,” noting many assets there are up “30% or more” since purchase. He added the company would consider selling Illinois assets if it can achieve top-dollar pricing and return gains to shareholders, while also continuing to reduce exposure in states where it holds only one or two farms for efficiency reasons.
The company also discussed its loan program as a contributor to AFFO and as an area of ongoing opportunity. In response to a question about two loans scheduled to mature at the end of January, management said the loans were extended—first indicating September and then clarifying to the end of the year. Pittman described the loan program as “countercyclical” and said demand is strong in an environment where some farmers are struggling. He said the company is willing to keep loans outstanding as long as collateral remains solid because “the returns are strong.”
On loan accounting and terms, management said it typically collects interest along the way and extends principal, and that it tends not to capitalize interest. On refinancing expectations, Landi said the company’s term loan refinancing was expected to reprice around the 5.3% range, which management said was in line with market conditions for that type of loan.
Farmland Partners also announced a higher regular dividend. Fabbri said the company increased its dividend by 50% to $0.09 per share per quarter, which management said was supported by cash flow expectations rather than asset sales. Pittman added that asset sales can drive special dividends, but the company does not want to base its regular dividend on dispositions given their unpredictability.
About Farmland Partners (NYSE:FPI)
Farmland Partners Inc is a real estate investment trust (REIT) that acquires and manages high-quality farmland in the United States. The company’s primary business activity is the ownership of agricultural land, which it leases to farmers under various rental arrangements designed to generate stable cash rents and long-term capital appreciation. By focusing on farmland as a real asset, the company seeks to benefit from rising global demand for food, fiber and renewable fuels.
Founded in 2013 and headquartered in Scottsdale, Arizona, Farmland Partners completed its initial public offering in June 2017 and began trading on the New York Stock Exchange under the ticker FPI.
