Executive Summary

FPI raised FY2025 AFFO guidance to $0.28–$0.34 (from $0.25–$0.30) on stronger interest income, lower interest expense after 4Q24 deleveraging, and incremental solar revenues; 1Q25 total operating revenue was $10.25M and AFFO per share was $0.05 .
Versus S&P Global consensus, 1Q25 revenue beat ($10.25M vs $9.49M estimate) and Primary EPS beat ($0.011 vs $0.0067); FFO/share consensus stood at $0.0467 for the quarter (actual FFO/share not disclosed in the release) ; estimates marked with asterisk are from S&P Global*.
Portfolio optimization continued: two dispositions ($10.0M proceeds, $0.8M gain), five acquisitions ($6.5M), $7.6M new loans, and buyback of 63,023 shares at $11.74; debt edged down to ~$202.6M and liquidity was $189.1M at 3/31/25 .
Call tone constructive: modest rent increases expected in row crops, stable row-crop cap rates, California still bottoming, loan program growing (points amortization ~$2.4M for 2025), and buybacks prioritized over acquisitions given perceived NAV discount (mid-$14s per share NAV commentary) .

What Went Well and What Went Wrong

What Went Well
- Guidance raised: FY2025 AFFO to $0.28–$0.34 (from $0.25–$0.30) on higher interest income (loan program), solar income, and lower interest expense after 4Q24 deleveraging .
- Capital efficiency: $7.6M in new loans at attractive yields, accretive points amortization expected (~$2.4M in 2025), and opportunistic buybacks (63,023 shares at $11.74) .
- Management tone: “We are very pleased with our strong first quarter, which allowed us to raise our fiscal year 2025 guidance...” and highlighted “increased interest income, a meaningful reduction in interest expense... and revenues from a solar power production arrangement” .
What Went Wrong
- Top line and NOI down YoY: total operating revenues $10.25M (-14.5% YoY) and NOI $8.11M (-16.0% YoY), reflecting 2024 dispositions and lower rental income (partly offset by solar and loan program income) .
- Adjusted EBITDAre and AFFO down YoY: Adjusted EBITDAre $5.68M (-33.8% YoY) and AFFO $2.28M (-18.0% YoY); AFFO/share $0.05 vs $0.06 .
- California remains challenged; management intends to lessen exposure over time; modest rent growth expected in 2025 after a “pause” in 2024, with near-term pushes limited by farmer profitability dynamics .

Financial Results

Consolidated performance

Metric	Q1 2024	Q3 2024	Q1 2025
Total Operating Revenues ($USD Millions)	$11.99	$13.32	$10.25
Net Income ($USD Millions)	$1.41	$1.84	$2.09
GAAP EPS – Basic/Diluted ($)	$0.01 / $0.01	$0.02 / $0.02	$0.03 / $0.03
AFFO ($USD Millions)	$2.78	$1.40	$2.28
AFFO per share ($)	$0.06	$0.03	$0.05
NOI ($USD Millions)	$9.65	$9.78	$8.11
Adjusted EBITDAre ($USD Millions)	$8.58	$7.65	$5.68
Interest Expense ($USD Millions)	$5.04	$5.50	$2.64

Notes: Q4 2024 quarter-level figures were not disclosed in the press release; Q3 2024 is included for sequential context .

Revenue composition and operating costs

Metric	Q1 2024	Q1 2025
Rental Income ($USD Millions)	$10.21	$6.97
Crop Sales ($USD Millions)	$0.66	$0.85
Other Revenue ($USD Millions)	$1.12	$2.44
Property Operating Expenses ($USD Millions)	$1.80	$1.48
Cost of Goods Sold ($USD Millions)	$0.54	$0.66

Drivers: 2025 “Other revenue” benefited from a solar lease arrangement (~$1.0M) and increased management/interest income from the loan program; 2024 included ~$1.2M forfeited deposit income .

Balance sheet and liquidity (quarter-end)

Metric	Dec 31, 2024	Mar 31, 2025
Total Debt Outstanding ($USD Millions)	~$204.6	~$202.6
Cash ($USD Millions)	$78.4	$21.7
Undrawn Credit Facilities ($USD Millions)	$167.4	$167.4
Liquidity ($USD Millions)	$245.8	$189.1
Fully Diluted Shares Outstanding	47,097,743 (2/14/25)	47,193,374 (5/2/25)

Estimates vs actuals (S&P Global)

Metric (Q1 2025)	Estimate*	Actual*
Revenue ($USD)	9,489,000	10,251,000
Primary EPS ($)	0.0067	0.0110
FFO / Share (REIT) ($)	0.0467	n/a

Values marked with * retrieved from S&P Global (GetEstimates). Actuals reflect S&P Global’s “actual” fields for Primary EPS and Revenue; FFO/share actual not disclosed in the company press release . S&P Global estimates source: GetEstimates (Primary EPS, Revenue, FFO/share, and count of estimates).

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
AFFO ($) per share	FY 2025	$0.25 – $0.30 (Feb 2025)	$0.28 – $0.34	Raised (both ends)
AFFO ($ Millions)	FY 2025	$12.1 – $14.7 (Feb 2025)	$13.3 – $15.9	Raised
Revenue – Solar/Wind/Recreation	FY 2025	Baseline (Feb)	Increased due to solar arrangement	Raised
Management Fees & Interest Income	FY 2025	Baseline (Feb)	Increased (more loan program activity)	Raised
Other Revenue (incl. points amort.)	FY 2025	Baseline (Feb)	Increased (higher amortization of loan points)	Raised
G&A Expense	FY 2025	Includes removal of one-time severance/bonus	Increased (payroll and loan loss allowance)	Raised
Gain/Loss on Dispositions	FY 2025	Baseline (Feb)	Increased (reflects 1Q25 dispositions)	Raised
Interest Expense	FY 2025	Lower after 4Q24 deleveraging	Increased (higher weighted avg rate)	Raised
Dividend	2Q25	Quarterly $0.06 declared (payable 7/15/25)	Same	Maintained

Management directed investors to page 15 of the supplemental for full FY2025 guidance details .

Earnings Call Themes & Trends

Topic	Prior Two Quarters (Q3’24 and Q4’24)	Current (Q1’25)	Trend
Deleveraging/Interest Expense	Large 4Q24 paydown eliminated floating-rate exposure; projected ~$10.9M annual interest savings . No resets expected in 2025; undrawn capacity ~$167M .	Lower interest expense continues; no 2025 resets; undrawn ~~$167M; repaid April ’25 maturity partly via LOC (~~$14M) .	Positive; lower interest expense sustained.
Rent and Commodity Backdrop	2024 renewals flattish after prior strong years; outlook to push rents as grain prices improve .	Expect modest row-crop rent increases; emphasize 3–5yr rent cadence vs yearly noise .	Stabilizing to modestly positive.
California Exposure	Continued caution; values pressured by water/regulatory; gradual reduction of exposure .	Bottoming signs; capitulation by some sellers; lessen exposure over time .	Cautious; bottom forming.
Loan Program	Expanded in 4Q24 to support cash flows; asset-based lending niche .	Points amortization approx $2.4M in 2025; loans often 8–10% + points; some high-teens returns .	Growing contribution to revenue/other income.
Capital Allocation	Expect special dividend (paid Jan 2025) and buybacks; disciplined on acquisitions .	Buybacks prioritized over land buys given perceived 25–30% discount to NAV (NAV “mid-14s”) .	Shareholder-friendly; NAV-focused.
Tariffs/Macro	Monitoring commodity and policy risk; farmland resilient .	Tariffs a mixed bag; stagflation would be supportive of land values; specialty crops could benefit near term .	Macro sensitivity manageable; farmland seen as inflation hedge.
Legal/Regulatory	Ongoing litigation referenced in filings .	Progress in Rota Fortunae appeal; potential further appeals; continuing pursuit .	Incremental positive legal update.

Management Commentary

“We are very pleased with our strong first quarter, which allowed us to raise our fiscal year 2025 guidance... aided by increased interest income, a meaningful reduction in interest expense... and revenues from a solar power production arrangement.” — Luca Fabbri, CEO .
“We hope to eke out very modest increases in rents [in 2025]... better to think about rents over a 3–5 year average… we’re in a pause now, but it will come back.” — Paul Pittman, Executive Chairman .
“We would say that the portfolio today is in the mid-14s [NAV per share]... lower than last time because we paid a $1.15 dividend.” — Paul Pittman .
“We are expecting to recognize amortization of points income for the year at approximately $2.4 million.” — Susan Landi, CFO .
“Buybacks are a serious bargain… likely more stock buyback focused than land purchase focused” given discount to underlying value — Paul Pittman .

Q&A Highlights

Loan program economics: loans often 8–10% headline rates plus points; short duration with accelerated points amortization; points amortization ~ $2.4M expected in 2025 .
Solar revenue: recurring but 1Q’s benefit included a startup/windfall effect; future run-rate expected lower than the recent spike .
Balance sheet actions: repaid April ’25 maturities using ~$14M LOC plus operating cash; maintain Farmer Mac facility to preserve liquidity .
Market/cap rates: row-crop cap rates stable; Illinois remains strong; California starting to see seller capitulation; water-constrained areas under more pressure .
Capital allocation: buybacks prioritized over acquisitions given perceived 25–30% discount to NAV; still evaluating selective acquisitions and dispositions .

Estimates Context

1Q25 revenue beat S&P Global consensus estimate ($10.25M actual vs $9.49M est.) and Primary EPS beat ($0.011 actual vs $0.0067 est.); FFO/share consensus stood at $0.0467 (company did not disclose 1Q25 FFO/share) . Values retrieved from S&P Global*.
Implications: With guidance raised, Street models likely need to increase FY2025 “other revenue” (solar, loan program) and slightly higher interest expense assumptions; AFFO per share range implies higher back-half contribution. Management flagged increases in both revenue and certain expense line items in the updated outlook .

Key Takeaways for Investors

Guidance raise is the headline: FY2025 AFFO per share increased to $0.28–$0.34, underpinned by loan program economics, solar income, and sustained interest expense relief post-4Q deleveraging .
Business mix shift supports cash flows: higher-yielding loans (plus points) and alternative income (solar) offset lower fixed rents from prior disposals; monitor execution and credit allowances .
Capital allocation remains shareholder-friendly: selective asset sales and buybacks prioritized over farm acquisitions given management’s NAV discount view (mid-$14s NAV commentary) .
Operating backdrop stabilizing: modest rent growth expected in 2025, stable row-crop cap rates, and improving farmer income alongside commodity recovery; California still the swing factor .
Watch 2025 drivers: (1) loan program scale and points amortization realization; (2) recurring level of solar revenue; (3) disposition gains; (4) interest rate trajectory and refinancing cadence .
Dividend intact: $0.06 declared for the quarter (payable July 15, 2025); coverage informed by raised AFFO outlook; Board to evaluate quarterly .
Legal overhang easing incrementally with appeals progress; not a primary earnings driver but reduces tail risk .

References

Q1 2025 press release and financial tables: .
Q1 2025 8-K including Exhibit 99.1: .
Q1 2025 earnings call transcript: .
Prior quarters for trend: Q4 2024 press release and call (FY figures, outlook baseline): . Q3 2024 press release: .

Estimates disclaimer

S&P Global consensus and “actual” fields for Primary EPS and Revenue; and FFO/share consensus: values marked with asterisk (*) are retrieved from S&P Global (GetEstimates).

Farmland Partners Inc. (FPI)·Q1 2025 Earnings Summary