Farmland Partners Inc. Reports Full-Year 2025 Financial Results
Farmland Partners Inc. (NYSE: FPI), a publicly traded real estate investment trust focused on high-quality North American farmland, reported its financial results for the year ended December 31, 2025. The Company delivered a strong operational and financial performance during the year, supported by disciplined capital management, strategic asset dispositions, and continued portfolio optimization.
Full-Year 2025 Financial Highlights
For the year ended December 31, 2025, the Company recorded net income of $32.2 million, or $0.65 per share available to common stockholders. This compares to net income of $61.5 million, or $1.19 per share, for the same period in 2024. While net income declined year-over-year, 2024 results included higher gains from asset sales, which contributed to the variance.
Adjusted Funds From Operations (AFFO), a key performance metric for REITs, increased to $17.9 million, or $0.39 per share, compared to $14.1 million, or $0.29 per share, in 2024. AFFO per share exceeded the Company’s updated third-quarter 2025 guidance midpoint of $0.34 per share, reflecting improved operational efficiency and capital allocation discipline.
The Company also strengthened its balance sheet during the year, reducing total indebtedness by $43.0 million. Debt outstanding declined from $204.6 million as of December 31, 2024, to $161.6 million at December 31, 2025.
Strategic Portfolio Optimization and Asset Sales
Throughout 2025, Farmland Partners actively refined its portfolio by divesting selected properties while maintaining exposure to high-quality farmland assets.
During the year, the Company completed the disposition of 60 properties across the Corn Belt, Delta and South, High Plains, and West Coast regions. These transactions generated aggregate consideration of $90.2 million, including $2.1 million in seller financing. The Company recognized an aggregate net gain on sale of $34.9 million, demonstrating the continued strength of U.S. farmland values.
Of the 60 properties sold, 23 were exchanged as part of a transaction to redeem and cancel 31,000 Series A preferred units, reflecting a strategic effort to simplify the capital structure.
In addition, Farmland Partners sold Murray Wise Associates, LLC (MWA) and its subsidiaries in November 2025. MWA represented the Company’s auction, brokerage, and third-party management business. The transaction generated aggregate consideration of $5.3 million, including $3.3 million in seller financing, and produced a gain of $1.0 million — a 23.3% capital appreciation on the original investment made in late 2021.
Targeted Acquisitions and Capital Deployment
While executing significant dispositions, the Company selectively acquired new farmland assets aligned with its long-term strategy. During 2025, Farmland Partners completed the acquisition of six properties in the Corn Belt region for total consideration of $7.3 million.
This disciplined acquisition strategy reflects management’s focus on quality over volume, prioritizing properties with attractive long-term return profiles and strong tenant operators.
Share Repurchases and Capital Returns
In 2025, the Company repurchased 3,411,581 shares of common stock at a weighted average price of $11.07 per share. Management viewed these repurchases as an attractive capital allocation opportunity, enhancing shareholder value by reducing outstanding shares at favorable pricing levels.
In December 2025, the Company declared a one-time special dividend of $0.20 per share, payable to holders of common stock and Class A Common OP Units. This special dividend was paid in January 2026, further demonstrating management’s commitment to returning capital to shareholders.
Post-Year-End Developments
Subsequent to December 31, 2025, Farmland Partners took several significant steps to further strengthen its financial position and enhance shareholder returns.
Dividend Increase
The Company increased its annualized cash dividend by 50%, raising it from $0.24 per share annually ($0.06 per quarter) to $0.36 per share annually ($0.09 per quarter) for common stock and Class A Common OP Units.
On February 17, 2026, the Board of Directors declared a quarterly cash dividend of $0.09 per share, payable April 15, 2026, to stockholders of record as of April 1, 2026.
Redemption of Series A Preferred Units
In February 2026, the Company redeemed the remaining 68,000 Series A preferred units for $68.0 million plus accrued distributions, totaling $68.2 million in cash. This transaction eliminated the risk of potential dilution from preferred unit conversion into common stock and significantly simplified the Company’s balance sheet.
Additional Capital Activity
The Company completed one additional property disposition in the West Coast region for $1.3 million in aggregate consideration.
It also made net borrowings of $76.2 million under its lines of credit and continued activity under the FPI Loan Program, advancing $2.5 million in principal while collecting $4.9 million on existing loans.
Balance Sheet and Liquidity Position
As of December 31, 2025, Farmland Partners reported total debt outstanding of $161.6 million, down from $204.6 million at year-end 2024. The Company’s estimated debt-to-enterprise value ratio stood at approximately 25.0%, reflecting a conservatively leveraged capital structure.
Liquidity remained strong, with $172.9 million available at year-end 2025. This consisted of $9.3 million in cash and $163.6 million of undrawn capacity under its credit facilities. Approximately $80.2 million of this liquidity was utilized in February 2026 to redeem the outstanding Series A preferred units.
As of February 13, 2026, the Company had 43,836,899 shares of common stock outstanding on a fully diluted basis.
CEO Commentary
Luca Fabbri, President and Chief Executive Officer, highlighted the Company’s strong operational execution and capital discipline in 2025.
He noted that Farmland Partners delivered compelling AFFO per share growth while strategically pruning underperforming and higher-risk assets at attractive sale prices. The redemption of the remaining Series A preferred units in early 2026 eliminated the risk of issuing common shares at potentially dilutive prices and further strengthened the Company’s balance sheet.
Fabbri emphasized the resilience of the Company’s farmland portfolio and the quality of its tenant base, even amid ongoing crop pricing pressures. He also pointed to continued strength in farmland values, as demonstrated by the gains realized on asset dispositions.
Looking ahead to 2026, management believes the Company is well-positioned to deliver attractive risk-adjusted total returns through disciplined capital management, high-quality farmland assets, and favorable long-term agricultural trends.
2026 Outlook
For detailed 2026 earnings guidance, investors are encouraged to review page 15 of the Company’s supplemental earnings package, available through the Investor Relations section of Farmland Partners’ website.
Management remains focused on maintaining a simplified capital structure, optimizing its farmland portfolio, supporting strong tenant relationships, and delivering sustainable dividend growth to shareholders.
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