Farmland Partners Inc. (NYSE: FPI) Company Presentation June 2020 - - PowerPoint PPT Presentation

farmland partners inc nyse fpi company presentation
SMART_READER_LITE
LIVE PREVIEW

Farmland Partners Inc. (NYSE: FPI) Company Presentation June 2020 - - PowerPoint PPT Presentation

Farmland Partners Inc. (NYSE: FPI) Company Presentation June 2020 Disclaimer Forward Looking Statements Some of the statements contained in this presentation, including statements regarding our portfolio development approach, our pending


slide-1
SLIDE 1

Farmland Partners Inc. (NYSE: FPI) Company Presentation

June 2020

slide-2
SLIDE 2

Disclaimer

2

Forward Looking Statements Some of the statements contained in this presentation, including statements regarding our portfolio development approach, our pending acquisitions, and other investment opportunities, our future growth prospects and targeted returns, farmland investment characteristics and certain trends, constitute forward-looking statements within the meaning of the federal securities laws. Forward- looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “predicts,” or “potential” or the negative of these words or similar words, which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions

  • f strategy, plans or intentions.

The forward-looking statements contained in this presentation reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances, many of which are beyond our control, that may cause actual results to differ significantly from those expressed in any forward-looking statement. While forward- looking statements reflect our good faith beliefs, assumptions and expectations, they are not guarantees of future

  • performance. Furthermore, we expressly disclaim any obligation to publicly update or revise any forward-looking statement to

reflect changes in the underlying assumptions or factors, new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause our future results to differ significantly from any forward-looking statements, see the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019, and

  • ur other filings with the Securities and Exchange Commission.

This presentation contains statistics and other data that has been obtained from or compiled from information made available by third parties. We believe that the information obtained from or compiled by third parties is reliable, but we have not independently verified such information.

slide-3
SLIDE 3

3

§ Largest U.S. Public Farmland REIT (NYSE: FPI)

  • IPO in April 2014
  • Total assets of approximately $1.1 billion 1
  • Portfolio spanning approximately 156,500 acres across 16 states 1
  • Farmed by over 100 tenants growing approximately 26 varieties of crops 1

§ Premier Farmland Assets

  • FPI believes the U.S. is the world’s most appealing agriculture market to invest
  • Seek highest quality properties (soil, water availability, transport access and tenant profile)
  • Primarily core investments while also selectively considering special opportunities

§ Highly Experienced Team

  • Individuals with experience in finance and agriculture
  • Company and predecessor have been investing in farmland for over 20 years
  • Team invests across all core U.S. farming regions where it has deep local knowledge and networks
  • Approximately 9% of FPI shares owned by insiders 2

§ Efficient and Scalable Platform

  • Overhead costs of less than 100 bps of gross real estate assets 3
  • Potential to realize additional economies of scale with future acquisitions

____________________ (1) Statistics as of June 2, 2020. (2) On a fully diluted basis including OP Units. (3) Statistic based on results reported for the year ended December 31, 2019. Overhead costs include General and administrative and Legal and accounting.

Company Overview

Executive Summary

slide-4
SLIDE 4

4

____________________ (1) Example crop types, not comprehensive.

Focused on Core U.S. Farm Regions Crop Types Geographic Diversification

December 31, 2019

Permanent/ Specialty Crops 1 Almonds, avocados, walnuts, pecans, pistachios, wine grapes, non-tree fruits, vegetables, etc. Row Crops 1 Corn, soybeans, rice and cotton

Location of FPI Investments Based on 2019 Revenues

Farmland Partners Inc. – Company Overview

Portfolio Overview

Livestock1 Feedlots

Livestock 1% Row Crops 63% Specialty Crops 36%

Region Cost Basis Acres 2019 Revenue Corn Belt 35% 28% 28% Delta + South 10% 18% 9% High Plains 8% 20% 8% Southeast 19% 27% 20% West Coast 28% 7% 35%

! ( ! ( ! ( ! ( ! ( ! (

! ( ! (! ( ! ( ! ( ! ( ! ( ! ( ! ( ! (

! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! (

! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! (

! ( ! ( ! ( ! ( ! ( ! ( ! (! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! (! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! (! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! (^

^

^ ^ ^ ^ Farmland Partners Offices

Visalia, CA Denver, CO Green Valley, IL Rocky Mount, NC Monroe, LA

Farm by Cost Basis

! ( $0 - $2,070,000

! (

$2,070,001 - $5,215,155

! (

$5,215,156 - $11,000,000

! (

$11,000,001 - $18,660,000

! ( $18,660,001 - $48,310,000

slide-5
SLIDE 5

5

Company Overview

Financial Highlights

____________________ (1) As of March 31, 2020, except share count as of June 2, 2020. (2) For definitions and reconciliations of net operating income (NOI) and Adjusted EBITDAre and for the definition and reconciliation of AFFO, refer to

  • ur earnings press release dated May 7, 2020.

Q1 2020 Balance Sheet Highlights1 FY2019 P&L Highlights2

(in thousands, except share counts) (in thousands, except per share metrics)

Total Real Estate (at cost) 1,100,664 $ Total Revenues 53,564 $ Total Real Estate (net) 1,073,458 $ NOI 45,667 $ Cash 14,994 $ Adjusted EBITDAre 36,444 $ Debt 511,283 $ Diluted Net Income Available to Common Series A Preferred Equity 117,877 $ Stockholders, Per Share 0.04 $ Series B Participating Preferred Equity 141,885 $ Fully Diluted AFFO/Share 0.13 $ Common Shares 29,596,208 Common OP Units 1,903,792 Total Fully Diluted Shares 31,500,000

slide-6
SLIDE 6

6

Company Overview

Disposition Activity

( $ in thousands)

Gross Sales Proceeds Depreciation Net Book Value1 Gain Gain % 2018 $31,941 $138 $28,464 $3,477 12.2% 2019 $35,502 $455 $27,403 $8,099 29.6% 2020Q1 $0 $0 $0 $0 0.0% 2020Q22 $7,844 $429 $6,843 $1,001 14.6% $75,287 $1,022 $62,710 $12,577 20.1%

____________________ (1) Total disposed assets minus total related liabilities and transaction expenses. (2) As of June 2, 2020.

slide-7
SLIDE 7

§ So far, the direct impact of the COVID-19 pandemic on the company’s business and operations has been limited. § The pandemic has significantly affected sectors of the U.S. agricultural industry to which we have limited or no direct exposure, such as fresh food production marketed to the hospitality industry, and meat packing. § We expect slower-moving ripples to potentially affect sectors of the agricultural industry in which we are invested:

  • Lower gasoline demand has affected demand for ethanol and therefore corn;
  • Labor availability and export logistics disruptions may affect specialty crops prices and our

tenants’ ability to effectively harvest and deliver product;

  • Disruptions in the meat packing industry due to worker health concerns may affect herd and

flock sizes and ultimately feed demand. § In the long term, we do not expect COVID-19 to materially affect global demand for food, feed, fuel and fiber, and therefore farmland values. 7

Company Overview

COVID-19 Update

slide-8
SLIDE 8

Background § On July 11, 2018, a short seller using the pseudonym “Rota Fortunae” and his co-conspirators launched a “short and distort” attack on FPI by posting false and misleading statements on SeekingAlpha.com. § As a result of the attack, the stock fell nearly 40% that day and remained depressed for some time, despite FPI’s detailed rebuttal of the allegations. § For weeks leading up to the posting, investors accumulated short positions, including short-dated FPI put

  • ptions, which they cashed in through profitable trades timed to capitalize on the panic selling on the day of

the false and misleading posting. Farmland Partners Inc. v. Rota Fortunae, et al. § Shortly after the posting, FPI filed a complaint against Rota Fortunae and his co-conspirators, who have remained so far anonymous. § In rulings last month the Court ordered that Rota Fortunae and his co-conspirators could no longer remain anonymous and recognized the profit motive behind their actions. § FPI intends to continue to pursue this case to recover damages for the harm caused to the shareholders and the company. Class Action Lawsuit § As a result of Rota Fortunae’s posting and the associated share price decline, a shareholder class action lawsuit was filed against FPI relying on the posting’s false and misleading allegations. § FPI is vigorously defending itself as the lawsuit is meritless and frivolous.

8

Company Overview

Litigation Update