Farmland Partners posts $15.512 million loss as operating income falls 18%
Key Facts
Farmland Partners reported on October 28 results for the quarter ended September 30, 2026, posting a net loss of $15.512 million, compared with net income of $491 thousand in the same period of 2025. The company said write-downs of California assets, in response to macroeconomic factors affecting real estate, contributed to the loss. Its chief executive also said results were affected by negative news concerning credit, litigation and non-core asset values. The announcement came after the market close on October 28. The following day, the stock fell to $8.76 during trading at 9:49 a.m., down 13.48% from the previous close, within a daily range of $8.56 to $9.56.
Third-quarter operating revenues fell to $9.777 million from $11.251 million a year earlier, a decline of 13.1%. Net operating income decreased to $6.560 million from $8.000 million, down 18%. Real estate adjusted EBITDA fell to $1.073 million from $5.738 million, a decline of 81.3%. Asset impairment losses totaled $12.043 million, compared with $1 million in the third quarter of 2025. The figures reflect a broad decline in operating metrics alongside the impact of recorded asset-value write-downs.
Adjusted AFFO loss was $2.089 million, or $0.05 per share, compared with AFFO of $2.887 million, or $0.07 per share, in the same period last year. For the first nine months of 2026, operating revenues fell 7.0% to $29.276 million from $31.463 million. AFFO for the same period dropped 74.0% to $1.680 million from $6.468 million. The company lowered its 2026 AFFO-per-share guidance compared with the previous quarter. The headline of its statement cited credit loss reserves and litigation risks as reasons for revising its guidance.
Outstanding debt was $239.8 million on September 30, 2026, compared with $161.6 million on December 31, 2025, while available liquidity was $115.3 million. During the quarter, the company repurchased 1,652,147 shares at a weighted average price of $10.32 per share. It also said it completed the sale of one California property for about $1 million and recorded a sale loss of less than $0.1 million. The company said the sale was part of its long-term plan to reduce its exposure to the state. The California asset write-downs coincided with the company's continued sale of properties there and share repurchases.
On litigation developments, the company said a Texas appeals court reopened most of its claims against Sabrepoint in October 2026. In Louisiana, an appeals court upheld damages of about $3.5 million for a group of former tenants. Farmland Partners said it intends to appeal the Louisiana ruling. The company included litigation risks among the factors accompanying its revision of 2026 AFFO guidance. It was scheduled to hold a conference call to discuss the results and provide a company update on October 29, 2026, at 11:00 a.m. Eastern Time.
The board had approved a quarterly cash distribution of $0.09 per share on October 27. The distribution is scheduled to be paid on January 15, 2027, to shareholders of record on January 4, 2027. The announcement comes as the company recorded a net loss and a decline in AFFO, an operating metric tracked by real estate companies. The company has set the payment date and record date for its next distribution while lowering its AFFO guidance for fiscal 2026. The announced payment date remains January 15, 2027.