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Executive Summary

Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate.


Snowflake Analysis

Imperfect balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Farmland Partners's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0FA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.1%

0FA

-3.3%

DE REITs

0.05%

DE Market


1 Year Return

6.7%

0FA

8.1%

DE REITs

3.4%

DE Market

Return vs Industry: 0FA underperformed the German REITs industry which returned 8.1% over the past year.

Return vs Market: 0FA exceeded the German Market which returned 3.4% over the past year.


Shareholder returns

0FAIndustryMarket
7 Day6.1%-3.3%0.05%
30 Day2.5%-3.9%5.5%
90 Day13.0%6.0%19.9%
1 Year10.1%6.7%8.7%8.1%5.7%3.4%
3 Year-7.4%-18.3%-2.9%-15.8%3.4%-4.7%
5 Yearn/a2.7%-18.1%10.4%-4.5%

Price Volatility Vs. Market

How volatile is Farmland Partners's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Farmland Partners undervalued compared to its fair value and its price relative to the market?

121.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 0FA (€6.1) is trading above our estimate of fair value (€5.44)

Significantly Below Fair Value: 0FA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 0FA is poor value based on its PE Ratio (121.9x) compared to the DE REITs industry average (8.3x).

PE vs Market: 0FA is poor value based on its PE Ratio (121.9x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: 0FA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 0FA is good value based on its PB Ratio (0.7x) compared to the DE REITs industry average (1.5x).


Next Steps

Future Growth

How is Farmland Partners forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-48.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0FA's earnings are forecast to decline over the next 3 years (-48.8% per year).

Earnings vs Market: 0FA's earnings are forecast to decline over the next 3 years (-48.8% per year).

High Growth Earnings: 0FA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 0FA's revenue (0.8% per year) is forecast to grow slower than the German market (6% per year).

High Growth Revenue: 0FA's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 0FA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Farmland Partners performed over the past 5 years?

22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0FA has a large one-off gain of $7.3M impacting its March 31 2020 financial results.

Growing Profit Margin: 0FA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 0FA has become profitable over the past 5 years, growing earnings by 22.1% per year.

Accelerating Growth: 0FA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 0FA has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (25.3%).


Return on Equity

High ROE: 0FA's Return on Equity (2.7%) is considered low.


Next Steps

Financial Health

How is Farmland Partners's financial position?


Financial Position Analysis

Short Term Liabilities: 0FA's short term assets ($25.0M) exceed its short term liabilities ($15.1M).

Long Term Liabilities: 0FA's short term assets ($25.0M) do not cover its long term liabilities ($521.6M).


Debt to Equity History and Analysis

Debt Level: 0FA's debt to equity ratio (90.9%) is considered high.

Reducing Debt: 0FA's debt to equity ratio has reduced from 130.5% to 90.9% over the past 5 years.

Debt Coverage: 0FA's debt is not well covered by operating cash flow (3.3%).

Interest Coverage: 0FA's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Farmland Partners's current dividend yield, its reliability and sustainability?

2.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0FA's dividend (2.84%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: 0FA's dividend (2.84%) is low compared to the top 25% of dividend payers in the German market (3.78%).


Stability and Growth of Payments

Stable Dividend: 0FA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 0FA has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (106.2%), 0FA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0FA's dividends in 3 years are forecast to be thoroughly covered by earnings (1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average board tenure


CEO

Paul Pittman (58yo)

6.5yrs

Tenure

US$1,803,894

Compensation

Mr. Paul A. Pittman has served Executive Chairman and Chief Executive Officer of Farmland Partners Inc. since its formation in 2014 and its President since May 31, 2018. Mr. Pittman also served as Presiden ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD1.80M) is above average for companies of similar size in the German market ($USD735.88K).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Paul Pittman
Executive Chairman6.5yrsUS$1.80m8.29% $16.2m
John Good
Independent Director2.5yrsUS$57.68k0.062% $121.1k
Joseph Glauber
Independent Director5.42yrsUS$55.68k0.052% $101.4k
Christopher Downey
Lead Independent Director5.5yrsUS$68.93k0.27% $529.9k

5.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 0FA's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 0FA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Farmland Partners Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Farmland Partners Inc.
  • Ticker: 0FA
  • Exchange: BST
  • Founded: 2013
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: US$223.286m
  • Market Cap: US$184.052m
  • Listing Market Cap: US$195.912m
  • Shares outstanding: 31.45m
  • Website: https://www.farmlandpartners.com

Number of Employees


Location

  • Farmland Partners Inc.
  • 4600 South Syracuse Street
  • Suite 1450
  • Denver
  • Colorado
  • 80237
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FPINYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2014
0FABST (Boerse-Stuttgart)YesCommon StockDEEURApr 2014
FPI.PRBNYSE (New York Stock Exchange)6% PFD SER BUSUSDAug 2017

Biography

Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of the date of this release, the Company owns approximately 156,500 acres in 16 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota and Virginia. We have approximately 26 crop types and over 100 tenants. The Company elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ended December 31, 2014. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 21:44
End of Day Share Price2020/07/15 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.