Farmland Partners Q3 revenue falls 13% on asset impairments

Overview

• US farmland REIT's Q3 operating revenue fell 13% yr/yr amid asset impairments

• Adjusted FFO for Q3 turned negative

• Company repurchased 1.7 mln shares under its share buyback program

Outlook

• Company lowers 2026 AFFO per share guidance due to credit loss reserves and litigation risk

Result Drivers

• ASSET IMPAIRMENTS - Co wrote down asset values in California due to macroeconomic factors, resulting in $12 mln in impairments

• CREDIT AND LITIGATION COSTS - Qtr's financials were affected by negative news in credit and litigation, per CEO Luca Fabbri

• CALIFORNIA PROPERTY SALES - Co continued strategy to reduce California exposure, completing a property sale for $1 mln and recognizing a small loss

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Farmland Partners Inc is $12.50, about 21.1% above its October 27 closing price of $10.32

• The stock recently traded at 50 times the next 12-month earnings vs. a P/E of 51 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)