Earnings

Farmland Partners Cuts 2026 AFFO Guidance After California Write-Downs

The Tip Desk · November 9, 2026 · 3 min read

The farmland REIT posted a $15.5 million net loss, or $0.36 a share, after $12.0 million of California impairments and a $2.3 million credit-loss reserve.

Farmland Partners Inc. (FPI) swung to a net loss of $15.5 million, or $0.36 a share available to common stockholders, in the quarter ended September 30, 2026, after writing down California asset values and recording a credit-loss reserve, and it cut its 2026 AFFO-per-share guidance.

The internally managed farmland REIT said the loss compared with net income of $0.5 million, or $0.00 a share, a year earlier. Impairment of assets totaled $12.0 million, versus $1.0 million in the year-ago quarter. AFFO was ($2.1) million, or ($0.05) a share, compared with $2.9 million, or $0.07 a share, a year earlier.

President and Chief Executive Officer Luca Fabbri said the core of the portfolio continued to perform strongly, but that the quarter’s financials were dominated by isolated negative news in credit, litigation, and non-core asset values. The company said it continued to pursue its strategy of divesting California properties at fair market values.

Total operating revenues were $9.8 million, down 13.1% from $11.3 million a year earlier. Rental income was $5.6 million, crop sales $1.5 million, and other revenue $2.6 million. Net operating income fell 18.0% to $6.6 million from $8.0 million a year earlier. Adjusted EBITDAre dropped 81.3% to $1.1 million from $5.7 million.

The provision for credit loss reserve was $2.3 million, versus a $49 thousand recovery a year earlier. Legal and accounting expense rose to $2.1 million from $808 thousand. Interest expense increased to $3.2 million from $2.3 million a year earlier.

Total debt outstanding was approximately $239.8 million at September 30, 2026, compared with approximately $161.6 million at December 31, 2025. The company used approximately $68.2 million of debt in February 2026 to redeem all outstanding Series A preferred units. Liquidity was $115.3 million, consisting of $7.9 million in cash and $107.4 million in undrawn availability under credit facilities. Estimated debt to enterprise value was approximately 34%.

In the nine months ended September 30, 2026, the company completed no acquisitions. It sold three properties for approximately $17.4 million in aggregate consideration and recognized an aggregate net gain on sale of $3.3 million, including one California property for about $1.0 million and a loss on sale of less than $0.1 million.

The company repurchased 1,652,147 shares at a weighted average price of $10.32 a share. As of October 23, 2026, it had 42,271,225 shares outstanding on a fully diluted basis. Fabbri said the company remained a believer in the unrealized value of its portfolio and executed significant share repurchases.

In October 2026, a Texas Court of Appeals reversed a trial court’s dismissal of the company’s claims against First Sabrepoint Capital Management, LP and related defendants, holding that FPI may pursue the majority of those claims. A Louisiana appellate court affirmed an award of approximately $3.5 million in damages, including pre-judgment interest and court costs, to a group of former tenants in a breach-of-contract claim. FPI said it disagrees with the Louisiana court of appeals and intends to further appeal.

The board declared a quarterly cash dividend of $0.09 a share of common stock and Class A Common OP unit, payable January 15, 2027. That rate matches the annualized $0.36 dividend the company raised 50% in February 2026.

2026 AFFO-per-share earnings guidance decreased compared with the prior quarter. The second-quarter release had raised the low end of the range to $0.31 from $0.30, with the top end remaining at $0.35.

As of September 30, 2026, the company owned approximately 70,000 acres of farmland in 11 states, including Arkansas, California, Colorado, Illinois, Indiana, Louisiana, Missouri, Nebraska, South Carolina, Texas and West Virginia, plus land and buildings for four Ohio agriculture equipment dealerships leased to Ag Pro under the John Deere brand.

More on FPI

September 28, 2026 QBook Stronger demand supports expansion as pricing diverges

Farmland Partners Inc. — all coverage and financials