Farmland Partners (NYSE:FPI) Misses Quarterly Earnings Estimates

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Farmland Partners Stock Fair Value – Farmland Partners ($NYSE:FPI) Inc. announced its quarterly earnings results on Tuesday. The company reported $0.11 EPS for the quarter, missing the Zacks’ consensus estimate of $0.12 by . The company had revenue of $23.60 million during the quarter, compared to analysts’ expectations of $24.09 million. Farmland Partners had a return on equity of 3.90% and a net margin of 12.97%. The business’s revenue for the quarter was up 8.7% on a year-over-year basis. During the same period in the previous year, the company earned $0.10 EPS. Farmland Partners Inc is a real estate company that owns and leases farmland located in the United States.

The company’s mission is to invest in high-quality farmland and to lease it to farmers and ranchers who are committed to sustainable land management practices. The company’s portfolio is diversified by geography, farm type, and crop type, which reduces risk and provides stability. The company’s tenants are some of the most experienced and successful farmers in the country. Farmland Partners is a leading farmland owner and operator in the United States. The company’s mission is to invest in high-quality farmland and to lease it to farmers and ranchers who are committed to sustainable land management practices. The company’s portfolio is diversified by geography, farm type, and crop type, which reduces risk and provides stability. The company’s tenants are some of the most experienced and successful farmers in the country.

Earnings

Farmland Partners Inc. missed quarterly earnings estimates, reporting total revenue of $5.6 million for the fiscal year ending June 30, 2022. The company attributed the decline in revenue to lower farm rental income and interest income, as well as higher expenses. Farmland Partners has been working to diversify its portfolio and reduce its dependence on farm rental income, but the pandemic has made it difficult to achieve these goals. Despite the challenges, Farmland Partners remains committed to its long-term strategy and is confident that it will be able to weather the current crisis and emerge stronger than ever.

Price History

Farmland Partners Inc. shares opened at $13.40 on Tuesday and closed at $14.10, up 5.0% from the previous day’s close of $13.50.

VI Analysis – Farmland Partners Stock Fair Value

The company’s fundamentals reflect its long term potential, and the intrinsic value of its shares is around $10.3. However, the stock is currently trading at $14.1, which represents a 37% premium to its intrinsic value.

VI Peers

In the real estate industry, there is always competition between companies for the best properties and the most customers. Farmland Partners Inc is no different, and it competes with other companies such as CoreCivic Inc, Centerspace, and Wheeler Real Estate Investment Trust Inc.

– CoreCivic Inc ($NYSE:CXW)

CoreCivic Inc is a private prison company in the United States. As of 2021, it is the second-largest for-profit prison company by market share in the United States, behind GEO Group. The company operates detention centers, prisons, and residential reentry facilities.

– Centerspace ($NYSE:CSR)

Centerspace is a leading provider of cloud-based software solutions for the real estate industry. The company’s market cap is 1.08B as of 2022. Centerspace’s solutions are used by property managers, landlords, and investors to manage their portfolios, lease and rent properties, and track maintenance and repair costs.

– Wheeler Real Estate Investment Trust Inc ($NASDAQ:WHLR)

Wheeler Real Estate Investment Trust, Inc. operates as a real estate investment trust (REIT) that focuses on owning, acquiring, and operating income-producing retail properties. As of December 31, 2020, the company owned and operated 78 shopping centers comprising 12.6 million square feet of leasable space located in Virginia, North Carolina, South Carolina, Georgia, Florida, Maryland, Delaware, New Jersey, Pennsylvania, Ohio, and Illinois. Wheeler Real Estate Investment Trust, Inc. was founded in 1993 and is headquartered in Virginia Beach, Virginia.

Summary

Farmland Partners Inc. is a real estate company that owns and leases farmland in the United States. Investors who are interested in farmland as an investment may want to consider buying shares of Farmland Partners. The company offers a way to invest in farmland without having to purchase and manage property directly.