Farmland Partners Boosts Dividend 50% on Strong Operational Cash Flow

DENVER, CO – February 18, 2026 – Farmland Partners Inc. (NYSE: FPI) has signaled strong confidence in its operational health and future outlook, announcing a substantial 50% increase to its quarterly dividend following a year of strategic transformation. The move comes as the real estate investment trust reported its full-year 2025 results, which revealed a complex picture of robust operational cash flow growth and aggressive balance sheet improvements set against a year-over-year decline in GAAP net income.

For 2025, the company posted a 34.5% increase in Adjusted Funds From Operations (AFFO) per share, a key metric for REIT performance, while simultaneously reducing total debt by over $43 million and executing a plan to eliminate a dilutive class of preferred equity. These actions culminated in the board's decision to raise the annualized dividend to $0.36 per share, rewarding shareholders who also received a special one-time dividend of $0.20 per share in January 2026.

Beyond the Bottom Line: A Tale of Two Metrics

While the dividend hike points to internal confidence, FPI’s headline financial numbers tell a nuanced story. The company recorded net income of $32.2 million, or $0.65 per share, for the year ended December 31, 2025. This represents a nearly 48% decrease from the $61.5 million, or $1.19 per share, reported for the same period in 2024.

This decline in GAAP net income was driven largely by non-cash accounting measures and the variable nature of asset sales. Specifically, FPI recorded a significant $17.8 million in asset impairment charges in 2025, a sharp increase from just $790,000 in the prior year. Additionally, while the company realized a substantial $34.9 million net gain on asset sales, this was lower than the $54.1 million gain recognized in 2024, which stemmed from a larger volume of dispositions.

However, investors and analysts focused on the REIT sector often look past net income to AFFO, which measures the cash generated by core operations. On this front, FPI demonstrated significant strength. AFFO grew 27% to $17.9 million in 2025, translating to $0.39 per share—a 34.5% jump from the $0.29 per share in 2024 and well above the company's own guidance.

Luca Fabbri, President and Chief Executive Officer, highlighted this operational success in his comments. “We delivered a very strong financial performance in 2025, producing compelling AFFO per share,” he stated, emphasizing that the results reflect the “strength and resilience of our portfolio and the quality of our tenants.”

A Strategic Pruning of the Portfolio

The year’s results were heavily influenced by FPI's active portfolio management strategy. The company completed dispositions of 60 properties for aggregate consideration of $90.2 million. According to Fabbri, this was a deliberate move aimed at “pruning lesser performing and riskier assets at strong sale prices.” The ability to generate a $34.9 million gain on these sales underscores the continued strength in the North American farmland market, where high-quality agricultural real estate remains a sought-after asset class.

In a move that streamlined both its portfolio and its capital structure, 23 of these property sales were used to redeem and cancel 31,000 Series A preferred units. Concurrently, FPI maintained a disciplined acquisition strategy, purchasing six properties in the high-value Corn Belt region for a total of $7.3 million.

Further honing its focus, the company sold its auction, brokerage, and third-party management business, Murray Wise Associates, LLC (MWA), for a $1.0 million gain. This divestiture marks a strategic exit from ancillary services to concentrate on its core business of owning and managing high-quality farmland.

Fortifying the Foundation for Future Growth

Perhaps the most significant long-term development in 2025 was FPI’s aggressive deleveraging and simplification of its balance sheet. The company decreased its total indebtedness by $43.0 million, bringing its outstanding debt down to $161.6 million. This reduced the company’s debt-to-enterprise value to a conservative 25.0% by year-end, enhancing its financial stability.

This newfound financial strength was immediately put to use. Subsequent to the year’s end, FPI redeemed all remaining 68,000 Series A preferred units for $68.2 million in cash. Fabbri noted this move was critical to “fortifying and simplifying the Company’s balance sheet, eliminating the risk of a significant issuance of common shares at a dilutive stock price.” By removing this layer of preferred equity, FPI has created a cleaner capital structure, reduced potential shareholder dilution, and increased its flexibility for future growth initiatives.

These strategic financial moves, combined with the repurchase of over 3.4 million shares of its common stock, underscore a comprehensive capital allocation plan designed to create long-term value. Despite acknowledging “ongoing crop pricing pressures” in the broader agricultural economy, Fabbri expressed confidence in the company's position. “Looking ahead to 2026, we believe we are well positioned to continue delivering attractive risk-adjusted total returns through disciplined capital management, high-quality assets, and favorable long-term agricultural trends.”