Farmland Partners reported a third-quarter net loss after writing down California assets, while revenue and operating income also declined from a year earlier. The farmland owner said it had revised its guidance because of credit-loss reserves and litigation risk, and bought back about 1.65 million shares during the quarter.
The results also reflect FPI’s continuing effort to reduce its California exposure. The company said its broader portfolio continued to perform strongly, though the quarter’s financial results were affected by credit, litigation and asset-value issues.
Key details
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California write-downs drove the quarterly loss. FPI recorded $12.0 million of asset impairments in the three months ended September 30, contributing to a net loss of $15.5 million, or $0.36 per share available to common stockholders. A year earlier, it reported net income of $0.5 million, or approximately break-even per share, and $1.0 million of impairments.
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Operating results weakened. Third-quarter operating revenue fell 13.1% to $9.8 million, while net operating income declined 18.0% to $6.6 million. Adjusted EBITDAre, a company-reported operating measure, dropped 81.3% to $1.1 million.
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Adjusted funds from operations turned negative for the quarter. AFFO was a loss of $2.1 million, or $0.05 per share, compared with $2.9 million, or $0.07 per share, a year earlier. For the first nine months of 2026, AFFO totaled $1.7 million, down 74% from $6.5 million in the same period of 2025.
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Nine-month results were also lower. FPI recorded a net loss of $11.7 million, or $0.28 per share, compared with net income of $10.4 million, or $0.18 per share, in the first nine months of 2025. Revenue declined 7.0% to $29.3 million, net operating income slipped 3.2% to $22.3 million, and adjusted EBITDAre fell 31.5% to $10.9 million.
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The company revised its guidance. FPI attributed the change to credit-loss reserves and litigation risk. The release text provided here does not include the revised guidance figures.
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FPI continued to sell California property. It completed the sale of one California property for about $1.0 million, recognizing a loss of less than $100,000. The company said the sale was part of its longer-term plan to reduce its California holdings. It completed no property acquisitions during the first nine months of 2026.
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Share repurchases totaled about $17 million. FPI bought back 1,652,147 common shares at a weighted-average price of $10.32 per share. Chief Executive Luca Fabbri said the repurchases reflected the company’s confidence in the portfolio’s unrealized value.
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The company cited progress in litigation. Fabbri said FPI had reached a significant milestone in pursuing those responsible for what the company describes as a 2018 “short-and-distort” attack. The announcement did not specify the milestone.
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A solar lease contributed to reported results. AFFO and adjusted EBITDAre for the first nine months included about $0.5 million of income from a solar lease arrangement, compared with $1.0 million in the same period last year.
The quarter’s reported loss and negative AFFO contrast with positive AFFO for the first nine months. The impairment charge was a major factor in the quarterly net loss, while lower revenue and operating income show that operating measures also weakened. FPI planned to make supplemental information available before its investor call on October 29.