Farmland Partners Inc. · NYSE:FPI
Farmland Partners — Baird Growth Stock Conference 2014
14 slides from Farmland Partners's conference presentation, May 8, 2014
Slide 1: Baird Growth Stock Conference Presentation May 8, 2014
Baird Growth Stock Conference Presentation May 8, 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the statements contained in this presentation constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends
Slide 3: Powerful Long-Term Global Supply & Demand Dynamics
Powerful Long-Term Global Supply & Demand Dynamics 45.5% Projected Increase in Global Grain Demand by 2050 Nearly 30% more in developing world meat consumption per capita in 2030 > 400% in developing world GDP growth in 2060 >38% population growth in 2050 4.3% Projected Increase in Global Cropland S
Slide 4: Attractive Investment Characteristics: Farmland vs. Corn & Soybeans
Attractive Investment Characteristics . Yield and crop optionality differentiate farmland from individual agricultural commodity investments . Since 1991, farmland has offered consistently positive annual returns and lower volatility, leading to significant cumulative outperformance (1) ____________
Slide 5: Attractive Investment Characteristics: Farmland Outperforms Other Real Estate
Attractive Investment Characteristics . Farmland properties have regularly outperformed other real estate asset classes . Since NCREIF began tracking farmland values in 1992, there has not been a year with negative total returns . Since 2003, farmland has yielded total returns of 15.8% _____________
Slide 6: Attractive Investment Characteristics: Average Annual Returns and Standard Deviation
Attractive Investment Characteristics Average Annual Returns and Standard Deviation : Farmland vs. Select Asset Classes _____________________ (1) Source: NCREIF (2013). (2) Source: Bloomberg. Annual returns of the MCSI US REIT INDEX (RMS) (3) Source: Bloomberg. S&P 500 returns include dividends (4)
Slide 7: Attractive Investment Characteristics: Real Estate and Commodity Alternatives
Attractive Investment Characteristics Global Fundamentals Operating Environment Capital Markets Opportunity Vs. Real Estate Alternatives: .Near-zero Vacancy .Up-front Rent .Little or no Maintenance Capex .Supply Constraints .No Obsolescence .No Economic Depreciation Vs. Commodity Alternatives: .Curr
Slide 8: Sustainable Rents with Room to Grow
Sustainable Rents with Room to Grow Corn Avg. 27% Soybean Avg. 39% 0% 10% 20% 30% 40% 50% 60% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Corn Soybeans . Farmland rents remain in line with or below long term averages on several key metrics: . Vs. Crop Value . Vs. Farm Value . Vs. Overall Farm
Slide 9: Our Focus on Primary Row Crops
Our Focus on Primary Row Crops $16.6 $93.3 $14.7 $19.0 . We focus on primary row crops because we believe this segment of the market generates the most attractive returns with a lower risk profile: . Essential components of the global food supply . Direct beneficiary of long-term global and economic
Slide 10: Only Publicly Traded Company with a Focus on Primary Row Crops
Only Publicly Traded Company with a Focus on Primary Row Crops Our growth strategy provides multiple avenues to support and grow the bottom line with low cost of capital and high levels of operating leverage First-Mover Advantage . Highly efficient aggregator of primarily mid-sized farms, not always
Slide 11: Acquisition Criteria & Process
Acquisition Criteria & Process . Currently evaluating 15 properties representing 43,000 acres and approximately $151 million of estimated market value . We look for good land and good tenants . Improve farms and increase rents through improvements in drainage, irrigation, storage, input purchasing a
Slide 12: High-Quality Portfolio of Farmland
High-Quality Portfolio of Farmland . 7,323 Acres located primarily in the “bread basket” heartland of the U.S. . 85.2% in Central Illinois . 11.2% in Eastern Nebraska . 3.6% in Colorado . Highly productive land . Access to abundant and replenishing water . Multiple routes for grain export and transi
Slide 13: Contribution Value Analysis: Per Acre vs. Private and Public Comps
Contribution Value Analysis: Per Acre vs. Private and Public Comps $8,238 $9,880 $11,075 $13,225 $13,468 $24,406 $36,282 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 FPI Pro Forma for Colo. Acquisition Central IL "Good" FPI Post-IPO Eastern NE Central IL "Excellent" LAND LMNR Po
Slide 14: Acquisition Case Study
Acquisition Case Study Green Shade Represents FPI States at IPO Acquisition Date: Announced April 21 (Expected close on or before May 30) Location: Eastern Colorado (Burlington) Key Acquisition Metrics • 3,171 Acres ($2,409 per acre) • 4.81% Economic Capitalization Rate Key Lease Characteristics • M
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