Farmland Partners Inc. · NYSE:FPI
Farmland Partners — Investor Presentation (May 2014)
13 slides from Farmland Partners's investor presentation, May 30, 2014
Slide 1: June 2014 Investor Presentation
June 2014 Investor Presentation
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 _____________________ Sources: OECD, World Bank, FAO, U.S. Geological Survey
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% _________________ S
Slide 6: Average Annual Returns and Standard Deviation: Farmland vs. Select Asset Classes
Attractive Investment Characteristics Average Annual Returns and Standard Deviation : Farmland vs. Select Asset Classes _____________________ Source: NCREIF (2013). Source: Bloomberg. Annual returns of the MCSI US REIT INDEX (RMS) Source: Bloomberg. S&P 500 returns include dividends Source: The BofA
Slide 7: Attractive Investment Characteristics: Global Fundamentals and Opportunity
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: Current Yie
Slide 8: Sustainable Rents with Room to Grow
Sustainable Rents with Room to Grow Farmland rents remain in line with or below long term averages on several key metrics: Vs. Crop Value Vs. Farm Value Vs. Overall Farm Profitability Non-Rent Cash Costs US Corn Farmer Economics US Cropland Rent-to-Value _____________________ Source: USDA ERS, Commo
Slide 9: Our Focus on Primary Row Crops
$16.6 $93.3 $14.7 $19.0 Our Focus on Primary Row Crops 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 trend
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 Highly efficient aggregator of primarily mid-sized farms, not always competing directly with
Slide 11: Acquisition Criteria & Process
Acquisition Criteria & Process Currently evaluating more than 10 properties representing about 20,000 acres and approximately $100 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 pu
Slide 12: Executing Our Strategy
11 Executing Our Strategy Key Metric At IPO Pro Forma for 4/21 Acquisition(4) Pro Forma for 5/29 Acquisition(5) Total Acres 7,323 10,494 22,994 Implied Cap Rate(1): - at market stock price(2) - at IPO stock price(3) 3.37% 3.37% 3.65% 3.50% 4.12% 3.87% Total Number of Tenants 4 5 11 % of Acres Rented
Slide 13: High Quality Farmland Portfolio
12 (1) After giving effect to the expected acquisition of Hudye Farms U.S., Inc. (2) Based on management’s estimates, including grain storage facilities. (3) Excluding grain storage facilities. High Quality Farmland Portfolio(1) 22,994 acres located in three states in the U.S. heartland States Acres