Farmland Partners Inc. · NYSE:FPI
Farmland Partners — Investor Presentation (September 2015)
13 slides from Farmland Partners's investor presentation, Sep 21, 2015
Slide 1: Company Overview September 2015
Company Overview September 2015
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: Company Overview – Growth Story
Company Overview – Growth Story At the time of the IPO (April 2014), Farmland Partners Inc. (the “Company”) owned 7,323 acres and, as of September 18, owned or had under contract a total of 72,423 acres1 located in the following regions: Corn Belt: 10,281 acres1 Plains: 21,946 acres Delta: 16,691 ac
Slide 4: Portfolio Growth: Acres and Value
Portfolio Growth Portfolio Growth: Acres and Value ($ in millions) 1 Total Acres Portfolio Value 80,000 $400.0 70,000 $350.0 60,000 $300.0 50,000 $250.0 40,000 $200.0 30,000 $150.0 20,000 $100.0 10,000 $50.0 0 $0.0 9/18/15 2 IPO 2Q14 3Q14 4Q14 1Q15 2Q15 (1)Sum of implied purchase price of IPO portfo
Slide 5: Management Overview
Management Overview Members of management have a long history of involvement in farmland acquisitions and management Paul Pittman, Executive Chairman, President and Chief Executive Officer Paul grew up in a farm family and has been buying and operating farms on his own account since 1999. In additio
Slide 6: Powerful Long-Term Dynamics: Global Supply & Demand
Powerful Long-Term Dynamics Global Supply & Demand 99 million acres of urban conversion (2030) >38% population growth in 2050 > 400% in developing world GDP growth in 2060 Continued global water depletion Nearly 30% more in developing world meat consumption per capita in 2030 Declining rates of new
Slide 7: 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 Farmland Cumulative
Slide 8: Attractive Investment Characteristics: Outperformance vs. 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 16.2% 2003 2004 2005 2006
Slide 9: Attractive Investment Characteristics: Total Returns Story
Attractive Investment Characteristics Price Appreciation + Current Yields = Powerful Total Returns Story Average Annual Returns and Standard Deviation: Farmland vs. Select Asset Classes (1995 – 2014) Annualized Returns Standard Deviation 25.0% 20.0% 15.0% 10.0% 6.4% 5.8% 5.0% Farmland (1) Apartments
Slide 10: Attractive Investment Characteristics: Capital Markets Opportunity
Attractive Investment Characteristics Capital Markets Opportunity Global Fundamentals Operating Environment Vs. Real Estate Alternatives: Vs. Commodity Alternatives: Near-zero Vacancy Up-front Rent Little or no Maintenance Capex or Property Taxes Supply Constraints No Obsolescence No Economic Deprec
Slide 11: Case Study: South Carolina Farm Improvements
Case Study: South Carolina Farm Improvements In December of 2014, the Company closed on a $28 million acquisition in South Carolina totaling over 6,000 acres and consisting of seven properties (collectively, the “Farms”) Company management worked with the farmer to design an improvement plan to incr
Slide 12: Farmland Price Trends: Perception vs. Reality
Farmland Price Trends: Perception vs. Reality Contrary to speculative negative reports by the press, farmland values are not seeing significant declines in most of the United States As reported by the USDA, the United States farm real estate value increased 2.4% from 2014 values1 Arkansas: +7.0% Col
Slide 13: Land Value Increases
Land Value Increases U.S. real farmland prices have been steadily rising since the early 1990s, with more rapid increases occurring over the past several years U.S. Farmland Average Price per Acre (in 2009 dollars) (1990 – 2015) $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 1990 1995 2000 2005 2010 201
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