Investor Presentaiton
Non-GAAP Financial Measures
FARMLAND
PARTNERS
The Company considers the following non-GAAP measures as useful to investors as key supplemental measures of its performance: FFO, NOI, AFFO, EBITDAre
and Adjusted EBITDAre. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss as a measure of the
Company's operating performance. FFO, NOI, AFFO, EBITDAre and Adjusted EBITDAre, as calculated by the Company, may not be comparable to other
companies that do not define such terms exactly as the Company.
FFO
The Company calculates FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT
defines FFO as net income (loss) (calculated in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, plus real estate
related depreciation, depletion and amortization (excluding amortization of deferred financing costs), and after adjustments for unconsolidated partnerships and
joint ventures. Management presents FFO as a supplemental performance measure because it believes that FFO is beneficial to investors as a starting point in
measuring the Company's operational performance. Specifically, in excluding real estate related depreciation and amortization and gains and losses from sales of
depreciable operating properties, which do not relate to or are not indicative of operating performance, FFO provides a performance measure that, when
compared year over year, captures trends in occupancy rates, rental rates and operating costs. The Company also believes that, as a widely recognized measure of
the performance of REITS, FFO will be used by investors as a basis to compare the Company's operating performance with that of other REITs. However, other
equity REITs may not calculate FFO in accordance with the NAREIT definition as the Company does, and, accordingly, the Company's FFO may not be comparable
to such other REITS' FFO.
AFFO
The Company calculates AFFO by adjusting FFO to exclude the income and expenses that the Company believes are not reflective of the sustainability of the
Company's ongoing operating performance, including, but not limited to, real estate related acquisition and due diligence costs, stock-based compensation,
deferred impact of interest rate swap terminations, and distributions on the Company's Series A preferred units. For the avoidance of doubt, $5.7 million non-cash
redemption of Series B Participating Preferred Stock in Q4 2021 is not included in AFFO.
Changes in GAAP accounting and reporting rules that were put in effect after the establishment of NAREIT's definition of FFO in 1999 result in the inclusion of a
number of items in FFO that do not correlate with the sustainability of the Company's operating performance. Therefore, in addition to FFO, the Company
presents AFFO and AFFO per share, fully diluted, both of which are non-GAAP measures. Management considers AFFO a useful supplemental performance
metric for investors as it is more indicative of the Company's operational performance than FFO. AFFO is not intended to represent cash flow or liquidity for the
period and is only intended to provide an additional measure of the Company's operating performance. Even AFFO, however, does not properly capture the
timing of cash receipts, especially in connection with full-year rent payments under lease agreements entered into in connection with newly acquired farms.
Management considers AFFO per share, fully diluted to be a supplemental metric to GAAP earnings per share. AFFO per share, fully diluted provides additional
insight into how the Company's operating performance could be allocated to potential shares outstanding at a specific point in time. Management believes that
AFFO is a widely recognized measure of the operations of REITs and presenting AFFO will enable investors to assess the Company's performance in comparison to
other REITs. However, other REITs may use different methodologies for calculating AFFO and AFFO per share, fully diluted and, accordingly, the Company's AFFO
and AFFO per share, fully diluted may not always be comparable to AFFO and AFFO per share amounts calculated by other REITs. AFFO and AFFO per share, fully
diluted should not be considered as an alternative to net income (loss) or earnings per share (determined in accordance with GAAP) as an indication of financial
performance, or as an alternative to net income (loss) earnings per share (determined in accordance with GAAP) as a measure of the Company's liquidity, nor are
they indicative of funds available to fund the Company's cash needs, including its ability to make distributions.
FPI
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