Investor Presentaiton
Tenant Underwriting
How to Underwrite Credit Risk?
FPI's standard lease includes:
e
Lien interest in growing crops
Crop insurance as required
80%
Personal guarantees
60%
40%
•
50% to 100% of fixed farm rents are paid in advance
of planting season (generally Q1)
20%
•
Creates positive working capital cycle for
much of the year
0%
•
Unlikely that a farmer would default with
prepaid rent and growing crop
Low tenant turnover
.
FPI maintains long-term relationships with
tenants
FPI has a deep understanding of the business
as members of the team have been farmers
themselves
.
Low uncollected receivables and/or bad debt
expense
Farms
400
350
300
250
200
150
100
50
3/31/2017
6/30/2017
9/30/2017
FARMLAND
PARTNERS
Cash Receipts of Fixed Farm Rent
120%
2017
2020
2018
2021
Ratable
100%
2019
2022
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Low Tenant Turnover (Farm Leases)
12/31/2017
3/31/2018
6/30/2018
9/30/2018
12/31/2018
3/31/2019
6/30/2019
9/30/2019
No Change Change
12/31/2019
3/31/2020
6/30/2020
9/30/2020
12/31/2020
3/31/2021
3/31/2021
6/30/2021
9/30/2021
[202/09/6
12/31/2021
IZOZ/IS/ZI
10
10
3/31/2022
6/30/2022
9/30/2022
12/31/2022
FPI
LISTED
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