Farmland Partners: Reduced Debt And High Resilience Amid Uncertainty

Kennedy Njagi
68 Followers
(9min)

Summary

  • I rate Farmland Partners a Buy due to its unique agricultural portfolio, stable leasing model, and multiple growth catalysts, with a $14–$18 target.
  • FPI's refinancing in late 2024 at 5.77% will eliminate floating exposure, saving $10.9 Mn annually and enhancing earnings predictability.
  • FPI's diversified crop mix and strategic location in top production regions reduce risk and yield above-average rents, strengthening its market position.

Corn field-Barley

Muriel de Seze/DigitalVision via Getty Images

Investment Thesis

Farmland Partners (NYSE:FPI) appears undervalued given its unique agricultural portfolio, improving fundamentals, and multiple growth catalysts. FPI's leasing model is stable and provides cash flows that will benefit from both rising farm yields

This article was written by

68 Followers
At Henriot Capital, we live by the principle that simplicity and common sense drive success. I’m passionate about building a hedge fund with a clear purpose, disciplined focus, and consistent alpha. Our approach is fully quant-driven—our model gives us the tickers, and we act on its recommendations without human interference. We live by the motto "invest first, investigate later," meaning we buy what the model suggests and conduct further research afterward. We discourage human fingerprints in stock selection, ensuring that our decisions remain driven by data and not individual bias.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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