FPI - Farmland Partners: Reaching NAV Unlikely Outside Of A Sale
2024-07-11 04:43:24 ET
Summary
- We had rated Farmland Partners Inc. neutral in April.
- The stock reported its Q1-2024 results and also announced the departure of its CFO.
- We go over these events and update our thesis.
We maintained our neutral rating on Farmland Partners Inc. ( FPI ) back in April. Using asset sales to deleverage, buying back shares, and cutting costs, the company was taking the right steps to combat the market conditions. However, investors were pricing in FPI below the net asset value and consequently the growth that equity investors gravitate towards was missing in FPI. Absent an even bigger discount to NAV, risk-free alternatives like T-Bills made better investments in our opinion, and we stayed out....
Farmland Partners: Reaching NAV Unlikely Outside Of A Sale