Farmland Partners Inc (FPI) 2023 Q2 法說會逐字稿

Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Farmland Partners, Inc. Second Quarter 2023 Earnings Conference Call.

早上好。我叫羅布，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Farmland Partners, Inc. 2023 年第二季度收益電話會議。

(Operator Instructions)

（操作員說明）

Luca Fabbri, President and CEO. You may begin your conference.

盧卡·法布里，總裁兼首席執行官。您可以開始您的會議了。

Thank you, Rob. Good morning, everyone, and welcome to Farmland Partners Second Quarter Earnings Conference Call and Webcast. It has been a busy quarter and frankly, busy first half of the year here for Farmland Partners. So I especially welcome the opportunity to -- for myself and the rest of the team to explain a little bit more and give a little bit more color about what we have been doing and what we are planning to do. And I appreciate your taking the time to join us for this call. I will now turn over the call to our General Counsel, Christine Garrison, for some customary preliminary remarks. Christine?

謝謝你，羅布。大家早上好，歡迎參加 Farmland Partners 第二季度收益電話會議和網絡廣播。這是一個忙碌的季度，坦率地說，對於 Farmland Partners 來說，今年上半年也很忙碌。因此，我特別歡迎有機會為我自己和團隊的其他成員提供更多解釋，並為我們一直在做的事情和計劃做的事情提供更多的色彩。我感謝您抽出時間參加我們的這次電話會議。現在，我將把電話轉給我們的總法律顧問克里斯汀·加里森 (Christine Garrison)，按照慣例進行一些初步評論。克里斯汀？

Thanks, Luca, and thank you to everyone on the call. The press release announcing our second quarter earnings was distributed after market closed yesterday. The supplemental package has been posted to the Investor Relations section of our website under the sub-header Events and Presentations. For those of you who listen to the recording of this presentation, we remind you that the remarks made herein are as of today, July 27, 2023, and will not be updated subsequent to this call.

謝謝盧卡，也謝謝參加電話會議的所有人。宣布我們第二季度收益的新聞稿是在昨天收市後發布的。補充包已發佈到我們網站的投資者關係部分的子標題“活動和演示”下。對於那些收聽本次演示錄音的人，我們提醒您，本文中的言論截至今天，即 2023 年 7 月 27 日，並且不會在本次電話會議後更新。

During this call, we will make forward-looking statements, including statements related to the future performance of our portfolio, our identified and potential acquisitions and dispositions, impact of acquisitions, dispositions and financing activities, business development opportunities as well as comments on our outlook for our business rents and the broader agricultural markets. We will also discuss certain non-GAAP financial measures including net operating income, FFO, adjusted FFO, EBITDAre and adjusted EBITDAre. Definitions of these non-GAAP measures as well as reconciliations to the most comparable GAAP measures are included in the company's press release announcing second quarter earnings, which is available on our website, farmlandpartners.com, and is furnished as an exhibit to our current report on Form 8-K dated July 26, 2023.

在本次電話會議中，我們將做出前瞻性聲明，包括與我們投資組合的未來業績、我們已確定的和潛在的收購和處置、收購、處置和融資活動的影響、業務發展機會以及對我們的前景的評論相關的聲明我們的商業租金和更廣泛的農業市場。我們還將討論某些非 GAAP 財務指標，包括淨營業收入、FFO、調整後的 FFO、EBITDAre 和調整後的 EBITDAre。這些非GAAP 衡量標準的定義以及與最具可比性GAAP 衡量標準的對賬均包含在公司宣布第二季度收益的新聞稿中，該新聞稿可在我們的網站farmlandpartners.com 上獲取，並作為我們當前報告的附件提供。日期為 2023 年 7 月 26 日的 8-K 表格。

Listeners are cautioned that these statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations and we advise listeners to review the risk factors discussed in our press release distributed yesterday and in documents we have filed with or furnished to the SEC. I would now like to turn the call to our Executive Chairman, Paul Pittman. Paul?

請聽眾注意，這些陳述存在一定的風險和不確定性，其中許多風險和不確定性難以預測，通常超出我們的控制範圍。這些風險和不確定性可能導致實際結果與我們當前的預期存在重大差異，我們建議聽眾查看我們昨天發布的新聞稿以及我們向 SEC 提交或提供的文件中討論的風險因素。我現在想把電話轉給我們的執行主席保羅·皮特曼。保羅？

Thank you, Christine. This was, frankly, a very good quarter and a very good half for the long-term value-oriented shareholder in our stock. We have significantly increased the value under those underlying shares through stock buybacks, very strong asset sales and the beginning of a gradual reduction of our debt loads. The market may not perceive this, but that value will come to all of us eventually.

謝謝你，克里斯汀。坦率地說，對於我們股票的長期價值導向型股東來說，這是一個非常好的季度和非常好的上半年。通過股票回購、非常強勁的資產出售以及開始逐步減少債務負擔，我們顯著增加了這些基礎股票的價值。市場可能不會意識到這一點，但這種價值最終會降臨到我們所有人身上。

As all of you know, I'm a large, large shareholder myself, and we are taking actions that are fundamentally arbitraging very high values for Farmland against a deeply discounted stock. We will continue to do that as long as it takes to get our shareholders rewarded. The farm economy remains quite strong. The -- our stock has performed pretty well since the last call. Asset values for farmland continue to rise. As we gradually trim things out of the portfolio, we are getting pretty strong gains on our farms. Please recognize that we are not selling our very best farms. We are selling farms where we are concerned of water challenges or market volatility challenges or they are outliers for some reason in our portfolio the appreciation we have in the parts of the portfolio, we are not selling are even stronger than those that we are selling.

眾所周知，我自己就是一個大股東，我們正在採取的行動從根本上來說是用大幅折扣的股票來套利 Farmland 的極高價值。只要能夠為我們的股東帶來回報，我們就會繼續這樣做。農業經濟仍然相當強勁。自上次電話會議以來，我們的股票表現相當不錯。農田資產價值持續上升。隨著我們逐漸從投資組合中削減一些東西，我們的農場獲得了相當大的收益。請注意，我們不會出售我們最好的農場。我們正在出售那些我們擔心水挑戰或市場波動挑戰的農場，或者由於某種原因它們在我們的投資組合中屬於異常值，我們不出售的投資組合部分的升值甚至比我們正在出售的部分還要強勁。

We want to gradually concentrate this portfolio in ways that lessen water risk and lessen volatility of earnings and simplify the management of the business. As I said in the last call, Farmland values -- Farmland as an investment class, you really need to think about how is value created and value is created 2/3 from appreciation and approximately 1/3 from current yield. We went and did IRR calculations on all of the assets that I have bought and sold over the 25-plus-year career I've had, that would be roughly where the value creation comes from. Appreciation is 2/3, current yield is 1/3. For whatever reason, public market is in -- partly because I think we're a REIT is incredibly focused on the sort of scorecard on quarterly AFFO, it is the wrong thing to be focused on. The stock today is down maybe 5% to 7%. That is a buying opportunity for the smart investor.

我們希望逐步集中該投資組合，以減少水風險、減少收益波動並簡化業務管理。正如我在上次電話會議中所說，農田價值——農田作為一種投資類別，你確實需要考慮如何創造價值，而價值的創造有 2/3 來自升值，大約 1/3 來自當前收益率。我們對我在 25 年多的職業生涯中買賣的所有資產進行了 IRR 計算，這大致就是價值創造的來源。升值是2/3，當前收益率是1/3。無論出於何種原因，公開市場都處於困境中——部分原因是我認為我們是一家房地產投資信託基金，非常關注季度 AFFO 的記分卡，這是錯誤的關注點。今天該股可能下跌 5% 至 7%。對於聰明的投資者來說，這是一個買入機會。

The proceeds of the sales we're making are going to buy back stock and to pay down debt. To date, we have weighted our overweighted, frankly, the repurchases of stock because we think the stock is at such a deep discount. We don't want these debt levels to climb much higher. So we will be shifting at least for a quarter or so to a much more debt reduction oriented posture. Doesn't mean we will not do any buybacks, but we will shift from what's been sort of -- we've paid down debt along the way as well, but we're going to be shifting more to debt reduction and less to buybacks. As we watch the stock price change over time, we may and our -- debt levels gradually come down, we may shift back.

我們出售的收益將用於回購股票並償還債務。坦率地說，迄今為止，我們已經對股票回購進行了超配加權，因為我們認為該股票的折扣如此之大。我們不希望這些債務水平攀升得更高。因此，我們將至少在一個季度左右的時間內轉向更加以債務削減為導向的姿態。並不意味著我們不會進行任何回購，但我們將改變以往的做法——我們一路上也償還了債務，但我們將更多地轉向債務削減，更少地轉向回購。當我們觀察股價隨時間的變化時，我們的債務水平可能會逐漸下降，我們可能會回歸。

We did buy -- I just want to point out, we bought back some of our preferred B that instrument is in many ways like a debt instrument. Obviously, a hybrid is a preferred but it is an interest-bearing instrument or a dividend-bearing instrument that transforms much like debt. It's about a 3% coupon. That instrument expires a couple of years from now. So we want to gradually whittle away at the balance, so we don't get faced with a big onetime payment. But that doesn't show up in AFFO, the savings we make from having paid off a piece of the preferred.

我們確實購買了——我只是想指出，我們回購了一些我們首選的 B 工具，該工具在很多方面都像債務工具。顯然，混合型是首選，但它是一種計息工具或計息工具，其轉變方式與債務非常相似。大概是3%的優惠券。該文書將在幾年後到期。因此，我們希望逐漸減少餘額，這樣我們就不會面臨大筆一次性付款。但這並沒有體現在 AFFO 中，即我們通過還清一部分優先股而節省的費用。

The position we find ourselves is that we will just continue to sell farms that we aren't in love with at strong, strong prices, buyback stock, pay down debt and grab and occasionally buy additional farms in the markets and the locations that we are very happy with. Rates -- interest rates will eventually come down -- and the AFFO will have a shockingly large positive increase as that happens. No one -- certainly not me and probably no one on the call knows exactly when that will happen. But when that happens, earnings will recover strongly, but I don't really want to overemphasize that point. The core of our business is buying high-quality farms, managing them as efficiently as possible. getting the current yield that we can and ultimately harvesting that massive appreciation that occurs in the asset class due to inflation and everything else. With that, I'll stop, of course, will be available for questions and turn it over to Luca.

我們發現自己的立場是，我們將繼續以強勁的價格出售我們不喜歡的農場，回購股票，償還債務，並偶爾在市場和我們所在的地點購買更多農場。非常滿意。利率——利率最終會下降——當這種情況發生時，AFFO 將出現令人震驚的大幅正增長。沒有人——當然不是我，也可能沒有人知道這一切何時會發生。但當這種情況發生時，盈利將強勁復甦，但我真的不想過分強調這一點。我們業務的核心是購買優質農場，並儘可能高效地管理它們。獲得我們能夠獲得的當前收益率，並最終收穫因通貨膨脹和其他因素而導致資產類別大幅升值。說到這裡，我會停下來，當然，我會回答問題並將其交給盧卡。

Thank you, Paul. I would like to walk everybody a little bit more in detail through what we have been doing in the first half of the year vis-a-vis the kind of the pillars of our current strategy that is go online. On the asset disposition side, in the first half, we sold about $52 million in assets. We closed on an additional about $3 million in asset sales in the very beginning of Q3 so far. We had about $22 million of asset sales under contract, pending closing. We have about $30 million to $33 million in assets going to auction here in Colorado at the beginning of August. We have an additional about $26 million of transactions in a very advanced negotiation.

謝謝你，保羅。我想向大家更詳細地介紹一下我們在今年上半年所做的事情，以及我們當前戰略的支柱——上線。資產處置方面，上半年，我們出售了約5200萬美元的資產。到目前為止，我們在第三季度初又完成了約 300 萬美元的資產銷售。我們根據合同出售了約 2200 萬美元的資產，等待成交。八月初，我們將在科羅拉多州拍賣大約 3000 萬至 3300 萬美元的資產。我們在非常深入的談判中還有大約 2600 萬美元的額外交易。

So this is a total of about $135 million total in identified transactions or closed transactions so far. We are working, and you should expect probably more transactions, more asset sales to come later in the year. So I want to stop and really focus the attention of everybody here, as Paul has mentioned, on the power of appreciation in the asset class. And I'm really going to stick to the ones that really have kind of -- are very much solidified in terms of having been closed or just pending closing. On the $52 million close in the first half of the year, we recognized gains of about 33% over net book value. For the $22 million under contract, we are expecting about 75% gains over book value. So this truly demonstrates that the asset class is a very, very strong appreciation potential. There has to be content center for anybody investing in the asset class and is certainly a core component of our investing in portfolio management strategy.

因此，迄今為止已確定的交易或已結束的交易總額約為 1.35 億美元。我們正在努力，您應該預計今年晚些時候可能會出現更多交易和更多資產出售。因此，正如保羅所提到的，我想停下來，真正將這裡每個人的注意力集中在資產類別的升值力量上。我真的會堅持那些真正已經關閉或即將關閉的項目。上半年收盤價為 5200 萬美元，我們確認其收益比賬面淨值高出約 33%。對於 2200 萬美元的合同，我們預計將比賬面價值增長 75% 左右。所以這確實表明該資產類別是一個非常非常強大的升值潛力。任何投資該資產類別的人都必須有一個內容中心，這當然是我們投資組合管理策略的核心組成部分。

By the way, as Paul mentioned, we are engaged in a broader portfolio optimization, if you will and in that context, we are also still buying some farms. We are, of course, given our overall strategy at this point in time, not as acquisitive as we have been in the past, but we did close on an acquisition in Q2 in Oklahoma for about $9 million. We have another pending transaction here to close later this year for another farm and therefore, we continue evaluating opportunities that fit our portfolio and that kind of streamline and derisk the way that Paul alluded to. Now in terms of use of proceeds, as we announced earlier this year, we are really focusing mostly on 2 items. One is stock repurchases and the other one is reduction of leverage or pay down of debt.

順便說一句，正如保羅提到的，我們正在進行更廣泛的投資組合優化，如果你願意的話，在這種情況下，我們仍在購買一些農場。當然，考慮到我們目前的整體戰略，我們不像過去那樣積極收購，但我們確實在第二季度以約 900 萬美元的價格完成了俄克拉荷馬州的收購。我們還有另一筆懸而未決的交易，將於今年晚些時候完成另一家農場的交易，因此，我們繼續評估適合我們投資組合的機會，並以保羅提到的方式精簡和消除風險。現在就收益用途而言，正如我們今年早些時候宣布的那樣，我們實際上主要關注兩個項目。一是股票回購，二是降低杠桿或償還債務。

The -- we kind of front-loaded stock repurchases. So we bought back about $62 million in stock. In terms of shares, is about 10% of the true diluted outstanding shares as of the beginning of the year. And we did that at an average price of $11.03 per share. That is, in our mind, a very, very clear and material discount to the intrinsic value of the shares, and therefore, we've been creating value for all the shareholders that have decided to believe in what we are doing and speak to building the strategy that we are pursuing.

我們提前進行了股票回購。所以我們回購了大約 6200 萬美元的股票。就股份而言，約為年初真實稀釋流通股的10%。我們以每股 11.03 美元的平均價格做到了這一點。也就是說，在我們看來，股票的內在價值有非常非常明顯的實質性折扣，因此，我們一直在為所有決定相信我們正在做的事情並談論建設的股東創造價值。我們正在追求的戰略。

On the debt side, as I said, we kind of front-loaded these stock repurchases and therefore, the balance -- the debt balance actually went up slightly as of the end of Q2. But as we said, in the proceeds -- use of proceeds in later this year will be overwhelmingly focused on debt reduction. So in sum, we have been demonstrating value by asset sales gains. We are creating value by stock repurchases that has some repercussions. We are, of course, as we sell some assets. We are losing some revenue and but we have some costs associated with the slide of those volumes. -- we had incurred temporarily higher debt, as I just explained, but that will kind of reverse soon.

在債務方面，正如我所說，我們提前進行了這些股票回購，因此，截至第二季度末，債務餘額實際上略有上升。但正如我們所說，在今年晚些時候的收益中，收益的用途將主要集中在減少債務上。總而言之，我們一直在通過資產銷售收益來展示價值。我們通過股票回購創造價值，這會產生一些影響。當然，我們出售一些資產。我們正在損失一些收入，但我們也有一些與銷量下滑相關的成本。 ——正如我剛才所解釋的，我們暫時承擔了更高的債務，但這種情況很快就會逆轉。

We also experienced slightly higher interest rates like everybody else than we were expecting. Also one other on the business side. The -- while asset valuations are very strong and in some parts of the country, we're actually seeing them climbing more despite the frankly, increases in the last couple of years that were catching up on several years of sideways appreciation. The transaction volume overall in the marketplace is slowing down a bit. That's a result of farmers, one of the main strategic buyers in the marketplace, pretty much having use -- they're cash buyers and pretty much they use the cash that they wanted to use to buy farms. And therefore, now with the interest cost being as high as they are, buyers are hitting a little bit of a pause Also, there is a little bit of paucity of scarcity of transactions of assets coming to market.

和其他人一樣，我們的利率也比我們預期的略高。還有商業方面的另一件事。儘管在該國某些地區，資產估值非常強勁，但我們實際上看到資產估值仍在進一步攀升，儘管坦率地說，過去幾年的增長已經趕上了幾年的橫向升值。市場整體交易量略有放緩。這是農民（市場上主要戰略買家之一）的結果，他們幾乎使用了現金買家，並且幾乎使用他們想要用來購買農場的現金。因此，現在由於利息成本如此之高，買家們有點猶豫。此外，進入市場的資產交易也有點稀缺。

So also as a result of that slowdown in transaction volumes, our -- the volume of business in our brokerage and auction business has slowed down a little bit, and we have reviewed the -- our projections for the year down a little bit. James in particular will walk through a little bit more details of what that means in terms of our expectations for the year and also he is trying -- given that our portfolio is changing, he is going to try to also offer a 2023 view that is pro forma for the full year with all the dispositions that we have done. I will now actually turn the call over to him, to James for his overview of the company's financial performance. James?

因此，由於交易量放緩，我們的經紀和拍賣業務的業務量也有所放緩，我們已經審查了今年的預測，略有下降。詹姆斯將特別詳細介紹這對我們今年的預期意味著什麼，而且他正在嘗試——考慮到我們的投資組合正在發生變化，他將嘗試提供 2023 年的觀點：預計全年的情況以及我們所做的所有部署。我現在實際上會將電話轉給他，詹姆斯，讓他概述公司的財務業績。詹姆士？

Thank you, Luca. I'm going to cover a number of items today, including a summary of 3 and 6 months ended June 30, 2023, review of capital structure and interest rates, comparison of year-to-date revenue and updated guidance for 2023. I will be referring to the supplemental package in my remarks. As a reminder, the supplemental is available in the Investor Relations section of our website under the subhead Events and Presentations.

謝謝你，盧卡。我今天將討論許多內容，包括截至 2023 年 6 月 30 日的 3 個月和 6 個月的摘要、資本結構和利率的審查、年初至今收入的比較以及 2023 年更新的指導。在我的評論中指的是補充包。請注意，該補充材料可在我們網站的“投資者關係”部分的“活動和演示”小標題下找到。

Page #1 through 9 contain the press release and related financial tables and Page numbers 10 through 19 contain the supplemental information. First, I'll share a few financial metrics that appear on Page #2. For the 3 months ended June 30, 2023, net income was $7.9 million compared to $3 million for '22, an increase of $4.9 million. Net income per share available to common stockholders was $0.14 and compared to $0.04 for $22, an increase of $0.10. AFFO was negative $1.1 million compared to positive $1.1 million for '22, a decrease of $2.2 million. AFFO per weighted average share was negative $0.02 compared to positive $0.02 for '22, a decrease of $0.04.

第 1 頁到第 9 頁包含新聞稿和相關財務表格，第 10 頁到第 19 頁包含補充信息。首先，我將分享第 2 頁上出現的一些財務指標。截至 2023 年 6 月 30 日的三個月，淨利潤為 790 萬美元，較 2022 年的 300 萬美元增加了 490 萬美元。普通股股東每股淨利潤為 0.14 美元，與 22 美元的每股淨利潤 0.04 美元相比，增加了 0.10 美元。 AFFO 為負 110 萬美元，而 22 年為正 110 萬美元，減少了 220 萬美元。每股加權平均 AFFO 為負 0.02 美元，而 22 年為正 0.02 美元，減少了 0.04 美元。

For the 6 months ended June 30, 2023, net income was $9.6 million compared to $4.1 million for 2022, an increase of $5.5 million. Net income per share available to common stockholders was $0.15 compared to $0.05 for '22, an increase of $0.10. AFFO was $0.4 million compared to $3.3 million for '22, a decrease of $2.8 million. AFFO per weighted average share was $0.01 compared to $0.07 for '22, a decrease of $0.06.

截至 2023 年 6 月 30 日的 6 個月，淨利潤為 960 萬美元，與 2022 年的 410 萬美元相比，增加了 550 萬美元。普通股股東可獲得的每股淨利潤為 0.15 美元，與 22 年的 0.05 美元相比，增加了 0.10 美元。 AFFO 為 40 萬美元，與 22 年的 330 萬美元相比，減少了 280 萬美元。每股加權平均 AFFO 為 0.01 美元，與 22 年的 0.07 美元相比，減少了 0.06 美元。

Next, we'll review some of the operating expenses and other items shown on Page #5. Depreciation, depletion and amortization was higher in the second quarter of 2023 due to approximately $400,000 of nonrecurring adjustments made in the quarter and more depreciable assets placed in the service. Property operating expenses were higher in 2023 caused by a couple of things. Higher property taxes, including a onetime property tax of approximately $150,000 that occurred in the first quarter that was reimbursed by the tenant and appeared in increased tenant reimbursements, which we'll look at in a minute.

接下來，我們將回顧第 5 頁上顯示的一些運營費用和其他項目。 2023 年第二季度的折舊、消耗和攤銷較高，因為該季度進行了約 400,000 美元的非經常性調整，並且服務中放置了更多的應折舊資產。由於多種原因，2023 年的物業運營費用較高。更高的財產稅，包括第一季度發生的約 150,000 美元的一次性財產稅，該稅由租戶報銷，並出現在增加的租戶報銷中，我們稍後會討論。

In addition, the nonrecurring expense occurred in the second quarter of 2023 of approximately $140,000 due to the final reconciliation of cost sharing with the tenant on the California farm. That was partially offset by lower utility expenses in the second quarter of 2023.

此外，由於與加州農場租戶的成本分攤的最終調節，2023 年第二季度的非經常性費用約為 140,000 美元。這被 2023 年第二季度公用事業支出下降部分抵消。

General and administrative expenses were lower in 2023 due primarily to lower stock-based compensation, legal and accounting expenses are lower in 2023 due to lower litigation spend. And dispositions is up significantly compared to 2022, demonstrating the appreciation of the farmland sale values relative to net book value as Luca describe a minute ago. Interest expense increased due to higher rates and greater debt balance in the second quarter compared to 2022.

2023 年一般和管理費用較低，主要是由於股票薪酬較低，由於訴訟支出較低，2023 年法律和會計費用較低。與 2022 年相比，處置量顯著增加，這表明農田銷售價值相對於賬面淨值的升值，正如盧卡在一分鐘前所描述的那樣。與 2022 年相比，由於第二季度利率上升和債務餘額增加，利息支出有所增加。

Next, I will skip ahead of Page #12 to make a couple of comments about our capital structure. Total debt at June 30, 2023 stood at $473.5 million. Fully diluted share count as of last Friday, July 21, was 50.1 million shares. If you look at the table towards the bottom of the page, we had undrawn capacity on the lines of credit in excess of $120 million at the end of the second quarter. We have 1 more MetLife rate reset this year, that's MetLife loan #10, and we started to engage with the lender. Next year 2024, we have 3 MetLife rate resets totaling approximately $44 million. That's loan numbers 9, 11 and 12.

接下來，我將跳到第 12 頁，對我們的資本結構發表一些評論。截至 2023 年 6 月 30 日，債務總額為 4.735 億美元。截至上週五（7 月 21 日），完全攤薄後的股數為 5010 萬股。如果您查看頁面底部的表格，您會發現，截至第二季度末，我們的未提取信貸額度超過 1.2 億美元。今年，我們又重新調整了 1 次大都會人壽利率，即大都會人壽貸款#10，我們開始與貸方接觸。明年 2024 年，我們將進行 3 次大都會人壽費率重置，總金額約為 4,400 萬美元。這是貸款號碼 9、11 和 12。

Turning to Page 13, that page provides an overview of our income statement and the building blocks that generate revenue and cost of goods sold. I won't go through in detail as we have in previous quarters, but please feel free to contact me if you have any questions.

翻到第 13 頁，該頁概述了我們的損益表以及產生收入和銷售成本的構建模塊。我不會像前幾個季度那樣詳細介紹，但如果您有任何疑問，請隨時與我聯繫。

The next page, Page 14, shows these building blocks described on 13 for the first 2 quarters of 2022 and 2023, we commented at the bottom to describe the differences between the periods. A few points to highlight are: the fixed payments, that's really the first 4 columns shown all exceeded 2022. The remaining items came in lower than 2022. To telescope down a little bit. Fixed farm rent increased between the periods as we acquire properties in 2022 in renewed leases and that was offset by the disposition so far this year.

下一頁（第 14 頁）顯示了第 13 頁中描述的 2022 年和 2023 年前 2 個季度的這些構建模塊，我們在底部進行了評論，以描述各時期之間的差異。需要強調的幾點是：固定付款，實際上顯示的前 4 列都超過了 2022 年。其餘項目低於 2022 年。稍微縮小一點。由於我們在 2022 年以續租方式收購了房產，固定農場租金在不同時期有所增加，但這一增加被今年迄今為止的處置所抵消。

Solar increased in 2023 as a large project in the State of Illinois commenced its construction phase late last year. Tenant reimbursements increased in the first quarter of that onetime property tax assessment of about $150,000 and the related tenant reimbursement, as mentioned earlier. In Q4 2022, required land and buildings for 4 agricultural equipment dealerships in Ohio under the John Deere brand. The accounting treatment classifies those acquisitions as financing transactions. So if you're on the balance sheet is loans and on the income statement as interest income. This accounts to an increase in interest income in 2023 compared to 2022. Variable payments were down in Q1 due to grapes and row crops and down in Q2 due to Citrus, tree nuts and row crops. This is largely expected with one exception. The lower performance in row crops in the second quarter is really due to a timing difference as revenue that fell into the second quarter of last year is going to slip into the third quarter 2023.

隨著伊利諾伊州的一個大型項目於去年底開始建設階段，太陽能發電量將在 2023 年有所增加。如前所述，一次性財產稅評估和相關租戶報銷在第一季度的租戶報銷增加了約 150,000 美元。 2022 年第四季度，俄亥俄州 4 家約翰迪爾品牌農業設備經銷店需要土地和建築物。會計處理將這些收購歸類為融資交易。因此，如果你在資產負債表上是貸款，在損益表上是利息收入。這導致 2023 年的利息收入較 2022 年有所增加。第一季度的可變付款額因葡萄和中耕作物而下降，第二季度因柑橘、木本堅果和中耕作物而下降。這在很大程度上是預料之中的，但有一個例外。第二季度中耕作物業績較低實際上是由於時間差異造成的，因為去年第二季度的收入將滑入 2023 年第三季度。

Direct operations is the combination of crop sales, crop insurance and cost of goods sold. It was down largely due to citrus enrollments. Other items decreased due to lower auction brokerage activity compared to 2022 as Luca described earlier. We have decreased our outlook for auction and brokerage fees for the year, as shown on Page 15. If you flip the page to Page 15, we have updated the outlook for 2023, using the same building blocks described on the previous pages.

直接經營是農作物銷售、農作物保險和銷售成本的結合。下降主要是由於柑橘的入學人數。正如盧卡之前所述，與 2022 年相比，由於拍賣經紀活動減少，其他物品也有所減少。我們降低了對今年拍賣和經紀費用的展望，如第 15 頁所示。如果您將頁面翻到第 15 頁，我們會使用前幾頁中描述的相同構建模塊更新 2023 年的展望。

Assumptions are listed towards the bottom. As a reminder, this contemplates that we disposed of approximately $135 million in what we're calling identified transactions. This number is an estimate, and actual results may differ. On the revenue side, Six format will change with dispositions, acquisitions and new leases signed. Solar wind and recreation, been an reimbursement and management fees and interest income, all have very small changes. Variable payments increased due to improved outlook for citrus farms that pay variable rent, while direct operations, as crop insurance plus crop sales, less cost of goods sold is down due to Citrus and walnut farms under direct operations.

假設列在底部。提醒一下，這考慮到我們在所謂的已識別交易中處置了大約 1.35 億美元。該數字是估計值，實際結果可能有所不同。在收入方面，六號的格局將隨著處置、收購和新租約的簽署而發生變化。太陽能風能和娛樂、已報銷和管理費以及利息收入，都有很小的變化。由於支付可變租金的柑橘農場前景改善，可變付款增加，而直接經營，由於農作物保險加上農作物銷售，由於直接經營柑橘和核桃農場，銷售商品成本下降。

Other items decreased due to lower revenue outlook auction and brokerage for the balance of the year. On the expense side, property operating expenses are increasing due to a couple of items from the first half of 2023 that we've covered, the onetime property tax expense in the first quarter and the nonrecurring expense in the second quarter.

由於今年餘下的拍賣和經紀業務收入前景較低，其他項目也有所減少。在費用方面，由於我們已涵蓋的 2023 年上半年的幾個項目，即第一季度的一次性財產稅費用和第二季度的非經常性費用，物業運營費用正在增加。

General and administrative decreases of lower spend in the first half of 2023. Legal and accounting also decreased of lower spend in the first half of 2023. Interest expense increases with higher projected debt balances and updated rates. We're estimating the last remaining interest rate reset for 2023, that's MetLife #10, prices in the 6% to 6.5% range. While the increase in interest expense is painful, we maintain access to over $120 million of liquidity in the form of undrawn lines of credit. Weighted average shares decreased the share buybacks. This resulted in AFFO in the $5.9 million to $9.2 million range or $0.11 to $0.18 per share, a decrease from projections provided back in back.

2023 年上半年，一般和行政支出減少。2023 年上半年，法律和會計支出也減少。利息支出隨著預計債務餘額和更新利率的增加而增加。我們預計最後一次利率重置為 2023 年，即 MetLife #10，價格在 6% 至 6.5% 範圍內。儘管利息支出的增加令人痛苦，但我們仍然以未提取的信貸額度的形式保持著超過 1.2 億美元的流動性。加權平均股票減少了股票回購。這導致 AFFO 價格在 590 萬美元至 920 萬美元之間，即每股 0.11 美元至 0.18 美元，比之前提供的預測有所下降。

At the bottom of Page 15, we provide information on what 2023 would have looked like pro forma of various transactions by removing the partial year data. Please note, this is not a projection for next year. That will require more analysis, including lease renewals, additional farm transactions announces of variable rents, et cetera. Fixed farm rent would be approximately $1 million lower than July guidance. Solar, wind, recreation would be approximately $200,000 lower than July guidance. The tenant reimbursements will be approximately $200,000 lower than July guidance.

在第 15 頁的底部，我們通過刪除部分年份數據來提供有關 2023 年各種交易預計情況的信息。請注意，這不是明年的預測。這將需要更多的分析，包括續租、額外的農場交易、可變租金的公佈等等。固定農場租金將比 7 月份的指導值低約 100 萬美元。太陽能、風能、娛樂設施的支出將比 7 月份的指導值低約 20 萬美元。租戶報銷金額將比 7 月份指導值低約 20 萬美元。

Net debt would be approximately $400 million to $410 million. The fully diluted shares will be approximately 1.9 million shares lower than July guidance. Hopefully, this helps describe where we stand given what we noted. We will certainly keep you updated as the year progresses. This wraps up my comments for this morning. Thank you all for participating. Operator, you can now begin the Q&A session.

淨債務約為 4 億至 4.1 億美元。完全稀釋後的股票數量將比 7 月份指導值低約 190 萬股。希望這有助於描述我們所注意到的情況。隨著時間的推移，我們一定會及時向您通報最新情況。我今天早上的評論就到此結束。感謝大家的參與。接線員，您現在可以開始問答環節了。

(Operator Instructions)

（操作員說明）

And your first question comes from the line of Rob Stevenson from Janney.

你的第一個問題來自詹尼的羅布·史蒂文森。

So this quarter, you guys sold a couple of thousand acres in each of the corn belt and Delta South and almost 5,000 acres in the Southeast, but nothing in the West Coast or the High Plains. The expected sales over the remainder of '23 are going to be in those same markets? Or are you expecting to see some West Coast and High Plains sales.

因此，本季度，你們在玉米帶和三角洲南部各出售了幾千英畝，在東南部出售了近 5,000 英畝，但在西海岸或高原平原沒有出售任何土地。 23 年剩餘時間的預期銷售額將在這些相同的市場中嗎？或者您希望看到西海岸和高原地區的銷售。

So the auctions that are alluded to -- this is Paul. The auctions that are alluded to in the earnings release that are coming soon, those are actually all High Plains oriented auctions that are starting. And the Midwest sales we did, the corn belt sales we did were in Nebraska which in all except the far western part of Nebraska, we put in the corn belt, but Nebraska is unusual. Nebraska has got very much Illinois and Iowa style land in the eastern, say, 1/3 of state. And then as you move west, it's much more water challenged. What we sold in Nebraska is in that water-challenged area.

所以提到的拍賣——這是保羅。即將發布的收益報告中提到的拍賣實際上都是正在開始的面向高原的拍賣。我們所做的中西部銷售，我們所做的玉米帶銷售在內布拉斯加州，除了內布拉斯加州的遠西部地區外，我們都放在玉米帶中，但內布拉斯加州是不尋常的。內布拉斯加州東部擁有大量伊利諾伊州和愛荷華州風格的土地，例如該州面積的 1/3。然後，當你向西移動時，水的挑戰就會更大。我們在內布拉斯加州銷售的產品就是在那個缺水的地區。

As far as the sales in the Delta and the Southeast, -- we are certainly pruning farms that, for whatever reason, we don't think are as high quality from our perspective as some of the others. So some of the acreage just sold in the Southeast in Delta, which fall into that bucket, but a couple of them just fall into the bucket of somebody made us an offer we can't refuse.

就三角洲和東南部的銷售而言，我們當然正在修剪農場，無論出於何種原因，我們認為從我們的角度來看，這些農場的質量不如其他一些農場。因此，三角洲東南部剛剛出售的一些土地就屬於這個範圍，但其中一些土地只是屬於某人向我們提出的我們無法拒絕的報價。

Rob, we -- our farm managers value this portfolio relatively frequently kind of from the bottoms up. We don't publish that. We don't want to publish it because it's being done by our own farm managers but they use comps and everything else. And so we have sort of a tracking list internally on what we think something is worth. And then obviously, a sort of internal mental projection of what's the growth and value of that property over the coming years with appreciation in particular. If someone shows up and puts up an offer, that is so far above what we "think it's worth", and gives us the next 3 years or 5 years of appreciation without having to wait for it in their offer. We will almost always take that deal and recycle the capital into in this circumstance, buying back our stock or buying additional farms.

羅布，我們——我們的農場經理相對頻繁地自下而上地評估這個投資組合。我們不發布那個。我們不想發布它，因為它是由我們自己的農場經理完成的，但他們使用比較和其他一切。因此，我們內部有一個跟踪列表，用於記錄我們認為某些東西的價值。顯然，這是一種對未來幾年該房產的增長和價值（尤其是升值）的內部心理預測。如果有人出現並提出報價，那麼這遠遠超出了我們“認為值得”的水平，並且為我們提供了未來 3 年或 5 年的升值空間，而無需等待他們的報價。在這種情況下，我們幾乎總是會接受這筆交易並將資金回收，回購我們的股票或購買更多農場。

If somebody really wants something from an economic perspective more than we do we're not emotionally tied to any farm we are selling. So what should come in the rest of the year, though, is more sales, frankly, in the -- on the West Coast and in High Plains, probably less in the eastern part of the country. But with the caveats I gave, there may be still some things happening in the eastern part of the country. Hope that answers that.

如果有人從經濟角度確實比我們更想要某樣東西，那麼我們就不會在情感上與我們出售的任何農場聯繫在一起。因此，坦率地說，今年剩下的時間裡，西海岸和高原地區的銷量應該會增加，而該國東部地區的銷量可能會減少。但根據我提出的警告，該國東部地區可能仍然會發生一些事情。希望能回答這個問題。

Yes. And I guess you guys have talked in the past about reducing some of the volatility in the revenue streams, et cetera. Are the West Coast assets that are going to be sold, are those ones with the more variable revenue streams or those the more stable ones? I guess what I'm trying to get at is are some of the variable, the tree crops, the almonds and stuff like that. Is that stuff as in demand today, are you having to wait a bit for the market prices and some of the supply issues to subside to really monetize any of that. And right now, it's monetizing strawberries and stuff like that.

是的。我想你們過去曾談論過減少收入流的一些波動性等等。將要出售的西海岸資產是那些收入來源更不穩定的資產還是那些更穩定的資產？我想我想要了解的是一些變量，樹木作物，杏仁和類似的東西。這些東西現在是否有需求，你是否需要等待市場價格和一些供應問題消退才能真正將其貨幣化。現在，它正在通過草莓和類似的東西貨幣化。

It's a little bit of a mixed bag. It's a very insightful question and a good question. So here's -- so first, in our portfolio, the volatility comes almost entirely from the specialty crops, mostly on the West Coast, but the special crops in our portfolio overall and from the market -- the brokerage business, the MWA business. I mean that's where the volatility comes from.

這是一個魚龍混雜的情況。這是一個非常有洞察力的問題，也是一個好問題。因此，首先，在我們的投資組合中，波動性幾乎完全來自特種作物，主要來自西海岸，但我們投資組合中的特殊作物總體上來自市場——經紀業務、MWA 業務。我的意思是，這就是波動性的來源。

The row crops other than a timing percentage of occasional bad debt is incredibly predictable. It's fixed cash rent, it's coming 50% usually in February or March, 50% roughly in November. It's incredibly predictable. And you can see that in sort of how James is -- in the company's budget matched up with the actuals in the row crop kind of portion of the portfolio. So yes, the volatility is on the West Coast, but the water risk is also substantially on the West Coast. I mean it's not water risk this year, but there will be again -- and we have taken a perspective that we want to lighten up our exposure out there. It doesn't mean they exited completely, but lighten up our exposure. So you will see more sales, as I said, come from there.

除了偶爾壞賬的時間百分比之外，中耕作物的預測是令人難以置信的。它是固定現金租金，通常在二月或三月達到 50%，大約在 11 月達到 50%。這是令人難以置信的可預測性。你可以看到詹姆斯的情況——公司的預算與投資組合中中耕作物的實際情況相匹配。所以，是的，波動性在西海岸，但水風險也主要在西海岸。我的意思是，今年不是水風險，但還會再次出現——我們已經採取了一種觀點，希望減少我們的風險敞口。這並不意味著他們完全退出，而是減少了我們的曝光。因此，正如我所說，你會看到更多的銷售額來自那裡。

Related to that, though, was the other question you asked. The market -- unlike Illinois farmland where the state kind of is -- it's different land classes across the state, so the values are different. But it's all fundamentally in the same economic world. It raises corn. It raises soybeans, it raises wheat, and it has some livestock. When you go to California, no 2 acres -- acres 5 miles apart are vastly different in value and vastly different in terms of the food economy they're connected to. So you start with land quality and water, and water is probably even more important than land in California, but it's those 2 things. And then you go to what crop is on it. And if you're in a permanent crop, say walnuts, which in, frankly, having a tough time right now in a general economic sense, you're trapped because of 40% of your value in that farm is the existing trees. So it's not so -- you can't just say, "Hey, I'm going to sell the farm to walnut economy", bad.

不過，與此相關的是您問的另一個問題。市場與伊利諾伊州的農田不同，全州的土地類別不同，因此價值不同。但從根本上來說，這一切都在同一個經濟世界中。它種植玉米。它種植大豆，種植小麥，還有一些牲畜。當你去加利福尼亞州時，沒有 2 英畝——相距 5 英里的英畝在價值上有很大的不同，而且在它們所關聯的食品經濟方面也有很大的不同。所以你從土地質量和水開始，在加州水可能比土地更重要，但就是這兩件事。然後你就可以看到上面有什麼作物。如果你種植的是永久性作物，比如核桃，坦率地說，從一般經濟意義上來說，核桃目前正處於艱難時期，你就會陷入困境，因為你在該農場的價值的40% 是現有的樹木。所以事實並非如此——你不能只是說，“嘿，我要把農場賣給核桃經濟”，這很糟糕。

On the other hand, if the walnut economy is strong, it's easy to sell. So we have to migrate through those issues. They're obviously more complicated farms. So sales processes and due diligence is longer lead times and then finally, the size of individual transactions there can be quite high, almost always tens of millions of dollars. So it's somewhat more of an institutional market than it is an individual farmer market. So it just slows down your process.

另一方面，如果核桃經濟強勁，就容易出售。所以我們必須解決這些問題。它們顯然是更複雜的農場。因此，銷售流程和盡職調查的交付時間較長，最後，個別交易的規模可能相當高，幾乎總是數千萬美元。因此，它更像是一個機構市場，而不是個體農民市場。所以它只會減慢你的進程。

Okay. That's helpful, Paul. I appreciate it. James, so year-to-date, your AFFO per share is $0.01, the guidance is $0.11 to $0.18. Typically, fourth quarter is your big quarter. It's usually, call it, 75% to 80% of the second half AFFO. Is there anything different this year that would suggest more coming in the third quarter on a percentage weighting than the fourth quarter? Or is this sort of normal third quarter, fourth quarter split likely to be intact here in '23?

好的。這很有幫助，保羅。我很感激。詹姆斯，今年迄今為止，您的每股 AFFO 為 0.01 美元，指導價為 0.11 至 0.18 美元。通常，第四季度是您的重要季度。通常是下半年 AFFO 的 75% 到 80%。今年是否有什麼不同之處表明第三季度的百分比權重比第四季度有所不同？或者這種正常的第三季度、第四季度的劃分在 23 年可能會完好無損？

Yes. I think, Rob, the kind of shape of the curve would be pretty similar in the past years. So really the bulk is coming in the fourth quarter. So yes, I think that would be pretty consistent.

是的。羅布，我認為過去幾年的曲線形狀非常相似。所以實際上大部分是在第四季度出現的。所以是的，我認為這會非常一致。

All right. And then last one for me, James, what -- you guys talked about it a little bit in the press release, but what level of capital gains can you absorb in the common dividend in '23 and possibly using the first quarter '24 dividend without having to pay a special dividend? Or if you sell the $135 million it's all about a foregone conclusion that you guys are going to need to pay a special dividend?

好的。然後是我的最後一個，詹姆斯，你們在新聞稿中談到了這一點，但是你們可以在 23 年的普通股息中吸收多少水平的資本收益，並可能使用 24 年第一季度的股息無需支付特別股息？或者，如果您出售了 1.35 億美元，那麼你們將需要支付特別股息，這一切都已成定局？

Yes, Rob, it's a frankly, a topic that we're talking about a lot internally, doing a lot of analysis with not only ourselves but also our tax advisers. And it's certainly a conversation at the Board level. So -- at this point, I think, we have the potential to make an additional distribution, not -- we're just not in a position to sort of declare what magnitude. So I think we'll come back to you later when we have more info, but it's certainly a possibility.

是的，羅布，坦率地說，這是一個我們在內部經常討論的話題，不僅與我們自己，而且與我們的稅務顧問進行了大量分析。這當然是董事會層面的對話。因此，我認為，在這一點上，我們有潛力進行額外的分配，但我們只是無法宣布其規模。所以我想我們稍後會在獲得更多信息後回复您，但這肯定是有可能的。

Let me add just a little bit to that, James. I appreciate your caution, but and James and I are in two different buildings today. Rob, your question is the right question. We would not have put that in the press release if we didn't think it was highly probable -- based -- we obviously don't want to pay a tax, we'd rather distribute to shareholders. The exact amount and the timing is certainly unknown at this point, but the probability if we complete that $135 million of sales, the mathematics were pretty compelling that we're going to have to make some sort. I don't believe -- I don't want to use the word special dividend because who knows whether it's special or otherwise. But there probably needs to be something done because of the relatively powerful gains we've had on those sales.

讓我補充一點，詹姆斯。我感謝你的謹慎，但是詹姆斯和我今天在兩棟不同的大樓裡。羅布，你的問題是正確的。如果我們不認為這是很有可能的——基於——我們顯然不想繳稅，我們寧願分配給股東，我們就不會把它放在新聞稿中。目前確切的金額和時間當然未知，但如果我們完成 1.35 億美元的銷售額，數學上的可能性就非常令人信服，我們將不得不採取某種行動。我不相信——我不想使用“特別股息”這個詞，因為誰知道它是特別的還是其他的。但由於我們在這些銷售上獲得了相對強勁的收益，因此可能需要採取一些措施。

Okay. And then just last 1 for me, I guess then. Paul, any update on the hedge fund litigation? Or is that sort of status quo at this point?

好的。然後對我來說就是最後 1 個，我想。保羅，對沖基金訴訟有什麼最新進展嗎？或者說這就是目前的現狀嗎？

Yes. No, I'll hit it very quickly. And if you want a deeper read, you guys can always talk to our General Counsel after this call. But the short answer is the Sabrepoint, the party that really caused this in our point of view was trying -- has always been trying to wiggle out of this under a legal theory that says they weren't involved. -- that is untrue. We've got the documentation and the e-mails that prove their involvement. And they have occasionally found a judge who didn't understand the case because a lot of these state court judges, for example, they do a divorce 1 minute and a traffic case the next minute, and then they show up in a complex commercial litigation in the third case of the day.

是的。不，我會很快擊中它。如果您想更深入地了解，可以隨時在電話會議後與我們的總法律顧問交談。但簡短的答案是 Sabrepoint，在我們看來，真正造成這一事件的一方一直在嘗試——一直在試圖根據法律理論擺脫這一困境，而法律理論表明他們沒有參與其中。 ——那是不真實的。我們有證明他們參與的文檔和電子郵件。他們偶爾會找到一個不懂案件的法官，因為很多州法院的法官，例如，他們前一分鐘審理離婚案，下一分鐘審理交通案件，然後他們出現在復雜的商業訴訟中在當天的第三個案例中。

So they got a favorable decision in Texas a year or more ago saying, hey, it was dismissed in Colorado Federal Court, so it can't come in Texas. That's totally untrue. We appealed that decision, got a unanimous result in our favor, and so we are back to the races. Sabrepoint, of course, is appealing that. They will, in our view, fail in that appeal because we had a unanimous decision of the group of judges they're not going to change their mind. But they get to run the process and will continue to -- the -- they know they're guilty, so they're trying to waste time and opinion. That's what they're doing. But we're on top again, and we will stay there, my point of view. Good news is we're not spending much money on it because when you're just sitting there waiting on the judge to rule, you don't spend much money on it, and that's good.

所以他們一年多前在德克薩斯州得到了有利的決定，說，嘿，它被科羅拉多州聯邦法院駁回了，所以它不能出現在德克薩斯州。這完全是不真實的。我們對這一決定提出上訴，得到了對我們有利的一致結果，所以我們回到了比賽。當然，Sabrepoint 對此很有吸引力。我們認為，他們的上訴將會失敗，因為我們的法官組一致決定，他們不會改變主意。但他們開始運行這個過程，並將繼續——他們知道自己有罪，所以他們試圖浪費時間和意見。這就是他們正在做的事情。但我的觀點是，我們再次登頂，而且我們將保持在那裡。好消息是我們不會花太多錢，因為當你只是坐在那裡等待法官裁決時，你不會花太多錢，這很好。

And your next question comes from the line of Craig Kucera from B. Riley Securities.

您的下一個問題來自 B. Riley 證券公司的 Craig Kucera。

I had a couple of questions. First, I would like to talk about the -- some of the downward volatility in some of your core row crop prices since the first quarter. Is that impacting your renewal lease discussions? And kind of how are they going and what are your expectations?

我有幾個問題。首先，我想談談自第一季度以來一些核心行作物價格的一些下行波動。這會影響您的續租討論嗎？他們進展如何？您的期望是什麼？

Sure. The -- in terms of the lease renewals when you go to do lease renewals, probably -- there are 2 really important factors in that negotiation. The first is a general sense of the farm economy at the time of the negotiation and what vintage lease are you renegotiating. And so at this point in time, the farm economy is pretty strong, not quite as strong as it was a year ago, but in terms of row crop prices, but pretty darn strong. And with what's going on in Ukraine right now, it may get stronger and kind of has here in the last week or 2.

當然。當你去續租時，就續租而言，談判中可能有兩個非常重要的因素。第一個是談判時對農場經濟的總體了解以及您要重新談判的老式租賃。因此，在這個時候，農業經濟相當強勁，雖然不像一年前那麼強勁，但就中耕作物價格而言，卻相當強勁。鑑於烏克蘭目前正在發生的事情，它可能會變得更強，並且在過去一周或兩週內會出現這種情況。

But we're in a pretty good place in the farm economy. In terms of the vintage of leases we're renegotiating, we are now renegotiating in most cases, a lease that was negotiated in 2020 in the fall of '19 or 2020. That was an era that had some of the leases had pretty big bumps back then and some didn't. That was the time frame where the farm economy transitions. And so the earlier negotiated leases were still kind of weak, and the late in the year negotiated leases were pretty strong.

但我們在農業經濟中處於一個非常好的位置。就我們正在重新談判的租約的年份而言，我們現在在大多數情況下都在重新談判，即2020年秋季或2020年談判的租約。那個時代，一些租約有相當大的顛簸那時有些人沒有。那是農業經濟轉型的時間框架。因此，早期的協商租賃仍然有點疲軟，而今年晚些時候的協商租賃則相當強勁。

So this year, if you're renegotiating one of the ones that wasn't very strong back in 2020, we'll likely to get pretty big bumps, the 15% kind of bracket like we got last year. If you happen to be renegotiating one, that was negotiated late in the 2020 cycle, you may see a lease that's more like 5% to 10% up because just because you're coming off a higher base.

因此，今年，如果你要重新談判 2020 年不太強勁的一項協議，我們可能會遇到相當大的障礙，就像去年一樣，達到 15% 的水平。如果您碰巧正在重新談判在 2020 年周期末期談判的租約，您可能會看到租約上漲 5% 至 10%，因為您的基數較高。

So that's what we're facing. I mean rents will continue to climb. I don't think our average increase will be quite as high as next year, if I had to take an educated guess right now, but we're pretty early in the process, so it's kind of hard to tell. I think it will be strong, but not quite as good in terms of percentage jumpers we had last year.

這就是我們面臨的情況。我的意思是租金將繼續上漲。如果我現在必須做出有根據的猜測，我認為我們的平均增幅不會像明年那麼高，但我們還處於這個過程的早期，所以很難說。我認為它會很強勁，但就跳投百分比而言，我們沒有去年那麼好。

No, that's helpful. James, I've got a question on your guidance, just looking from your sort of May 23 assumptions to July. It looks like about a 50 to 100 basis point increase on the interest rate reset on the $49 million that's outstanding. Kind of can you walk us through how you're getting to that. I know we had 25 basis points yesterday, maybe another 25. Are those discussions related to the spreads you might be looking at? Or any color there would be helpful.

不，這很有幫助。詹姆斯，我對你的指導有一個疑問，只是看看你對 5 月 23 日到 7 月的假設。 4,900 萬美元未償還貸款的利率重置看起來大約增加了 50 到 100 個基點。您能告訴我們您是如何做到這一點的嗎？我知道昨天我們有 25 個基點，也許還有 25 個基點。這些討論與您可能關注的利差有關嗎？或者任何顏色都會有幫助。

Sure. So in general, when we look at these MetLife rate resets, we sort of put the language as to actually how the resets work in the Q in the Note 7. But generally, how it works is they're priced off a spread to treasuries. And so we've had movement in treasuries. -- and the spreads, while earlier in the year, we may have hoped to be a little bit tighter, they've widened out. So historically, our spread, if you wanted to put a range around, it's been kind of 180 to 200 over -- and now we're, I think, closer to the 200 side of the range and treasuries have moved. So typically, we're pricing off the 3-year. In this particular instrument, we have some ability to flex out a little longer. And that's on the table for discussion with the lender. Some of the earlier ones in the year we just didn't have as much term in the actual loan. It was -- they were maturing 3 or maybe 4 years out. So going sort of further out the yield curve wasn't really a possibility -- does that make sense?

當然。因此，總的來說，當我們查看這些大都會人壽利率重置時，我們在Note 7 的Q 中添加了有關重置實際如何運作的語言。但一般來說，它的運作方式是它們以與國債的利差定價。因此，我們的國債發生了變化。 ——而利差，雖然在今年早些時候，我們可能希望縮小一點，但它們已經擴大了。所以從歷史上看，我們的利差，如果你想設定一個範圍，它是 180 到 200 多點——而現在，我認為，我們更接近該範圍的 200 一側，國債也發生了變化。因此，我們通常會按 3 年期定價。在這個特殊的樂器中，我們有能力彎曲得更久一些。這已擺在與貸方討論的桌面上。今年早些時候的一些貸款，我們的實際貸款期限沒有那麼長。他們在 3 或 4 年後才成熟。因此，收益率曲線進一步延伸實際上是不可能的——這有意義嗎？

Yes, that's helpful. And just another follow-up on the guidance. I know that your variable payment expectations were up by an improvement in citrus farms paying variable rent, but your direct operations are down, which I think are mostly comprised of citrus and tree nuts. Is that performance related? Or did you sell some of those farms under a direct operation or maybe have a third-party spending those? Just some color there would be helpful to understand that if there is a disconnect there.

是的，這很有幫助。這只是該指南的另一個後續行動。我知道，由於支付可變租金的柑橘農場的改善，您的可變付款預期有所提高，但您的直接業務有所下降，我認為主要由柑橘和堅果組成。這與性能有關嗎？或者你是否出售了一些直接經營的農場，或者可能有第三方花費這些農場？只要有一些顏色就會有助於理解那裡是否存在脫節。

Yes. I mean I realize it can be a little confusing because they're both counted in the basket of citrus, but they are different farms. So we've got sort of a set of farms that are paying variable rent that are frankly doing a little bit better than we initially estimated. And the citrus farms are in the basket of direct operations are doing a little bit worse. So yes, they're all broadly under citrus, but they do grow different types of products and even on the farms, sometimes a lot of different products within the farm. So we're just seeing a bit of divergence and so a little bit better on the variable farms and a little bit worse on the direct operations farms. But no -- nothing is really leaving the portfolio to answer that part of the question. It's sort of I guess, to use a bad pun here, oranges against oranges.

是的。我的意思是，我意識到這可能有點令人困惑，因為它們都算在柑橘籃子裡，但它們是不同的農場。因此，我們有一組支付可變租金的農場，坦率地說，它們的表現比我們最初估計的要好一些。而直接經營的柑橘農場的表現則稍差一些。所以，是的，他們都廣泛種植柑橘類水果，但他們確實種植不同類型的產品，甚至在農場裡種植，有時農場內種植很多不同的產品。因此，我們只是看到了一些差異，因此可變農場的情況要好一些，而直接經營農場的情況要差一些。但事實並非如此——投資組合併沒有真正能夠回答這部分問題。我想，這裡用了一個不好的雙關語，橙子對橙子。

No, that makes sense. I appreciate that. Just looking at the drop in sort of auction and brokerage fee expectations, which was pretty meaningful quarter-to-quarter. I just wanted to circle back to that. Is that due to a lack of buyers or sellers or both?

不，這是有道理的。我很感激。只要看看拍賣和經紀費用預期的下降，這對於季度來說是相當有意義的。我只是想回到那個話題。這是因為缺乏買家或賣家還是兩者兼而有之？

Let me pick up on that one. It is really a lack of sellers. What happens in the farm economy particularly in the row crop world, is when prices start to really surge and everybody is hearing about those $20,000 sales and their market is super euphoric, every -- I mean picture the family in suburban Chicago his grandmother owns a farm, grandma passed away, they're sitting around the table at an extended family party going, "Hey, let's sell grandma farm, but prices are sky high". And that farm gets sold. Then when prices level out, what happens is the same family gathering, Well, let's wait -- let's wait a month or 2. Let's wait a year or 2, maybe it will recover or maybe Ukraine will get worse and the grain prices will go up. And so there's just this hesitation. And we have transitioned -- and the high interest rates certainly haven't helped because at least some of the buying community needs to borrow money.

讓我來談談那個。確實是缺賣家。在農業經濟中，特別是在中耕作物領域，當價格開始真正飆升時，每個人都聽說了20,000 美元的銷售，他們的市場非常欣喜，每個- 我的意思是想像一下芝加哥郊區的家庭，他的祖母擁有一棟農場，奶奶去世了，他們坐在大家庭聚會的桌子旁，說：“嘿，讓我們賣掉奶奶農場，但價格太高了”。那個農場被賣掉了。然後，當價格趨於平穩時，發生的事情就是同一個家庭聚會，好吧，讓我們等待——讓我們等待一兩個月。讓我們等待一兩年，也許它會恢復，或者烏克蘭會變得更糟，穀物價格將會上漲向上。所以只有這種猶豫。我們已經轉型了——高利率肯定沒有幫助，因為至少有一些購買群體需要藉錢。

So what happens as we kind of transitioned in the last 12 months from that super euphoric to the plateau, and it's really dropped the number of people selling farms. So the volume declines are not just in Murray Wise. They're in our major competitors across the country who sell farms. The one other thing I do want to just mention on Murray Wise brokerage business. they did a major amount of business for us, the Nebraska auctions that I talked about a few moments ago, were run by Murray Wise. But the way the accounting system works, we take the fee revenue that Murray Wise received because we -- the human beings then in that division of our business have to get paid. The fee revenue that we pay gets consolidated out in the financials. So it makes the Murray as it should, but it makes a very wise line. Look, it's not great anyway, but it looks even worse because you take out the fee levels that came from business done for FPI's vehicle.

那麼，當我們在過去 12 個月裡從超級欣快過渡到平穩狀態時，會發生什麼，出售農場的人數確實下降了。因此，銷量下降的不僅僅是Murray Wise。他們是我們在全國各地銷售農場的主要競爭對手。我想提的另一件事是關於 Murray Wise 的經紀業務。他們為我們做了很多生意，我剛才談到的內布拉斯加州拍賣會是由默里·懷斯（Murray Wise）經營的。但按照會計系統的運作方式，我們收取默里·懷斯收到的費用收入，因為我們——當時在我們業務部門的人們必須得到報酬。我們支付的費用收入會合併到財務報表中。所以它使墨累河成為了它應有的樣子，但它卻是一條非常明智的路線。看，無論如何，情況都不是很好，但看起來更糟，因為你去掉了 FPI 車輛業務所產生的費用水平。

No, that makes sense.

不，這是有道理的。

I don't know the exact numbers, and I don't think I am in the public domain, but I mean it's a pretty big nut to get consolidated out.

我不知道確切的數字，而且我認為我不屬於公共領域，但我的意思是，整合起來是一個相當大的難題。

And your next question comes from the line of Alex Fagan from Baird.

您的下一個問題來自貝爾德 (Baird) 的亞歷克斯·費根 (Alex Fagan)。

The first is on the timing of debt repayments. I heard that you mentioned in the prepared remarks that the buybacks were front-loaded and the debt repayment will be backloaded, just kind of for modeling reasons, trying to figure out what that schedule will be like.

首先是關於償還債務的時間。我聽說你在準備好的發言中提到，回購是提前進行的，債務償還將是後調的，只是出於建模原因，試圖弄清楚時間表會是什麼樣子。

So of the $135 million closings that we've been with $135 million of closings that we've been referring to today that are kind of either closed, under contract or really advanced negotiations. The remainder of the proceeds from those sales will largely go to pay down debt closing scheduled and then the closings to be scheduled of the things we know are going to be sold are going to go to pay down debt.

因此，在我們今天提到的 1.35 億美元的成交額中，有 1.35 億美元的成交額要么是根據合同完成的，要么是真正經過高級談判的。這些銷售的剩餘收益將主要用於償還預定的債務交割，然後我們知道將要出售的物品的預定交割將用於償還債務。

The thing you need to just keep in mind is we might buy an additional -- cash is fungible. So we might buy an additional farm. But we're pretty dedicated to saying -- taking that $135 million and the money that was available for stock for repurchases from those asset sales has already been spent. And what's coming now -- and we did it, and it worked. I mean, we bought back stock at an average price of $11.03, and I'm not looking at my screen right now, but it's trading higher than that, quite a bit higher than it now. And so we did the stock buyback first and then a new net reduction second on that $135 million of proceeds.

您需要記住的是，我們可能會額外購買現金——現金是可以互換的。所以我們可能會購買一個額外的農場。但我們非常熱心地說——這 1.35 億美元以及從這些資產出售中可用於回購股票的資金已經被花掉了。現在即將發生的事情——我們做到了，而且成功了。我的意思是，我們以 11.03 美元的平均價格回購了股票，我現在沒有看我的屏幕，但它的交易價格比這個更高，比現在高很多。因此，我們首先進行了股票回購，然後對這 1.35 億美元的收益進行了新的淨減持。

That's helpful. And then to go to the asset sales, can you provide some more color on who you're actually selling to. How much of the assets are going to farmers versus everybody else?

這很有幫助。然後談到資產銷售，您能否提供更多有關您實際銷售對象的信息。與其他人相比，有多少資產流向了農民？

Well, I mean it's mixed bag. We've had a couple of transactions that are institutional buyers are major competitors. They're obviously digging their own confidentiality. So I won't say their names, but they're the who's who of farm -- of ultra-high net worth families and big competitive institutional investors to us have bought quite a few of those assets. And then the local farmers have been the remainder of the buying group.

嗯，我的意思是它是混合包。我們已經進行了幾筆交易，機構買家是主要競爭對手。他們顯然是在挖掘自己的機密。所以我不會說出他們的名字，但他們是農場的名人——超高淨值家庭和大型競爭性機構投資者對我們來說已經購買了相當多的此類資產。然後當地農民是購買群體的其餘部分。

So it's probably roughly reflective of how the market really works and the biggest transactions are often institutional and the ones that are more modest in size or often individual farmers. But we're kind of -- it's -- we, as a cultural matter, Alex, offer the farms to the tenant first if we believe the tenant has a financial wherewithal that a chance of buying it, and he may want to go find his own financial backer so we can keep control of the asset even if you can't afford to by themselves. And so we always kind of start with the farmer that's actually on the farm. And then if he's not able or just doesn't have a wherewithal to buy it. we'll move on to seeing it as other people buying it. But we're not really putting for -- other than the properties we're auctioning, -- we don't want to decision to say, "Hey, we're going to sell that. We're kind of waiting for inbound call. We made it known that we're willing to sell some stuff, and we wait for inbound calls. That's it for me.

因此，它可能大致反映了市場的實際運作方式，最大的交易通常是機構性的，而規模較小的交易往往是個體農民。但我們，作為一個文化問題，亞歷克斯，如果我們相信租戶有財力有機會購買農場，並且他可能想去找找，那麼我們首先將農場提供給租戶他自己的財務支持者，這樣我們就可以保持對資產的控制，即使您自己無力承擔。所以我們總是從實際在農場的農民開始。然後，如果他沒有能力或沒有足夠的資金來購買它。我們將繼續將其視為其他人購買的方式。但我們並沒有真正投入 - 除了我們正在拍賣的房產之外 - 我們不想決定說，“嘿，我們要賣掉它。我們正在等待入境打電話。我們表示願意出售一些東西，然後等待打來的電話。我的任務就是這樣。

And there are no further questions at this time. I will now turn the call back over to Mr. Luca Fabbri for some final closing remarks.

目前沒有其他問題。現在我將把電話轉回給 Luca Fabbri 先生，讓其做最後的總結髮言。

Thank you, Rob, and thank you, every.

謝謝你，羅布，也謝謝你們每一個人。

Body, for listening in and participating to this call. We appreciate your interest in our company and look forward to updating you on our activities and results in the coming quarters. Have a great day.

Body，用於監聽和參與此通話。我們感謝您對我們公司的興趣，並期待向您介紹我們未來幾個季度的活動和業績的最新情況。祝你有美好的一天。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。