Farmland Partners Inc (FPI) 2023 Q4 法說會逐字稿

Hello, my name is Jeannie, and I will be your conference operator today. And I would like to welcome you to the Farmland Partners Inc. Q4 and fiscal year 2023 earnings call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again, thank you and I would now like to turn the call over to Luca February, President and CEO. You may begin your conference.

您好，我叫珍妮，今天我將擔任您的會議操作員。我歡迎您參加 Farmland Partners Inc. 第四季和 2023 財年財報電話會議。所有線路均已靜音，以防止任何背景噪音。演講者發言後，將進行問答環節。如果您想在此期間提出問題，只需按電話鍵盤上的星號，然後再按數字 1 即可。如果您想撤回您的問題，請再次按星號一，謝謝，我現在想將電話轉給總裁兼執行長 Luca February。您可以開始您的會議了。

Thanks and good morning, and welcome to Farmland Partners full year 2023 Earnings Conference Call and Webcast. We truly appreciate your taking the time to join us for these calls because we see them as a very important opportunity to share with you our thinking and our strategy in a format less formal and more interactive than public filings and press releases.

謝謝，早安，歡迎參加 Farmland Partners 2023 年全年收益電話會議和網路廣播。我們衷心感謝您抽出時間參加這些電話會議，因為我們認為這是一個非常重要的機會，可以透過比公開文件和新聞稿更不正式、更具互動性的形式與您分享我們的想法和策略。

I will now turn over the call to our General Counsel, Christine Garrison, for some customary preliminary remarks. Christine?

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？

Thank you, Luca, and thank you to everyone on the call. The press release announcing our fourth quarter earnings was distributed after market close yesterday. The supplemental package has been posted to the Investor Relations section of our website under the sub header Events and Presentations for those who listen to the recording of this presentation, I remind you that the remarks made herein are as of today, February 29, 2024, and will not be updated subsequent to this call.

謝謝你，盧卡，也謝謝參加電話會議的所有人。昨天收盤後發布了宣布第四季收益的新聞稿。補充包已發佈到我們網站的投資者關係部分，在「活動和演示」子標題下，供收聽本演示錄音的人使用，我提醒您，本文中的言論截至今天，即2024 年2 月29 日，並且不會在此調用後更新。

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 market.

在本次電話會議中，我們將做出前瞻性陳述，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評論有關的陳述。我們的商業租金和更廣泛的農業市場的前景。

We will also discuss certain non-GAAP financial measures, including net operating income, FFO, adjusted FFO or EBITDA, RE and adjusted EBITDA RE. 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 full year 2023 earnings, which is available on our website, Farmland Partners.com and is furnished as an exhibit to our current report on Form eight K dated February 28, 2024. 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.

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 或 EBITDA、RE 和調整後的 EBITDA RE。這些非GAAP 衡量標準的定義以及與最具可比性GAAP 衡量標準的對帳均包含在公司宣布2023 年全年收益的新聞稿中，該新聞稿可在我們的網站Farmland Partners.com 上獲取，並作為我們的附件提供。2024 年 2 月 28 日 表格 8 K 的最新報告。請聽眾注意，這些陳述受到某些風險和不確定性的影響，其中許多風險和不確定性難以預測，並且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，我們建議聽眾審查這些風險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因素。

I would now like to turn the call to our Executive Chairman often calls.

我現在想把電話轉給我們執行主席經常打來的電話。

Thank you, Christine. So megawatt makes or four or five, very general sorts of comments and points about the Company before I turn it over to Luca and James to go into more detail.

謝謝你，克里斯汀。因此，在我將其交給盧卡和詹姆斯進行更詳細的討論之前，兆瓦對該公司做了四到五個非常籠統的評論和觀點。

So the first point is we continue to be significantly undervalued comparing ourselves to the underlying asset value of the portfolio. Land values across the country have continued to go up in the grain producing regions of the country. The growth rate slowed some in 2023, and we think that rate will slow yet again in 2024, but that needs to be taken in the context of in light of the prior years. So in '21 and '22, we saw as rapid appreciation in farmland values as we've probably ever seen in history in the grain growing regions of the country that can't go on forever. So we will see sort of a flattening or plateauing.

因此，第一點是，與投資組合的基礎資產價值相比，我們的價值仍然被嚴重低估。全國糧食主產區土地價值持續上漲。2023 年成長率將放緩，我們認為 2024 年成長率將再次放緩，但這需要結合前幾年的情況來看待。因此，在 21 世紀和 22 世紀，我們看到了該國糧食種植地區農田價值的快速升值，這可能是我們歷史上所見過的，但這種情況不可能永遠持續下去。所以我們會看到某種程度的趨平或穩定。

Yes, in my opinion, as we move into 2024 but what that has led us to and this is an overwhelmingly our row crop oriented portfolio as there is a huge disconnect between the market value of our land in the private markets and the public company trading value of our common stock. And as many of you know, I bought a significant amount of stock personally last year, a company bought back a lot of stock, and we're likely to continue that effort as long as that gap continues.

是的，在我看來，隨著我們進入2024 年，但這導致了我們的結果，這是我們絕大多數以中耕作物為導向的投資組合，因為我們的土地在私人市場上的市場價值與上市公司交易之間存在著巨大脫節我們普通股的價值。正如你們許多人所知，去年我個人買了大量股票，一家公司回購了大量股票，只要差距持續存在，我們就可能會繼續這項努力。

Turning for a moment to specialty crops, we are now in the 2nd year of reasonably strong rainfall on the West Coast, the United States, particularly in California. On that, it will help the water situation and that will help the yield situation. And we believe that we will have pretty strong crops out in those markets of this year, although there continues to be price pressure due to overall planting of many of those commodities across the world, turning to the third point I want to make, which is about cost cutting, despite what I said about the gap between our underlying asset value and the stock price. We are re and we are valued in many ways on a FFO. I frankly think that's incorrect as it relates to our Company, but that is where our rigs are valued. So we must drive AFFO higher, and we're working quite hard to do that. So we have embarked over the last 12 months or so on an aggressive cost-cutting effort, and we are going to continue that effort in 2024. That cost cutting is coming from selective staff reductions, cutting our travel costs, bringing the size of our Board, which is always a challenging thing to do, but we have done it on. I'm going to take a $500,000 compensation cut in the 2024 year at 25% of the compensation I received for 2023, and Luca is going to stay flat in his compensation. These steps really are required for trying to drive AFFO higher as a major shareholder I think like an owner, not an employee and we are going to get this stockprice higher and that requires increasing of AFFO. just to put that cost-cutting effort in context, if you look back to 2022, four, G&A and legal and accounting in our financials, we spent approximately $14.9 million on those two line items in 2022 in the '24 projections. Those two line items add up to 11.9. That's a 20% reduction in just a couple of years. And there will be more to come.

現在談談特種作物，美國西海岸，特別是加州，現在已經進入第二年出現相當強的降雨。就這一點而言，這將有助於改善水資源狀況，也將有助於提高產量。我們相信，今年這些市場的收成將相當強勁，儘管由於世界各地許多此類商品的整體種植而繼續面臨價格壓力，轉向我想說的第三點，即關於削減成本，儘管我說過我們的基礎資產價值與股價之間的差距。我們是 re，我們在 FFO 上在很多方面都受到重視。坦白說，我認為這是不正確的，因為它與我們公司有關，但這就是我們的鑽孔機的價值所在。因此，我們必須推動 AFFO 走高，我們正在努力做到這一點。因此，我們在過去 12 個月左右的時間裡開始積極削減成本，並將在 2024 年繼續這項努力。成本削減來自於有選擇的裁員、削減差旅費用、擴大董事會規模，這始終是一件具有挑戰性的事情，但我們已經做到了。我將在 2024 年將薪酬削減 50 萬美元，相當於我在 2023 年收到的薪酬的 25%，而盧卡的薪酬將保持不變。作為一名大股東，我認為作為一名所有者，而不是一名員工，這些步驟確實是努力推動 AFFO 走高所必需的，我們將使股價走高，這需要增加 AFFO。只是為了把削減成本的努力放在背景中，如果你回顧一下2022 年的財務數據，四、一般管理費用以及法律和會計，在24 年的預測中，我們在2022 年這兩個項目上花費了約1,490 萬美元。這兩個項目加起來為 11.9。短短幾年內就減少了 20%。未來還會有更多。

Turning now to the sales program of the company in '23 and what the what that might look like in '24 on during the 2023 year. We've made many, many asset sales and others will address this in more details on go into it here. But the focus of those asset sales or to unload properties that we think had significant water challenges. This is why we exited so much of our Eastern Colorado portfolio to get rid of properties. We do not think we're appreciating rapidly and to get rid of properties that are very difficult to manage. We will continue on those themes in the 2024 year. There will be materially less asset, say, asset sales in '24 than there were in '23. Largely government driven by tax rules were limited this year to probably around seven transactions. And then any 1030 ones that we do on top of that. So expect sales this year of assets, but don't expect the same quantity as last year. And we want to continue to simplify the portfolio as we do this. It does make the cost reductions easier on the G&A line. It also lowers our property operating expenses in terms of the use of the proceeds from those asset sales some of that money will be recycled into the regions and the markets we like the most, which are generally the grain growing regions of the country and some of that money will be used for debt reduction and some of that money will be used for stock buybacks.

現在談談該公司 23 年的銷售計劃以及 24 年到 2023 年的銷售計劃。我們已經進行了很多很多的資產出售，其他人將在此處詳細討論這個問題。但這些資產出售的重點或我們認為面臨重大水資源挑戰的房產的出售。這就是為什麼我們退出了東科羅拉多投資組合以擺脫房產的原因。我們不認為我們正在快速升值並擺脫那些非常難以管理的財產。我們將在 2024 年繼續這些主題。24 年的資產（例如資產出售）將比 23 年大幅減少。今年主要由政府推動的稅收規則將交易限制在約七筆交易。然後我們在此基礎上執行任何 1030 個操作。因此預計今年的資產銷售量，但數量不會與去年相同。我們希望在此過程中繼續簡化產品組合。它確實使 G&A 線上的成本降低變得更容易。就這些資產出售收益的使用而言，它還降低了我們的財產運營費用，其中一些資金將被回收到我們最喜歡的地區和市場，這些地區和市場通常是該國的糧食種植地區和一些這筆錢將用於減少債務，其中一部分將用於股票回購。

As far as interest costs, our perspective is those savings are going to come to us eventually, we don't know exactly when, but I think we are at the beginning of a rate reduction cycle instead of a rate increase cycle. So when we have excess cash we need to think very carefully about.

就利息成本而言，我們的觀點是，這些儲蓄最終會來到我們身邊，我們不知道確切的時間，但我認為我們正處於降息週期而不是升息週期的開始。所以當我們有多餘的現金時，我們需要非常仔細地考慮。

Do you sort of take the near term jolt of debt reduction, knowing that you just wait, you're going to get an interest cost reduction anyway or do we gain the four or five or maybe even $6 a share that comes from buying back our stock at such deeply discounted light levels. And so that's the trade-off we have to think about in our mind. So when you look at that as a final 0.5, when you look at 2024, if I had a crystal ball. This is what I think that crystal ball would say. I think we'll see in 2024 on the specialty crops, slightly better yields and price than we have had in recent years that is largely due on the yield side to two years of rainfall has solved a lot of agronomic problems and will help those crops on the price side, I think we'll get a modest recovery. Just looking at what's going on in pricing right now on the row crop side of the portfolio. Now we have fixed cash rents. So what's the underlying farmer performance won't directly affect us, but we always care about the profitability of our tenants and you're going to see somewhat lower grain prices and then you have seen in recent years probably reasonably strong yields. But we've seen that cycle over and over again, we will go into a slightly lower commodity price cycle for a couple of years, it will slow the appreciation of farmland values. It will make rent increases more difficult to get, but not impossible. That just won't be as big. And then we'll come out of that cycle and see farmland values surge again, we will continue to lower the overheads of the company, and we will we believe we will see late in this year, a gradual reduction in our interest costs. A substantial amount of our debt is variable, and that will hopefully start to flow through and give us wind at our backs in terms of our AFFO per share. And then the final point of 2024 plan, as I mentioned, is we will continue to make selective asset sales. So those will be of assets that we do not like that much or whenever we get a very high price for any asset, we're willing to let that asset go.

你會接受近期債務減少的衝擊，知道你只要等待，無論如何你都會得到利息成本的降低，或者我們是否會通過回購我們的股票而獲得每股四、五甚至六美元的收益？庫存的折扣如此之低。這就是我們必須在腦中考慮的權衡。所以當你把它看成最終的 0.5 時，當你看 2024 年時，如果我有一個水晶球的話。這就是我認為水晶球會說的話。我認為到 2024 年，我們將看到特種作物的產量和價格比近年來略好，這主要是由於兩年的降雨在產量方面解決了很多農藝問題，並將有助於這些作物的發展在價格方面，我認為我們將適度復甦。只要看看目前投資組合中行作物方面的定價情況即可。現在我們有固定的現金租金。因此，農民的基本表現不會直接影響我們，但我們始終關心租戶的獲利能力，你會看到穀物價格有所下降，然後你會看到近年來可能相當強勁的產量。但我們已經一次又一次地看到這種循環，我們將進入幾年內商品價格略低的周期，這將減緩農地價值的升值。這將使租金上漲變得更加困難，但並非不可能。那隻是不會那麼大。然後我們將走出這個週期，看到農地價值再次飆升，我們將繼續降低公司的管理費用，我們相信我們將在今年稍後看到我們的利息成本逐步下降。我們大量的債務是可變的，這些債務有望開始流動，並在每股 AFFO 方面為我們帶來支持。正如我所提到的，2024 年計畫的最後一點是我們將繼續有選擇地出售資產。因此，這些資產將是我們不太喜歡的資產，或者每當我們以非常高的價格購買任何資產時，我們都願意放棄該資產。

With that, I will turn it over to Luca to make some further remarks.

接下來，我將把它交給盧卡做進一步的評論。

Thank you, Bob.

謝謝你，鮑伯。

And I will further articulate and emphasize some of the points that full array raised in 2023. We really have three main strategic strategic objectives. One was to demonstrate value embedded in our portfolio by selected asset sales, then we wanted to reduce debt. And finally, we wanted to buy back stock at a discount. As to the first strategic objective, we sold about $200 million in assets, generating significant taxable gains to the extent that we actually had to distribute a special dividend in order to meet our requalification requirements. Those are those asset sales were mostly focused on assets that were not a good fit long term for our portfolio. I suppose I was mentioning is because the there were water challenge that they had some uncertainties about long term appreciation potential or because there were about crops that in regions where frankly we do not believe that there was a significant potential for recovery, like, for example, blueberries in Michigan. So we have effectively left the core of our portfolio. We see that as the core of our portfolio, which is the core of the Corn Belt and then the Midwest virtually untouched. And we believe that the the appreciation, the embedded appreciation is actually most significant in that part of our portfolio. Our second objective was reducing that we did. So we reduced that by about $76 million. At the same time, we increased liquidity by about $30 million. So we maintain access to sources of liquidity. And finally, we repurchased about 6.5 million shares at an average price roundabout of $11 and however, you measure the real value of our portfolio on a per share basis, that's a sharp discount to that value. Other things that we've done that were kind of very meaningful in 2023 is that we renew the expiring leases at about 20% increase in rents and, as Paul mentioned, would reduce overhead, a general, a general administrative expenses and legal and accounting by about 15%. Looking forward in 2024, as Paul mentioned, we will continue some selective asset sales will continue to purchase assets, whether whenever we see the good strong opportunities, which always come up will further reduce overhead expenses and the E&O.

我將進一步闡述和強調 2023 年 Full array 提出的一些觀點。我們確實有三個主要戰略目標。一是透過選定的資產出售來展示我們投資組合中嵌入的價值，然後我們希望減少債務。最後，我們想以折扣價回購股票。至於第一個戰略目標，我們出售了約 2 億美元的資產，產生了大量的應稅收益，以至於我們實際上必須分配特別股息才能滿足我們的重新資格要求。這些資產出售主要集中在長期不適合我們投資組合的資產。我想我提到的是因為存在水的挑戰，他們對長期升值潛力有一些不確定性，或者因為坦率地說，我們不相信有很大的複蘇潛力的地區有一些作物，例如， ，密西根州的藍莓。因此，我們實際上已經放棄了投資組合的核心。我們將其視為我們投資組合的核心，即玉米帶的核心，然後是中西部幾乎未受影響。我們相信，升值、內在升值其實在我們投資組合的這一部分中最為重要。我們的第二個目標是減少我們所做的事情。因此我們減少了約 7600 萬美元。同時，我們增加了約3000萬美元的流動性。因此，我們保持獲得流動性來源的管道。最後，我們以 11 美元的平均價格回購了大約 650 萬股股票，但是，如果您以每股為基礎來衡量我們投資組合的實際價值，那是對該價值的大幅折扣。我們在 2023 年所做的其他非常有意義的事情是，我們續約即將到期的租約，租金增加約 20%，正如保羅所提到的，這將減少管理費用、一般管理費用以及法律和會計費用約15%。展望 2024 年，正如 Paul 所提到的，我們將繼續進行一些選擇性資產出售，並將繼續購買資產，無論何時我們看到好的強大機會，總是會出現，這將進一步減少管理費用和 E&O。

As far as our projections go that we put out in our supplemental, there is a degree of variability there. And I always remind you that we grow crops outside. So we tried to be reasonably realistic in our assumptions, but we there is always the potential for some better than or worse than expected returns and Mother Nature can be very capricious.

就我們在補充資料中提出的預測而言，存在一定程度的變異性。我總是提醒你，我們在外面種植農作物。因此，我們試圖在我們的假設中合理地現實，但我們總是有可能獲得比預期更好或更差的回報，而大自然可能非常反覆無常。

With that, I will now turn the call over to our Chief Financial Officer, James Gilligan for his overview of the Company's financial performance gains.

現在，我將電話轉給我們的財務長 James Gilligan，請他概述公司的財務表現收益。

Thank you, Luca. I'm going to cover a few items today, including summary of full year 2023 review of capital structure and interest rates comparison of full year revenue guidance for 2024. I'll be referring to the supplemental package in my remarks. As a reminder, the supplementals available in the Investor Relations section of our website under the SAP at our Events and Presentations.

謝謝你，盧卡。今天我將介紹一些內容，包括 2023 年全年資本結構審查摘要以及 2024 年全年收入指導的利率比較。我將在發言中提到補充包。請注意，補充資料可在我們網站的投資者關係部分的 SAP 活動和演示中找到。

First, I'll share a few financial metrics that appear on page 2. For the full year ended December 31, 2023, net income was up over 160% to $31.7 million and net income per share available to common stockholders increased to $0.55, largely due to gains on disposition of assets. As Luca mentioned a minute ago, FFO was down $8.1 million and FFO per weighted average share was down $0.16, largely due to elevated interest expense and lower revenue in the non fixed payment categories as we will review in a couple of minutes.

首先，我將分享第 2 頁上出現的一些財務指標。截至 2023 年 12 月 31 日的全年，淨利潤增長超過 160%，達到 3,170 萬美元，普通股股東可獲得的每股淨利潤增加到 0.55 美元，這主要歸功於資產處置收益。正如盧卡一分鐘前提到的，FFO 下跌了810 萬美元，FFO 每股加權平均下跌了0.16 美元，這主要是由於利息支出增加和非固定支付類別收入下降，我們將在幾分鐘內回顧這一點。

Next, I will review some of the operating expenses and other items shown on page number five, depreciation, depletion and amortization was higher in 2023 due to more depreciable assets placed into service and approximately $500,000 of adjustments made in the year related to assets placed into service property. Operating expenses were higher in 2023 caused by higher property taxes, including a one-time property tax of approximately $150,000 in the first quarter. That amount was reimbursed by the tenant. In addition, a nonrecurring expense in the second quarter of approximately $140,000 was due to final reconciliation of a cost sharing on the California farm.

接下來，我將回顧第五頁所示的一些營運費用和其他項目，2023 年的折舊、消耗和攤銷較高，因為投入使用的應折舊資產較多，並且當年與投入使用的資產相關的調整約為500,000 美元服務屬性。由於財產稅較高，包括第一季約 15 萬美元的一次性財產稅，導致 2023 年營運費用較高。這筆錢已由租戶償還。此外，第二季約 14 萬美元的非經常性費用是由於加州農場成本分攤的最終調節所致。

General administrative expenses were lower for 2023, primarily due to lower travel expenses and lower compensation expenses. Legal and accounting expenses were lower in 2023 due to lower litigation spend. Impairment of assets in 2023 relates to two items. First, as we covered on last quarter's call, there was a sale transaction to close in early Q4 of 2023 that resulted in the $3.8 million loss. However, the sale was carried over quarter end at [$9.30 million]. So it was considered a held for sale asset at [$9.30 million], and that loss is considered an impairment. Second in the fourth quarter of 2023 after reviewing the portfolio as we do every year, we decided to take a $2 million impairment on one farm in California due to our estimate of a decrease in value gain on dispositions was up significantly compared to 2022, demonstrating the appreciation of farmland sales values over net book value. It should be noted we deferred an additional gain of $2.1 million that we think we will recognize in 2024 interest expense increase in '23 due to higher rates. Income tax was a benefit in 2023 relative to an expense in 2022. This was caused by an adjustment within the third quarter of 2023 adjustments that were made to prior period estimates Next, I'll skip ahead to page 12 to make a couple of comments about our capital structure. Total debt at December 31, 2023, with $363.1 million, down approximately $60 million from the end of the third quarter and down approximately $110 million from the end of the second quarter. Floating rate debt net of the swap as a percent of total debt stood at approximately 13% at the end of the year. That's down from approximately 24% at the end of the third quarter and down from approximately 32% at the end of the second quarter. Fully-diluted share count as of February '23 was 49.2 million shares we had undrawn capacity on the lines of credit of $201 million at the end of 2023. In 2024, we have three MetLife rate resets on debt totaling approximately $44 million. That's loans Number 9, 11 and 12 shown on the table.

2023 年一般管理費用較低，主要是因為差旅費用和補償費用減少。由於訴訟支出減少，2023 年法律和會計費用較低。2023年資產減損涉及兩項。首先，正如我們在上個季度的電話會議中提到的那樣，有一項銷售交易將於 2023 年第四季初完成，導致損失 380 萬美元。然而，該銷售結轉至季末[930 萬美元]。因此，它被視為持有待售資產 [930 萬美元]，而該損失被視為減損。第二，在像每年一樣審查投資組合後，我們決定在2023 年第四季度對加州的一個農場進行200 萬美元的減值，因為我們對處置價值增益下降的估計與2022 年相比顯著上升，這表示農地銷售價值超過帳面淨值的升值。應該指出的是，我們推遲了 210 萬美元的額外收益，我們認為由於利率上升，我們將在 2024 年確認 23 年利息支出的增加。相對於 2022 年的支出，所得稅在 2023 年是一項收益。這是由於 2023 年第三季對前期估計進行的調整。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 12 月 31 日的債務總額為 3.631 億美元，比第三季末減少約 6,000 萬美元，比第二季末減少約 1.1 億美元。截至年底，扣除掉期費用的浮動利率債務佔總債務的比例約為 13%。這比第三季末的約 24% 有所下降，也比第二季末的約 32% 有所下降。截至 2023 年 2 月，完全稀釋後的股票數量為 4,920 萬股，截至 2023 年底，我們的信貸額度為 2.01 億美元，未動用容量為 4,920 萬股。2024 年，我們對大都會人壽的債務利率進行了三次重置，總金額約為 4,400 萬美元。這是表中顯示的第 9、11 和 12 號貸款。

Page 13 provides an overview of our income statement and the building blocks that generate revenue and cost of goods sold. Please note that our GAAP financials have a small presentation change this quarter. Tenant reimbursements are now included in rental income on the income statement in Note two of the 10-K, we show the components of rental income, fixed farm rent, solar, wind, recreation, tenant reimbursements and variable rent. It is very similar to what we've been providing the supplemental, but it is a small change from the past 10-K's and 10-Q's.

第 13 頁概述了我們的損益表以及產生收入和銷售成本的組成部分。請注意，本季度我們的 GAAP 財務數據有一個小的表述變化。租戶報銷現在包含在損益表的租金收入中，在 10-K 註釋二中，我們顯示了租金收入、固定農場租金、太陽能、風能、娛樂、租戶報銷和可變租金的組成部分。它與我們一直提供的補充內容非常相似，但與過去的 10-K 和 10-Q 相比有一個小變化。

Page 14, we show these building blocks for the years 2022 and 2023 with comments at the bottom to describe the differences between the periods, a few points to highlight our fixed farm rent increase between the periods as we acquired properties in 2022 and renewed leases in 2022 and 2023 that was offset by dispositions in 2023. Solar wind and recreation changes were caused primarily by rent on land with a large solar project in the state of Illinois. The project was under construction from the third quarter of '22 through the fourth quarter of '23, causing an increase in rent during that time. There was an outsized increase in the fourth quarter of 2023 when that project began operations and ended its construction phase Tenant reimbursement increased in the first quarter of '23 with a one-time property tax assessment was mentioned a little a couple of minutes ago of $150,000 that was reimbursed by the tenant. Variable payments were down in the first and second quarters of '23 due to grapes row crops, citrus and tree nuts. Q4 '23 was down compared to 2022, largely due to almonds direct operations as a combination of crop sales, crop insurance and cost of goods sold was down relative to 2022, largely due to citrus and walnuts. Other items being decreased due to lower auction and brokerage activity compared to 2022.

第14 頁，我們展示了2022 年和2023 年的這些構建模組，並在底部添加了評論來描述各時期之間的差異，有幾點強調了我們在2022 年收購房產並在2022 年續簽租約時各時期之間的固定農場租金上漲。2022 年和 2023 年的支出被 2023 年的處置所抵銷。太陽能風和娛樂活動的變化主要是由伊利諾伊州一個大型太陽能計畫的土地租金引起的。該項目從 22 年第三季到 23 年第四季正在建設中，導致期間租金上漲。2023 年第四季有所增加，幾分鐘前提到一次性財產稅評估為 150,000 美元這筆費用已由租客償還。由於葡萄中耕作物、柑橘和木本堅果的影響，23 年第一季和第二季的可變付款額有所下降。與 2022 年相比，23 年第 4 季有所下降，主要是由於農作物銷售、農作物保險和銷售商品成本的綜合影響，杏仁直接運作相對 2022 年有所下降，這主要是由於柑橘和核桃。與 2022 年相比，由於拍賣和經紀活動減少，其他項目也有所減少。

In summary, all the items that comprise fixed payments were up year over year. The other categories were down.

總而言之，構成固定付款的所有項目均較去年同期成長。其他類別均有所下降。

Next on page 15, we show the outlook for 2024 using the same format as previous pages. There are assumptions listed at the bottom we have three acquisitions targeted for the first quarter of 2024 no other transactions are included in these projections.

接下來在第 15 頁，我們使用與前幾頁相同的格式來展示 2024 年的展望。底部列出了一些假設，我們的目標是 2024 年第一季進行三項收購，這些預測中不包括其他交易。

On the revenue side, fixed format changes reflect the full year impact of 2023 dispositions plus the three Q. one 2024 acquisitions that we're targeting, plus, of course, lease renewals from late last year. Solar wind and recreation decreases relative to '23 due to the absence of the solar rent associated with the 2023 construction project that was mentioned a minute ago, Tenant reimbursements decreased because of farm sales in 2023, along with the absence of that onetime tax and reimbursements that occurred in the first quarter of 2023.

在收入方面，固定格式的變化反映了 2023 年處置的全年影響，加上我們目標的 2024 年第一季的三項收購，當然還有去年年底的租約續約。由於沒有與一分鐘前提到的 2023 年建設項目相關的太陽能租金，太陽能風能和娛樂活動相對於 23 年有所減少，由於 2023 年農場銷售，以及沒有一次性稅收和報銷，租戶報銷減少這發生在2023 年第一季。

Management fees and interest income increased due to loans issued in the fourth quarter of 2023. Variable payments decreased due to the outlook for citrus plus the absence of tree nut and great farms that were sold during last year.

由於2023年第四季發放的貸款，管理費和利息收入增加。由於柑橘的前景以及去年出售的堅果和大型農場的缺乏，可變付款減少。

Direct operations, again, that's cross sales. Both crop insurance less cost of goods sold is up slightly due to higher expected performance in citrus farms under direct operations. Other items, small improvements expected for auction and brokerage in 2024.

再次強調，直接營運就是交叉銷售。由於直接經營的柑橘農場的預期業績較高，農作物保險扣除銷售成本後均略有上升。其他項目，預計 2024 年拍賣和經紀業務將出現小幅改善。

On the expense side, property operating expenses decrease due to lower property taxes largely because of asset sales last year lower insurance and other items. General and administrative decreases with lower spend on compensation, travel and marketing in 2024 legal accounting and small changes due to cost inflation and estimates of litigation spend. Interest expense is lower due to rates and lower debt balances. Weighted average shares decrease with the full year impact of the 2023 share buybacks as Luca mentioned a minute ago, this impact on FFO in the $7.6 million to $11.1 million range or $0.15 to $0.23 per share, an increase over 2023. Hopefully, this helps describe where we stand given what we know today. We'll keep you updated as we progress throughout the year.

在費用方面，由於財產稅降低，財產營運費用減少，這主要是由於去年資產銷售的保險和其他項目減少。由於 2024 年法律會計的薪酬、差旅和行銷支出減少，以及成本上漲和訴訟支出估計造成的小幅變化，一般和行政費用有所減少。由於利率和債務餘額較低，利息支出較低。正如Luca 一分鐘前提到的，隨著2023 年股票回購對全年的影響，加權平均股價下降，這對FFO 的影響在760 萬美元至1110 萬美元之間，即每股0.15 美元至0.23 美元，比2023 年增加。希望這有助於描述我們目前所知道的情況。隨著我們全年的進展，我們將隨時向您通報最新情況。

That wraps up my comments for this morning. Thank you all for participating. Operator, you can now begin the Q&A session.

我今天早上的評論就到此結束。感謝大家的參與。接線生，您現在可以開始問答環節了。

If you would like to ask a question, press star followed by the number one on your telephone keypad.

如果您想提問，請按星號，然後按電話鍵盤上的數字 1。

And your question comes from the line of Scott Fortune with Roth MKM. Your line is open.

你的問題來自 Scott Fortune 和 Roth MKM 的對話。您的線路已開通。

Yes, good morning and thank you for the questions. On this one you can look at your portfolio and kind of since look at the pipeline there of potential assets that they're out in the market and within your network? And are you continuing to see more opportunities, obviously, with the focus of the Corn Belt, that's kind of where you've talked about moving away from from the water-stressed or are those other properties and the value there in your portfolio? And then just kind of follow up on that kind of a mix between row crops and the permanent crops in any change to that mix as you look at the potential pipeline or acquisitions there?

是的，早上好，謝謝您的提問。在這一點上，您可以查看您的投資組合，然後查看它們在市場上和您網路內的潛在資產的管道？顯然，您是否會繼續看到更多機會，重點是玉米帶，您曾談到擺脫缺水的地區，或者您的投資組合中還有其他房產和價值嗎？然後，當您考慮潛在的管道或收購時，跟進行間作物和永久性作物之間的這種混合，看看這種混合是否有任何變化？

Yes. So this is Paul, and I'll take that question. So first one is just to define our view of the row crop regions that we find attractive. It's going to be the core of the Midwest, the corn belt in Illinois, Indiana, Missouri, at the heart of the country. We will also continue, though to make acquisitions in the Delta, Arkansas, Louisiana, Mississippi area. And we will make acquisitions in the southeastern United States largely that would be the Carolinas, Georgia, Florida, maybe Alabama. And those regions are very strong grain producers. They have relatively high quality tenants in all of those regions. And water is seldom if ever an issue in those regions, we think they will continue to appreciate rapidly and as farmland becomes ever more scarce and they are very, very easy to operate, particularly in the Midwest, very low property operating costs, very low overheads to manage those properties very consistent and predictable rents and rent growth. So we are highly attractive to those regions and we'll continue to invest there.

是的。這是保羅，我來回答這個問題。因此，第一個就是定義我們對有吸引力的中耕作物區域的看法。它將成為中西部的核心，伊利諾伊州、印第安納州、密蘇裡州的玉米帶，位於國家的中心。我們也將繼續在三角洲、阿肯色州、路易斯安那州、密西西比州地區進行收購。我們將在美國東南部進行收購，主要是卡羅來納州、喬治亞州、佛羅裡達州，也許還有阿拉巴馬州。這些地區是非常強大的糧食生產國。他們在所有這些地區都有相對高品質的租戶。在這些地區，水很少成為問題，我們認為，隨著農田變得越來越稀缺，它們將繼續迅速升值，而且它們非常非常容易運營，特別是在中西部，房地產運營成本非常低，非常低管理這些物業的管理費用非常一致且可預測的租金和租金成長。因此，我們對這些地區極具吸引力，我們將繼續在那裡投資。

So what that means by implication is that the drier further west parts of the U.S. So think of that, as you know, starting about halfway across Nebraska, water starts to become a challenge on Eastern Nebraska, really no problem, but the Western Nebraska, Eastern Colorado, so on and so forth, relatively dry. We still own quite a few properties in those regions, but we will continue to lighten up on that exposure. We may five years from now still on some farms there, but it will be a lower percentage of the overall portfolio than it is today.

這意味著美國西部地區更加乾燥。想想看，如你所知，從內布拉斯加州的大約一半開始，水開始成為內布拉斯加州東部的一個挑戰，這確實沒問題，但內布拉斯加州西部，科羅拉多州東部等地相對乾燥。我們在這些地區仍然擁有相當多的房產，但我們將繼續減少該風險敞口。五年後，我們可能仍在那裡的一些農場上開展業務，但佔整體投資組合的比例將低於今天。

Now moving closer to the West Coast. The West Coast is a mixed mixed bag on the some of the places I have very, very strong water, have surface water rights, groundwater rights that make the farms highly productive. It's a unique climate environment on. So again, five years from now, we may still own some farms in California, but it will be a lower percentage by quite a bit of the overall portfolio. And the reasons for that are number one, water Number two, we do think there is significant over planting of many of those commodities going on across the world, which leads to tough pricing. We don't think there's any way to solve the volatility problem with regard to those farms, it's very hard to get cash rents on those farms. Therefore, we have a lot of crop share and the crop share is number one, volatile and number two complex to manage. So if we can lighten up on that it feeds back into this sort of simplify the portfolio, make it more stable and predictable from an investor perspective and also easier and less expensive to manage. I hope that answers your question, Scott?

現在距離西海岸越來越近了。西海岸是個魚龍混雜的地方，有些地方的水源非常非常豐富，擁有地表水權、地下水權，這些都使農場的生產力很高。這是一個得天獨厚的氣候環境。所以，五年後，我們可能仍然在加州擁有一些農場，但在整體投資組合中所佔的比例將會較低。原因是第一，水第二，我們確實認為世界各地許多此類商品的種植嚴重過度，這導致定價困難。我們認為沒有任何辦法可以解決這些農場的波動問題，這些農場很難獲得現金租金。因此，我們有許多作物份額，而作物份額是第一大的，波動性最大，第二大的是管理複雜性。因此，如果我們能夠減輕這一點，它會反饋到這種簡化的投資組合中，從投資者的角度來看，使其更加穩定和可預測，並且管理起來也更容易、成本更低。我希望這能回答你的問題，斯科特？

Yes. Again, it's really good color. Obviously, did opportunities as you look at the row crops going forward here. And just to follow up on that and looking at our pipeline and the potential acquisitions. What's the environment here from the farmer standpoint or other interested parties or partners here as far as the financing at these higher rates?

是的。再說一遍，顏色真的很好。顯然，當你看看這裡的中耕作物時，確實有機會。只是為了跟進並研究我們的管道和潛在的收購。從農民或其他利害關係人或合作夥伴的角度來看，就以較高利率融資而言，這裡的環境如何？

Right from that standpoint, processing and close on these assets to deliver. It's obviously more challenging, but just kind of help us understand the environment for that side of things.

從這個角度來看，處理並關閉這些資產以進行交付。這顯然更具挑戰性，但只是幫助我們了解這方面的環境。

Yes. So And James, or Luca may want to add to this, but but ag land as a marketplace is completely different. Then all other commercial real estate assets on there is no, with the lack of borrowing capacity. We, for example, are have liquidity of approximately $200 million available to us right now on the lenders in that space, both traditional banks and farm credit and Farmer Mac, some of the large insurance companies that lend into that space are active and there is absolutely money available. The challenge is that and despite the fact that I am a huge believer in the appreciation story of agriculture. It is frankly, as a person as a personal matter, made me wealthy over the last 20 or 30 years, but you cannot run to negative spread on borrowing cost versus current yield off of a farm property. I'm frankly willing to run a negative spread, but today that's negative spread might be four or five percentage points, not one or two. And so it makes it challenging to do acquisitions. There's plenty of opportunity, but our cost capital makes it makes it difficult. So our acquisition program is likely to be limited to very specific transactions where for some reason, we think there's deep value opportunity and those do come along or on. It's an add-on property philosophically, we, as an institution, believe that increasing scale is well rewarded over time, both in higher rents and higher overall land values.

是的。所以詹姆斯或盧卡可能想補充這一點，但作為市場的土地是完全不同的。那麼其他商業地產資產就沒有了，缺乏借貸能力。例如，我們現在在該領域的貸方（傳統銀行、農業信貸和 Farmer Mac）上擁有約 2 億美元的流動性，一些向該領域提供貸款的大型保險公司很活躍，並且有絕對有錢可用。挑戰在於，儘管我非常相信農業的升值故事。坦白說，作為個人和個人事務，這讓我在過去 20 或 30 年變得富有，但藉貸成本與農場財產當前收益率之間的利差不能出現負利差。坦白說，我願意實行負利差，但今天的負利差可能是四、五個百分點，而不是一兩個百分點。因此，收購變得具有挑戰性。機會很多，但我們的成本資本使其變得困難。因此，我們的收購計劃可能僅限於非常具體的交易，出於某種原因，我們認為存在深刻的價值機會，而這些機會確實會出現或出現。從哲學上講，這是一個附加財產，我們作為一個機構相信，隨著時間的推移，擴大規模會得到很好的回報，無論是更高的租金還是更高的整體土地價值。

So on a profit, some of the acquisitions we've done in the first quarter, for example, will come will have been a farm adjoining something we already know. And we always will will reach very deep trying to get those deals done.

因此，在獲利方面，例如，我們在第一季度進行的一些收購將是一個毗鄰我們已知的農場的農場。我們將始終深入努力完成這些交易。

Luca, James, I'd just add, Scott, that I to echo Paul's point. The mortgage penetration in our in our sector, if you think about it, unlike an LTV basis, is like 10%. That's according to USDA data, so much lower leverage in the system than you would see in other areas of commercial real estate, farmers are look outlook for property lease down a little bit, still very strong relative to pre sort of historical averages on the last three years have kind of been like the top three years of farmer profitability. This year might be number five in terms of that rank on. So while it's down a little bit, farmers are still doing pretty well, but maybe not as well. And so maybe to your question about competition from acquisitions, maybe people won't be as likely to buy a farm that they would have been in '23 or 2022, but still still quite a bit of appetite still folks doing pretty darn well.

盧卡、詹姆斯，我想補充一點，史考特，我是為了回應保羅的觀點。仔細想想，我們這個產業的抵押貸款滲透率與 LTV 不同，約 10%。根據美國農業部的數據，該系統的槓桿率比商業房地產其他領域的槓桿率低得多，農民預計房地產租賃前景略有下降，但相對於去年的歷史平均水平仍然非常強勁這三年有點像農民獲利能力最高的三年。就該排名而言，今年可能排名第五。因此，雖然有所下降，但農民的表現仍然不錯，但可能沒有那麼好。因此，也許對於你關於收購競爭的問題，也許人們不會像 23 年或 2022 年那樣購買農場，但仍然有很大的興趣，人們仍然做得非常好。

Thank you. If I may add on to that one more real quick one. You mentioned after few years of a Sea Farm values and rent increases going forward here, kind of is there any kind of preliminary expectation for the rent increases levels in 2024? Obviously, you said 20% here last year, but just kind of a ballpark that if we can look forward into '24 here.

謝謝。如果我可以再增加一個真正的快速的。您提到幾年後海洋農場的價值和租金上漲，對 2024 年的租金上漲水準有什麼初步預期嗎？顯然，你去年在這裡說過 20%，但如果我們可以展望 24 年的話，這只是一個大概的數字。

Yes, I think you're going to see in 2024. I'll give you the answer and I'll give you the rationale. I think it will be more in the 5% to 10% bracket on those rents. We have to roll over in the 2024 year. It's still a little bit early to say, but that would be my estimate that is sort of closer to historic norm than the last couple of years have been, but I think we're going to kind of revert to that historic norm and here are the reasons for that. First sort of a portfolio specific reason we started to push rent increases very strongly now three years ago. And so we've had three years of very strong rent increases. So when we start the re-leasing cycle, this time it will be off a relatively high base already because we got three years ago. I forget the exact statistic, but in a high single digit high single digit, the jumps in rents that year. And then an even two years ago, we got like 15%, I think and then this year, like 20%. And so we're going to be coming off a higher base. So I think 5% to 10% is kind of the right rate level than during the macro environment. Rents are a function of a farmer's three to year view of farm profitability, and that's going to be a little more negative due to lower grain prices than it has been in the past couple of years on where as land values, and this is important point. Land values are a function of a farmer's view of the 50 year five zero year outlook for farmland appreciation. So it's farmland values are largely unaffected by by crop price declines, but rental markets are somewhat more effective. Thus, we'll get a slightly lower increase in rents than we've gotten in the last few years.

是的，我想你會在 2024 年看到。我會給你答案，我也會告訴你理由。我認為租金的 5% 到 10% 範圍內會更多。我們必須在2024年延期。現在說還為時過早，但這只是我的估計，比過去幾年更接近歷史常態，但我認為我們將恢復到歷史常態，這裡是原因。首先是三年前我們開始大力推動租金上漲的具體原因。因此，我們的租金連續三年大幅上漲。因此，當我們開始重新租賃週期時，這次它將偏離三年前相對較高的基數。我忘記了確切的統計數據，但那一年的租金漲幅是高個位數。甚至兩年前，我想我們的比例是 15%，今年是 20%。所以我們將會有一個更高的基礎。所以我認為 5% 到 10% 是比宏觀環境下更合適的利率水準。租金是農民對農場盈利能力的三年看法的函數，由於穀物價格比過去幾年土地價值下降，租金的負面影響會更大一些，這是重要的一點。土地價值是農民對 50 年 5 零年農地升值前景的看法的函數。因此，它的農地價值基本上不受農作物價格下跌的影響，但租賃市場在某種程度上更有效。因此，我們的租金增幅將比過去幾年略低。

Guy, that's very helpful. Thank you for all the color here. I'll jump back in the queue.

夥計，這很有幫助。感謝這裡所有的顏色。我會跳回到隊列中。

Your next question comes from the line of Alex Fagan with Baird. Your line is open.

你的下一個問題來自 Alex Fagan 和 Baird 的對話。您的線路已開通。

Hi, good morning and thanks for taking my question. And first one for me is which staffing roles in the company were reduced? Were they corporate specific or property-specific? Any more color on that would would be great.

你好，早安，感謝您提出我的問題。對我來說，第一個問題是公司減少了哪些人員角色？它們是公司特定的還是財產特定的？任何更多的顏色都會很棒。

Yes, they were they were corporate specific. I may have will almost always be. We are a very thin overall team here on. We are in the read itself, 15 employees, something like that. We have the farm, the brokerage business in Champaign, Illinois, a different group of staff, but we're running this pool of assets of the and all approximately $1.5 billion with a tiny tiny staff. But the cuts have been in the sort of headquarters rules, if you will, not out in the field. I don't think we could get any sooner there than we are and these cuts are not easy to make. And everybody in the tight team like this was you can't hide in a company this size, everybody was already working quite hard and now people are working a little bit harder. So specific roles were, you know, one role was a somewhat junior person in our operations functions here in the Denver office left to go back to graduate school. And we just didn't replace. We have had a very capable of PR and IR sort of person, I say IR, not not talking dollars, you'd necessarily that's really Luca on James and to some degree me, but one of the much smaller investors that might call in our in our Internet presence for us as our social media process. And we've left that person go and still have access to the access to them as a consultant on travel was down significantly from the past year and then the we're not as acquisitive. So just literally, there's not as much flying around as it used to be some.

是的，它們是特定於公司的。我可能幾乎總是如此。我們這裡的整體團隊非常薄弱。我們本身就在讀，有 15 名員工，類似的東西。我們在伊利諾州尚佩恩擁有農場和經紀業務，還有不同的員工團隊，但我們僅用極少的員工來運作這個價值約 15 億美元的資產池。但如果你願意的話，削減是按照總部的規定進行的，而不是在現場進行的。我認為我們不可能比現在更早實現這一目標，而且這些削減並不容易實現。像這樣緊密的團隊中的每個人都無法隱藏在如此規模的公司中，每個人都已經非常努力地工作，現在人們正在更加努力工作。所以具體的角色是，你知道，其中一個角色是我們丹佛辦公室營運職能部門中的一個初級人員，離開後回到研究所。而我們只是沒有更換。我們有一個非常有能力進行公關和投資者關係的人，我說投資者關係，不是不談論美元，你一定是詹姆斯的盧卡，在某種程度上是我，但可能會邀請我們的小得多的投資者之一我們的互聯網存在作為我們的社交媒體流程。我們已經讓那個人離開了，但仍然可以接觸到他們，因為旅行顧問的數量比去年大幅下降，然後我們就不那麼貪婪了。所以從字面上看，現在的飛行次數已經不像以前那麼多了。

And then and then the other major change as you look to the '24 year is we had a Board of nine and now we had a billboard of five when the annual meeting occurs or the Board will have been reduced to five clean asking the directors believe we just not re nominated quite a few less than we had in the past. And that's why it's always a hard discussion that the directors we had were great directors, but we had we have to get costs under control and directors are one of the costs.

然後，當你展望24 年時，另一個重大變化是我們有一個由九人組成的董事會，現在我們在年度會議召開時有一個由五人組成的廣告牌，否則董事會將減少到五人，詢問董事們是否相信我們只是重新提名的人數比過去少了很多。這就是為什麼我們的董事都是偉大的董事一直是一個艱難的討論，但我們必須控製成本，而董事就是成本之一。

Yes, that's great color. Thank you. And just one more for me. You kind of talked about rents increases in 2024, 5% to 10%, which is closer to historical norm. Can you confirm, is that what's embedded in the guide for 2024?

是的，那是很棒的顏色。謝謝。還給我一個。您談到了 2024 年租金上漲 5% 到 10%，這更接近歷史正常水平。您能否確認，這是否包含在 2024 年指南中？

So a couple of things to bear in mind. Our rent renewal season is at the end of the year. So kind of think how we through the end of the year, but a lot of that is coming in November and December. So the impact of rent rolls on 2024 is rather small. And when we make projections for 2024, we make a simplifying assumption and actually keep them generally flat. So the increases are not really baked in at this point.

因此，有幾點需要牢記。我們的續租季是在年底。想想我們如何度過今年年底，但其中許多都將在 11 月和 12 月發生。因此，租金滾動對 2024 年的影響相當小。當我們對 2024 年進行預測時，我們做了一個簡化的假設，實際上使它們保持基本持平。因此，此時此刻，漲幅還沒有真正體現出來。

Let me let me add something to that, though, because it's very important just to add to what James said, the rent increases you see in the 2024 projections are the 2023 rent increases that are already contracted for and fully leased. That's not a guess the Red 5% to 10% I'm talking about is what James just said will happen next November, and that will affect 2025 projection so that there's not a there's not a rent roll risk embedded in those projections because the leases are already signed that affect the '24 protection that are going down.

不過，讓我補充一點，因為補充詹姆斯所說的非常重要，您在 2024 年預測中看到的租金上漲是已經簽訂合約並完全出租的 2023 年租金上漲。我所說的紅色 5% 到 10% 並不是猜測，詹姆斯剛才說明年 11 月將會發生這種情況，這將影響 2025 年的預測，因此這些預測中不會存在租金滾動風險，因為租賃已經簽署了影響正在下降的'24 保護的協議。

That makes sense now.

現在這是有道理的。

Yes, it does.

是的，它確實。

Thank you, guys. That's it for me.

感謝你們。對我來說就是這樣。

Okay.

好的。

Your next question comes from the line of John Massocca with B. Riley. Your line is open.

你的下一個問題來自 John Massocca 和 B. Riley 的對話。您的線路已開通。

Good morning.

早安.

Warning.

警告。

Do you can't limit on the number of transactions you could possibly do and just given kind of tax circumstances in 2024 remaining, just a bracket them on.

您是否無法限制您可能進行的交易數量，並且考慮到 2024 年剩餘的稅收情況，只需將它們放在括號中即可。

Yes.

是的。

And what that means in terms of disposition proceeds?

這對處置收益意味著什麼？

Yes, you know, I guess it's really really hard to say. So we have the seven transaction limit and we've actually already used one of them. So we've got six left and we used it, unfortunately, is a very small transaction, but it was a partial ownership of something we own that the controlling party sold. So we've taken all1 party off the table. So in the beginning of the year. We're not likely to do transactions unless they're pretty good size, $25 million or bigger. And that always exceptions, of course, have a great offer came in, but we don't want to burn through that opportunity to make asset sales from that too quickly. Obviously, we have a 1031 opportunity, which helps us a little bit, but as we get late in the year, we will probably shrink the hurdles of size for transactions we might do if we still have some left on some room left. But if I had to give you a number, it would be in the neighborhood of $50 million worth of asset sales during the year. But like I said, it's not modeled into the '24 projections, no assumptions of debt reduction due to asset sales or stock buybacks as modeled in because it's incredibly hard to predict. And if we did 50 of sales, we probably do 10 more purchases. So net 40, you know, if you have if you were trying to think about how to how to work with it, I'd say half of it will go to stock buybacks and half of that reduction. But at that, that's incredible price dependant in terms of the stock and interest rate outlook dependent in terms of debt.

是的，你知道，我想這真的很難說。因此，我們有七個交易限制，而且我們實際上已經使用了其中之一。所以我們還剩下六個，不幸的是，我們使用了它，這是一筆非常小的交易，但它是控制方出售的我們擁有的東西的部分所有權。所以我們已經把所有一方排除在外了。所以在年初的時候。我們不太可能進行交易，除非交易規模相當大，達到 2500 萬美元或更大。當然，總是有例外，有一個很好的報價，但我們不想浪費這個機會來過快地出售資產。顯然，我們有 1031 的機會，這對我們有一點幫助，但隨著今年晚些時候，如果我們還有一些空間，我們可能會縮小我們可能進行的交易規模的障礙。但如果我必須給你一個數字，那麼這一年的資產出售價值約為 5000 萬美元。但就像我說的，它沒有建模到 24 年的預測中，也沒有假設由於資產出售或股票回購而減少債務，因為它很難預測。如果我們進行了 50 次銷售，我們可能會再進行 10 次採購。所以淨 40，你知道，如果你想考慮如何使用它，我想說一半將用於股票回購，一半將用於減持。但就股票而言，這是令人難以置信的價格依賴，而利率前景則依賴債務。

I think that's very helpful. And then as I kind of think about the outlook for variable rent payments in 2024, how much of that decline versus 2023 is based on your yield and pricing outlook? And how much of that is already kind of seen it from your asset sales that occurred in '23?

我認為這非常有幫助。然後，當我思考 2024 年可變租金支付的前景時，與 2023 年相比，這種下降有多少是基於您的收益率和定價前景？其中有多少已經從 23 年發生的資產出售中看到了？

I'll let James or Luca take that and then I'll add to it if I need to, but probably some more specific numbers.

我會讓詹姆斯或盧卡拿走這個，然後如果需要的話我會添加它，但可能是一些更具體的數字。

It's helpful. So somebody else can handle a consumer-first.

這很有幫助。所以其他人可以處理消費者優先的問題。

Yes, so on, it's a mix of we sold a couple of great farms in 2023. So on some of the variable rent that in past years we received with respect to grapes goes away, we sold a couple of tree nut farms, which would have the same sort of characteristics that variable rent goes away. And in addition to that, we have a large citrus farm that performed pretty well in 2023. And that is just in some ways, reverting a little bit historical means. So projected outlook for that sort of citrus farm is a little bit lower. Again, good surprises to the upside, good surprises to the downside, but we're, I think, being prudently conservative there on that. That's really what's impacting the variable payments change from year to year.

是的，等等，這是我們在 2023 年出售了幾個很棒的農場的混合體。因此，在過去幾年我們收到的有關葡萄的一些可變租金消失的情況下，我們出售了幾個堅果農場，這些農場具有與可變租金消失相同的特徵。除此之外，我們還有一個大型柑橘農場，在 2023 年表現相當不錯。這只是在某些方面，恢復了一點歷史意義。因此，此類柑橘農場的預期前景要低一些。再說一遍，上行有驚喜，下行也有驚喜，但我認為，我們對此持謹慎保守態度。這確實是影響每年可變支付變化的因素。

Yes, just to build on that, as I was mentioning earlier, it kind of we grow crops outside. So on the variable rent, we rely on the best expertise out there that we have access to in terms of coming up with an outlook on price for the market and on yield for our farms. But at this point, we are just relatively wild guesses or deep. Keep in mind that the yield can be affected very strongly by late season kind of weather events. So even right, if right now in certain funds that we have the outlook on crop yields looks potentially outstanding or that might be kind of tempered further down the road and on price. Often the ultimate price that we receive is determined by marketing to the packing houses for permanent crops that is very much leading in this year, if not early into the following year, even so we rely on the best information that we have. But you know, remind remember that there can be some significant variability, both on the upside and on the downside that we tried. We do our best to kind of take a middle of the road of the information that we have.

是的，在此基礎上，正如我之前提到的，我們在外面種植農作物。因此，在可變租金方面，我們依靠我們所能獲得的最佳專業知識來制定市場價格和農場產量的前景。但在這一點上，我們只是比較大膽的猜測或是深入的。請記住，產量可能會受到季末天氣事件的強烈影響。因此，即使現在在某些基金中，我們對農作物產量的前景看起來可能很出色，或者在未來和價格上可能會進一步受到影響。通常，我們收到的最終價格是透過向包裝廠推銷多年生作物而確定的，這種作物在今年（如果不是明年年初）非常領先，但即便如此，我們仍然依賴我們所掌握的最佳資訊。但您知道，請記住，我們嘗試過的有利和不利方面都可能存在一些重大變化。我們盡最大努力在我們所掌握的資訊中採取中間路線。

And that makes sense. Then maybe one last one on balance sheet. Can you just remind us the process and maybe the pricing outlook for some of the MetLife Term Loan resets in '24?

這是有道理的。然後也許是資產負債表上的最後一項。您能否提醒我們 24 年大都會人壽定期貸款重置的流程以及定價前景？

Yes. So generally, and we've got we've got a little bit more detail in Note seven to our 10-K when it's filed later date, if you'd like that, but generally does MetLife traunches on prices, the spread to treasuries on depending on the duration of the resets. If we're talking a three year reset, we look at three year treasuries, five year, five year treasuries, et cetera. We have historically been a spread over treasuries in kind of a one 80 to 200 basis points over on a given where the world is today. We're probably on the high side of that where we tried as hard as we can to negotiate that down. And we've got some we certainly do what we can to bring competitive lenders to bear to make sure we're getting good execution. And so that's how we think about it. We've got a good dynamic with all the lenders. Metlife included. We engage with them early and often on. And we look out and really see where we can get best execution. So last year, we most of our resets. We did sort of three years towards the end of the year. We rolled one out to seven years to get a little bit more term. And throughout all these discussions, we maintain at least 20% and sometimes up to 50% ability to prepay these MetLife lines in any calendar year without penalty. So to the extent that rates move in our favor and we'd like to pay down on the fixed side, we can do that with really all of these lines, it's somewhere in that sort of 20% to 50% range every year.

是的。所以一般來說，如果您願意的話，我們會在稍後提交的 10-K 註釋七中提供更多詳細信息，但一般來說，大都會人壽會在價格、國債利差方面進行調整取決於重置的持續時間。如果我們談論三年期重置，我們會關註三年期國債、五年期國債、五年期國債等等。從歷史上看，我們對國債的利差在當今世界的特定情況下為 80 到 200 個基點。我們可能處於偏高的位置，我們盡了最大努力透過談判降低了這一點。我們已經採取了一些措施，我們當然會盡我們所能讓有競爭力的貸款機構承擔責任，以確保我們獲得良好的執行。這就是我們的想法。我們與所有貸方都有良好的合作關係。包括大都會人壽。我們很早就和他們經常接觸。我們會仔細觀察並真正了解哪裡可以得到最佳執行。所以去年，我們大部分時間都進行了重置。到年底我們已經做了三年了。我們將其中一項延長至七年，以獲得更多的期限。在所有這些討論中，我們在任何日曆年都保持至少 20%、有時高達 50% 的預付這些大都會人壽保險額度的能力，而不會受到處罰。因此，如果利率變動對我們有利，並且我們願意支付固定金額，我們可以用所有這些線路來做到這一點，每年的利率都在 20% 到 50% 的範圍內。

That's very helpful. And that's it for me. Thank you very much.

這非常有幫助。對我來說就是這樣。非常感謝。

I think one, I think one thing to add to that, because I know that James mentioned it in the 2024 projections we have are based on current yield curves sort of projected those rental rate increases on those MetLife loans?

我認為，我想補充一點，因為我知道詹姆斯在 2024 年預測中提到過這一點，我們是基於當前的收益率曲線來預測大都會人壽貸款的租金上漲？

That rollover, correct me if I'm wrong, but we've definitely investment. We've made an assumption of a rent. I mean, other than the interest rate jump in the projections that you saw in the supplemental pack unfavorable.

翻滾，如果我錯了請糾正我，但我們肯定有投資。我們對租金做了假設。我的意思是，除了您在補充包中看到的不利預測中的利率上升之外。

Thank you very much.

非常感謝。

Again, if you would like to ask a question, press star followed by the number one on your telephone keypad. Pause briefly for any further questions.

同樣，如果您想提問，請按星號，然後按電話鍵盤上的數字 1。暫停一下，回答任何進一步的問題。

There are no further questions at this time. I will now turn the call back over to Luca for brief closing remarks.

目前沒有其他問題。現在我將把電話轉回給盧卡，讓其作簡短的結束語。

Thank you, Jamie, and thank you, everybody. We appreciate your interest in our company, and we look forward to continue this conversation through the year on our quarterly updates. And if in the meantime, you have any burning questions, please never hesitate to reach out to us best way is through our Investor Relations e-mail address, which is IR. at our main partners.com. Thank you, everybody, and have a great day.

謝謝你，傑米，謝謝大家。我們感謝您對我們公司的興趣，我們期待在我們的季度更新中繼續這一年的對話。如果同時，您有任何緊迫的問題，請隨時與我們聯繫，最好的方式是透過我們的投資者關係電子郵件地址，即 IR。在我們的主要partners.com 上。謝謝大家，祝您有美好的一天。

And this concludes today's call, you may now disconnect.

今天的通話到此結束，您現在可以掛斷電話了。

in breast, which is I our pharma partners.com. Thank you, everybody.

在乳房中，這是我的 Pharma Partners.com。謝謝大家。

And Heather.

還有希瑟。