Luca Fabbri, president and CEO of Farmland Partners Inc.(NYSE: FPI), sat down for a video interview at Nareit's REITweek: 2024 Investor Conference, held in New York June 3-6.
Fabbri emphasized the REIT’s successful efforts in optimizing the portfolio by reducing operating expenses and maintaining revenue stability amidst economic fluctuations. He highlighted a 12% reduction in portfolio gross book value quarter-to-quarter, alongside corresponding decreases in operating costs.
Investors are particularly interested in the impact of interest rates on farmland values, a topic Fabbri addressed by noting the limited effect due to low leverage in the agricultural sector. He underscored that despite broader economic uncertainties, farmland values have remained stable, driven by consistent demand from farmers who constitute the primary buyers.
Fabbri expressed confidence in Farmland Partners' growth prospects, aiming to leverage improved profitability to attract more favorable equity capital and propel the company into a growth phase over the coming years. "I'm hoping that by the end of this year and into next year, we will be an overnight success story 10 years in the making."