Oct 29, 2026 earnings call — Reserves, litigation and Q3 results
Q3 net loss was $15.5 million after reserves and a $12 million impairment charge.
Revenue $0.0B (est $0.0B) · EPS $-0.36 (est $0.01)
Key quotes
"It was a tough quarter from the standpoint of our earnings due to some reserves and negative surprises we had along the way."
"We are about a third of the way into our lease renewal process for the renewing leases, very focused on the Midwest."
"We see the best farmland acquisition opportunity as being our own stock because we are trading at a significant discount to NAV."
Analyst Q&A 2
write-downs, Sabrepoint case, and loan reserves
Q (Craig Kucera · Lucid): He asked if the impairment charges were only for assets held for sale or broader in California. He also asked whether the appellate decision on Sabrepoint was a final gate and what damages they might seek, asked about reserves for a troubled borrower and how much is not reserved, and asked if the board will renew the buyback authorization.
A: Management said the $12 million charge was for farms held for sale and farms they intend to sell. They described the appellate win on Sabrepoint as very strong, expect Sabrepoint to keep delaying, hope for a settlement, and said "what we ought to recover is $100 million plus" while noting Sabrepoint may not have that much cash. They said they have taken reserves for the same borrower, disclosed total exposure of $51 million, and said it is reasonable to assume the board will re-up the repurchase authorization.
"The $12 million impairment charge relates to both the ones held for sale and the one that we intend to sell." — Luca Fabbri (CEO)
loan reserves and warning signs in loans
Q (Buck Horne · Raymond James): He asked if the guidance assumes no more reserves in Q4 or later and what other warning signs they are watching in the loan portfolio. He asked whether there are other indicators of payment or profitability problems and how the rest of the exposure looks.
A: Management said the borrower made payments and caught up on interest this quarter, but a planned asset sale that would have reduced exposure did not close. Because that expected reduction failed, they took reserves to be conservative, believe they are well reserved today, and said they are not anticipating another reserve next quarter though new facts could change that.
"As I said, they made some payments and caught up on some interest and other things." — Paul Pittman (CHAIR)