Company: LANDO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001495240-25-000005
Chunk: 162

Company: GLADSTONE LAND Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 162
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 Balance Sheets).Total Long-term Water AssetsAs of December 31, 2024 and 2023, we owned a total of 55,387 acre-feet and 46,400 acre-feet, respectively, of long-term water assets, and our investments in these long-term water assets had an aggregate carrying value of approximately $36.9 million and $34.6 million, respectively, and are included within Other assets, net on our Consolidated Balance Sheets.We have invested approximately $1.4 million to construct groundwater recharge facilities on two of our farms, which is included within Real estate, at cost on our Consolidated Balance Sheets.  In addition, through December 31, 2024, we have 

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invested an additional $3.3 million in the aggregate in connection with certain agreements that are expected to result in additional groundwater credits in the future; however, the amount and timing of these credits, if any, is currently unknown and is dependent upon and subject to the recognition of such credits by the respective water districts, in their sole discretion.  Such costs are held in a deferred asset account (also included within Other assets, net on our Consolidated Balance Sheets) until the related net water credits become estimable and are recognized by the respective water district, at which time the costs would be reclassed to investments in long-term water assets.Future Minimum Lease PaymentsWe account for all of our leasing arrangements in which we are the lessor as operating leases.  The majority of our leases are subject to fixed rental increases, and a small subset of our lease portfolio includes lease payments based on an index, such as the consumer price index (“CPI”).  In addition, several of our leases contain participation rent components based on the gross revenues earned on the respective farms.  Most of our leases also include tenant renewal options; however, these renewal options are generally based on then-current market rental rates and are therefore typically excluded from the determination of the minimum lease term.  The majority of our leases generally do not include tenant termination options.The following tables summarize the future net lease payments to be received under noncancellable leases as of December 31, 2024 (dollars in thousands):PeriodTenantLease Revenue(1)For the fiscal years ending December 31,2025$55,225 202657,435 202754,170 202845,635 202942,287 Thereafter141,060 $395,812 (1)Amounts are net of fixed