Company: LANDO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001495240-25-000005
Chunk: 163

Company: GLADSTONE LAND Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 163
---
 lease incentive payments owed to tenants under certain lease agreements and excludes contingent rental payments, such as participation rents.Portfolio ConcentrationsCredit RiskAs of December 31, 2024, our farms were leased to various different, unrelated third-party tenants, with certain tenants leasing more than one farm.  No individual tenant represented greater than 10.0% of the total lease revenue recorded during the year ended December 31, 2024.Geographic RiskFarms located in California and Florida accounted for approximately $58.1 million (68.5%) and $12.1 million (14.2%), respectively, of the total lease revenue recorded during the year ended December 31, 2024.  We seek to continue to further diversify geographically, as may be desirable or feasible.  If an unexpected natural disaster (such as an earthquake, wildfire, or flood, or hurricane) occurs or climate change impacts the regions where our properties are located, there could be a material adverse effect on our financial performance and ability to continue operations.  To date, none of our farms have been materially impacted by natural disasters, including the January 2025 wildfires that occurred in southern California.  See “—California Floods” and “—Southeastern U.S. Hurricanes” below for a discussion on damage caused on certain of our farms by the January 2023 floods that occurred in California and by the hurricanes that occurred in the Southeastern U.S. in September and October 2024.  Besides California and Florida, no other single state accounted for more than 10.0% of the total rental revenue recorded during the year ended December 31, 2024.California FloodsIn January 2023, periods of heavy rainfall in California resulted in floods that impacted several areas of the state, including regions where certain of our farms are located.  As a result of the flooding, one of our farms in the Central Valley suffered damage to certain structures located on the farm, and we estimated the carrying value of such structures to be approximately $855,000.  As such, during the year ended December 31, 2023, we wrote down the carrying value of these structures and also recorded a corresponding property and casualty loss, included within Property and casualty loss, net on our Consolidated 

82

Statements of Operations and Comprehensive Income.  Certain of our other farms in California suffered minor damage as a result of the floods, but no other farms were materially impacted.In addition, in February 2024, certain