Company: LANDO
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001495240-25-000021
Chunk: 67

Company: GLADSTONE LAND Corp
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 67
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 to the lease agreements) to unconsolidated entities of ours that convey water to the respective properties.  As such, the timing of tenant reimbursement revenue fluctuates as payments are made by our tenants.  Amounts recorded during the current-year periods include increased reimbursements from certain tenants for costs to deliver water to their farms via a pipeline owned by an unconsolidated entity of ours.

Other Operating Revenue

Other operating revenue consists of non-lease revenue generated as a result of activities performed on certain of our properties.  During the three and six months ended June 30, 2024, we recognized approximately $27,000 and $453,000, respectively, of non-cash revenue associated with the transfer and storing of surplus water on behalf of a government municipality using a groundwater recharge facility constructed on one of our farms.  See Note 4, “Investments in Water Assets,” within the accompanying notes to our condensed consolidated financial statements for further discussion.

Operating Expenses

Depreciation and amortization

34

Depreciation and amortization expense decreased primarily due to the disposition of certain assets, including the sale of 19 farms subsequent to December 31, 2023, and certain other assets reaching the end of their useful lives.  This decrease was partially offset by additional depreciation expense associated with new capital improvements made on certain of our farms.

Property operating expenses

Property operating expenses consist primarily of real estate taxes, repair and maintenance expenses, insurance premiums, and other miscellaneous operating expenses paid for certain of our properties.  The following table provides a summary of the property-operating expenses recorded during the three and six months ended June 30, 2025 and 2024 (dollars in thousands):

For the Three Months Ended June 30,For the Six Months Ended June 30,20252024$ Change% Change20252024$ Change%  ChangeSame-property basis$1,198 $1,015 $183 18.0%$2,283 $1,633 $650 39.8%Properties acquired or disposed of — 104 (104)(100.0)%6 135 (129)(95.6)%Tenant-reimbursed property operating expenses(1)44 100 (56)(56.0)%81 328 (247)(75.3)%Total Property operating expenses$1,242 $1,219 $23 1.9%$2,370 $2,096 $274 13.