Company: LANDO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001495240-25-000028
Chunk: 176

Company: GLADSTONE LAND Corp
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 2
Chunk 176
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 recorded during the prior-year periods included 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.  In connection with the transfer and storing of surplus water on behalf of a third party using a groundwater recharge facility constructed on one of our farms, we recognized non-cash revenue of approximately $48,000 during each of the three and nine months ended September 30, 2025, and approximately $0 and $453,000 during the three and nine months ended September 30, 2024, respectively.  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

Depreciation and amortization expense decreased primarily due to the disposition of certain assets, including the sale of 21 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.

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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 nine months ended September 30, 2025 and 2024 (dollars in thousands):

For the Three Months Ended September 30,For the Nine Months Ended September 30,20252024$ Change% Change20252024$ Change%  ChangeSame-property basis$1,250 $1,106 $144 13.0%$3,503 $2,705 $798 29.5%Properties acquired or disposed of 27 120 (93)(77.5)%63 289 (226)(78.2)%Tenant-reimbursed property operating expenses(1)106 154 (48)(31.2)%187 482 (295)(61.2)%Total Property operating expenses$1,383 $1,380 $3 0.2%$3,753 $3,476 $277 8.0%

(1)Represents certain operating expenses (property taxes, insurance premiums, and other property-related expenses