Company: LANDO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001495240-25-000028
Chunk: 130

Company: GLADSTONE LAND Corp
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 130
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 any signs of water-related stress in our permanent plantings, which appear healthy and in good condition for the upcoming growing season.  Meanwhile, the ongoing phased implementation of California’s Sustainable Groundwater Management Act (“SGMA”) continues to impose groundwater pumping restrictions across the state.  In response, we are actively evaluating and participating in supplemental water initiatives aimed at mitigating the impact of SGMA-related curtailments.  These initiatives include floodwater capture and storage projects, voluntary fallowing programs, and strategic investments in water infrastructure to ensure long-term access to reliable water supplies.  Periods of surplus surface water often result in increased availability of lower-cost water from purveyors, and we continue to monitor such opportunities as part of our long-term water procurement strategy.  We believe our farms are well-positioned for the 2026 growing season with respect to both groundwater and surface water availability.

Recent Developments

Portfolio Activity—Existing Properties

Property Sales

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In August 2025, we completed the sale of two farms in Florida totaling 2,678 gross acres for an aggregate sales price of $21.5 million.  Including closing costs, we recognized an aggregate net gain on these sales of approximately $6.0 million.

Leasing Activity

The following table summarizes certain leasing activity that has occurred on our existing properties since July 1, 2025, through the date of this filing (dollars in thousands, except for footnotes):

PRIOR LEASESNEW LEASES(1)FarmLocationsNumberofLeasesTotalFarmAcresTotalAnnualizedStraight-lineRent(2)# of LeaseswithParticipationRentsLeaseStructures(# of NNN/ NN / N)(3)TotalAnnualizedStraight-lineRent(2)Wtd. Avg.Term(Years)# of LeaseswithParticipationRentsLeaseStructures(# of NNN/ NN / N)(3)CA2314$992 02 / 0 / 0$1,057 2.402 / 0 / 0

(1)In connection with certain of these leases, we committed to provide cash allowances or capital for certain operations and improvements on these farms, which are excluded in the figures above.  See Note 3, “Real Estate and Intangible Assets—Intangible Assets and Liabilities,” within the accompanying notes to our condensed consolidated financial statements and “Liquidity and Capital Resources—Operating Commitments and Obligations—Operating Obligations” below for additional information on these and other