Company: LANDO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001495240-25-000028
Chunk: 26

Company: GLADSTONE LAND Corp
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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) to our stockholders and meet certain other conditions.  As such, in general, as long as we qualify as a REIT, no provision for federal income taxes will be necessary, except for taxes on undistributed REIT taxable income, taxes from foreclosure property, and taxes on income generated by a TRS (such as Land Advisers), if any.  During the nine months ended September 30, 2025, we began directly operating two properties (consisting of four farms) that qualify as foreclosure properties under the Code and are therefore subject to corporate income taxes on any income generated.  One of these farms remains in its development stage and is not yet income producing.We account for any income taxes in accordance with the provisions of Accounting Standards Codification (“ASC”) 740, “Income Taxes” (“ASC 740”), using the asset and liability method.  Under this method, deferred tax assets and liabilities are recognized based on differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases (including for operating loss, capital loss, and tax credit carryforwards) and are calculated using the enacted tax rates and laws expected to be in effect when such amounts are realized or settled.  In addition, we will establish valuation allowances for tax benefits when we believe it is more-likely-than-not (defined as a likelihood of more than 50%) that such assets will not be realized.Pretax losses from foreclosure properties during the three and nine months ended September 30, 2025, was approximately $1.0 million and $2.6 million, respectively.  We did not have any federal or state income tax expense (current or deferred) during either of the three or nine months ended September 30, 2025.Segment ReportingOur current business strategy includes one operating segment: Real Estate Rental Operations.  We generate revenues, earnings, net income, and cash flows through our single segment by collecting rents from our tenants through operating leases, including reimbursements for certain of our property operating costs.  We expect to generate earnings growth by increasing rents, maintaining high occupancy rates, and controlling expenses.  The primary driver of our revenue growth will be the renewal of existing leases at current market rental rates upon expiration and the acquisition of new properties.  We further believe our active portfolio management, combined with the skills of our asset management team, will allow us to maximize net income across our portfolio.Our Chief Operating Decision Maker (“CODM”) is our President and CEO.  Our CODM uses net income