Company: LANDO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001495240-25-000028
Chunk: 148

Company: GLADSTONE LAND Corp
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 148
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 sale of nine farms completed to date in 2025 and from certain vacant or non-accrual properties, as well as the execution of certain lease agreements (pursuant to which we reduced or eliminated fixed base rent amounts or, in certain instances, provided cash allowances to tenants, in exchange for increasing the participation rent components in the leases, the results of which will not be known until the fourth quarter of 2025 or later).  The decrease was also attributable to additional cash payments for water acquisitions and increased costs incurred in connection with our direct farming operations on certain farms, which costs are currently capitalized as crop inventory.  These decreases were partially offset by higher cash receipts from participation rents, the receipt of a termination fee from an outgoing tenant on three of our farms, and lower interest payments made.

Investing Activities

The change in cash from investing activities was primarily due to proceeds received from the sale of certain farms during the current year.  During the nine months ended September 30, 2025, we sold seven farms in Florida and two farms in Nebraska for aggregate net proceeds (after closing costs) of $82.5 million.  This was partially offset by an increase of $6.6 million in cash paid for capital improvements on existing farms during the current-year period.

Financing Activities

The change in cash from financing activities was primarily due to an increase in aggregate net debt repayments of approximately $3.7 million, partially offset by a decrease in cash paid for redemptions of certain preferred securities of approximately $6.6 million.

Debt Capital

MetLife Facility

As amended, our credit facility with MetLife currently consists of $75.0 million of revolving equity lines of credit and an aggregate of $175.0 million of term notes (the “MetLife Facility”).  We currently have $200,000 outstanding under the lines of credit and $35.6 million outstanding on the term notes.  While $214.2 million of the full commitment amount under the MetLife Facility remains undrawn, based on the level of collateral pledged, we currently have approximately $110.6 million of availability under the MetLife Facility.  The revolving equity lines of credit mature on December 15, 2033, and the draw period for both term notes expires on December 31, 2026, after which MetLife has no obligation to disburse any additional undrawn funds under the term notes.

Farmer Mac Facility

As amended, our agreement with Federal Agricultural Mortgage Corporation (“