Company: LANDO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001495240-25-000005
Chunk: 22

Company: GLADSTONE LAND Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 1
Chunk 22
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 business, such as cooling facilities, packinghouses, distribution centers, greenhouses, and storage facilities.

•Location.  Farming also requires optimal climate and growing seasons.  We typically seek to purchase properties in locations that take advantage of climate conditions that are needed to grow fresh produce row crops.  We intend to continue to expand throughout the U.S. in locations with productive farmland and financially sound tenant-farmers.

•Price.  We intend to purchase and finance properties that we believe are a good value and that we will be able to rent profitably for farming over the long term.  Generally, the closer a property is located to urban developments, the higher the value of the property.  As a result, properties that are currently located in close proximity to urban developments are likely to be too expensive to justify farming over an extended period of time, and, therefore, we are unlikely to invest in such properties.

7

Our Adviser will perform a due diligence review with respect to each potential property acquisition.  Such review will include an evaluation of the physical condition of a property and an environmental site assessment to determine potential environmental liabilities associated with a property prior to its acquisition.  One of the criteria that we look for is whether mineral rights to such property, which constitute a separate estate from the surface rights to the property, have been sold to a third party.  We generally seek to invest in properties where mineral rights have not been sold to third parties; however, in cases where access to mineral rights would not affect the surface farming operations, we may enter into a lease agreement for the extraction of minerals or other subterranean resources, as we have done in the past on a few of our properties.  We may seek to acquire mineral rights in connection with the acquisition of future properties to the extent such mineral rights have been sold off and the investment acquisition of such rights is considered to be favorable after our due diligence review.  Despite the conduct of these reviews, there can be no assurance that hazardous substances or waste, as determined under present or future federal or state laws or regulations, will not be discovered on the property after we acquire it.

Our Adviser will also physically inspect each property and the real estate surrounding it to estimate its value.  Our Adviser’s due diligence will be primarily focused on valuing each property independent of its rental value to particular tenants to whom we plan to rent.  The real estate valuations our Adviser performs will consider one or more of the following items:

•The comparable value of similar real property