Company: LANDO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001495240-25-000028
Chunk: 36

Company: GLADSTONE LAND Corp
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 36
---
 storing this surplus water on behalf of WWD, we recognized approximately $0 and $453,000 of non-cash revenue during the three and nine months ended September 30, 2024, respectively, which represents the estimated fair value of the water credits obtained during the periods.  As of September 30, 2025, these water credits were recognized as a long-term water asset and had an aggregate carrying value of approximately $746,000.  Other Groundwater CreditsSince 2023, we have also entered into various other agreements with third parties, including local water districts and private individuals, to (i) purchase water directly, (ii) acquire portions of other water districts’ surface water allocations in future years in which allocations are granted, or (iii) store surface water on behalf of others in our groundwater recharge facilities in exchange for a portion of the net groundwater credits generated and recognized by the respective water district.  Through September 30, 2025, we have obtained 4,563 acre-feet of water credits under these agreements, which have been recognized as a long-term water asset with an aggregate carrying value of approximately $884,000.  During each of the three and nine months ended September 30, 2025, we recognized approximately $48,000 of revenue, representing the estimated fair value of water credits received in exchange for storing water on behalf of third parties (included within Other operating revenue on our Condensed Consolidated Statements of Operations and Comprehensive Income).Total Long-term Water AssetsAs of September 30, 2025, we owned a total of 55,532 acre-feet of long-term water assets, and our investments in these assets had an aggregate carrying value of approximately $37.2 million and are included within Investments in water assets on our Condensed Consolidated Balance Sheets.In addition, we have invested approximately $1.5 million to construct and maintain groundwater recharge facilities on two of our farms, which is included within Real estate, at cost on our Condensed Consolidated Balance Sheets.  Through September 30, 2025, we have also invested an additional $4.4 million in the aggregate in connection with certain agreements that are expected to result in additional groundwater credits in the future; however, the amount and timing of these credits, if any, is currently unknown and is dependent upon and subject to the recognition of such credits by the respective water districts, in their sole discretion.  Such costs are held in a deferred asset account (also included within Investments in water