Company: LANDO
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001495240-25-000021
Chunk: 76

Company: GLADSTONE LAND Corp
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 76
---
 estimated amounts based on the lease rates currently in place.

As a result of these ground leases, we recorded lease expense of approximately $26,000 and $53,000 during the three and six months ended June 30, 2025, respectively, and approximately $26,000 and $52,000 during the three and six months ended June 30, 2024, respectively.

Cash Flow Resources

39

The following table summarizes total net cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 (dollars in thousands):

 For the Six Months Ended June 30,   20252024$ Change% ChangeNet change in cash from:Operating activities$8,416 $19,333 $(10,917)(56.5)%Investing activities57,395 61,678 (4,283)(6.9)%Financing activities(53,605)(49,825)(3,780)7.6 %Net change in Cash and cash equivalents$12,206 $31,186 $(18,980)(60.9)%

Operating Activities

The majority of cash from operating activities is generated from the rental payments we receive from our tenants, which is first used to fund our property-level operating expenses, with any excess cash being primarily used for principal and interest payments on our borrowings, management fees to our Adviser, administrative fees to our Administrator, and other corporate-level expenses.

Cash provided by operating activities decreased primarily due to the disposition of a large farm in Florida in January 2025 and a reduction in cash received from fixed lease payments, primarily attributable to the execution of certain lease agreements, pursuant to which we agreed to reduce or eliminate the fixed base rent amounts or, in certain instances, provided certain 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.  This decrease was partially offset by an increase in cash payments received for participation rents, as well as decreases in cash payments made for the acquisition of water assets, related-party fees, and interest payments made.  

Investing Activities

The change in cash from investing activities was primarily due to additional capital expenditures spent on certain of our farms during the current year, as well as slightly less proceeds received from property sales during the current year.  During the six months ended June 30, 2025, we sold five farms