Company: LANDO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001495240-25-000005
Chunk: 44

Company: GLADSTONE LAND Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 1A
Chunk 44
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 to opportunistically dispose of properties when we are able to do so at a price we consider attractive and/or recognize a gain on the sale.  If we are required to dispose of assets for liquidity purposes, we may be unable to realize our investment objectives via a sale at attractive prices within any given period of time or may otherwise be unable to complete any exit strategy.  Opportunities to dispose of assets at a gain may not be available to us, which would reduce our cash on hand for distributions to stockholders or for any other purpose.  Weakness in or the lack of an established market for a farm, changes in the financial condition or prospects of prospective purchasers, changes in national or international economic conditions, and changes in laws, regulations, or fiscal policies of jurisdictions in which the farm is located, in each case, may limit our ability to dispose of a farm.

In addition, as a REIT, we may be subject to a 100% tax on net income derived from the sale of property considered to be held primarily for sale to customers in the ordinary course of our business. We may seek to avoid this tax by complying with certain safe harbor rules that generally limit the number of properties we may sell in a given year, the aggregate expenditures made on such properties prior to their disposition, and how long we retain such properties before disposing of them.  However, we can provide no assurance that we will always be able to comply with these safe harbors.  If compliance is possible, the safe harbor rules may restrict our ability to sell assets in the future and achieve liquidity that may be necessary to fund distributions.

If we sell properties and provide financing to purchasers, defaults by the purchasers would decrease our cash flows and limit our ability to make distributions.

In some instances, we may sell our properties by providing financing to purchasers who may then also operate the farm.  When we provide financing to purchasers, we may bear the risk that the purchaser may default, which could negatively impact our liquidity and thus our ability to either distribute the proceeds from the sale to our stockholders or reinvest the sale proceeds in other property acquisitions.

If our properties do not have access to adequate water supplies, it could harm our ability to lease the properties for farming, thereby adversely affecting our ability to generate returns on our properties.

To lease the cropland that we intend to acquire, these properties will require access to sufficient water to make them suitable for farming.  Additionally, the ability of our current tenants to make their rental payments is dependent upon sufficient access to water.