Company: LANDO
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001495240-25-000021
Chunk: 163

Company: GLADSTONE LAND Corp
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 163
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 trade constraints and potentially drive increased demand for domestically-grown products.

California Water Outlook

The 2024-2025 water year has followed a typical “La Niña” weather pattern, bringing above-average precipitation to Northern California and drier conditions in the southern part of the state.  Northern California experienced multiple atmospheric river events during the winter, resulting in substantial rainfall and snowpack accumulation.  In contrast, portions of Southern California continue to experience varying degrees of drought.

This marks the third consecutive year of average or above-average precipitation statewide.  Notably, late-season storms extended peak snowpack accumulation beyond the historical April 1 benchmark, providing strong snowmelt runoff through the spring and into early summer.  Reservoir levels across the state remain above historical norms, contributing to favorable surface water allocations from both State and Federal water systems.  Periods of surplus surface water often result in increased availability of lower-cost water from purveyors, and we continue to monitor such opportunities as part of our long-term water procurement strategy.

The sustained wet conditions have also positively impacted our permanent crop assets by contributing to groundwater recharge and improving root zone moisture content.  To date, we have not observed any signs of water-related stress in our permanent plantings, which appear healthy and well-positioned for the upcoming growing season.

At the same time, the ongoing phased implementation of California’s Sustainable Groundwater Management Act (“SGMA”) continues to impose groundwater pumping restrictions across the state.  In response, we are actively evaluating and participating in supplemental water initiatives aimed at mitigating the impact of SGMA-related curtailments.  These initiatives include floodwater capture and storage projects, voluntary fallowing programs, and strategic investments in water infrastructure to ensure long-term access to reliable water supplies.

Recent Developments

Portfolio Activity—Existing Properties

Leasing Activity

The following table summarizes certain leasing activity that has occurred on our existing properties since April 1, 2025, through the date of this filing (dollars in thousands, except for footnotes):

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PRIOR LEASESNEW LEASES(1)FarmLocationsNumberofLeasesTotalFarmAcresTotalAnnualizedStraight-lineRent(2)# of LeaseswithParticipationRentsLeaseStructures(# of NNN/ NN / N)(3)TotalAnnualizedStraight-lineRent(2)Wtd. Avg.Term(Years)# of LeaseswithParticipationRentsLeaseStructures(# of NNN/ NN / N)(3)CA & CO417,508$1