Company: LANDO
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001495240-25-000012
Chunk: 119

Company: GLADSTONE LAND Corp
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 119
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 disposed of:Fixed lease payments7 208 (201)(96.6)%Total – Properties acquired or disposed of7 208 (201)(96.6)%Tenant reimbursements and other(1)31 233 (202)(86.7)%Total Lease revenues$16,803 $19,826 $(3,023)(15.2)%

(1)Tenant reimbursements generally represent tenant-reimbursed property operating expenses on certain of our farms, including property taxes, insurance premiums, and other property-related expenses.  Similar amounts are also recorded as property operating expenses during the respective periods. 

Same-property Basis – 2025 compared to 2024

29

Lease revenues from fixed lease payments decreased primarily due to the execution of certain lease agreements pursuant to which we agreed to reduce or eliminate the fixed base rent amounts or, in certain cases, provide the tenant with a cash lease incentive, in exchange for significantly increasing the participation rent components in the leases, the majority of which is expected to be realized in the fourth quarter of 2025.  

The increase in lease revenues from participation rents was primarily attributable to additional cash collections from wine grape sales during the three months ended March 31, 2025.

During the three months ended March 31, 2025, we received a lease termination payment from an outgoing tenant who leased three of our farms.  After applying a portion of the amount towards certain outstanding receivables owed by the same tenant, we recognized additional lease revenue of approximately $2.4 million upon receipt.

Other – 2025 compared to 2024

Lease revenue from properties acquired or disposed of decreased due to the sale of 19 farms subsequent to December 31, 2023.

The fluctuations in tenant reimbursement revenue are primarily driven by payments made by certain tenants on our behalf (pursuant to the lease agreements) to unconsolidated entities of ours that convey water to the respective properties.  As such, the timing of tenant reimbursement revenue fluctuates as payments are made by our tenants.  Amounts recorded during the current-year periods include increased reimbursements from certain tenants for costs to deliver water to their farms via a pipeline owned by an unconsolidated entity of ours.

Other Operating Revenue

Other operating revenue consists of non-lease revenue generated as a result of activities performed on certain of our properties.  During the three months ended March 31, 2024, we recognized approximately $426,000 of non-cash revenue associated with