Company: LANDO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001495240-25-000028
Chunk: 42

Company: GLADSTONE LAND Corp
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 in the absence of observable market data, we will estimate the fair value of our interest rate swaps using estimates of certain data points, including estimated remaining life, counterparty credit risk, current market yield, and interest rate spreads of similar securities as of the measurement date.  In accordance with the Financial Accounting Standards Board’s fair value measurement guidance, we have made an accounting policy election to measure the credit risk of our derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.  As of September 30, 2025, our interest rate swaps were valued using Level 2 inputs.In addition, we have designated our interest rate swaps as cash flow hedges.  For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is initially recorded in Accumulated other comprehensive income on the accompanying Condensed Consolidated Balance Sheets and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects.  During the next 12 months, we estimate that an additional $1.4 million will be reclassified as a reduction to interest expense.We had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk as of September 30, 2025, and December 31, 2024 (dollars in thousands):PeriodNumber of InstrumentsAggregate Notional AmountAs of September 30, 20254$65,176 As of December 31, 2024467,067 The following table presents the fair value of our interest rate swaps as well as their classification on the Condensed Consolidated Balance Sheets as of September 30, 2025, and December 31, 2024 (dollars in thousands):Derivative Asset (Liability) Fair ValueDerivative TypeBalance Sheet LocationSeptember 30, 2025December 31, 2024Derivatives Designated as Hedging Instruments:Interest rate swapsOther assets, net$5,049 $7,632 Total$5,049 $7,632 The following table presents the amount of (loss) income recognized in comprehensive (loss) income within our condensed consolidated financial statements for the three and nine months ended September 30, 2025 and 2024 (dollars in thousands):

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For the Three Months Ended September 30,For the Nine Months Ended September 30,2025202420252024Derivative in cash flow hedging relationship:Interest