Company: LANDO
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001495240-25-000021
Chunk: 105

Company: GLADSTONE LAND Corp
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 105
---
 nature and variable interest rates applicable to the MetLife Lines of Credit, their aggregate fair value as of June 30, 2025, is deemed to approximate their aggregate carrying value of $200,000.Interest Rate Swap AgreementsIn order to hedge our exposure to variable interest rates, we have entered into various interest rate swap agreements in connection with certain of our mortgage financings.  In accordance with these swap agreements, we will pay our counterparty a fixed interest rate on a quarterly basis and receive payments from our counterparty equal to the respective stipulated floating rates.  We have adopted the fair value measurement provision for these financial instruments, and the aggregate fair value of our interest rate swap agreements is recorded in Other assets, net or Other liabilities, net, as appropriate, on our accompanying Condensed Consolidated Balance Sheets.  Generally, 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 

17

credit risk of our derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. As of June 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 $1.5 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 June 30, 2025, and December 31, 2024 (dollars in thousands):PeriodNumber of InstrumentsAggregate Notional AmountAs of June 30, 20254$65,375 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 June