Company: LANDO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001495240-25-000005
Chunk: 104

Company: GLADSTONE LAND Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 104
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 on certain of our farms.  

Property Operating Expenses

Property operating expenses consist primarily of real estate taxes, repair and maintenance expense, insurance premiums, and other miscellaneous operating expenses paid for certain of our properties.  The following table provides a summary of the property operating expenses recorded during the years ended December 31, 2024 and 2023 (dollars in thousands):

For the Years Ended December 31,20242023$ Change% ChangeSame-property basis$2,715 $2,505 $210 8.4%Properties acquired or disposed of 425 501 (76)(15.2)%Vacant, direct-operated properties, or non-accrual, properties803 508 295 58.1%Tenant-reimbursed property operating expenses(1)1,391 687 704 102.5%Total Property operating expenses$5,334 $4,201 $1,133 27.0%

(1)Represents certain operating expenses (property taxes, insurance premiums, and other property-related expenses) paid by us that, per the respective leases, are required to be reimbursed to us by the tenant.  Similar amounts are also recorded as lease revenue when earned in accordance with the lease.

Same-property Basis – 2024 compared to 2023

Property operating expenses increased primarily due to additional property taxes paid by us on behalf of one of our tenants who terminated their lease during the year ended December 31, 2024.  This increase was partially offset by a decrease in legal fees 

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and other costs incurred in connection with protecting water rights on certain farms in California, as well as a decrease in repairs and maintenance expense incurred during the prior year as a result of minor damage at certain farms caused by natural disasters.  

Other – 2024 compared to 2023

Property operating expenses on properties acquired or disposed of decreased due to the sale of one farm in Florida and 11 farms in Michigan during the year ended December 31, 2024.

Property operating expenses attributable to vacant, direct-operated, or non-accrual properties increased primarily due to an increase in legal fees incurred in connection with rent collection, lease termination, or re-leasing efforts on such farms, as well as additional property taxes incurred on certain of those farms, for which the prior tenants were previously responsible.

The fluctuation in tenant-reimbursed property operating expenses are primarily driven by miscellaneous property operating costs incurred by us in connection with our ownership interests