Company: LANDO
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001495240-25-000012
Chunk: 79

Company: GLADSTONE LAND Corp
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 79
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 2,293 acres of bearing almond and pistachio orchards.  Through March 31, 2025, we have incurred approximately $2.9 million in growing costs, primarily related to pollination, fertilization, pesticide application, irrigation, and labor.  These costs have been capitalized as crop inventory and are included in “Other assets, net” on the accompanying Condensed Consolidated Balance Sheets at the lower of cost or net realizable value.  As the related crops are harvested and sold later in 2025 and throughout 2026, these costs will be charged to cost of products sold.  In addition, as the crops are harvested and sold, we anticipate incurring additional costs (including harvesting costs, crop insurance, and post-harvest handling fees), which will also be expensed to the cost of products sold.Segment ReportingOur current business strategy includes one operating segment: Real Estate Rental Operations.  We generate revenues, earnings, net income, and cash flows through our single segment by collecting rents from our tenants through operating leases, including reimbursements for certain of our property operating costs.  We expect to generate earnings growth by increasing rents, maintaining high occupancy rates, and controlling expenses.  The primary driver of our revenue growth will be the renewal of existing leases at current market rental rates upon expiration and the acquisition of new properties.  We further believe our active portfolio management, combined with the skills of our asset management team, will allow us to maximize net income across our portfolio.Our CODM is our President and CEO.  Our CODM uses net income to make decisions about allocating resources to individual properties and assessing performance.  The CODM will sometimes reference other metrics, including net operating income; however, as net income is the measure most consistent with the amounts disclosed in the consolidated financial statements, only net income is disclosed.Recently-Issued Accounting PronouncementsIn November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”).  ASU 2024-03 requires public entities to disaggregate specific types of expenses, including disclosures for depreciation, intangible asset amortization, and selling expenses.  The pronouncement is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027.  Prospective