Company: LANDO
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001495240-25-000012
Chunk: 87

Company: GLADSTONE LAND Corp
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 87
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 dependent upon and subject to the recognition of such credits by the respective water districts, in their sole discretion.  Such 

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costs are held in a deferred asset account (also included within Other assets, net on our Condensed Consolidated Balance Sheets) until the related net water credits become estimable and are recognized by the respective water district, at which time the costs would be reclassed to investments in long-term water assets.Portfolio ConcentrationsCredit RiskAs of March 31, 2025, our farms were leased to various different, unrelated third-party tenants, with certain tenants leasing more than one farm.  Due primarily to a lease termination payment received from an outgoing tenant (“Tenant A”) during the three months ended March 31, 2025, aggregate lease revenue attributable to Tenant A accounted for approximately $2.4 million, or 14.2% of the total lease revenue recorded during the three months ended March 31, 2025.  As of March 31, 2025, we are no longer a party to any contractual agreements with Tenant A.  In addition, one unrelated third-party tenant (“Tenant B”) leases six of our farms under leases expiring in 2030 or later.  During the three months ended March 31, 2025, aggregate lease revenue attributable to Tenant B accounted for approximately $1.9 million, or 11.2% of the total lease revenue recorded during the three months ended March 31, 2025.  If Tenant B fails to make rental payments or elects to terminate its leases prior to their expirations (and we cannot re-lease the farms on satisfactory terms), there could be a material adverse effect on our financial performance.  No other individual tenant represented greater than 10% of the total lease revenue recorded during the three months ended March 31, 2025.Geographic RiskFarms located in California and Florida accounted for approximately $10.5 million (62.4%) and $2.6 million (15.3%), respectively, of the total lease revenue recorded during the three months ended March 31, 2025.  We seek to continue to further diversify geographically, as may be desirable or feasible.  If an unexpected natural disaster (such as an earthquake, wildfire, flood, or hurricane) occurs or climate change impacts the regions where our properties are located, there could be a material adverse effect on our financial performance and ability to continue our operations.  To date