Company: LANDO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001495240-25-000005
Chunk: 93

Company: GLADSTONE LAND Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 93
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including approximately $694,000 of participation rents) during the prior year.

During and since the year ended December 31, 2024, we have entered into new lease agreements on certain of these farms and sold others.  As such, currently, five farms remain vacant, one farm is direct-operated, and six farms (leased to three different tenants) are on non-accrual status.  For the vacant and direct-operated farms, we are exploring both leasing and sale options and are in discussions with both potential tenants and buyers; however, there can be no guarantee that we will be able to secure agreements at favorable terms, or at all.

Regarding the farms currently on non-accrual status, we continue to work with each of the tenants to resolve the outstanding rent amounts and will seek to reach agreements on the remaining payments where possible.  Such agreement, if one can be reached, may include placing the tenant on a payment plan, deferring a portion of the rent owed to us, or agreeing to terminate the lease.  In the event of a termination, we estimate that we would be able to find a new tenant to lease these properties at market rental rates within 1 to 12 months.

Water Asset Acquisitions

During the year ended December 31, 2024, through multiple transactions in four different water districts in California, we secured 8,987 net acre-feet of water assets for a total cash cost of approximately $2.1 million, or approximately $236 per net acre-foot, and recognized approximately $453,000 of non-cash revenue as a result of being granted certain water credits in exchange for transferring and storing surplus water on behalf of a local water district.  See Note 3, “Real Estate and Intangible Assets—Investments in Water Assets,” within the accompanying notes to our consolidated financial statements for further detail on these water transactions.

In addition, during the three months ended September 30, 2024, we purchased a total of 2,260 gross acre-feet of water from Byron-Bethany Irrigation District (“BBID”), a multi-county water district located in Contra Costa County, California, for the 2024 water year for a total purchase price (excluding commissions and other closing costs) of approximately $883,000, or approximately $391 per gross acre-foot.  This water was purchased pursuant to a water transfer agreement we entered into with BBID in October 2023, whereby we may elect to purchase up to