Company: LANDO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001495240-25-000005
Chunk: 121

Company: GLADSTONE LAND Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 121
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 aggregate value as of December 31, 2024, determined by each method is shown in the table below (dollars in thousands, except in footnotes):

57

Valuation MethodNumber ofFarmsTotalAcresFarmAcresAcre-feetof WaterNet CostBasis(1)CurrentFair Value% of TotalFair ValuePurchase Price———7,078$1,406 $1,406 0.1%Sales Price78,1895,713—46,426 64,500 4.6%Internal Valuation36,1894,730—19,750 36,000 2.6%Third-party Appraisal(2)14796,81281,48748,3091,192,009 1,303,444 92.7%Total157111,19091,93055,387$1,259,591 $1,405,350 100.0%

(1)Consists of the initial acquisition price (including the costs allocated to both tangible and intangible assets acquired and liabilities assumed), plus subsequent improvements and other capitalized costs paid for by us that were associated with the properties, and adjusted for accumulated depreciation and amortization.

(2)Appraisals performed between December 2023 and December 2024.

Some of the significant assumptions used by appraisers and the Valuation Team in valuing our portfolio as of December 31, 2024, include land values per farmable acre, market rental rates per farmable acre and the resulting net operating income (“NOI”) at the property level, and capitalization rates, among others.  These assumptions were applied on a farm-by-farm basis and were selected based on several factors, including comparable land sales, surveys of both existing and current market rates, discussions with other brokers and farmers, soil quality, size, location, and other factors deemed appropriate.  A summary of these significant assumptions as of December 31, 2024, is provided in the following table:

Appraisal AssumptionsInternal Valuation AssumptionsRange(Low - High)WeightedAverageRange(Low - High)WeightedAverageLand Value (per farmable acre)$708 – $128,519$34,923$5,918 – $5,918$5,918Market NOI (per farmable acre)$188 – $3,979$1,968N/AN/AMarket Capitalization Rate3.30% – 6.20%4