Company: LANDO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001495240-25-000028
Chunk: 101

Company: GLADSTONE LAND Corp
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 101
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 one property (encompassing two farms) located in St. Lucie County, Florida, due to the estimated fair value being lower than the carrying value.  Our estimate of fair value was determined based on the expected sales price per an agreement entered into subsequent to September 30, 2025.  During the three months ended September 30, 2024, we recognized an aggregate impairment charge of approximately $2.1 million on portions of four properties (encompassing a total of 11 farms) located in Allegan and Van Buren, Michigan, due to the estimated fair values being lower than the respective carrying values.

NOTE 4.  INVESTMENTS IN WATER ASSETS

Semitropic Water Storage District Banked WaterIn connection with the acquisition of certain farmland located in Kern County, California, in 2021, we also acquired three contracts providing the right to purchase an aggregate of 45,000 acre-feet of banked water held by Semitropic Water Storage District (“SWSD”), a water storage district located in Kern County, California, at a fixed price.  At the time of acquisition, we allocated approximately $31.3 million of aggregate value to these contracts.  Subsequently in 2021, we executed all three contracts and purchased the full 45,000 acre-feet of banked water for an additional aggregate cost of approximately $2.8 million.In addition, since the initial acquisition, additional contracts to purchase banked water held by SWSD were conveyed to us by one of our tenants as partial consideration for rent payments owed.  The following table summarizes the total acre-feet of banked water obtained through exercising these contracts as of September 30, 2025 (dollars in thousands):

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Period AcquiredAcre-feet of Banked Water Available to Purchase per ContractAcre-feet of Banked Water Purchased(1)Value Attributed to Contract(2)Cost to Exercise ContractTotal Carrying Value of Banked Water PurchasedThree months ended December 31, 20231,0031,003$401 $62 $463 Three months ended March 31, 20242,3062,306923 141 1,064 Total3,3093,309$1,324 $203 $1,527 (1)All contracts to purchase additional banked water were exercised in the same quarter in which the respective contract was conveyed to us.(2)Represents non