Company: LANDO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001495240-25-000028
Chunk: 92

Company: GLADSTONE LAND Corp
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 92
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ows for the nine months ended September 30, 2024, have been reclassified to conform to the current period’s presentation.  These reclassifications had no impact on previously-reported stockholders’ equity, net income, or net change in cash and cash equivalents.Crop InventoryThrough certain of our wholly-owned subsidiaries and under a management agreement with a third-party operator, we currently manage a 2,409-acre farm located in Kern County, California, which includes 2,293 acres of bearing almond and pistachio orchards.  Through September 30, 2025, we have incurred approximately $7.8 million in growing costs, primarily related to irrigation, pest management, fertilization, and labor.  These costs have been capitalized as crop inventory and are included in “Other assets, net” on the accompanying Condensed Consolidated Balance Sheets, stated at the lower of cost or net realizable value.  As the related crops are harvested and sold later in 2025 and throughout 2026, the associated costs will be charged to cost of products sold.  We expect to incur additional costs related to harvesting and post-harvest handling, which will likewise be expensed to cost of products sold as incurred.Income taxesWe have operated and intend to continue to operate in a manner that will allow us to qualify as a REIT under Sections 856-860 of the Internal Revenue Code of 1986, as amended (the “Code”).  As a REIT, we generally are not subject to federal corporate income taxes on amounts that we distribute to our stockholders (except income from any foreclosure property), provided that, on an annual basis, we distribute at least 90% of our REIT taxable income (excluding net capital gains) to our stockholders and meet certain other conditions.  As such, in general, as long as we qualify as a REIT, no provision for federal income taxes will be necessary, except for taxes on undistributed REIT taxable income, taxes from foreclosure property, and taxes on income generated by a TRS (such as Land Advisers), if any.  During the nine months ended September 30, 2025, we began directly operating two properties (consisting of four farms) that qualify as foreclosure properties under the Code and are therefore subject to corporate income taxes on any income generated.  One of these farms remains in its development stage and is not yet income producing.We account for any income taxes in accordance with the provisions of Accounting Standards Codification (“ASC”)