Company: LANDO
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001495240-25-000012
Chunk: 67

Company: GLADSTONE LAND Corp
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 67
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 execution of certain lease agreements, we have committed to provide capital improvements on certain of our farms.  Below is a summary of certain of those projects for which we have incurred or accrued costs as of March 31, 2025 (dollars in thousands):

FarmLocation(s)FarmAcreageTotalCommitmentObligatedCompletionDate(1)Net Amount Expendedor Accrued as ofMarch 31, 2025St. Lucie, FL549$230 Q3 2025$185 Monterey, CA3291,100 (2)Q4 202530 Ventura, CA4021,000 (2)Q4 2025458 Hartley, TX2,2191,300 (2)Q4 2030982 Franklin & Grant, WA, & Umatilla, OR1,1264,203 (2)Q4 20322,977 Wicomico & Caroline, MD, and Sussex, DE833155 Q3 203449 

(1)Our obligation to provide capital to fund these improvements does not extend beyond these respective dates.

(2)Pursuant to contractual agreements, we will earn additional rent on the cost of these capital improvements as the funds are disbursed by us.

Ground Lease Obligations

In connection with certain farms acquired through a leasehold interest, we assumed certain ground lease arrangements under which we are the lessee.  Future minimum lease payments due under the remaining non-cancelable terms of these leases as of March 31, 2025, are as follows (dollars in thousands):

PeriodFuture Lease Payments(1)For the remaining nine months ending December 31:2025$40 For the fiscal years ending December 31:2026100 2027100 2028100 2029100 Thereafter756 Total undiscounted lease payments1,196 Less:  imputed interest(439)Present value of lease payments$757 

(1)Certain annual lease payments are set at the beginning of each year to then-current market rates (as determined by the lessor).  The amounts shown above represent estimated amounts based on the lease rates currently in place.

As a result of these ground leases, we recorded lease expense (included within Property operating expenses on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income) of approximately $26,000 for each of the three months ended March 31, 202