Company: LANDO
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001495240-25-000012
Chunk: 19

Company: GLADSTONE LAND Corp
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 19
---
 10-K”).  The results of operations for the three months ended March 31, 2025, are not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year.Use of EstimatesThe preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect our reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and our reported amounts of revenues and expenses during the reporting periods.  We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making certain judgments.  Actual results may materially differ from these estimates.

7

Crop InventoryThrough certain of our wholly-owned subsidiaries and via 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 March 31, 2025, we have incurred approximately $2.9 million in growing costs, primarily related to pollination, fertilization, pesticide application, irrigation, and labor.  These costs have been capitalized as crop inventory and are included in “Other assets, net” on the accompanying Condensed Consolidated Balance Sheets at the lower of cost or net realizable value.  As the related crops are harvested and sold later in 2025 and throughout 2026, these costs will be charged to cost of products sold.  In addition, as the crops are harvested and sold, we anticipate incurring additional costs (including harvesting costs, crop insurance, and post-harvest handling fees), which will also be expensed to the cost of products sold.Segment ReportingOur current business strategy includes one operating segment: Real Estate Rental Operations.  We generate revenues, earnings, net income, and cash flows through our single segment by collecting rents from our tenants through operating leases, including reimbursements for certain of our property operating costs.  We expect to generate earnings growth by increasing rents, maintaining high occupancy rates, and controlling expenses.  The primary driver of our revenue growth will be the renewal of existing leases at current market rental rates upon expiration and the acquisition of new properties.  We further believe our active portfolio management, combined with the skills of our asset management team, will allow us to maximize net income across our portfolio.Our CODM is our President and CEO.  Our CODM uses net income to make decisions about allocating