Gladstone Land Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Lease Revenues

Lease Revenues

3 Months Ended

Mar. 31, 2023

LEASE REVENUES

The following table sets forth the components of our lease revenue for the three months ended March 31, 2023 and 2022 (dollars in thousands, except for footnotes):


	Three Months Ended March 31,
	2023		2022
Fixed lease payments(1)	$	20,960	$	19,938
Variable lease payments(2)	242		5
Lease revenue, net(3)	$	21,202	$	19,943

(1)Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the respective lease terms and includes the amortization of above-market lease values and lease incentives and the accretion of below-market lease values and other deferred revenue.

(2)Variable lease payments primarily consist of participation rents, which are generally based on a percentage of the gross crop revenues earned on the farm, and reimbursements of certain property operating expenses by tenants. Participation rents are generally recognized when all contingencies have been resolved and when actual results become known or estimable, enabling us to estimate and/or measure our share of such gross revenues. During the three months ended March 31, 2023 and 2022, we recorded participation rents of approximately $195,000 and $0, respectively, and reimbursements of certain property operating expenses by tenants of approximately $37,000 and $5,000, respectively. In addition, during the three months ended March 31, 2023, we recorded approximately $10,000 of late fees.

(3)Reflected as a line item on our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income.