Quarterly report [Sections 13 or 15(d)]

REAL ESTATE AND INTANGIBLE ASSETS (Tables)

v3.25.2
REAL ESTATE AND INTANGIBLE ASSETS (Tables)
6 Months Ended
Jun. 30, 2025
Real Estate [Abstract]  
Schedule of Information of Farms The following table summarizes certain information about the 150 farms we owned as of June 30, 2025 (dollars in thousands, except for footnotes):
Location No. of Farms Total
Acres
Farm Acres Acre-feet of
Water Assets
Net Cost Basis(1)
Encumbrances(2)
California(3)(4)(5)
63 34,845 32,321 55,306 $ 825,470  $ 363,072 
Florida(6)
20 13,090 10,279 0 128,585  56,865 
Washington 6 2,520 2,004 0 54,566  14,843 
Arizona(7)
6 6,320 5,333 0 49,093  11,849 
Colorado 12 32,773 25,577 0 45,401  13,379 
Oregon(8)
6 898 736 0 29,271  10,647 
Nebraska 7 5,223 4,949 0 19,782  9,689 
Michigan 12 1,245 778 0 14,942  8,560 
Texas 1 3,667 2,219 0 8,971  — 
Maryland 6 987 863 0 7,916  4,153 
South Carolina 3 597 447 0 3,407  2,076 
Georgia 2 230 175 0 2,303  1,577 
North Carolina 2 310 295 0 2,055  — 
New Jersey 3 116 101 0 2,044  1,166 
Delaware 1 180 140 0 1,277  666 
150 103,001 86,217 55,306 $ 1,195,083  $ 498,542 
(1)Consists of the initial acquisition price (including the costs allocated to both tangible and intangible assets acquired and liabilities assumed), plus subsequent improvements and other capitalized costs associated with the properties, and adjusted for accumulated depreciation and amortization. Specifically, includes Total real estate, net and Lease intangibles, net; plus long-term water assets and related acquisition costs, net above-market lease values, net lease incentives, and net investments in special-purpose LLCs included in Other assets, net; and less net below-market lease values and other deferred revenue included in Other liabilities, net; each as shown on the accompanying Condensed Consolidated Balance Sheets.
(2)Excludes approximately $2.2 million of debt issuance costs related to notes and bonds payable, included in Notes and bonds payable, net on the accompanying Condensed Consolidated Balance Sheets.
(3)Includes ownership in a special-purpose LLC that owns a pipeline conveying water to certain of our properties. As of June 30, 2025, this investment had a net carrying value of approximately $839,000 and is included within Other assets, net on the accompanying Condensed Consolidated Balance Sheets.
(4)Includes eight acres in which we own a leasehold interest via a ground lease with a private individual that expires in December 2040 and five acres in which we own a leasehold interest via a ground sublease with a California municipality that expires in December 2041. As of June 30, 2025, these two ground leases had a net cost basis of approximately $632,000 and are included in Lease intangibles, net on the accompanying Condensed Consolidated Balance Sheets.
(5)Includes 48,309 acre-feet of water stored with Semitropic Water Storage District, located in Kern County, California, and 6,997 surplus water credits in certain of our accounts with Westlands Water District, located in Fresno County, California. See Note 4, “Investments in Water Assets,” for additional information.
(6)Includes certain farms classified as held for sale; see “—Real Estate Held for Sale” below for additional information.
(7)Includes two farms consisting of 1,368 total acres and 1,221 farm acres in which we own leasehold interests via two ground leases with the State of Arizona that expire in February 2032 and February 2035, respectively. As of June 30, 2025, the aggregate net cost basis of these ground leases was zero.
(8)Includes ownership in a special-purpose LLC that owns certain irrigation infrastructure that provides water to two of our farms. As of June 30, 2025, this investment had a net carrying value of approximately $4.7 million and is included within Other assets, net on the accompanying Condensed Consolidated Balance Sheets.
Schedule of Components of Investments in Real Estate
The following table sets forth the components of our investments in tangible real estate assets as of June 30, 2025, and December 31, 2024 (dollars in thousands):
June 30, 2025 December 31, 2024
Real estate:
Land and land improvements $ 728,749  $ 743,141 
Permanent plantings 349,858  349,761 
Irrigation and drainage systems 170,218  169,098 
Farm-related facilities 49,048  49,063 
Other site improvements 14,776  13,569 
Real estate, at cost 1,312,649  1,324,632 
Accumulated depreciation (183,200) (167,782)
Total real estate, net $ 1,129,449  $ 1,156,850 
Schedule of Carrying Value of Lease Intangibles and Accumulated Amortization for Each Intangible Asset or Liability Class
The following table summarizes the carrying values of certain lease intangible assets and the related accumulated amortization as of June 30, 2025, and December 31, 2024 (dollars in thousands):
June 30, 2025 December 31, 2024
Lease intangibles:
Leasehold interest – land $ 797  $ 3,372 
In-place lease values 1,744  1,798 
Leasing costs 2,199  2,280 
Other(1)
117  117 
Lease intangibles, at cost 4,857  7,567 
Accumulated amortization (1,523) (3,979)
Lease intangibles, net $ 3,334  $ 3,588 
(1)Other includes tenant relationships and acquisition-related costs allocated to miscellaneous lease intangibles.
The following table summarizes the carrying values of certain lease intangible assets or liabilities (excluding those related to real estate held for sale) included in Other assets, net or Other liabilities, net, respectively, on the accompanying Condensed Consolidated Balance Sheets and the related accumulated amortization or accretion, respectively, as of June 30, 2025, and December 31, 2024 (dollars in thousands):
  June 30, 2025 December 31, 2024
Intangible Asset or Liability Deferred
Rent Asset
(Liability)
Accumulated
(Amortization)
Accretion
Deferred
Rent Asset
(Liability)
Accumulated
(Amortization)
Accretion
Above-market lease values(1)
$ 695  $ (236) $ 695  $ (198)
Below-market lease values(2)
(1,371) 629  (1,371) 561 
Lease incentives and other deferred revenue, net(3)
13,512  (8,156) 14,192  (3,691)
$ 12,836  $ (7,763) $ 13,516  $ (3,328)
(1)Included as part of Other assets, net on the accompanying Condensed Consolidated Balance Sheets, and the related amortization is recorded as a reduction of Lease revenue, net on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income.
(2)Included as a part of Other liabilities, net on the accompanying Condensed Consolidated Balance Sheets, and the related accretion is recorded as an increase to Lease revenue, net on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income.
(3)Lease incentives are included as part of Other assets, net on the accompanying Condensed Consolidated Balance Sheets, and the related amortization is recorded as a reduction of Lease revenue, net on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. Other deferred revenue primarily is primarily attributable to tenant-funded improvements and is included as a part of Other liabilities, net on the accompanying Condensed Consolidated Balance Sheets, and the related accretion is recorded as an increase to Lease revenue, net on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income.