Gladstone Land Corporation Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

REAL ESTATE AND INTANGIBLE ASSETS (Tables)

REAL ESTATE AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2025

The following table provides certain summary information about the 144 farms we owned as of December 31, 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	55,532	$	816,801	$	356,838
Florida	18	10,412	8,635	—	112,960		45,824
Washington	6	2,520	2,004	—	51,162		14,489
Arizona(6)	6	6,320	5,333	—	48,225		11,642
Colorado	10	31,448	24,513	—	38,077		8,924
Oregon(7)	6	898	736	—	29,180		10,421
Nebraska	7	5,223	4,949	—	19,743		9,466
Michigan	12	1,245	778	—	14,676		8,455
Texas	1	3,667	2,219	—	9,329		—
Maryland	6	987	863	—	7,843		4,086
South Carolina	3	597	447	—	3,362		2,051
Georgia	2	230	175	—	2,247		1,553
New Jersey	3	116	101	—	2,025		1,147
Delaware	1	180	140	—	1,265		656

Totals	144	98,688	83,214	55,532	$	1,156,895	$	475,552

(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 Consolidated Balance Sheets.

(2)Excludes approximately $1.9 million of debt issuance costs related to notes and bonds payable, included in Notes and bonds payable, net on the accompanying Consolidated Balance Sheets.

(3)Includes ownership in a special-purpose LLC that owns a pipeline conveying water to certain of our properties. As of December 31, 2025, this investment had a net carrying value of approximately $974,000 and is included within Other assets, net on the accompanying Consolidated Balance Sheet.

(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 December 31, 2025, these two ground leases had a net cost basis of approximately $613,000 and are included in Lease intangibles, net on the accompanying Consolidated Balance Sheets.

(5)Includes 48,309 acre-feet of water stored with Semitropic Water Storage District, located in Kern County, California, and 7,223 surplus water credits in our account with Westlands Water District, located in Fresno County, California. See Note 5, “Investments in Water Assets,” for additional information.

(6)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 December 31, 2025, the aggregate net cost basis of these ground leases was zero.

(7)Includes ownership in a special-purpose LLC that owns certain irrigation infrastructure that provides water to two of our farms. As of December 31, 2025, this investment had a net carrying value of approximately $4.8 million and is included within Other assets, net on the accompanying 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 (excluding real estate held for sale) as of December 31, 2025 and 2024, (dollars in thousands):


	December 31, 2025		December 31, 2024
Real estate:
Land and land improvements	$	717,407	$	743,141
Permanent plantings	345,508		349,761
Irrigation and drainage systems	170,294		169,098
Farm-related facilities	48,789		49,063
Other site improvements	15,015		13,569
Real estate, at cost	1,297,013		1,324,632
Accumulated depreciation	(198,261)		(167,782)
Real estate, net	$	1,098,752	$	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 value of certain lease intangible assets (excluding those related to real estate held for sale) and the related accumulated amortization as of December 31, 2025 and 2024, (dollars in thousands):


	December 31, 2025		December 31, 2024
Lease intangibles:
Leasehold interest – land	$	797	$	3,372
In-place lease values	1,744		1,798
Leasing costs	2,139		2,280
Other(1)	117		117
Lease intangibles, at gross cost	4,797		7,567
Accumulated amortization	(1,668)		(3,979)
Lease intangibles, net	$	3,129	$	3,588

(1)Other consists primarily of 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 Consolidated Balance Sheets and the related accumulated amortization or accretion, respectively, as of December 31, 2025 and 2024 (dollars in thousands):


	December 31, 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	$	(274)	$	695	$	(198)
Below-market lease values(2)	(1,371)		697		(1,371)		561
Lease incentives and other deferred revenue, net(3)	13,365		(1,012)		14,192		(3,691)
	$	12,689	$	(589)	$	13,516	$	(3,328)

(1)Included as part of Other assets, net on the accompanying Consolidated Balance Sheets, and the related amortization is recorded as a reduction of Lease revenue, net on the accompanying Consolidated Statements of Operations and Comprehensive Income.

(2)Included as a part of Other liabilities, net on the accompanying Consolidated Balance Sheets, and the related accretion is recorded as an increase to Lease revenue, net on the accompanying Consolidated Statements of Operations and Comprehensive Income.

(3)Lease incentives are included as part of Other assets, net on the accompanying Consolidated Balance Sheets, and the related amortization is recorded as a reduction of Lease revenue, net on the accompanying Consolidated Statements of Operations and Comprehensive Income. Other deferred revenue is primarily attributable to tenant-funded improvements and is included as a part of Other liabilities, net on the accompanying Consolidated Balance Sheets, and the related accretion is recorded as an increase to Lease revenue, net on the accompanying Consolidated Statements of Operations and Comprehensive Income.

Schedule of Estimated Aggregate Amortization Expense

The estimated aggregate amortization expense to be recorded related to in-place lease values, leasing costs, and tenant relationships and the estimated net impact on lease revenue from the amortization of above-market lease values and lease incentives or accretion of below-market lease values and other deferred revenues for each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands):


Period		Estimated Amortization Expense		Estimated Net Increase (Decrease) to Lease Revenue
For the fiscal years ending December 31:	2026	$	458	$	(11,503)
	2027	458		(26)
	2028	457		(82)
	2029	452		(44)
	2030	487		(133)
	Thereafter	817		(312)
		$	3,129	$	(12,100)

Schedule of Future Lease Payments

The following tables summarize the future net lease payments to be received under noncancellable leases as of December 31, 2025 (dollars in thousands):


Period		Tenant Lease Revenue(1)
For the fiscal years ending December 31,	2026	$	48,814
	2027	49,368
	2028	43,974
	2029	39,592
	2030	36,482
	Thereafter	104,303
		$	322,533

(1)Amounts are net of fixed lease incentive payments owed to tenants under certain lease agreements and excludes contingent rental payments, such as participation rents.