Gladstone Land Corporation Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

REAL ESTATE AND INTANGIBLE ASSETS (Tables)

REAL ESTATE AND INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2026

The following table summarizes certain information about the 144 farms we owned as of March 31, 2026 (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	55,649	$	807,045	$	368,043
Florida	18	10,412	8,635	0	111,581		45,424
Washington	6	2,520	2,004	0	50,355		14,489
Arizona(6)	6	6,320	5,333	0	47,809		12,000
Colorado	10	31,448	24,513	0	38,011		8,770
Oregon(7)	6	898	736	0	28,920		10,349
Nebraska	7	5,223	4,949	0	19,729		9,242
Michigan	12	1,245	778	0	14,394		8,348
Texas	1	3,667	2,219	0	9,298		—
Maryland	6	987	863	0	7,811		4,018
South Carolina	3	597	447	0	3,339		2,025
Georgia	2	230	175	0	2,219		1,529
New Jersey	3	116	101	0	2,010		1,147
Delaware	1	180	140	0	1,260		645

	144	98,688	83,214	55,649	$	1,143,781	$	486,029

(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 included in Investments in water assets; 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 $1.8 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 March 31, 2026, this investment had a net carrying value of approximately $775,000 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 March 31, 2026, these two ground leases had a net cost basis of approximately $603,000 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; 7,264 surplus water credits in certain of our accounts with Westlands Water District, located in Fresno County, California; and 76 acre-feet of water stored with Belridge Water Storage District, located in Kern 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 March 31, 2026, 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 March 31, 2026, this investment had a net carrying value of approximately $4.8 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 March 31, 2026, and December 31, 2025 (dollars in thousands):


	March 31, 2026		December 31, 2025
Real estate:
Land and land improvements	$	716,878	$	717,407
Permanent plantings	345,021		345,508
Irrigation and drainage systems	170,035		170,294
Farm-related facilities	48,997		48,789
Other site improvements	15,044		15,015
Real estate, at cost	1,295,975		1,297,013
Accumulated depreciation	(208,264)		(198,261)
Total real estate, net	$	1,087,711	$	1,098,752

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 March 31, 2026, and December 31, 2025 (dollars in thousands):


	March 31, 2026		December 31, 2025
Lease intangibles:
Leasehold interest – land	$	797	$	797
In-place lease values	1,744		1,744
Leasing costs	2,139		2,139
Other(1)	117		117
Lease intangibles, at cost	4,797		4,797
Accumulated amortization	(1,765)		(1,668)
Lease intangibles, net	$	3,032	$	3,129

(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 March 31, 2026, and December 31, 2025 (dollars in thousands):


	March 31, 2026				December 31, 2025
Intangible Asset or Liability	Deferred Rent Asset (Liability)		Accumulated (Amortization) Accretion		Deferred Rent Asset (Liability)		Accumulated (Amortization) Accretion
Above-market lease values(1)	$	695	$	(275)	$	695	$	(274)
Below-market lease values(2)	(1,371)		731		(1,371)		697
Lease incentives and other deferred revenue, net(3)	13,529		(3,018)		13,365		(1,012)
	$	12,853	$	(2,562)	$	12,689	$	(589)

(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 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.