Farmland Partners Inc.

Previous wording

We make statements in this Quarterly Report on Form 10-Q that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). These forward-looking statements include, without limitation, statements concerning pending acquisitions and dispositions, projections, predictions, expectations, estimates or forecasts as to our business, financial and operational results, future stock repurchases and other transactions affecting our capitalization, our dividend policy, future economic performance, crop yields and prices and future rental rates for our properties, ongoing litigation, as well as statements of management’s goals and objectives and other similar expressions concerning matters that are not historical facts. When we use the words “may,” “should,” “could,” “would,” “predicts,” “potential,” “confident,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” or similar expressions or their negatives, as well as statements in future tense, we intend to identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance, and our actual results could differ materially from those set forth in the forward-looking statements. Some factors that might cause such a difference include the following: the ongoing war in Ukraine and the ongoing conflicts in the Middle East and their impact on our tenants’ businesses and the farm economy generally, changes in tariffs and trade policies in the United States and other countries that import U.S. agricultural products, high inflation and elevated interest rates, the onset of an economic recession in the United States and other countries that impact the farm economy, extreme weather events, such as droughts, tornadoes, hurricanes, wildfires or floods, the impact of future public health crises on our business and on the economy and capital markets generally, general volatility of the capital markets and the market price of our common stock, changes in our business strategy, availability, terms and deployment of capital, our ability to refinance existing indebtedness at or prior to maturity on favorable terms, or at all, availability of qualified personnel, changes in our industry or the general economy, the degree and nature of our competition, the outcomes of ongoing litigation, our ability to identify new acquisitions or dispositions and close on pending acquisitions or dispositions and the other factors described in the risk factors described in Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2…

Excerpt shortened here; the source contains the full paragraph.

Current wording

We make statements in this Quarterly Report on Form 10-Q that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). These forward-looking statements include, without limitation, statements concerning pending acquisitions and dispositions, projections, predictions, expectations, estimates or forecasts as to our business, financial and operational results, future stock repurchases and other transactions affecting our capitalization, our dividend policy, future economic performance, crop yields and prices and future rental rates for our properties, ongoing litigation, as well as statements of management’s goals and objectives and other similar expressions concerning matters that are not historical facts. When we use the words “may,” “should,” “could,” “would,” “predicts,” “potential,” “confident,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” or similar expressions or their negatives, as well as statements in future tense, we intend to identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance, and our actual results could differ materially from those set forth in the forward-looking statements. Some factors that might cause such a difference include the following: the ongoing war in Ukraine and the ongoing conflicts in the Middle East and their impact on our tenants’ businesses and the farm economy generally, changes in tariffs and trade policies in the United States and other countries that import U.S. agricultural products, including the impact of tariffs on the export of U.S. soybeans to China, high inflation and elevated interest rates, the onset of an economic recession in the United States and other countries that impact the farm economy, extreme weather events, such as droughts, tornadoes, hurricanes, wildfires or floods, the impact of future public health crises on our business and on the economy and capital markets generally, general volatility of the capital markets and the market price of our common stock, changes in our business strategy, availability, terms and deployment of capital, our ability to refinance existing indebtedness at or prior to maturity on favorable terms, or at all, availability of qualified personnel, changes in our industry or the general economy, the degree and nature of our competition, the outcomes of ongoing litigation, our ability to identify new acquisitions or dispositions and close on pending acquisitions or dispositions and the other factors described in the risk factors described in Item 1A, “Risk Fac…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

Our primary strategic objective is to utilize our position as a leading institutional acquirer, owner and manager of high-quality farmland located in agricultural markets throughout North America to deliver strong risk adjusted returns to investors through a combination of cash dividends and asset appreciation. As of June 30, 2025, we owned farms with an aggregate of approximately 75,900 acres in Arkansas, California, Colorado, Illinois, Indiana, Louisiana, Missouri, Nebraska, South Carolina, Texas and West Virginia. In addition, as of June 30, 2025, we owned land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand and served as property manager for approximately 49,600 acres of farmland, including farms in Colorado, Illinois, Indiana, Iowa, Louisiana, Mississippi, North Carolina, Ohio and South Carolina. As of June 30, 2025, approximately 60% of our portfolio (by value) was used to grow primary crops, such as corn, soybeans, wheat, rice and cotton, and approximately 40% was used to produce specialty crops, such as almonds, pistachios, citrus, avocados, strawberries, and edible beans. We believe our portfolio gives investors the economic benefit of increasing global food demand in the face of growing scarcity of high-

Current wording

Our primary strategic objective is to utilize our position as a leading institutional acquirer, owner and manager of high-quality farmland located in agricultural markets throughout North America to deliver strong risk adjusted returns to investors through a combination of cash dividends and asset appreciation. As of September 30, 2025, we owned farms with an aggregate of approximately 75,600 acres in Arkansas, California, Colorado, Illinois, Indiana, Louisiana, Missouri, Nebraska, South Carolina, Texas and West Virginia. In addition, as of September 30, 2025, we owned land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand and served as property manager for approximately 49,600 acres of farmland, including farms in Colorado, Illinois, Indiana, Iowa, Louisiana, Mississippi, North Carolina, Ohio and South Carolina. As of September 30, 2025, approximately 60% of our portfolio (by value) was used to grow primary crops, such as corn, soybeans, wheat, rice and cotton, and approximately 40% was used to produce specialty crops, such as almonds, pistachios, citrus, avocados, strawberries, and edible beans. We believe our

Previous wording

quality farmland and will continue to reflect the approximate allocation of U.S. agricultural output between primary crops and animal protein (whose production relies principally on primary crops as feed), on one hand, and specialty crops, on the other.

Current wording

portfolio gives investors the economic benefit of increasing global food demand in the face of growing scarcity of high-quality farmland and will continue to reflect the approximate allocation of U.S. agricultural output between primary crops and animal protein (whose production relies principally on primary crops as feed), on one hand, and specialty crops, on the other.

Previous wording

FPI was incorporated in Maryland on September 27, 2013, and is the sole member of the sole general partner of the Operating Partnership, which is a Delaware limited partnership that was formed on September 27, 2013. All of FPI’s assets are held by, and its operations are primarily conducted through, the Operating Partnership and its wholly owned subsidiaries. As of June 30, 2025, FPI owned 97.5% of the Common units and none of the Series A preferred units. See “Note 9—Stockholders’ Equity and Non-controlling Interests” within the notes to the consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information regarding the non-controlling interests.

Current wording

FPI was incorporated in Maryland on September 27, 2013, and is the sole member of the sole general partner of the Operating Partnership, which is a Delaware limited partnership that was formed on September 27, 2013. All of FPI’s assets are held by, and its operations are primarily conducted through, the Operating Partnership and its wholly owned subsidiaries. As of September 30, 2025, FPI owned 97.6% of the Common units and none of the Series A preferred units. See “Note 9—Stockholders’ Equity and Non-controlling Interests” within the notes to the consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information regarding the non-controlling interests.

Previous wording

We intend to continue acquiring additional farmland that we believe provides opportunities for risk-adjusted investment returns consistent with our primary strategic objective. We also intend to continue to selectively dispose of assets when we believe we can redeploy the proceeds from such sales in a manner that enhances stockholder returns. We also may acquire, and make loans secured by mortgages on, properties related to farming, such as grain storage facilities, grain elevators, feedlots, processing plants and distribution centers, as well as livestock farms or ranches. In addition, we provide volume purchasing services to our tenants, engage directly in farming, and provide property management, auction, and brokerage services through FPI Agribusiness Inc., our taxable REIT subsidiary (the “TRS” or “FPI Agribusiness”). As of June 30, 2025, the TRS directly operated 2,103 acres of farmland located in California.

Current wording

We intend to continue acquiring additional farmland that we believe provides opportunities for risk-adjusted investment returns consistent with our primary strategic objective. We also intend to continue to selectively dispose of assets when we believe we can redeploy the proceeds from such sales in a manner that enhances stockholder returns. We also may acquire, and make loans secured by mortgages on, properties related to farming, such as grain storage facilities, grain elevators, feedlots, processing plants and distribution centers, as well as livestock farms or ranches. In addition, we provide volume purchasing services to our tenants, engage directly in farming, and provide property management, auction, and brokerage services through FPI Agribusiness Inc., our taxable REIT subsidiary (the “TRS” or “FPI Agribusiness”). As of September 30, 2025, the TRS directly operated 1,845 acres of farmland located in California.

Previous wording

In addition, for leases that provide for variable rent payments, we may recognize revenue up to the amount of the crop insurance minimum. The excess above crop insurance minimums cannot be recognized as revenue until the tenant enters into a contract to sell their crop. Generally, we expect tenants to enter into contracts to sell their crop following the harvest of the crop.

Current wording

In addition, for leases that provide for variable rent payments, we may recognize revenue up to the amount of the crop insurance minimum. The excess above crop insurance minimums cannot be recognized as revenue until the tenant enters

Previous wording

Despite advances in income, according to “The State of Food Security and Nutrition in the World 2024,” a report by the United Nations Food and Agriculture Organization, 2.33 billion people were facing moderate to severe food insecurity in 2023. In particular, the disruption in farming operations in Ukraine as a result of the ongoing war in Ukraine has stressed the food supply for many countries that depend on imports of agricultural products from the region, such as Egypt (wheat for food products) and China (corn for livestock).The Russian Federation is also a major exporter of fertilizers and trade restrictions have hampered the flow of fertilizers to countries dependent on imports from the Black Sea region. United States farmers, including our tenants, however, generally source fertilizers from the United States and Canada.

Current wording

Despite advances in income, according to “The State of Food Security and Nutrition in the World 2025,” a report by the United Nations Food and Agriculture Organization, 2.3 billion people were facing moderate to severe food insecurity in 2024. In particular, the disruption in farming operations in Ukraine as a result of the ongoing war in Ukraine has stressed the food supply for many countries that depend on imports of agricultural products from the region, such as Egypt (wheat for food products) and China (corn for livestock).The Russian Federation is also a major exporter of fertilizers and trade restrictions have hampered the flow of fertilizers to countries dependent on imports from the Black Sea region. United States farmers, including our tenants, however, generally source fertilizers from the United States and Canada.

Previous wording

The leases for the majority of the row-crop properties in our portfolio provide that tenants pay us, typically, 50% of their fixed farm rent in advance of each spring planting season. As a result, we collect a significant portion of total annual rents in the first calendar quarter of each year, which we believe mitigates the tenant credit risk associated with the

Current wording

The leases for the majority of the row-crop properties in our portfolio provide that tenants pay us, typically, 50% of their fixed farm rent in advance of each spring planting season. As a result, we collect a significant portion of total annual

Previous wording

variability of farming operations that could be adversely impacted by poor crop yields, weather conditions, mismanagement, undercapitalization or other factors affecting our tenants. Tenant credit risk is further mitigated by the farming industry practice of purchasing crop insurance in almost every circumstance because it is required by lenders who provide working capital financing to our tenants and due to requirements in our leases. In certain cases, the Company perfects its security interest in the crop insurance proceeds and the underlying growing crops using practices applicable in the state where the farm is located. Prior to acquiring farmland property, we take into consideration the competitiveness of the local farm-operator tenant environment in order to enhance our ability to quickly replace a tenant that is unwilling to renew a lease or is unable to pay a rent payment when it is due. Many of our leases provide for the reimbursement by the tenant of the property’s real estate taxes that we pay in connection with the farms they rent from us.

Current wording

rents in the first calendar quarter of each year, which we believe mitigates the tenant credit risk associated with the variability of farming operations that could be adversely impacted by poor crop yields, weather conditions, mismanagement, undercapitalization or other factors affecting our tenants. Tenant credit risk is further mitigated by the farming industry practice of purchasing crop insurance in almost every circumstance because it is required by lenders who provide working capital financing to our tenants and due to requirements in our leases. In certain cases, the Company perfects its security interest in the crop insurance proceeds and the underlying growing crops using practices applicable in the state where the farm is located. Prior to acquiring farmland property, we take into consideration the competitiveness of the local farm-operator tenant environment in order to enhance our ability to quickly replace a tenant that is unwilling to renew a lease or is unable to pay a rent payment when it is due. Many of our leases provide for the reimbursement by the tenant of the property’s real estate taxes that we pay in connection with the farms they rent from us.

Previous wording

Most of our farming leases have lease terms of three years for row crops and up to seven years for permanent crops, pursuant to which each tenant is responsible for substantially all of the operating expenses related to the property, including maintenance, water usage and insurance. As a result, we believe that the effect on us of inflationary increases in operating expenses are borne largely by our tenants under the terms of their leases, and increases in farmer profitability generally lead to increased rents upon lease renewals, as we experienced in the most recent renewal cycle in late 2023.

Current wording

Most of our farming leases have lease terms of three years for row crops and up to seven years for permanent crops, pursuant to which each tenant is responsible for substantially all of the operating expenses related to the property, including maintenance, water usage and insurance. As a result, we believe that the effect on us of inflationary increases in operating expenses are borne largely by our tenants under the terms of their leases, and increases in farmer profitability generally lead to increased rents upon lease renewals, as we experienced in the 2023 renewal cycle.

Previous wording

High levels of inflation prompted the Board of Governors of the United States Federal Reserve (the “Federal Reserve”) to increase the federal funds rate eleven times between March 2022 and July 2023, which led to a significant increase in market short- and long-term interest rates beginning in early 2022. This increase in rates significantly increased the cost of our floating rate debt and also significantly increased the cost of certain of our MetLife debt with interest rates that have been reset since the beginning of 2022. However, we have recently repaid most of our floating rate debt with the proceeds from property dispositions. Moreover, the Federal Reserve lowered the federal funds rate in September, November and December 2024. We anticipate future rate cuts, if any, will have a favorable impact on the cost of debt for the Company moving forward, and the Federal Reserve has most recently signaled that most members currently expect to cut the federal funds rate as soon as later in this calendar year. However, interest rates remain high relative to the recent past, and the Federal Reserve’s plans are subject to numerous uncertainties.

Current wording

High levels of inflation prompted the Board of Governors of the United States Federal Reserve (the “Federal Reserve”) to increase the federal funds rate eleven times between March 2022 and July 2023, which led to a significant increase in market short- and long-term interest rates beginning in early 2022. This increase in rates significantly increased the cost of our floating rate debt and also significantly increased the cost of certain of our MetLife debt with interest rates that have been reset since the beginning of 2022. However, we have recently repaid most of our floating rate debt with the proceeds from property dispositions. Moreover, the Federal Reserve lowered the federal funds rate in September, November and December 2024 and in September 2025. We anticipate future rate cuts, if any, will have a favorable impact on the cost of debt for the Company moving forward, and the Federal Reserve has most recently signaled that most members currently expect to cut the federal funds rate as soon as later in this calendar year. However, interest rates remain high relative to the recent past, and the Federal Reserve’s plans are subject to numerous uncertainties.

Previous wording

At June 30, 2025, $27.9 million, or 14.4%, of our debt had variable interest rates, however, as stated in “Note 10—Hedge Accounting” to the accompanying consolidated financial statements, we have an interest rate swap with Rabobank for $4.9 million, which effectively reduces our floating rate exposure to $23.0 million.

Current wording

At September 30, 2025, $4.9 million, or 2.9%, of our debt had variable interest rates, however, as stated in “Note 10—Hedge Accounting” to the accompanying consolidated financial statements, we have an interest rate swap with Rabobank for $4.9 million, which effectively reduces our floating rate exposure to $0.0 million.

Previous wording

While the current uncertainty around terms of international trade going forward has introduced uncertainty around crop pricing and therefore farmer profitability, we believe that the significant role of U.S. crop production vis-a-vis global

Current wording

While the ongoing uncertainty around terms of international trade, including the impact of tariffs on the export of U.S. soybeans to China, has introduced uncertainty around crop pricing and therefore farmer profitability, we believe that the

Previous wording

food demand will lead to only temporary dislocations in crop supply chains for the major commodity crops, and therefore farmland values will not be significantly impacted.

Current wording

significant role of U.S. crop production vis-a-vis global food demand will generally lead to only temporary dislocations in crop supply chains for the major commodity crops, and therefore farmland values will not be significantly impacted.

Previous wording

Our net income for the three months ended June 30, 2025 was primarily affected by dispositions that occurred in 2024 and 2025, as well as higher crop sales, interest income, and lower interest expense, partially offset by higher cost of goods sold, lower general and administrative expenses and impairment of assets.

Current wording

Our net income for the three months ended September 30, 2025 was primarily affected by dispositions that occurred in 2024 and 2025, as well as higher interest income, and lower interest expense and general and administrative expenses.

Previous wording

Rental income decreased $3.5 million, or 36.8%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, resulting primarily from dispositions that occurred in 2024.

Current wording

Rental income decreased $3.8 million, or 38.6%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, resulting primarily from dispositions that occurred in 2024.

Previous wording

Depreciation, depletion and amortization decreased $0.3 million, or 21.0%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. This decrease was a result of asset dispositions in 2024 and 2025 and more assets becoming fully depreciated.

Current wording

Depreciation, depletion and amortization decreased $0.5 million, or 33.7%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This decrease was a result of asset dispositions in 2024 and 2025 and a lower cost basis on assets impaired during the three months ended June 30, 2025.

Previous wording

Property operating expenses decreased $0.3 million, or 14.1%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, resulting primarily from lower tax and insurance expense primarily due to dispositions that occurred in 2024 and 2025.

Current wording

Property operating expenses decreased $0.5 million, or 27.8%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, resulting primarily from lower tax, repairs and maintenance and insurance expense primarily due to dispositions that occurred in 2024 and 2025.

Previous wording

General and administrative expenses decreased $1.3 million, or 20.9%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily driven by a one-time severance expense of $1.4 million during the six months ended June 30, 2024, partially offset by slight increases in other expenses in the current period.

Current wording

General and administrative expenses decreased $0.4 million, or 14.8%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily driven by accelerated stock-based compensation during the three months ended September 30, 2024.

Previous wording

Legal and accounting expenses increased $0.3 million, or 61.4%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Despite this increase, legal and accounting expense continues to be substantially lower than in the past and we expect it to be a very manageable element of the Company’s expense structure.

Current wording

Legal and accounting expenses increased $0.3 million, or 61.0%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Despite this increase, legal and accounting expense continues to be substantially lower than in the past and we expect it to be a very manageable element of the Company’s expense structure.

Previous wording

Impairment of assets was $16.8 million for the three months ended June 30, 2025 compared to $0.0 million for the three months ended June 30, 2024. Impairment during the three months ended June 30, 2025 related to certain properties on the West Coast.

Current wording

Impairment of assets was $1.0 million for the three months ended September 30, 2025 compared to $0.0 million for the three months ended September 30, 2024. Impairment during the three months ended September 30, 2025 related to a property on the West Coast.

Previous wording

Income from equity method investment was negligible during the three months ended June 30, 2025 and remained relatively consistent compared to the three months ended June 30, 2024.

Current wording

Income from equity method investment increased $0.2 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

Previous wording

(Gain) loss on disposition of assets, net changed from loss on disposition of assets of less than $0.1 million for the three months ended June 30, 2024 to gain on disposition of assets of $24.2 million for the three months ended June 30, 2025. The net loss on disposition of assets during the three months ended June 30, 2024 was attributable to the dispositions of fixed assets while the gain on disposition of assets during the three months ended June 30, 2025 was attributable to dispositions of 32 properties as well as the disposal of fixed assets.

Current wording

(Gain) loss on disposition of assets, net changed from gain on disposition of assets of $2.0 million for the three months ended September 30, 2024 to loss on disposition of assets of $0.5 million for the three months ended September 30, 2025. The gain on sale of assets during the three months ended September 30, 2024 was due to the recognition of gains from the sale of two properties in 2023 that had previously been deferred and the disposal of fixed assets, while the loss on sale of assets during the three months ended September 30, 2025 was attributable to the disposition of one California property.

Previous wording

Interest expense decreased $2.8 million, or 53.6%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. This decrease was the result of lower outstanding debt primarily attributable to significant debt repayments during the year ended December 31, 2024 and six months ended June 30, 2025 and a lower weighted average interest rate due to a reduction in our exposure to variable interest rates.

Current wording

Interest expense decreased $3.2 million, or 58.7%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This decrease was the result of lower outstanding debt primarily attributable to significant debt repayments during the year ended December 31, 2024 and nine months ended September 30, 2025 and a lower weighted average interest rate due to a reduction in our exposure to variable interest rates.

Previous wording

Our net income for the six months ended June 30, 2025 was primarily affected by dispositions that occurred in 2024 and 2025, as well as higher crop sales, interest income, proceeds from a solar lease arrangement with a tenant, and lower interest expense and general and administrative expense, partially offset by lower income from forfeited deposits, higher cost of goods sold and impairment.

Current wording

Our net income for the nine months ended September 30, 2025 was primarily affected by dispositions that occurred in 2024 and 2025, as well as higher crop sales, interest income, proceeds from a solar lease arrangement with a tenant, and lower interest expense and general and administrative expense, partially offset by lower income from forfeited deposits, higher cost of goods sold and impairment.

Previous wording

Rental income decreased $6.8 million, or 34.2%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, resulting primarily from dispositions that occurred in 2024, partially offset by proceeds from a solar lease arrangement with a tenant.

Current wording

Rental income decreased $10.5 million, or 35.6%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, resulting primarily from dispositions that occurred in 2024, partially offset by proceeds from a solar lease arrangement with a tenant.

Previous wording

Crop sales increased $0.7 million, or 43.3%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. This increase was the result of a higher volume of sales on our citrus properties.

Current wording

Crop sales increased $0.9 million, or 20.5%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. This increase was primarily the result of accelerated revenue of walnuts due to the sale of a property and a higher volume of citrus and avocado sales on our directly operated properties.

Previous wording

Other revenue increased $2.8 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. This increase was primarily due to a higher average balance on loans under the FPI Loan Program and financing receivables causing an increase in interest income.

Current wording

Other revenue increased $4.4 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. This increase was primarily due to a higher average balance on loans under the FPI Loan Program and financing receivables causing an increase in interest income.

Previous wording

Depreciation, depletion and amortization decreased $0.6 million, or 20.9%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. This decrease was a result of asset dispositions in 2024 and 2025 and more assets becoming fully depreciated.

Current wording

Depreciation, depletion and amortization decreased $1.1 million, or 25.1%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. This decrease was a result of asset dispositions in 2024 and 2025 and a lower cost basis on assets impaired during the nine months ended September 30, 2025.

Previous wording

Property operating expenses decreased $0.6 million, or 15.9%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, resulting from lower tax and insurance expense primarily due to dispositions that occurred in 2024 and 2025.

Current wording

Property operating expenses decreased $1.1 million, or 20.0%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, resulting primarily from lower tax, repairs and maintenance and insurance expense primarily due to dispositions that occurred in 2024 and 2025.

Previous wording

Cost of goods sold increased $0.8 million, or 63.4%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. This increase was primarily the result of increased costs of water and tree pruning, partially offset by lower impairment expense on inventory.

Current wording

Cost of goods sold increased $1.1 million, or 37.8%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. This increase was primarily the result of accelerated costs of walnuts due to the sale of a property as well as increased costs of sales related to water and tree pruning on our citrus and avocado properties.

Previous wording

Acquisition and due diligence costs were negligible during the six months ended June 30, 2025 and remained relatively consistent compared to the six months ended June 30, 2024.

Current wording

Acquisition and due diligence costs were negligible during the nine months ended September 30, 2025 and remained relatively consistent compared to the nine months ended September 30, 2024.

Previous wording

General and administrative expenses decreased $1.3 million, or 35.4%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily driven by a one-time severance expense of $1.4 million during the three months ended June 30, 2024, partially offset by slight increases in other expenses in the current period.

Current wording

General and administrative expenses decreased $1.7 million, or 19.1%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily driven by a one-time severance expense of $1.4 million and accelerated stock-based compensation during the nine months ended September 30, 2024.

Previous wording

Legal and accounting expenses increased $0.4 million, or 48.8%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Despite this increase, legal and accounting expense continues to be substantially lower than in the past and we expect it to be a very manageable element of the Company’s expense structure.

Current wording

Legal and accounting expenses increased $0.7 million, or 53.7%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Despite this increase, legal and accounting expense continues to be substantially lower than in the past and we expect it to be a very manageable element of the Company’s expense structure.

Previous wording

Impairment of assets was $16.8 million for the six months ended June 30, 2025 compared to $0.0 million for the six months ended June 30, 2024. Impairment during the six months ended June 30, 2025 related to certain properties on the West Coast.

Current wording

Impairment of assets was $17.8 million for the nine months ended September 30, 2025 compared to $0.0 million for the nine months ended September 30, 2024. Impairment during the nine months ended September 30, 2025 related to certain properties on the West Coast.

Previous wording

Other operating expenses were negligible during the six months ended June 30, 2025 and remained relatively consistent compared to the six months ended June 30, 2024.

Current wording

Other operating expenses were negligible during the nine months ended September 30, 2025 and remained relatively consistent compared to the nine months ended September 30, 2024.

Previous wording

Income from equity method investment remained relatively flat at less than $0.1 million and $0.1 million for the six months ended June 30, 2025 and 2024, respectively.

Current wording

Income from equity method investment remained relatively flat at $0.2 million and $0.1 million for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

(Gain) loss on disposition of assets, net changed from loss on disposition of assets of $0.1 million for the six months ended June 30, 2024 to gain on disposition of assets of $25.0 million for the six months ended June 30, 2025. The net loss on disposition of assets during the six months ended June 30, 2024 was attributable to the dispositions of fixed assets while the gain on disposition of assets during the six months ended June 30, 2025 was attributable to dispositions of 34 properties as well as the disposal of fixed assets.

Current wording

Gain on disposition of assets, net increased $22.6 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The net gain on disposition of assets during the nine months ended September 30, 2024 was due to the recognition of gains from the sale of two properties in 2023 that had previously been deferred and the disposal of fixed assets, while the gain on disposition of assets during the nine months ended September 30, 2025 was attributable to dispositions of 35 properties as well as the disposal of fixed assets.

Previous wording

Gain on forfeited earnest money decreased $1.2 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, due to the termination of a repurchase agreement and the retention of $1.2 million in earnest money payments that occurred during the six months ended June 30, 2024.

Current wording

Gain on forfeited earnest money decreased $1.2 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, due to the termination of a repurchase agreement and the retention of $1.2 million in earnest money payments that occurred during the nine months ended September 30, 2024.

Previous wording

Interest expense decreased $5.2 million, or 50.7%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. This decrease was the result of lower outstanding debt primarily attributable to significant debt repayments during the year ended December 31, 2024 and six months ended June 30, 2025 and a lower weighted average interest rate due to a reduction in our exposure to variable interest rates.

Current wording

Interest expense decreased $8.4 million, or 53.5%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. This decrease was the result of lower outstanding debt primarily attributable to significant debt repayments during the year ended December 31, 2024 and nine months ended September 30, 2025 and a lower weighted average interest rate due to a reduction in our exposure to variable interest rates.