GLADSTONE LAND Corp
For the period ended Jun 30, 2026. Filed Aug 11, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 11, 2026
LAND$7.02-0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-11.
0001495240-26-000016
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-11.
0001495240-26-000021
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 208 previous paragraphs and 219 current paragraphs.
137 unchanged; 62 reworded; 15 added; 8 removed; 1 previous and 5 current paragraphs rearranged.
Tables are not compared: 17 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
The ongoing conflict in the Middle East, together with broader trade, tariff, and domestic policy developments, continues to contribute to uncertainty in U.S. agricultural markets. Despite this uncertainty, U.S. export demand and pricing for certain tree nuts have remained resilient, supporting improved grower economics. Input cost inflation also remains a concern across crops and regions, particularly with respect to energy, fertilizer, and labor costs, and growers continue to pursue operating efficiencies to help protect profit margins. In addition, ongoing negotiations regarding the Farm Bill and trade agreements with Canada and Mexico may create further uncertainty for producers making longer-term operating and investment decisions.
Current report
Almond markets continue to experience strong demand across export markets, and current demand generally exceeds available supply. While buyers have remained focused on meeting near-term needs, longer-term purchasing activity has remained limited. These market dynamics have supported improved pricing, resulting in higher projected almond prices.
Current report
The 2025-2026 water year concluded with below-average snowpack but average-to-above-average precipitation in many areas where we own farms. Reservoir storage remains above historical averages, supporting relatively stable near-term water supply conditions. However, certain federal water allocations have remained below expectations, increasing the cost of supplemental water for some of our farms. We have not experienced any material water shortages to date, although regulatory and conveyance constraints continue to affect the availability and cost of water in certain regions. El Niño conditions have developed and are expected to persist through the remainder of 2026, which may increase the likelihood of additional precipitation during the coming winter, although the timing and amount of such precipitation remain uncertain.
Current report
Property Sale
Current report
In July 2026, we completed the sale of two farms in Florida totaling 617 gross acres for an aggregate sales price of approximately $3.2 million. Including closing costs, we recognized a net loss on the sale of approximately $159,000.
Current report
Revenue from the sale of crops and the related cost of sales for the three months ended June 30, 2026, are shown in the following table (dollars in thousands):
Current report
Loan Repayment
Current report
In July 2026, we repaid a $2.8 million loan that bore interest at a fixed, stated rate of 4.13% and an effective interest rate (after interest patronage, where applicable) of 3.51%.
Current report
Registration Statement
Current report
See Notes 10, “Equity,” and 13, “Subsequent Events,” within the accompanying notes to our condensed consolidated financial statements for further discussion of the 2025 Repurchase Program and 2026 Repurchase Program, respectively.
Current report
Series E Redemptions
Current report
From April 1, 2026 through the date of this filing, 31,400 shares of our 5.00% Series E Cumulative Redeemable Preferred Stock, par value $0.001 per share (the “Series E Preferred Stock”) were tendered for optional redemption, which were satisfied with aggregate cash payments of approximately $707,000.
Current report
Revenue from the sale of crops and the related cost of sales for the three and six months ended June 30, 2026, are shown in the following table (dollars in thousands):
Current report
During the three and six months ended June 30, 2026, we recognized aggregate impairment charges of approximately $4.2 million and $5.1 million, respectively, on two properties: one in St. Lucie County, Florida (consisting of two farms) and one in Yuma County, Arizona (consisting of four farms) due to the estimated fair values being lower than their respective carrying values. We did not recognize any impairment charges during the three or six months ended June 30, 2025.
Current report
Other (Expense) Income
Removed paragraphs (8)
Previous report
The ongoing conflict in the Middle East, together with broader trade and tariff developments, continues to contribute to uncertainty in U.S. agricultural export markets. The conflict has disrupted certain global shipping routes and contributed to increased fertilizer prices, resulting in higher input costs for many growers. However, fertilizer costs generally represent a smaller percentage of total operating costs for many of the crops grown on our farms compared to other crop types, and many growers on our farms had secured fertilizer supplies prior to recent price increases.
Previous report
Although international trade developments continue to influence sentiment in export-oriented crop markets, pricing for almonds and pistachios remains primarily driven by underlying supply and demand fundamentals. Final almond production for the 2025 crop year has come in below initial industry forecasts, contributing to improved pricing conditions, and almond prices have generally trended higher, resulting in price levels that are stable yet profitable for growers. In addition, production volumes on our farms exceeded our initial internal expectations.
Previous report
The 2025-2026 water year is approaching the end of its wet season, and current conditions reflect extremely low snowpack but generally average or better overall precipitation across much of the state. While the season began with above-average precipitation, drier and warmer conditions during the latter portion of the winter significantly reduced snowpack levels across the Sierra Nevada. However, reservoir storage levels remain well above historical norms, reflecting strong carryover storage following multiple years of average or above-average precipitation. As of early May 2026, less than 5% of the state was subject to a drought designation, supporting relatively stable near-term surface water supply conditions. Current expectations are that surface water allocations for the 2025-2026 water year will range from approximately 25% to 40%, subject to late-season hydrological conditions and regulatory requirements.
Previous report
Term Preferred Stock
Previous report
On January 30, 2026, we redeemed all of our outstanding shares of our 5.00% Series D Cumulative Term Preferred Stock, par value $0.001 per share (the “Series D Term Preferred Stock”) at a cash redemption price of $25.00 per share, plus all accrued and unpaid dividends to, but excluding, the redemption date. In total, we paid approximately $60.6 million for the redemption of the Series D Term Preferred Stock, which we delisted from Nasdaq on the date we redeemed all outstanding shares.
Previous report
See Note 10, “Equity,” within the accompanying notes to our condensed consolidated financial statements for further discussion on the 2025 Repurchase Program.
Previous report
During the three months ended March 31, 2026, we recognized an impairment charge of approximately $884,000 onone property (encompassingtwo farms) located in St. Lucie County, Florida, due to the estimated fair value being lower than the carrying value.
Previous report
Other Income (Expense)
Reworded paragraphs (62)
Previous wording
We are an externally-managed, agricultural real estate investment trust (“REIT”) that is primarily engaged in owning and leasing farmland, including through lease structures with a variable rent component based on the gross revenues generated from certain farms in lieu of fixed base rent. From time to time, and on a temporary basis, we may also directly operate certain of our farms via management agreements with third-party operators and/or through a taxable REIT subsidiary (“TRS”). We currently own 144 farms totaling 98,688 acres across 14 states in the U.S. and 55,649 acre-feet of water assets in California. In addition, two of our properties (consisting of four farms) are currently being directly operated.
Current wording
We are an externally-managed, agricultural real estate investment trust (“REIT”) that is primarily engaged in owning and leasing farmland, including through lease structures with a variable rent component based on the gross revenues generated from certain farms in lieu of fixed base rent. From time to time, and on a temporary basis, we may also directly operate certain of our farms via management agreements with third-party operators and/or through a taxable REIT subsidiary (“TRS”). We currently own 142 farms totaling 98,071 acres across 14 states in the U.S. and 55,649 acre-feet of water assets in California. In addition, two of our properties (consisting of four farms) are currently being directly operated.
Previous wording
Our farmland portfolio currently consists of 144 farms leased to 81 different, unrelated third-party tenants who grow over 60 different types of crops on our farms. Our investment focus is in farmland suitable for growing either fresh produce annual row crops (e.g., certain berries and vegetables) or certain permanent crops (e.g., almonds, blueberries, pistachios, and wine grapes), with an ancillary focus on farmland growing certain commodity crops (e.g., beans and corn).
Current wording
Our farmland portfolio currently consists of 142 farms leased to 79 different, unrelated third-party tenants who grow over 60 different types of crops on our farms. Our investment focus is in farmland suitable for growing either fresh produce annual row crops (e.g., certain berries and vegetables) or certain permanent crops (e.g., almonds, blueberries, pistachios, and wine grapes), with an ancillary focus on farmland growing certain commodity crops (e.g., beans and corn).
Previous wording
The following table summarizes the different geographic locations (by state) of our farms owned as of and during the three months ended March 31, 2026 and 2025 (dollars in thousands):
Current wording
The following table summarizes the different geographic locations (by state) of our farms owned as of and during the six months ended June 30, 2026 and 2025 (dollars in thousands):
Previous wording
(2)During the three months ended March 31, 2026, we began recognizing lease revenues from two tenants (who collectively lease eight farms—four in Arizona, three in Washington, and one in Oregon) on a cash basis. Negative revenue reflected above relates to the write-off of certain net deferred rent assets and uncollected receivables.
Current wording
(3)During the six months ended June 30, 2026, we began recognizing lease revenues from two tenants (who collectively lease eight farms—four in Arizona, three in Washington, and one in Oregon) on a cash basis. Negative revenue reflected above relates to the write-off of certain net deferred rent assets and uncollected receivables.
Previous wording
Currently, 87 of our farms are leased on a pure, triple-net basis, 42 farms are leased on a partial-net basis (with us, as landlord, responsible for all or a portion of the related property taxes), 3 farms are leased on a single-net basis (with us, as landlord, responsible for the related property taxes, as well as certain maintenance, repairs, or insurance costs), 4 farms are direct-operated by us through third-party management agreements, and 8 farms are vacant. Additionally, 25 of our farms are leased under agreements that include participation rents, though such leases often include a guarantee of a minimum amount of rental income.
Current wording
Currently, 81 of our farms are leased on a pure, triple-net basis, 44 farms are leased on a partial-net basis (with us, as landlord, responsible for all or a portion of the related property taxes), 3 farms are leased on a single-net basis (with us, as landlord, responsible for the related property taxes, as well as certain maintenance, repairs, or insurance costs), 4 farms are direct-operated by us through third-party management agreements, and 10 farms are vacant. Additionally, 26 of our farms are leased under agreements that include participation rents, though such leases often include a guarantee of a minimum amount of rental income.
Previous wording
(3)Includes one lease that was renewed subsequent to March 31, 2026; see below, under “Recent Developments—Portfolio Activity—Existing Properties—Leasing Activity,” for additional information on these and certain other lease renewals.
Current wording
(2)Includes one lease that was renewed subsequent to June 30, 2026; see below, under “Recent Developments—Portfolio Activity—Existing Properties—Leasing Activity,” for additional information on this and certain other lease renewals.
Previous wording
(2)Primarily consists of ancillary leases (e.g., renewable energy leases; oil, gas, and mineral leases; telecommunications leases; etc.) with varying expirations on certain of our farms.
Current wording
(3)Primarily consists of ancillary leases (e.g., renewable energy leases; oil, gas, and mineral leases; telecommunications leases; etc.) with varying expirations on certain of our farms.
Previous wording
We are currently exploring a variety of options with certain of our 2026 lease expirations, including negotiating lease terms with existing and prospective new tenants and discussing sale options with prospective buyers. In addition, while we seek to lease all properties under traditional leases that involve a certain level of fixed base rent, with respect to expirations on certain western permanent crop farms, we may also decide to proceed with a modified lease structure that involves a reduced base rent amount (or none) and/or, in certain cases, a cash lease incentive, in exchange for an increased level of participation rents, or we may decide to proceed to operate certain of these properties ourselves via third-party management agreements. Regarding all vacancies and upcoming lease expirations, there can be no assurance that we will be able to renew the existing leases or execute new leases at rental rates favorable to us, if at all, or be able to find replacement tenants, if necessary.
Current wording
We are currently exploring a variety of options with certain of our 2026 lease expirations, including negotiating lease terms with existing and prospective tenants and evaluating potential disposition opportunities. In addition, while we seek to lease all properties under traditional leases that involve a certain level of fixed base rent, with respect to expirations on certain western permanent crop farms, we may also decide to proceed with a modified lease structure that involves a reduced base rent amount (or none) and/or, in certain cases, a cash lease incentive, in exchange for an increased level of participation rents, or we may decide to proceed to operate certain of these properties ourselves via third-party management agreements. Regarding all vacancies and upcoming lease expirations, there can be no assurance that we will be able to renew the existing leases or execute new leases at rental rates favorable to us, if at all, or be able to find replacement tenants, if necessary.
Previous wording
According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (“CPI”) increased 3.3% over the 12-month period ended March 31, 2026, reflecting continued moderation from peak inflation levels observed in mid-2022. Food prices also increased at a slower rate, with the overall food category up by 2.7% over the same period. However, over the past four years, food prices have risen by 17.3%, outpacing the overall CPI increase of 14.9% and reflecting sustained longer-term inflationary pressures across many agricultural markets. In addition, the U.S. Department of Agriculture’s August 2025 Land Values Summary reported that nationwide farm real estate values increased 4.3% year-over-year, while cropland values rose 4.7%. This data indicates that farmland values have continued to appreciate, although at a more moderate pace than in prior years. While elevated input costs continue to impact farm operators, we believe these pressures are being partially offset in certain markets to the extent food prices keep pace with or exceed broader inflation trends.
Current wording
According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (“CPI”) increased 3.5% over the 12-month period ended June 30, 2026, reflecting continued moderation from peak inflation levels observed in mid-2022. Food prices also increased at a slower rate, with the overall food category up by 3.0% over the same period. However, over the past four years, food prices have risen by 14.7%, outpacing the overall CPI increase of 12.7% and reflecting sustained longer-term inflationary pressures across many agricultural markets. In addition, the U.S. Department of Agriculture’s August 2025 Land Values Summary reported that nationwide farm real estate values increased 4.3% year-over-year, while cropland values rose 4.7%. This data indicates that farmland values have continued to appreciate, although at a more moderate pace than in prior years. While elevated input costs continue to impact farm operators, we believe these pressures are being partially offset in certain markets to the extent food prices continue to keep pace with or exceed broader inflation trends.
Previous wording
The Federal Reserve (the “Fed”) resumed monetary easing in late 2025, lowering the target range for the federal funds rate by a total of 75 basis points during the fourth quarter of 2025, bringing the range to 3.50% to 3.75%. The Fed maintained this target range at each of its meetings thus far in 2026, reflecting a continued data-dependent posture as inflation remained above the Fed’s longer-term 2% objective, economic uncertainty remained elevated, and geopolitical developments continued to weigh on the economic outlook. Benchmark yields have increased from early-2026 levels, with the 10-year U.S. Treasury yield recently fluctuating around 4.3% to 4.5%, compared with approximately 4.0% earlier in the year. Although borrowing costs have eased from their 2025 highs, credit availability remains selective amid tighter lending standards and softer credit demand in certain markets. As a result, while financing conditions have improved relative to a year ago, access to debt on favorable terms remains uneven and continues to limit our ability to pursue new farmland acquisitions.
Current wording
The Federal Reserve (the “Fed”) resumed monetary easing in late 2025, lowering the target range for the federal funds rate by a total of 75 basis points during the fourth quarter of 2025, bringing the range to 3.50% to 3.75%. The Fed has maintained this target range at each of its meetings in 2026, including its most recent meeting in July, reflecting a continued data-dependent approach as inflation has remained above the Fed’s longer-term 2% objective, economic uncertainty has persisted, and geopolitical developments have continued to weigh on the economic outlook. Benchmark yields have increased during 2026, with the 10-year U.S. Treasury yield recently above 4.5%, compared with approximately 4.0% earlier in the year. Although borrowing costs remain below their 2025 highs, credit availability continues to be selective amid tighter lending standards and elevated market uncertainty. As a result, while financing conditions have improved relative to a year ago, access to debt capital on favorable terms remains uneven and continues to limit our ability to pursue new farmland acquisitions.
Previous wording
Currently, over 99.9% of our borrowings bear interest at fixed rates, with a weighted-average effective interest rate of 3.41% and an average remaining term of 2.5 years. As a result, changes in market interest rates have had a minimal impact on our interest expense in recent periods, and we believe our exposure to near-term interest rate volatility is limited.
Current wording
Currently, approximately 95.7% of our borrowings bear interest at fixed rates, with a weighted-average effective interest rate of 3.45% and an average remaining term of 2.3 years. As a result, changes in market interest rates have had a minimal impact on our interest expense in recent periods, and we believe our exposure to near-term interest rate volatility is limited.
Previous wording
Certain crops grown on our farms, particularly almonds and pistachios, remain exposed to international trade conditions, as a significant portion of U.S.-produced almonds and pistachios is exported annually. However, recent market stabilization and improving demand trends have provided more favorable near-term market conditions. In contrast, crops with stronger domestic demand characteristics, including berries and vegetables, are generally less directly impacted by export market volatility, although they may still be affected by trade developments involving key North American trading partners, including Canada and Mexico.
Current wording
Certain crops grown on our farms, particularly almonds and pistachios, remain exposed to international trade conditions, as a significant portion of U.S.-produced almonds and pistachios is exported annually. However, recent stabilization in export demand and improving pricing trends have provided more favorable near-term market conditions for tree nut growers. In contrast, crops with stronger domestic demand characteristics, including berries and vegetables, are generally less directly impacted by export market volatility, although they may still be affected by trade developments involving key North American trading partners, including Canada and Mexico.
Previous wording
Demand for pistachios also remains strong, particularly in international markets and for pistachio-based consumer products. Although the 2025 U.S. pistachio crop was initially expected to be a record crop, current estimates indicate production levels are likely to be more consistent with 2023 production levels. The smaller-than-expected overall crop has contributed to improved pricing conditions, with pistachio prices strengthening relative to the prior year. Production volumes on our farms also exceeded our initial internal projections.
Current wording
Demand for pistachios also remains strong, particularly in international markets and for pistachio-based consumer products. Although the 2025 U.S. pistachio crop was initially expected to be a record crop, current estimates indicate production levels are likely to be more consistent with 2023 production levels. The smaller-than-expected crop has contributed to improved pricing, with pistachio prices strengthening relative to the prior year. Yield projections for the 2026 crop have continued to decline, due in part to an early March heat event that affected pollination across California. These factors, combined with continued strong demand, have supported higher projected prices, including a 67% increase in the initial base price for the 2026 crop compared with the 2025 crop.
Previous wording
We continue to monitor developments relating to the conflict in the Middle East, tariffs, and broader trade policy closely, although the ultimate impact on crop pricing, export demand, and grower economics remains uncertain. Prolonged disruptions to export markets could adversely affect lease structures and participation rent levels on certain farms. In addition, significant increases in tariffs or unfavorable trade conditions affecting almonds or pistachios could require us to allocate additional capital to support crop production under certain lease agreements in exchange for higher participation rents.
Current wording
We continue to monitor developments relating to the conflict in the Middle East, tariffs, the Farm Bill, and broader trade policy, although the ultimate impact on crop pricing, export demand, input costs, and grower economics remains uncertain. Prolonged disruptions to export markets or significant increases in production costs could adversely affect lease structures and participation rent levels on certain farms. In addition, unfavorable trade conditions affecting almonds or pistachios could require us to allocate additional capital to support crop production under certain lease agreements in exchange for higher participation rents.
Previous wording
Another factor impacting export demand is the strength of the U.S. dollar. A weaker dollar generally improves the competitiveness of U.S. agricultural exports and may partially offset certain adverse effects of tariffs and trade-related constraints.
Current wording
Another factor affecting export demand is the strength of the U.S. dollar. A weaker dollar generally improves the competitiveness of U.S. agricultural exports and may partially offset certain adverse effects of tariffs and trade-related constraints. Although the U.S. dollar strengthened modestly during the second quarter of 2026, export demand remained resilient, reflecting the continued strength of underlying supply and demand fundamentals.
Previous wording
Sustained wet conditions in recent years have benefited our permanent crop assets by supporting groundwater recharge and improving root zone moisture content. To date, we have not observed any significant water-related stress in our permanent plantings, which appear healthy and in good condition entering the 2026 growing season. Meanwhile, the ongoing phased implementation of California’s Sustainable Groundwater Management Act (“SGMA”) continues to impose groundwater pumping restrictions across the state. In response, we are evaluating and participating in supplemental water initiatives intended to mitigate the impact of SGMA-related curtailments, including floodwater capture and storage projects, voluntary fallowing programs, and targeted investments in water infrastructure designed to support long-term access to reliable water supplies. Periods of surplus surface water may also increase the availability of lower-cost water supplies from certain water purveyors, and we continue to monitor such opportunities as part of our long-term water strategy. Based on current conditions, we believe our farms are generally well-positioned for the 2026 growing season with respect to both groundwater and surface water availability.
Current wording
Sustained wet conditions in recent years have benefited our permanent crop assets by supporting groundwater recharge and improving root zone moisture content. To date, we have not observed any significant water-related stress in our permanent plantings, which continue to appear healthy and in good condition as we approach the end of the 2026 growing season. Meanwhile, the ongoing phased implementation of California’s Sustainable Groundwater Management Act (“SGMA”) continues to impose groundwater pumping restrictions across the state. In response, we are evaluating and participating in supplemental water initiatives intended to mitigate the impact of SGMA-related curtailments, including floodwater capture and storage projects, voluntary fallowing programs, and targeted investments in water infrastructure designed to support long-term access to reliable water supplies. Periods of surplus surface water may increase the availability of lower-cost water supplies from certain water purveyors, and we continue to monitor such opportunities as part of our long-term water strategy. Based on current conditions, we believe our farms are generally well positioned for the remainder of the 2026 growing season and into the 2027 growing season.
Previous wording
Pursuant to management agreements with third-party operators, we currently manage (i) a 2,409-acre property (consisting of two farms) in Kern County, California, including 2,293 acres of bearing almond and pistachio orchards, and (ii) a 165-acre farm in Umatilla County, Oregon, including 135 acres of wine grape vineyards.
Current wording
Pursuant to management agreements with third-party operators, we currently manage (i) a 2,409-acre property (consisting of two farms) in Kern County, California, including 2,293 acres of bearing almond and pistachio orchards, and (ii) a 165-acre farm in Umatilla County, Oregon, including 135 acres of wine grape vineyards. In addition, during the six months ended June 30, 2026, we completed the harvest of an orange crop remaining on a farm in St. Lucie County, Florida, following the early termination of the prior tenant’s lease.
Previous wording
(2)The majority of this revenue relates to a grower partner bonus associated with the 2025 pistachio crop, which was recognized when the amount became determinable and collectible. The related growing costs for this crop were previously expensed during the three months ended December 31, 2025.
Current wording
(2)This revenue relates to the 2025 crop year; the majority of the related growing costs were previously recognized in the three months ended December 31, 2025.
Previous wording
During the three months ended March 31, 2026, we recognized an impairment charge of approximately $884,000 on one property (consisting of two farms) in St. Lucie County, Florida, due to the estimated fair value being lower than the carrying value.
Current wording
During the three months ended June 30, 2026, we recognized an impairment charge of approximately $4.2 million on one property (consisting of four farms) in Yuma County, Arizona, to reduce its carrying value to the agreed-upon purchase price under the related purchase and sale agreement.
Previous wording
We currently have 8 farms that are wholly or partially vacant, 4 farms that are being direct-operated through third-party management agreements, and 11 farms leased to four tenants for which lease revenue is being recognized on a cash basis due to concerns regarding the collectibility of the remaining contractual lease payments.
Current wording
We currently have 10 farms that are wholly or partially vacant, 4 farms that are being direct-operated by us through third-party management agreements, and 11 farms leased to four tenants for which lease revenue is being recognized on a cash basis due to concerns regarding the collectibility of the remaining contractual lease payments.
Previous wording
For the three months ended March 31, 2026, we recognized approximately ($2.1) million of lease revenue related to these farms (primarily due to the reversal of previously recognized straight-line rent associated with certain tenants that were placed on non-accrual status during the quarter) and approximately $1.9 million of net profits from crop sales (see above, under “—Crop Sales and Cost of Sales”), compared to approximately $5.0 million of lease revenue for the prior-year period, which included an early lease termination fee of approximately $2.4 million.
Current wording
For the six months ended June 30, 2026, we recognized approximately $535,000 of lease revenue related to these farms and approximately $2.2 million of net profits from crop sales (see above, under “—Crop Sales and Cost of Sales”), compared to approximately $6.7 million of lease revenue for the prior-year period, which included an early lease termination fee of approximately $2.4 million.
Previous wording
We are evaluating both leasing and sale alternatives for each of these farms and are engaged in discussions with prospective tenants and buyers; however, there can be no assurance that we will be able to secure agreements on favorable terms, or at all. With respect to the farms on non-accrual status, we continue to work with the respective tenants to resolve the outstanding rent amounts and, where possible, will seek to reach agreements on the remaining payments. Such agreements may include establishing payment plans, deferring portions of rent due, or agreeing to terminate the leases.
Current wording
We are evaluating both leasing and sale alternatives for each of these farms and are engaged in discussions with prospective tenants and buyers for certain of these properties. However, there can be no assurance that we will be able to secure agreements on favorable terms, or at all. With respect to the farms on non-accrual status, we continue to work with the respective tenants to resolve the outstanding rent amounts and, where possible, will seek to reach agreements on the remaining payments. Such agreements may include establishing payment plans, deferring portions of rent due, or agreeing to terminate the leases.
Previous wording
In connection with entering into the Farm Credit Facility, we incurred total closing costs of approximately $226,000. We do not currently have any borrowings outstanding under the Farm Credit Facility.
Current wording
In connection with entering into the Farm Credit Facility, we incurred total closing costs of approximately $226,000. As of June 30, 2026, we hadno amounts outstanding under the Farm Credit Facility, and, based on the level of collateral pledged, the full $37.0 million remains available to us.
Previous wording
On July 11, 2025, our Board of Directors approved a share repurchase program authorizing us to repurchase up to $20.0 million of our 6.00% Series B Cumulative Redeemable Preferred Stock, par value $0.001 per share (the “Series B Preferred Stock”) and up to $35.0 million of our 6.00% Series C Cumulative Redeemable Preferred Stock, par value $0.001 per share (the “Series C Preferred Stock”) (collectively, the “2025 Repurchase Program”).
Current wording
On July 11, 2025, our Board of Directors approved a share repurchase program authorizing us to repurchase up to $20.0 million of our 6.00% Series B Cumulative Redeemable Preferred Stock, par value $0.001 per share (the “Series B Preferred Stock”) and up to $35.0 million of our 6.00% Series C Cumulative Redeemable Preferred Stock, par value $0.001 per share (the “Series C Preferred Stock”) (collectively, the “2025 Repurchase Program”). The 2025 Repurchase Program expired on July 10, 2026.
Previous wording
The following table summarizes repurchase activity under the 2025 Repurchase Program from January 1, 2026, through the date of this filing (dollars in thousands, except per-share amounts):
Current wording
The following table summarizes repurchase activity under the Repurchase Program from April 1, 2026, through the date of this filing (dollars in thousands, except per-share amounts):
Previous wording
The preparation of our financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make judgments that are subjective in nature to make certain estimates and assumptions. Application of these accounting policies involves the exercise of judgment regarding the use of assumptions as to future uncertainties, and, as a result, actual results could materially differ from these estimates. A summary of our significant accounting policies is provided in Note 2, “Summary of Significant Accounting Policies,” to our consolidated financial statements in our Annual Report on Form 10-K. There were no material changes to our critical accounting policies during the three months ended March 31, 2026.
Current wording
The preparation of our financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make judgments that are subjective in nature to make certain estimates and assumptions. Application of these accounting policies involves the exercise of judgment regarding the use of assumptions as to future uncertainties, and, as a result, actual results could materially differ from these estimates. A summary of our significant accounting policies is provided in Note 2, “Summary of Significant Accounting Policies,” to our consolidated financial statements in our Annual Report on Form 10-K. There were no material changes to our critical accounting policies during the six months ended June 30, 2026.
Previous wording
With regard to the comparison between the three months ended March 31, 2026 and 2025:
Current wording
With regard to the comparisons between the three and six months ended June 30, 2026 versus 2025:
Previous wording
•We owned 144 farms as of March 31, 2026, that are considered our same-property portfolio. Same-property occupancy (based on farmable acres and including farms that were direct-operated or on non-accrual status) decreased approximately 1.0% to 94.9% as of March 31, 2026, compared to 95.9% as of March 31, 2025.
Current wording
•We owned 144 farms as of June 30, 2026, that are considered our same-property portfolio. Same-property occupancy (based on farmable acres and including farms that were direct-operated or on non-accrual status) decreased approximately 0.5% to 95.4% as of June 30, 2026, compared to 95.9% as of June 30, 2025.
Previous wording
◦Included within our same-property portfolio are farms that were wholly or partially vacant, direct-operated, or on non-accrual status during all or a portion of the periods presented. For all or a portion of the three months ended March 31, 2026, we had 26 farms that were vacant, direct-operated, or on non-accrual status, as compared to 15 farms in the prior-year period.
Current wording
◦Included within our same-property portfolio are farms that were wholly or partially vacant, direct-operated, or on non-accrual status during all or a portion of the periods presented.
Previous wording
A comparison of results of components comprising our operating income for the three months ended March 31, 2026 and 2025 is below (dollars in thousands):
Current wording
A comparison of results of components comprising our operating income for the three and six months ended June 30, 2026 and 2025 is below (dollars in thousands):
Previous wording
The following table provides a summary of our lease revenue during the three months ended March 31, 2026 and 2025 (dollars in thousands):
Current wording
The following table provides a summary of our lease revenue during the three and six months ended June 30, 2026 and 2025 (dollars in thousands):
Previous wording
Lease revenues from fixed lease payments decreased primarily due to certain farms that were vacant, direct-operated, or for which lease revenue was recognized on a cash basis (rather than a straight-line basis) due to full collectability of future rental payments not being considered probable as a result of tenant credit issues. One property (consisting of two farms) that was direct-operated during the current-year period (see “—Crop Sales and Cost of Sales” below for further discussion) was leased for the majority of the prior-year period. In addition, during the three months ended March 31, 2026, we began recognizing lease revenues from two tenants (who collectively lease eight farms) on a cash basis.
Current wording
Lease revenues from fixed lease payments decreased for the six months ended June 30, 2026, primarily due to certain farms that were vacant, direct-operated, or for which lease revenue was recognized on a cash basis (rather than a straight-line basis) due to full collectability of future rental payments not being considered probable as a result of tenant credit issues. One property (consisting of two farms) that was direct-operated during the current-year period (see “—Crop Sales and Cost of Sales” below for further discussion) was leased for a portion of the prior-year period. In addition, during the six months ended June 30, 2026, we began recognizing lease revenues from two tenants (who collectively lease eight farms) on a cash basis.
Previous wording
The increase in lease revenues from participation rents was primarily attributable to a grower partner bonus associated with the 2025 pistachio crop, which was recognized when the amount became determinable and collectible.
Current wording
The increase in lease revenues from participation rents was primarily attributable to a grower partner bonus associated with the 2025 pistachio crop, which was recognized when the amount became determinable and collectible. Participation rents during the six months ended June 30, 2025, were primarily attributable to cash collections from wine grape sales.
Previous wording
During the three months ended March 31, 2025, we received a lease termination payment from an outgoing tenant who leased three of our farms. After applying a portion of the amount towards certain outstanding receivables owed by the same tenant, we recognized additional lease revenue of approximately $2.4 million upon receipt.
Current wording
During the six months ended June 30, 2025, we received a lease termination payment from an outgoing tenant who leased three of our farms. After applying a portion of the amount towards certain outstanding receivables owed by the same tenant, we recognized additional lease revenue of approximately $2.4 million upon receipt.
Previous wording
Other operating revenue consists of non-lease revenue generated as a result of activities performed on certain of our properties. In connection with the transfer and storing of surplus water on behalf of a third party using a groundwater recharge facility constructed on one of our farms, we recognized non-cash revenue of approximately $8,000 during the three months ended March 31, 2026. See Note 5, “Investments in Water Assets,” within the accompanying notes to our condensed consolidated financial statements for further discussion.
Current wording
Other operating revenue consists of non-lease revenue generated as a result of activities performed on certain of our properties. In connection with the transfer and storing of surplus water on behalf of a third party using a groundwater recharge facility constructed on one of our farms, we recognized non-cash revenue of approximately $8,000 during the six months ended June
Previous wording
Depreciation and amortization expense increased primarily due to the acceleration of depreciation associated with certain permanent plantings (as a result of shortened useful lives) during the three months ended March 31, 2026, as well as additional depreciation related to capital improvements made on certain of our farms. The increase was partially offset by a lower depreciation resulting from the disposition of certain assets, including the sale of 13 farms subsequent to December 31, 2024.
Current wording
Depreciation and amortization expense increased for the six months ended June 30, 2026, primarily due to the acceleration of depreciation associated with certain permanent plantings (as a result of shortened useful lives), as well as additional depreciation related to capital improvements made on certain of our farms. The increase was partially offset by lower depreciation resulting from the disposition of certain assets, including the sale of 13 farms subsequent to December 31, 2024, and certain assets reaching the end of their useful lives during the three months ended June 30, 2026.
Previous wording
Property operating expenses consist primarily of real estate taxes, repair and maintenance expenses, insurance premiums, and other miscellaneous operating expenses paid for certain of our properties. The following table provides a summary of the property operating expenses recorded during the three months ended March 31, 2026 and 2025 (dollars in thousands):
Current wording
Property operating expenses consist primarily of real estate taxes, repair and maintenance expenses, insurance premiums, and other miscellaneous operating expenses paid for certain of our properties. The following table provides a summary of the property operating expenses recorded during the three and six months ended June 30, 2026 and 2025 (dollars in thousands):
Previous wording
Property operating expenses increased primarily due to costs incurred to provide supplemental water in accordance with a lease obligation on one of our farms and higher legal expenses related to protecting water rights on certain farms in California. The increase was also attributable to additional costs associated with certain farms that were vacant, direct-operated, or on non-accrual status, including property taxes and other operating expenses for which prior tenants had previously been responsible.
Current wording
Property operating expenses increased primarily due to costs incurred to provide supplemental water in accordance with a lease obligation on one of our farms and higher legal expenses related to protecting water rights on certain farms in California. The increase was also attributable to additional costs associated with certain farms that were vacant, direct-operated, or on non-accrual status, including additional property taxes and other operating expenses that were previously the responsibility of the tenants, as well as legal fees incurred in connection with rent collection and lease termination efforts.
Previous wording
Property operating expenses on properties acquired or disposed of decreased due to the sale of 13 farms subsequent to December 31, 2024.
Current wording
Property operating expenses on properties acquired or disposed of decreased for the six months ended June 30, 2026, due to the sale of 13 farms subsequent to December 31, 2024.
Previous wording
The following table provides the calculations of the base management, incentive, and capital gains fees (as applicable) due to our Adviser pursuant to the Advisory Agreement for the three months ended March 31, 2026 and 2025 (dollars in thousands; for further discussion on certain defined terms used below, refer to Note 8, “Related-Party Transactions,” within the accompanying notes to our condensed consolidated financial statements):
Current wording
The following table provides the calculations of the base management, incentive, and capital gains fees (as applicable) due to our Adviser pursuant to the Advisory Agreement for the three and six months ended June 30, 2026 and 2025 (dollars in thousands; for further discussion on certain defined terms used below, refer to Note 8, “Related-Party Transactions,” within the accompanying notes to our condensed consolidated financial statements):
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Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
(2)Includes two farms that were sold subsequent to June 30, 2026. See below under “Recent Developments—Portfolio Activity—Existing Properties—Property Sale” for additional information.
Current report — wording carried from elsewhere
On July 14, 2026, our Board of Directors approved a share repurchase program authorizing us to repurchase up to $20.0 million of our Series B Preferred Stock and up to $35.0 million of our Series C Preferred Stock (collectively, the “2026 Repurchase Program,” and together with the 2025 Repurchase Program, the “Repurchase Program”). The 2026 Repurchase Program expires on July 14, 2027.
Current report — wording carried from elsewhere
▪For the three months ended June 30, 2026, we had 24 farms that were vacant, direct-operated, or on non-accrual status, as compared to 16 farms in the prior-year period.
Current report — wording carried from elsewhere
▪For the six months ended June 30, 2026, we had 26 farms that were vacant, direct-operated, or on non-accrual status, as compared to 17 farms in the prior-year period.
Current report — wording carried from elsewhere
30, 2026. See Note 5, “Investments in Water Assets,” within the accompanying notes to our condensed consolidated financial statements for further discussion.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
In addition, during the three months ended March 31, 2026, we completed the harvest of an orange crop remaining on a farm in St. Lucie County, Florida, following the early termination of the prior tenant’s lease. Results from this activity are included in the table above. We did not recognize any crop sales revenue or related costs during the three months ended March 31, 2025.