Core Viewpoint - Landsvirkjun successfully issued green bonds totaling USD 150 million, exceeding the original target of USD 125 million due to strong investor interest [1] Group 1: Bond Issuance Details - The bonds have maturities of 6 and 8 years and were issued in three tranches, with two tranches having fixed interest rates of 5.17% and 5.37%, reflecting spreads of 115–125 basis points over U.S. Treasury bonds [2] - The third tranche features a floating interest rate indexed to SOFR with a spread of 144 basis points, and the issuance is covenant-free, indicating investor confidence in the company's financial position [2] Group 2: Role of Placement Agents - Barclays Capital Inc. and ING Financial Markets LLC served as joint placement agents for the bond issuance [3] Group 3: Use of Proceeds - Proceeds from the bond issuance will finance Landsvirkjun's power projects, including the Vaðalda Wind Farm, which will be Iceland's first wind power plant, and the Hvammur Hydropower Station, the eighth hydroelectric power plant in the Þjórsá and Tungnaá region [4] Group 4: Green Financing Framework - The bonds are issued under Landsvirkjun's Green Financing Framework, which ensures that proceeds are exclusively used for projects with positive environmental and climate impacts [5]

Core Viewpoint - Gladstone Land Corporation held its Q1 2025 earnings conference call, indicating ongoing engagement with investors and stakeholders [1]. Company Overview - David Gladstone serves as the Chief Executive Officer and President of Gladstone Land Corporation, leading the quarterly conference call [2]. - Michael LiCalsi, the General Counsel, provided introductory remarks and highlighted the presence of forward-looking statements in the report, which may involve risks and uncertainties [3].

Financial Data and Key Metrics Changes - For the first quarter, the company reported net income of approximately $15.1 million and net income to common shareholders of $9.1 million, or $0.25 per share [26] - Adjusted FFO was about $2 million or $0.06 per share, compared to $5.1 million or $0.14 per share in the same quarter last year, indicating a year-over-year decrease [26][27] - Dividends declared per common share remained at $0.14 for both quarters [26] Business Line Data and Key Metrics Changes - Fixed base cash rents decreased by about $5.7 million compared to the prior year quarter due to vacancies and structural changes in leases [27] - The company expects a total year-over-year decline of about $17 million in fixed base rents for fiscal year 2025 compared to 2024, primarily due to lease adjustments [29] - Participation rents recorded during the current quarter amounted to approximately $465,000, primarily from cash collected on wine grape sales [28] Market Data and Key Metrics Changes - The company has about 103,000 acres of farmland across 15 states, with 29 different growing regions, and holds approximately 55,000 acre-feet of water assets [7][8] - The nut sector is vulnerable to tariffs, with 78% of U.S. grown almonds and pistachios exported annually, and the company is monitoring the impact of tariffs on pricing [21][22] - The weakening of the U.S. dollar may help mitigate some negative impacts from tariffs, as it could stabilize prices for U.S. nuts [24] Company Strategy and Development Direction - The company is cautious with new investments due to high interest rates and costs of capital, leading to a slow acquisition activity [9][35] - The current strategy includes adjusting lease structures to minimize fixed costs for tenants while allowing the company to participate in crop revenues [11][12] - The company plans to maintain liquidity and evaluate its dividend based on the 2025 harvest outcomes [33][57] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about high interest rates affecting farming operations and the ability to borrow for planting and harvesting crops [35][80] - The company anticipates inflation in the food sector to continue increasing, which may positively impact the value of underlying farmland over time [38] - Management remains optimistic about the potential for strong crop production in the upcoming year, particularly for almonds and pistachios [14][37] Other Important Information - The company has access to over $180 million of capital, including about $40 million in cash, and nearly $150 million of unpledged properties [31] - The company is currently evaluating options for vacant farms and considering potential new crops to plant [51] - The company has no immediate plans for share repurchases, prioritizing liquidity to manage potential future obligations [55][57] Q&A Session Summary Question: Clarification on $17 million lower revenues in '25 versus '24 - Management confirmed that an additional farm was added to the participation rent structure, contributing to the increased revenue loss estimate for '25 [40] Question: Total participation rents expected in 2025 - Management indicated that the expected participation rents would include the $17 million plus additional amounts based on last year's run rate, but some participation rent would be lower due to lease adjustments [41][43] Question: Details on the $2.4 million termination fee - The termination fee was related to three almond farms that are now vacant, and management is exploring options to generate income from these properties [44] Question: Future asset sales and vacant properties - Management stated that they have listed some farms for sale but do not have contracts in place yet, and they are evaluating options for the vacant properties [49][50] Question: Thoughts on repurchasing shares given cash on hand - Management emphasized the importance of maintaining liquidity and being prepared for future obligations rather than repurchasing shares at this time [55][57] Question: Financing for upcoming preferred stock maturity - Management is considering options for financing the preferred stock due in January 2026, including potential asset sales and refinancing discussions with banks [67][71]

Financial Data and Key Metrics Changes - For the first quarter, the company reported net income of approximately $15.1 million and net income to common shareholders of $9.1 million, or $0.25 per share [25] - Adjusted FFO was about $2 million or $0.06 per share, down from $5.1 million or $0.14 per share in the same quarter last year [25] - Fixed base cash rents decreased by about $5.7 million compared to the prior year quarter due to vacancies and structural changes in leases [26] Business Line Data and Key Metrics Changes - The company executed seven new leases or amended existing leases, primarily on permanent crops [8] - The year-over-year decline in fixed base rents is expected to total about $17 million for fiscal year 2025 compared to 2024 [27] - The company anticipates a total year-over-year decline of about $17 million in fixed base rents for fiscal year 2025 compared to 2024, with a reduction of approximately $4 million to $5 million per quarter [27] Market Data and Key Metrics Changes - The nut sector is vulnerable to tariffs, with 78% of U.S. grown almonds and pistachios exported annually, and the company is monitoring the impact of tariffs on pricing [20][21] - The company noted that almond prices have risen significantly year over year, while pistachios remained stable or slightly increased [21] - The weakening of the U.S. dollar may help mitigate some negative impacts from tariffs, as it makes U.S. exports cheaper for foreign buyers [23] Company Strategy and Development Direction - The company remains cautious with new investments due to high interest rates and costs of capital, leading to a slow acquisition activity [8][34] - The company plans to continue with the current lease structure for 2025 and may revert to traditional lease structures next year or consider selling some properties [14] - The company believes investing in farmland growing healthy crops aligns with market trends and expects inflation in the food sector to continue to rise [35][37] Management's Comments on Operating Environment and Future Outlook - Management expressed hope for a strong production year, particularly for almonds and pistachios, but acknowledged uncertainty until the fourth quarter [13][14] - The company is focused on maintaining liquidity and ensuring it can meet financial obligations without compromising cash reserves [56][58] - Management indicated that the current farming environment is challenging due to high borrowing costs, which could impact future operations [34][81] Other Important Information - The company has access to over $180 million of capital, including about $40 million in cash on hand [30] - The company declared a monthly dividend of $0.0467 per share for the second quarter of 2025, equating to an annualized yield of 5.8% [32] - The company is evaluating options for vacant farms, including potential new crops and leasing water rights [50] Q&A Session Summary Question: Clarification on $17 million lower revenues in '25 versus '24 - Management confirmed that an additional farm was added to the participation rent structure, contributing to the increased revenue loss estimate for 2025 [39] Question: Total participation rents expected in 2025 - Management expects to recover the $17 million loss and anticipates that insurance should cover that amount plus a small profit [40] Question: Details on the $2.4 million termination fee - The fee was related to three almond farms that are now vacant, and management is exploring options to generate income from those properties [42] Question: Additional sales in the second quarter and beyond - Management indicated that while some farms are listed for sale, there are currently no contracts to execute [48] Question: Status of vacant assets - Two of the vacant farms are open ground with low maintenance costs, while the three almond farms are at the end of their productive life [49] Question: Thoughts on share repurchase given cash balance - Management is prioritizing liquidity and is cautious about using cash for share repurchases, focusing instead on maintaining operational flexibility [56] Question: Financing for upcoming preferred stock maturity - Management is considering options including asset sales and refinancing, but is cautious due to high interest rates [71]

Core Viewpoint - Gladstone Land (LAND) reported quarterly funds from operations (FFO) of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, but down from $0.14 per share a year ago [1][2] Financial Performance - The FFO surprise for the quarter was 86.67%, while the previous quarter saw an FFO of $0.09 against an expectation of $0.11, resulting in a surprise of -18.18% [2] - Revenues for the quarter ended March 2025 were $16.8 million, surpassing the Zacks Consensus Estimate by 3.79%, but down from $20.25 million year-over-year [3] Market Performance - Gladstone shares have declined approximately 11.3% since the beginning of the year, compared to a decline of 3.8% for the S&P 500 [4] - The current Zacks Rank for Gladstone is 4 (Sell), indicating expected underperformance in the near future [7] Future Outlook - The consensus FFO estimate for the upcoming quarter is $0.07 on revenues of $17.56 million, and for the current fiscal year, it is $0.48 on revenues of $81.63 million [8] - The estimate revisions trend for Gladstone is currently unfavorable, which could impact future stock performance [6][7] Industry Context - The REIT and Equity Trust - Other industry is ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [9]

Financial Performance - Net income for Q1 2025 was approximately $15.1 million, an increase of 11.4% from $13.6 million in Q1 2024[5] - Net income attributable to common stockholders was approximately $9.1 million, or $0.25 per share, compared to $7.4 million, or $0.21 per share, in the prior-year quarter, reflecting a 22.2% increase[5] - AFFO for the quarter decreased to approximately $2.0 million, or $0.06 per share, down 60.3% from $5.1 million, or $0.14 per share, in the prior-year quarter[5] - Total operating revenues decreased by 17.0% to $16.8 million from $20.3 million in Q1 2024[12] - Cash flows from operations increased by approximately $1.0 million, or 30.6%, from the prior-year quarter[12] Revenue and Income Sources - Total cash lease revenues decreased primarily due to a $5.7 million reduction in fixed base cash rents[6] - A renewable energy lease was entered into, expected to provide additional income of approximately $166,000 per year[11] - The company sold seven farms for an aggregate sales price of $64.5 million, resulting in a net gain of approximately $15.7 million[6] Operational Metrics - The occupancy rate decreased to 95.9% from 98.9% in the prior year, a decline of 3.0%[12] - Gladstone Land Corporation owns 150 farms across approximately 103,000 acres in 15 states, with over 55,000 acre-feet of water assets in California[16] - Over 30% of the company's fresh produce acreage is organic or in transition to organic, while nearly 20% of its permanent crop acreage falls into this category[16] - Gladstone Land's farms primarily grow annual row crops and permanent crops, contributing to a diverse agricultural portfolio[16] Investment and Financing - The company has access to over $180 million of immediately available capital, including $38 million in cash[10] - The company emphasizes the importance of maintaining financing for investments and managing risks related to economic downturns and tenant performance[24] Sustainability and Practices - The company focuses on acquiring farmland and related properties, including cooling facilities and processing buildings, to enhance its operational capabilities[16] - The company is committed to sustainable practices, with a significant portion of its acreage dedicated to organic farming[16] Financial Metrics and Future Outlook - The company utilizes non-GAAP financial measures such as FFO, CFFO, and AFFO to provide a clearer picture of its operating performance[18][21][22] - Forward-looking statements indicate expectations for growth in portfolio and FFO, alongside anticipated increases in farmland values and operating revenues[24] - The company’s financial performance is closely monitored through metrics like NAV per share and capitalization rates, which are influenced by market conditions[24] Distributions - The company has paid 147 consecutive monthly cash distributions since its IPO in January 2013, with a current monthly distribution of $0.0467 per share, equating to $0.5604 annually[16]

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and related disclosures for the reporting period [ITEM 1. Financial Statements (Unaudited)](index=4&type=section&id=ITEM%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements, including the balance sheets, statements of operations and comprehensive income, statements of equity, and statements of cash flows, along with their accompanying notes, providing a detailed financial overview for the quarter ended March 31, 2025, and comparative periods [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement presents the company's financial position, including assets, liabilities, and equity, at specific points in time Condensed Consolidated Balance Sheet Highlights (In thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $1,281,736 | $1,312,195 | | Total Liabilities | $591,858 | $625,013 | | Total Equity | $689,878 | $687,182 | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) This statement details the company's revenues, expenses, net income, and comprehensive income over a specific reporting period Condensed Consolidated Statements of Operations and Comprehensive Income Highlights (In thousands, except per-share data) | Metric | For the Three Months Ended March 31, 2025 | For the Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total operating revenues | $16,804 | $20,252 | | Total operating expenses, net of credits to fees | $13,127 | $12,991 | | Net income | $15,108 | $13,567 | | Net income attributable to common stockholders | $9,106 | $7,449 | | Basic and diluted net income per common share | $0.25 | $0.21 | | Comprehensive income attributable to the Company | $13,790 | $14,575 | - Total operating revenues decreased by **17.0% YoY**, from **$20,252 thousand** in Q1 2024 to **$16,804 thousand** in Q1 2025[11](index=11&type=chunk) - Net income increased by **11.4% YoY**, from **$13,567 thousand** in Q1 2024 to **$15,108 thousand** in Q1 2025[11](index=11&type=chunk) - Gain on dispositions of real estate assets, net, increased by **50.0% YoY**, from **$10,273 thousand** in Q1 2024 to **$15,410 thousand** in Q1 2025[11](index=11&type=chunk) [Condensed Consolidated Statements of Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) This statement outlines changes in the company's equity accounts, including net income, dividends, and stock transactions, over a period Condensed Consolidated Statements of Equity Highlights (In thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Stockholders' Equity | $689,878 | $687,182 | | Net income | $15,108 | $13,567 | | Dividends—cumulative redeemable preferred stock | $(6,002) | $(6,118) | | Distributions—OP Units and common stock | $(5,070) | $(5,000) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement categorizes cash inflows and outflows from operating, investing, and financing activities for the reporting period Condensed Consolidated Statements of Cash Flows Highlights (In thousands) | Cash Flow Activity | For the Three Months Ended March 31, 2025 | For the Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,467 | $3,420 | | Net cash provided by investing activities | $60,216 | $62,519 | | Net cash used in financing activities | $(40,041) | $(32,955) | | Net increase in cash and cash equivalents | $24,642 | $32,984 | | Cash and cash equivalents at end of period | $42,917 | $51,555 | - Net cash provided by operating activities increased by **30.6% YoY**, from **$3,420 thousand** in Q1 2024 to **$4,467 thousand** in Q1 2025[17](index=17&type=chunk) - Net cash used in financing activities increased by **21.5% YoY**, from **$(32,955) thousand** in Q1 2024 to **$(40,041) thousand** in Q1 2025[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides essential supplementary information and detailed explanations for the figures presented in the primary financial statements [NOTE 1. BUSINESS AND ORGANIZATION](index=8&type=section&id=NOTE%201.%20BUSINESS%20AND%20ORGANIZATION) This note describes the company's primary business activities, organizational structure, and external management arrangements - Gladstone Land Corporation is an agricultural real estate investment trust (REIT) primarily owning and leasing farmland[20](index=20&type=chunk) - As of March 31, 2025, the Company owned **150 farms** totaling **103,001 acres** across 15 states and **55,350 acre-feet of water assets** in California[20](index=20&type=chunk) - The Company conducts substantially all operations through its subsidiary, Gladstone Land Limited Partnership (Operating Partnership), and is externally managed by Gladstone Management Corporation and Gladstone Administration, LLC, both affiliates[21](index=21&type=chunk)[23](index=23&type=chunk) [NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=8&type=section&id=NOTE%202.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the key accounting principles and methods used in preparing the interim financial statements - Interim financial statements are prepared in accordance with U.S. GAAP for interim financial information and Regulation S-X[25](index=25&type=chunk) - The Company's business strategy includes one operating segment: Real Estate Rental Operations[28](index=28&type=chunk) - The Company is assessing the impact of ASU 2024-03, effective for annual periods after December 15, 2026, which requires disaggregation of income statement expenses[30](index=30&type=chunk) [NOTE 3. REAL ESTATE AND INTANGIBLE ASSETS](index=9&type=section&id=NOTE%203.%20REAL%20ESTATE%20AND%20INTANGIBLE%20ASSETS) This note provides details on the company's real estate portfolio, including acquisitions, dispositions, and water assets Summary of Farms Owned as of March 31, 2025 (dollars in thousands) | Location | No. of Farms | Acres | Acre-feet of Water Assets | Net Cost Basis | Encumbrances | | :--- | :--- | :--- | :--- | :--- | :--- | | California | 63 | 34,845 | 55,350 | $833,896 | $364,788 | | Florida | 20 | 13,090 | 0 | $129,003 | $57,155 | | Total | 150 | 103,001 | 55,350 | $1,204,803 | $500,964 | - No new farms were acquired during the three months ended March 31, 2025 or 2024[37](index=37&type=chunk) - In January 2025, the Company sold five farms in Florida for **$52.5 million**, recognizing a net gain of **$14.1 million**[38](index=38&type=chunk) - In February 2025, the Company sold two farms in Nebraska for **$12.0 million**, recognizing a net gain of **$1.6 million**[39](index=39&type=chunk) - As of March 31, 2025, total long-term water assets amounted to **55,350 acre-feet** with an aggregate carrying value of approximately **$37.2 million**[49](index=49&type=chunk) - Tenant A accounted for **14.2%** of total lease revenue in Q1 2025 (lease terminated); Tenant B accounted for **11.2%** of total lease revenue[52](index=52&type=chunk) - Farms in California (**62.4%**) and Florida (**15.3%**) accounted for the majority of total lease revenue in Q1 2025[53](index=53&type=chunk) [NOTE 4. BORROWINGS](index=13&type=section&id=NOTE%204.%20BORROWINGS) This note details the company's debt structure, including types of borrowings, interest rates, and hedging instruments Summary of Borrowings (In thousands) | Type of Borrowing | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Variable-rate revolving lines of credit | $200 | $3,600 | | Notes and bonds payable, net | $498,631 | $523,922 | | Total borrowings, net | $498,831 | $527,522 | - The weighted-average stated interest rate on borrowings was **3.79%** for Q1 2025, compared to **3.81%** for Q1 2024[58](index=58&type=chunk) - 2024 interest patronage from Farm Credit Notes Payable resulted in a **21.9% reduction (101 basis points)** to stated interest rates[66](index=66&type=chunk) - Scheduled principal payments for notes and bonds payable for the remaining nine months of 2025 are **$31,710 thousand**[67](index=67&type=chunk) - As of March 31, 2025, the aggregate fair value of notes and bonds payable was approximately **$472.0 million**, compared to a carrying value of **$500.8 million**[68](index=68&type=chunk) - The Company had **4 outstanding interest rate swap agreements** with an aggregate notional amount of **$66,647 thousand** as of March 31, 2025, designated as cash flow hedges[73](index=73&type=chunk) - Change in fair value related to interest rate hedging instruments resulted in a **$(1,318) thousand loss** in Q1 2025, compared to a **$1,008 thousand gain** in Q1 2024[73](index=73&type=chunk) [NOTE 5. CUMULATIVE TERM PREFERRED STOCK](index=16&type=section&id=NOTE%205.%20CUMULATIVE%20TERM%20PREFERRED%20STOCK) This note describes the terms, classification, and fair value of the company's cumulative term preferred stock - The **5.00% Series D Cumulative Term Preferred Stock (LANDM)** was issued in January 2021 with a mandatory redemption date of January 31, 2026[75](index=75&type=chunk)[77](index=77&type=chunk) - The Series D Term Preferred Stock is classified as a liability, and related dividend payments are treated as interest expense[78](index=78&type=chunk) - As of March 31, 2025, the fair value was approximately **$60.1 million**, compared to a carrying value of **$60.4 million**[79](index=79&type=chunk) [NOTE 6. RELATED-PARTY TRANSACTIONS](index=17&type=section&id=NOTE%206.%20RELATED-PARTY%20TRANSACTIONS) This note discloses transactions and compensation arrangements with affiliated entities and management - The Company is externally managed by Gladstone Management Corporation (Adviser) and Gladstone Administration, LLC (Administrator), both affiliates[80](index=80&type=chunk) - Adviser compensation includes a base management fee (**0.60% annually of Gross Tangible Real Estate**), an incentive fee (based on Pre-Incentive Fee FFO exceeding hurdle rates), and a capital gains fee (**15% of cumulative net realized capital gains**)[83](index=83&type=chunk)[84](index=84&type=chunk)[88](index=88&type=chunk) - Gladstone Securities, an affiliate, acts as a non-exclusive agent for financing (**0.5%-1.0% fee**) and exclusive dealer-manager for Series E Preferred Stock offering (up to **7.0% selling commissions** and **3.0% dealer-manager fees**)[93](index=93&type=chunk)[97](index=97&type=chunk) Related-Party Fees Paid or Accrued (In thousands) | Fee Type | For the Three Months Ended March 31, 2025 | For the Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Base management fee | $2,058 | $2,156 | | Capital gains fee | $188 | $— | | Administration fee | $642 | $603 | | Selling Commissions and Dealer-Manager Fees | $— | $28 | - Total amounts due to related parties as of March 31, 2025, were **$3,349 thousand**[101](index=101&type=chunk) [NOTE 7. COMMITMENTS AND CONTINGENCIES](index=20&type=section&id=NOTE%207.%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the company's material commitments and any known or threatened litigation - The Company is not currently subject to any material known or threatened litigation[102](index=102&type=chunk) [NOTE 8. EQUITY](index=20&type=section&id=NOTE%208.%20EQUITY) This note provides information on the company's equity structure, including preferred and common stock, share programs, and distributions - The 2023 Registration Statement permits the Company to issue up to **$1.5 billion** in various securities[103](index=103&type=chunk) - No shares of Series E Preferred Stock were sold during Q1 2025; **800 shares** were redeemed for approximately **$18 thousand**[105](index=105&type=chunk) - No shares of common stock were sold under the ATM Program during Q1 2025 or Q1 2024[107](index=107&type=chunk) - A share repurchase program for up to **$20.0 million** of Series B and **$35.0 million** of Series C Preferred Stock was approved, expiring May 17, 2025; no repurchases occurred in Q1 2025 or Q1 2024[108](index=108&type=chunk)[109](index=109&type=chunk) - The Company owned **100.0%** of the outstanding OP Units as of March 31, 2025, and December 31, 2024[110](index=110&type=chunk) Per-Share Distributions Declared (Q1 2025 vs Q1 2024) | Issuance | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Series B Preferred Stock | $0.375 | $0.375 | | Series C Preferred Stock | $0.375 | $0.375 | | Series D Term Preferred Stock | $0.312501 | $0.312501 | | Series E Term Preferred Stock | $0.312501 | $0.312501 | | Common Stock | $0.1401 | $0.1395 | [NOTE 9. LEASE REVENUES](index=22&type=section&id=NOTE%209.%20LEASE%20REVENUES) This note details the components of lease revenue, including fixed and variable payments, and significant changes Components of Lease Revenue (In thousands) | Component | For the Three Months Ended March 31, 2025 | For the Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Fixed lease payments | $13,927 | $19,593 | | Variable lease payments | $2,876 | $233 | | Lease revenue, net | $16,803 | $19,826 | - Lease revenue, net, decreased by **15.2% YoY**, from **$19,826 thousand** in Q1 2024 to **$16,803 thousand** in Q1 2025[116](index=116&type=chunk) - Variable lease payments significantly increased due to approximately **$2.4 million** from a lease termination fee in Q1 2025[116](index=116&type=chunk) [NOTE 10. EARNINGS PER SHARE OF COMMON STOCK](index=22&type=section&id=NOTE%2010.%20EARNINGS%20PER%20SHARE%20OF%20COMMON%20STOCK) This note presents the calculation of basic and diluted earnings per common share for the reporting period Earnings Per Common Share (In thousands, except per-share amounts) | Metric | For the Three Months Ended March 31, 2025 | For the Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income attributable to common stockholders | $9,106 | $7,449 | | Weighted average shares of common stock outstanding – basic and diluted | 36,184,658 | 35,838,442 | | Income per common share – basic and diluted | $0.25 | $0.21 | - Basic and diluted EPS increased to **$0.25** in Q1 2025 from **$0.21** in Q1 2024[118](index=118&type=chunk) [NOTE 11. SUBSEQUENT EVENTS](index=22&type=section&id=NOTE%2011.%20SUBSEQUENT%20EVENTS) This note discloses significant events that occurred after the balance sheet date but before the financial statements were issued - On April 8, 2025, the Board of Directors declared monthly cash distributions for preferred and common stock for April, May, and June 2025[119](index=119&type=chunk) Total Distributions Declared per Share for Q2 2025 | Issuance | Total Distribution per Share | | :--- | :--- | | Series B Preferred Stock | $0.375 | | Series C Preferred Stock | $0.375 | | Series D Term Preferred Stock | $0.312501 | | Series E Preferred Stock | $0.312501 | | Common Stock | $0.1401 | [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, covering business overview, operational performance, liquidity, capital resources, and non-GAAP financial measures [OVERVIEW](index=24&type=section&id=OVERVIEW) This section provides a comprehensive introduction to the company's business, portfolio diversification, and market environment - Gladstone Land Corporation is an externally-managed agricultural REIT, owning **150 farms (103,001 acres)** and **55,350 acre-feet of water assets** in California as of March 31, 2025[123](index=123&type=chunk) - The portfolio is diversified across **15 states**, leased to **84 tenants**, growing over **60 different crop types**, with a focus on fresh produce and permanent crops[126](index=126&type=chunk) Geographic Distribution of Farms and Lease Revenue (Q1 2025) | State | No. of Farms | Total Acres | % of Total Acres | Lease Revenue ($ thousands) | % of Total Lease Revenue | | :--- | :--- | :--- | :--- | :--- | :--- | | California | 63 | 34,845 | 33.8% | $10,491 | 62.4% | | Florida | 20 | 13,090 | 12.7% | $2,574 | 15.3% | | Total | 150 | 103,001 | 100.0% | $16,803 | 100.0% | - Most leases are triple-net, with terms ranging from **3-10 years** for row crops and **7-15 years** for permanent crops; **24 farms** include variable 'participation rents'[129](index=129&type=chunk) - **16 leases** are expiring in 2025, representing **17.2%** of total acreage and **(6.6)%** of total lease revenue (due to net cash lease incentives)[131](index=131&type=chunk) - Inflation (CPI **2.4% annually**) and food price increases (**3.0% annually**) continue, with high input costs for farm operators[132](index=132&type=chunk) - Over **99.9%** of borrowings are at fixed rates, with a weighted-average effective interest rate of **3.41%** for another **3.4 years**, insulating against interest rate volatility[134](index=134&type=chunk) - New tariffs introduce uncertainty for U.S. agricultural exports, particularly almonds and pistachios, which are highly export-dependent[135](index=135&type=chunk) - California's water outlook is favorable with average/above-average precipitation, supporting strong snowmelt runoff and reservoir levels, but groundwater pumping restrictions under SGMA continue[137](index=137&type=chunk)[138](index=138&type=chunk)[140](index=140&type=chunk) - In Q1 2025, the Company sold five farms in Florida for **$52.5 million** (net gain **$14.1 million**) and two farms in Nebraska for **$12.0 million** (net gain **$1.6 million**)[141](index=141&type=chunk)[142](index=142&type=chunk) - **15 farms** were vacant, direct-operated, or on non-accrual status in Q1 2025 (vs 9 in Q1 2024), generating **$3.7 million** in lease revenue (including a **$2.4 million** lease termination fee)[145](index=145&type=chunk) - Approximately **$19.4 million** of loans were repaid in Q1 2025, bearing a weighted-average stated interest rate of **5.38%**[148](index=148&type=chunk) - Interest patronage of approximately **$1.7 million** was recorded in Q1 2025 related to 2024 interest accrued on Farm Credit Notes Payable[149](index=149&type=chunk) [RESULTS OF OPERATIONS](index=29&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the company's financial performance, comparing revenues, expenses, and net income across periods Operating Income Comparison (In thousands) | Metric | For the Three Months Ended March 31, 2025 | For the Three Months Ended March 31, 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total operating revenues | $16,804 | $20,252 | $(3,448) | (17.0)% | | Total operating expenses | $13,127 | $12,991 | $136 | 1.0% | | Operating income | $3,677 | $7,261 | $(3,584) | (49.4)% | Lease Revenue Summary (Same-property basis, In thousands) | Component | For the Three Months Ended March 31, 2025 | For the Three Months Ended March 31, 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Fixed lease payments | $13,920 | $19,385 | $(5,465) | (28.2)% | | Participation rents | $465 | $— | $465 | NM | | Lease termination and other income | $2,380 | $— | $2,380 | NM | | Total – Same-property basis | $16,765 | $19,385 | $(2,620) | (13.5)% | - Fixed lease payments decreased primarily due to lease agreements with reduced or eliminated fixed base rent in exchange for increased participation rent components, expected in Q4 2025[165](index=165&type=chunk) - A lease termination payment of approximately **$2.4 million** was recognized in Q1 2025[166](index=166&type=chunk) - Depreciation and amortization decreased by **4.1%** to **$8,429 thousand**, mainly due to asset dispositions and assets reaching end of useful lives[170](index=170&type=chunk) - Property operating expenses increased by **28.6%** to **$1,128 thousand**, driven by costs for vacant/direct-operated/non-accrual farms and legal fees for water rights[171](index=171&type=chunk)[172](index=172&type=chunk) - The Adviser earned a capital gains fee of **$188 thousand** in Q1 2025 due to gains on seven farm sales[178](index=178&type=chunk) - Other income decreased by **19.6%** to **$1,952 thousand**, primarily due to less interest earned on short-term investments and decreased Farm Credit interest patronage[182](index=182&type=chunk) - Interest expense decreased by **6.8%** to **$(5,177) thousand**, primarily due to a decrease in overall borrowings[185](index=185&type=chunk) - Net capital gain on dispositions of real estate assets increased by **50.0%** to **$15,410 thousand**, driven by sales of five Florida farms and two Nebraska farms[186](index=186&type=chunk) - Net income attributable to common stockholders increased by **22.2%** to **$9,106 thousand**[181](index=181&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=35&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses the company's ability to meet its short-term and long-term financial obligations and fund operations - Current available liquidity is approximately **$183.8 million**, comprising **$38.1 million** in cash and **$145.7 million** available under credit facilities[189](index=189&type=chunk) - Over **99.9%** of borrowings are at fixed rates, with a weighted-average effective interest rate of **3.41%** for another **3.4 years**[190](index=190&type=chunk) - Future capital needs include debt service, operating costs, preferred dividends, common distributions, capital improvements, preferred stock repurchases, and new acquisitions[191](index=191&type=chunk) - Long-term liquidity will be met through current lines of credit, long-term mortgage indebtedness, bond issuances, future equity issuances (Series E Preferred Stock, OP Units, common stock via ATM Program), and other borrowings[192](index=192&type=chunk) Operating Commitments for Capital Improvements (In thousands) | Farm Location(s) | Total Commitment | Net Amount Expended or Accrued as of March 31, 2025 | | :--- | :--- | :--- | | St. Lucie, FL | $230 | $185 | | Monterey, CA | $1,100 | $30 | | Ventura, CA | $1,000 | $458 | | Hartley, TX | $1,300 | $982 | | Franklin & Grant, WA, & Umatilla, OR | $4,203 | $2,977 | | Wicomico & Caroline, MD, and Sussex, DE | $155 | $49 | | Total | $7,998 | $4,681 | - Total undiscounted ground lease obligations are **$1,196 thousand**[196](index=196&type=chunk) Net Change in Cash Flows (In thousands) | Cash Flow Activity | For the Three Months Ended March 31, 2025 | For the Three Months Ended March 31, 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Operating activities | $4,467 | $3,420 | $1,047 | 30.6% | | Investing activities | $60,216 | $62,519 | $(2,303) | (3.7)% | | Financing activities | $(40,041) | $(32,955) | $(7,086) | 21.5% | | Net change in Cash and cash equivalents | $24,642 | $32,984 | $(8,342) | (25.3)% | - Cash provided by operating activities increased due to higher participation rents and a lease termination fee, partially offset by decreased fixed lease payments[198](index=198&type=chunk) - Cash used in financing activities increased primarily due to approximately **$6.9 million** in aggregate debt repayments[200](index=200&type=chunk) - The MetLife Facility has approximately **$110.0 million** of availability[201](index=201&type=chunk) - The Farmer Mac Facility provides for bond issuances up to an aggregate of **$225.0 million** by December 31, 2026[202](index=202&type=chunk) - The 2023 Registration Statement allows for the issuance of up to **$1.5 billion** in securities[204](index=204&type=chunk) - No material off-balance sheet arrangements existed as of March 31, 2025[206](index=206&type=chunk) [NON-GAAP FINANCIAL INFORMATION](index=38&type=section&id=NON-GAAP%20FINANCIAL%20INFORMATION) This section presents and reconciles non-GAAP financial measures used by management to evaluate performance - The Company uses FFO, CFFO, and AFFO as non-GAAP supplemental measures to assess operating performance and improve period-over-period comparability[207](index=207&type=chunk)[208](index=208&type=chunk) - FFO is net income excluding gains/losses from property sales and impairment, plus real estate depreciation/amortization[207](index=207&type=chunk) - CFFO adjusts FFO for acquisition- and disposition-related expenses and other non-recurring charges/receipts[210](index=210&type=chunk) - AFFO further adjusts CFFO for rent adjustments (straight-lining, amortization/accretion of lease values/incentives, normalized cash rent), amortization of debt issuance costs, and other non-cash charges/receipts[209](index=209&type=chunk)[217](index=217&type=chunk) Reconciliation of FFO, CFFO, and AFFO (In thousands, except per-share amounts) | Metric | For the Three Months Ended March 31, 2025 | For the Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income | $15,108 | $13,567 | | FFO available to common stockholders and non-controlling OP Unitholders | $2,139 | $5,988 | | CFFO available to common stockholders and non-controlling OP Unitholders | $2,333 | $5,999 | | AFFO available to common stockholders and non-controlling OP Unitholders | $2,035 | $5,130 | | Diluted FFO per weighted-average common share | $0.06 | $0.17 | | Diluted CFFO per weighted-average common share | $0.06 | $0.17 | | Diluted AFFO per weighted-average common share | $0.06 | $0.14 | [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the company's exposure to market risks, primarily interest rate risk, and strategies to mitigate it - The primary market risk is interest rate risk, although over **99.9%** of borrowings are at fixed rates, with an effective interest rate of **3.41%** for another **3.4 years**[220](index=220&type=chunk)[221](index=221&type=chunk) - As of March 31, 2025, the fair value of fixed-rate borrowings was approximately **$472.0 million**[221](index=221&type=chunk) Hypothetical Change in Fair Value of Fixed-Rate Borrowings (March 31, 2025, In thousands) | Change in Market Interest Rates | Carrying Value | Fair Value | Difference | | :--- | :--- | :--- | :--- | | 2% decrease | $500,764 | $494,129 | $(6,635) | | 1% decrease | $500,764 | $482,853 | $(17,911) | | No change | $500,764 | $472,032 | $(28,732) | | 1% increase | $500,764 | $461,710 | $(39,054) | | 2% increase | $500,764 | $451,791 | $(48,973) | - The Company's objectives are to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs, potentially using interest rate swaps and caps[222](index=222&type=chunk) [ITEM 4. Controls and Procedures](index=41&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting - Disclosure controls and procedures were evaluated and deemed effective as of March 31, 2025[224](index=224&type=chunk) - No changes in internal control over financial reporting occurred during Q1 2025 that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[226](index=226&type=chunk) [PART II – OTHER INFORMATION](index=43&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section includes non-financial disclosures such as legal proceedings, risk factors, and other miscellaneous information [ITEM 1. Legal Proceedings](index=43&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings, nor is it aware of any threatened material litigation - The Company is not currently subject to any material known or threatened litigation[228](index=228&type=chunk) [ITEM 1A. Risk Factors](index=43&type=section&id=ITEM%201A.%20Risk%20Factors) This section highlights key risks, including the potential adverse effects of tariffs on agricultural exports and the elevated credit and concentration risks associated with tenants accounting for a significant portion of total lease revenue - Tariffs on U.S. agricultural exports could increase growing costs for tenants or reduce demand for crops, potentially affecting their ability to pay rent[230](index=230&type=chunk) - The Company is exposed to elevated credit and concentration risks from tenants accounting for a relatively high percentage of total lease revenue (e.g., one tenant accounted for approximately **11.2%** in Q1 2025)[231](index=231&type=chunk)[232](index=232&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report for the period - No unregistered sales of equity securities or use of proceeds to report[234](index=234&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=43&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the company for the reporting period - Not applicable[235](index=235&type=chunk) [ITEM 4. Mine Safety Disclosures](index=43&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company for the reporting period - Not applicable[236](index=236&type=chunk) [ITEM 5. Other Information](index=44&type=section&id=ITEM%205.%20Other%20Information) No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by officers or directors during the three months ended March 31, 2025 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by officers or directors during the three months ended March 31, 2025[237](index=237&type=chunk) [ITEM 6. Exhibits](index=45&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, preferred stock certificates, officer certifications, and XBRL-formatted financial statements - Exhibits include Articles of Incorporation, Bylaws, Preferred Stock Certificates, Form of Indenture, Officer Certifications (Sarbanes-Oxley Act), and XBRL Instance Document for financial statements[239](index=239&type=chunk)[240](index=240&type=chunk) [SIGNATURES](index=47&type=section&id=SIGNATURES) The report is signed by Lewis Parrish, Chief Financial Officer and Assistant Treasurer, and David Gladstone, President, Chief Executive Officer, and Chairman of the Board of Directors, on May 12, 2025 - The report was signed on May 12, 2025, by Lewis Parrish (Chief Financial Officer and Assistant Treasurer) and David Gladstone (President, Chief Executive Officer, and Chairman of the Board of Directors)[244](index=244&type=chunk)

Group 1 - The article discusses the author's journey into investing, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

Core Viewpoint - Gladstone Land Corporation (NASDAQ: LAND) is rated as a Hold for income-oriented investors interested in real estate investment trusts (REITs) due to the growing population and decreasing arable land availability [1] Summary by Category Company Overview - Gladstone Land Corporation operates in the real estate investment trust sector, focusing on agricultural land [1] Investment Thesis - The investment thesis highlights the contradiction between a growing population and the diminishing amount of arable land, which supports the REIT's value proposition [1] Analyst Background - David A. Johnson, the founder of Endurance Capital Management, has over 30 years of investment experience and holds multiple advanced degrees in finance and business [1]

Group 1 - Gladstone Land (NASDAQ: LAND) is a specialized REIT focusing on farmland, experiencing significant price fluctuations during the pandemic, with shares rising from $10 in 2020 to around $40 at their peak [1] - The investing group "Value In Corporate Events" provides members with opportunities to capitalize on major corporate events such as IPOs, mergers & acquisitions, and earnings reports, covering 10 major events a month [1]