Financial Data and Key Metrics Changes - The company recorded a net income of approximately $4.2 million for the fourth quarter and a net loss to common shareholders of $1.8 million, or $0.05 per share. For the year, net income was $13.5 million with a net loss to common shareholders of $10.5 million, or $0.29 per share [27] - Adjusted Funds from Operations (AFFO) for the fourth quarter was $14.4 million, or $0.38 per share, compared to $3.4 million or $0.09 per share in the same quarter last year. For the year, AFFO was $14.4 million, or $0.39 per share, down from $16 million or $0.47 per share the previous year [28] Business Line Data and Key Metrics Changes - The company sold six properties during the year, totaling $95 million in proceeds, with an aggregate gain of about $21 million from these sales [5] - Fixed base cash rents decreased by approximately $1.9 million for the quarter and about $19.8 million for the full year, primarily due to lease modifications [28] - Participation rents increased by about $9.3 million on a quarterly basis and by $10.6 million for the full year, driven by stronger pistachio pricing compared to last year [29] Market Data and Key Metrics Changes - The company operates farms in 14 different states, with significant water assets located in California, where water availability is currently strong [5] - The nut crop markets, particularly for pistachios, are showing notable resilience and strength, with upward pressure on pricing due to a light supply chain [19] - The wine grape market continues to underperform, but there are signs of short supply in certain varietals, which may lead to future price increases [22] Company Strategy and Development Direction - The company is considering selling additional farms as part of an ongoing portfolio review, with proceeds aimed at paying down debt and buying back more expensive preferred stock [7] - The company is taking a disciplined approach to new investments, with a focus on interest rates and overall cost of capital remaining elevated [8] - The long-term expectation is for inflation in the food sector to continue rising, which is anticipated to increase the value of underlying farmland over time [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current operating environment, noting that the worst may be behind them, although it is still too early to confirm [36] - The company expects significant revenue from the 2025 pistachio harvest to be recognized in 2026, with a strong likelihood of higher pricing for the 2025 crop compared to 2024 [10][19] - Management highlighted the importance of crop insurance in mitigating risks associated with farming operations [11] Other Important Information - The company has about $85 million in immediately available capital and over $185 million of unpledged properties that can be used as additional collateral [33] - The company redeemed its Series D term preferred stock to avoid a step-up in the coupon from 5% to 8%, funded through a combination of common stock issuance and a draw on its line of credit [26] Q&A Session Summary Question: Are the five repositioned farms under similar leases with no base rents? - Yes, they will have either no base rent or possibly a lease incentive, similar to the structure used in 2025 [40] Question: What percentage of revenue was recognized in the fourth quarter of 2025? - It varies by farm, but for pistachios, it is estimated to be between 65%-75% in the first year [44] Question: What are the expectations for interest patronage in the first quarter? - Expected to be 10%-15% less than what was recognized in 2025, reflecting a decrease in loan balance [50] Question: How is the company looking at acquiring further water holdings? - The company is focused on cost-driven opportunities for water purchases, especially as prices come down due to plentiful supply [68]

Group 1 - The corn market is showing slight increases, with nearby contracts rising by a fraction to a penny higher [1] - The CmdtyView national average Cash Corn price has increased by 0.25 cents to $3.91 1/4 [1] - Today marks the final day for harvest price discovery for crop insurance, with December corn averaging $4.22 so far in October [1] Group 2 - Ukraine's corn exports have significantly decreased to 0.8 million metric tons (MMT) in October, down from 1.73 MMT last year [2] - December corn is priced at $4.31 1/4, reflecting an increase of 1 cent, while March 2026 corn is at $4.44, also up by 0.25 cents [2] - May 2026 corn is priced at $4.52, showing a decrease of 0.25 cents [2]

Core Insights - Corn futures experienced a decline of 2 to 3 cents, with December contracts down 3 cents for the week, reflecting a volatile trading session [1] - The national average cash corn price decreased by 2 1/4 cents, settling at $3.76, while the average closing price for the first three days of October was $4.19, which will be used for crop insurance harvest pricing [1][3] - Harvest activities have progressed smoothly, contributing to market pressure, although the upcoming week may see more variable totals [2] Market Data - December corn closed at $4.19, down 2 3/4 cents; nearby cash corn was at $3.76, down 2 1/4 cents; March 2026 corn closed at $4.35 3/4, down 2 1/4 cents; and May 2026 corn closed at $4.45 1/4, down 2 1/2 cents [3] - A Ukrainian farm union, UAC, projects the 2025 corn crop at 29 million metric tons (MMT), indicating a 3 MMT increase from the previous year if realized [3] - Argentina's corn planting is currently estimated at 20%, an increase from 12% the previous week, according to the Buenos Aires Grain Exchange [3]