GLADSTONE LAND Corp 10-Q

ITEM 1. FINANCIAL STATEMENTS GLADSTONE LAND CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per-share data) (Unaudited) June 30, 2026 December 31, 2025 ASSETS Real estate, at cost $ 1,287,071 $ 1,297,013 Less: accumulated depreciation ( 214,738 ) ( 198,261 ) Total real estate, net 1,072,333 1,098,752 Lease intangibles, net 2,934 3,129 Real estate and related assets held for sale, net 3,143 — Cash and cash equivalents 22,551 27,177 Crop inventory 6,534 1,663 Investments in water assets 41,713 41,549 Other assets, net 42,988 66,902 TOTAL ASSETS $ 1,192,196 $ 1,239,172 LIABILITIES AND EQUITY LIABILITIES: Borrowings under lines of credit $ 21,100 $ 200 Notes and bonds payable, net 464,934 473,435 Series D cumulative term preferred stock, net, $ 0.001 par value, $ 25.00 per share liquidation preference; 0 shares authorized, issued, or outstanding as of June 30, 2026; 2,415,000 shares authorized, issued, and outstanding as of December 31, 2025 — 60,341 Accounts payable and accrued expenses 17,502 22,005 Due to related parties, net 3,210 2,844 Other liabilities, net 12,339 10,061 Total Liabilities 519,085 568,886 Commitments and contingencies (Note 9) EQUITY: Series B cumulative redeemable preferred stock, $ 0.001 par value, $ 25.00 per share liquidation preference; 6,158,577 shares authorized, 5,658,577 shares issued and outstanding as of June 30, 2026; 6,340,889 shares authorized, 5,840,889 shares issued and outstanding as of December 31, 2025 6 6 Series C cumulative redeemable preferred stock, $ 0.001 par value, $ 25.00 per share liquidation preference; 9,788,546 shares authorized, 9,593,965 shares issued and outstanding as of June 30, 2026; 10,149,444 shares authorized, 9,954,863 shares issued and outstanding as of December 31, 2025 10 10 Series E cumulative redeemable preferred stock, $ 0.001 par value, $ 25.00 per share liquidation preference; 15,956,290 shares authorized, 210,726 shares issued and outstanding as of June 30, 2026; 15,994,050 shares authorized, 248,486 shares issued and outstanding as of December 31, 2025 — — Common stock, $ 0.001 par value; 68,096,587 shares authorized, 43,136,573 shares issued and outstanding as of June 30, 2026; 65,100,617 shares authorized, 38,014,918 shares issued and outstanding as of December 31, 2025 43 38 Additional paid-in capital 908,539 870,847 Distributions in excess of accumulated earnings ( 240,810 ) ( 205,511 ) Accumulated other comprehensive income 5,323 4,896 Total Equity 673,111 670,286 TOTAL LIABILITIES AND EQUITY $ 1,192,196 $ 1,239,172 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 Table of Contents GLADSTONE LAND CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In thousands, except share and per-share data) (Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 OPERATING REVENUES: Lease revenue, net $ 12,359 $ 12,296 $ 27,154 $ 29,098 Crop sales 333 — 2,082 — Other operating revenue — — 8 1 Total operating revenues 12,692 12,296 29,244 29,099 OPERATING EXPENSES: Depreciation and amortization 7,886 8,374 18,255 16,803 Property operating expenses 1,605 1,242 3,722 2,370 Cost of sales ( 256 ) — ( 414 ) — Base management fee 1,944 1,990 3,890 4,048 Capital gains fee credit — ( 188 ) — — Administration fee 724 572 1,443 1,213 General and administrative expenses 905 520 1,629 1,203 Impairment charge 4,194 — 5,078 — Total operating expenses 17,002 12,510 33,603 25,637 OTHER INCOME (EXPENSE): Other income 25 267 1,481 2,219 Interest expense ( 4,664 ) ( 4,976 ) ( 9,390 ) ( 10,154 ) Dividends declared on cumulative term preferred stock — ( 755 ) ( 243 ) ( 1,509 ) Gain (loss) on dispositions of real estate assets, net 438 ( 2,149 ) ( 21 ) 13,261 Property and casualty (loss) recovery, net ( 22 ) — ( 115 ) 137 Gain (loss) from investments in unconsolidated entities 73 ( 51 ) ( 117 ) ( 186 ) Total other (expense) income, net ( 4,150 ) ( 7,664 ) ( 8,405 ) 3,768 NET (LOSS) INCOME ( 8,460 ) ( 7,878 ) ( 12,764 ) 7,230 Dividends declared on cumulative redeemable preferred stock ( 5,862 ) ( 6,002 ) ( 11,850 ) ( 12,004 ) Gain on extinguishment of cumulative redeemable preferred stock, net 799 — 1,107 — NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS $ ( 13,523 ) $ ( 13,880 ) $ ( 23,507 ) $ ( 4,774 ) NET LOSS PER COMMON SHARE: Basic and diluted $ ( 0.32 ) $ ( 0.38 ) $ ( 0.56 ) $ ( 0.13 ) WEIGHTED-AVERAGE SHARES OF COMMON STOCK OUTSTANDING: Basic and diluted 42,911,176 36,184,658 41,889,429 36,184,658 NET (LOSS) INCOME $ ( 8,460 ) $ ( 7,878 ) $ ( 12,764 ) $ 7,230 Change in fair value related to interest rate hedging instruments 349 ( 856 ) 427 ( 2,174 ) COMPREHENSIVE (LOSS) INCOME $ ( 8,111 ) $ ( 8,734 ) $ ( 12,337 ) $ 5,056 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Table of Contents GLADSTONE LAND CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (In thousands, except share data) (Unaudited) Three Months Ended June 30, 2026 Series B Preferred Stock Series C Preferred Stock Series E Preferred Stock Common Stock Additional Paid-in Capital Distributions in Excess of Accumulated Earnings Accumulated Other Comprehensive Income Total Equity No. of Shares Par Value No. of Shares Par Value No. of Shares Par Value No. of Shares Par Value Balance at March 31, 2026 5,801,767 $ 6 9,870,088 $ 10 238,126 $ — 41,759,181 $ 42 $ 904,551 $ ( 221,258 ) $ 4,974 $ 688,325 Redemptions of Series B Preferred Stock, net ( 143,190 ) — — — — — — — ( 3,185 ) 203 — ( 2,982 ) Redemptions of Series C Preferred Stock, net — — ( 276,123 ) — — — — — ( 6,263 ) 603 — ( 5,660 ) Redemptions of Series E Preferred Stock, net — — — — ( 27,400 ) — — — ( 609 ) ( 7 ) — ( 616 ) Issuances of common stock, net — — — — — — 1,377,392 1 14,045 — — 14,046 Net loss — — — — — — — — — ( 8,460 ) — ( 8,460 ) Dividends—cumulative redeemable preferred stock — — — — — — — — — ( 5,862 ) — ( 5,862 ) Distributions—OP Units and common stock — — — — — — — — — ( 6,029 ) — ( 6,029 ) Comprehensive income attributable to the Company — — — — — — — — — — 349 349 Balance at June 30, 2026 5,658,577 $ 6 9,593,965 $ 10 210,726 $ — 43,136,573 $ 43 $ 908,539 $ ( 240,810 ) $ 5,323 $ 673,111 Six Months Ended June 30, 2026 Series B Preferred Stock Series C Preferred Stock Series E Preferred Stock Common Stock Additional Paid-in Capital Distributions in Excess of Accumulated Earnings Accumulated Other Comprehensive Income Total Equity No. of Shares Par Value No. of Shares Par Value No. of Shares Par Value No. of Shares Par Value Balance at December 31, 2025 5,840,889 $ 6 9,954,863 $ 10 248,486 $ — 38,014,918 $ 38 $ 870,847 $ ( 205,511 ) $ 4,896 $ 670,286 Redemptions of Series B Preferred Stock, net ( 182,312 ) — — — — — — — ( 4,055 ) 288 — ( 3,767 ) Redemptions of Series C Preferred Stock, net — — ( 360,898 ) — — — — — ( 8,186 ) 843 — ( 7,343 ) Issuances of Series E Preferred Stock, net — — — — — — — — ( 3 ) — — ( 3 ) Redemptions of Series E Preferred Stock, net — — — — ( 37,760 ) — — — ( 840 ) ( 24 ) — ( 864 ) Issuances of common stock, net — — — — — — 5,121,655 5 50,776 — — 50,781 Net loss — — — — — — — — — ( 12,764 ) — ( 12,764 ) Dividends—cumulative redeemable preferred stock — — — — — — — — — ( 11,850 ) — ( 11,850 ) Distributions—OP Units and common stock — — — — — — — — — ( 11,792 ) — ( 11,792 ) Comprehensive income attributable to the Company — — — — — — — — — — 427 427 Balance at June 30, 2026 5,658,577 $ 6 9,593,965 $ 10 210,726 $ — 43,136,573 $ 43 $ 908,539 $ ( 240,810 ) $ 5,323 $ 673,111 The accompanying notes are an integral part of these condensed consolidated financial statements 5 Table of Contents GLADSTONE LAND CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (In thousands, except share data) (Unaudited) Three Months Ended June 30, 2025 Series B Preferred Stock Series C Preferred Stock Series E Preferred Stock Common Stock Additional Paid-in Capital Distributions in Excess of Accumulated Earnings Accumulated Other Comprehensive Income Total Equity No. of Shares Par Value No. of Shares Par Value No. of Shares Par Value No. of Shares Par Value Balance at March 31, 2025 5,840,889 $ 6 9,954,863 $ 10 251,636 $ — 36,184,658 $ 36 $ 854,037 $ ( 170,525 ) $ 6,314 $ 689,878 Net loss — — — — — — — — — ( 7,878 ) — ( 7,878 ) Dividends—cumulative redeemable preferred stock — — — — — — — — — ( 6,002 ) — ( 6,002 ) Distributions—OP Units and common stock — — — — — — — — — ( 5,069 ) — ( 5,069 ) Comprehensive loss attributable to the Company — — — — — — — — — — ( 856 ) ( 856 ) Balance at June 30, 2025 5,840,889 $ 6 9,954,863 $ 10 251,636 $ — 36,184,658 $ 36 $ 854,037 $ ( 189,474 ) $ 5,458 $ 670,073 Six Months Ended June 30, 2025 Series B Preferred Stock Series C Preferred Stock Series E Preferred Stock Common Stock Additional Paid-in Capital Distributions in Excess of Accumulated Earnings Accumulated Other Comprehensive Income Total Equity No. of Shares Par Value No. of Shares Par Value No. of Shares Par Value No. of Shares Par Value Balance at December 31, 2024 5,840,889 $ 6 9,954,863 $ 10 252,436 $ — 36,184,658 $ 36 $ 854,059 $ ( 174,561 ) $ 7,632 $ 687,182 Issuances of Series E Preferred Stock, net — — — — — — — — ( 4 ) — — ( 4 ) Redemptions of Series E Preferred Stock, net — — — — ( 800 ) — — — ( 18 ) — — ( 18 ) Net income — — — — — — — — — 7,230 — 7,230 Dividends—cumulative redeemable preferred stock — — — — — — — — — ( 12,004 ) — ( 12,004 ) Distributions—OP Units and common stock — — — — — — — — — ( 10,139 ) — ( 10,139 ) Comprehensive loss attributable to the Company — — — — — — — — — — ( 2,174 ) ( 2,174 ) Balance at June 30, 2025 5,840,889 $ 6 9,954,863 $ 10 251,636 $ — 36,184,658 $ 36 $ 854,037 $ ( 189,474 ) $ 5,458 $ 670,073 The accompanying notes are an integral part of these condensed consolidated financial statements 6 Table of Contents GLADSTONE LAND CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) For the Six Months Ended June 30, 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income $ ( 12,764 ) $ 7,230 Adjustments to reconcile net (loss) income to net provided by operating activities: Depreciation and amortization 18,255 16,803 Impairment charge 5,078 — Amortization of debt issuance costs 274 581 Straight-line rent adjustment 1,907 ( 842 ) Amortization of deferred rent assets and liabilities, net 3,949 6,098 Amortization of right-of-use assets from operating leases and operating lease liabilities, net 50 49 Loss from investments in unconsolidated entities 117 186 Loss (gain) on dispositions of real estate assets, net 21 ( 13,261 ) Property and casualty loss (recovery), net 115 ( 137 ) Changes in operating assets and liabilities: Crop inventory ( 4,368 ) ( 3,263 ) Investments in water assets ( 291 ) ( 460 ) Other assets, net 15,502 3,701 Accounts payable and accrued expenses ( 1,374 ) ( 7,150 ) Due to related parties, net 366 270 Other liabilities, net 2,389 ( 1,389 ) Net cash provided by operating activities 29,226 8,416 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures on existing real estate assets ( 452 ) ( 4,617 ) Contributions to unconsolidated real estate entities ( 74 ) — Proceeds from dispositions of real estate assets, net — 62,012 Net cash (used in) provided by investing activities ( 526 ) 57,395 CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings from lines of credit 66,200 — Repayments of lines of credit ( 45,300 ) ( 3,400 ) Borrowings from notes and bonds payable — 10,600 Repayments of notes and bonds payable ( 8,686 ) ( 38,567 ) Payments of financing fees ( 349 ) ( 69 ) Redemption of cumulative term preferred stock ( 60,375 ) — Proceeds from issuance of common equity 51,350 — Offering costs ( 547 ) ( 8 ) Redemptions of cumulative redeemable preferred stock ( 11,974 ) ( 18 ) Dividends paid on cumulative redeemable preferred stock ( 11,853 ) ( 12,004 ) Distributions paid on common stock ( 11,792 ) ( 10,139 ) Net cash used in financing activities ( 33,326 ) ( 53,605 ) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ( 4,626 ) 12,206 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 27,177 18,275 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 22,551 $ 30,481 NON-CASH INVESTING AND FINANCING INFORMATION: Real estate additions included in Accounts payable and accrued expenses $ 719 $ 425 Financing fees included in Accounts payable and accrued expenses 94 45 The accompanying notes are an integral part of these condensed consolidated financial statements. 7 Table of Contents GLADSTONE LAND CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 1. BUSINESS AND ORGANIZATION Business and Organization Gladstone Land Corporation (“we,” “us,” or the “Company”) is an agricultural real estate investment trust (“REIT”) that was re-incorporated in Maryland on March 24, 2011, having been originally incorporated in California on June 14, 1997. We are primarily in the business of 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”). As of June 30, 2026, we owned 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, as of June 30, 2026, two of our properties (comprising four farms) were being directly operated by us. We conduct substantially all of our operations through a subsidiary, Gladstone Land Limited Partnership (the “Operating Partnership”), a Delaware limited partnership. As we currently control the sole general partner of the Operating Partnership and own, directly or indirectly, a majority of the common units of limited partnership interest in the Operating Partnership (“OP Units”), the financial position and results of operations of the Operating Partnership are consolidated within our financial statements. As of each of June 30, 2026, and December 31, 2025, the Company owned all of the outstanding OP Units. Gladstone Land Advisers, Inc. (“Land Advisers”), a Delaware corporation and an indirect wholly-owned subsidiary of ours, was created to collect any non-qualifying income related to our real estate portfolio and to perform certain small-scale farming business operations. We have elected for Land Advisers to be taxed as a TRS of ours. Since we currently indirectly own all of the voting securities of Land Advisers, its financial position and results of operations are consolidated within our financial statements. For the six months ended June 30, 2026, and for the tax year ended December 31, 2025, there was no taxable income or loss from Land Advisers, nor did we have any undistributed REIT taxable income. Subject to certain restrictions and limitations, and pursuant to contractual agreements, our business is managed by Gladstone Management Corporation (the “Adviser”), a Delaware corporation, and administrative services are provided to us by Gladstone Administration, LLC (the “Administrator”), a Delaware limited liability company. Our Adviser and Administrator are both affiliates of ours (see Note 8, “ Related-Party Transactions ,” for additional discussion regarding our Adviser and Administrator). All further references herein to “we,” “us,” “our,” and the “Company” refer, collectively, to Gladstone Land Corporation and its consolidated subsidiaries, except where indicated otherwise. NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Interim Financial Information Our interim financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q in accordance with Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. The interim financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025, as originally filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 24, 2026, and as amended on April 7, 2026 (collectively, the “Form 10-K”). The results of operations for the three and six months ended June 30, 2026, are not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect our reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and our reported amounts of revenues and expenses during the reporting periods. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making certain judgments. Actual results may materially differ from these estimates. Reclassifications 8 Table of Contents Certain line items on the accompanying Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2025, have been reclassified to conform to the current period’s presentation. These reclassifications had no impact on previously-reported stockholders’ equity, net income, or net change in cash and cash equivalents. Income Taxes We have operated and intend to continue to operate in a manner that will allow us to qualify as a REIT under Sections 856-860 of the Internal Revenue Code of 1986, as amended (the “Code”). As a REIT, we generally are not subject to federal corporate income taxes on amounts that we distribute to our stockholders (except income from any foreclosure property), provided that, on an annual basis, we distribute at least 90% of our REIT taxable income (excluding net capital gains) to our stockholders and meet certain other conditions. As such, in general, as long as we qualify as a REIT, no provision for federal income taxes will be necessary, except for taxes on undistributed REIT taxable income, taxes from foreclosure property, and taxes on income generated by a TRS (such as Land Advisers), if any. During the three months ended March 31, 2025, we began directly operating two properties (consisting of four farms) that qualify as foreclosure properties under the Code following tenant lease defaults and are therefore subject to corporate income taxes on any income generated. We account for any income taxes in accordance with the provisions of Accounting Standards Codification (“ASC”) 740, “Income Taxes” (“ASC 740”), using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based on differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases (including for operating loss, capital loss, and tax credit carryforwards) and are calculated using the enacted tax rates and laws expected to be in effect when such amounts are realized or settled. In addition, we will establish valuation allowances for tax benefits when we believe it is more-likely-than-not (defined as a likelihood of more than 50%) that such assets will not be realized. Pretax (loss) income from foreclosure properties during the three and six months ended June 30, 2026, was approximately $( 529,000 ) and $ 247,000 , respectively. Pretax loss from foreclosure properties during each of the three and six months ended June 30, 2025, was approximately $ 1.6 million. We currently expect these properties to generate an overall tax loss for the year ending December 31, 2026; accordingly, we did no t record any federal or state income tax expense (current or deferred) during the three or six months ended June 30, 2026 or 2025. Segment Reporting Our current business strategy includes one operating segment: Real Estate Rental Operations. We generate revenues, earnings, net income, and cash flows through our single segment by collecting rents from our tenants through operating leases, including reimbursements for certain of our property operating costs. We expect to generate earnings growth by increasing rents, maintaining high occupancy rates, and controlling expenses. The primary driver of our revenue growth will be the renewal of existing leases at current market rental rates upon expiration and the acquisition of new properties. We further believe our active portfolio management, combined with the skills of our asset management team, will allow us to maximize net income across our portfolio. Our Chief Operating Decision Maker (“CODM”) is our President and CEO. Our CODM uses net income to make decisions about allocating resources to individual properties and assessing performance. The CODM will sometimes reference other metrics, including net operating income; however, as net income is the measure most consistent with the amounts disclosed in the consolidated financial statements, only net income is disclosed. Recently-Issued Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” (“ASU 2024-03”). ASU 2024-03 requires public entities to disaggregate specific types of expenses, including disclosures for depreciation, intangible asset amortization, and selling expenses. The pronouncement is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Prospective application is required, and retrospective application or early adoption is permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. NOTE 3. REAL ESTATE AND INTANGIBLE ASSETS All of our properties are wholly-owned on a fee-simple basis, except where noted. The following table summarizes certain information about the 144 farms we owned as of June 30, 2026 (dollars in thousands, except for footnotes): 9 Location No. of Farms Total Acres Farm Acres Acre-feet of Water Assets Net Cost Basis (1) Encumbrances (2) California (3)(4)(5) 63 34,845 32,321 55,649 $ 799,641 $ 366,314 Florida (6) 18 10,412 8,635 0 111,262 45,122 Washington 6 2,520 2,004 0 49,722 14,136 Arizona (7) 6 6,320 5,333 0 43,340 12,608 Colorado 10 31,448 24,513 0 37,218 8,691 Oregon (8) 6 898 736 0 28,659 10,194 Nebraska 7 5,223 4,949 0 19,714 10,156 Michigan 12 1,245 778 0 14,263 8,348 Texas 1 3,667 2,219 0 9,267 2,852 Maryland 6 987 863 0 7,777 4,018 South Carolina 3 597 447 0 3,317 2,025 Georgia 2 230 175 0 2,191 1,529 New Jersey 3 116 101 0 1,995 1,128 Delaware 1 180 140 0 1,256 645 144 98,688 83,214 55,649 $ 1,129,622 $ 487,766 (1) Consists of the initial acquisition price (including the costs allocated to both tangible and intangible assets acquired and liabilities assumed), plus subsequent improvements and other capitalized costs associated with the properties, and adjusted for accumulated depreciation and amortization. Specifically, includes Total real estate, net and Lease intangibles, net; plus long-term water assets and related acquisition costs included in Investments in water assets; net above-market lease values, net lease incentives, and net investments in special-purpose LLCs included in Other assets, net; and less net below-market lease values and other deferred revenue included in Other liabilities, net; each as shown on the accompanying Condensed Consolidated Balance Sheets. (2) Excludes approximately $ 1.7 million of debt issuance costs related to notes and bonds payable, included in Notes and bonds payable, net on the accompanying Condensed Consolidated Balance Sheets. (3) Includes ownership in a special-purpose LLC that owns a pipeline conveying water to certain of our properties. As of June 30, 2026, this investment had a net carrying value of approximately $ 917,000 and is included within Other assets, net on the accompanying Condensed Consolidated Balance Sheets. (4) Includes eight acres in which we own a leasehold interest via a ground lease with a private individual that expires in December 2040 and five acres in which we own a leasehold interest via a ground sublease with a California municipality that expires in December 2041. As of June 30, 2026, these two ground leases had a net cost basis of approximately $ 594,000 and are included in Lease intangibles, net on the accompanying Condensed Consolidated Balance Sheets. (5) Includes 48,309 acre-feet of water stored with Semitropic Water Storage District, located in Kern County, California; 7,264 surplus water credits in certain of our accounts with Westlands Water District, located in Fresno County, California; and 76 acre-feet of water stored with Belridge Water Storage District, located in Kern County, California. See Note 5, “ Investments in Water Assets, ” for additional information. (6) Includes two farms that were sold subsequent to June 30, 2026. See Note 13, “ Subsequent Events ” for additional information on the sale of these farms. (7) Includes two farms consisting of 1,368 total acres and 1,221 farm acres in which we own leasehold interests via two ground leases with the State of Arizona that expire in February 2032 and February 2035, respectively. As of June 30, 2026, the aggregate net cost basis of these ground leases was zero . (8) Includes ownership in a special-purpose LLC that owns certain irrigation infrastructure that provides water to two of our farms. As of June 30, 2026, this investment had a net carrying value of approximately $ 4.8 million and is included within Other assets, net on the accompanying Condensed Consolidated Balance Sheets. Real Estate The following table sets forth the components of our investments in tangible real estate assets as of June 30, 2026, and December 31, 2025 (dollars in thousands): June 30, 2026 December 31, 2025 Real estate: Land and land improvements $ 712,543 $ 717,407 Permanent plantings 343,253 345,508 Irrigation and drainage systems 167,501 170,294 Farm-related facilities 48,841 48,789 Other site improvements 14,933 15,015 Real estate, at cost 1,287,071 1,297,013 Accumulated depreciation ( 214,738 ) ( 198,261 ) Total real estate, net $ 1,072,333 $ 1,098,752 Real estate depreciation expense on these tangible assets was approximately $ 7.8 million and $ 18.1 million for the three and six months ended June 30, 2026, respectively, and approximately $ 8.3 million and $ 16.5 million for the three and six months ended June 30, 2025, respectively. Intangible Assets and Liabilities 10 The following table summarizes the carrying values of certain lease intangible assets and the related accumulated amortization as of June 30, 2026, and December 31, 2025 (dollars in thousands): June 30, 2026 December 31, 2025 Lease intangibles: Leasehold interest – land $ 797 $ 797 In-place lease values 1,744 1,744 Leasing costs 2,139 2,139 Other (1) 117 117 Lease intangibles, at cost 4,797 4,797 Accumulated amortization ( 1,863 ) ( 1,668 ) Lease intangibles, net $ 2,934 $ 3,129 (1) Other includes tenant relationships and acquisition-related costs allocated to miscellaneous lease intangibles. Total amortization expense related to these lease intangible assets was approximately $ 97,000 and $ 195,000 for the three and six months ended June 30, 2026, respectively, and approximately $ 106,000 and $ 254,000 for the three and six months ended June 30, 2025, respectively. The following table summarizes the carrying values of certain lease intangible assets or liabilities (excluding those related to real estate held for sale) included in Other assets, net or Other liabilities, net, respectively, on the accompanying Condensed Consolidated Balance Sheets and the related accumulated amortization or accretion, respectively, as of June 30, 2026, and December 31, 2025 (dollars in thousands): June 30, 2026 December 31, 2025 Intangible Asset or Liability Deferred Rent Asset (Liability) Accumulated (Amortization) Accretion Deferred Rent Asset (Liability) Accumulated (Amortization) Accretion Above-market lease values (1) $ 695 $ ( 277 ) $ 695 $ ( 274 ) Below-market lease values (2) ( 1,371 ) 764 ( 1,371 ) 697 Lease incentives and other deferred revenue, net (3) 13,529 ( 5,026 ) 13,365 ( 1,012 ) $ 12,853 $ ( 4,539 ) $ 12,689 $ ( 589 ) (1) Included as part of Other assets, net on the accompanying Condensed Consolidated Balance Sheets, and the related amortization is recorded as a reduction of Lease revenue, net on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. (2) Included as a part of Other liabilities, net on the accompanying Condensed Consolidated Balance Sheets, and the related accretion is recorded as an increase to Lease revenue, net on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. (3) Lease incentives are included as part of Other assets, net on the accompanying Condensed Consolidated Balance Sheets, and the related amortization is recorded as a reduction of Lease revenue, net on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. Other deferred revenue is primarily attributable to tenant-funded improvements and is included as a part of Other liabilities, net on the accompanying Condensed Consolidated Balance Sheets, and the related accretion is recorded as an increase to Lease revenue, net on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. Total amortization related to above-market lease values was approximately $ 1,000 and $ 3,000 for the three and six months ended June 30, 2026, respectively, and approximately $ 19,000 and $ 38,000 for the three and six months ended June 30, 2025, respectively. Total accretion related to below-market lease values was approximately $ 34,000 and $ 68,000 for the three and six months ended June 30, 2026, respectively, and approximately $ 34,000 and $ 68,000 for the three and six months ended June 30, 2025, respectively. Total net amortization related to lease incentives and other deferred revenue, net was approximately $ 2.0 million and $ 4.0 million for the three and six months ended June 30, 2026, respectively, and approximately $ 2.9 million and $ 6.1 million for the three and six months ended June 30, 2025, respectively. Acquisitions We did not acquire any new farms during the three or six months ended June 30, 2026 or 2025. Property Sales 2026 Property Sales We did not complete any farm sales during the three or six months ended June 30, 2026. 2025 Property Sales In January 2025, we completed the sale of five farms in Florida totaling 5,630 gross acres for an aggregate sales price of approximately $ 52.5 million. Including closing costs, we recognized a net gain on the sale of approximately $ 14.1 million. 11 In February 2025, we completed the sale of two farms in Nebraska totaling 2,559 gross acres for an aggregate sales price of $ 12.0 million. Includ ing closing costs, we recognized an aggregate net gain on these sales of approximately $ 1.6 million. Real Estate Held for Sale As of June 30, 2026 , we had one property ( consisting of two farms) located in St. Lucie County, Florida, classified as held for sale. As of June 30, 2026, t his property had a net cost basis of approximately $ 3.1 million . We did no t have any properties classified as held for sale as of December 31, 2025. See Note 13, “ Subsequent Events ,” for information on the sale of this property. Investments in Unconsolidated Entities In connection with the acquisition of certain farmland located in Fresno County, California, we also acquired partial ownership of a related limited liability company (the “Fresno LLC”), the sole purpose of which is to own and maintain a pipeline conveying water to our and other neighboring properties. In addition, in connection with the acquisition of certain farmland located in Umatilla County, Oregon, we also acquired partial ownership of a related limited liability company (the “Umatilla LLC”), the sole purpose of which is to own and maintain an irrigation system providing water to our and other neighboring properties. As of June 30, 2026, our aggregate ownership interest in the Fresno LLC and the Umatilla LLC was 50.0 % and 20.5 %, respectively. As our investments in the Fresno LLC and Umatilla LLC are both deemed to constitute “significant influence,” we have accounted for these investments under the equity method. W e recorded an agg regate gain (loss) of approximately $ 73,000 and $( 117,000 ) during the three and six months ended June 30, 2026, respectively, and approximately $( 51,000 ) and $( 186,000 ) during the three and six months ended June 30, 2025, respectively (included in Loss from investments in unconsolidated entities on our Condensed Consolidated Statements of Operations and Comprehensive Income), which represents our pro-rata share of the aggregate loss recognized by the Fresno LLC and Umatilla LLC. As of each of June 30, 2026, and December 31, 2025, our combined ownership interest in the Fresno LLC and the Umatilla LLC had an aggregate carrying value of approximately $ 5.7 million, and is included within Other assets, net on the accompanying Condensed Consolidated Balance Sheets. Portfolio Concentrations Credit Risk As of June 30, 2026, our farms were leased to various different, unrelated third-party tenants, with certain tenants leasing more than one farm. One unrelated third-party tenant (“Tenant A”) leases six of our farms under leases expiring in 2030 or later. During the six months ended June 30, 2026, aggregate lease revenue attributable to Tenant A accounted for approximately $ 3.7 million ( 13.8 %) of our total lease revenue. If Tenant A fails to make rental payments or elects to terminate its leases prior to their expirations (and we cannot re-lease the farms on satisfactory terms), there could be a material adverse effect on our financial performance. No other individual tenant represented greater than 10% of the total lease revenue recorded during the six months ended June 30, 2026. Geographic Risk Farms located in California and Florida accounted for approximately $ 18.7 million ( 69.0 %) and $ 4.5 million ( 16.6 %), respectively, of the total lease revenue recorded during the six months ended June 30, 2026. We seek to continue to further diversify geographically, as may be desirable or feasible. If an unexpected natural disaster (such as an earthquake, wildfire, flood, or hurricane) occurs or climate change impacts the regions where our properties are located, there could be a material adverse effect on our financial performance and ability to continue our operations. To date, none of our farms have been materially impacted by natural disasters. See “ —Southeastern U.S. Hurricanes ” below for a discussion of damage to certain farms caused by the hurricanes that occurred in the Southeastern U.S. in September and October 2024. Besides California and Florida, no other single state accounted for more than 10.0% of our lease revenue recorded during the six months ended June 30, 2026. Southeastern U.S. Hurricanes As a result of Hurricane Helene in September 2024, one of our farms in Georgia suffered damage to certain permanent plantings on the farm. At the time, we estimated the carrying value of such plantings to be approximately $ 275,000 , and during the three months ended September 30, 2024, we wrote down the carrying value of these plantings and also recorded a corresponding property and casualty loss. During the three months ended March 31, 2025, after further inspection of the property, it was determined that the damage was not as extensive as originally estimated, and we recorded an adjustment to our original estimate, which is included within Property and casualty (loss) recovery, net on our Condensed Consolidated 12 Statements of Operations and Comprehensive Income. Certain of our other farms in the region suffered minor damage as a result of Hurricanes Helene and Milton, but none of our other farms were materially impacted. Impairment We evaluate our entire portfolio each quarter for any indicators of impairment and perform impairment analyses on those properties for which indicators of impairment have been identified. If the analysis indicates that a property’s carrying value may not be recoverable, an impairment loss is recognized equal to the amount by which the carrying value exceeds the property’s fair value. 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). The impairment charges were recorded to reduce the carrying values of these properties to their respective agreed-upon purchase prices pursuant to the related purchase and sale agreements . We did no t record any impairment charges during the three and six months ended June 30, 2025 . NOTE 4. CROP INVENTORY AND CROP SALES Crop Inventory Through certain of our wholly-owned subsidiaries and 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 almond and pistachio orchards, and (ii) a 165 -acre farm in Umatilla County, Oregon, including 135 acres of wine grape vineyards. As of June 30, 2026, and December 31, 2025, we had incurred approximately $ 6.5 million and $ 1.7 million, respectively, of growing costs related to crops to be harvested during 2026. These costs primarily relate to irrigation, pest management, fertilization, and labor and have been capitalized as crop inventory. Crop inventory is stated at the lower of cost or net realizable value. As the related crops are harvested and sold later in 2026 and throughout 2027, the associated costs will be recognized as cost of sales. We expect to incur additional costs related to harvesting and post-harvest handling, which will likewise be expensed to the cost of sales at the time of sale. Crop Sales 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): Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Crop sales (1)(2) $ 333 $ 2,082 Cost of sales (1)(3) ( 256 ) ( 414 ) (1) Reflected as a line item on our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. (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. (3) Reflective of a change in estimate, as the actual water and utility usage during the 2025 crop year was lower than previously estimated. In addition, during the six months ended June 30, 2026, we completed the harvest of the remaining orange crop on a farm in St. Lucie County, Florida, following the early termination of the prior tenant’s lease. The results of these operations are included in the table above. We did not recognize any crop sales revenue or related costs during the three or six months ended June 30, 2025. NOTE 5. INVESTMENTS IN WATER ASSETS The following table sets forth the components of our investments in water assets as of June 30, 2026, and December 31, 2025 (dollars in thousands; see the description that follows for certain defined terms and additional information on each component): 13 As of June 30, 2026 As of December 31, 2025 Acre-feet Cost Basis Acre-feet Cost Basis SWSD banked water 48,309 $ 35,537 48,309 $ 35,537 WWD groundwater credits – 50/50 Program 2,660 746 2,660 746 WWD groundwater credits – Other agreements 4,604 892 4,563 884 BWSD banked water 76 18 — — Long-term water assets 55,649 37,193 55,532 37,167 Deferred water assets (1) (1) 4,520 (1) 4,382 Investments in water assets (2) 55,649 $ 41,713 55,532 $ 41,549 (1) The amount of water credits to be granted under these agreements is not yet known; see “ —Deferred Water Assets ” below for additional information. (2) As shown on the accompanying Condensed Consolidated Balance Sheets. SWSD Banked Water In connection with the acquisition of certain farmland located in Kern County, California, in 2021, we also acquired three contracts providing the right to purchase an aggregate of 45,000 acre-feet of banked water held by Semitropic Water Storage District (“SWSD”), a water storage district located in Kern County, California, at a fixed price. At the time of acquisition, we allocated approximately $ 31.3 million of aggregate value to these contracts. Subsequently in 2021, we executed all three contracts and purchased the full 45,000 acre-feet of banked water for an additional aggregate cost of approximately $ 2.8 million. Since the initial acquisition, additional contracts to purchase banked water held by SWSD were conveyed to us by one of our tenants as partial consideration for rent payments owed. The following table summarizes the total acre-feet of banked water obtained through the exercise of these contracts (dollars in thousands): Period Acquired Acre-feet of Banked Water Available to Purchase per Contract Acre-feet of Banked Water Purchased (1) Value Attributed to Contract (2) Cost to Exercise Contract Total Carrying Value of Banked Water Purchased Fourth quarter of 2023 1,003 1,003 $ 401 $ 62 $ 463 First quarter of 2024 2,306 2,306 923 141 1,064 Total 3,309 3,309 $ 1,324 $ 203 $ 1,527 (1) All contracts to purchase additional banked water were exercised in the same quarter in which the respective contract was conveyed to us. (2) Represents non-cash income received during the respective periods. The straight-line impact of these receipts is included within Lease revenue, net on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. All banked water acquired was recognized at cost as a long-term water asset, including the subsequent cost to exercise the contracts and any administrative fees necessary to transfer the water to our banked water account. WWD Groundwater Credits 50/50 Program From May 2023 through March 2024, we participated in a groundwater recharge program established by Westlands Water District (“WWD”), a water district located in Fresno County, California (the “50/50 Program”). Under the 50/50 Program, WWD funded the delivery of surplus surface water to properties owned by participating landowners with district-approved groundwater recharge facilities (also known as “water banks”). Participating landowners were entitled to retain 50 % of the net groundwater credits generated from recharge activities under the program (after accounting for required leave-behind volumes and evaporative losses), with the remaining 50 % retained by WWD for aquifer recharge. WWD terminated the program for the 2024 water year effective March 5, 2024, and has not renewed it. As a result of the 50/50 Program, we recognized 2,660 acre-feet of water credits as a long-term water asset, representing 50 % of the total net water credits generated and confirmed by WWD under the program. Other Agreements Since 2023, we have entered into various agreements with third parties, including local water districts and private parties, to (i) purchase water directly, (ii) acquire portions of other water districts’ surface water allocations in future years in which allocations are granted, or (iii) store surface water on behalf of others in our groundwater recharge facilities in exchange for a portion of the net groundwater credits generated and recognized by the respective water district. To date, water delivered under these agreements have been stored in our water bank located within the WWD service area, and the resulting water credits have been recognized as a long-term water asset at cost. We recognized revenue related to certain of these agreements of approximately $ 0 and $ 8,000 during the three and six months ended June 30, 2026, respectively, and $ 0 during each of the three and six months ended June 30, 2025. These amounts are included within Other operating revenue on 14 our Condensed Consolidated Statements of Operations and Comprehensive Income and represent the estimated fair value of water credits received in exchange for storing water on behalf of third parties during the respective periods. BWSD Banked Water During the six months ended June 30, 2026, we entered into an agreement to purchase 76 acre-feet of banked water held by Belridge Water Storage District (“BWSD”), a water storage district located in Kern County, California, for approximately $ 18,000 . This banked water was recognized at cost as a long-term water asset. Deferred Water Assets We have also invested in certain other programs and agreements that are expected to result in additional groundwater credits in the future; however, the amount and timing of any such credits are currently unknown and are dependent upon, and subject to, recognition by the applicable water districts in their sole discretion. The related costs are recorded in a deferred asset account (included within Investments in water assets on our Condensed Consolidated Balance Sheets) until the related net water credits become estimable and are recognized by the applicable water district, at which time such costs will be reclassified as long-term water assets (also within Investments in water assets on our Condensed Consolidated Balance Sheets). Impairment We evaluate our entire portfolio of water assets each quarter for any impairment indicators and perform an impairment analysis on those select water assets that have an indication of impairment. If this analysis indicates that the carrying value may not be recoverable, an impairment loss is recorded in earnings equal to the amount by which the carrying value exceeds the fair value of the asset. As of June 30, 2026, and December 31, 2025 , we concluded that no water assets were impaired. NOTE 6. BORROWINGS Our borrowings as of June 30, 2026, and December 31, 2025, are summarized below (dollars in thousands): Carrying Value as of As of June 30, 2026 June 30, 2026 December 31, 2025 Stated Interest Rates (1) (Range; Wtd Avg) Maturity Dates (Range; Wtd Avg) Variable-rate revolving lines of credit $ 21,100 $ 200 5.68 % 12/15/2033 Notes and bonds payable: Fixed-rate notes payable $ 444,496 $ 453,040 2.45 %– 6.97 %; 3.74 % 10/17/2026–7/1/2051; Nov 2032 Fixed-rate bonds payable 22,170 22,312 3.13 %– 4.57 %; 3.57 % 3/13/2028–12/30/2030; Mar 2029 Total notes and bonds payable 466,666 475,352 Debt issuance costs – notes and bonds payable ( 1,732 ) ( 1,917 ) N/A N/A Notes and bonds payable, net $ 464,934 $ 473,435 Total borrowings, net $ 486,034 $ 473,635 (1) Where applicable, stated interest rates are before interest patronage (as described below). As of June 30, 2026, the above borrowings were collateralized by certain of our farms with an aggregate net book value of approximately $ 959.4 million. The weighted-average stated interest rate charged on the above borrowings (excluding the impact of debt issuance costs and before any interest patronage, or refunded interest) was 3.83 % and 3.82 % for the three and six months ended June 30, 2026, respectively, as compared to 3.81 % and 3.80 % for the three and six months ended June 30, 2025, respectively. In addition, 20 25 interest patronage from our Farm Credit Notes Payable (as defined below) resulte d in a 21.0 % reduction (approximately 95 basis points) to the stated interest rates on such borrowings. See below under “ —Farm Credit Notes Payable—Interest Patronage” for further discussion on interest patronage. As of June 30, 2026, we were in compliance with all covenants applicable to the above borrowings. MetLife Facility As amended, our credit facility with Metropolitan Life Insurance Company (“MetLife”) consists of $ 75.0 million of revolving equity lines of credit (the “MetLife Lines of Credit”), a $ 75.0 million long-term note payable (the “2020 MetLife Term Note”), and a $ 100.0 million long-term note payable (the “2022 MetLife Term Note,” and together with the MetLife Lines of Credit and the 2020 MetLife Term Note, the “MetLife Facility”). 15 The following table summarizes the pertinent terms of the MetLife Facility as of June 30, 2026 (dollars in thousands, except for footnotes): Issuance Aggregate Commitment Maturity Dates Principal Outstanding Interest Rate Terms Undrawn Commitment (1) MetLife Lines of Credit $ 75,000 12/15/2033 $ 21,100 3M Term SOFR + 2.00 % (2) $ 53,900 2020 MetLife Term Note 75,000 (3) 1/5/2030 34,996 2.75 %, fixed through 1/4/2030 (4) 40,004 2022 MetLife Term Note 100,000 (3) 1/5/2032 — (4) 100,000 Totals $ 250,000 $ 56,096 $ 193,904 (1) Based on the properties that were pledged as collateral under the MetLife Facility, as of June 30, 2026, the maximum additional amount we could draw under the facility was approximately $ 68.4 million. (2) The interest rate on the MetLife Lines of Credit is subject to a minimum annualized rate of 2.50 %, plus an unused fee ranging from 0.10 % to 0.20 % on undrawn amounts (based on the balance drawn under each line of credit). (3) If the aggregate commitments under the 2020 MetLife Term Note and the 2022 MetLife Term Note are not fully utilized by December 31, 2026 , MetLife has no obligation to disburse the additional funds under either note. (4) Interest rates on future disbursements under each of the 2020 MetLife Term Note and the 2022 MetLife Term Note will be based on prevailing market rates at the time of such disbursements. In addition, through December 31, 2026, the 2020 MetLife Term Note and the 2022 MetLife Term Note are each subject to an unused fee ranging from 0.10 % to 0.20 % on undrawn amounts (based on the balance drawn under the respective note). Farmer Mac Facility Through certain subsidiaries of our Operating Partnership, we have entered into a bond purchase agreement (the “Bond Purchase Agreement”) with Federal Agricultural Mortgage Corporation (“Farmer Mac”) and Farmer Mac Mortgage Securities Corporation for a secured note purchase facility (the “Farmer Mac Facility”). As amended from time to time, the Farmer Mac Facility currently provides for bond issuances up to an aggregate amount of $ 225.0 million. Pursuant to the Bond Purchase Agreement, as further amended in June 2023, we may issue new bonds under the Farmer Mac Facility through December 31, 2026, and the final maturity date for new bonds issued under the facility will be the date that is ten years from the applicable issuance date. We did not issue any new bonds under the Farmer Mac Facility during the six months ended June 30, 2026. As of June 30, 2026 , we had approximately $ 22.2 million of bonds issued and outstanding under the Farmer Mac Facility. Farm Credit Farm Credit Notes Payable From time to time since September 2014, through certain subsidiaries of our Operating Partnership, we have entered into various loan agreements (collectively, the “Farm Credit Notes Payable”) with various different Farm Credit associations (collectively, “Farm Credit”). We did not enter into any new mortgage loan agreements with Farm Credit during the six months ended June 30, 2026. Farm Credit Facility On April 27, 2026, we entered into a new revolving line of credit with Farm Credit of Central Florida, ACA (“Farm Credit CFL”) that provides for borrowings of up to $ 37.0 million (the “Farm Credit Facility”). The Farm Credit Facility matures on April 1, 2030, and borrowings thereunder bear interest at a variable rate equal to the prime rate less 0.50 %, prior to the effect of any interest patronage. The Farm Credit Facility also includes an unused commitment fee of 0.15 % per annum on the undrawn portion. As of June 30, 2026 , we had no amounts outstanding under the Farm Credit Facility, and, based on the level of collateral pledged, the full $ 37.0 million remained available to us. Interest Patronage Interest patronage, or refunded interest, on our borrowings from Farm Credit is generally recorded upon receipt and included in Other income in our Condensed Consolidated Statements of Operations and Comprehensive Income. Receipt of interest patronage typically occurs in the first half of the calendar year following the calendar year in which the respective interest expense is accrued. The following table provides information about interest patronage recorded during the six months ended June 30, 2026 and 2025 related to interest accrued on the Farm Credit Notes Payable during 2025 and 2024, respectively (dollars in thousands): Amount Received Reduction in Interest Rates (basis points) (1) 2025 Interest Patronage (2) $ 1,403 95 2024 Interest Patronage (3) 1,819 101 (1) Presented as a reduction in the stated interest rates on such borrowings, shown on a weighted-average basis. (2) Relates to interest accrued on the Farm Credit Notes Payable during calendar year 2025. The full amount was recorded in the first quarter of 2026. (3) Relates to interest accrued on the Farm Credit Notes Payable during calendar year 2024. Of this amount, approximately $0.1 million was recorded in the third quarter of 2024, and approximately $1.7 million was recorded in the first quarter of 2025. 16 Interest patronage is paid at Farm Credit’s discretio n, and we are therefore unable to estimate the amount of interest patronage to be received, if any, related to interest accrued during 2026 on the Farm Credit Notes Payable. As of June 30, 2026, and December 31, 2025, the aggregate principal balance of the Farm Credit Notes Payable that were eligible for interest patronage was approximately $ 142.3 million and $ 144.9 million, respectively. Debt Service – Aggregate Maturities Scheduled principal payments of our aggregate notes and bonds payable as of June 30, 2026, for the succeeding years are as follows (dollars in thousands): Period Scheduled Principal Payments For the remaining six months ending December 31: 2026 $ 11,293 For the fiscal years ending December 31: 2027 50,175 2028 76,526 2029 151,944 2030 93,585 Thereafter 83,143 (1) $ 466,666 (1) Subsequent to June 30, 2026, we repaid a $ 2.8 million loan that was scheduled to mature in 2047. Fair Value ASC 820, “Fair Value Measurement (Subtopic 820)” (“ASC 820”), provides a definition of fair value that focuses on the exchange (exit) price of an asset or liability in the principal, or most advantageous market, and prioritizes the use of market-based inputs to the valuation. ASC 820-10 establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: • Level 1 — inputs that are based upon quoted prices (unadjusted) for identical assets or liabilities in active markets; • Level 2 — inputs are based upon quoted prices for similar assets or liabilities in active or inactive markets or model-based valuation techniques, for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 — inputs are generally unobservable and significant to the fair value measurement. These unobservable inputs are generally supported by little or no market activity and are based upon management’s estimates of assumptions that market participants would use in pricing the asset or liability. As of June 30, 2026, the aggregate fair value of our notes and bonds payable was approximately $ 449.3 million, as compared to an aggregate carrying value (excluding unamortized related debt issuance costs) of approximately $ 466.7 million. The fair value of our notes and bonds payable is valued using Level 3 inputs under the hierarchy established by ASC 820-10 and is calculated based on a discounted cash flow analysis, using discount rates based on management’s estimates of market interest rates on debt with comparable terms. Further, due to the revolving nature and variable interest rates applicable to the MetLife Lines of Credit, their aggregate fair value as of June 30, 2026, is deemed to approximate their aggregate carrying value of $ 21.1 million. Interest Rate Swap Agreements In order to hedge our exposure to variable interest rates, we have entered into various interest rate swap agreements in connection with certain of our mortgage financings. In accordance with these swap agreements, we will pay our counterparty a fixed interest rate on a quarterly basis and receive payments from our counterparty equal to the respective stipulated floating rates. We have adopted the fair value measurement provision for these financial instruments, and the aggregate fair value of our interest rate swap agreements is recorded in Other assets, net or Other liabilities, net, as appropriate, on our accompanying Condensed Consolidated Balance Sheets. Generally, in the absence of observable market data, we will estimate the fair value of our interest rate swaps using estimates of certain data points, including estimated remaining life, counterparty credit risk, current market yield, and interest rate spreads of similar securities as of the measurement date. In accordance with the Financial Accounting Standards Board’s fair value measurement guidance, we have made an accounting policy election to measure the credit risk of our derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. As of June 30, 2026, our interest rate swaps were valued using Level 2 inputs. In addition, we have designated our interest rate swaps as cash flow hedges. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is initially recorded in Accumulated other comprehensive income on the accompanying Condensed Consolidated Balance Sheets and subsequently reclassified into interest expense in the 17 same period(s) affected by the hedged transaction. During the next 12 months, we estimate that an additional $ 1.5 million will be reclassified as a reduction to interest expense. We had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk as of June 30, 2026, and December 31, 2025 (dollars in thousands): Period Number of Instruments Aggregate Notional Amount As of June 30, 2026 4 $ 62,213 As of December 31, 2025 4 63,904 The following table presents the fair value of our interest rate swaps as well as their classification on the Condensed Consolidated Balance Sheets as of June 30, 2026, and December 31, 2025 (dollars in thousands): Derivative Asset (Liability) Fair Value Derivative Type Balance Sheet Location June 30, 2026 December 31, 2025 Derivatives Designated as Hedging Instruments: Interest rate swaps Other assets, net $ 5,323 $ 4,896 Total $ 5,323 $ 4,896 The following table presents the amount of income (los s) recognized in comprehensive (loss) income within our condensed consolidated financial statements for the three and six months ended June 30, 2026 and 2025 (dollars in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Derivative in cash flow hedging relationship: Interest rate swaps $ 349 $ ( 856 ) $ 427 $ ( 2,174 ) Total $ 349 $ ( 856 ) $ 427 $ ( 2,174 ) Credit-risk-related Contingent Features We have agreements with each of our derivative counterparties that contain a provision where if we default on any of our indebtedness, then we could also be declared in default on our derivative obligations. As of June 30, 2026, we did not have any derivatives in a net liability position, nor have we posted any collateral related to these agreements. NOTE 7. CUMULATIVE TERM PREFERRED STOCK In January 2021, we completed a public offering of 5.00 % Series D Cumulative Term Preferred Stock, par value $ 0.001 per share (the “Series D Term Preferred Stock”), at a public offering price of $ 25.00 per share. As a result of this offering (including the underwriters’ exercise of their option to purchase additional shares to cover over-allotments), we issued a total of 2,415,000 shares of the Series D Term Preferred Stock for gross proceeds of approximately $ 60.4 million and net proceeds, after deducting underwriting discounts and offering expenses borne by us, of approximately $ 58.3 million. On January 30, 2026, we redeemed all of our outstanding shares of 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. Our Series D Term Preferred Stock was traded under the ticker symbol “LANDM” on Nasdaq until it was delisted on the date we redeemed all outstanding shares. NOTE 8. RELATED-PARTY TRANSACTIONS Our Adviser and Administrator We are externally managed pursuant to contractual arrangements with our Adviser and our Administrator, which collectively employ all of our personnel and pay their salaries, benefits, and general expenses directly. Both our Adviser and Administrator are affiliates of ours, as their parent company is owned and controlled by David Gladstone, our chairman, chief executive officer, and president. Mr. Gladstone also serves as a director and executive officer of each of our Adviser and Administrator. In addition, Michael LiCalsi, our chief administrative officer, co-general counsel, and co-secretary, also serves in the same roles for our Adviser and Administrator (in addition to serving as our Administrator’s president). Erich Hellmold, our co-general counsel and co-secretary, also serves in the same roles for our Adviser and Administrator. John Sateri, our chief investment officer, also serves in the same role for our Adviser. We have entered into an investment advisory agreement with our Adviser (the “Advisory Agreement”) and an administration agreement with our Administrator (the “Administration Agreement”). Both the Advisory Agreement and the Administration Agreement were approved unanimously by our Board of Directors, including our independent directors. A summary of the compensation terms for the Advisory Agreement and a summary of the Administration Agreement is below. 18 Advisory Agreement Pursuant to the Advisory Agreement, our Adviser is compensated in the form of a base management fee and, each as applicable, an incentive fee, a capital gains fee, and a termination fee. Our Adviser does not charge acquisition or disposition fees when we acquire or dispose of properties, as is common in other externally-managed REITs. Each of the base management, incentive, capital gains, and termination fees is described below. Base Management Fee Pursuant to the Advisory Agreement, a base management fee is paid quarterly and is calculated at an annual rate of 0.60 % ( 0.15 % per quarter) of the prior calendar quarter’s “Gross Tangible Real Estate,” defined as the gross cost of tangible real estate owned by us (including land and land improvements, permanent plantings, irrigation and drainage systems, farm-related facilities, and other tangible site improvements), prior to any accumulated depreciation, and as shown on our balance sheet or the notes thereto for the applicable quarter. Incentive Fee Pursuant to the Advisory Agreement, an incentive fee is calculated and payable quarterly in arrears if the Pre-Incentive Fee FFO (defined below) for a particular quarter exceeds a hurdle rate of 1.75 % ( 7.0 % annualized) of the prior calendar quarter’s Total Adjusted Common Equity. For purposes of this calculation, Pre-Incentive Fee FFO is defined in the Advisory Agreement as FFO (also as defined in the Advisory Agreement) accrued by the Company during the current calendar quarter (prior to any incentive fee calculation for the current calendar quarter), less any dividends declared on preferred stock securities that are not treated as a liability for GAAP purposes. In addition, Total Adjusted Common Equity is defined as common stockholders’ equity plus non-controlling common interests in the Operating Partnership, if any (each as reported on our balance sheet), adjusted to exclude unrealized gains and losses and certain other one-time events and non-cash items. Our Adviser receives: (i) no incentive Fee in any calendar quarter in which the Pre-Incentive Fee FFO does not exceed the hurdle rate; (ii) 100 % of the Pre-Incentive Fee FFO with respect to that portion of such Pre-Incentive Fee FFO, if any, that exceeds the hurdle rate but is less than 2.1875 % in any calendar quarter ( 8.75 % annualized); and (iii) 20 % of the amount of the Pre-Incentive Fee FFO, if any, that exceeds 2.1875 % in any calendar quarter ( 8.75 % annualized). Capital Gains Fee Pursuant to the Advisory Agreement, a capital gains fee is calculated and payable in arrears at the end of each fiscal year (or upon termination of the Advisory Agreement). The capital gains fee shall equal: (i) 15 % of the cumulative aggregate realized capital gains minus the cumulative aggregate realized capital losses, minus (ii) any aggregate capital gains fees paid in prior periods. For purposes of this calculation, realized capital gains and losses will be calculated as (x) the sales price of the property, minus (y) any costs to sell the property and the then-current gross value of the property (which includes the property’s original acquisition price plus any subsequent, non-reimbursed capital improvements). At the end of each fiscal year, if this figure is negative, no capital gains fee shall be paid. Termination Fee Pursuant to the Advisory Agreement, in the event of our termination of the agreement with our Adviser for any reason (with 120 days’ prior written notice and the vote of at least two-thirds of our independent directors), a termination fee would be payable to the Adviser equal to three times the average annual base management fee and incentive fee earned by the Adviser during the 24-month period prior to such termination. Administration Agreement Pursuant to the Administration Agreement, we pay for our allocable portion of the Administrator’s expenses incurred while performing its obligations to us, including, but not limited to, rent and the salaries and benefits expenses of our Administrator’s employees, including our chief financial officer, chief valuation officer, treasurer, chief compliance officer, chief administrative officer, chief investment officer, co-general counsels and co-secretaries, and their respective staffs. As approved by our Board of Directors, our allocable portion of the Administrator’s expenses is generally derived by multiplying our Administrator’s total expenses by the approximate percentage of time the Administrator’s employees perform services for us in relation to their time spent performing services for all companies serviced by our Administrator under similar contractual agreements. Gladstone Securities We have entered into an agreement with Gladstone Securities, LLC (“Gladstone Securities”), for it to act as our non-exclusive agent to assist us with arranging financing for our properties (the “Financing Arrangement Agreement”). Gladstone Securities is a privately-held broker-dealer and a member of the Financial Industry Regulatory Authority and the Securities Investor 19 Protection Corporation. Gladstone Securities is an affiliate of ours, as its parent company is owned and controlled by Mr. Gladstone, who also serves on the board of managers of Gladstone Securities. In addition, Michael LiCalsi serves in several capacities for Gladstone Securities, including as its chief legal officer, co-secretary, a member of its board of managers, and a managing principal. Erich Hellmold, our co-general counsel and co-secretary, also serves as Gladstone Securities’ co-secretary. Financing Arrangement Agreement We pay Gladstone Securities a financing fee in connection with the services it provides to us for securing financing on our properties. Depending on the size of the financing obtained, the maximum amount of the financing fee, which will be payable upon closing of the respective financing, will range from 0.5 % to 1.0 % of the amount of financing obtained. The amount of the financing fee may be reduced or eliminated as determined by us and Gladstone Securities after taking into consideration various factors, including, but not limited to, the involvement of any unrelated third-party brokers and general market conditions. We did not pay any financing fees to Gladstone Securities during either of the three or six months ended June 30, 2026. During the three and six months ended June 30, 2025, we paid total financing fees to Gladstone Securities of $ 15,000 . Through June 30, 2026, the total amount of financing fees paid to Gladstone Securities represented approximately 0.14 % of the total financings secured since the Financing Arrangement Agreement has been in place. Dealer-Manager Agreement We had entered into a dealer-manager agreement with Gladstone Securities (the “Dealer-Manager Agreement”), pursuant to which Gladstone Securities served as our exclusive dealer-manager in connection with the offering of our 5.00 % Series E Cumulative Redeemable Preferred Stock, par value $ 0.001 per share (the “Series E Preferred Stock”), which expired on December 31, 2025. Pursuant to the Dealer-Manager Agreement, Gladstone Securities provided certain sales, promotional, and marketing services to us in connection with the offering of the Series E Preferred Stock, and we generally paid Gladstone Securities the following: i a selling commission of up to 7.0 % of the gross proceeds from sales in the offering (the “Selling Commissions”), and ii a dealer-manager fee of 3.0 % of the gross proceeds from sales in the offering (the “Dealer-Manager Fees”). Gladstone Securities, in its sole discretion, was permitted to remit all or a portion of the Selling Commissions and also reallow all or a portion of the Dealer-Manager Fees to participating broker-dealers and wholesalers in support of the offerings. The terms of the Dealer-Manager Agreement were approved by our Board of Directors, including its independent directors. No Selling Commissions or Dealer-Manager Fees were paid with respect to shares of the Series E Preferred Stock during the three or six months ended June 30, 2026 or 2025. Selling Commissions and Dealer-Manager Fees paid to Gladstone Securities, if any, are netted against the gross proceeds received from sales of the respective securities and are included within Additional paid-in capital on the accompanying Condensed Consolidated Balance Sheets. Related-Party Fees The following table summarizes related-party fees paid or accrued for and reflected in our accompanying condensed consolidated financial statements (dollars in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Base management fee (1)(2) $ 1,944 $ 1,990 $ 3,890 $ 4,048 Capital gains fee credit (1)(2)(3) — ( 188 ) — — Total fees to our Adviser $ 1,944 $ 1,802 $ 3,890 $ 4,048 Administration fee (1)(2) $ 724 $ 572 $ 1,443 $ 1,213 Financing fees (1)(4) — 15 — 15 Total fees to Gladstone Securities $ — $ 15 $ — $ 15 (1) Pursuant to the agreements with the respective related-party entities, as discussed above. (2) Reflected as a line item on our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. (3) During the three months ended March 31, 2025, our Adviser earned a capital gains fee, driven by the gains recognized on the sale of seven farms completed during the first quarter. During the three months ended June 30, 2025, we incurred additional capital losses associated with the disposition of certain assets, resulting in a reversal of the capital gains fee recorded during the first quarter. The capital gains fee, net of any credits that may be granted by our Adviser, is due in arrears at the end of each fiscal year and is subject to further adjustment throughout the remainder of the fiscal year if and when we dispose of additional assets. (4) Included within Notes and bonds payable, net on the Condensed Consolidated Balance Sheets and amortized into Interest expense on the Condensed Consolidated Statements of Operations and Comprehensive Income. 20 Related-Party Fees Due Amounts due to related parties on our accompanying Condensed Consolidated Balance Sheets as of June 30, 2026, and December 31, 2025, were as follows (dollars in thousands): June 30, 2026 December 31, 2025 Base management fee $ 1,944 $ 1,967 Other, net (1) 75 58 Total due to Adviser 2,019 2,025 Administration fee 724 753 Cumulative accrued but unpaid portion of prior Administration Fees (2) 467 66 Total due to Administrator 1,191 819 Total due to related parties, net (3) $ 3,210 $ 2,844 (1) Other amounts due to or from our Adviser primarily relate to miscellaneous general and administrative expenses either paid by our Adviser on our behalf or by us on our Adviser’s behalf. (2) Represents the cumulative accrued but unpaid portion of prior Administration fees that are scheduled to be paid during the three months ending September 30 of each year, which is the quarter following our Administrator’s fiscal year end. (3) Reflected as a line item on our accompanying Condensed Consolidated Balance Sheets. NOTE 9. COMMITMENTS AND CONTINGENCIES Litigation In the ordinary course of business, we may be involved in legal proceedings from time to time. We are not currently subject to any material known or threatened litigation. NOTE 10. EQUITY Registration Statement On March 28, 2023, we filed a universal shelf registration statement on Form S-3, as amended (File No. 333-270901), with the SEC (the “2023 Registration Statement”). The 2023 Registration Statement, which was declared effective by the SEC on April 13, 2023, and expired on April 12, 2026, permitted us to issue up to an aggregate of $ 1.5 billion in securities consisting of common stock, preferred stock, warrants, debt securities, depository shares, subscription rights, and units, including through separate or concurrent offerings of two or more securities. We issued a total of 176,595 shares of Series E Preferred Stock for gross proceeds of approximately $ 4.4 million and 7,122,591 shares of common stock for gross proceeds of approximately $ 72.2 million under the 2023 Registration Statement. On April 7, 2026, we filed a new universal registration statement on Form S-3, as amended (File No. 333-294917), with the SEC (the “2026 Registration Statement”) to replace the 2023 Registration Statement. The 2026 Registration Statement, which was declared effective by the SEC on April 23, 2026, permits us to issue up to an aggregate of $ 1.0 billion in securities consisting of common stock, preferred stock, warrants, debt securities, depository shares, subscription rights, and units, including through separate or concurrent offerings of two or more securities. Through June 30, 2026, we have issued a total of 300,000 shares of common stock for gross proceeds of approximately $ 3.0 million under the 2026 Registration Statement. Equity Issuances Series E Preferred Stock On November 9, 2022, we filed a prospectus supplement with the SEC for a continuous public offering (the “Series E Offering”) of up to 8,000,000 shares of our Series E Preferred Stock on a “reasonable best efforts” basis through Gladstone Securities at an offering price of $ 25.00 per share. See Note 8, “Related-Party Transactions—Gladstone Securities—Dealer-Manager Agreement,” for a discussion of the commissions and fees paid to Gladstone Securities in connection with the Series E Offering, which expired on December 31, 2025. No shares of the Series E Preferred Stock were sold during the three or six months ended June 30, 2026 or 2025. The following table provides information on shares of Series E Preferred Stock tendered for optional redemption and satisfied with cash payments during the three and six months ended June 30, 2026 and 2025 (dollars in thousands): 21 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Number of shares redeemed 27,400 — 37,760 800 Settlement payment $ 616 $ — $ 864 $ 18 Exclusive of redemptions, the Series E Offering resulted in total gross proceeds of approximately $ 6.3 million and net proceeds, after deducting Selling Commissions, Dealer-Manager Fees, and offering expenses payable by us, of approximately $ 5.7 million. In conjunction with the termination of the Series E Offering, during the three months ended December 31, 2025, we expensed approximately $ 547,000 of unamortized deferred offering costs. Common Stock—At-the-Market Program We had entered into equity distribution agreements (commonly referred to as “at-the-market agreements”) with Virtu Americas LLC and Ladenburg & Co. Inc. (each a “Sales Agent”), that, as amended, permitted us to issue and sell, from time to time and through the Sales Agents, shares of our common stock having an aggregate offering price of up to $ 500.0 million (the “2023 ATM Program”). On April 24, 2026, we entered into new equity distribution agreements with Virtu Americas LLC and Lucid Capital Markets, LLC (each also a “Sales Agent”), to replace the 2023 ATM Program and that currently permit us to sell shares of our common stock having an aggregate offering price of up to $ 500.0 million (the “2026 ATM Program,” and together with the 2023 ATM Program, the “ATM Program” ). The following table provides information on shares of common stock under the ATM Program during the three and six months ended June 30, 2026 (dollars in thousands, except per-share amounts): Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Number of shares sold 1,377,392 5,121,655 Weighted-average offering price per share $ 10.33 $ 10.03 Gross proceeds $ 14,229 $ 51,350 Net proceeds (1) $ 14,056 $ 50,806 (1) Net of underwriting commissions. We did no t sell any shares of common stock under the ATM Program during either of the three or six months ended June 30, 2025. Repurchase Program On May 17, 2024, 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 “2024 Repurchase Program”). The Board of Directors’ authorization of the 2024 Repurchase Program expired on May 17, 2025. On July 11, 2025, our Board of Directors approved a new 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 “2025 Repurchase Program,” and together with the 2024 Repurchase Program and the 2026 Repurchase Program (as defined in Note 13, “ Subsequent Events ”), the “Repurchase Program”). The Board of Directors’ authorization of the 2025 Repurchase Program expired on July 10, 2026. The Board of Directors’ authorization of the Repurchase Program may be suspended at any time and does not obligate us to acquire any particular amount of securities. Under the Repurchase Program, repurchases are intended to be implemented through open market transactions on U.S. exchanges and/or in privately-negotiated transactions facilitated by a third-party broker acting as agent for us in accordance with applicable securities laws. Any repurchases will be made during applicable trading window periods or pursuant to Rule 10b5-1 trading plans. No shares of Series B Preferred Stock or Series C Preferred Stock were repurchased under the Repurchase Program during either of the three or six months ended June 30, 2025. The following table summarizes repurchase activity under the Repurchase Program during the three and six months ended June 30, 2026 (dollars in thousands, except per-share amounts): 22 Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Series B Preferred Stock: Number of shares repurchased 143,190 182,312 Gross repurchase price (1) $ 2,982 $ 3,767 Weighted-average repurchase price per share $ 20.83 $ 20.66 Gain on repurchase (2) $ 203 $ 288 Series C Preferred Stock: Number of shares repurchased 276,123 360,898 Gross repurchase price (1) $ 5,660 $ 7,343 Weighted-average repurchase price per share $ 20.50 $ 20.34 Gain on repurchase (2) $ 603 $ 843 (1) Inclusive of broker commissions. (2) The gain on the repurchase of cumulative redeemable preferred stock is included within Gain on extinguishment of cumulative redeemable preferred stock, net on our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. See Note 13, “ Subsequent Events ,” for repurchase activity completed subsequent to June 30, 2026. Non-Controlling Interests in Operating Partnership We consolidate our Operating Partnership, which is a majority-owned partnership. As of both June 30, 2026, and December 31, 2025, we owned 100.0 % of the outstanding OP Units. Distributions The per-share distributions to preferred and common stockholders declared by our Board of Directors during the three and six months ended June 30, 2026 and 2025 are reflected in the table below. Three Months Ended June 30, Six Months Ended June 30, Issuance 2026 2025 2026 2025 Series B Preferred Stock $ 0.375 $ 0.375 $ 0.750 $ 0.750 Series C Preferred Stock 0.375 0.375 0.750 0.750 Series D Term Preferred Stock (1)(2) — 0.312501 0.104167 0.625002 Series E Term Preferred Stock 0.312501 0.312501 0.625002 0.625002 Common Stock 0.1401 0.1401 0.2802 0.2802 (1) Dividends are treated similarly to interest expense on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. (2) The Series D Term Preferred Stock was redeemed in full on January 30, 2026. NOTE 11. LEASE REVENUE The following table sets forth the components of our lease revenue for the three and six months ended June 30, 2026 and 2025 (dollars in thousands, except for footnotes): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Fixed lease payments (1) $ 12,095 $ 12,121 $ 21,654 $ 26,049 Variable lease payments (2) 264 175 5,500 3,049 Lease revenue, net (3) $ 12,359 $ 12,296 $ 27,154 $ 29,098 (1) Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the respective lease terms and includes the amortization of above-market lease values and lease incentives and the accretion of below-market lease values and other deferred revenue. (2) Variable lease payments include participation rents, which are generally based on a percentage of the gross crop revenues earned on the farm, and reimbursements of certain property operating expenses by tenants. Participation rents are generally recognized when all contingencies have been resolved and when actual results become known or estimable, enabling us to estimate and/or measure our share of such gross revenues. During the three and six months ended June 30, 2026, we recorded participation rents of approximately $ 201,000 and $ 5.1 million, respectively, reimbursements of certain property operating expenses by tenants of approximately $ 63,000 and $ 426,000 , respectively, and late fees of approximately $ 0 and $ 3,000 , respectively. During the three and six months ended June 30, 2025, we recorded participation rents of approximately $ 142,000 and $ 606,000 , respectively, and reimbursements of certain property operating expenses by tenants of approximately $ 33,000 and $ 63,000 , respectively, and lease termination fee income of approximately $ 0 and $ 2.4 million, respectively. (3) Reflected as a line item on our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. NOTE 12. EARNINGS PER SHARE OF COMMON STOCK 23 The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2026 and 2025, computed using the weighted average number of common shares outstanding during the respective periods. (Dollars in thousands, except per-share amounts): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net loss attributable to common stockholders $ ( 13,523 ) $ ( 13,880 ) $ ( 23,507 ) $ ( 4,774 ) Weighted average shares of common stock outstanding – basic and diluted 42,911,176 36,184,658 41,889,429 36,184,658 Loss per common share – basic and diluted $ ( 0.32 ) $ ( 0.38 ) $ ( 0.56 ) $ ( 0.13 ) NOTE 13. SUBSEQUENT EVENTS Property Sale 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 . Loan Repayment Subsequent to June 30, 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 %. Repurchase Program 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”). The Board’s authorization of the 2026 Repurchase Program, which expires on July 14, 2027, may be suspended at any time and does not obligate us to acquire any particular amount of securities. Under the Repurchase Program, repurchases are intended to be implemented through open market transactions on U.S. exchanges and/or privately-negotiated transactions facilitated by a third-party broker acting as agent for us in accordance with applicable securities laws. Any repurchases will be made during applicable trading window periods or pursuant to Rule 10b5-1 trading plans. The following table summarizes repurchase activity under the Repurchase Program subsequent to June 30, 2026 (dollars in thousands, except per-share amounts): Series B Preferred Stock: Number of shares repurchased 85,926 Gross repurchase price (1) $ 1,824 Weighted-average repurchase price per share $ 21.22 Gain on repurchase $ 88 Series C Preferred Stock: Number of shares repurchased 128,234 Gross repurchase price (1) $ 2,689 Weighted-average repurchase price per share $ 20.97 Gain on repurchase $ 220 (1) Inclusive of broker commissions. Distributions On July 14, 2026, our Board of Directors declared the following monthly cash distributions to holders of our preferred and common stock: 24 Issuance Record Date Payment Date Distribution per Share Series B Preferred Stock: July 24, 2026 July 31, 2026 $ 0.125 August 18, 2026 August 31, 2026 0.125 September 21, 2026 September 30, 2026 0.125 Total Series B Preferred Stock Distributions: $ 0.375 Series C Preferred Stock: July 24, 2026 July 31, 2026 $ 0.125 August 18, 2026 August 31, 2026 0.125 September 21, 2026 September 30, 2026 0.125 Total Series C Preferred Stock Distributions: $ 0.375 Series E Preferred Stock: July 28, 2026 August 5, 2026 $ 0.104167 August 26, 2026 September 4, 2026 0.104167 September 25, 2026 October 5, 2026 0.104167 Total Series E Preferred Stock Distributions: $ 0.312501 Common Stock: July 24, 2026 July 31, 2026 $ 0.0467 August 18, 2026 August 31, 2026 0.0467 September 21, 2026 September 30, 2026 0.0467 Total Common Stock Distributions $ 0.1401 25