Item 2. Properties
ITEM 2. PROPERTIES
All of our properties are wholly-owned on a fee-simple basis, except where noted. The following table provides certain summary information about the 169 farms we owned as of December 31, 2022 (dollars in thousands, except for footnotes):
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Location No. of Farms Total
Acres Farm Acres Net Cost Basis (1)
Encumbrances (2)
California (3)(4)(5)
63 34,844 32,321 $ 868,539 $ 405,014
Florida 26 22,606 17,639 223,974 109,931
Washington 6 2,529 1,997 64,903 21,059
Arizona (6)
6 6,320 5,333 54,290 12,789
Colorado 12 32,773 25,577 46,429 27,935
Nebraska 9 7,782 7,050 30,815 12,118
Oregon (7)
6 898 736 29,445 11,705
Michigan 23 1,892 1,245 23,928 14,204
Texas 1 3,667 2,219 8,175 4,877
Maryland 6 987 863 8,098 4,467
South Carolina 3 597 447 3,632 2,193
Georgia 2 230 175 2,743 1,689
North Carolina 2 310 295 2,161 —
New Jersey 3 116 101 2,124 1,256
Delaware 1 180 140 1,308 717
Totals 169 115,731 96,138 $ 1,370,564 $ 629,954
(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 (excluding improvements paid for by the tenant) and Lease intangibles, net; plus long-term 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 Consolidated Balance Sheets.
(2) Excludes approximately $3.5 million of debt issuance costs related to notes and bonds payable, included in Notes and bonds payable, net on the accompanying Consolidated Balance Sheets.
(3) Includes ownership in a special-purpose LLC that owns a pipeline conveying water to certain of our properties. As of December 31, 2022, this investment had a net carrying value of approximately $1.0 million and is included within Other assets, net on the accompanying Consolidated Balance Sheets.
(4) Includes five acres in which we own a leasehold interest via a ground sublease with a California municipality that expires in December 2041. The ground sublease had a net cost basis of approximately $725,000 as of December 31, 2022 (included in Lease intangibles, net on the accompanying Consolidated Balance Sheets).
(5) Includes 45,000 acre-feet of water stored with Semitropic Water Storage District, located in Kern County, California. See Note 3, “ Real Estate and Intangible Assets—Investments in Water Assets ,” for additional information on this water.
(6) Includes two farms in which we own a leasehold interest via ground leases with the State of Arizona that expire in February 2025 and February 2032, respectively. In total, these two farms consist of 1,368 total acres and 1,221 farm acres and had an aggregate net cost basis of approximately $710,000 as of December 31, 2022 (included in Lease intangibles, net on the accompanying Consolidated Balance Sheets).
(7) Includes ownership in a special-purpose LLC that owns certain irrigation infrastructure that provides water to two of our farms. As of December 31, 2022, this investment had a net carrying value of approximately $4.8 million and is included within Other assets, net on the accompanying Consolidated Balance Sheets.
ITEM 3. LEGAL PROCEEDINGS
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 legal proceedings, nor, to our knowledge, are any material legal proceedings threatened against us.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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PART II