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, 2023 (dollars in thousands, except for footnotes):
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Table of Content
Location No. of Farms Total
Acres Farm Acres Acre-feet of
Water Assets Net Cost Basis (1)
Encumbrances (2)
California (3)(4)(5)
63 34,844 32,321 46,400 $ 850,610 $ 389,405
Florida (6)
26 22,468 17,639 — 221,185 95,012
Washington 6 2,520 2,004 — 59,763 20,133
Arizona (7)
6 6,320 5,333 — 52,119 12,303
Colorado 12 32,773 25,577 — 45,945 14,599
Nebraska 9 7,782 7,050 — 30,402 10,357
Oregon (8)
6 898 736 — 29,534 11,308
Michigan 23 1,892 1,245 — 23,048 13,868
Texas 1 3,667 2,219 — 8,101 —
Maryland 6 987 863 — 8,013 4,344
South Carolina 3 597 447 — 3,542 2,147
Georgia 2 230 175 — 2,317 1,645
North Carolina 2 310 295 — 2,117 —
New Jersey 3 116 101 — 2,100 1,221
Delaware 1 180 140 — 1,296 697
Totals 169 115,584 96,145 46,400 $ 1,340,092 $ 577,039
(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 $2.9 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, 2023, this investment had a net carrying value of approximately $1.0 million and is included within Other assets, net on the accompanying Consolidated Balance Sheet.
(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 December 31, 2023, these two ground leases had a net cost basis of approximately $689,000 and are included in Lease intangibles, net on the accompanying Consolidated Balance Sheets.
(5) Includes 46.003 acre-feet of water stored with Semitropic Water Storage District, located in Kern County, California and 397 surplus water credits in our account with Westlands Water District, located in Fresno County, California. See Note 3, “ Real Estate and Intangible Assets—Investments in Water Assets, ” in the accompanying notes to our consolidated financial statements for additional information.
(6) Includes one property classified as held for sale; see Note 3, “ Real Estate and Intangible Assets—Real Estate Held for Sale, ” in the accompanying notes to our consolidated financial statements for additional information.
(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 2025 and February 2032, respectively. As of December 31, 2023, these ground leases had an aggregate net cost basis of approximately $376,000 and are included in Lease intangibles, net on the accompanying Consolidated Balance Sheets.
(8) Includes ownership in a special-purpose LLC that owns certain irrigation infrastructure that provides water to two of our farms. As of December 31, 2023, 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.