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 144 farms we owned as of December 31, 2025 (dollars in thousands, except for footnotes):
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 55,532 $ 816,801 $ 356,838
Florida 18 10,412 8,635 — 112,960 45,824
Washington 6 2,520 2,004 — 51,162 14,489
Arizona (6)
6 6,320 5,333 — 48,225 11,642
Colorado 10 31,448 24,513 — 38,077 8,924
Oregon (7)
6 898 736 — 29,180 10,421
Nebraska 7 5,223 4,949 — 19,743 9,466
Michigan 12 1,245 778 — 14,676 8,455
Texas 1 3,667 2,219 — 9,329 —
Maryland 6 987 863 — 7,843 4,086
South Carolina 3 597 447 — 3,362 2,051
Georgia 2 230 175 — 2,247 1,553
New Jersey 3 116 101 — 2,025 1,147
Delaware 1 180 140 — 1,265 656
Totals 144 98,688 83,214 55,532 $ 1,156,895 $ 475,552
(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, 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 $1.9 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, 2025, this investment had a net carrying value of approximately $974,000 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, 2025, these two ground leases had a net cost basis of approximately $613,000 and are included in Lease intangibles, net on the accompanying Consolidated Balance Sheets.
(5) Includes 48,309 acre-feet of water stored with Semitropic Water Storage District, located in Kern County, California, and 7,223 surplus water credits in our account with Westlands Water District, located in Fresno County, California. See Note 5, “ Investments in Water Assets, ” for additional information.
(6) 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 December 31, 2025, the aggregate net cost basis of these ground leases was zero.
(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, 2025, 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.