Gladstone Land Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

LEASE REVENUES

LEASE REVENUES

12 Months Ended

Dec. 31, 2024

The following table sets forth the components of our lease revenue for the years ended December 31, 2024, 2023, and 2022 (dollars in thousands, except for footnotes):


	For the Years Ended December 31,
	2024		2023		2022
Fixed lease payments(1)	$	73,952	$	83,695	$	81,423
Variable lease payments(2)	10,811		6,624		7,813
Lease revenue, net(3)	$	84,763	$	90,319	$	89,236

(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 years ended December 31, 2024, 2023, and 2022, we recorded participation rents of approximately $9.4 million, $5.9 million, and $7.7 million, respectively; reimbursements of certain property operating expenses by tenants of approximately $1.4 million, $688,000, and $110,000, respectively; and late fees of approximately $20,000, $46,000, and $0, respectively.

(3)Reflected as a line item on our accompanying Consolidated Statements of Operations and Comprehensive Income.