Q4 2025 Gladstone Land Corp Earnings Call

February 25, 2026

A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host daily Glass phone, president and chief executive officer. Thank you. You may begin.

Well, thank you for that. Nice introduction. And this is David Gladstone and welcome to the quarterly conference call for Gladstone land. Thank you all for calling. In today. We appreciate the take time out of your day to listen to our presentation. Hopefully, we'll give you some indication of where we're going now. We hear from Katherine mccarus.

Our director of investor relations to provide a brief disclosure regarding certain regulatory matters, concerning this call and this report Katherine go to it.

David Gladstone: Who's running the music?

Speaker #1: Good evening and welcome to the GLADSTONE LAND Corp year-end and fourth quarter earnings call. At this time, all participants are on a listen-only mode.

Operator: Greetings, welcome to the Gladstone Land Corporation Year-End and Q4 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, David Gladstone, President and Chief Executive Officer. Thank you. You may begin.

Speaker #1: A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press *0 on your telephone keypad. As a reminder, this conference is being recorded.

Good morning, today's call may include forward-looking statements which are based on Management's, estimates, assumptions and projections. There are no guarantees of future performance and actual results May differ materially from those expressed or implied. In these statements due to various uncertainties including the risk factors set forth in our SEC filing, which you can find on the investors page of our website, gladfield land.com.

Speaker #1: It is now my pleasure to introduce your hosts, David GLADSTONE, president and chief executive officer. Thank you. You may begin.

David Gladstone: Well, thank you for that nice introduction. This is David Gladstone, welcome to the quarterly conference call for Gladstone Land. Thank you all for calling in today. We appreciate you take time out of your day to listen to our presentation. Hopefully, we give you some indication of where we're going. Now, we'll hear from Catherine Gerkis, our Director of Investor Relations, to provide a brief disclosure regarding certain regulatory matters concerning this call and this report. Catherine, go to it.

Speaker #2: Well, thank you for that nice introduction and this is David GLADSTONE and welcome to the quarterly conference call for GLADSTONE LAND. Thank you all for calling in today.

Speaker #2: We appreciate you taking time out of your day to listen to our presentation. Hopefully, we'll give you some indication of where we're going. Now we hear from Katharine Gerkis, our director of investor relations to provide a brief disclosure regarding certain regulatory matters concerning this call and this report.

Speaker #2: Katharine, go to it.

Speaker #3: Good morning. Today's call may include forward-looking statements, which are based on management's estimates, assumptions, and projections. There are no guarantees of future performance and actual results may differ materially from those expressed or implied in these statements due to various uncertainties, including the risk factors set forth in our SEC filing, which you can find on the investor's page of our website, GLADSTONELAND.com.

Catherine Gerkis: Good morning. Today's call may include forward-looking statements, which are based on management's estimates, assumptions, and projections. There are no guarantees of future performance, and actual results may differ materially from those expressed or implied in these statements due to various uncertainties, including the risk factors set forth in our SEC filings, which you can find on the Investors page of our website, gladstoneland.com. We assume no obligation to update any of these statements unless required by law. Please visit our website for a copy of our Form 10-K and earnings press release, both issued yesterday, for more detailed information. You can also sign up for our email notification service and find information on how to contact our investor relations department. We are also on X @gladstonecomps, as well as Facebook and LinkedIn. Keyword for both is The Gladstone Companies.

We assume no obligation to update any of these statements unless required by law. Please visit our website for a copy of our form. 10K and earnings, press release both issued yesterday, for more detailed information. You can also sign up for our email notification service, and find information on how to contact our investor relations department. We are also on X at Gladstone comp as well as Facebook and Linkedin keyword for both is the Gladstone companies. Today, we'll discuss ffo which is funds from operations, a non-gaap accounting term defined. As net income, excluding gains or losses from the sale of real estate and any impairment losses on the property plus depreciation. And amortization of real estate assets. We may also discuss core ffo which we generally Define as ffo adjusted for certain non-recurring revenues and expenses and adjusted ffo, which further adjusts for ffo for a certain non-cash items. Such as converting Gap, rents to normalized cash rents. We believe these metrics can be a better indication of our

Speaker #3: We assume no obligation to update any of these statements unless required by law. Please visit our website for a copy of our Form 10-K and earnings press release, both issued yesterday.

Operating results and allow better comparability of our period over period performance. Now I'll turn it back over to David Gladstone

Speaker #3: For more detailed information, you can also sign up for our email notification service and find information on how to contact our investor relations department.

Speaker #3: We are also on X, @GLADSTONECOMS, as well as Facebook and LinkedIn. Keyword for both is the GLADSTONE companies. Today, we'll discuss FFO, which is funds from operations, a non-GAAP accounting term defined as net income excluding gains or losses from the sale of real estate and any impairment losses on the property, plus depreciation and amortization of real estate assets.

Want to thank you, Katherine, uh, folks. We've sold a few more Farms during the fourth quarter, which brought us to 6 property sales for the year totaling 95 million in proceeds. And we recognized an aggregate gain from these sales of about 21 million dollars. So your company's in good shape today.

Catherine Gerkis: Today, we'll discuss FFO, which is funds from operations, a non-GAAP accounting term defined as net income, excluding gains or losses from the sale of real estate and any impairment losses on the property, plus depreciation and amortization of real estate assets. We may also discuss Core FFO, which we generally define as FFO, adjusted for certain non-recurring revenues and expenses, and Adjusted FFO, which further adjusts Core FFO for certain non-cash items, such as converting GAAP rents to normalized cash rents. We believe these metrics can be a better indication of our operating results and allow better comparability of our period-over-period performance. I'll turn it back over to David Gladstone.

After these sales, we still own nearly 99,000 Acres across 144 Farms about 56,000 acre feet.

Speaker #3: We may also discuss core FFO, which we generally define as FFO adjusted for certain non-recurring revenues and expenses. And adjusted FFO, which further adjusts core FFO for certain non-cash items, such as converting GAAP rents to normalized cash rents.

and in case you forgot, I'll translate that to you 18 billion gallons of water that we've got stored in aquifers and

so we're in good shape for that part of our work.

Our farms are in 14 different states and our water assets are all in California.

Speaker #3: We believe these metrics can be a better indication of our operating results and allow better comparability of our period-over-period performance. Now, I'll turn it back over to David Gladstone.

And right now, there's plenty of water in California. So we're in all in good shape from that perspective.

Regarding the 2 sales. We completed during the quarter, 1 was a small, blueberry farm down in North Carolina,

David Gladstone: Well, thank you, Catherine Gerkis. Folks, we sold a few more farms during Q4, which brought us to six property sales for the year, totaling $95 million in proceeds. We recognized an aggregate gain from these sales of about $21 million. Your company is in good shape today. After these sales, we still own nearly 99,000 acres, plus 144 farms. About 56,000 acre feet. In case you forgot, I'll translate that to 18 billion gallons of water that we've got stored in aquifers. We're in good shape for that part of our work. Our farms are in 14 different states. Our water assets are all in California. Right now, there's plenty of water in California, so we're all in good shape from that perspective.

Speaker #2: Well, thank you, Katharine. Folks, we've sold a few more farms during the fourth quarter, which brought us to six property sales for the year, totaling $95 million in proceeds.

the tenant had fallen behind in his rents.

and it was,

Speaker #2: And we recognized an aggregate gain from these sales of about $21 million, so your company is in good shape today. After these sales, we still own nearly 99,000 acres across 144 farms—so about 56,000 acre-feet.

it was a tough property for us to get to New tenants. So while we took a small loss in the sale, we thought it best just to get rid of that farm since it was out of the normal territory that we're in.

Speaker #2: In case you forgot, I'll translate that to you: 18 billion gallons of water that we've got stored in aquifers and so we're in good shape for that part of our work.

The other sale was really nice Farm in Colorado where the lease was set to expire at the end of the year and we were likely facing a downward, rent bump, and reset. So,

we took the opportunity to sell the property for more than we had in originally and

Speaker #2: Our farms are in 14 different states and our water assets are all in California. And right now, there's plenty of water in California, so we're all in good shape from that perspective.

a paid. So it was decided to go ahead and take the gain and move.

From that area, uh, Farms.

We may consider selling some additional farms. In fact, we've got several that we're talking to buyers.

David Gladstone: Regarding the two sales we completed during the quarter, one was a small blueberry farm down in North Carolina. The tenant had fallen behind in his rents. It was a tough property for us to get new tenants. While we took a small loss in the sale, we thought it best just to get rid of that farm since it was out of the normal territory that we're in. The other sale was a really nice farm in Colorado, where the lease was set to expire at the end of the year. We were likely facing a downward rent bump and reset. We took the opportunity to sell the property for more than we had in it originally and paid up. It was decided to go ahead and take the gain and move from that area farms.

Speaker #2: Regarding the two sales we completed during the quarter, one was a small blueberry farm down in North Carolina. The tenant had fallen behind in his rents.

over the next few quarters, and this part of ongoing portfolio review,

Speaker #2: And it was a tough property for us to get to new tenants. So while we took a small loss in the sale, we thought it best just to get rid of that farm since it was either the normal territory that we're in.

If we're able to complete some of those, we'd like to use most of the proceeds to pay down debt.

And also to buy back some of that more expensive, preferred stock that we have and Trigger it again there.

But we're still evaluating the opportunities.

And at this point, we're

Speaker #2: The other sale was really nice farm in Colorado where the lease was set to expire at the end of the year. And we were likely facing a downward rent bump and reset, so we took the opportunity to sell the property for more than we had in it originally and paid up.

Properties.

On the acquisition side financing costs which seem to be slowly moving closer to where they would like them to be.

Uh, but we're not quite there yet.

We're hoping interest rates will continue to move in the right direction. That is down.

Speaker #2: Paid so it was decided to go ahead and take the gain and move from that area farms. We may consider selling some additional farms.

So, we can get back to Growing the portfolio.

David Gladstone: We may consider selling some additional farms. In fact, we've got several that we're talking to buyers over the next few quarters, and this part of ongoing portfolio review. If we're able to complete some of those, we'd like to use most of the proceeds to pay down debt and also to buy back some of that more expensive preferred stock that we have and trigger a gain there. We're still evaluating the opportunities, and at this point, we're hopeful of a good transaction that will come and show how good we've been buying and holding these properties. On the acquisition side, financing costs, which seem to be slowly moving closer to where we like them to be, but we're not quite there yet.

Speaker #2: In fact, we've got several that we're talking to buyers about over the next few quarters, and this is part of our ongoing portfolio review. If we're able to complete some of those, we'd like to use most of the proceeds to pay down debt and also to buy back some of that more expensive preferred stock that we have and trigger a gain there.

As we've been out of the business for quite a while, we've got a lot of land that we own, but it'd be nice to pick up some now, but because prices seem to be moving in the right direction.

We're still taking that discipline approach to any new Investments interest rates and our overall cost of capital remained elevated.

And the capital rates.

On most Road cop. Farmland is still too low to make an economically work for us today. If we have to use a lot of debt by it.

Speaker #2: But we're still evaluating the opportunities, and at this point, we're hopeful of a good transaction that will come and show how good we've been buying and holding these properties.

I'm releasing side.

And we first we've talked about our on prior calls, due to the market conditions, affecting certain permanent crops particularly nuts and wine grapes.

Speaker #2: On the acquisition side, financing costs, which seem to be slowly moving close to where they would like them to be, but we're not quite there yet.

We adjusted the lease structure on a handful of properties.

Speaker #2: We're hoping interest rates will continue to move in the right direction, that is down, so we can get back to growing the portfolio as we've been out of the business for quite a while.

David Gladstone: We're hoping interest rates will continue to move in the right direction, that is down, so we can get back to growing the portfolio as we've been out of the business for quite a while. We've got a lot of land that we own, but it'd be nice to pick up some now because prices seem to be moving in the right direction. We're still taking a disciplined approach to any new investments. Interest rates and our overall cost of capital remain elevated, and the capital rates on most row crop farmland is still too low to make an economically work for us today if we have to use a lot of debt to buy it.

May help our Growers, reduce their fixed costs. And as a result of doing that reduction, in essence, we're taking a larger percentage of the gross crop sales. Instead of extra

Speaker #2: We've got a lot of land that we own, but it'd be nice to pick up some now because prices seem to be moving in the right direction.

We also decided to direct operation to 2 properties ourselves with the help of third-party operators. We do a lot of the farms in the United States are

Speaker #2: We're still taking that discipline approach to any new investments. Interest rates are overall cost of capital remain elevated. And the capital rates on most row crop farmland is still too low to make an economically work for us today if we have to use a lot of debt to buy it.

Just set up like that so people bring in farming expertise as we are.

And uh, we'll

well, I'll let Bill and Lewis to next speakers.

Talk about that. But overall we had a successful Harvest.

Particularly with almonds and pistachios.

David Gladstone: On the leasing side, first, we've talked about on prior calls, due to the market conditions affecting certain permanent crops, particularly nuts and wine grapes, we adjusted the lease structure on a handful of properties to help our growers reduce their fixed costs. As a result of re-doing that reduction, in essence, we're taking a larger percentage of the gross crop sales instead of fixed rent payment. We also decided to direct operation of two properties ourselves with the help of third-party operators. We do. A lot of the farms in the United States are just set up like that, so people bring in farming expertise as we are. Well, I'll let Bill and Lewis, the two next speakers, talk about that. Overall, we had a successful harvest, particularly with almonds and pistachios.

Speaker #2: On the leasing side, we first we've talked about on prior calls, due to the market conditions affecting certain permanent crops, particularly nuts and wine grapes, we adjusted the lease structure on a handful of properties to help our growers reduce their fixed costs.

We're still expecting significant amounts of revenue from the 2025 pistachio Harvest to come during 2026. So they're not in there yet.

But we won't know the exact amount until the processes of those nuts.

Have their finalized, their settlement with us.

Speaker #2: And as a result of doing that reduction, in essence, we're taking a larger percentage of the gross crop sales instead of fixed rent payment.

I wanted to remind everyone about this modified structure that we're using, because

Speaker #2: We also decided to direct operation to two properties, ourselves with the help of third-party operators. We do a lot of the farms in the United States are just set up like that, so people bring in farming expertise as we are.

We're simple approach to most of these farms for 2026, crop years. Going to be exactly the same as we used last year.

And I think it's also important to again, highlight the role of crop insurance.

and these cases 1 of the reasons, we feel so confident in taking this approach, which is a little bit like gambling,

Speaker #2: And we'll let Bill and Lewis the two next speakers talk about that. But overall, we had a successful harvest. Particularly with almonds and pistachios, we're still expecting significant amounts of revenue from the 2025 pistachio harvest to come during 2026, so they're not in there yet.

On these special, special Farms is their strong history of high production.

And since insurance coverage is largely based on historical yield. We're able to secure.

David Gladstone: We're still expecting significant amounts of revenue from the 2025 pistachio harvest to come during 2026, so they're not in there yet. We won't know the exact amount until the processes of those nuts have their settlement with us. I wanted to remind everyone about this modified structure that we're using because simple approach to most of these farms for 2026 crop year is going to be exactly the same as we used last year. I think it's also important to, again, highlight the role of crop insurance. In these cases, one of the reasons we feel so confident in taking this approach, which is a little bit like gambling on these special farms, is their strong history of high production. Since insurance coverage is largely based on historical yields, we're able to secure relatively high levels of insurance.

Relatively high levels of insurance. So to give you an example of this,

if 1 of our crops was, that's insured.

Is, uh, wiped out by some strange disease, or whatever.

Speaker #2: But we won't know the exact amount until the processes of those nuts have their finalized their settlement with us. I wanted to remind everyone about this modified structure that we're using because we're simple approach to most of these farms for 2026 crop years is going to be exactly the same as we used last year.

The insurance allows us to recover the amount of capital that we put into these farms and that's nice to know that the downside is covered. Our goal is still eventually transitioned these leases back to more traditional structure with

fixed base rents.

But our ability to do, so will depend on many.

Many factors actually external factors such as Crop Productions.

Speaker #2: And I think it's also important to again highlight the role of crop insurance. And these cases, one of the reasons we feel so confident in taking this approach, which is a little bit like gambling on these special farms, is their strong history of high production.

Crop prices, interest rates input cost of growing the nuts or whatever. Strawberries.

And water availability, we kind of got the last 1 covered to some degree, water availability as you probably read in the newspapers and reports.

Speaker #2: And since insurance coverage is largely based on historical yields, we're able to secure relatively high levels of insurance. So to give you an example of this, if one of our crops was that's insured is wiped out by some strange disease or whatever, the insurance allows us to recover the amount of capital that we put into these farms.

Water is plentiful in California and the amount of snow in the mountains, which will melt during the summer and run off is pretty good shape.

David Gladstone: To give you an example of this, if one of our crops was, that's insured, is, wiped out by some strange disease or whatever, the insurance allows us to recover the amount of capital that we put into these farms, and that's nice to know that the downside is covered. Our goal is still eventually transition these leases back to more traditional structure with fixed base rents. Our ability to do so will depend on many factors, actually. External factors such as crop productions, crop prices, interest rates, input cost of growing the nuts or whatever, strawberries, and water availability. We kind of got that last one covered to some degree, water availability, as you probably read in the newspapers and reports.

Another leasing XT activity. We executed 5 renewals during the quarter. We saw modest increase of about 7% on 2 of these row crops

As a renewal, for 3 permanent crops.

We reduced the fixed base rent.

Speaker #2: And that's nice to know that the downside is covered. Our goal is still eventually transition these leases back to more traditional structure with fixed base rents.

In exchange for additional additional crop share components, which is what we've done a lot.

Speaker #2: But our ability to do so will depend on many factors, actually, external factors such as crop productions, crop prices, interest rates, input cost of growing the nuts or whatever strawberries, and water availability.

We should have roughly flat compared to those of Prior leases on those Farms. Looking ahead, we have 5 leases scheduled to expire over the next 6 months. In total of this represents. About 3.6% of our total, 2025 lease Revenue

Speaker #2: We've kind of got the last one covered to some degree, water availability, as you've probably read in the newspapers and reports. Water is plentiful in California.

With the existing tenants and prospective new tenants about leasing each of these Farms. So I'm pretty optimistic about getting those rented.

David Gladstone: Water is plentiful in California, the amount of snow in the mountains, which will melt during the summer and run off, is pretty good shape. In other leasing activity, we executed 5 renewals during the quarter. We saw a modest increase of about 7% on 2 of these row crops as a renewal. For 3 permanent crops, we reduced the fixed base rent in exchange for additional share component, which is what we've done a lot of times. We should have roughly flat compared to those of prior leases on those farms. Looking ahead, we have 5 leases scheduled to expire over the next 6 months. In total, this represents about 3.6% of our total 2025 lease revenue.

Speaker #2: And the amount of snow in the mountains, which will melt during the summer, and runoff is pretty good shape. In other leasing activity, we executed five renewals during the quarter.

And now take a quick update of some of the ongoing tenants.

That we're working through. We're currently have 9 Farms that are wholly or partially vacant.

And we're growing crops on some of these.

Speaker #2: We saw modest increase, of about 7% on two of these row crops. As a renewal, for three permanent crops, we reduced the fixed base rent in exchange for additional crop share component.

For the Farms we've seen direct operators.

Under management agreements with unrelated third-party Growers.

Speaker #2: Which is what we've done a lot of times. We should have roughly flat results compared to those of prior leases on those farms. Looking ahead, we have five leases scheduled to expire over the next six months.

We also recognize revenue on the cash basis for leases with 3 tenants, who collectively release about 5 of our Farms, that should be okay.

Speaker #2: In total, this represents about 3.6% of our total 2025 lease revenue. We're currently in discussions with the existing tenants and prospective new tenants about leasing each of these farms, so I'm pretty optimistic about getting those rented.

We are actively working towards solutions. For each of these situations. We think we are close to having a resolution in place for a few of these Farms soon. And hopefully we can get some of them off of this list over the next few months.

David Gladstone: We're currently in discussions with existing tenants and prospective new tenants about leasing each of these farms, so I'm pretty optimistic about getting those rented. Now, take a quick update of some of the ongoing tenancy matters that we're working through. We currently have nine farms that are wholly or partially vacant, and we're growing crops on some of these. Encompassing four of the farms, we're being direct operators under management agreements with unrelated third-party growers. We also recognize revenue on a cash basis for leases with three tenants who collectively lease about five of our farms. That should be okay. We are actively working towards solution for each of these situations. We think we are close to having a resolution in place for a few of these farms soon, and hopefully, we can get some of them off of this list over the next few months.

I'm going to stop here. We've got Bill Ryman on the call, and Bill is the man who really understands this since he's been working in the farming area for most of his career. So Bill take it away.

Speaker #2: And now I'll take a quick update of some of the ongoing tenancy matters. That we're working through. We currently have nine farms that are wholly or partially vacant.

Speaker #2: And we're growing crops on some of these. Encompassing four of the farms, we're being direct operators under management agreements with unrelated third-party growers. We also recognize revenue on the cash basis for leases with three tenants who collectively lease about five of our farms.

Thank you, David and uh, good morning to everybody. Um yeah. Much of our current management Focus. Uh, right now is on the properties that are being operated under under these modified lease agreements or or Farm directly, utilizing third-party Farm operators. Uh, We've uh, completed Harvest for 2025 and uh we're pleased to report that the uh, uh overall yield objectives that we had in our budgets. So we we exceeded all of that and so really good results there. Uh, we're renewing uh, some of these modified lease Arrangements. Um,

David Gladstone: That should be okay. We are actively working towards solution for each of these situations. We think we are close to having a resolution in place for a few of these farms soon, and hopefully, we can get some of them off of this list over the next few months.

Speaker #2: That should be okay. We are actively working towards solution for each of these situations. We think we're close to having resolution in place for a few of these farms soon.

Speaker #2: And hopefully, we can get some of them off of this list over the next few months. I'm going to stop here. We've got Bill Ryman on the call.

David Gladstone: I'm gonna stop here. We've got Bill Reiman on the call. Bill is the man who really understands that since he's been working in the farming area for most of his career. Bill, take it away.

Speaker #2: And Bill is the man who really understands us since he's been working in the farming area for most of his career. So Bill, take it away.

Speaker #3: Thank you, David. And good morning to everybody. Yeah, much of our current management focus right now is on the properties that are being operated under these modified leases utilizing third-party farm operators.

Bill Reiman: Thank you, David, and good morning to everybody. Yeah, much of our current management focus right now is on the properties that are being operated under these modified lease agreements or farm directly utilizing third-party farm operators. We've completed harvest for 2025, and we're pleased to report that the overall yield objectives that we had in our budgets, we exceeded all of that, and really good results there. We're renewing some of these modified lease arrangements, particularly on 5 of the 8 farms. 2 of the remaining 3 are redevelopment projects, and the last one, our wine grape vineyard in Napa, is now leased to a local grower. We're happy to have that done.

Particularly I'm 5 of the 8 Farms 2 of the remaining 3 are Redevelopment projects and the last 1, our wine grape vineyard in Napa is now leased to a local grower. So we're happy to have, uh, have that done the 5ms that we ended up that were renewing agreements on. We're really our top performers from this group last year, so, um, we're expecting another really strong year of results. Uh, the winter David touched on a little bit about some recent, whether the winter for us has been about, uh, average for precipitation with with a couple of our wet. And we've had some major storms that really boosted the snowpack level. So there's significant optimism that the surface water allocations for 2026 will be very strong.

Speaker #3: We've completed harvests for 2025. And we're pleased to report that the overall yield objectives that we had in our budgets we exceeded all of that.

With reservoirs both state and federal water projects are above historical averages. So for the short term, there's plenty of supply.

Speaker #3: And so, really good results there. We're renewing some of these modified lease arrangements, particularly on five of the eight farms. Two of the remaining three are redevelopment projects.

Speaker #3: And the last one, our wine grape vineyard in Napa is now leased to a local grower, so we're happy to have that done. The five farms that we ended up renewing agreements on were really our top performers from this group last year.

Bill Reiman: The five farms that we ended up, that we're renewing agreements on, were really our top performers from this group last year. We're expecting another really strong year of results. The winter, David touched on a little bit about some recent weather. The winter for us has been about average for precipitation with a couple of our wettest months left to come. Recently, we've had some major storms that really boosted the snowpack levels, there's significant optimism that the surface water allocations for 2026 will be very strong. With reservoirs, both state and federal water projects are above historical averages, for the short term, there's plenty of supply. Chilling hours, we're projecting a low to medium level of chilling hours this winter in California.

Speaker #3: So we're expecting another really strong year of results. The winter, David touched on a little bit, about some recent weather. The winter for us has been about average for precipitation with a couple of our wettest months left to come.

Uh, chilling hours were projecting a low to medium level of chilling hours. Uh, this winter in California. Um, it means we should meet all chill requirements, and, and all of our permanent crop locations. So that's very good news. Almond Bloom, as of today, we're probably 2/3 complete, um, Bloom's been a bit uneven. It's been reports of flash, Bloom, and many locations, around the valley, uh, Central Valley, uh, and also with the cold and rainy weather. The bee activity, hasn't it's been somewhat Limited in in quite a few areas this could possibly cause almond yields to be uh, lower across the state.

Stashes 1, Grapes, of course, are still in dormy. So they've actually reaped the benefit of some of those colder colder wet weather and, and haven't had that bloom exposed yet.

Speaker #3: Recently, we've had some major storms that really boosted the snowpack levels. So there's significant optimism that the surface water allocations for 2026 will be very strong.

Speaker #3: With reservoirs, both state and federal water projects are above historical averages, so for the short term, there's plenty of supply. Chilling hours—we're projecting a low to medium level of chilling hours this winter in California.

Bill Reiman: It means we should meet all chill requirements in all of our permanent crop locations. That's very good news. Almond bloom, as of today, we're probably two-thirds complete. The bloom's been a bit uneven. There's been reports of flash bloom in many locations around the valley, Central Valley. Also with the cold and rainy weather, bee activity has been somewhat limited in quite a few areas. This could possibly cause almond yields to be lower across the state. Pistachios, wine grapes, of course, are still in dormancy. They've actually reaped the benefit of some of those colder, wet weather and haven't had that bloom exposed yet. Markets, tariff drama, trade tensions still exist, as we all read the headlines.

Speaker #3: It means we should meet all chill requirements in all of our permanent crop locations. So that's very good news. Almond bloom, as of today, we're probably two-thirds complete.

Markets, uh, tariff, drama trade tensions, still exist. As we all read the headlines. Uh, however, crop Market seems to have settled in and accepted this uncertainty to a large degree. Uh, not not crop markets, continue to show notable, resilience and strength, particularly for pistachios. Uh, important story lately, is the fact that the supply chain seems to be pretty light. Uh, there's minimal product in both almond and pistachio buyer side Supply chains, which we think is provide an upward pressure on pricing.

Speaker #3: The bloom's been a bit uneven. There's been reports of flash bloom in many locations around the valley, Central Valley, and also, with the cold and rainy weather, the bee activity has been somewhat limited in quite a few areas.

As a result, our base guarantee price for the current crop remains consistent with 2024 and we believe there's a strong likelihood that the final price for 2025 crop.

Will actually be higher than our final 2024 pricing.

Speaker #3: This could possibly cause almond yields to be lower across the state. Stashed wine grapes, of course, are still in dormancy, so they've actually reaped the benefit of some of that colder, wet weather and haven't had the bloom exposed yet.

Speaker #3: Markets, tariff drama, trade tensions still exist. As we all read the headlines, however, crop markets seem to have settled in and accepted this uncertainty to a large degree.

1 of our processors. Uh, in fact, recently announced an extra 50 Cent per pound bonus, uh, to be paid with our scheduled April, uh, crop payment for pistachios. Uh, so for the 2025 crops that's really good news. Uh, this momentum could also result in a higher base price for the 2026 crop when that gets announced in July of this year. So things are looking up and, and pistachios.

Bill Reiman: However, crop markets seem to have settled in and accepted this uncertainty to a large degree. Nut crop markets continue to show noble resilience and strength, particularly for pistachios. The important story lately is the fact that the supply chain seems to be pretty light. There's minimal product in both almond and pistachio buyer side supply chains, which we think is providing upward pressure on pricing. As a result, our base guarantee price for the current crop remains consistent with 2024, and we believe there's a strong likelihood that the final price for 2025 crop will actually be higher than our final 2024 pricing.

Speaker #3: Nut crop markets continue to show notable resilience and strength, particularly for pistachios. An important story lately is the fact that the supply chain seems to be pretty light.

Speaker #3: There's minimal product in both almond and pistachio buyer side, supply chains, which we think is providing upward pressure on pricing. As a result, our base guaranteed price for the current crop remains consistent with 2024.

Speaker #3: And we believe there's a strong likelihood that the final price for 2025 crop will actually be higher than our final 2024 pricing. One of our processors in fact, recently announced an extra 50 cent per pound bonus to be paid with our scheduled April crop payment for pistachios.

Bill Reiman: One of our processors, in fact, recently announced an extra $0.50 per pound bonus to be paid with our scheduled April crop payment for pistachios, for the 2025 crop. That's really good news. This momentum could also result in a higher base price for the 2026 crop when that gets announced in July of this year. Things are looking up in pistachios. Almond prices dipped in January, since then, they've rebounded quite a bit and climbing again as we move through bloom season. I don't expect these prices to vary too much as there's strong demand and confidence in the market.

To this point in bloom and everybody has an opinion with the crops going to do. So we will definitely see that reflected in in the market. But it is the market is, in general severely under bought, and the supply chain is light. So, um, those are thing and Growers are reluctant to sell right now. So those are all things that uh, continue to put upward pressure on all the prices.

1, great Market continues to underperform, but we're beginning to see some varietals particularly some white grape varieties. Uh, that are showing up short in Supply,

Speaker #3: So for the 2025 crops, that's really good news. This momentum could also result in a higher base price for the 2026 crop when that gets announced in July of this year.

Speaker #3: So things are looking up in pistachios. Almond prices dipped in January, but since then, they've rebounded quite a bit. And climbing again as we move through bloom season.

At the moment, this isn't this isn't causing any increase in prices or really provide any incentive for whiners to contract for Supply, but it is the very first encouraging sign that we've seen in a couple of years.

Speaker #3: I don't expect these prices to vary too much, as there's strong demand and confidence in the market. There'll be some slight bouncing around as projections for the 2026 crop start to come out.

In your removals are continuing at a rapid Pace in California and really around the world. So, we're hopeful that this pullback in Supply will soon bring the market back into balance. Uh, likely flipping at the opposite, way and will be underproduced.

Bill Reiman: There'll be some slight bouncing around as projections for the 2026 crop start to come out, and we get to this point in bloom, and everybody has an opinion on what the crop's gonna do. We will definitely see that reflected in the market. The market is, in general, severely underbought, and the supply chain is light. Those are the things, and growers are reluctant to sell right now. Those are all things that continue to put upward pressure on almond prices. Wine grape market continues to underperform. We're beginning to see some varietals, particularly some white grape varieties, that are showing up short in supply.

Speaker #3: And we get to this point in bloom, and everybody has an opinion on what the crop's going to do. So we will definitely see that reflected in the market.

Speaker #3: But the market is, in general, severely underbought, and the supply chain is light. So those are things, and growers are reluctant to sell right now.

Speaker #3: So those are all things that continue to put upward pressure on almond prices. Wine grape market continues to underperform. But we're beginning to see some varietals, particularly some white grape varieties, that are showing up short in supply.

Uh, and then the weakening dollars, you know, as long as the dollar continues to weaken that that works in our favor, making our products more attractive to international buyers, um, and can circling back to water. Um, you know, we're expensive. Like I mentioned we're experiencing a normal to potentially wet year as far as precipitation is concerned. So it's a really good news and that we're continuing to experience and extended wet period 4 out of The Last 5 Years or 5 out of the last 6 years have been average or wet.

Speaker #3: At the moment, this isn't causing any increase in prices or really providing any incentive for wineries to contract for supply. But it is the very first encouraging sign that we've seen in a couple of years.

Bill Reiman: At the moment, this isn't causing any increase in prices or really providing any incentive for wineries to contract for supply, but it is the very first encouraging sign that we've seen in 2 years. Vineyard removals are continuing at a rapid pace in California and really around the world, so we're hopeful that this pullback in supply will soon bring the market back into balance, likely flipping it the opposite way and will be underproduced. The weakening dollar, you know, as long as the dollar continues to weaken, that works in our favor, making our products more attractive to international buyers. Kind of circling back to water, you know, like I mentioned, we're experiencing a normal to potentially wet year as far as precipitation is concerned.

Um, full reservoirs, good, rainfall snow pack. They're all key factors for the water Market to be full of water for sale prices that are attracted for our water banking activities. So we've been working hard to identify the best water deals for for our properties. And looking for infrastructure improvements that will yield us the best return on those Capital expenditures.

Speaker #3: Vineyard removals are continuing at a rapid pace in California and really around the world. So we're hopeful that this pullback in supply will soon bring the market back into balance.

Speaker #3: Likely flipping it the opposite way. And we'll be underproduced. And then the weakening dollars, as long as the dollar continues to weaken, that works in our favor, making our products more attractive to international buyers.

Our goal has always remains to further strengthen that overall water security of the entire portfolio through long-term and short-term strategic water purchases, we looking to continue investing in water, delivery storage infrastructure, pipelines water Banks, and then identifying opportunities to create synergies across the farm assets,

Uh, now I'll turn it over to our CFO Lewis Parish.

Speaker #3: In circling back to water, we're expensive. Like I mentioned, we're experiencing a normal to potentially wet year as far as precipitation is concerned. So this is a really good news in that we're continuing to experience an extended wet period four out of the last five years or five out of the last six years have been average or wet.

Thanks Bill and good morning everyone. I'll start with a brief update on our recent Finance financing activity.

During the quarter, we we paid a $4 million note that was secured by a property that we also sold During the period.

Bill Reiman: This is really good news, and that we're continuing to experience an extended wet period. 4 out of the last 5 years or 5 out of the last 6 years have been average or wet. Full reservoirs, good rainfall, snowpack, these are all key factors for the water market to be full of water, for sale prices that are attractive for our water banking activities. We've been working hard to identify the best water deals for our properties and looking for infrastructure improvements that will yield us the best return on those capital expenditures. Our goal, as always, remains to further strengthen that overall water security of the entire portfolio through long-term and short-term strategic water purchases.

And subsequent the year end, we redeemed. Our series D term preferred, stock to avoid a step up in the coupon, from 5% to 8%.

Speaker #3: Full reservoirs, good rainfall, snowpack, they're all key factors for the water market to be full of water for sale at prices that are attractive for our water banking activities.

That Redemption was funded through a combination of common stock issued under our ATM program and a draw on our line of credit.

Speaker #3: So we've been working hard to identify the best water deals for our properties and looking for infrastructure improvements that will yield us the best return on those capital expenditures.

Since the beginning of the fourth quarter, we raised about of common stock to our ATM program with the majority of those proceeds used to fund that Redemption.

Speaker #3: Our goal, as always, remains to further strengthen that overall water security of the entire portfolio through long-term and short-term strategic water purchases. We look into continuing investing in water delivery, storage infrastructure, pipelines, water banks, and then identifying opportunities to create synergies across the farm assets.

During to our operating results for the fourth quarter, that income of about 4.2 million and a net loss of common shareholders of 1.8 million or 5 cents per share.

For the year, we recorded net income of 13.5 million in a net loss to Common shareholders of 10.5 million or 29 cents per share.

David Gladstone: ... We're looking to continue investing in water delivery, storage, infrastructure, pipelines, water banks, and then identifying opportunities to create synergies across the farm assets. Now, I'll turn it over to our CFO, Lewis Parrish.

Bill Reiman: ... We're looking to continue investing in water delivery, storage, infrastructure, pipelines, water banks, and then identifying opportunities to create synergies across the farm assets. Now, I'll turn it over to our CFO, Lewis Parrish.

Adjusted ffo for the fourth quarter, 14.4 million, or 38 cents per share compared to 3.4 million or 9 cents per share in the same quarter last year.

Speaker #3: Now, I'll turn it over to our CFO, Louis Parrish.

Speaker #4: Thanks, Bill. And good morning, everyone. I'll start with a brief update on our recent financing activity. During the quarter, we repaid a $4 million note that was secured by a property that we also sold during the period.

Lewis Parrish: Thanks, Bill. Good morning, everyone. I'll start with a brief update on our recent financing activity. During the quarter, we repaid a $4 million note that was secured by a property that we also sold during the period. Subsequent to year-end, we redeemed our Series D term preferred stock to avoid a step up in the coupon from 5% to 8%. That redemption was funded through a combination of common stock issued under our ATM program and a draw on our line of credit. Since the beginning of Q4, we've raised about $50 million of common stock through our ATM program, with the majority of those proceeds used to fund debt redemption.

And for the year, afo is 14.4 million or 39 cents per share compared to 16 million dollars or 47 cents per share last year.

Speaker #4: And subsequent to year-end, we redeemed our Series D term preferred stock to avoid a step-up in the coupon from 5% to 8%. That redemption was funded through a combination of common stock issued under our ATM program and a draw on our line of credit.

The decreases in afo were primarily driven by the recent changes to lease structures on certain Farms timing differences and re Revenue recognition related to crop sales in certain direct operated Farms loss revenue from Farm sales over the past year and on pregnancy issues that have led to vacancies resulting in both lower revenues and higher costs.

Speaker #4: Since the beginning of the fourth quarter, we've raised about $50 million of common stock through our ATM program, with the majority of those proceeds used to fund that redemption.

Year-over-year fixed-based, cash rents decreased by about 1.9 million for the quarter and by about 19 million 19.8 million for the full year.

Speaker #4: Turning to our operating results for the fourth quarter, we recorded net income of about $4.2 million. And a net loss to common shareholders of $1.8 million, or 5 cents per share.

Lewis Parrish: Turning to our operating results for Q4, we recorded a net income of about $4.2 million and a net loss to common shareholders of $1.8 million, or $0.05 per share. For the year, we recorded net income of $13.5 million and a net loss to common shareholders of $10.5 million, or $0.29 per share. Adjusted FFO for Q4 was $14.4 million, or $0.38 per share, compared to $3.4 million, or $0.09 per share in the same quarter last year. For the year, AFFO was $14.4 million, or $0.39 per share, compared to $16 million, or $0.47 per share last year.

Speaker #4: For the year, we recorded net income of $13.5 million, and a net loss to common shareholders of $10.5 million, or 29 cents per share.

This is primarily driven by the reasons just mentioned, but mainly the least modifications on certain properties where we reduced or eliminated fixed base rents, or in some cases provided cash. Lease incentives in exchange for a significantly increasing the crop share components

Speaker #4: Adjusted FFO for the fourth quarter was $14.4 million, or $0.38 per share, compared to $3.4 million, or $0.09 per share, in the same quarter last year.

Partial setting that and largely from the same reason, participation rents increased by about 9.3 million on a quarterly basis. And by 10.6 million for the full year.

Speaker #4: And for the year, AFFO was $14.4 million, or 39 cents per share, compared to $16 million or 47 cents per share last year. The decreases in AFFO were primarily driven by the recent changes to lease structures on certain farms, timing differences in revenue recognition related to crop sales in certain direct operated farms, lost revenue from farm sales over the past year, and ongoing tenancy issues that have led to vacancies resulting in both lower revenues and higher costs.

This increase was further driven by stronger pistachio pricing compared to last year.

Net profit from crop sales and our direct operated Farms was about 2.6 million dollars 2025.

Lewis Parrish: The decreases in AFFO were primarily driven by the recent changes to lease structures on certain farms, timing differences in revenue recognition related to crop sales on certain direct operated farms, lost revenue from farm sales over the past year, on tenancy issues that have led to vacancies, resulting in both lower revenues and higher costs. Year-over-year, fixed base cash rents decreased by about $1.9 million for the quarter and by about $19.8 million for the full year. This is primarily driven by the reasons just mentioned, but mainly the lease modifications on certain properties where we reduced or eliminated fixed base rents, or in some cases, provided cash lease incentives in exchange for significantly increasing the crop share per components.

For 2025, which is our first harvest year. However, the full impact of this 2025 Harvest is not yet reflected in our financial results.

While we did expense a full year of growing costs. We have not yet recognized a full year of revenues particularly on the pistachios.

Speaker #4: Year over year, fixed base cash rents decreased by about 1.9 million dollars for the quarter and by about 19 million 19.8 million dollars for the full year.

This property was fully leased.

Speaker #4: This is primarily driven by the reasons just mentioned, but mainly the lease modifications on certain properties where we reduced or eliminated fixed base rents or, in some cases, provided cash lease incentives in exchange for significantly increasing the crop share components.

In addition, we recorded about 4.4 million of termination blade related Revenue in 2025, including $2 million in the fourth quarter compared to zero last year.

On the expense side, our recurring cash operating expenses increased for both comparable periods.

Speaker #4: Partially offsetting that and largely for the same reason, participation rents increased by about 9.3 million dollars on a quarterly basis and by 10.6 million dollars for the full year.

Lewis Parrish: Partially offsetting that, largely for the same reason, participation rents increased by about $9.3 million on a quarterly basis and by $10.6 million for the full year. This increase was further driven by stronger pistachio pricing compared to last year. Net profit from crop sales on our direct operated farms was about $2.6 million for 2025, which is our first harvest year. However, the full impact of this 2025 harvest is not yet reflected in our financial results. While we did expense a full year of growing costs, we have not yet recognized a full year of revenues, particularly on the pistachios.

Speaker #4: This increase was further driven by stronger pistachio pricing compared to last year. Net profit from crop sales and our direct operated farms was about 2.6 million dollars 2025 for 2025, which is our first harvest year.

Total related parties fees, fell by about $200,000 for the year as primarily due to a lower base management fee resulting from recent Farm sales. What was all said by a higher administration fee during the fourth quarter?

Property, property expenses, increase for both periods and it's mainly driven by the cost of supplemental water. We were required to provide a 1 of our properties pursuant to the lease

Speaker #4: However, the full impact of this 2025 harvest is not yet reflected in our financial results. While we did expense a full year of growing costs, we have not yet recognized a full year of revenues, particularly on the pistachios.

As well as higher Insurance costs and property taxes incurred at 1 of our direct operated profits.

Gina expenses decline in both periods primarily due to lower professional fees, incurred, during the current year.

And 1 note on cash flows.

Speaker #4: As David mentioned, the final marketing bonus payment for the '25 pistachio crop will be recognized later in 2026, thus creating a timing difference compared to 2024 when this property was fully leased.

Lewis Parrish: As David Gladstone mentioned, the final marketing bonus payment for the 25 pistachio crop will be recognized later in 2026, thus creating a timing difference compared to 2024, when this property was fully leased. In addition, we recorded about $4.4 million of termination related revenue in 2025, including $2 million in Q4, compared to $0 last year. On the expense side, our recurring cash operating expenses increased for both comparable periods. Total related party fees fell by about $200,000 for the year. That's primarily due to a lower base management fee resulting from recent farm sales, but was offset by a higher administration fee during Q4.

Cash flows from operations declined, largely due to timing differences between leasing versus operating Farms.

Which is particularly true in the first year of operations.

Speaker #4: In addition, we recorded about 4.4 million dollars of termination-related revenue in 2025, including $2 million in the fourth quarter, compared to zero last year.

Again for our direct operated Farms, almost all the cash for growing costs went out during 2025, While most of the cash proceeds will be received in 2026.

In addition regarding the increased participation rates from the lease and Lease modifications.

Speaker #4: On the expense side, our recurring cash operating expenses increased for both comparable periods. Total related party fees fell by about $200,000 for the year, as primarily due to a lower base management fee resulting from recent farm sales.

A significant portion of the cash payments was received in early 2026. Creating another year-over-year tiny difference in operating cash flows.

Speaker #4: What was offset by a higher administration fee during the fourth quarter. Property operating expenses increased for both periods, and it's mainly driven by the cost of supplemental water we were required to provide on one of our properties pursuant to the lease as well as higher insurance costs and property taxes incurred on one of our direct operated properties.

According to liquidity, we have about 85 million in immediately available capital in over 185 million of unpledged properties. That can be used as additional collateral.

Lewis Parrish: Property operating expenses increased for both periods, and it's mainly driven by the cost of supplemental water we were required to provide on one of our properties pursuant to the lease, as well as higher insurance costs and property taxes incurred on one of our direct operated properties. G&A expenses declined in both periods, primarily due to lower professional fees incurred during the current year. One note on cash flows. Cash flows from operations declined largely due to timing differences between leasing versus operating farms, which is particularly true in the first year of operations. Again, for our direct operated farms, almost all the cash for growing costs went out during 2025, while most of the cash proceeds will be received in 2026.

We are in discussions with a couple of lenders to add certain of these properties to either existing or new facilities.

Speaker #4: G&A expenses declined in both periods, primarily due to lower professional fees incurred during the current year. And one note on cash flows: cash flows from operations declined largely due to timing differences between leasing versus operating farms.

Currently about 98% of our borrowings are fixed rates that weighted average interest rate of 3.39% locked in for another 2.7%. This has helped Shield us from the interest rate volatility we've seen over the past few years

Looking ahead. We have about 17 million dollars of scheduled principal amortization payments due over the next 12 months.

Speaker #4: Which is particularly true in the first year of operations. Again, for our direct operated farms, almost all the cash for growing costs went out during 2025, while most of the cash proceeds will be received in 2026.

We don't have any loans, maturing over the next year, but we do have about 160 million dollars of loans. With fixed rate terms, that are scheduled to reset over the next 12 months though, the loans themselves are not returning.

Speaker #4: In addition, regarding the increased participation rents from the lease from lease modifications, a significant portion of the cash payments was received in early 2026, creating another year-over-year timing difference in operating cash flows.

Lewis Parrish: In addition, regarding the increased participation rents from the recent release modifications, a significant portion of the cash payments was received in early 2026, creating another year-over-year timing difference in operating cash flows. Turning to liquidity, we have about $85 million in immediately available capital and over $185 million of unpledged properties that can be used as additional collateral. We are in discussions with a couple of lenders to add certain of these properties to either existing or new facilities. Currently, about 98% of our borrowings are at fixed rates, with a weighted average interest rate of 3.39% locked in for another 2.7 years. This has helped shield us from the interest rate volatility we've seen over the past few years.

This includes the 135 million of loans under the MetLife facility that are scheduled to reprice in January of 2027.

And finally regarding our common distributions in January, we declared a monthly dividend of 4.67 cents per share for the first quarter of 2026.

Speaker #4: Turning to liquidity, we have about $85 million in immediately available capital and over $185 million of unpledged properties that can be used as additional collateral.

Our current stock price of $11.51, this represents a 4.9% annualized yield, which is above the wheat, sector average.

With that, I'll turn it back over to David.

Speaker #4: We are in discussions with a couple of lenders to add certain of these properties to either existing or new facilities. Currently, about 98% of our borrowings are at fixed rates, with a weighted average interest rate of 3.39% locked in for another 2.7 years.

Uh, thank you Luis. Good report.

Nice to know that we're in the strong capital.

Speaker #4: This has helped shield us from the interest rate volatility we've seen over the past few years. Looking ahead, we have about $17 million of scheduled principal amortization payments due over the next 12 months.

Lewis Parrish: Looking ahead, we have about $17 million of scheduled principal amortization payments due over the next 12 months. We don't have any loans maturing over the next year, but we do have about $160 million of loans with fixed rate terms that are scheduled to reset over the next 12 months, though the loans themselves are not maturing. This includes $135 million of loans under the MetLife facility that are scheduled to reprice in January 2027. Finally, regarding our common distributions, in January, we declared a monthly dividend of $0.0467 per share for Q1 2026. At our current stock price of $11.51, this represents a 4.9% annualized yield, which is above the REIT sector average.

We are staying active in the market, so we're ready to go. If a good acquisition opportunity comes along, but as mentioned earlier, we're still being cautious on the acquisition process because our cost of capital remains very high.

Overall demand for p Prime farmland.

Speaker #4: We don't have any loans maturing over the next year, but we do have about $160 million of loans with fixed-rate terms that are scheduled to reset over the next 12 months.

Varies and vegetables, remain stable across most of our regions.

Partially a, particularly along the coast.

Speaker #4: Though the loans themselves are not maturing. This includes $135 million of loans under the MetLife facility that are scheduled to reprice in January of 2027.

We also started seeing some signs of improvements in pricing and broader economics.

Around those crops.

Speaker #4: And finally, regarding our common distributions, in January we declared a monthly dividend of 4.67 cents per share for the first quarter of 2026. At our current stock price of $11.51, this represents a 4.9% annualized yield, which is above the REIT sector average.

So, we're hopeful that the worst may be behind us.

But it's still too early to say, whether we are fully in the clear or not.

Speaker #4: With that, I'll turn it back over to David.

Lewis Parrish: With that, I'll turn it back over to David.

Overall the long run. We expect inflation particularly in the food sector to continue to move higher. And we expecting the badges of undying, Farmland to increase over time as a result

David Gladstone: Well, thank you, Lewis. Good report. Nice to know that we're in strong capital position. We are staying active in the market. We're ready to go if a good acquisition opportunity comes along. As mentioned earlier, we're still being cautious on the acquisition front because our cost of capital remains very high. Overall demand for prime farmland, growing berries and vegetables remain stable across most of our regions, partially, particularly along the coast. We also started seeing some signs of improvements in pricing and broader economics around those crops. We're hopeful that the worst may be behind us, but it's still too early to say whether we are fully in the clear or not.

Speaker #5: Thank you, Lewis. Good report. Nice to know that we're in a strong capital position. We are staying active in the market, so we're ready to go if a good acquisition opportunity comes along.

We do expect.

Speaker #5: But as mentioned earlier, we're still being cautious on the acquisition front because our cost of capital remains very high. Overall demand for prime farmland growing berries and vegetables remained stable across most of our regions.

This to especially be true with healthy foods such as fresh fruits and vegetables and nuts. Like we grow for people and we are big producer these days.

So now I'll open it up to some questions from those who are listening in operator. Would you come on? Please and show them how they can ask some questions.

Speaker #5: Partially, particularly along the coast, we also started seeing some signs of improvements in pricing in broader economics. Around those crops. So we're hopeful that the worst may be behind us, but it's still too early to say whether we're fully in the clear or not.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 to remove yourself from the queue and for participants using speaker equipment and may be necessary to pick up the handset before pressing the star keys.

1 moment, please while we pull for questions.

Speaker #5: Overall, the long run, we expect inflation particularly in the food sector to continue to move higher and we expect in the values of underlying farmland to increase over time as a result.

David Gladstone: Overall, the long run, we expect inflation, particularly in the food sector, to continue to move higher, we're expecting the values of underlying farmland to increase over time as a result. We do expect this to especially be true with healthy foods, such as fresh fruits, vegetables, and nuts, like we grow for people, we are a big producer these days. Now I'll open it up to some questions from those who are listening. Operator, would you come on, please, and show them how they can ask some questions?

Our first question comes from the line of Craig Cera with luc's capital markets. Please proceed with your question.

Speaker #5: We do expect this to especially be true with healthy foods such as fresh fruits and vegetables. And nuts like we grow. For people and we are big producers these days.

Repositioned Farms. Um so basically are you saying that they're under similarly similar leases where there won't be any base rents

Speaker #5: So now I'll open it up to some questions from those who are listening in operator. Would you come on, please, and show them how they can ask some questions?

and you'll have, you know, a portion of of higher participation rent expected in 26 and and then we'll some of that dribble into 2027. As we saw this past year, how should we think about that?

Yes, that's exactly correct. Well, it's the same structure that I mean that um,

Lewis Parrish: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue, and for participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment please, while we pull for questions. Our first question comes from the line of Craig Kucera with Lucid Capital Markets. Please proceed with your question.

Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue, and for participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment please, while we pull for questions. Our first question comes from the line of Craig Kucera with Lucid Capital Markets. Please proceed with your question.

Speaker #6: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please first star one on your telephone keypad.

Speaker #6: A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys.

The there'll be either with no base rent or possibly with a, a, a lease incentive. But it will be the same structure as we had in 2025, um, with

With the 25 crop. We had a, a good amount of the revenue recorded in 25 and then a portion in carryover in 26 and we'll have the same thing. Um,

Speaker #6: One moment, please, while we pull for questions. Our first question comes from the line of Craig Casera with Lucis Capital Markets. Please proceed with your question.

But 2026 will be able to benefit from the carryover from the 25 crop.

Plus the initial payment from the 2026 crop.

Speaker #7: Yeah, hey, good morning. I wanted to revisit your commentary regarding the five repositioned farms. So basically, are you saying that they're under similar leases where there won't be any base rents?

[Analyst] (Lucid Capital Markets): Yeah. Hey, good morning. I wanted to revisit your commentary, regarding the five repositioned farms. Basically, are you saying that they're under similar leases where there won't be any base rents, and you'll have, you know, a portion of higher participation rent expected in 2026, and then will some of that dribble into 2027 as we saw this past year? How should we think about that?

Craig Kucera: Yeah. Hey, good morning. I wanted to revisit your commentary, regarding the five repositioned farms. Basically, are you saying that they're under similar leases where there won't be any base rents, and you'll have, you know, a portion of higher participation rent expected in 2026, and then will some of that dribble into 2027 as we saw this past year? How should we think about that?

No, it won't to add to and to add to that, it won't. It won't dribble into 27. It'll be just like, you know, most of it for most of 26 crops Revenue will come in 27, so it's it won't be a little bit. It'll be just like this year.

Okay. And what was?

Speaker #7: And you'll have a portion of higher participation rent expected in '26 and then will some of that dribble into 2027 as we saw this past year?

I I I think at the time that you restructured, those leases you thought that

Speaker #7: How should we think about that? Yes, that's exactly correct. Well, it's the same structure that I mean, there'll be either with no base rent or possibly with a lease incentive, but it will be the same structure as we had in 2025 with a 25 crop.

Lewis Parrish: Yes, that's exactly correct. Well, it's the same structure that, I mean, that, they'll be there with no base rent or possibly with a lease incentive, but it will be the same structure as we had in 2025. With the 25 crop, we had a good amount of the revenue recorded in 25, and then a portion carryover in 26, and we'll have the same thing. 2026, we'll be able to benefit from the carryover from the 25 crop, plus the initial payment from the 2026 crop.

I want to say maybe 75% would come through and um, you know, fourth quarter of 25. What? When you kind of step back and, and I know you've still got some marketing with the, with the pistachios. But as you think about that, what what was sort of, what would you say? The percentage was that was recognized here in fourth quarter, 25 and kind of what you expect in 26.

It's really on a Farm by Farm basis. I, I think for, for the pistachio Farms it, it

Speaker #7: We had a good amount of the revenue recorded in '25 and then a portion in carryover in '26, and we'll have the same thing, but in 2026 we'll be able to benefit from the carryover from the '25 crop plus the initial payment from the 2026 crop.

it probably will be closed between a 65 to 75% in the first year, but that is US estimating what the marketing bonus is going to be. It could turn out to be higher than that, and if that's the case and it, it would push a higher percentage in the following year.

Speaker #6: Okay, great. Well, and to add to that, it won't dribble into '27. It'll be just like most of it for most of '26 crops revenue will come in '27.

David Gladstone: It won't. To add to that, it won't dribble into 2027. It'll be just like, you know, most of it. For most of 2026 crops, revenue will come in 2027. It won't be a little bit, it'll be just like this year.

Bill Reiman: It won't. To add to that, it won't dribble into 2027. It'll be just like, you know, most of it. For most of 2026 crops, revenue will come in 2027. It won't be a little bit, it'll be just like this year.

Speaker #6: So it won’t be a little bit; it’ll be just like this year.

Speaker #7: Okay. And what was I think at the time that you restructured those leases, you thought that I want to say maybe 75% would come through and fourth quarter of '25.

[Analyst] (Lucid Capital Markets): Okay. What was, I think at the time that you restructured those leases, you thought that, I want to say maybe 75% would come through in, you know, Q4 2025. When you kind of step back, and I know you've still got some marketing with the pistachios, but as you think about that, what would you say the percentage was that was recognized here in Q4 2025 and kind of what you expect in 2026?

Craig Kucera: Okay. What was, I think at the time that you restructured those leases, you thought that, I want to say maybe 75% would come through in, you know, Q4 2025. When you kind of step back, and I know you've still got some marketing with the pistachios, but as you think about that, what would you say the percentage was that was recognized here in Q4 2025 and kind of what you expect in 2026?

Almonds. Um, a bit of a different story because, you know, some of our properties were in and built and expand on this more, but we're in, what's called a call Pool where, where we decide when to sell the crops or and and for those, for example, we have 1 property for the 25th where we haven't pulled the trigger yet um because we're seeing prices Trend in the positive direction and you want to wait and take advantage of that pricing.

Speaker #7: When you kind of step back and I know you've still got some marketing with the pistachios, but as you think about that, what was what would you say the percentage was that was recognized here in fourth quarter '25 and kind of what you expect in '26?

so for pistachios, I think the the percentage will generally hold true assuming that bonus payment

Stays what where it's been. But

Speaker #5: It's really on a farm-by-farm basis. I think for the pistachio farms, it probably will be close between a 65 to 75 percent in the first year, but that is us estimating what the marketing bonus is going to be.

Lewis Parrish: It's really on a farm-by-farm basis. I think for the pistachio farms, it probably will be close between the 65% to 75% in the first year, but that is us estimating what the marketing bonus is going to be. It could turn out to be higher than that, and if that's the case, then it would push a higher percentage in the following year. Almonds, a bit of a different story because, you know, some of our properties we're in, and Bill can expand on this more, but we're in what's called a call pool, well, where we decide when to sell the crops or...

And and I'll let Bill talk on this too. But we are seeing signs of that possibly being higher. So that, again, that would push the percentage higher in the subsequent year.

Bill anything to you want to add to that?

Yeah, I mean that's correct. Um you know, certainly on pistachios. We feel the

Speaker #5: It could turn out to be higher than that. And if that's the case, it would push a higher percentage in the following year.

Speaker #5: Almonds, a bit of a different story because some of our properties were in—and we built and expanded on this more—but we're in what's called a call pool, where we decide when to sell the crops.

Uh the likelihood of uh, increased bonus payments, you know, uh that that's increasing every day. Uh so we feel pretty strong about that. Um, and on, um, Lewis mentioned the almonds on the call Pool. Um, yeah.

Speaker #5: Or and for those, for example, we have one property for the 25 crop where we haven't pulled the trigger yet. Because we're seeing prices trend in the positive direction and we want to wait and take advantage of that pricing.

Lewis Parrish: For those, for example, we have one property for the 25 crop where we haven't pulled the trigger yet, because we're seeing prices trend in the positive direction, and we want to wait and take advantage of that pricing. For pistachios, I think the percentage will generally hold true, assuming that bonus payment stays where it's been. I'll let Bill talk on this too, but we are seeing signs of that possibly being higher. That, again, that would push the percentage higher in the subsequent year. Bill, anything to, you want to add to that?

Speaker #5: So for pistachios, I think the percentage will generally hold true, assuming that bonus payment stays where it's been. But—and I'll let Bill talk on this too—but we are seeing signs of that possibly being higher, so that, again, that would push the percentage higher in the subsequent year.

1 particular Farm. We we decided to make the call of when will sell and we're kind of holding out for some higher almond prices. But in that particular Farm, we did get, uh, car insurance, uh, payouts. So, uh, we're already, um, you know, we're already in positive territory as far as, uh, whether we made money or lost money on that farm, uh, but we still have the crop to small amount of crop to sell and we're just holding out for higher prices.

Got it just, uh, 1 more on this topic. Um, I guess are you saying, then that you would probably recognize, um, more sort of variable payments throughout the year than you typically would because you have

Speaker #5: Bill, anything you want to add to that?

Speaker #8: Yeah, I mean, that's correct. Certainly, on pistachios, we feel the likelihood of increased bonus payments is increasing every day, so we feel pretty strong about that.

David Gladstone: Yeah, I mean, that's correct. You know, certainly on pistachios, we feel the likelihood of increased bonus payments, you know, that's increasing every day. We feel pretty strong about that. Lewis mentioned the almonds on the call pool. Yeah, one particular farm, we decided to make the call of when we'll sell, and we're kind of holding out for some higher almond prices. In that particular farm, we did get crop insurance payouts. We're already, you know, in positive territory as far as whether we made money or lost money on that farm. We still have a small amount of crop to sell, and we're just holding out for higher prices.

Bill Reiman: Yeah, I mean, that's correct. You know, certainly on pistachios, we feel the likelihood of increased bonus payments, you know, that's increasing every day. We feel pretty strong about that. Lewis mentioned the almonds on the call pool. Yeah, one particular farm, we decided to make the call of when we'll sell, and we're kind of holding out for some higher almond prices. In that particular farm, we did get crop insurance payouts. We're already, you know, in positive territory as far as whether we made money or lost money on that farm. We still have a small amount of crop to sell, and we're just holding out for higher prices.

More control over when and at what price you sell the crop or or should we think about this that that this will mostly be recognized in the fourth quarter as far as what was earned in the you know in 2025?

Speaker #8: And Lewis mentioned the almonds on the call pool. Yeah, one particular farm we decided to make the call of when we'll sell and we're kind of holding out for some higher almond prices.

Speaker #8: But in that particular farm, we did get crop insurance payouts. So we're already we're already in positive territory as far as whether we made money or lost money on that farm.

I think we'll we'll have a little bit more in the first half of the year than we typically do. Um, just as Bill mentioned that we do have 1 potential processor, who announced that they will pay a portion of that marketing bonus early in April. So we will probably be able to pull some of that into q1, um, but other than than situations like that or maybe further adjustments to almond pricing. Um, we would probably see the most bulk of it coming in, in Q3 and, and especially Q4 again.

Speaker #8: But we still have the crop to a small amount of crop to sell and we're just holding out for higher prices.

Speaker #6: Got it. And just one more on this topic. I guess, are you saying then that you would probably recognize more sort of variable payments throughout the year than you typically would because you have more control over when and at what price you sell the crop?

[Analyst] (Lucid Capital Markets): Got it. Just one more on this topic. I guess, are you saying that you would probably recognize more sort of variable payments throughout the year than you typically would because you have more control over when and at what price you sell the crop? Should we think about this, that this will mostly be recognized in Q4 as far as what was earned in, you know, in 2025?

Craig Kucera: Got it. Just one more on this topic. I guess, are you saying that you would probably recognize more sort of variable payments throughout the year than you typically would because you have more control over when and at what price you sell the crop? Should we think about this, that this will mostly be recognized in Q4 as far as what was earned in, you know, in 2025?

Okay. That's that's the other. Yeah. The the other impact of the professional Market continues, its current Trend in our guaranteed base price goes up. Then that will increase the amount that we are able to uh you know, claim in, you know, within this calendar year and we we won't know that until probably the end of usually end of July.

Speaker #6: Or should we think about this that this will mostly be recognized in the fourth quarter as far as what was earned in the 2025?

Um, changing gears. Lou um what are your expectations for interest patronage here in the first quarter?

Speaker #5: I think we'll have a little bit more in the first half of the year than we typically do. Just as Bill mentioned, that we do have one pistachio processor who announced that they will pay a portion of that marketing bonus early in April.

Lewis Parrish: I think we'll have a little bit more in the first half of the year than we typically do. Just as Bill mentioned, that we do have 1 pistachio processor who announced they will pay a portion of that marketing bonus early in April, so we will probably be able to pull some of that into Q1. Other than situations like that or maybe further adjustments to almond pricing, we would probably see the most bulk of it come in Q3 and especially Q4 again.

um, I'd expect it to be anywhere from 10 to 15% less than, um, what we recognized in 2025 and that's

That's assuming the.

Speaker #5: So we will probably be able to pull some of that into Q1. But other than situations like that or maybe further adjustments to almond pricing, we would probably see the most bulk of it come in Q3 and especially Q4

Percentage of Interest gets that gets paid. That gets refunded is the same but um reflecting just uh, loan balance of decrease over the past year. As we've paid off some loans.

Okay.

Um,

You know, I see you raised 33 million in ATM. This quarter was the remainder of the series, The funded with cash, uh, on the balance sheet or the line of credit

Speaker #6: Okay, yeah.

[Analyst] (Lucid Capital Markets): Okay.

Craig Kucera: Okay.

Bill Reiman: Yeah, the other impact, if the pistachio market continues its current trend and our guaranteed base price goes up, then that will increase the amount that we are able to, you know, claim in, you know, within this calendar year. We won't know that until probably the end of July.

Speaker #8: The other impact of the pistachio market continuing as its current trend and our guaranteed base price goes up, then that will increase the amount that we are able to claim in within this calendar year.

line of credit we currently have about 10 million outstanding line of credit and that's um,

currently, at a 5.69% variable rate,

Got it, okay.

Speaker #8: And we won't know that till probably the end of usually end of July.

Uh just 1 more for me. And I know 1 of your competitors have been generating, you know, significantly higher returns through lending to Farmers and is seeing decent demand there.

Speaker #6: Okay. Changing gears, Lou, what are your expectations for interest patronage here in the first quarter?

[Analyst] (Lucid Capital Markets): Okay. Changing gears, Lou, what are your expectations for interest patronage here in Q1?

Craig Kucera: Okay. Changing gears, Lou, what are your expectations for interest patronage here in Q1?

Um, you know, given this somewhat tougher, farming economy is that something you guys are, are looking at a little harder. Um, I I believe you capped that type of activity to 5% of assets, but would just like to get your read on that situation.

Lewis Parrish: I'd expect it to be anywhere from 10% to 15% less than what we recognized in 2025. That's assuming the percentage of interest that gets paid, that gets refunded is the same, reflecting just a loan balance decrease over the past year as we've paid off some loans.

Speaker #4: I'd expect it to be anywhere from 10% to 15% less than what we recognize in 2025. And that's assuming the percentage of interest that gets paid and that gets refunded is the same, but reflecting just the loan balance decrease over the past year as we've paid off some loans.

Uh We've we've had discussions um about getting a loan program started up but we we haven't pulled the trigger yet. It's it's something that

we may continue to.

To discuss. But it just at this point we don't have any um, any plans to any solid solid plans to to put that program in action yet.

Speaker #6: Okay. I see you raised $33 million in ATM this quarter. Was the remainder of the series that you funded with cash on the balance sheet or the line of credit?

[Analyst] (Lucid Capital Markets): Okay. you know, I see you raised $33 million in ATM this quarter. Was the remainder of the Series D funded with cash on the balance sheet or the line of credit?

Craig Kucera: Okay. you know, I see you raised $33 million in ATM this quarter. Was the remainder of the Series D funded with cash on the balance sheet or the line of credit?

Okay, I think that I think. Oh, go ahead.

Bill.

Speaker #4: Line of credit. We currently have about $10 million outstanding on the line of credit. And that's currently at a 5.69% variable rate.

Lewis Parrish: Line of credit. We currently have about $10 million outstanding on line of credit, and that's currently at a 5.69% variable rate.

Oh, I was just going to say, I would, I would say long term, that's something. We we we're really keeping an eye on, but I think just current economic conditions, uh,

Speaker #6: Got it. Okay. Just one more for me. I know one of your competitors have been generating significantly higher returns through lending to farmers and is seeing decent demand there.

[Analyst] (Lucid Capital Markets): Got it. Okay. Just one more for me. I know one of your competitors have been generating, you know, significantly higher returns through lending to farmers and is seeing decent demand there. You know, given this somewhat tougher farming economy, is that something you guys are looking at a little harder? I believe you capped that type of activity to 5% of assets, but would just like to get your read on that situation.

Craig Kucera: Got it. Okay. Just one more for me. I know one of your competitors have been generating, you know, significantly higher returns through lending to farmers and is seeing decent demand there. You know, given this somewhat tougher farming economy, is that something you guys are looking at a little harder? I believe you capped that type of activity to 5% of assets, but would just like to get your read on that situation.

Speaker #6: Given this somewhat tougher farming economy, is that something you guys are looking at a little harder? I believe you capped that type of activity to 5% of assets, but would just like to get your read on that situation.

You know, we've been really, we've looked at some loan deals. Uh, but with current economic conditions, uh, it's just something we just haven't, we haven't felt that the risk return profile was was really right for us at this time, but it's something that we continue to look at continue to get inquiries and and probably long term is something we'll we'll want to we'll eventually. Uh, we'll eventually make some moves on.

Okay, thanks.

Lewis Parrish: We've had discussions about getting a loan program started up, but we haven't pulled the trigger yet. It's something that we may continue to discuss, but at this point, we don't have any solid plans to put that program in action yet.

Speaker #4: We've had discussions about getting a loan program started up, but we haven't pulled the trigger yet. It's something that we may continue to discuss, but at this point, we don't have any solid plans to put that program in action yet.

Q4 2025 Gladstone Land Corp Earnings Call

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