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REAL ESTATE AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2024

The following table provides certain summary information about the 157 farms we owned as of December 31, 2024 (dollars in thousands, except for footnotes):


Location	No. of Farms	Total Acres	Farm Acres	Acre-feet of Water Assets	Net Cost Basis(1)		Encumbrances(2)
California(3)(4)(5)	63	34,845	32,321	55,387	$	840,374	$	372,780
Florida(6)	25	18,720	13,891	—	166,471		76,917
Washington	6	2,520	2,004	—	56,171		15,196
Arizona(7)	6	6,320	5,333	—	49,840		11,939
Colorado	12	32,773	25,577	—	45,579		13,849
Nebraska(6)	9	7,782	7,050	—	29,898		9,912
Oregon(8)	6	898	736	—	28,991		10,873
Michigan	12	1,245	778	—	15,204		8,663
Texas	1	3,667	2,219	—	8,026		—
Maryland	6	987	863	—	7,948		4,218
South Carolina	3	597	447	—	3,452		2,100
Georgia	2	230	175	—	2,222		1,600
North Carolina	2	310	295	—	2,076		—
New Jersey	3	116	101	—	2,059		1,185
Delaware	1	180	140	—	1,280		677
Totals	157	111,190	91,930	55,387	$	1,259,591	$	529,909

(1)Consists of the initial acquisition price (including the costs allocated to both tangible and intangible assets acquired and liabilities assumed), plus subsequent improvements and other capitalized costs associated with the properties, and adjusted for accumulated depreciation and amortization. Specifically, includes Total real estate, net and Lease intangibles, net; plus Real estate and related assets held for sale, net; plus long-term water assets, net above-market lease values, net lease incentives, and net investments in special-purpose LLCs included in Other assets, net; and less net below-market lease values and other deferred revenue included in Other liabilities, net; each as shown on the accompanying Consolidated Balance Sheets.

(2)Excludes approximately $2.4 million of debt issuance costs related to notes and bonds payable, included in Notes and bonds payable, net on the accompanying Consolidated Balance Sheets.

(3)Includes ownership in a special-purpose LLC that owns a pipeline conveying water to certain of our properties. As of December 31, 2024, this investment had a net carrying value of approximately $962,000 and is included within Other assets, net on the accompanying Consolidated Balance Sheet.

(4)Includes eight acres in which we own a leasehold interest via a ground lease with a private individual that expires in December 2040 and five acres in which we own a leasehold interest via a ground sublease with a California municipality that expires in December 2041. As of December 31, 2024, these two ground leases had a net cost basis of approximately $651,000 and are included in Lease intangibles, net on the accompanying Consolidated Balance Sheets.

(5)Includes 48,309 acre-feet of water stored with Semitropic Water Storage District, located in Kern County, California, and 7,078 surplus water credits in our account with Westlands Water District, located in Fresno County, California. See “—Investments in Water Assets” below for additional information.

(6)Includes certain properties classified as held for sale; see “—Real Estate Held for Sale” below for additional information.

(7)Includes two farms consisting of 1,368 total acres and 1,221 farm acres in which we own leasehold interests via two ground leases with the State of Arizona that expire in February 2025 and February 2032, respectively. As of December 31, 2024, these ground leases had an aggregate net cost basis of approximately $42,000 and are included in Lease intangibles, net on the accompanying Consolidated Balance Sheets.

(8)Includes ownership in a special-purpose LLC that owns certain irrigation infrastructure that provides water to two of our farms. As of December 31, 2024, this investment had a net carrying value of approximately $4.7 million and is included within Other assets, net on the accompanying Consolidated Balance Sheets.

Schedule of Components of Investments in Real Estate

The following table sets forth the components of our investments in tangible real estate assets as of December 31, 2024 and 2023, excluding real estate held for sale (dollars in thousands):


	December 31, 2024		December 31, 2023
Real estate:
Land and land improvements	$	743,141	$	792,277
Permanent plantings	349,761		359,131
Irrigation and drainage systems	169,098		168,545
Farm-related facilities	49,063		50,517
Other site improvements	13,569		13,272
Real estate, at cost	1,324,632		1,383,742
Accumulated depreciation	(167,782)		(142,212)
Real estate, net	$	1,156,850	$	1,241,530

Schedule of Carrying Value of Lease Intangibles and Accumulated Amortization for Each Intangible Asset or Liability Class

The following table summarizes the carrying value of certain lease intangible assets and the related accumulated amortization as of December 31, 2024 and 2023, excluding lease intangible assets related to real estate held for sale (dollars in thousands):


	December 31, 2024		December 31, 2023
Lease intangibles:
Leasehold interest – land	$	3,372	$	4,295
In-place lease values	1,798		2,470
Leasing costs	2,280		3,017
Other(1)	117		141
Lease intangibles, at gross cost	7,567		9,923
Accumulated amortization	(3,979)		(5,141)
Lease intangibles, net	$	3,588	$	4,782

(1)Other consists primarily of acquisition-related costs allocated to miscellaneous lease intangibles.

The following table summarizes the carrying values of certain lease intangible assets or liabilities (excluding those related to real estate held for sale) included in Other assets, net or Other liabilities, net, respectively, on the accompanying Consolidated Balance Sheets and the related accumulated amortization or accretion, respectively, as of December 31, 2024 and 2023 (dollars in thousands):


	December 31, 2024				December 31, 2023
Intangible Asset or Liability	Deferred Rent Asset (Liability)		Accumulated (Amortization) Accretion		Deferred Rent Asset (Liability)		Accumulated (Amortization) Accretion
Above-market lease values(1)	$	695	$	(198)	$	695	$	(121)
Below-market lease values(2)	(1,371)		561		(1,944)		624
Lease incentives and other deferred revenue, net(3)	14,192		(3,691)		675		(126)
	$	13,516	$	(3,328)	$	(574)	$	377

(1)Included as part of Other assets, net on the accompanying Consolidated Balance Sheets, and the related amortization is recorded as a reduction of Lease revenue, net on the accompanying Consolidated Statements of Operations and Comprehensive Income.

(2)Included as a part of Other liabilities, net on the accompanying Consolidated Balance Sheets, and the related accretion is recorded as an increase to Lease revenue, net on the accompanying Consolidated Statements of Operations and Comprehensive Income.

(3)Lease incentives are included as part of Other assets, net on the accompanying Consolidated Balance Sheets, and the related amortization is recorded as a reduction of Lease revenue, net on the accompanying Consolidated Statements of Operations and Comprehensive Income. Other deferred revenue is primarily attributable to tenant-funded improvements and is included as a part of Other liabilities, net on the accompanying Consolidated Balance Sheets, and the related accretion is recorded as an increase to Lease revenue, net on the accompanying Consolidated Statements of Operations and Comprehensive Income.

Schedule of Estimated Aggregate Amortization Expense

The estimated aggregate amortization expense to be recorded related to in-place lease values, leasing costs, and tenant relationships and the estimated net impact on lease revenue from the amortization of above-market lease values and lease incentives or accretion of above-market lease values and other deferred revenues for each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands):


Period		Estimated Amortization Expense		Estimated Net Increase (Decrease) to Lease Revenue
For the fiscal years ending December 31:	2025	$	443	$	(9,490)
	2026	983		(39)
	2027	326		1
	2028	324		(83)
	2029	382		(126)
	Thereafter	1,130		(451)
		$	3,588	$	(10,188)

Schedule Of Water Asset Investments

The following table summarizes the total acre-feet of banked water obtained through exercising these contracts as of December 31, 2024 (dollars in thousands):


Period Acquired	Acre-feet of Banked Water Available to Purchase per Contract	Acre-feet of Banked Water Purchased(1)	Value Attributed to Contract(2)		Cost to Exercise Contract		Total Carrying Value of Banked Water Purchased
Three months ended December 31, 2023	1,003	1,003	$	401	$	62	$	463
Three months ended March 31, 2024	2,306	2,306	923		141		1,064
Total	3,309	3,309	$	1,324	$	203	$	1,527

(1)All contracts to purchase additional banked water were exercised in the same quarter in which the respective contract was conveyed to us.

(2)Represents noncash income received during the respective periods. The straight-line impact of these receipts is included within Lease revenue, net on the accompanying Consolidated Statements of Operations and Comprehensive Income.

Schedule of Future Lease Payments

The following tables summarize the future net lease payments to be received under noncancellable leases as of December 31, 2024 (dollars in thousands):


Period		Tenant Lease Revenue(1)
For the fiscal years ending December 31,	2025	$	55,225
	2026	57,435
	2027	54,170
	2028	45,635
	2029	42,287
	Thereafter	141,060
		$	395,812

(1)Amounts are net of fixed lease incentive payments owed to tenants under certain lease agreements and excludes contingent rental payments, such as participation rents.