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BORROWINGS | 9 Months Ended
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Sep. 30, 2025
Debt Disclosure [Abstract] |
BORROWINGS | BORROWINGS Our borrowings as of September 30, 2025, and December 31, 2024, are summarized below (dollars in thousands):
| Carrying Value as of |  | As of September 30, 2025
| September 30, 2025 |  | December 31, 2024 |  | Stated Interest Rates(1) (Range; Wtd Avg) |  | Maturity Dates (Range; Wtd Avg)
Variable-rate revolving lines of credit | $ | 200 |  |  | $ | 3,600 |  |  | 6.30% |  | 12/15/2033
Notes and bonds payable: |  |  |  |  |  |  |
Fixed-rate notes payable | $ | 459,873 |  |  | $ | 493,363 |  |  | 2.45%–6.97%; 3.70% |  | 11/27/2025–7/1/2051; Jan 2033
Fixed-rate bonds payable | 22,331 |  |  | 32,946 |  |  | 3.13%–4.57%; 3.57% |  | 3/13/2028–12/30/2030; March 2029
Total notes and bonds payable | 482,204 |  |  | 526,309 |  |  |  |  |
Debt issuance costs – notes and bonds payable | (2,048) |  |  | (2,387) |  |  | N/A |  | N/A
Notes and bonds payable, net | $ | 480,156 |  |  | $ | 523,922 |  |  |  |  |
Total borrowings, net | $ | 480,356 |  |  | $ | 527,522 |  |  |  |  |
(1)Where applicable, stated interest rates are before interest patronage (as described below). As of September 30, 2025, the above borrowings were collateralized by certain of our farms with an aggregate net book value of approximately $971.8 million. The weighted-average stated interest rate charged on the above borrowings (excluding the impact of debt issuance costs and before any interest patronage, or refunded interest) was 3.81% and 3.80% for the three and nine months ended September 30, 2025, respectively, as compared to 3.83% and 3.82% for the three and nine months ended September 30, 2024, respectively. In addition, 2024 interest patronage from our Farm Credit Notes Payable (as defined below) resulte d in a 21.9% reduction (approximately 101 basis points) to the stated interest rates on such borrowings. See below under “—Farm Credit Notes Payable—Interest Patronage” for further discussion on interest patronage. As of September 30, 2025, we were in compliance with all covenants applicable to the above borrowings. MetLife Facility As amended, our credit facility with Metropolitan Life Insurance Company (“MetLife”) consists of $75.0 million of revolving equity lines of credit (the “MetLife Lines of Credit”), a $75.0 million long-term note payable (the “2020 MetLife Term Note”), and a $100.0 million long-term note payable (the “2022 MetLife Term Note,” and together with the MetLife Lines of Credit and the 2020 MetLife Term Note, the “MetLife Facility”). The following table summarizes the pertinent terms of the MetLife Facility as of September 30, 2025 (dollars in thousands, except for footnotes):
Issuance |  | Aggregate Commitment |  | Maturity Dates |  | Principal Outstanding |  | Interest Rate Terms |  | Undrawn Commitment(1) |
MetLife Lines of Credit |  | $ | 75,000 |  |  | 12/15/2033 |  | $ | 200 |  |  | 3M Term SOFR + 2.00% | (2) | $ | 74,800 |  |
2020 MetLife Term Note |  | 75,000 |  | (3) | 1/5/2030 |  | 35,620 |  |  | 2.75%, fixed through 1/4/2030 | (4) | 39,380 |  |
2022 MetLife Term Note |  | 100,000 |  | (3) | 1/5/2032 |  | — |  |  | (4) |  | 100,000 |  |
Totals |  | $ | 250,000 |  |  |  |  | $ | 35,820 |  |  |  |  | $ | 214,180 |  |
(1)Based on the properties that were pledged as collateral under the MetLife Facility, as of September 30, 2025, the maximum additional amount we could draw under the facility was approximately $110.6 million. (2)The interest rate on the MetLife Lines of Credit is subject to a minimum annualized rate of 2.50%, plus an unused fee ranging from 0.10% to 0.20% on undrawn amounts (based on the balance drawn under each line of credit). (3)If the aggregate commitments under the 2020 MetLife Term Note and the 2022 MetLife Term Note are not fully utilized by December 31, 2026, MetLife has no obligation to disburse the additional funds under either note. (4)Interest rates on future disbursements under each of the 2020 MetLife Term Note and the 2022 MetLife Term Note will be based on prevailing market rates at the time of such disbursements. In addition, through December 31, 2026, the 2020 MetLife Term Note and the 2022 MetLife Term Note are each subject to an unused fee ranging from 0.10% to 0.20% on undrawn amounts (based on the balance drawn under the respective note). During the nine months ended September 30, 2025, we entered into a new loan agreement with MetLife, as summarized below (dollars in thousands):
|  | Date of Issuance |  | Amount |  | Maturity Date |  | Principal Amortization |  | Stated Interest Rate |  |  |  | Interest Rate Terms
|  | 4/11/2025 |  | $10,600 | (1) | 2/15/2030 |  | 28.6 years |  | 6.31% |  |  |  | Fixed through 2/14/2028; variable thereafter
(1)The majority of proceeds from this loan were used to repay a $10.3 million maturing loan that bore interest at 3.85%. Farmer Mac Facility Through certain subsidiaries of our Operating Partnership, we have entered into a bond purchase agreement (the “Bond Purchase Agreement”) with Federal Agricultural Mortgage Corporation (“Farmer Mac”) and Farmer Mac Mortgage Securities Corporation (the “Bond Purchaser”) for a secured note purchase facility (the “Farmer Mac Facility”). As amended from time to time, the Farmer Mac Facility currently provides for bond issuances up to an aggregate amount of $225.0 million. Pursuant to the Bond Purchase Agreement, as further amended on June 2, 2023, we may issue new bonds under the Farmer Mac Facility through December 31, 2026, and the final maturity date for new bonds issued under the facility will be the date that is ten years from the applicable issuance date. We did not issue any new bonds under the Farmer Mac Facility during the nine months ended September 30, 2025. As of September 30, 2025, we had approximately $22.3 million of bonds issued and outstanding under the Farmer Mac Facility. Farm Credit Notes Payable From time to time since September 2014, through certain subsidiaries of our Operating Partnership, we have entered into various loan agreements (collectively, the “Farm Credit Notes Payable”) with various different Farm Credit associations (collectively, “Farm Credit”). We did not enter into any new loan agreements with Farm Credit during the nine months ended September 30, 2025. Interest Patronage Interest patronage, or refunded interest, on our borrowings from Farm Credit is generally recorded upon receipt and is included within Other income on our Condensed Consolidated Statements of Operations and Comprehensive Income. Receipt of interest patronage typically occurs in the first half of the calendar year following the calendar year in which the respective interest expense is accrued. During the three months ended March 31, 2025, we recorded interest patronage of approximately $1.7 million related to interest accrued on the Farm Credit Notes Payable during the year ended December 31, 2024, and during the three months ended September 30, 2024, we received approximately $108,000 of interest patronage, as certain Farm Credit associations paid a portion of the 2024 interest patronage (which relates to interest accrued during 2024 but typically would be paid during the first half of 2025) early. In total, 2024 interest patronage resulted in a 21.9% reduction (approximately 101 basis points) to the interest rates on such borrowings. Interest patronage is paid at Farm Credit’s discretio n, and we are therefore unable to estimate the amount of interest patronage to be received, if any, related to interest accrued during 2025 on our Farm Credit Notes Payable. Debt Service – Aggregate Maturities Scheduled principal payments of our aggregate notes and bonds payable as of September 30, 2025, for the succeeding years are as follows (dollars in thousands):
Period |  | Scheduled Principal Payments
For the remaining three months ending December 31: | 2025 |  | $ | 2,736 |
For the fiscal years ending December 31: | 2026 |  | 17,338 |
| 2027 |  | 50,482 |
| 2028 |  | 76,828 |
| 2029 |  | 152,247 |
| 2030 |  | 93,891 |
| Thereafter |  | 88,682 |
|  |  | $ | 482,204 |
Fair Value ASC 820, “Fair Value Measurement (Subtopic 820)” (“ASC 820”), provides a definition of fair value that focuses on the exchange (exit) price of an asset or liability in the principal, or most advantageous market, and prioritizes the use of market-based inputs to the valuation. ASC 820-10 establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: •Level 1 — inputs that are based upon quoted prices (unadjusted) for identical assets or liabilities in active markets; •Level 2 — inputs are based upon quoted prices for similar assets or liabilities in active or inactive markets or model-based valuation techniques, for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — inputs are generally unobservable and significant to the fair value measurement. These unobservable inputs are generally supported by little or no market activity and are based upon management’s estimates of assumptions that market participants would use in pricing the asset or liability. As of September 30, 2025, the aggregate fair value of our notes and bonds payable was approximately $458.5 million, as compared to an aggregate carrying value (excluding unamortized related debt issuance costs) of approximately $482.2 million. The fair value of our notes and bonds payable is valued using Level 3 inputs under the hierarchy established by ASC 820-10 and is calculated based on a discounted cash flow analysis, using discount rates based on management’s estimates of market interest rates on debt with comparable terms. Further, due to the revolving nature and variable interest rates applicable to the MetLife Lines of Credit, their aggregate fair value as of September 30, 2025, is deemed to approximate their aggregate carrying value of $200,000. Interest Rate Swap Agreements In order to hedge our exposure to variable interest rates, we have entered into various interest rate swap agreements in connection with certain of our mortgage financings. In accordance with these swap agreements, we will pay our counterparty a fixed interest rate on a quarterly basis and receive payments from our counterparty equal to the respective stipulated floating rates. We have adopted the fair value measurement provision for these financial instruments, and the aggregate fair value of our interest rate swap agreements is recorded in Other assets, net or Other liabilities, net, as appropriate, on our accompanying Condensed Consolidated Balance Sheets. Generally, in the absence of observable market data, we will estimate the fair value of our interest rate swaps using estimates of certain data points, including estimated remaining life, counterparty credit risk, current market yield, and interest rate spreads of similar securities as of the measurement date. In accordance with the Financial Accounting Standards Board’s fair value measurement guidance, we have made an accounting policy election to measure the credit risk of our derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. As of September 30, 2025, our interest rate swaps were valued using Level 2 inputs. In addition, we have designated our interest rate swaps as cash flow hedges. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is initially recorded in Accumulated other comprehensive income on the accompanying Condensed Consolidated Balance Sheets and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects. During the next 12 months, we estimate that an additional $1.4 million will be reclassified as a reduction to interest expense. We had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk as of September 30, 2025, and December 31, 2024 (dollars in thousands):
Period |  | Number of Instruments |  | Aggregate Notional Amount |  |  |  |
As of September 30, 2025 |  | 4 |  | $ | 65,176 |  |  |  |  |
As of December 31, 2024 |  | 4 |  | 67,067 |  |  |  |  |
The following table presents the fair value of our interest rate swaps as well as their classification on the Condensed Consolidated Balance Sheets as of September 30, 2025, and December 31, 2024 (dollars in thousands):
|  |  |  | Derivative Asset (Liability) Fair Value
Derivative Type |  | Balance Sheet Location |  | September 30, 2025 |  | December 31, 2024
Derivatives Designated as Hedging Instruments: |  |  |  |  |  |
Interest rate swaps |  | Other assets, net |  | $ | 5,049 |  |  | $ | 7,632 |
Total |  |  |  | $ | 5,049 |  |  | $ | 7,632 |
The following table presents the amount of (los s) income recognized in comprehensive (loss) income within our condensed consolidated financial statements for the three and nine months ended September 30, 2025 and 2024 (dollars in thousands):
| For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Derivative in cash flow hedging relationship: |  |  |  |  |  |  |
Interest rate swaps | $ | (409) |  |  | $ | (2,565) |  |  | $ | (2,583) |  |  | $ | (1,591) |
Total | $ | (409) |  |  | $ | (2,565) |  |  | $ | (2,583) |  |  | $ | (1,591) |
Credit-risk-related Contingent Features We have agreements with each of our derivative counterparties that contain a provision where if we default on any of our indebtedness, then we could also be declared in default on our derivative obligations. As of September 30, 2025, we did not have any derivatives in a net liability position, nor have we posted any collateral related to these agreements.

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