Gladstone Land (LAND) investor relations material

Executive summary

• Lease modifications shifted revenue from fixed base rents to participation rents, delaying recognition until crop sales and increasing exposure to crop performance and market prices.

• Net loss attributable to common stockholders was $13.9 million ($0.38/share) for Q2 2025, compared to a $6.7 million loss in Q2 2024.

• No new farm acquisitions in 2025; focus on optimizing existing assets, with several farm sales generating $15.7 million net gain in H1 2025.

• Portfolio size, occupancy, and cash flows declined year-over-year, with occupancy at 95.9% and 150 farms owned as of June 30, 2025.

• Water security improved through infrastructure investment and water purchases, positioning the portfolio for future droughts.

Financial highlights

• Q2 2025 total operating revenues fell 42.3% year-over-year to $12.3 million, with net loss to common shareholders of $13.9 million.

• AFFO per share was $(0.10) for Q2 2025, down from $0.10 in Q2 2024; FFO per share was $(0.09) for Q2 2025.

• Cash flows from operations for H1 2025 were $8.4 million, down from $19.3 million year-over-year.

• Dividends declared per common share remained at $0.14 for Q2 2025.

• Total indebtedness decreased 8.7% year-over-year to $558.9 million.

Outlook and guidance

• Majority of participation rent revenue from modified leases expected to be recognized in Q4 2025 and into 2025.

• Lease changes anticipated to reduce fixed base rents by $17 million in 2025, shifting revenue to participation rents.

• Management may consider asset sales if satisfactory lease terms are not reached.

• Maintaining current dividend level, with reevaluation planned after 2025 harvest results.

• Market trends for pistachios and almonds are positive, supporting future participation rent income.