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Concentration Risk

3 Months Ended

Mar. 31, 2024

Note 3—Concentration Risk

Credit Risk

For the three months ended March 31, 2024, the Company had no significant tenants representing a tenant concentration of 10% or greater of period revenue. Revenue for the three months ended March 31, 2024 is not necessarily indicative of actual revenue for the entire year ending December 31, 2024. The Company receives a significant portion of its variable rental payments in the fourth quarter of each year, typically resulting in at least one tenant concentration of 10% or greater revenue in that quarter and for the year. If a significant tenant fails to make rental payments to the Company or elects to terminate its leases, and the land cannot be re-leased on satisfactory terms, there may be a material adverse effect on the Company’s financial performance.

Geographic Risk

The following table summarizes the percentage of approximate total acres owned as of March 31, 2024 and 2023, and the fixed and variable rent recorded by the Company for the three months ended March 31, 2024 and 2023 by location of the farm:


	Approximate %				Rental Income ⁽¹⁾
	of total acres				For the three months ended
	As of March 31,				March 31,
Location of Farm ⁽²⁾	2024		2023		2024		2023
Corn Belt	34.5	%	28.8	%	46.7	%	43.5	%
Delta and South	19.6	%	19.2	%	10.8	%	12.9	%
High Plains	16.2	%	20.2	%	6.4	%	9.8	%
Southeast	21.4	%	24.7	%	21.9	%	24.5	%
West Coast	8.3	%	7.1	%	14.2	%	9.3	%
	100.0	%	100.0	%	100.0	%	100.0	%

⁽¹⁾

Due to regional disparities in the use of leases with variable rent and seasonal variations in the recognition of variable rent revenue, regional comparisons by rental income are not fully representative of each region’s income-producing capacity until a full year is taken into account.

⁽²⁾

Corn Belt includes farms located in Illinois, Indiana, Iowa, Missouri, eastern Nebraska and Ohio. Delta and South includes farms located in Arkansas, Louisiana, Mississippi and Oklahoma. High Plains includes farms located in Colorado, Kansas and Texas. Southeast includes farms located in Florida, North Carolina and South Carolina. West Coast includes farms located in California.