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Concentration Risk

12 Months Ended

Dec. 31, 2024

Note 3—Concentration Risk

Credit Risk

For the years ended December 31, 2024 and 2023, the Company had certain tenant concentrations as presented in the table below. If a significant tenant, representing a tenant concentration, 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 and the Company’s ability to continue operations. The following is a summary of our significant tenants:


	Rental income recognized				Approximate % of rental income
	For the years ended December 31,				For the years ended December 31,
($ in thousands)	2024		2023		2024			2023
Tenant A ⁽¹⁾	$	10,309	$	6,702		21.9	%		13.6	%

(1)

The Company has numerous permanent crop leases with major farming companies located in California.

Geographic Risk

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


	Approximate %				Rental Income ⁽¹⁾
	of total acres				For the years ended
	As of December 31,				December 31,
Location of Farm ⁽²⁾	2024		2023		2024		2023
Corn Belt	45.2	%	33.6	%	40.3	%	37.7	%
Delta and South	9.6	%	19.9	%	8.4	%	11.9	%
High Plains	22.3	%	16.4	%	6.0	%	9.1	%
Southeast	10.9	%	21.7	%	15.7	%	18.6	%
West Coast	12.0	%	8.4	%	29.6	%	22.7	%
	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 more relevant for full years than quarters or partial years.

(2)

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