Note 3—Concentration Risk Credit Risk Revenue for the three and six months ended June 30, 2026 is not necessarily indicative of actual revenue for the entire year ending December 31, 2026. 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 of revenue in that quarter and for the year. 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. For the three and six months ended June 30, 2026 and 2025, the Company had tenant concentrations of 10% or greater of rental income, as presented in the table below. | | | | | | | | | | | | | | | | | | | | | | | | | | Rental Income Recognized | | | | | | | | | For the three months ended | | For the six months ended | | | | | | | | | June 30, | | June 30, | | ($ in thousands) | | | | | | | 2026 | | 2025 | | 2026 | | 2025 | | Tenant A | | | | | | | $ | 1,032 | | $ | 977 | | $ | 2,063 | | $ | 1,955 | | Tenant B | | | | | | | $ | 729 | | $ | 730 | | $ | 1,967 | | $ | 2,500 | | Tenant C | | | | | | | $ | 720 | | $ | 722 | | $ | 1,440 | | $ | 1,450 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Approximate % of Rental Income | | | | | | | | | For the three months ended | | For the six months ended | | | | | | | | | June 30, | | June 30, | | | | | | | | | 2026 | | 2025 | | 2026 | | 2025 | | Tenant A | | | | | | | | 18.1 | % | | 16.2 | % | | 17.2 | % | | 15.0 | % | Tenant B | | | | | | | | 12.8 | % | | 12.1 | % | | 16.4 | % | | 19.2 | % | Tenant C | | | | | | | | 12.6 | % | | 12.0 | % | | 12.0 | % | | 11.2 | % |
Geographic Risk The following table summarizes the percentage of approximate total acres owned as of June 30, 2026 and 2025, and the fixed and variable rent recorded by the Company for the three and six months ended June 30, 2026 and 2025 by location of the farm: | | | | | | | | | | | | | | | | | | | | | Approximate % | | | Rental Income (1) | | | of total acres | | | For the three months ended | | | For the six months ended | | | As of June 30, | | | June 30, | | | June 30, | Location of Farm (2) | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | 2026 | | 2025 | Corn Belt | | 51.8 | % | | 52.5 | % | | 67.5 | % | | 68.1 | % | | 64.6 | % | | 64.5 | % | Delta and South | | 9.2 | % | | 9.9 | % | | 5.7 | % | | 5.4 | % | | 5.4 | % | | 1.7 | % | High Plains | | 10.5 | % | | 9.7 | % | | 8.7 | % | | 7.0 | % | | 7.0 | % | | 7.5 | % | Southeast | | 14.5 | % | | 13.4 | % | | 3.5 | % | | 3.3 | % | | 3.4 | % | | 3.2 | % | West Coast | | 14.0 | % | | 14.5 | % | | 14.6 | % | | 16.2 | % | | 19.6 | % | | 23.1 | % | | | 100.0 | % | | 100.0 | % | | 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, Missouri and eastern Nebraska. Delta and South includes farms located in Arkansas and Louisiana. High Plains includes farms located in Colorado and Texas. Southeast includes farms located in South Carolina and West Virginia. West Coast includes farms located in California. |
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