Through certain of our wholly-owned subsidiaries and pursuant to management agreements with third-party operators, we currently manage (i) a 2,409-acre property (consisting of two farms) in Kern County, California, including 2,293 acres of almond and pistachio orchards, and (ii) a 165-acre farm in Umatilla County, Oregon, including 135 acres of wine grape vineyards.

As of September 30, 2026, and December 31, 2025, we had incurred approximately $9.4 million and $1.7 million, respectively, of growing costs related to crops to be harvested during 2026. These costs primarily relate to irrigation, pest management, fertilization, and labor and have been capitalized as crop inventory. Crop inventory is stated at the lower of cost or net realizable value. As the related crops are harvested and sold later in 2026 and throughout 2027, the associated costs will be recognized as cost of sales. We expect to incur additional costs related to harvesting and post-harvest handling, which will likewise be expensed to the cost of sales at the time of sale.

Revenue from the sale of crops and the related cost of sales for the three and nine months ended September 30, 2026, are shown in the following table (dollars in thousands):


	Three Months Ended September 30, 2026		Nine Months Ended September 30, 2026

Crop sales(1)(2)	$	2,939	$	5,021
Cost of sales(1)(3)	—		(414)

(2)The majority of this revenue relates to a grower partner bonus associated with the 2025 pistachio crop, which is recognized as the amount becomes determinable and collectible. The related growing costs for this crop were previously expensed during the three months ended December 31, 2025.

(3)Reflective of a change in estimate, as the actual water and utility usage during the 2025 crop year was lower than previously estimated.

In addition, during the nine months ended September 30, 2026, we completed the harvest of the remaining orange crop on a farm in St. Lucie County, Florida, following the early termination of the prior tenant’s lease. The results of these operations are included in the table above. We did not recognize any crop sales revenue or related costs during the three or nine months ended September 30, 2025.