LANDO · Gladstone Land Corporation

Consistent with that objective, the Company elevated its focus on portfolio rationalization. Real estate assets held for sale increased materially during the fiscal year, underscoring an intentional effort to reposition the portfolio toward higher-quality, more stable farmland assets. This initiative was supported by an increase in gains on dispositions — a reflection not of isolated transactions but of a coherent strategy to redeploy capital from underperforming or non-core holdings. These gains played a meaningful role in offsetting other income statement pressures, including impairments and the drag from fixed preferred dividend obligations.

From a liquidity perspective, operating cash flow declined, reducing the Company’s ability to internally fund both preferred dividends and debt service. As a result, financing activity remained essential to maintaining operational continuity and meeting contractual obligations. The widening net loss attributable to common stockholders further illustrates the impact of these structural features: preferred dividend requirements represent a fixed claim on earnings that must be satisfied before any residual income flows to common shareholders. This dynamic — inherent to Gladstone Land’s REIT structure and capital stack — continues to define the earnings profile for common equity holders, especially during periods of margin compression or portfolio transition. Collectively, these developments highlight a company navigating a deliberate, multi-year transition — balancing near-term capital discipline with longer-term portfolio quality and sustainability.