Gladstone Land : Investor Presentation as of February 19, 2025

Published: 2025-03-27 12:02:08 ET LAND

Investor Presentation

As of February 19, 2025

Gladstone Land Overview

Owns farmland and farm-related facilities leased to high-quality farmers, primarily on a triple-net basis, meaning the farmer pays rent, insurance, maintenance, and taxes.

Currently owns 150 farms with approximately 103,000 total acres in 15 states and over 55,000 acre-feet of water assets in California, valued at a total of approximately $1.4 billion. Our acreage is currently 96.2% occupied*.

Primarily buys farmland used to grow healthy foods, such as fruits, vegetables, and nuts.

One of five public companies managed by an SEC-registered investment advisor with over $4.0 billion of assets under management and over 75 professionals.

Note:

* Based on farmable acreage; includes direct-operated farms.

Three Areas of Farming

PRIMARY FOCUS ANNUAL FRESH PRODUCEPERMANENT CROPS

TERTIARY FOCUS

GRAINS & OTHER CROPS

We believe that farmland growing fresh produce (e.g., fruits and vegetables) and certain permanent crops (e.g., blueberries and nuts) is a superior investment over land growing commodity crops (e.g., corn, wheat, and soy), due to:

▸ Higher profitability and rental income

▸ Lower price volatility

▸ Lower government dependency

▸ Lower storage costs

▸ Location typically closer to major urban populations, thus higher development potential

U.S. Farmland: Decreasing Supply, Increasing Demand

As available farmland to feed the world's growing population continues to decline, U.S. cropland has steadily appreciated in value. Further, we believe the amount of available farmland in the U.S. will conƟnue to decrease.

▸ Every year, large amounts of farmland are converted to suburban uses, such as housing subdivisions, schools, parks, office buildings, government buildings, and industrial buildings.

We believe climate change has already negatively impacted many growing regions across the world, putting prime farmland in optimal climates in even higher demand.

WORLD POPULATION1

ARABLE LAND PER CAPITA WORLDWIDE2

People(Billions)

AcresPerCapita

1960

1980

2000

2020

2040*

Developing regions Developed regions

Year

We believe a lower supply of arable land will lead to higher profitability for the most fertile farms, and will lead to steady appreciaƟon of value and rental growth

Note: * EsƟmated

5Sources: 1. United Nations, Department of Economic and Social Affairs, Population Division (2024). World Population Prospects: The 2024 Revision, Online EdiƟon.

2. (i) The World Bank, Food and Agriculture Organization, World Development Indicators (updated January 2025), and (ii) Food and Agriculture Organization of the United Nations,

Agricultural Development Economics Division, World Agriculture Towards 2040/2050, The 2012 Revision (latest version available).

U.S. Farmland: Low VolaƟlity & CorrelaƟon and Strong Returns

U.S. FARMLAND HAS EXPERIENCED LOWER VOLATILITY THAN BOTH THE S&P 500 AND THE MSCI US REIT INDEX, WHILE ALSO EXHIBITING LOW CORRELATION TO OTHER MAJOR ASSET CLASSES

STANDARD DEVIATION OF 25-YR

RETURNS: 2000-2024

25-YR CORRELATION OF FARMLAND TO

OTHER ASSET CLASSES

25-YrStandardDeviation(%)

S&P 500

CorrelationCoefficient

Gold

10-Year Treasury Equity REITs

Note: * Consists of 1,023 U.S. agricultural properties worth approximately $16.1 billion as of 12/31/2024 Sources: - National Council of Real Estate Investment Fiduciaries (NCREIF)

- TIAA/University of Illinois - Center for Farmland Research (Correlation data from 2000-2024 from the Correlation Farmland Utility V25.1 January 2025)

U.S. Farmland: Market Index Comparison

U.S. FARMLAND HAS EXPERIENCED SIMILAR OR STRONGER RETURNS AND LOWER VOLATILITY THAN BOTH THE MSCI US REIT INDEX AND THE S&P 500

25-YEAR MARKET INDEX COMPARISONS: ANNUAL RETURNS

50%

40% 30% 20% 10%

0%

(10%)

(20%)

(30%)

(40%)

(50%)

2000

2002

2004

2006

2008

2010

Note: * Consists of 1,023 U.S. agricultural properties worth approximately $16.1 billion as of 12/31/2024

Source: National Council of Real Estate Investment Fiduciaries (NCREIF)

Farmland Market Opportunity

ANNUAL FRESH PRODUCE | PRIMARY FOCUS

SHORT-LIVED ROW CROPS GENERALLY PLANTED ANNUALLY

(E.g., beans, cabbage, cantaloupe, celery, leƩuce, melons, peas, peppers, radicchio, strawberries, sweet corn, tomatoes, and other leafy produce)

11.4 Million Acres

$119.9 Billion Market Value

PERMANENT CROPS | PRIMARY FOCUS

LONG-LIVED BUSHES, ORCHARDS, TREES, & VINES GENERALLY PLANTED EVERY 20+ YEARS (E.g., almonds, apples, avocados, blackberries, blueberries, cherries, figs, grapes, lemons, oranges, peaches, pears, pecans, pistachios, plums, and walnuts)

12.7 Million Acres

$176.2 Billion Market Value

GRAINS & OTHER CROPS | TERTIARY FOCUS

SHORT-LIVED ROW CROPS GENERALLY PLANTED ANNUALLY

(E.g., barley, beets, corn, coƩon, rice, soybeans, sugar cane, and wheat)

346.3 Million Acres

$1.6 Trillion Market Value

Source: USDA 2022 Census of Agriculture (Issued February 2024, the latest census available).

Investment Focus

WE FOCUS ON ACQUIRING HIGH-VALUE FARMLAND THAT WE BELIEVE WILL GENERATE ABOVE-AVERAGE REVENUES AND PROFITS AND GENERALLY HAS THE FOLLOWING CHARACTERISTICS:

Adequate & clean water supply with fertile soil that is rich in nutrients

Excellent weather combined with long growing seasons that provide adequate sunshine and low wind conditions Locations in established rental markets with a prominent farming presence and an abundance of strong operators

Investment Focus (continued)

WE BELIEVE FRESH PRODUCE LAND HAS LOWER RISKS THAN COMMODITY CROP LAND

WATER ACCESS

Commodity crops usually depend solely on rain for water, whereas fresh produce crops are typically irrigated from farm wells and county-supplied water. Almost all of our farms have their own water supply.

PRICE VOLATILITY

Commodity cropland values largely depend on global crop market prices, making them more volatile; whereas fresh produce farmland is generally more insulated due to the crops being grown and mostly consumed within the U.S.

GOVERNMENT DEPENDENCY

Commodity crops often depend on government subsidies and tariffs for protection that are subject to change.

STORAGE COSTS

There are added costs to dry and store commodity crops, whereas fresh produce is usually consumed within days.

RENTS

Fresh produce farmland has higher rental rates than commodity crop farmland, even though commodity crops carry higher risks.

Fresh Produce is one of our Primary

Focus Segments

While we invest in farmland

growing a variety of crop types, one of our primary focus segments is farmland

growing fresh produce.

We believe this type of farmland is among the most

productive (in terms of revenue per acre) and generally the most profitable for farmers and earns the highest rents for landlords.

Disclaimer

Gladstone Land Corporation published this content on March 27, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 27, 2025 at 16:01:34.576.