Gladstone Land Corp (LAND) 2025 Q2 法說會逐字稿

Greetings. Welcome to Gladstone Land Corporation's second-quarter earnings call. (Operator Instructions) As a reminder, this conference is being recorded.

問候。歡迎參加格拉斯頓土地公司第二季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。

It is now my pleasure to introduce Mr. David Gladstone, Chief Executive Officer and President. Thank you, sir. You may begin.

現在我很高興介紹執行長兼總裁戴維·格拉德斯通先生。謝謝您，先生。你可以開始了。

All right. Thank you. That was a very nice introduction. And this is David Gladstone, and welcome to the quarterly conference call for Gladstone Land. And thank you all for taking the time out of your day to listen to our presentation. Before I begin, we'll hear from Catherine Gerkis, our Director of Investor Relations, and she handles the ESG stuff as well.

好的。謝謝。這是一個非常好的介紹。我是大衛·格拉德斯通，歡迎參加格拉德斯通土地公司的季度電話會議。感謝大家抽空聆聽我們的演講。在我開始之前，我們先聽聽投資人關係總監 Catherine Gerkis 的發言，她也負責 ESG 事務。

So Catherine, give us an introduction here.

那麼凱瑟琳，請在這裡跟我們介紹一下。

Thank you, David, and good morning.

謝謝你，大衛，早安。

Today's call may include forward-looking statements, which are based on management's estimates, assumptions, and projections. There are no guarantees that future performance, and actual results may differ materially from those expressed or implied in these statements due to various uncertainties, including the risk factors set forth in our SEC filings, which you can find on the Investors page of our website, gladstoneland.com. We assume no obligation to update any of these statements unless required by law.

今天的電話會議可能包括前瞻性陳述，這些陳述是基於管理層的估計、假設和預測。由於各種不確定因素，包括我們提交給美國證券交易委員會 (SEC) 的文件中列明的風險因素，我們無法保證未來業績及實際結果可能與這些聲明中明示或暗示的內容有重大差異。這些文件可在我們網站 gladstoneland.com 的「投資者」頁面上找到。除非法律要求，否則我們不承擔更新任何這些聲明的義務。

Please visit our website for a copy of our Form 10-Q and earnings press release, both issued yesterday, for more detailed information. You can also sign up for our email notification service and find information on how to contact our Investor Relations department. We are also on X, @GladstoneComps, as well as Facebook and LinkedIn. Keyword for both is The Gladstone Company.

請訪問我們的網站以獲取昨天發布的 10-Q 表和收益新聞稿的副本，以獲取更多詳細資訊。您也可以註冊我們的電子郵件通知服務，並查找有關如何聯絡我們的投資者關係部門的資訊。我們也在 X、@GladstoneComps 以及 Facebook 和 LinkedIn 上。兩者的關鍵字都是格拉斯頓公司。

Today, we'll discuss FFO, which is funds from operations, a non-GAAP accounting term defined as net income, excluding gains or losses from the sale of real estate and any impairment losses on property, plus depreciation and amortization of real estate assets. We may also discuss core FFO, which we generally define as FFO adjusted for certain non-recurring revenues and expenses, and adjusted FFO, which further adjusts core FFO for certain non-cash items, such as converting GAAP rents to normalized cash rents. We believe these metrics can be a better indication of our operating results and allow better comparability of our period-over-period performance.

今天，我們將討論 FFO，即營運資金，這是一個非 GAAP 會計術語，定義為淨收入，不包括出售房地產的收益或損失以及任何財產減損損失，加上房地產資產的折舊和攤提。我們也可能討論核心 FFO，我們通常將其定義為根據某些非經常性收入和支出調整後的 FFO，以及調整後的 FFO，它進一步根據某些非現金項目調整核心 FFO，例如將 GAAP 租金轉換為正常化現金租金。我們相信這些指標可以更好地表明我們的經營業績，並使我們的同期業績具有更好的可比性。

Now, I'll turn it back to David Gladstone.

現在，我把話題轉回給大衛·格拉德斯通。

Well, thank you, Catherine. Let me just remind everybody of a brief overview of our farmland holdings. We have about 103 acres and 150 different farms and we have over 55,000 acre feet of water now. An acre foot doesn't mean much to you, but it transfers into about 18 billion gallons that we own and we have it stored in aquifers and different places.

好吧，謝謝你，凱瑟琳。我只想提醒大家簡單介紹一下我們的農地持有。我們擁有約 103 英畝土地和 150 個不同的農場，目前擁有超過 55,000 英畝英尺的水。一英畝英尺對你來說意義不大，但它轉化為我們擁有的約 180 億加侖水，並將其儲存在含水層和不同的地方。

Our farms are in 15 different states and our water assets are all in California. Our farms are leased to over 80 different tenant farmers who grow 60 different types of crops on our farms. Most of these are the kind of food that you can find in the produce section of your local grocery store, such as fruits and vegetables and also nuts. We continue to be cautious and have made no new investments because interest rates and the expenses of running these farms are so different now than they were when we first started. The cost of capital remains so high and the cap rates on most of the row crops are still high. And so if you buy one of these farms and then have to farm it, these are very difficult times for the farmers.

我們的農場分佈在 15 個不同的州，我們的水資源資產全部位於加州。我們的農場租給 80 多個不同的佃農，他們在我們的農場種植 60 種不同類型的作物。其中大部分都是您可以在當地雜貨店的農產品區找到的食物，例如水果、蔬菜和堅果。我們繼續保持謹慎，沒有進行新的投資，因為現在的利率和經營這些農場的費用與我們剛開始時有很大不同。資本成本仍然很高，大多數行栽作物的資本化率仍然很高。因此，如果你購買了其中一個農場並必須耕種它，那麼對農民來說這將是非常困難的時期。

So we didn't complete any sales during the quarter, but we have one property, and that one property is in Florida. And so we have it classified on our financials as held for sale. This property consists of two farms in Florida that are currently under signed purchase agreement, and we expect the sale to close soon and that would result in a nice gain for us. By the way, in Florida, a lot of the farms are being sold to be transferred into or reclassified into housing. So we're not in the housing business, so we sell our farms when the housing folks show up and need more land.

因此，我們本季沒有完成任何銷售，但我們有一處房產，該房產位於佛羅裡達州。因此我們在財務報表中將其歸類為持有待售。該地產包括佛羅裡達州的兩個農場，目前已簽署購買協議，我們預計銷售將很快完成，這將為我們帶來可觀的收益。順便說一句，在佛羅裡達州，許多農場被出售以轉為或重新劃分為住宅。我們不從事住房業務，所以當住房人員出現並需要更多土地時，我們就會出售我們的農場。

I want to touch on some modifications we've made in our lease structure on certain of our farms again. And I know we've said this, but I want to make sure you understand it as it has a significant impact on our earnings pattern. I think we mentioned it in the prior call, market conditions around many of these permanent crops in the West particularly, are those growing nuts and grapes and we have a lot of crop prices that are different and they weren't very high, but this year has a little bit of different flex on it and I'm hopeful we have a lot of almonds, for example.

我想再談談我們對某些農場的租賃結構所做的修改。我知道我們已經說過這​​一點，但我想確保你理解這一點，因為它對我們的獲利模式有重大影響。我想我們在之前的電話會議中提到過，西方許多永久性作物的市場狀況，特別是那些正在種植的堅果和葡萄，我們有很多作物的價格不同，而且不是很高，但今年有一些不同的彈性，例如，我希望我們有很多杏仁。

And the government publishes every year their guess of how many almonds are going to be out, and the last five estimates over the last five years were not conclusive. But the government in their projections in the first two of the five years were, well, they didn't get exactly right, but we had more almonds than was estimated by the government. And then the third year out, they were right on target, and then the last two we just got and boy, I'm telling you, if the government's right this year, we make a lot of money.

政府每年都會公佈杏仁產量的預測，但過去五年來的五次估計均無定論。但政府在五年前兩年的預測並不完全正確，但我們的杏仁產量比政府估計的要多。然後第三年，他們就完全達到了目標，然後最後兩年我們也實現了，我告訴你，如果政府今年做得對，我們就會賺很多錢。

Anyway, we've decided to adjust the lease structure on six properties, and that's why these estimates, we hang on them so much and minimize the fixed cost, but also allow us to participate in the upside. So we have moved from being a leaser and more of an operator or a grower of sorts because we're taking some of our payment for the lease in part of the crop that is being grown.

無論如何，我們決定調整六處房產的租賃結構，這就是為什麼我們如此依賴這些估算，並儘量減少固定成本，同時也讓我們能夠參與上行空間。因此，我們已經從租賃者轉變為經營者或種植者，因為我們從正在種植的部分農作物中收取部分租賃費用。

In essence, we're accepting a percentage of the gross crop sales instead of a fixed rent payment, and we did that because it was a very difficult time in the last two years, last three years really for farmers. And we also decided to operate two properties ourselves with the help of third-party operators. That doesn't mean you're going to see me or any of the people out there on the farm harvesting or doing whatever. We really have, like many people who are in this business, hired third-party operators to run the farms.

本質上，我們接受的是農作物總銷售額的一定比例，而不是固定的租金支付，我們這樣做是因為過去兩年、三年對農民來說確實是一段非常艱難的時期。我們也決定在第三方業者的協助下自行經營兩處房產。這並不意味著你會看到我或農場裡的任何人收割或做其他事情。我們確實像許多從事這個行業的人一樣，聘請了第三方經營者來經營農場。

We'd like to transition all of these back to the more traditional structure including fixed base rents. Our ability to do so would depend on several external factors such as crop production, pricing, interest rates. Input costs have not gone down. They've gone any place in this world but up. And water availability, that's a key. On our farms, we've purchased enough water and stored it so that we're good for many years out.

我們希望將所有這些轉變回更傳統的結構，包括固定基本租金。我們能否做到這一點取決於幾個外部因素，例如農作物產量、定價、利率。投入成本並未下降。他們已經去過這個世界的任何地方，但就是沒有到達最高處。水資源的可用性是關鍵。在我們的農場，我們購買了足夠的水並將其儲存起來，以便在未來很多年內都能使用。

One of the reasons we felt confident in going this route is that particular farms that we have -- and we have eight now that are in this country -- these are farms that have really good crops in prior years. Because of crop insurance coverage we've gotten, you can buy crop guarantees on your historical yields. And that means secure high levels of crop insurance. So we have crop insurance on all eight of these farms.

我們對走這條路充滿信心的原因之一是，我們擁有的農場——目前我們在該國有八個農場——這些農場前幾年的收成非常好。由於我們已經獲得了作物保險，您可以根據歷史產量購買作物擔保。這意味著要確保高水準的農作物保險。因此，我們為這八個農場購買了農作物保險。

Should a hurricane come through and blow all the things down, we're still going to get paid -- we think we would have gotten paid in our existing farms. We certainly hope that even though we're covered with crop insurance, we hope that the base rent is strong production from these farms they've done so in the past so that we don't need to rely on crop insurance in which our profit could be significant.

如果颶風來襲，把所有東西都吹倒，我們仍然會得到報酬——我們認為我們在現有的農場也能得到報酬。我們當然希望，儘管我們購買了作物保險，但我們希望基本租金來自這些農場的強勁產量，他們過去就是這樣做的，這樣我們就不需要依賴作物保險，而我們的利潤可能很可觀。

Regarding leasing activity, we still have a lot of farms that are under leases, of course, and we're a real estate investment trust so our leasing is just in sync with that kind of structure. Regarding leasing activity, we entered into four new standard leases agreements during the quarter and expect to result in an annual increase in our annual NOI of about $166,000 or about 9%. So that part of the business is working still very well, and we'll see when we harvest the crops that we will own part of what it will look like in the future.

關於租賃活動，我們當然仍有許多農場處於租賃狀態，而且我們是一家房地產投資信託公司，因此我們的租賃與這種結構同步。關於租賃活動，我們在本季度簽訂了四項新的標準租賃協議，預計年度淨營業收入將增加約 166,000 美元，約 9%。因此，這部分業務目前仍然運作良好，當我們收穫農作物時，我們將看到未來我們將擁有的部分業務將會是什麼樣子。

So looking ahead, we have 14 leases scheduled to expire through the rest of -- due to some of these leases containing no fixed base rent, including cash leases that we are working. These leases actually account for negative $2.8 million of leasing revenue during the first half of the 2024. Remember, we can't put in our estimates even though we have insurance on it, and so those are a negative drag until the crop comes in.

因此展望未來，我們有 14 份租約將在剩餘時間內到期 - 因為其中一些租約不包含固定基本租金，包括我們正在進行的現金租約。這些租賃實際上導致 2024 年上半年的租賃收入為負 280 萬美元。請記住，即使我們有保險，我們也不能將其納入我們的估計範圍，因此在農作物收穫之前，這些都是負面拖累。

So we won't know that until the fourth quarter. We'll know a little bit more next time we meet in the third quarter. And that's largely because the participation rents resulting from these leases won't be recognized really until we get to the fourth quarter. That's the accounting standards. I don't know why we can't recognize some of it, but that's the rules. And unless you have sold something and are trying to collect on it, you can't accrue any of it.

所以我們要到第四季才能知道。下次第三季見面時我們就會知道更多。這主要是因為這些租賃產生的參與租金直到第四季度才能真正確認。這就是會計準則。我不知道為什麼我們不能識別其中的一些，但這就是規則。除非您已經賣掉了某樣東西並試圖收回它，否則您無法獲得任何東西。

We're in discussions with both the existing and prospective new tenants about the leasing on these farms, including reverting some of these back to leases on standard leases with fixed based rent. Or if the price is right, we may also look to sell a couple of these farms. As I mentioned, we've got one that's going to get sold in Florida, that's because the housing boom down there is unbelievable.

我們正在與現有和潛在的新租戶討論這些農場的租賃事宜，包括將其中一些農場的租賃恢復為固定租金的標準租賃。或者如果價格合適，我們可能也會考慮出售其中幾個農場。正如我所提到的，我們有一套房子將在佛羅裡達州出售，因為那裡的房地產市場繁榮得令人難以置信。

So I'm going to stop here and call on Bill Reiman. Bill is working all of the stuff in California, been hard at work because we've moved from just collecting rents to actually working with the people we hired to farm them.

所以我要在這裡停下來並拜訪比爾·雷曼。比爾在加州做所有的事情，他一直很努力，因為我們已經從僅僅收取租金轉變為與我們僱來耕種的人一起實際工作。

And so Bill, why don't you come on now and talk to us about that.

那麼比爾，你為什麼不現在就過來跟我們談談這個問題呢？

Thank you, David. Yeah, sure. Good morning, everybody.

謝謝你，大衛。是的，當然。大家早安。

Just to talk a little bit about the eight properties that are under modified lease agreements or being directly operated by third parties. Three of these properties are wine grape vineyards. And with wine grape economics, as they are, we hope to recover most of our costs on these. If we break even, that would be a huge win. The remaining five properties consist of two pistachio orchards, two almond orchards, and a large property that has both. So based on planted acreage, about 60% of these eight properties are in pistachios, with about 35% of the acreage in almonds. So overwhelmingly, our focus is on these two nut crops.

我只想簡單談談這八處已修改租賃協議或由第三方直接經營的房產。其中三處為釀酒葡萄園。鑑於釀酒葡萄的經濟效益，我們希望能夠收回大部分成本。如果我們收支平衡，那將是一個巨大的勝利。其餘五處地產包括兩處開心果園、兩處杏仁園以及一處擁有這兩種果園的大型地產。因此，根據種植面積計算，這八個農場中約有 60% 種植開心果，約有 35% 種植杏仁。因此，我們的重點主要集中在這兩種堅果作物。

We're very pleased with the condition of the crops on all eight properties. We expect above-average crop yields and crop quality to be excellent. As David mentioned, we're fully insured on all of these properties. The nut properties have really strong historical production, so they all look above -- I would say the crop looks excellent.

我們對這八塊土地上的作物狀況非常滿意。我們預計農作物產量將高於平均水平，且農作物品質將十分優良。正如大衛所提到的，我們對所有這些財產都投了全額保險。這些堅果產業的歷史產量確實很高，所以它們看起來都很好——我想說，作物看起來非常好。

We've been working with five different tenants or operators across the eight assets, and all five growers are performing at a very high level for us and they're achieving an acceptable standard to us. So all positive stuff there. In addition to that, we had an average to wet winter this last winter, and the growing season has been, I would say, nearly perfect in the entire western US. So that is certainly a factor that we don't control, but we've been very, very fortunate.

我們一直與八個資產中的五個不同的租戶或營運商合作，所有五個種植者都為我們提供了非常高的表現，並且達到了我們可以接受的標準。所以那裡全是正面的東西。除此之外，去年冬天我們經歷了一個平均到潮濕的冬天，我想說，整個美國西部的生長季節幾乎是完美的。所以這當然是我們無法控制的因素，但我們非常非常幸運。

Going into crop markets, so generally speaking, we've seen the markets for many of our crops and commodities trend lower in the last few months. Trade negotiations, tariff talks certainly play a major role in this, but traditional supply-demand dynamics are really the main drivers particularly behind crops such as almonds and wine grapes which are really important to us. These industries have seen orchards and vineyards being removed at a historically large scale. So sometime in the near future, we expect those markets to turn.

進入農作物市場，整體而言，我們發現過去幾個月許多農作物和商品的市場呈現低趨勢。貿易談判、關稅談判無疑在其中發揮了重要作用，但傳統的供需動態才是真正的主要驅動力，尤其是對我們非常重要的杏仁和釀酒葡萄等作物。這些產業已經見證了果園和葡萄園被大規模拆除。因此，我們預計在不久的將來這些市場將會轉變。

Over the past year, we've seen almond markets definitely turn a corner trending upward. David referenced the USDA's almond objective forecast that was released in July. The number they put out was massive, higher than anybody expected, and nobody really believes it. But it caused about a 20% drop in almond prices about a month ago, so it wiped out all of the pricing gains of the last year and got back down to what prices were a year ago.

在過去的一年裡，我們看到杏仁市場明顯呈現上升趨勢。大衛引用了美國農業部 7 月發布的杏仁客觀預測。他們公佈的數字非常巨大，超出了任何人的預期，但沒有人真正相信。但大約一個月前，它導致杏仁價格下跌了約 20%，因此抵消了去年所有的價格漲幅，並回落至一年前的價格水平。

But in the last couple of weeks, we've seen pricing really come back. It's up 5% to 8%; that was as of a week ago. And this past week, just this week ending, we're up another $0.03 or $0.04 a pound. So we definitely have good almond market momentum, and we expect that to continue.

但在過去幾週，我們看到價格確實回升了。上漲了 5% 至 8%；這是截至一週前的數據。而就在上週，也就是本週結束的時候，每磅價格又上漲了 0.03 美元或 0.04 美元。因此，我們的杏仁市場勢頭肯定良好，而且我們預計這種勢頭將會持續下去。

Harvest just started. We're shaking trees in all of our almond orchards as of right now. So over the next several weeks, we'll start to see how the industry actuals compared to the objective. All eyes are on that, because that will support more price gains if we are at a slower rate than the USDA-projected. Coffee shop talk, as of today, crop is coming in light, so that's actually probably good news for us because it will strengthen the market.

收穫剛開始。我們現在正在搖晃所有杏仁園裡的樹木。因此，在接下來的幾週內，我們將開始看到產業實際情況與目標的對比情況。所有人的目光都集中在這一點上，因為如果我們的成長速度低於美國農業部預測的速度，這將支持價格進一步上漲。咖啡店傳來談話聲，截至今天，作物正在收穫，所以這對我們來說實際上可能是個好消息，因為它將加強市場。

Wine grape market's still mired in their low points, and it's been slow this summer to get contracts. But in the last 10 days, we've had a number of inquiries on some of our crops for contracts. And the pricing is significantly higher than a year ago. So there are a couple of positive signals there.

釀酒葡萄市場仍處於低谷，今年夏天簽約的步伐緩慢。但在過去 10 天裡，我們收到了一些關於部分農作物合約的詢問。而且定價比一年前明顯高很多。因此，這裡存在一些積極的信號。

Pistachio is really probably the best market out there right now. Same thing with tariffs and trade discussions have really created some uncertainty. But we see very strong demand, increasing demand. And in fact, a little bit of that was unexpected and it caused the 2024 crop to be sold out early. So as we sit here today, a month away from harvest of the '25 crop, there's very little movement because there's very little product. So we have very low inventories going into 2025. So 2025 is going to have probably the largest US pistachio crop on record. But we have good strong demand and good stable pricing.

開心果或許確實是目前最好的市場。關稅和貿易談判也確實造成了一些不確定性。但我們看到需求非常強勁，不斷成長。事實上，這有點出乎意料，導致 2024 年的作物提前售罄。因此，我們今天坐在這裡，距離 25 年作物的收穫還有一個月的時間，但由於產量很少，所以幾乎沒有什麼動靜。因此，到 2025 年，我們的庫存將非常低。因此，2025 年美國開心果產量可能創下歷史新高。但我們的市場需求強勁，價格也穩定。

In fact, our guaranteed base price came out a few weeks ago. And it is the same as last year's. And that's exactly what we budgeted for. So we do have one of the unknowns is now known. So we know what our base pricing is for our pistachio crops. So that's good. We're happy about that.

事實上，我們的保證基本價格幾週前就出來了。和去年是一樣的。這正是我們預算的。因此，我們確實有一個未知數現在已經為人所知。因此我們知道開心果作物的基本定價是多少。這很好。我們對此感到高興。

While profitability is not nearly as strong as the boom time from 5 or 10 years ago in pistachios, the market fundamentals are very strong. Generally, we see this increase in bearing acreage, which every year the pistachio crop grows, coupled with some trade uncertainty, particularly with China, we see those two negatives being balanced out by a reduction in new plantings, not a lot of new trees going in the ground. Well water pumping restrictions due to Sigma in California is going to hurt some orchards that have been planted in the last 10 or 15 years in areas with weak water rights. And we're seeing very strong increased consumption in the EU, particularly due to the Dubai chocolate phenomenon. So a lot of positives to balance out the negatives.

雖然開心果的獲利能力遠不及五年或十年前的繁榮時期，但市場基本面非常強勁。總體而言，我們看到種植面積不斷增加，開心果產量每年都在增長，再加上一些貿易不確定性，特別是與中國的貿易不確定性，我們看到這兩個負面因素通過新種植面積的減少而被抵消，新樹的種植面積並不多。加州因西格瑪颶風而對井水抽水進行限制，這將對過去 10 到 15 年間在水權較弱的地區種植的一些果園造成損害。我們看到歐盟的消費量正在強勁成長，特別是因為杜拜巧克力現象。因此，許多正面因素可以抵消負面因素。

The last -- I'll end it on some talk about water. We've always -- we've been reporting in the past how the Western US has been in a normal to wet cycle the last few years, including this one in recent minutes. This has created quite a few water buying opportunities at prices that really fit into our crop budgets. So we've been very aggressive and focused on improving our delivery and storage infrastructure across the portfolio. So coupled with the availability of inexpensive water, we've really done a good job of improving the water security of the farms.

最後——我將以關於水的討論來結束今天的演講。我們過去一直報導美國西部在過去幾年中如何處於正常到潮濕的循環，包括最近幾分鐘的這次。這創造了不少以真正適合我們農作物預算的價格購買水的機會。因此，我們一直非常積極地致力於改善整個產品組合的交付和儲存基礎設施。因此，加上廉價水源的供應，我們在改善農場用水安全方面確實做得很好。

We continue to add to that 55,000 acre feet of water. And we have certain areas where our farms have enough water. If it didn't rain for 10 years, we could still irrigate them for about a decade. So we're spending a lot of time trying to figure out how to synergize our properties, coordinate them with each other, where they can share water, and just improve the overall security of the portfolio. And we'll continue to do that, looking at long-term, short-term water purchases, improving the -- continue to improve infrastructure, and just working towards really having a secure portfolio in that regard.

我們繼續在這 55,000 英畝英尺的水中添加水。在某些地區，我們的農場有足夠的水。如果10年不下雨，我們仍然可以灌溉它們大約10年。因此，我們花了大量時間試圖弄清楚如何協同我們的資產，相互協調，如何分享水資源，以及如何提高投資組合的整體安全性。我們將繼續這樣做，考慮長期和短期水採購，改善基礎設施，並努力在這方面真正擁有安全的投資組合。

So that's it for me. I'll turn it over to our CFO, Lewis Parrish.

對我來說就是這樣。我將把它交給我們的財務長劉易斯·帕里什 (Lewis Parrish)。

All right. Thank you, Bill, and good morning, everyone.

好的。謝謝你，比爾，大家早安。

I'll start with a quick update on our recent financing activity. During the quarter, we refinanced a $10 million maturing loan with MetLife. And after quarter-end, we repaid a $10 million maturing bond in anticipation of selling the underlying property later this month. We do not issue any new equity during the quarter.

我將首先簡要介紹我們最近的融資活動。本季度，我們與大都會人壽保險公司 (MetLife) 進行了 1,000 萬美元到期貸款的再融資。季度末之後，我們償還了 1000 萬美元的到期債券，預計本月稍後將出售相關資產。本季我們沒有發行任何新股。

Turning to our operating results. For the second quarter, we recorded a net loss of about $7.9 million and a net loss to common shareholders of $13.9 million, or $0.38 per share. Adjusted FFO was negative $3.4 million, or $0.10 per share, compared to a positive $3.7 million, or $0.10 per share, in the same quarter last year. The dividends declared per common share were $0.14 in both quarters. The year-over-year decline in AFFO was driven by recent changes to lease structures on certain farms and ongoing tenancy issues that resulted in farm vacancies, leading to reduced revenues and higher costs, along with lost revenue from farms sold over the past year.

談到我們的經營績效。第二季度，我們的淨虧損約為 790 萬美元，普通股股東淨虧損 1,390 萬美元，即每股 0.38 美元。調整後的 FFO 為負 340 萬美元，即每股 0.10 美元，而去年同期為正 370 萬美元，即每股 0.10 美元。兩季宣布的每股普通股股息均為 0.14 美元。AFFO 年比下降的原因是某些農場的租賃結構近期發生變化，以及持續存在的租賃問題導致農場空置，進而造成收入減少、成本上升，以及過去一年出售農場的收入損失。

Fixed base cash rents were down by about $6.8 million from the prior year quarter due to the reasons just mentioned, mainly the vacancies we continue to work through and the structural changes made to certain leases, where we reduced or eliminated fixed base cash rents or, in some cases, provided cash lease incentives to certain tenants, all in exchange for significantly increasing the crop share components. And as others have mentioned, the results from these crop share components won't be known until the harvest is complete and the crops are sold.

由於剛才提到的原因，固定基本現金租金較去年同期下降了約 680 萬美元，主要是我們繼續努力解決空置問題，以及對某些租約進行的結構性調整，我們減少或取消了固定基本現金租金，或者在某些情況下向某些租戶提供現金租賃獎勵，所有這些都是為了大幅增加作物份額部分。正如其他人提到的那樣，這些作物份額組成部分的結果只有在收穫完成並且作物出售後才能知道。

Year-over-year participation rents were also down, and that was largely due to the accelerated recognition of certain revenue in 2024. Last year, some information became available to us earlier than usual, which allowed us to record certain revenue amounts in the first half of the year. So far, this year's participation rents have mostly come from cash collections on wine grape sales. I will note that we continue to expect higher participation rent levels in the second half of 2025 as a result of lease modifications we made on certain permanent crop farms.

參與租金年比也有所下降，這主要是由於 2024 年某些收入的確認加速。去年，我們比往常更早獲得了一些信息，這使我們能夠在上半年記錄一定的收入金額。到目前為止，今年的參與租金主要來自釀酒葡萄銷售的現金收入。我要指出的是，由於我們對某些永久性農作物農場的租賃進行了修改，我們預計 2025 年下半年的參與租金水準將繼續上升。

And we discussed this on prior calls, but these lease changes are expected to reduce fixed base rents by about $17 million for fiscal year 2025 compared to '24. This figure includes both the base rents recognized last year under prior leases, plus the cash allowances provided to certain tenants for the 2025 crop year.

我們在先前的電話會議上討論過這個問題，但這些租賃變更預計將使 2025 財年的固定基本租金與 24 財年相比減少約 1700 萬美元。該數字包括去年根據先前租約確認的基本租金，加上為某些租戶提供的 2025 年作物年度的現金補貼。

Being shown is a reduction in fixed-base rents at a rate of roughly $4 million to $5 million per quarter in 2025, which is in line with the first half of the year. And in turn, the majority of the resulting crop share proceeds from these leases is expected to be recognized as participation rent in the fourth quarter of 2025, with most of the remaining smaller portion being recognized in the second half of 2026.

數據顯示，到 2025 年，固定基礎租金將以每季約 400 萬至 500 萬美元的速度下降，與上半年的水平一致。反過來，這些租賃所產生的農作物份額收益大部分預計將在 2025 年第四季確認為參與租金，其餘較小部分的大部分將在 2026 年下半年確認。

So in essence, we're shifting this revenue from fixed base rents to participation rents over the next couple of years. And as a result, earnings this year will be more heavily weighted towards the fourth quarter, with lighter earnings during the first half of the year.

因此，從本質上講，我們將在未來幾年內將這筆收入從固定基本租金轉向參與租金。因此，今年的獲利將更集中在第四季度，而上半年的獲利將減少。

On the expense side, excluding reimbursable items and certain non-recurring or non-cash charges, our core operating expenses decreased by about $200,000 this quarter. The capital gains fee that was triggered in Q1 by property sales was reversed in Q2 due to additional losses incurred on certain asset dispositions. So excluding this reversal, total related party fees fell by about $67,000, driven by a lower base management fee due to recent farm sales. Now the capital gains fee, if any, is not payable until after the end of the fiscal year and is subject to further adjustment throughout '25, if and when we dispose of additional assets.

在費用方面，不包括可報銷項目和某些非經常性或非現金費用，本季我們的核心營運費用減少了約 20 萬美元。第一季因房地產銷售而觸發的資本利得費用在第二季因某些資產處置產生的額外損失而被逆轉。因此，排除此逆轉，關聯方費用總額下降了約 67,000 美元，這是由於近期農場銷售導致基本管理費降低。現在，如果有的話，資本利得費要到財政年度結束後才需要支付，如果我們處置額外資產，則在整個 25 年內會進行進一步調整。

Our remaining cash operating expenses decreased by about $135,000, with lower G&A costs partially offset by higher property expenses. The increase in property operating expenses was largely driven by additional costs incurred to protect water rights on certain farms in California, as well as higher expenses related to farms that were vacant, direct operated, or on non-accrual status, particularly increased property taxes, which were previously the responsibility of the former tenants. The decrease in G&A expense was mainly due to lower shareholder-related costs and reduced professional fees. Finally, other expenses decreased mainly due to lower interest expense, driven by loan repayments made over the past year.

我們剩餘的現金營運費用減少了約 135,000 美元，較低的 G&A 成本部分被較高的財產費用所抵銷。物業營運費用的增加主要是由於保護加州某些農場的水權而產生的額外成本，以及與空置、直接經營或非應計狀態的農場相關的費用增加，特別是增加的物業稅，這些稅以前是前租戶的責任。一般及行政費用的減少主要是由於股東相關成本的降低和專業費用的減少。最後，其他費用減少，主要是由於過去一年償還貸款導致利息支出減少。

Turning to liquidity. We currently have over $150 million of available capital, and we also have nearly $170 million of unpledged properties that we could use as additional collateral if needed. Over 99% of our borrowings are at fixed rates, with a weighted average rate of 3.39% locked in for another 3.3 years. This has helped shield us from the impact of rising interest rates over the past few years.

轉向流動性。我們目前擁有超過 1.5 億美元的可用資本，並且還擁有近 1.7 億美元的未抵押財產，如果需要，我們可以將其用作額外的抵押品。我們超過 99% 的借款都是固定利率，加權平均利率為 3.39%，鎖定期限為 3.3 年。這有助於我們免受過去幾年利率上升的影響。

Looking ahead, we have about $17 million of scheduled principal amortization payments due over the next 12 months, less than 4% of our total debt. We also have about $11 million in loans with fixed rate terms expiring in the next year, though the loans themselves are not maturing.

展望未來，我們在未來 12 個月內有大約 1700 萬美元的預定本金攤銷付​​款到期，不到我們總債務的 4%。我們還有大約 1,100 萬美元的固定利率貸款將於明年到期，儘管這些貸款本身尚未到期。

And finally, regarding our common distribution, in July, we declared a monthly dividend of $0.467 per share for the third quarter of '25. And at our current stock price of $9.14, this represents a 6.1% annualized yield, which is well above the sector average. We're maintaining the dividend at its current level for now, and we'll re-evaluate it in the coming months as we gain more clarity on the 2025 harvest results.

最後，關於我們的共同分配，7 月份，我們宣布 25 年第三季的月度股息為每股 0.467 美元。以我們目前的股價 9.14 美元計算，這代表著 6.1% 的年化收益率，遠高於行業平均水平。我們目前將股息維持在當前水平，隨著我們對 2025 年收穫結果的了解越來越清楚，我們將在未來幾個月內重新評估股息。

And with that, I'll turn it back over to David.

說完這些，我會把發言權交還給大衛。

Okay. Thank you, Lewis.

好的。謝謝你，劉易斯。

I think everybody's getting the gist here. We have changed when we can recognize income, and we won't recognize -- or recognize very little in the second quarter, but hopefully in the third and fourth quarter, certainly the fourth quarter, as we sell a lot of our crops, we'll be back in the game of lots of profits.

我想大家都明白了要點。我們已經改變了確認收入的時間，第二季度我們不會確認收入，或者確認的很少，但希望在第三季度和第四季度，當然是第四季度，隨著我們出售大量農作物，我們將重新回到獲得大量利潤的行列。

So one thing you may not know, I didn't realize it was going on on Friday until I got a call from Lewis and our legal team. There was a group out there trading on the market with $LAND. These meme players were just having a lot of fun playing with each other on the price, knocked about 1 point off the price of our stock. So it is not good for us, and it takes a long time to get back from these meme stocks and be regular traded.

有一件事你可能不知道，直到週五我接到劉易斯和我們的法律團隊的電話，我才意識到這件事發生了。有一群人在市場上用 $LAND 進行交易。這些 meme 玩家只是在玩弄價格，把我們的股票價格降低了大約 1 點。所以這對我們來說並不好，而且需要很長時間才能從這些迷因股票中恢復並進行常規交易。

Going back to the acquisition outlook, we continue to stay active in the market, and we are seeing a lot of changes that are going on in terms of what farmers are able to sell their properties for. And I think we'll be able to sell some more properties over time, and again, just moving in the direction we have to based on the way we're operating the company now.

回顧收購前景，我們繼續在市場上保持活躍，我們看到農民出售其財產的價格正在發生許多變化。我認為隨著時間的推移，我們將能夠出售更多的房產，而且，根據我們現在經營公司的方式，我們將朝著我們必須的方向前進。

With cost of capital remaining so high, it really worries me that the marketplace is going to have to go through some changes. Overall demand for prime farmland growing berries and vegetables remains stable, and among all of the areas where our properties are, especially along the coast of California.

由於資本成本仍然很高，我真的很擔心市場將不得不經歷一些變化。在我們所有的農場所在地，尤其是加州沿海地區，對種植漿果和蔬菜的優質農田的整體需求保持穩定。

As mentioned earlier, prices for certain permanent crops have been depressed. And when we say permanent crops, we're really talking about the nut business. There's a lot of trees out there, and the only good thing about all of those trees is they're harvested mechanically, so we're not really being bothered by the impact of any changes in how much you have to pay people to pick crops. We still worry about that because so many of our properties are strawberries and other things that are done quickly and shipped quickly.

如前所述，某些多年生作物的價格一直處於低迷狀態。當我們說永久性作物時，我們實際上談論的是堅果生意。那裡有很多樹木，所有這些樹木唯一的好處是它們都是機械化採伐的，所以我們並不真正擔心支付給採摘農作物的人的費用變化帶來的影響。我們仍然對此感到擔心，因為我們的許多財產都是草莓和其他需要快速完成和快速運輸的東西。

So for us, where problems are for us has been the fact that we can't recognize any projected income. And now, we're all sitting twiddling our thumbs trying to figure out when we're going to be able to get some real transactions done. As Bill mentioned, he mentioned that they are now starting to sell and deliver some of the crops, the nut crops, and I don't want to sell any right now. Bill wants to wait to see what the crops really look like.

因此，對我們來說，問題在於我們無法確認任何預期收入。現在，我們都坐在那裡無所事事，試圖弄清楚什麼時候才能完成一些真正的交易。正如比爾所提到的，他提到他們現在開始出售和交付一些農作物，堅果農作物，而我現在不想出售任何東西。比爾想等著看農作物的真實樣子。

So we all expect inflation, particularly in the food sector, to continue to increase over time. We expect the value of the underlying farmland to increase over time because the crops can go up, and so as long as they can make money, people will continue farming. And we expect this to especially be true with regard to healthy foods, such as the fresh fruits and vegetables we grow, as well as the nut crop.

因此，我們都預期通貨膨脹，特別是食品領域的通貨膨脹，將隨著時間的推移持續上升。我們預計，隨著時間的推移，農田的價值會上升，因為農作物可以長高，所以只要能賺錢，人們就會繼續耕種。我們希望這尤其適用於健康食品，例如我們種植的新鮮水果和蔬菜以及堅果作物。

Trend of more people going toward eating healthy foods, and especially the new HDA guy, is -- let's face it, he does not like all the garbage that our people are eating, and it leads to a lot of problems in the population. So expect Mr. Kennedy to continue to ring about that, and I think it's good for us because more people buy healthy foods like nuts, like berries. We have the largest farm that's based on cabbage of anybody I know, and so as a result, that's still making money.

越來越多的人開始吃健康食品，尤其是新的 HDA 傢伙，讓我們面對現實吧，他不喜歡我們的人民吃的所有垃圾食品，這給民眾帶來了很多問題。因此，預計肯尼迪先生將繼續就此發表講話，我認為這對我們有利，因為更多的人會購買堅果、漿果等健康食品。我們擁有我所知道的最大的以捲心菜為主的農場，因此，我們仍然可以賺錢。

Now, we'll get some questions in. Rather than me bumbling along, I'll get somebody to come on board and ask some good questions. Operator?

現在，我們來回答一些問題。我不會笨手笨腳地跟著，而是找人來加入並提出一些好的問題。操作員？

(Operator Instructions) Gaurav Mehta, Alliance Global Partners.

（操作員指示）Gaurav Mehta，Alliance Global Partners。

Thank you. Good morning. I wanted to follow up on your comments around participation rents. The $17 million that you guys talked about, how much of that are you expecting in 4Q of '25? And how much are you going to go next year?

謝謝。早安.我想跟進您關於參與租金的評論。你們談到的 1700 萬美元，你預計 2025 年第四季能達到多少？明年你要去多少？

So the $17 million, it's difficult for us to say right now because we don't know what the total number is going to be. If, for example, we have poor harvest results, then the participation rent that's coming from those leases could be less than that amount. If we have a great harvest, great pricing, then it could be higher. But the split between this year and next year, I think we're penciling probably about 60% to 65% this year, and the rest would be a little bit throughout the year, but most of it would be probably in Q4 next year.

所以，對於 1700 萬美元，我們現在很難說，因為我們不知道總數是多少。例如，如果我們的收成不好，那麼來自這些租約的參與租金可能會低於這個數字。如果我們有大豐收，價格合適，那麼價格可能會更高。但就今年和明年的比例而言，我認為我們預計今年的佔比大概在 60% 到 65% 左右，剩下的部分會在全年出現，但大部分可能會在明年第四季出現。

Okay. And so the way these leases work, would they automatically go to fixed rents, or they're going to get renewed at the participation rents?

好的。那麼這些租約的運作方式是，它們會自動轉為固定租金，還是會以參與租金續約？

I'm sorry. Could you repeat the question, please?

對不起。您能重複一下這個問題嗎？

Gaurav, they never automatically convert to fixed. And so we'll have to negotiate that again when the timeframe comes up, and that's usually before this year-end -- this calendar year-end.

Gaurav，它們永遠不會自動轉換為固定。因此，當時間到了，我們必須再次協商這個問題，通常是在今年年底之前——也就是今年年底之前。

Yes. These leases end later this year, so we'll be renegotiating them. If we can come to terms on a standard lease, that's great. But if not, then we may have to continue this structure for another year.

是的。這些租約將於今年稍後到期，因此我們將重新進行談判。如果我們能夠就標準租約達成協議，那就太好了。但如果不是，那麼我們可能必須再延續這種結構一年。

Okay. And then maybe switching to the balance sheet. Can you talk about your expectations for the Series D that's up for redemption in January of '26?

好的。然後也許轉換到資產負債表。您能談談對 26 年 1 月贖回的 D 系列的期望嗎？

Yeah. So we're still keeping our options open. We're in touch with underwriters. We're talking internally about cash availability using line of credit. So we can -- our options are we could pay it off with potentially with proceeds from property sales, the line of credit. That is about 1.7% lower than the rate that the Series D would go up to.

是的。所以我們仍然保留選擇權。我們正在與承銷商聯繫。我們正在內部討論使用信用額度的現金可用性。所以我們可以——我們的選擇是，我們可以用房地產銷售收益、信用額度來償還債務。這比 D 輪融資的利率低約 1.7%。

We can let it sit out there. It would go up from 5% to 8%. At current market rates of refinancing, that still is probably a more favorable option just in terms of what the refinancing rate would be plus all of the upfront costs, commissions, and whatnot. But right now, we're still kind of assessing things internally, cash availability, line of credit, seeing what makes sense to do come January, either pay it off or let it sit out there for a little bit, sell properties and pay off.

我們可以把它放在那裡。該比例將從 5% 上升至 8%。按照目前的再融資市場利率，就再融資利率加上所有前期成本、佣金等而言，這仍然可能是更有利的選擇。但目前，我們仍在內部評估一些情況，包括現金可用性、信用額度，看看到一月份該怎麼做才合理，要么還清債務，要么先放在那裡一段時間，然後出售房產再還清。

And Gaurav, one of the things that's so good right now is that the possibility of us making a lot of money from selling these products. For example, we could make, just best guesstimate right now, $8 million from selling one of our nut crops. And so for us, we've watched people do this for a long time. Unfortunately, the cost of capital and also all the changes that have gone into the farming area, it just destroyed a lot of our wonderful tenants. And one fellow I remember made a lot of money in years past, but now has lost about $8 million because of the changes that have gone.

Gaurav，目前最好的事情之一就是我們有可能透過銷售這些產品賺很多錢。例如，根據目前的最佳估計，我們可以透過出售一種堅果作物賺取 800 萬美元。對我們來說，我們已經觀察人們這樣做很久了。不幸的是，資本成本以及農業領域發生的所有變化，都摧毀了我們許多優秀的租戶。我記得有個人在過去幾年賺了很多錢，但現在卻因為發生的變化而損失了大約 800 萬美元。

So we want there to be a big crop and everybody to make money. But the other thing that goes on is when you have a big crop, you have prices go down. So if you're first to market and sell out, they can make more money than if you wait. Right now, we believe that this first tranche that's coming in, first buyers coming in, they're people that are way behind and need it because they don't have -- if you're in the candy business and you need a lot of nuts, you got a problem. I don't know where they're going to get them from, but it's going to be very interesting. I think you're going to see the prices move up pretty fast during the next year.

所以我們希望獲得大豐收，讓每個人都能賺錢。但另一件事是，當收成大的時候，價格就會下降。因此，如果您率先進行行銷並銷售出去，他們可以賺到比您等待時更多的錢。現在，我們相信第一批進來的貨物、第一批買家是那些遠遠落後的人，他們需要它，因為他們沒有——如果你從事糖果生意，你需要大量的堅果，那麼你就會遇到問題。我不知道他們要從哪裡得到它們，但這將會非常有趣。我認為明年你會看到價格上漲得相當快。

So from my standpoint, I think we're going to see an influx of a lot of people who want to get in the business of growing crops in the nut area. The nut area has been difficult for us. We caught it just at the wrong time. And now, it's coming back. And it will help a lot if the ones that have bought a lot of nuts on an international field, like all of the people that are in this business, are very dependent on the Chinese to buy a lot of nuts and they're very dependent on other countries.

因此，從我的角度來看，我認為我們會看到大量想要從事堅果種植業的人湧入。堅果區對我們來說一直很困難。我們是在錯誤的時間發現它的。現在，它又回來了。如果那些在國際上購買大量堅果的人，就像所有從事這個行業的人一樣，非常依賴中國人購買大量堅果，而且他們非常依賴其他國家，那麼這將會有很大幫助。

I was surprised when I read all of the reports on this that a lot of the crop that we grow in the almond size are sold in Spain, sold in a lot of the Middle Eastern countries. So for us, we normally don't have much on the international area. For example, in growing strawberries, those are grown and consumed here very quick. And so as a result, they never get to the international market.

當我讀到所有關於這方面的報道時，我感到很驚訝，我們種植的許多杏仁大小的作物都銷往西班牙和許多中東國家。因此對我們來說，我們在國際領域通常沒有太多動作。例如，種植草莓，這裡的草莓生長和消費都很快。因此，他們永遠無法進入國際市場。

So for me, it's a different area. I don't like it as much as I do the regular leasing business that we've been in since the beginning. And I think over time, as the profitability comes back to the markets in the nut side, well, we'll just convert back to leasing. And so I'm looking forward to that because I like that part of this business better.

所以對我來說，這是一個不同的領域。我不太喜歡它，因為我從一開始就喜歡我們從事的常規租賃業務。我認為，隨著時間的推移，隨著獲利能力回歸堅果市場，我們就會重新轉向租賃。所以我對此很期待，因為我更喜歡這個業務的這個部分。

Other questions, Gaurav?

還有其他問題嗎，Gaurav？

Yeah. Maybe lastly, you talked about some positive trends in almonds and pistachios. I was wondering, is there any other crop type within your portfolio that's not seeing positive trends, is still seeing softness as far as prices are concerned?

是的。最後，您也許談到了杏仁和開心果的一些正面趨勢。我想知道，您的投資組合中是否還有其他作物類型沒有出現正面的趨勢，就價格而言仍然疲軟？

I think that's true. Lewis, anything to add?

我認為這是真的。路易斯，還有什麼要補充的嗎？

Bill, do you want to give some commentary on that?

比爾，你想對此發表一些評論嗎？

The question was, are there other crop types showing weakness or softness in the markets? Was that correct, the question, Gaurav?

問題是，市場上是否還有其他作物類型表現出疲軟或疲軟？這個問題正確嗎，Gaurav？

Yeah. I guess you talked about positive trends in almonds and pistachios. I was wondering, within your portfolio, is there anything else that's not showing positive trends?

是的。我想您談論的是杏仁和開心果的正面趨勢。我想知道，在您的投資組合中，還有什麼沒有顯示出正面趨勢的嗎？

Not really. You have the ups and downs in some of the annual row crops, but those are just the normal whims of the market, so to speak. And those are usually driven by weather events in the short term, whether it's freezes or excess rain or heat spells.

並不真地。一些一年生作物的價格會有起伏，但可以說，這只是市場的正常波動。這些通常是由短期天氣事件引起的，無論是霜凍、過多的降雨或高溫。

But in annual row crops, our leases are -- we're not tied to the crops. There just isn't a mechanism. We just don't have anything like that. What the markets that are important to us are the permanent crops, because even in standard leases, a component of those leases is crop share. So that's always had a bigger impact on the market.

但對於一年生作物，我們的租約並不與作物掛鉤。只是沒有機制。我們根本沒有那樣的東西。對我們來說重要的市場是永久性作物，因為即使在標準租賃中，作物份額也是租賃的一部分。因此這總是對市場產生更大的影響。

Okay. Thank you. That's all I had.

好的。謝謝。這就是我所擁有的一切。

Okay. Operator, do we have a second question?

好的。接線員，我們還有第二個問題嗎？

Steven Dumanski, Janney Montgomery Scott.

史蒂文·杜曼斯基、珍妮·蒙哥馬利·斯科特。

Thank you. As discussed earlier in the call, with potential acquirers currently limited by their respective cost of capital, is it possible to project when you'll see more disposition opportunities? And also perhaps in terms of the feedback that you have received from any potential buyers?

謝謝。正如電話會議早些時候所討論的那樣，由於潛在收購者目前受到各自資本成本的限制，是否可以預測何時會看到更多的處置機會？或者也許就您從任何潛在買家那裡收到的反饋而言？

Well, certainly there are buyers out there, but they're all looking at very discounted prices for farms. And so they're coming in trying to gobble it up. And that's nice that they're there, but it's not something we're going to utilize our sales on.

嗯，當然有買家，但他們都希望以非常優惠的價格購買農場。所以他們就來試著吞噬它。他們在那裡很好，但我們不會利用我們的銷售額來做這件事。

And if you continue in Florida, I don't know, somebody mentioned there were 10,000 new families every week in Florida. The housing marketplace is going great. And we have people contacting us about paying a much higher price, but further down the road. And I don't want to tie up our farms in that. As long as they're producing a good amount of rental money, I want to stay in that part of the business. So we're watching it. And I'd say we're probably one of the thousands of farmers that are tied to your radio broadcast on farming prices every day.

如果你繼續在佛羅裡達州，我不知道，有人提到佛羅裡達州每周有 10,000 個新家庭。房地產市場發展良好。還有一些人聯絡我們，希望支付更高的價格，但時間更長。我不想讓我們的農場受此牽連。只要他們能產生可觀的租金收入，我就願意繼續從事這一行。所以我們正在觀看。我想說，我們可能是每天收聽您關於農產品價格廣播的數千名農民之一。

So Bill is probably as close to it as anybody. He's in California. He's in touch with all of the farms we have out there. So he is a resident expert on prices. And we listen to him when we get ready to sell something. He's not as, we still got some properties in the Midwest that we picked up along the way. And those are being put up for sale. We're going to sell them and stick to our knitting, which is things in the East that are related to our leasing business, as well as these eight farms that we have that we we are really becoming farmers.

因此，比爾可能和其他人一樣接近這一目標。他在加州。他與我們那裡的所有農場都有聯繫。因此，他是一位常駐價格專家。當我們準備出售某樣東西時，我們就會聽取他的意見。他不是，我們仍然在中西部擁有一些我們一路走來的財產。這些都正在出售。我們會把它們賣掉，然後繼續做我們的主業，也就是東部與我們的租賃業務相關的業務，以及我們擁有的八個農場，我們真的正在成為農民。

I haven't given a straw hat to everybody yet. But they all know that we are highly dependent on the price of commodity crops now.

我還沒給每個人髮草帽呢。但他們都知道，我們現在高度依賴商品作物的價格。

Thank you, David. And then lastly, can you please expand on the decrease on a quarter-over-quarter basis for the acre feet of water you own? Just want to see if the variance was based on a remeasurement or other factor.

謝謝你，大衛。最後，您能否詳細說明您所擁有的水資源每季的減少情況？只是想看看差異是否基於重新測量或其他因素。

No, that was just -- I think it was a 44-acre foot decrease quarter on quarter. That was just because we use a small amount. Now, we record water credit recognition a quarter in arrears. So this is really reflective of water usage in the first quarter of the year. But it was just in some tentative transition on one property, working to get wells transitioned over from different accounts, power company, everything. But the trees needed watering right then. So we just used a 44 acre feet of water that we had stored to get the trees irrigated while we were working to get the wells transferred over.

不，那隻是——我認為季度環比減少了 44 英畝英尺。那隻是因為我們使用的量很少。現在，我們記錄的水費信用確認已經拖欠了一個季度。這確實反映了今年第一季的用水量。但這只是對一處地產進行的一些試探性過渡，致力於將油井從不同的帳戶、電力公司等轉移過來。但那時樹木就需要澆水。因此，我們只是使用了儲存的 44 英畝英尺的水來灌溉樹木，同時我們正在努力將水井轉移過來。

Thank you. That's very helpful.

謝謝。這非常有幫助。

Other questions, Steve?

還有其他問題嗎，史蒂夫？

That's it for me. Thank you, gentlemen.

對我來說就是這樣。謝謝各位。

All right. Thank you for calling in. And do we have any more, operator?

好的。謝謝您的來電。接線員，還有其他嗎？

John Massocca, B. Riley Securities.

約翰·馬索卡 (John Massocca)，B. Riley 證券。

Good morning, everyone. So maybe sticking with the theme of water, what are you seeing right now in terms of the impact of Sigma at some of your properties? Has that kind of largely played out? Or do you think there are certain specific assets that, for whatever reason, maybe don't have -- where your bank water would maybe be less useful that are still at risk? Is that all kind of -- all the regulatory changes, all the water needs kind of already been determined? Just kind of where are we in that process?

大家早安。那麼，也許繼續討論水的主題，就 Sigma 對您的某些物業的影響而言，您現在看到了什麼？這種情況已經基本實現了嗎？或者您認為某些特定資產，無論出於何種原因，可能沒有——您的銀行資金可能沒那麼有用，仍然處於風險之中？是不是所有的監管變化、所有的用水需求都已經確定了？我們目前處於這個過程的哪個階段？

No, there's still changes coming from Sigma. So far, we seem to be ahead of the curve on that. But you never know what the government's going to do. So they're meeting -- there's been lawsuits that have been filed by groups of farmers. In fact, I think we're one of the participants in one of those suits.

不，Sigma 仍會做出改變。到目前為止，我們似乎在這方面處於領先地位。但你永遠不知道政府會做什麼。所以他們開會了——農民團體已經提起了訴訟。事實上，我認為我們是其中一起訴訟的參與者之一。

And so the government gets a little antsy and starts favoring some of their friends. And that makes it very difficult to figure out what to do. Right now, we are in good shape. We're not in excellent shape, but I don't think we got any problems coming in the water side this year. This year has been a good year for us. And I think, quite frankly, most of the farms could stand two or three more years without good year-end.

因此政府變得有點焦躁並開始偏袒他們的一些朋友。這使得我們很難弄清楚該做什麼。目前，我們的狀況良好。我們的狀態並不是很好，但我認為今年我們在水方面沒有遇到任何問題。今年對我們來說是好的一年。而且我認為，坦白說，大多數農場可能還要忍受兩三年沒有好的年終表現。

So water prices, I think, are going to hurt some people if we get a dry year this year. And we are not going to have that problem. So water is -- you're right to emphasize the water side of the business because it's not as important as the trees, but the water for the trees are very important. And you can't grow strawberries without a lot of water. And a lot of the vegetables are very, very heavy in the water side using water. But we do most of our heavy water growing in the East, which, and certainly in Florida, you stick a stick in the ground and water comes up because it's so low down there.

因此，我認為，如果今年遭遇乾旱，水價將會對一些人造成傷害。我們不會遇到這樣的問題。所以水是——你強調業務中的水方面是正確的，因為它不如樹木重要，但水對樹木來說非常重要。如果沒有大量的水，草莓就無法生長。而且很多蔬菜在用水方面都非常非常重。但是我們的重水大部分產於東部，尤其是在佛羅裡達州，你把一根棍子插入地面，水就會浮上來，因為那裡的地勢很低。

But at the end of the day, the worry for water is all over California. And we seem to be in great shape thanks to the team that has found water at a reasonably low price and we've bought it. And we store it in the aquifers. And so we've become big holders of water in the aquifers. And we did -- during the year when it was raining so much, we built up some of the farms that we have and poured water from the creeks and other places into that.

但最終，整個加州都為水資源問題擔憂。而且由於團隊以相當低的價格找到了水並且我們購買了它，所以我們看起來狀況很好。我們將其儲存在含水層中。因此，我們已成為含水層中水資源的大持有者。我們確實這麼做了——在雨水特別多的那年，我們建造了一些農場，並從小溪和其他地方引水到農場。

In fact, the kids that are doing that for us were laughing really hard because they kept calling it Lake Gladstone. We have a lot of water under the ground. It goes pretty fast. And while we have 18 billion gallons, you just never know how dry it's going to be. Right now, the weather in California is beautiful. But it's great for growing as long as you have water.

事實上，為我們做這件事的孩子們笑得很開心，因為他們一直稱它為格拉斯頓湖。我們地下有很多水。它進行得相當快。儘管我們有 180 億加侖的水，但你永遠不知道乾旱會到什麼程度。目前，加州的天氣很好。但只要有水，它就很適合生長。

And Bill, you got anything you want to say about the water?

比爾，你對水還有什麼想說的嗎？

John, it's a great question around Sigma. Our philosophy from the beginning was to -- we decided early on, we didn't know what the restrictions were going to look like. And we knew it was going to change over time. But we started out like, okay, we're not going to fallow an acre. We're going to figure out how on every farm that's affected by Sigma, but we're going to figure out how do we get supplemental water.

約翰，這是關於 Sigma 的一個很好的問題。我們從一開始的理念就是──我們很早就決定了，我們不知道限制會是什麼樣子。我們知道它會隨著時間的推移而改變。但我們一開始就想，好吧，我們不會休耕一英畝土地。我們將弄清楚每個受到 Sigma 影響的農場的情況，但我們將弄清楚如何獲得補充水。

The focus immediately went to a long-term viewpoint on it. That's why the investment in delivery infrastructure, identifying groundwater basins where we can store water. And then we've been very fortunate in having some wet winters that has made a lot of water available at very good pricing. And so that's been how we've attacked it. And so we've put ourselves in a really positive position.

人們的注意力立即轉移到了長遠的觀點上。這就是為什麼我們要投資輸水基礎設施，確定可以儲水的地下水盆地。而且我們非常幸運，經歷了幾個雨水充沛的冬天，可以以非常優惠的價格獲得大量的水。這就是我們攻擊它的方法。因此，我們已將自己置於非常積極的地位。

I would say one of all of the land portfolios in California owned by different folks, particularly investment companies, investment funds, I would say the water security of our portfolio is one of the best. And so we just continue to do that as things evolve. We've been involved in two water adjudications. There's probably going to be another one, maybe two that will impact us. But our focus has really been on the -- rather than the fight over initial allocations, it's really been on, okay, what are we going to -- let's assume we have this allocation, what are we going to do to supplement and focus on projects that will help us replace some of that?

我想說，在加州由不同人士（特別是投資公司、投資基金）擁有的所有土地投資組合中，我們的投資組合的水資源安全性是最好的之一。因此，隨著事態的發展，我們將繼續這樣做。我們曾參與兩次水資源裁決。可能還會有另外一次，甚至兩次，對我們產生影響。但我們的重點實際上不是爭奪初始分配，而是，好吧，我們要做什麼——假設我們有這個分配，我們要做什麼來補充和關注可以幫助我們取代其中的一些項目？

So yeah, the big impact on Sigma that we really are trying to work around -- work to avoid is we're starting to see land values bifurcate. And so properties that have really weak water access are really dropping in value. Properties that have extra infrastructure and a really good water district, those are maintaining value and even possibly increasing in value. So we're really seeing the real estate market follow how -- follow the impacts of Sigma. And I would say our team out here, the West Coast team, probably spends 70% of its time -- 75% of its time on Sigma-related issues.

是的，我們真正想要解決的對 Sigma 的巨大影響——要避免的是，我們開始看到土地價值出現分歧。因此，水源匱乏的房產價值確實在下降。擁有額外基礎設施和真正優質水區的房產能夠保持其價值，甚至可能增加其價值。因此，我們確實看到房地產市場如何跟隨 Sigma 的影響。我想說，我們這裡的團隊，西海岸團隊，大概將 70% 到 75% 的時間花在與 Sigma 相關的問題上。

One thing I'll add to that, John, is for the past three years or so, as we've said, we've had wet to average years out in California, which has made, as Bill said, a lot of good buying opportunities. Now, those buying opportunities have been there for every farmer out there. Most farmers don't have the infrastructure that we've built for these groundwater recharge facilities or water banks as we call them.

約翰，我想補充一點，正如我們所說，在過去三年左右的時間裡，加州的降雨量一直處於平均水平，正如比爾所說，這創造了許多良好的購買機會。現在，每個農民都有了這樣的購買機會。大多數農民沒有我們為這些地下水補給設施或我們所說的水庫所建造的基礎設施。

Everybody's been able to buy the water, but most growers don't have anywhere to store it like we do. So we've even had neighboring landowners asking us if we can store water for them in exchange for some cash payment or leaving water behind. So it's a small -- it provides for a small revenue stream in addition as well. But really, the benefit is that the water that we're storing is going to put us at a huge advantage when the next drought period comes.

每個人都可以買到水，但大多數種植者沒有地方像我們一樣儲存水。因此，甚至有鄰近的土地所有者詢問我們是否可以為他們儲存水，以換取一些現金支付或留下水。所以它很小——此外它還提供了少量的收入來源。但實際上，好處是，當下一個乾旱期來臨時，我們儲存的水將為我們帶來巨大的優勢。

Not that we're looking for a drought, but right now, we have about $35 million of cash that's been invested in these water assets. That's an average of about $600 per acre foot. However, if you compare that price to what the last price for water was in the last -- at the end of the most recent drought, it's about a third of that price. So again, not that we're wishing for a drought, but that's when we're really going to be able to recognize the benefits of all this water we have stored up.

我們並不是希望出現乾旱，但目前，我們已經在這些水資源資產上投資了約 3,500 萬美元的現金。平均每英畝英尺約 600 美元。然而，如果將這個價格與上次乾旱結束時的水價進行比較，就會發現水價大約是這個價格的三分之一。所以，我們並不是希望發生乾旱，而是只有當乾旱發生時，我們才能真正認識到儲存的水的益處。

Yeah. And we know droughts come. It's inevitable. We know it's going to come. We don't know when, but we know it's going to come, and it's going to be the worst drought ever. And we're just being prepared for that.

是的。我們知道乾旱即將來臨。這是不可避免的。我們知道它會到來。我們不知道什麼時候會發生，但我們知道它終將來臨，而且這將是有史以來最嚴重的乾旱。我們正在為此做準備。

John, you have any other questions?

約翰，你還有其他問題嗎？

Understood. So yeah, maybe building on the operated properties a little bit, is there a level that you think would be a floor based on the crop insurance you have in place today for the impact on probably 4Q revenues?

明白了。是的，也許稍微建立在經營的資產上，根據您目前實施的農作物保險，您是否認為對第四季度收入的影響有一個底線？

Well, I'd say that the -- not necessarily for Q4, but overall, between these eight properties, we've invested about $25 million. And to the cost of the growing the crops, and that includes the $17 million, that's just from those -- from the six properties that we modified the leases. There's also two properties that we're directly operating ourselves with the help of third-party operators.

嗯，我想說——不一定是第四季度，但總體而言，在這八處房產之間，我們已經投資了約 2500 萬美元。至於種植農作物的成本，其中包括 1700 萬美元，這些只是來自——我們修改了租約的六處房產。還有兩處房產是我們自己直接經營，並藉助第三方業者的幫助進行的。

But about $25 million have been invested between those eight properties in total. And insurance would, I think, cover all of our costs and maybe provide it with a small profit. The split of that, I would say, is probably a similar split from the question answered earlier, probably about 60% to 65% this year with the remaining next year. That is the worst-case scenario, meaning we can't harvest any crops and we can't sell them, which we already know is not going to be the case. Yet we're going to have a total crop loss on these properties. But yes, crop insurance would cover the costs that we put into these properties.

但這八處房產的總投資額約為 2,500 萬美元。我認為保險可以承擔我們所有的費用，甚至可能帶來少量利潤。我想說的是，其中的分配可能與之前回答的問題類似，今年大概是 60% 到 65%，剩下的部分明年再說。這是最糟糕的情況，意味著我們無法收穫任何農作物，也無法出售它們，但我們已經知道情況不會發生。然而，這些土地上的農作物卻將全部損失。但是，農作物保險確實可以承擔我們在這些土地上投入的成本。

I'll add a quick note to that. With the crop insurance, and there's a lot of nuance to it, but generally speaking, the better the property, the better performing property, because it's based on historical, but the better performing property, the better the crop insurance. There's this little bit of irony where the best -- most well-insured situation is probably a property that's never going to experience that because they're really good performing properties. So when we say we have good crop insurance, that should tell you that those assets are above average. They beat industry averages and they're just good performing assets.

我將對此進行簡要說明。對於農作物保險，它有很多細微差別，但一般來說，財產越好，表現就越好，因為它是基於歷史的，但財產表現越好，農作物保險就越好。諷刺的是，最好的——保險最完善的房產可能永遠不會遭遇這種情況，因為它們的表現確實很好。因此，當我們說我們有良好的農作物保險時，這應該告訴你這些資產高於平均水平。它們的表現超出了行業平均水平，是表現良好的資產。

And the last one for me -- yes, last one for me on the balance sheet side. Given you have kind of more of an operating component, at least in the near term, how comfortable are you -- I guess, where would you want to see that cash balance stay at a minimum? And I'm just thinking about it in the context of -- you have a decent amount of cash still on the balance sheet, could be using it to pay down debt maturities. Should we expect the cash level to try to stay near where it is today? Or could you continue to use that to pay down debt as it matures?

對我來說，這是最後一個——是的，資產負債表方面的最後一個。鑑於您擁有更多的營運組件，至少在短期內，您感覺如何——我想，您希望看到現金餘額保持在最低水平嗎？我只是在這樣的背景下考慮這個問題——你的資產負債表上仍有相當數量的現金，可以用它來償還到期債務。我們是否應該預期現金水準將維持在目前的水準附近？或者您可以繼續用它來償還到期的債務嗎？

I wouldn't look at the cash level, it's more the overall liquidity we have. As of 6/30, we have $30 million of cash on the balance sheet. We also have an undrawn line of credit for -- well, actually, we have two lines of credit that total about $87 million. So those are immediately funds available to us. We also have other undrawn notes.

我不會關注現金水平，而是更關注我們的整體流動性。截至 6 月 30 日，我們的資產負債表上有 3,000 萬美元現金。我們還有未動用的信用額度——實際上，我們有兩條信用額度，總額約 8,700 萬美元。所以這些都是我們可以立即使用的資金。我們還有其他未提取的票據。

So right now, we're looking at about $150 million of immediately available funds to us. If we had to operate all of these eight properties again, then we would pencil in $25 million for that. We have $17 million of principal payments coming due. So we want to maintain probably at least $50 million of availability for the next 12 months at all times, and we're well covered there. In addition to that, we also have $170 million of properties that are unpledged that would give us another $100 million of borrowing capacity if interest rates got attractive or if we needed it for other reasons.

因此，目前，我們正在考慮約 1.5 億美元的可立即使用的資金。如果我們必須再次經營這八處房產，那麼我們將為此投入 2500 萬美元。我們有 1700 萬美元的本金即將到期。因此，我們希望在未來 12 個月內始終保持至少 5000 萬美元的可用資金，並且我們已經做好了充分的準備。除此之外，我們還有價值 1.7 億美元的未抵押資產，如果利率變得有吸引力或我們因其他原因需要藉貸，這些資產將為我們提供另外 1 億美元的借貸能力。

Okay. Understood. That's it for me. Thank you very much.

好的。明白了。對我來說就是這樣。非常感謝。

Okay. Operator, do we have anybody else that wants to talk to us?

好的。接線員，還有其他人想跟我們通話嗎？

There are no further questions at this time.

目前沒有其他問題。

Well, that's a shame. We like answering questions. So we hope you guys will send up some good questions for us next time, and we expect that we're going to know a lot more about these farms at the next session that we have. That's the end of this conversation, and we thank you all. See you next quarter.

嗯，真可惜。我們喜歡回答問題。所以我們希望你們下次能向我們提出一些好的問題，我們希望在下次會議上我們能對這些農場有更多的了解。本次談話到此結束，感謝大家。下個季度見。

Thank you. That will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

謝謝。今天的會議就到此結束。此時您可以斷開您的線路，感謝您的參與。