Financial Performance

• Revenue for the quarter was $20.3 million, down 4.5% from $21.2 million in the same quarter last year. This was mainly due to the sale of one farm in January 2024.

• Net income was $13.6 million, up significantly from $1.8 million in the same quarter last year. This was primarily driven by a $10.4 million gain on the sale of a farm.

• Operating income was $7.3 million, down slightly from $7.4 million in the same quarter last year.

Revenue and Profit Trends

• Same-property lease revenue has remained relatively flat over the past year. Variable lease revenue from participation rents decreased due to insufficient information to determine the amounts.

• Revenue from vacant, direct-operated or non-accrual properties decreased 81% due to issues collecting rent from some tenants.

• Interest expense decreased due to lower debt levels. Other income also decreased due to less interest patronage received from lenders.

Strengths and Weaknesses

Strengths:

• Large and diversified portfolio of 168 farms across 15 states

• 99.9% of debt is fixed-rate, with a weighted average term of 8.7 years

• Strong liquidity position with $203.5 million of available liquidity

Weaknesses:

• Exposure to credit issues with some tenants

• Challenging to find new tenants for vacant properties in a timely manner

Outlook

• Actively seeking acquisitions of additional farms and facilities

• Expect to come to agreement on vacant properties within 6 months

• Well-protected against interest rate increases for next 4+ years

• Adequate liquidity to cover near- and long-term debt and expenses

Let me know if you would like me to clarify or expand on any part of this summary. I tried to capture the most important points in simple language but can provide more details if needed.