Borrowings (Tables)
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9 Months Ended |
Sep. 30, 2017 |
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| Debt Instrument [Line Items] |
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| Summary of Borrowings |
Our borrowings as of September 30, 2017, and December 31, 2016 are summarized below (dollars in thousands):
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Carrying Value as of |
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As of September 30, 2017 |
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September 30, 2017 |
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December 31, 2016 |
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Stated Interest
Rates(1)
(Range; Wtd Avg)
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Maturity Dates
(Range; Wtd Avg)
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Mortgage notes and bonds payable: |
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Fixed-rate mortgage notes payable |
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$ |
207,618 |
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|
$ |
142,861 |
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2.90%–4.47%; 3.59%
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6/1/2020–11/1/2041; April 2029
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Fixed-rate bonds payable |
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84,518 |
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49,348 |
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2.38%–4.05%; 3.13%
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7/30/2018–8/30/2024; June 2021
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Total mortgage notes and bonds payable |
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292,136 |
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|
192,209 |
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|
|
|
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Deferred financing costs – mortgage notes and bonds payable |
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(1,902 |
) |
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(1,412 |
) |
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N/A |
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N/A |
Mortgage notes and bonds payable, net |
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$ |
290,234 |
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|
$ |
190,797 |
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Variable-rate revolving lines of credit |
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$ |
5,100 |
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$ |
16,550 |
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3.55% |
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4/5/2024 |
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Total borrowings, net |
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$ |
295,334 |
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$ |
207,347 |
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(1) |
Where applicable, stated interest rates are before interest patronage (as described below). |
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| Schedule of Aggregate Maturities |
Scheduled principal payments of our aggregate mortgage notes and bonds payable as of September 30, 2017, for the succeeding years are as follows (dollars in thousands):
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Period |
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Scheduled
Principal Payments
|
For the remaining three months ending December 31: |
2017 |
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$ |
601 |
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For the fiscal years ending December 31: |
2018 |
|
23,433 |
|
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2019 |
|
11,060 |
|
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2020 |
|
26,484 |
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2021 |
|
7,242 |
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2022 |
|
36,089 |
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Thereafter |
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187,227 |
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$ |
292,136 |
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| Metlife Term Loans |
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| Debt Instrument [Line Items] |
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| Schedule of Borrowings by Type |
In May 2017, we also entered into two new loan agreements with MetLife (collectively, the "Individual MetLife Notes"), the terms of which are summarized in the aggregate in the table below (dollars in thousands):
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Date of Issuance |
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Amount |
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Maturity Date |
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Principal Amortization |
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Interest Rate Terms |
5/31/2017 |
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$15,300 |
(1) |
2/14/2022 & 2/14/2025 |
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28.6 years |
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3.55% & 3.85%, fixed throughout their respective terms |
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|
(1) |
Proceeds from these notes were used for the acquisition of a new property. |
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| MetLife Facility |
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| Debt Instrument [Line Items] |
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| Schedule of Borrowings by Type |
The following table summarizes the pertinent terms of the MetLife Facility as of September 30, 2017 (dollars in thousands, except for footnotes):
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Issuance |
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Aggregate
Commitment
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Maturity
Dates
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Principal
Outstanding
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|
Interest Rate Terms |
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Undrawn
Commitment
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|
MetLife Term Notes |
|
$ |
150,000 |
|
(1) |
1/5/2029 |
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$ |
131,210 |
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3.30%, fixed through 1/4/2027 |
(2) |
$ |
13,530 |
|
(3),(4) |
MetLife Lines of Credit |
|
50,000 |
|
|
4/5/2024 |
|
5,100 |
|
|
3-month LIBOR + 2.25% |
(5) |
44,900 |
|
(3) |
Total principal outstanding |
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$ |
136,310 |
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(1) |
If the aggregate commitment under the MetLife Facility is not fully utilized by December 31, 2018, MetLife has the option to be relieved of its obligation to disburse the additional funds under the MetLife Term Notes.
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(2) |
Represents the blended interest rate on the MetLife Term Notes as of September 30, 2017. Interest rates for subsequent disbursements will be based on then-prevailing market rates. The interest rate on all then-outstanding disbursements will be subject to adjustment on January 5, 2027. Through December 31, 2018, the MetLife Term Notes are also subject to an unused fee of 0.20% on undrawn amounts.
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(3) |
Based on the properties that were pledged as collateral under the MetLife Facility, as of September 30, 2017, the maximum additional amount we could draw under the facility was approximately $12.9 million.
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(4) |
Net of amortizing principal payments of approximately $5.3 million.
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(5) |
The interest rate on the MetLife Lines of Credit is subject to a minimum annualized rate of 2.50%, plus an unused fee of 0.20% on undrawn amounts. The interest rate spread will be subject to adjustment on October 5, 2019. As of September 30, 2017, the interest rate on the MetLife Lines of Credit was 3.55%.
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| Farm Credit Notes Payable |
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| Debt Instrument [Line Items] |
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| Schedule of Borrowings by Type |
During the nine months ended September 30, 2017, we entered into the following loan agreements with Farm Credit (dollars in thousands):
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Issuer |
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Date of Issuance |
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Amount(1)
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Maturity Date |
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Principal Amortization |
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Interest Rate Terms(2)
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Farm Credit CFL(3)
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7/13/2017 |
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$ |
5,472 |
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|
8/1/2022 |
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28.4 years |
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4.47%, fixed throughout term |
Farm Credit West |
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7/17/2017 |
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8,162 |
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5/1/2037 |
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20.0 years |
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4.31%, fixed through 7/31/2024, variable thereafter |
CF Farm Credit |
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6/14/2017 |
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1,301 |
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7/1/2022 |
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40.2 years |
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4.41%, fixed throughout its term |
Farm Credit FL |
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8/9/2017 |
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5,820 |
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3/1/2037 |
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19.5 years |
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4.70%, fixed through 2/29/2024, variable thereafter |
NW Farm Credit |
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9/8/2017 |
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5,460 |
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9/1/2024 |
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39.6 years |
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4.41%, fixed throughout its term |
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(1) |
Proceeds from these notes were used to fund new acquisitions, to repay existing indebtedness, and for other general corporate purposes. |
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(2) |
Stated rate is before interest patronage, as discussed below. |
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(3) |
During the three months ended September 30, 2017, we amended four existing loan agreements with Farm Credit CFL to increase the loan amounts and adjust the principal amortization and interest rate terms as shown in the table above. The amount presented in the table above represents the total additional funds advanced under the four loans. The new terms of each of these four loans are pari passu with one another.
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The following table summarizes, in the aggregate, the pertinent terms of the loans outstanding from Farm Credit (collectively, the "Farm Credit Notes Payable") as of September 30, 2017 (dollars in thousands, except for footnotes):
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Issuer |
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# of Loans
Outstanding
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Dates of Issuance |
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Maturity Dates |
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Principal
Outstanding
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Stated Interest
Rate(1)
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|
Farm Credit CFL |
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8 |
|
9/19/2014 – 7/13/2017 |
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6/1/2020 – 10/1/2040 |
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$ |
27,472 |
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4.15% |
(2) |
Farm Credit West |
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3 |
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4/4/2016 – 7/17/2017 |
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5/1/2037 – 11/1/2041 |
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21,054 |
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3.91% |
(3) |
CF Farm Credit |
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1 |
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6/14/2017 |
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7/1/2022 |
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1,301 |
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4.41% |
(4) |
Farm Credit FL |
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1 |
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8/9/2017 |
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3/1/2037 |
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5,820 |
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4.70% |
(4) |
NW Farm Credit |
|
1 |
|
9/8/2017 |
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9/1/2024 |
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5,460 |
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4.41% |
(4) |
Total |
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14 |
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|
$ |
61,107 |
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|
(1) |
Represents the weighted-average, blended rate (before interest patronage, as discussed below) on the respective borrowings as of September 30, 2017.
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(2) |
In April 2017, we received interest patronage of approximately $124,000 related to interest accrued on loans from Farm Credit CFL during the year ended December 31, 2016, which resulted in a 15.8% reduction (approximately 55 basis points) to the stated interest rates on such borrowings. In March 2016, we received interest patronage related to loans from Farm Credit CFL of approximately $94,000.
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(3) |
In February 2017, we received interest patronage of approximately $59,000 related to interest accrued on loans from Farm Credit West during the year ended December 31, 2016, which resulted in a 21.3% reduction (approximately 76 basis points) to the stated interest rates on such borrowings. We did not receive any patronage related to loans from Farm Credit West during the prior year.
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(4) |
To date, no interest patronage has been received or recorded associated with these loans, as they were not outstanding during 2016. |
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| Farmer Mac Bonds Payable |
|
| Debt Instrument [Line Items] |
|
| Schedule of Borrowings by Type |
During the nine months ended September 30, 2017, we issued five bonds for gross proceeds of approximately $35.6 million, the terms of which are summarized, in the aggregate, in the table below (dollars in thousands):
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Date of Issuance |
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Gross
Proceeds(1)
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Maturity Dates |
|
Principal Amortization |
|
Interest Rate Terms |
1/12/2017-8/30/2017 |
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$ |
35,625 |
|
(1) |
1/10/2020 – 8/30/2024 |
|
None |
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2.80% – 4.05%, fixed throughout their respective terms |
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|
(1) |
Proceeds from these bonds were used for the acquisitions of new properties. |
The following table summarizes, in the aggregate, the terms of the 14 bonds outstanding under the Farmer Mac Facility as of September 30, 2017 (dollars in thousands):
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Dates of Issuance |
|
Initial Commitment |
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Maturity Dates |
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Principal Outstanding |
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Stated
Interest
Rate(1)
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|
Undrawn Commitment |
|
12/11/2014–8/30/2017 |
|
$ |
125,000 |
|
(2) |
7/30/2018–8/30/2024 |
|
$ |
84,519 |
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|
3.13% |
|
$ |
39,118 |
|
(3) |
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|
(1) |
Represents the weighted-average interest rate as of September 30, 2017.
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(2) |
If the balance of the Farmer Mac Facility is not fully utilized by December 11, 2018, Farmer Mac has the option to be relieved of its obligations to purchase additional bonds under the facility.
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(3) |
As of September 30, 2017, there was no additional availability to draw under the Farmer Mac Facility, as no additional properties had been pledged as collateral.
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