Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2021
Subsequent Events [Abstract]  
Portfolio Activity
Acquisition Activity
Subsequent to September 30, 2021, we acquired two new farms, which are summarized in the table below (dollars in thousands, except for footnotes):
No. of
Crop(s) / Use
Lerdo Highway (Phase III)(3)(4)
Kern, CA 10/8/2021 1,284 1 Conventional & organic almonds, conventional & organic pistachios, and banked water 10.1 years
3 (10 years)
$ 42,959  $ 77  $ 1,981 
Raymond Road(4)
Madera, CA 10/21/2021 219 1 Almonds 10.0 years
1 (5 years)
3,300  50  183 
1,503 2 $ 46,259  $ 127  $ 2,164 
(1)Acquisitions will be accounted for as asset acquisitions in accordance with ASC 360. The figures above represent only costs paid or accrued for as of the date of this filing.
(2)Annualized straight-line rent is based on the minimum cash rental payments guaranteed under the applicable leases, as required under GAAP, and excludes contingent rental payments, such as participation rents.
(3)As part of the acquisition of this property, we acquired a contract to purchase 19,670 acre-feet of water stored with SWSD, located in Kern County, California, at a fixed price. We executed this contract on October 11, 2021, at an additional cost of approximately $1.2 million, which is included in the total purchase price for this property in the table above. Rent is not currently being earned on the value attributable to the water.
(4)Lease provides for an annual participation rent component based on the gross crop revenues earned on the farm. The rent figure above represents only the minimum cash guaranteed under the lease.
Financing Activity
Borrowing Activity
Future Borrowings
Subsequent to the quarter ended September 30, 2021, we entered into certain agreements to provide for future financings. The terms of these agreements are summarized in the following table (dollars in thousands):
Issuer Expected Funding Period Amount
Stated Interest Rate(1)
Interest Rate Terms
Rabo AgriFinance, LLC Q4 2021 $ 22,620  3.42%
Fixed throughout term(2)
Farmer Mac Q4 2021 1,290  3.32% Fixed throughout term
American AgCredit
2,990  3.00% Variable, as determined by lender
(1)Where applicable, stated rate is before interest patronage, as described in Note 4 “Borrowings—Farm Credit Notes Payable—Interest Patronage.”
(2)Pursuant to an interest rate swap agreement entered into with Rabo AgriFinance, LLC, the loan will bear interest at a fixed rate of 3.42% through November 2030.
(3)A portion of this loan is tied to an ongoing development project and will not be fully available to us until the project is complete. The completion of the development project and the receipt of these loan proceeds are both expected to occur by May 2023.
In connection with securing the above borrowings, Gladstone Securities, an affiliate of ours, earned total financing fees of approximately $43,000.
Equity Activity
The following table provides information on equity sales that have occurred subsequent to September 30, 2021 (dollars in thousands, except per-share amounts):
Type of Issuance Number of
Shares Sold
Weighted Average Offering Price
Per Share
Gross Proceeds
Net Proceeds(1)
Series C Preferred Stock(2)
395,405 $ 24.95  $ 9,866  $ 8,995 
Common Stock – ATM Program 2,166,024 23.07  49,970  49,470 
(1)Net of Selling Commissions and Dealer-Manager Fees or underwriting discounts and commissions (in each case, as applicable).
(2)Excludes approximately 1,894 shares issued pursuant to the DRIP.
On October 12, 2021, our Board of Directors authorized and we declared the following monthly cash distributions to holders of our preferred and common stock:
Issuance Record Date Payment Date Distribution per Share
Series B Preferred Stock: October 22, 2021 October 29, 2021 $ 0.125 
November 19, 2021 November 30, 2021 0.125 
December 23, 2021 December 31, 2021 0.125 
Total Series B Preferred Stock Distributions: $ 0.375 
Series C Preferred Stock: October 28, 2021 November 5, 2021 $ 0.125 
November 29, 2021 December 6, 2021 0.125 
December 29, 2021 January 5, 2022 0.125 
Total Series C Preferred Stock Distributions: $ 0.375 
Series D Term Preferred Stock: October 22, 2021 October 29, 2021 $ 0.104167 
November 19, 2021 November 30, 2021 0.104167 
December 23, 2021 December 31, 2021 0.104167 
Total Series D Term Preferred Stock Distributions: $ 0.312501 
Common Stock(1):
October 22, 2021 October 29, 2021 $ 0.0452 
November 19, 2021 November 30, 2021 0.0452 
December 23, 2021 December 31, 2021 0.0452 
Total Common Stock Distributions: $ 0.1356 
(1)The same amounts paid to common stockholders will be paid as distributions on each OP Unit held by non-controlling OP Unitholders as of the above record dates.