Gladstone Land Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Real Estate and Intangible Assets (Tables)

Real Estate and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2014

Property Plant And Equipment [Abstract]

The following table provides certain summary information about our 21 farms as of March 31, 2014:


					Number						Lease
			Date		of		Total		Farmable		Expiration		Net Cost
Property Name	Location		Acquired		Farms		Acres		Acres		Date		Basis⁽¹⁾		Encumbrances
San Andreas		Watsonville, CA		6/16/1997		1		307		237		12/31/2014	$	4,855,100	$	100,000	⁽²⁾
West Gonzales		Oxnard, CA		9/15/1998		1		653		502		6/30/2020		12,339,049		26,784,299
West Beach		Watsonville, CA		1/3/2011		3		196		195		12/31/2023		8,383,970		4,997,773
Dalton Lane		Watsonville, CA		7/7/2011		1		72		70		10/31/2015		2,718,326		1,648,264
Keysville Road		Plant City, FL		10/26/2011		2		59		50		7/1/2016		1,230,758		880,644
Colding Loop		Wimauma, FL		8/9/2012		1		219		181		6/14/2018		3,980,623		2,089,764
Trapnell Road		Plant City, FL		9/12/2012		3		124		110		6/30/2017		4,227,983		2,317,577
38th Avenue		Covert, MI		4/5/2013		1		119		89		4/4/2020		1,343,135		788,813
Sequoia Street		Brooks, OR		5/31/2013		1		218		206		5/31/2028		3,176,000		1,824,864
Natividad Road		Salinas, CA		10/21/2013		1		166		166		10/31/2024		7,456,086		—
20th Avenue		South Haven, MI		11/5/2013		3		151		94		11/4/2018		1,994,669		—
Broadway Road		Moorpark, CA		12/16/2013		1		60		60		12/15/2023		3,001,717		—
Oregon Trail		Echo, OR		12/27/2013		1		1,895		1,640		12/31/2023		14,049,596		—
East Shelton		Willcox, AZ		12/27/2013		1		1,761		1,320		2/29/2024		7,222,449		—

						21		6,000		4,920			$	75,979,461	$	41,431,998

⁽¹⁾

Consists of the initial acquisition price (including the costs allocated to both tangible and intangible assets), plus subsequent improvements and other capitalized costs associated with the properties, and adjusted for depreciation and amortization accumulated through March 31, 2014.

⁽²⁾

Represents borrowings outstanding on our line of credit as of March 31, 2014, under which San Andreas is pledgd as collateral.

Summary of Components of Investments in Real Estate

The following table sets forth the components of our investments in tangible real estate assets as of March 31, 2014, and December 31, 2013:


	March 31, 2014			December 31, 2013
Real estate:
Land and land improvements	$	63,993,859		$	63,944,307
Buildings and improvements		2,193,604			2,193,255
Coolers		5,388,051			5,293,796
Irrigation system		6,506,836			6,007,845
Horticulture		1,038,974			1,038,850

Real estate, gross		79,121,324			78,478,053
Accumulated depreciation		(3,426,433	)		(3,166,870	)

Real estate, net	$	75,694,891		$	75,311,183

Carrying Value of Intangible Assets and Accumulated Amortization

The following table summarizes the carrying value of intangible assets and the accumulated amortization for each intangible asset class as of March 31, 2014, and December 31, 2013:


	March 31, 2014					December 31, 2013
	Lease Intangibles		Accumulated Amortization			Lease Intangibles		Accumulated Amortization
In-place leases	$	397,728	$	(260,098	)	$	397,728	$	(241,697	)
Leasing commissions		148,532		(42,409	)		146,558		(34,727	)
Customer relationships		93,187		(52,370	)		93,187		(49,985	)

	$	639,447	$	(354,877	)	$	637,473	$	(326,409	)

Aggregate Amortization Expense

The aggregate amortization expense for the remainder of 2014 and each of the five succeeding fiscal years and thereafter is as follows:


Period		Estimated Amortization Expense
For the remaining nine months ending December 31:	2014	$	85,423
For the fiscal years ending December 31:	2015		100,920
	2016		34,948
	2017		23,869
	2018		10,110
	2019		7,150
	Thereafter		22,150

		$	284,570

Summarizes Lease Expirations by Year for Properties with Leases

The following table summarizes the lease expirations by year for our properties with leases in place as of March 31, 2014:


Year	Number of Expiring Leases		Expiring Leased Acreage		% of Total Acreage			Rental Revenue for the Three Months Ended March 31, 2014		% of Total Rental Revenue
2014⁽¹⁾		2		307		5.1	%	$	115,574		7.7	%
2015		1		72		1.2	%		35,625		2.4	%
2016		1		59		1.0	%		17,084		1.1	%
2017		1		124		2.1	%		68,548		4.6	%
2018		2		370		6.1	%		63,789		4.3	%
2019		0		0		0.0	%		—		0.0	%
Thereafter		8		5,068		84.5	%		1,195,016		79.9	%

Totals		15		6,000		100.0	%	$	1,495,636		100.0	%

⁽¹⁾

Includes a surface area lease on a portion of one property leased to an oil company that is renewed on a year-to-year basis .

Future Operating Lease Payments from Tenants under Non-Cancelable Leases

Future operating lease payments from tenants under all non-cancelable leases, excluding tenant reimbursement of expenses, for the remainder of 2014 and each of the five succeeding fiscal years and thereafter as of March 31, 2014, are as follows:


Period		Tenant Lease Payments
For the remaining nine months ending December 31:	2014	$	4,474,612
For the fiscal years ending December 31:	2015		5,425,610
	2016		5,362,569
	2017		5,265,339
	2018		4,935,315
	2019		4,928,252
	Thereafter		12,053,723

		$	42,445,420

Summary of Geographic Locations of Properties

The following table summarizes the geographic locations of our properties with leases in place as of March 31, 2014 and 2013:


	As of and For the Three Months Ended March 31, 2014												As of and For the Three Months Ended March 31, 2013
State	Number of Farms		Total Acres		% of Total Acres			Rental Revenue		% of Total Rental Revenue			Number of Farms		Total Acres		% of Total Acres			Rental Revenue		% of Total Rental Revenue
California		8		1,454		24.2	%	$	1,013,612		67.8	%		6		1,228		75.3	%	$	795,541		87.0	%
Oregon		2		2,113		35.2	%		238,025		15.9	%		0		0		0.0	%		—		0.0	%
Florida		6		402		6.7	%		116,982		7.8	%		6		402		24.7	%		119,042		13.0	%
Arizona		1		1,761		29.4	%		72,757		4.9	%		0		0		0.0	%		—		0.0	%
Michigan		4		270		4.5	%		54,260		3.6	%		0		0		0.0	%		—		0.0	%

		21		6,000		100.0	%	$	1,495,636		100.0	%		12		1,630		100.0	%	$	914,583		100.0	%

- Definition

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

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