Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
 6 Months Ended
Jun. 30, 2013
Equity [Abstract]  
Stockholders' Equity

NOTE 6. STOCKHOLDERS’ EQUITY

The following table summarizes the changes in our stockholders’ equity for the six months ended June 30, 2013:

 

     Common Stock                   Total  
     Number             Additional      Retained     Stockholders’  
     of Shares      Par Value      Paid-in Capital      Earnings     Equity  

Balance at December 31, 2012

      2,750,000       $ 2,750       $ —         $ 8,133,976      $ 8,136,726   

Net income

      —           —           —           77,872        77,872   

Proceeds from issuance of common stock, net

      3,780,264         3,780         51,326,262         —          51,330,042   

Distributions

      —           —           —           (2,873,316 )      (2,873,316 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Balance at June 30, 2013

      6,530,264       $ 6,530       $ 51,326,262       $ 5,338,532      $ 56,671,324   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Initial Public Offering

On January 28, 2013, we priced our IPO of 3,333,334 shares of our common stock at a public offering price of $15.00 per share, which closed on January 31, 2013. Gross proceeds totaled $50.0 million, and net proceeds, after deducting underwriting discounts and offering expenses borne by us, were approximately $45.1 million. In connection with the offering, the underwriters exercised their option to purchase an additional 446,930 shares at the IPO price to cover over-allotments, which resulted in additional gross proceeds of $6.7 million and net proceeds, after deducting underwriting discounts, of $6.2 million. We intend to use the net proceeds from the IPO and the underwriters’ exercise of the over-allotment primarily to buy farms and farm-related properties, as well as for other general corporate purposes. As of June 30, 2013, $4.6 million of these proceeds have been invested in new property acquisitions.

Distributions

Our Board of Directors declared and paid the following monthly distributions to common stockholders during the six months ended June 30, 2013:

 

Declaration Date

   

Record Date

   

Payment Date

    Distribution per
Common Share		  

February 5, 2013

    February 15, 2013    February 28, 2013    $ 0.04   

February 5, 2013

    March 15, 2013    March 28, 2013      0.04   

April 9, 2013

    April 22, 2013    April 30, 2013      0.12   

April 9, 2013

    May 20, 2013    May 31, 2013      0.12   

April 9, 2013

    June 19, 2013    June 28, 2013      0.12   
        

 

 

  
      Total:    $ 0.44   
        

 

 

  

A portion of the distributions paid during the six months ended June 30, 2013, relate to the $9.1 million of accumulated earnings and profits from prior years to be paid out by the end of the year for which we elect to be taxed as a REIT, as explained further below. We will provide information related to the federal income tax characterization of our 2013 distributions in an IRS Form 1099-DIV, which will be issued to our stockholders in January 2014.

No distributions were declared or paid during the six months ended June 30, 2012.

REIT Election and Accumulated Earnings and Profits

We intend to be taxed as a REIT for federal income tax purposes beginning with our taxable year ending either December 31, 2013, or December 31, 2014. To qualify as a REIT, we are required to distribute our non-REIT accumulated earnings and profits by December 31 of the year for which we first elect REIT status. As of December 31, 2012, we estimated that our non-REIT accumulated earnings and profits were approximately $9.1 million. This amount includes approximately $4.0 million of net earnings and profits associated with a deferred intercompany gain resulting from land transfers, described elsewhere in this Form 10-Q, that we will recognize immediately prior to the beginning of the initial taxable year for which we elect to be taxed as a REIT.