|9 Months Ended|
Sep. 30, 2015
|Subsequent Events [Abstract]|
NOTE 9. SUBSEQUENT EVENTS
We have evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through November 3, 2015, the day the financial statements were issued.
On October 5, 2015, we executed a lease amendment with the tenant on East Shelton to provide for additional annual rent in connection with the completion of the irrigation upgrades we performed on the property. The amendment also adjusted the rent due for the next two years as stipulated in the lease as the first minimum rent reset period. This amendment will result in additional annualized, straight-line rents of approximately $35,000.
Investing and Financing Activity
On November 2, 2015, we acquired one farm comprised of 692 acres of farmland near Immokalee, Florida (“Corbitt Road”), that also includes a packing and storage facility for an aggregate purchase price of approximately $3.8 million. This property is irrigated cropland that is primarily farmed for miscellaneous vegetables, such as bell peppers and green beans. At closing, we executed a new, six-year lease with a new tenant that includes one six-year extension option and provides for annualized, straight-line cash rents of approximately $231,000. We will account for this acquisition as an asset acquisition in accordance with ASC 360; however, the initial accounting for this transaction is not yet complete, making certain disclosures unavailable at this time.
In connection with the acquisition of Corbitt Road, on November 2, 2015, we closed on two loans from Farm Credit in the aggregate amount of $3.8 million, consisting of a mortgage note for approximately $2.3 million and a bridge loan of $1.5 million. The mortgage note is scheduled to mature on October 1, 2040, and will bear interest (before interest patronage) at a fixed rate of 3.86% per annum through November 30, 2021; thereafter, the interest rate will be equal to the one-month LIBOR, plus 2.875%. The bridge loan is scheduled to mature on October 1, 2016, and will bear interest (before interest patronage) at a variable rate equal to the one-month LIBOR, plus 3.000%.
Purchase and Sale Agreements
Subsequent to September 30, 2015, we entered into two separate agreements to purchase an aggregate 3,160 acres of cropland in Arizona and Colorado for an aggregate purchase price of approximately $12.8 million. 1,240 acres, accounting for approximately $5.7 million of the aggregate purchase price, are expected to close during the three months ending December 31, 2015, and 1,920 acres, accounting for approximately $7.1 million of the aggregate purchase price, are expected to close during the three months ending March 31, 2016, subject to customary conditions and termination rights for these types of transactions, including a due diligence inspection period. However, there can be no assurance that these prospective acquisitions will be consummated by that time, on the terms currently anticipated, or at all.
Subsequent to September 30, 2015, through the date of this filing, we have sold 2,100 shares of our common stock at an average sales price of $9.57 per share under the ATM Program for gross and net proceeds of approximately $20,000.
On October 13, 2015, our Board of Directors declared the following monthly cash distributions to common stockholders:
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
No definition available.