Quarterly report pursuant to Section 13 or 15(d)

Related-Party Transactions

Related-Party Transactions
3 Months Ended
Mar. 31, 2016
Related Party Transactions [Abstract]  
Related-Party Transactions


We are externally managed pursuant to contractual arrangements with our Adviser and our Administrator, which collectively employ all of our personnel and pay their salaries, benefits and general expenses directly. Both our Adviser and Administrator are affiliates of ours, as their parent company is owned and controlled by Mr. David Gladstone, our chairman and chief executive officer. In addition, two of our executive officers, Mr. Gladstone and Mr. Terry Brubaker (our vice chairman and chief operating officer), serve as directors and executive officers of each of our Adviser and Administrator. Mr. Michael LiCalsi, our general counsel and secretary, serves as our Administrator’s president.

The current advisory agreement with our Advisor (the “Advisory Agreement”) and the current administration agreement with our Administrator (the “Administration Agreement”) became effective February 1, 2013. A summary of each of these agreements is provided in Note 4 to our consolidated financial statements included in our Form 10-K. There were no material changes to either agreement during the three months ended March 31, 2016.

The following table summarizes the management fees, incentive fees and associated credits and the administration fees reflected in our accompanying Condensed Consolidated Statements of Operations:


     For the Three Months Ended March 31,  
     2016      2015  

Management fees (1)(2)

   $ 387,154       $ 295,748   

Credits from voluntary, irrevocable waiver by Adviser’s board of directors (2)(3)

     —           (320,905







Net fee to (from) our Adviser

   $ 387,154       $ (25,157







Administration fees (1)(2)

   $ 211,860       $ 130,936   








(1) Pursuant to the Advisory and Administration Agreements, respectively, which became effective on February 1, 2013.
(2) Reflected as a line item on our accompanying Consolidated Statements of Operations.
(3) The credit received from our Adviser for the three months ended March 31, 2015, was attributable to a finder’s fee earned by our Adviser in connection with a farm we acquired during the three months ended March 31, 2015, which fee was granted to us as a one-time, voluntary and irrevocable waiver to be applied against the fees we pay to our Adviser.

Related-Party Fees Due

Amounts due to related parties on our accompanying Condensed Consolidated Balance Sheets as of March 31, 2016, and December 31, 2015, were as follows:


     March 31, 2016      December 31, 2015  

Management fee due to Adviser

   $ 387,154       $ 362,373   

Other due to Adviser(1)

     29,407         13,140   







Total due to Adviser

     416,561         375,513   







Administration fee due to Administrator

     211,860         190,080   







Total due to Administrator

     211,860         190,080   







Total due to related parties (2)

   $ 628,421       $ 565,593   








(1)  Other fees due to related parties primarily relate to miscellaneous general and administrative expenses paid by our Adviser or Administrator on our behalf.
(2)  Reflected as a line item on our accompanying Condensed Consolidated Balance Sheets.