Borrowings (Tables)
|
9 Months Ended |
Sep. 30, 2019 |
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| Debt Instrument [Line Items] |
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| Summary of Borrowings |
Our borrowings as of September 30, 2019, and December 31, 2018, are summarized below (dollars in thousands):
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Carrying Value as of |
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As of September 30, 2019 |
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September 30, 2019 |
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December 31, 2018 |
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Stated Interest
Rates(1)
(Range; Wtd Avg)
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Maturity Dates
(Range; Wtd Avg)
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Notes and bonds payable: |
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Fixed-rate notes payable |
$ |
360,459 |
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|
$ |
247,249 |
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|
3.16%–5.70%; 4.08% |
|
6/1/2020–8/1/2044; June 2032 |
Fixed-rate bonds payable |
90,380 |
|
|
90,877 |
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|
2.80%–4.57%; 3.55% |
|
12/11/2019–9/13/2028; November 2022 |
Total notes and bonds payable |
450,839 |
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|
338,126 |
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|
|
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Debt issuance costs – notes and bonds payable |
(2,835 |
) |
|
(2,338 |
) |
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N/A |
|
N/A |
Notes and bonds payable, net |
$ |
448,004 |
|
|
$ |
335,788 |
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Variable-rate revolving lines of credit |
$ |
4,100 |
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|
$ |
100 |
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4.29%–4.54%; 4.29% |
|
4/5/2024 |
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Total borrowings, net |
$ |
452,104 |
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$ |
335,888 |
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(1) |
Where applicable, stated interest rates are before interest patronage (as described below). |
Subsequent to September 30, 2019, through the date of this filing, we have secured the following new financings (dollars in thousands):
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Issuer |
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Date of
Issuance
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|
Amount |
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Maturity
Date
|
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Principal
Amortization
|
|
Interest Rate Terms |
Rabo AgriFinance, LLC |
|
10/16/2019 |
|
$ |
5,739 |
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|
10/1/2029 |
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25.0 years |
|
1-Month LIBOR + 1.75%(1)
|
Rabo AgriFinance, LLC |
|
10/16/2019 |
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3,045 |
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|
10/1/2029 |
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25.0 years |
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1-Month LIBOR + 1.75%(1)
|
Diversified Financial Services, LLC |
|
10/17/2019 |
|
976 |
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|
10/17/2026 |
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7.0 years |
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4.75%, fixed throughout its term |
Metropolitan Life Insurance Company(2)
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|
11/1/2019 |
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25,500 |
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1/5/2029 |
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28.6 years |
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3.81%, fixed through January 4, 2027 (variable thereafter) |
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(1) |
In connection with each of these loans, we entered into interest rate swap agreements in which we will pay a fixed interest rate to our counterparty of 3.67% through October 1, 2029.
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(2) |
Loan was issued under the MetLife Credit Facility, as defined in Note 4, “Borrowings,” in these notes to our condensed consolidated financial statements.
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| Schedule of Aggregate Maturities |
Scheduled principal payments of our aggregate notes and bonds payable as of September 30, 2019, for the succeeding years are as follows (dollars in thousands):
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Period |
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Scheduled
Principal Payments
|
For the remaining three months ending December 31: |
2019 |
|
$ |
4,825 |
|
For the fiscal years ending December 31: |
2020 |
|
30,682 |
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2021 |
|
19,075 |
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2022 |
|
41,867 |
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2023 |
|
35,658 |
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2024 |
|
26,765 |
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Thereafter |
|
291,967 |
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|
$ |
450,839 |
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| MetLife Facility |
|
| Debt Instrument [Line Items] |
|
| Summary of Borrowings |
The following table summarizes the pertinent terms of the MetLife Facility as of September 30, 2019 (dollars in thousands, except for footnotes):
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|
Issuance |
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Aggregate
Commitment
|
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Maturity
Dates
|
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Principal
Outstanding
|
|
Interest Rate Terms |
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Undrawn
Commitment
|
|
MetLife Term Notes |
|
$ |
200,000 |
|
(1) |
1/5/2029 |
|
$ |
138,408 |
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|
3.35%, fixed through 1/4/2027 |
(2) |
$ |
47,030 |
|
(3) |
MetLife Lines of Credit |
|
75,000 |
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|
4/5/2024 |
|
4,100 |
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3-month LIBOR + 2.00%–2.25% |
(4) |
70,900 |
|
(3) |
Total principal outstanding |
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$ |
142,508 |
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(1) |
If the aggregate commitment under this facility is not fully utilized by December 31, 2019, MetLife has the option to be relieved of its obligation to disburse the additional funds under the MetLife Term Notes.
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(2) |
Represents the blended interest rate as of September 30, 2019. Interest rates for subsequent disbursements will be based on then-prevailing market rates. The interest rate on all then-outstanding disbursements will be subject to adjustment on January 5, 2027. Through December 31, 2019, the MetLife Term Notes are also subject to an unused fee ranging from 0.10% to 0.20% on undrawn amounts (based on the balance drawn under the MetLife Term Notes).
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(3) |
Based on the properties that were pledged as collateral under the MetLife Facility, as of September 30, 2019, the maximum additional amount we could draw under the facility was approximately $18.9 million.
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(4) |
The interest rate on the MetLife Lines of Credit is subject to a minimum annualized rate of 2.50%, plus an unused fee ranging from 0.10% to 0.20% on undrawn amounts (based on the balance drawn under each line of credit).
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| Farm Credit Notes Payable |
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| Debt Instrument [Line Items] |
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| Schedule of Borrowings by Type |
During the nine months ended September 30, 2019, we entered into the following loan agreement with Farm Credit (dollars in thousands):
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Issuer |
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Date of
Issuance
|
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Amount |
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Maturity
Date
|
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Principal
Amortization
|
|
Interest Rate Terms(1)
|
Premier Farm Credit, FLCA |
|
2/7/2019 |
|
$ |
1,440 |
|
|
11/1/2043 |
|
25.0 years |
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5.45%, fixed through October 31, 2023 (variable thereafter) |
GreenStone Farm Credit Services |
|
7/11/2019 |
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1,609 |
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8/1/2044 |
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25.0 years |
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5.00%, fixed through June 30, 2029 (variable thereafter) |
GreenStone Farm Credit Services |
|
7/11/2019 |
|
3,060 |
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8/1/2044 |
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25.0 years |
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5.00%, fixed through June 30, 2029 (variable thereafter) |
Farm Credit West, FLCA |
|
7/11/2019 |
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5,400 |
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5/1/2044 |
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24.5 years |
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4.24%, fixed through July 31, 2026 (variable thereafter) |
Farm Credit of Central Florida, ACA |
|
7/22/2019 |
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31,850 |
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7/1/2027 |
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25.2 years |
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5.05%, fixed throughout term |
Farm Credit of Central Florida, ACA |
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7/22/2019 |
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5,850 |
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7/1/2027 |
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None (interest only) |
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5.05%, fixed throughout term |
Farm Credit West, FLCA |
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8/28/2019 |
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12,792 |
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5/1/2044 |
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24.5 years |
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3.84%, fixed through August 31, 2026 (variable thereafter)(2)
|
American AgCredit, ACA |
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8/29/2019 |
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19,254 |
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10/1/2039 |
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20.0 years |
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3.84%, fixed through August 31, 2029 (variable thereafter) |
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(1) |
Stated rate is before interest patronage, as described below. |
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(2) |
Loan originally issued as a variable-rate loan and was converted to a fixed-rate loan effective September 1, 2019. |
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| Prudential Note Payable |
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| Debt Instrument [Line Items] |
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| Schedule of Borrowings by Type |
On June 17, 2019, we entered into a loan agreement with PGMI Real Estate Finance, LLC (“Prudential”), the terms of which are summarized in the following table as of September 30, 2019 (dollars in thousands):
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Date of Issuance |
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Amount |
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Maturity Date |
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Principal Amortization |
|
Interest Rate Terms |
6/17/2019 |
|
$ |
17,130 |
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7/1/2029 |
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25.0 years |
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4.00%, fixed throughout term |
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| Rabo Note Payable |
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| Debt Instrument [Line Items] |
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| Schedule of Borrowings by Type |
On July 10, 2019, we entered into a loan agreement with Rabo AgriFinance, LLC (“Rabo”), the terms of which are summarized in the following table as of September 30, 2019 (dollars in thousands):
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Date of Issuance |
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Amount |
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Maturity Date |
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Principal Amortization |
|
Interest Rate Terms |
7/10/2019 |
|
$ |
5,514 |
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|
6/1/2029 |
|
25.0 years |
|
1-Month LIBOR + 1.75%(1)
|
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|
(1) |
In connection with securing this loan and to hedge our exposure to the above variable interest rate, we entered into an interest rate swap agreement in which we agreed to pay a fixed interest rate to our counterparty of 4.04% through June 1, 2029. See “—Interest Rate Swap Agreement” below for additional information on this swap agreement.
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| Interest Rate Swap |
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| Debt Instrument [Line Items] |
|
| Schedule of Borrowings by Type |
The following table summarizes our interest rate swap as of September 30, 2019 (dollars in thousands):
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Aggregate Notional Amount |
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Aggregate Fair Value Asset |
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Aggregate Fair Value Liability |
$ |
5,514 |
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|
$ |
— |
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$ |
347 |
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The following table presents the amount of loss recognized in comprehensive income within our condensed consolidated financial statements for the three and nine months ended September 30, 2019 (dollars in thousands):
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Three Months Ended September 30, 2019 |
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Nine Months Ended September 30, 2019 |
Derivative in cash flow hedging relationship: |
|
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|
Interest rate swap |
$ |
347 |
|
|
$ |
347 |
|
Total |
$ |
347 |
|
|
$ |
347 |
|
The following table summarizes certain information regarding our derivative instrument as of September 30, 2019 (dollars in thousands):
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Derivative Type |
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Balance Sheet Location |
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Derivative Liability Fair Value |
Derivatives Designated as Hedging Instruments: |
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|
Interest rate swap |
|
Other liabilities, net |
|
$ |
347 |
|
Total |
|
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|
$ |
347 |
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