Quarterly report pursuant to Section 13 or 15(d)

Related-Party Transactions (Tables)

v3.10.0.1
Related-Party Transactions (Tables)
6 Months Ended
Jun. 30, 2018
Related Party Transactions [Abstract]  
Summary of Management Fees, Incentive Fees and Associated Credits and Administration Fees
The following table summarizes related-party fees paid or accrued for and reflected in our accompanying condensed consolidated financial statements (dollars in thousands):
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Management fee(1)(2)
$
754

(3) 
$
530

 
$
1,411

(3) 
$
924

Incentive fee(1)(2)

 
76

 

 
427

Credits from voluntary, irrevocable waiver by Adviser’s board of directors(2)
(174
)
 

 
(174
)
 

Total fees to our Adviser
$
580

 
$
606

 
$
1,237

 
$
1,351

Administration fee(1)(2)
$
275

(4) 
$
219

 
$
549

(4) 
$
445

Dealer-Manager Fees to Gladstone Securities(1)(5)
$
50

 
$

 
$
50

 
$

Financing Fees to Gladstone Securities(1)(6)
$
2

 
$
2

 
$
2

 
$
2

(1) 
Pursuant to the agreements with the respective related-party entities, as discussed above.
(2) 
Reflected as a line item on our accompanying Condensed Consolidated Statements of Operations.
(3) 
Includes the allocation of approximately $94,000 and $161,000 of the total accumulated costs incurred by our Adviser as a result of the crops harvested and sold on the farm operated by Land Advisers during the three and six months ended June 30, 2018, respectively, as further described above under “TRS Expense Sharing Agreement.” Excludes an additional $28,000 of accumulated costs incurred by our Adviser pursuant to the TRS Expense Sharing Agreement. Such costs were allocated to crop inventory that was written down to zero as of June 30, 2018, and are included within Loss on write-down of inventory on the accompanying Condensed Consolidated Statements of Operations (as discussed in more detail under “TRS Fee Arrangements—TRS Expense Sharing Agreement” above).
(4) 
Includes the portion of administration fee that was allocated to Land Advisers (approximately $17,000 and $30,000 for each of the three and six months ended June 30, 2018, respectively), as further described above under “TRS Administration Fee Allocation.”
(5) 
Included within Additional paid-in capital on the accompanying Condensed Consolidated Balance Sheet.
(6) 
Included in Mortgage notes and bonds payable, net on the Condensed Consolidated Balance Sheets and amortized into Interest expense on the Condensed Consolidated Statements of Operations.
Details of Amounts Due to Related Parties on Our Accompanying Condensed Consolidated Balance Sheets
Amounts due to related parties on our accompanying Condensed Consolidated Balance Sheets as of June 30, 2018, and December 31, 2017, were as follows (dollars in thousands):
 
 
June 30, 2018
 
December 31, 2017
Management fee due to Adviser
 
$
703

(1) 
$
666

Credits to fees due to Adviser(2)
 
(174
)
 

Other due to Adviser(3)
 
3

 
16

Total due to Adviser
 
532

 
682

Administration fee due to Administrator
 
275

(4) 
258

Total due to Administrator
 
275

 
258

Total due to related parties(5)
 
$
807

 
$
940

(1) 
Includes approximately $43,000 owed by Land Advisers to our Advisor, pursuant to the TRS Expense Sharing Agreement, as discussed above.
(2) 
The credit received from our Adviser for the three and six months ended June 30, 2018, was granted as a voluntary, irrevocable waiver to be applied against the fees incurred by our Adviser on behalf of Land Advisers pursuant to the TRS Expense Sharing Agreement, as discussed above.
(3) 
Other fees due to or from related parties primarily relate to miscellaneous general and administrative expenses paid by our Adviser or Administrator on our behalf or by us on our Adviser’s or Administrator’s behalf.
(4) 
Includes approximately $17,000 owed by Land Advisers to our Administrator, in accordance with the TRS Administration Fee Allocation, as discussed above.
(5) 
Reflected as a line item on our accompanying Condensed Consolidated Balance Sheets.