Gladstone Land Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

Subsequent Events

3 Months Ended

Mar. 31, 2019

Acquisition Activity

On April 9, 2019, we acquired a 928-acre farm in Madera County, California, that grows pistachios for approximately $28.6 million. At closing, we entered into a 10.6-year, triple-net lease agreement with an unrelated third-party tenant that also includes two, 5-year extension options. The lease, which consists of a fixed cash rent component plus a variable rent component based on the gross crop revenues earned on the farm, provides for minimum annualized, straight-line rents of approximately $1.7 million. We will account for this acquisition as an asset acquisition in accordance with ASC 360.

On April 19, 2019, we entered into two separate purchase agreements with an unrelated third-party for the purchase of multiple parcels of irrigated farmland located in Fresno County, California. The aggregate purchase price is expected to be approximately $70.0 million and is expected to close in two phases, with the first phase expected to be completed during the three months ending September 30, 2019, and the second phase to be completed during the three months ending December 31, 2019. However, the acquisition of this property is subject to customary terms and conditions and termination rights for transactions of this type, including a due diligence inspection period for us, and there can be no assurance that this prospective acquisition will be consummated by a certain time, or at all.

Leasing Activity

The following table summarizes the leasing activity that occurred on our existing properties subsequent to March 31, 2019 (dollars in thousands):

PRIOR LEASE

NEW LEASES

Farm
Locations

Number

Leases

Total

Farm

Acres

Total

Annualized

Straight-line

Rent⁽¹⁾

# of Leases

with

Participation

Rents

Lease

Structures

(# of NNN

/ NN)

Total
Annualized
Straight-line
Rent⁽¹⁾

Wtd. Avg.

Term
(Years)

# of Leases
with
Participation
Rents

Lease
Structures
(# of NNN
/ NN)

0 / 1

3.0

0 / 1


⁽¹⁾	Annualized straight-line rent is based on the minimum cash rental payments guaranteed under the lease, as required under GAAP, and excludes contingent rental payments, such as participation rents.

Equity Activity

Sales of Series B Preferred Stock

Subsequent to March 31, 2019, through the date of this filing, we have sold 345,031 shares of the Series B Preferred Stock for gross proceeds of approximately $8.5 million and net proceeds of approximately $7.8 million. Total Selling Commissions and Dealer-Manager Fees earned by Gladstone Securities as a result of these sales were approximately $767,000 (of which approximately $725,000 was remitted by Gladstone Securities to unrelated third-parties involved in the offering, such as participating broker-dealers and wholesalers).

Distributions

On April 9, 2019, our Board of Directors declared the following monthly cash distributions to holders of our preferred and common stock:



Issuance	Record Date	Payment Date	Distribution per Share
Series A Term Preferred Stock:	April 22, 2019	April 30, 2019	$	0.1328125
	May 22, 2019	May 31, 2019	0.1328125
	June 19, 2019	June 28, 2019	0.1328125
Total Series A Term Preferred Stock Distributions:			$	0.3984375

Series B Preferred Stock:	April 24, 2019	May 3, 2019	$	0.125
	May 22, 2019	May 31, 2019	0.125
	June 26, 2019	July 5, 2019	0.125
Total Series B Preferred Stock Distributions:			$	0.375

Common Stock:	April 22, 2019	April 30, 2019	$	0.04450
	May 22, 2019	May 31, 2019	0.04450
	June 19, 2019	June 28, 2019	0.04450
Total Common Stock Distributions:			$	0.13350