•	Portfolio Activity:

◦	Property Acquisition: Acquired two new farms, consisting of 1,325 total acres, for $7.5 million. These farms were acquired at an initial, minimum net capitalization rate of 5.5%. However, the lease on these farms contains certain provisions (e.g., annual rent escalations) that are expected to drive cash rents higher in future years.

◦	Leasing Activity:

▪	New Leases: Executed nine new lease agreements on certain of our farms in three different states (AZ, CA, & NE) that are expected to result in an aggregate increase in annual net operating income of approximately $401,000, or 11.2%, over that of the prior leases.

▪	Lease Termination: Terminated two leases encompassing four farms in Arizona, for which we received a termination payment of approximately $3.0 million, resulting in additional lease revenue recorded during the quarter (after netting out certain balances related to the terminated lease) of approximately $2.8 million. The four farms were immediately re-leased to a new, unrelated third-party tenant.

•	Financing Activity:

◦	New Long-term Borrowing: Secured $8.1 million of new, long-term borrowings at an interest rate of 2.66%, which rate is fixed for the next 4.0 years.

◦	Facility Amendment: Modified our credit facility with Metropolitan Life Insurance Company (“MetLife”) to provide us with an additional $75.0 million of borrowing capacity.

◦	Interest Patronage: Recorded approximately $1.3 million of interest patronage, or refunded interest, related to our borrowings from various Farm Credit associations (collectively, “Farm Credit”), which resulted in a 20.4% reduction (approximately 98 basis points) to the stated interest rates on such borrowings.

•	Equity Activity:

◦	Series B Preferred Stock: Issued and sold 1,229,531 shares of our 6.00% Series B Cumulative Redeemable Preferred Stock (the “Series B Preferred Stock”) for net proceeds of approximately $27.7 million, completing the 6,000,000-share offering of our Series B Preferred Stock.

◦	Common Stock: Issued and sold 409,800 shares of our common stock for net proceeds of approximately $5.4 million under our “at-the-market” program.

•	Increased and Paid Distributions: Increased the monthly distribution run rate on our common stock by 0.11% and paid total cash distributions of $0.13395 per share of common stock for January, February, and March 2020.

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•	Portfolio Activity—Leasing Activity: Executed two new lease agreements on certain of our farms in California that are expected to result in an aggregate increase in annual net operating income of approximately $247,000, or 20.4%, over that of the prior leases.

•	Equity Activity—Series C Preferred Stock: Commenced sales of our 6.00% Series C Cumulative Redeemable Preferred Stock (the “Series C Preferred Stock”). Issued and sold 15,600 shares of the Series C Preferred Stock for net proceeds of approximately $355,000.

•	Increased Distributions:  Increased our distribution run rate by 0.11%, declaring monthly cash distributions of $0.0447 per share of common stock (including OP Units held by non-controlling OP Unitholders) for each of April, May, and June March 2020.  This marks our 18th distribution increase over the past 21 quarters, during which time we have increased the distribution run rate by 49.0%.

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(1)	Represents our pro-rata share of depreciation expense recorded in unconsolidated entities during the period.

(2)	Consists primarily of (i) net property and casualty recoveries recorded and the cost of related repairs expensed as a result of the damage caused to certain irrigation improvements by natural disasters on certain of our properties and (ii) our pro-rata share of income recorded from investments in unconsolidated entities.

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(3)

This adjustment removes the effects of straight-lining rental income, as well as the amortization related to above-market lease values and lease incentives and accretion related to below-market lease values, deferred revenue, and tenant improvements, resulting in rental income reflected on a modified accrual cash basis.  The effect to AFFO is that cash rents received pertaining to a lease year are normalized over that respective lease year on a straight-line basis, resulting in cash rent being recognized ratably over the period in which the cash rent is earned.

(4)	Consists of the initial acquisition price (including the costs allocated to both tangible and intangible assets acquired and liabilities assumed), plus subsequent improvements and other capitalized costs associated with the properties, and adjusted for accumulated depreciation and amortization.

(5)	Consists of the principal balances outstanding of all indebtedness, including our lines of credit, notes and bonds payable, and our Series A Term Preferred Stock.

(6)	Based on gross acreage.

•	Eastern U.S. – Bill Frisbie at (703) 287-5839 or Bill.F@GladstoneLand.com;

•	Midwest U.S. – Bill Hughes at (618) 606-2887 or Bill.H@GladstoneLand.com; or

•	Western U.S. – Bill Reiman at (805) 263-4778 or Bill.R@GladstoneLand.com, or Tony Marci at (831) 225-0883 or Tony.M@GladstoneLand.com.

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(1)	Consists of the initial acquisition price (including the costs allocated to both tangible and intangible assets acquired and liabilities assumed), plus subsequent improvements and other capitalized costs associated with the properties, and adjusted for accumulated depreciation and amortization.

(2)	As determined by the Company's valuation policy and approved by its board of directors.

(3)	Includes the principal balances outstanding of all long-term borrowings (consisting of notes and bonds payable) and the Series A Term Preferred Stock.

(4)	Long-term notes and bonds payable were valued using a discounted cash flow model. The Series A Term Preferred Stock was valued based on its closing stock price as of March 31, 2020.

(5)	Valued at the security's liquidation value.

(6)	Includes 21,346,458 shares of common stock and 288,303 OP Units held by non-controlling OP Unitholders.