Subsequent Events |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Subsequent Events [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SUBSEQUENT EVENTS |
SUBSEQUENT EVENTS
Investing and Leasing Activities
New Acquisitions
On July 17, 2017, we acquired four contiguous farms totaling 847 gross acres in Fresno County, California (“Phelps Avenue”), for approximately $13.6 million. In total, the farms contain 645 planted acres of pistachio and almond trees planted between 2002 and 2009. At closing, we entered into a sale-leaseback agreement with the seller for a 10-year, triple-net lease that includes one, five-year extension option. The lease consists of a fixed cash rent component plus a variable rent component based on the gross crop revenues earned on the farms and provides for minimum annualized, straight-line rents of approximately $680,000. We will account for this acquisition as an asset acquisition in accordance with ASC 360.
Lease Renewals
Subsequent to June 30, 2017, we renewed the lease on one of our California farms that was originally subject to a lease scheduled to expire in the second half of 2017. The lease was renewed with a new tenant for an additional period of three years and provides for annualized rental income of approximately $0.8 million, representing an increase of approximately $25,000 (approximately 3.4%) from that of the prior lease. This renewal was completed without incurring any downtime on the farm, and no leasing commissions or tenant improvements were incurred in connection with this renewal.
Financing Activities
On July 13, 2017, we, through certain subsidiaries of our Operating Partnership, refinanced four existing mortgage loans with Farm Credit CFL for aggregate additional borrowings of approximately $5.5 million. Each of the new loans are scheduled to mature on August 1, 2022, and will bear interest (before interest patronage) at a fixed rate of 4.47% throughout their respective terms.
In connection with the acquisition of Phelps Avenue, on July 17, 2017, we closed on a loan from Farm Credit West for approximately $8.2 million. The mortgage note is scheduled to mature on May 1, 2037, and will bear interest (before interest patronage) at a fixed rate of 4.31% per annum through July 31, 2024, thereafter converting to a variable rate determined by Farm Credit West, unless another fixed rate is established.
Equity Activities
ATM Program
Subsequent to June 30, 2017, through the date of this filing, we have sold 161,133 shares of our common stock at an average sales price of $11.90 per share under the ATM Program for gross and net proceeds of approximately $1.9 million.
Amendment to Articles of Incorporation
On July 12, 2017, we filed an Articles of Amendment with the State Department of Assessments and Taxation for Maryland to increase the number of shares of stock that we have authority to issue from 20,000,000 shares to 100,000,000 shares, with the additional 80,000,000 shares of stock being initially classified as common stock, $0.001 par value per share.
Distributions
On July 11, 2017, our Board of Directors declared the following monthly cash distributions to common stockholders and holders of our Term Preferred Stock:
The same amounts paid to common stockholders will be paid as distributions on each OP Unit held by non-controlling limited partners of the Operating Partnership as of the above record dates.
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