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

6 Months Ended

Jun. 30, 2020

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

Portfolio Activity

Leasing Activity

The following table summarizes the leasing activity that occurred on our existing properties subsequent to June 30, 2020, through the date of this filing (dollars in thousands):

PRIOR LEASES

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 / N)⁽²⁾

Total
Annualized
Straight-line
Rent⁽¹⁾

Wtd. Avg.

Term
(Years)

# of Leases
with
Participation
Rents

Lease
Structures
(# of NNN
/ NN / N)⁽²⁾

114

2 / 0 / 0

125

2.0

2 / 0 / 0


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


⁽²⁾	“NNN” refers to leases under triple-net lease arrangements, “NN” refers to leases under partial-net lease arrangements, and “N” refers to leases under single-net lease arrangements. For a description of each of these types of lease arrangements, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview—Leases—General.”

Equity Activity

Equity Issuances

The following table provides information on equity sales that have occurred subsequent to June 30, 2020 (dollars in thousands, except per-share amounts):



Type of Issuance	Number of Shares Sold	Weighted Average Offering Price Per Share		Gross Proceeds		Net Proceeds⁽¹⁾
Series C Preferred Stock	147,682	$	24.92	$	3,680	$	3,360
Common Stock – ATM Program	343,925	16.23		5,583		5,527


⁽¹⁾	Net of Series C Selling Commissions and Series C Dealer-Manager Fees or underwriting commissions and discounts (in each case, as applicable).

Equity Redemptions

Subsequent to June 30, 2020, 1,297 shares of the Series B Preferred Stock were tendered for redemption at a cash redemption price of $22.50 per share. As a result, we paid a total redemption cost of approximately $29,000 to redeem and retire these shares. In addition, subsequent to June 30, 2020, 144,151 OP Units held by non-controlling OP Unitholders were tendered for redemption, and we issued 144,151 shares of common stock in exchange for such OP Units.

Distributions

On July 14, 2020, our Board of Directors authorized and we 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:	July 24, 2020	July 31, 2020	$	0.1328125
	August 24, 2020	August 31, 2020	0.1328125
	September 23, 2020	September 30, 2020	0.1328125
Total Series A Term Preferred Stock Distributions:			$	0.3984375

Series B Preferred Stock:	July 29, 2020	August 5, 2020	$	0.125
	August 26, 2020	September 4, 2020	0.125
	September 30, 2020	October 7, 2020	0.125
Total Series B Preferred Stock Distributions:			$	0.375

Series C Preferred Stock:	July 29, 2020	August 5, 2020	$	0.125
	August 26, 2020	September 4, 2020	0.125
	September 30, 2020	October 7, 2020	0.125
Total Series C Preferred Stock Distributions:			$	0.375

Common Stock:	July 24, 2020	July 31, 2020	$	0.0448
	August 24, 2020	August 31, 2020	0.0448
	September 23, 2020	September 30, 2020	0.0448
Total Common Stock Distributions:			$	0.1344

The same amounts paid to common stockholders will be paid as distributions on each OP Unit held by non-controlling OP Unitholders as of the above record dates.

COVID-19

In July 2020, we granted extensions of up to 123 days to two tenants who owed semi-annual rental payments totaling approximately $343,000. These payments were originally scheduled to be paid on July 1, 2020, and the rent deferrals we granted to these tenants extend the new due dates to be on or before November 1, 2020, with all other terms of the existing lease agreements remaining unchanged. Additional time was granted to these tenants due to delays in payments owed to them from their respective processors, which were primarily caused by the strict government-mandated lockdowns in the state of Michigan in response to COVID-19. In addition, we are currently awaiting payment from one other tenant who owed an annual rental payment of approximately $53,000 in July 2020. The delay in this payment is primarily due to a delay in our farmer’s receipt of certain insurance payouts, which are expected to be settled during August 2020, at which time we expect to collect the rent owed to us. Based on the payment histories and current operational statuses of each of the respective tenants, we currently anticipate being able to collect these amounts in full within the aforementioned timeframes. We have not received any other requests from tenants seeking relief as a result of COVID-19, and all other tenants are current in their rental payments to us; however, no assurances can be made that we will not receive additional rent deferral or modification requests in the future.