NOTE 8. SUBSEQUENT EVENTS

Distributions

On April 9, 2013, our Board of Directors declared the following monthly cash distributions to common stockholders:

A portion of the distributions paid for the quarter ended March 31, 2013, relates to the $9.1 million of accumulated earnings and profits from prior years to be paid out by the end of 2013, as mentioned above. We will provide information related to the federal income tax characterization of our 2013 distributions in an IRS Form 1099-DIV, which will be issued to our stockholders in January 2014.

Investment Activity

On April 5, 2013, we acquired one farm comprised of 119 acres of farmland near Covert, Michigan, for an aggregate purchase price of approximately $1.3 million. The property is currently farmed for blueberries. We funded this acquisition with the net proceeds received from our IPO in January 2013. At closing, we were assigned the existing triple-net lease, which has seven years remaining on the term. The tenant has one option to extend the lease for an additional seven-year term. The lease provides for prescribed rent escalations over the life of the lease, with annualized, GAAP straight-line rents of approximately $105,000.

We will account for this acquisition as a business combination in accordance with ASC 805; however, the initial accounting for this transaction is not yet complete, making certain disclosures unavailable at this time.