Gladstone Land Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Related-Party Transactions (Tables)

Related-Party Transactions (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Management Fees, Incentive Fees and Associated Credits and Administration Fees

The following table summarizes related party fees paid or accrued for and reflected in our accompanying Consolidated Statements of Operations (dollars in thousands):



	For the Years Ended December 31,
	2017				2016		2015
Management fee⁽¹⁾⁽²⁾	$	2,041		⁽³⁾	$	1,542	$	1,343
Incentive fee⁽¹⁾⁽²⁾	688				350		—
Credits from voluntary, irrevocable waiver by Adviser’s board of directors⁽²⁾	(54		)	⁽⁴⁾	—		(321		)	⁽⁵⁾
Net fees to our Adviser	$	2,675			$	1,892	$	1,022
Administration fee⁽¹⁾⁽²⁾	$	914		⁽⁶⁾	$	771	$	680
Financing Fees to Gladstone Securities⁽⁷⁾	$	36			$	—	$	—


⁽¹⁾	Pursuant to the agreements with our Adviser and Administrator as discussed above.


⁽²⁾	Reflected as a line item on our accompanying Consolidated Statements of Operations.


⁽³⁾	Excludes the reimbursement by the TRS of certain costs incurred by our Adviser (approximately $71,000, pursuant to the TRS Expense Sharing Agreement as discussed above), which amount was deferred and included in Crop inventory on the accompanying Consolidated Balance Sheet.


⁽⁴⁾	The credit received from our Adviser for the year ended December 31, 2017, was granted as a voluntary, irrevocable waiver to be applied against the incentive fee payable to our Advisor.


⁽⁵⁾	The credit received from our Adviser for the year ended December 31, 2015, was attributable to a finder’s fee earned by our Adviser in connection with a farm we acquired during the year, which fee was granted to us as a one-time, voluntary and irrevocable waiver to be applied against the fees payable to our Adviser.


⁽⁶⁾	Includes the portion of administration fee that was allocated to the TRS (approximately $22,000), as further described above under “TRS Administration Fee Allocation.”

⁽⁷⁾Included in Mortgage notes and bonds payable, net on the Consolidated Balance Sheet and amortized into Interest expense on the Consolidated Statement of Operations.

Details of Amounts Due to Related Parties on Our Accompanying Condensed Consolidated Balance Sheets

Amounts due to related parties on our accompanying Consolidated Balance Sheets as of December 31, 2017 and 2016 were as follows (dollars in thousands):



	December 31, 2017		December 31, 2016
Management fee due to Adviser⁽¹⁾	$	666	$	384
Incentive fee due to Adviser	—		169
Other due to Adviser⁽²⁾	16		2
Total due to Adviser	682		555
Administration fee due to Administrator⁽³⁾	258		202
Other due from Administrator⁽²⁾	—		(6		)
Total due to Administrator	258		196
Total due to related parties⁽⁴⁾	$	940	$	751


⁽¹⁾	Includes approximately $71,000 owed by the TRS to our Advisor, pursuant to the TRS Expense Sharing Agreement, as discussed above.


⁽²⁾	Other fees due to or from related parties primarily relate to miscellaneous general and administrative expenses paid by our Adviser or Administrator on our behalf or by us on our Advisor's or Administrator's behalf.


⁽³⁾	Includes approximately $22,000 owed by the TRS to our Administrator, in accordance with the TRS Administration Fee Allocation, as discussed above.


⁽⁴⁾	Reflected as a line item on our accompanying Consolidated Balance Sheet.