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, 2018

Property Disposition

On July 10, 2018, we completed the sale of a 1,895-acre farm in Morrow County, Oregon, to the existing tenant for $20.5 million. We expect to recognize a net gain on the sale (exclusive of closing costs) of approximately $6.7 million, which, for tax purposes, was used to acquire Owl Hammock (as defined below) as part of a like-kind exchange under Section 1031 of the Code.

Acquisition Activity

On July 12, 2018, we acquired five farms in Collier and Hendry Counties, Florida, totaling 5,630 acres (“Owl Hammock”) for approximately $37.4 million. At closing, we entered into a sale-leaseback agreement with the seller for a seven-year, triple net lease that includes two, five-year extension options. The lease provides for minimum annualized, straight-line rents of approximately $2.1 million.

Financing Activity

In connection with the acquisition of Owl Hammock, we entered into two new loan agreements with Farm Credit FL for total proceeds of approximately $22.4 million. Both loans are scheduled to mature on August 1, 2043, and will bear interest (before interest patronage) at a fixed rate of 5.38% per annum through July 31, 2025, thereafter converting to a variable rate unless another fixed rate is established. Gladstone Securities earned a financing fee of approximately $28,000 in connection with securing this financing.

On July 30, 2018, we issued a new 7-year, interest-only bond under our Farmer Mac Facility for approximately $10.4 million. The new bond will bear interest at a fixed rate of 4.45% throughout its term and replaced a $9.4 million bond that matured on July 30, 2018 (and bore interest at a fixed rate of 2.60% over a 3-year term), resulting in net cash proceeds to us of approximately $1.0 million. Gladstone Securities earned a financing fee of approximately $13,000 in connection with securing this financing.

Equity Activity

Redemption of OP Units

On July 16, 2018, 46,544 OP Units were tendered for redemption, and on July 26, 2018, we issued 46,544 shares of common stock in exchange for 46,544 OP Units.

Sales of Series B Preferred Stock

Subsequent to June 30, 2018, through the date of this filing, we have sold 89,419 shares of the Series B Preferred Stock for gross proceeds of approximately $2.2 million and net proceeds of approximately $2.0 million. Total sales commissions and dealer-manager fees earned by Gladstone Securities as a result of these sales were approximately $224,000.

ATM Program

Subsequent to June 30, 2018, through the date of this filing, we have sold 200 shares of our common stock at an average sales price of $12.75 per share under the ATM Program for gross and net proceeds of approximately $3,000.

Distributions

On July 10, 2018, our Board of Directors 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 20, 2018	July 31, 2018	$	0.1328125
	August 21, 2018	August 31, 2018	0.1328125
	September 19, 2018	September 28, 2018	0.1328125
Total Series A Term Preferred Stock Distributions:			$	0.3984375

Series B Preferred Stock:	July 24, 2018	August 3, 2018	$	0.125
	August 21, 2018	August 31, 2018	0.125
	September 25, 2018	October 5, 2018	0.125
Total Series B Preferred Stock Distributions:			$	0.375

Common Stock:	July 20, 2018	July 31, 2018	$	0.04435
	August 21, 2018	August 31, 2018	0.04435
	September 19, 2018	September 28, 2018	0.04435
Total Common Stock Distributions:			$	0.13305

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.