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

9 Months Ended

Sep. 30, 2023

Portfolio Activity—Water Acquisition

On October 9, 2023, we entered into a water transfer agreement with Byron-Bethany Irrigation District (“BBID”), a multi-county water district located in Contra Costa County, California. Pursuant to the agreement, which expires on February 28, 2031, we may elect to purchase up to 15,000 acre-feet of water per water year during years in which BBID has a surplus supply of water. Initial consideration consisted of $750,000, plus incremental costs based on the number of acre-feet we elected to purchase for the 2023 water year. As such, on October 12, 2023, we paid approximately $1.2 million (including the initial payment of $750,000) to purchase 7,000 acre-feet of water for the 2023 water year.

Our ability to purchase water under this contract in future years will be subject to BBID having surplus water available in such water years, and prices will be determined based on water transfer rates established by certain Federal and state governing agencies. To the extent surplus water supplies are available, water purchases in future years are at our sole option (up to a maximum of 15,000 acre-feet of water per water year), and we are not obligated to purchase water in any water year in which BBID has surplus water supplies. In addition, all water transfers are subject to approval by the U.S. Department of Interior, Bureau of Reclamation. We plan to store this water in a groundwater recharge facility recently constructed on one of our farms, and we currently intend to hold this water for the long-term for future use on our farms.

Financing Activity

Debt Activity—Loan Maturities

Subsequent to September 30, 2023, we repaid approximately $2.7 million of maturing loans. On a weighted-average basis, these borrowings bore interest at a stated rate of 5.05% and an effective rate (after interest patronage, where applicable) of 4.06%.

Equity Activity

The following table provides information on equity sales that have occurred subsequent to September 30, 2023 (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 E Preferred Stock	2,200	$	25.00	$	55	$	50

(1)Net of Selling Commissions and Dealer-Manager Fees.

Distributions

On October 10, 2023, 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 B Preferred Stock:	October 20, 2023	October 31, 2023	$	0.125
	November 20, 2023	November 30, 2023	0.125
	December 18, 2023	December 29, 2023	0.125
Total Series B Preferred Stock Distributions:			$	0.375

Series C Preferred Stock:	October 20, 2023	October 31, 2023	$	0.125
	November 20, 2023	November 30, 2023	0.125
	December 18, 2023	December 29, 2023	0.125
Total Series C Preferred Stock Distributions:			$	0.375

Series D Term Preferred Stock:	October 20, 2023	October 31, 2023	$	0.104167
	November 20, 2023	November 30, 2023	0.104167
	December 18, 2023	December 29, 2023	0.104167
Total Series D Term Preferred Stock Distributions:			$	0.312501

Series E Preferred Stock:	October 25, 2023	November 3, 2023	$	0.104167
	November 28, 2023	December 5, 2023	0.104167
	December 27, 2023	January 5, 2024	0.104167
Total Series E Preferred Stock Distributions:			$	0.312501

Common Stock(1):	October 20, 2023	October 31, 2023	$	0.0464
	November 20, 2023	November 30, 2023	0.0464
	December 18, 2023	December 29, 2023	0.0464
Total Common Stock Distributions			$	0.1392

(1)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.