NOTE 10. SUBSEQUENT EVENTS

We have evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through February 24, 2014, the day the financial statements were issued.

Investment Activity

On January 5, 2015, we acquired one farm comprised of 331 acres of farmland near Salinas, California (“Espinosa Road”), for an aggregate purchase price of approximately $17.0 million. The property is irrigated cropland that is primarily farmed for strawberries and miscellaneous vegetables, such as lettuce. We funded this acquisition through a new bond issuance under the Farmer Mac Facility (see “—Financing Activity” below) and by drawing on the New MetLife Line of Credit. At closing, we were assigned the existing triple-net lease, which has approximately 22 months remaining on the term and provides for annualized, straight-line cash rents of approximately $778,000. 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.

Financing Activity

In connection with the acquisition of Espinosa Road, on January 5, 2015, we issued a bond under the Farmer Mac Facility, for which we received proceeds of approximately $10.2 million. The bond, which is non-amortizing and has a term of five years, will bear interest at a fixed rate of 3.25% per annum throughout its term. The bond is collateralized by a mortgage loan on Espinosa Road and has an effective loan-to-value ratio of 60% of the underlying property.

Distributions

On January 13, 2015, our Board of Directors declared the following monthly cash distributions to common stockholders, representing a 16.7% increase over that of the prior quarter: