NOTE 9. SUBSEQUENT EVENTS

Leasing Activity

On April 5, 2016, we reimbursed the tenant occupying our Wauchula Road property for $569,607 of costs incurred to construct certain irrigation improvements on the farm. As stipulated in the lease, beginning with the three months ending June 30, 2016, we will earn an additional $92,634 of annualized, straight-line rental income on this farm throughout the remaining lease term.

On April 5, 2016, we reimbursed the tenant occupying our Parrish Road farm for $500,000, which represented our portion of the costs incurred to construct certain irrigation improvements on the farm. As stipulated in the lease, beginning with the three months ending June 30, 2016, we will earn an additional $139,073 of annualized, straight-line rental income on this farm throughout the remaining lease term.

Investing and Financing Activity

On April 5, 2016, we acquired one farm comprised of 453 acres of farmland in Fresno County, California (“Calaveras Avenue”), for approximately $15.5 million. The property includes 435 planted acres of pistachio trees ranging from 5 to 19 years old. At closing, we executed a new 10-year, triple-net lease with a new tenant that includes one five-year extension option. The lease consists of a fixed cash rent component plus a variable rent component based on the gross crop revenues earned on the property and provides for minimum annualized, straight-line cash rents of $773,500. We will account for this acquisition as an asset acquisition in accordance with ASC 360; however, the initial accounting for this transaction is not yet complete, making certain disclosures unavailable at this time.

In connection with the acquisition of Calaveras Avenue, on April 4, 2016, we closed on a loan from Farm Credit West, FLCA (“Farm Credit West”) for approximately $9.3 million. The mortgage note is scheduled to mature on November 1, 2040, and will bear interest (before interest patronage) at a fixed rate of 3.54% per annum through April 30, 2021, thereafter converting to a variable rate determined by Farm Credit West, unless another fixed rate is established.

Distributions

On April 12, 2016, our Board of Directors declared the following monthly cash distributions to common stockholders:

The same amounts 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.