Borrowings (Tables)
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12 Months Ended |
Dec. 31, 2019 |
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| Summary of Borrowings |
Our borrowings as of December 31, 2019 and 2018 are summarized below (dollars in thousands):
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Carrying Value as of |
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As of December 31, 2019 |
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December 31,
2019
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December 31,
2018
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Stated Interest
Rates(1)
(Range; Wtd Avg)
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Maturity Dates
(Range; Wtd Avg)
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Notes and bonds payable: |
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Fixed-rate notes payable |
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$ |
394,569 |
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|
$ |
247,249 |
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3.16%–5.70%; 4.05% |
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6/1/2020–8/1/2044; March 2032 |
Fixed-rate bonds payable |
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90,380 |
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90,877 |
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2.61%–4.57%; 3.45% |
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1/10/2020–9/13/2028; January 2023 |
Total notes and bonds payable |
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484,949 |
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338,126 |
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Debt issuance costs – notes and bonds payable |
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(3,120 |
) |
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(2,338 |
) |
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N/A |
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N/A |
Notes and bonds payable, net |
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$ |
481,829 |
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$ |
335,788 |
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Variable-rate revolving lines of credit |
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$ |
100 |
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$ |
100 |
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4.03% |
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4/5/2024 |
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Total borrowings, net |
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$ |
481,929 |
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$ |
335,888 |
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(1) |
Where applicable, stated interest rates are before interest patronage (as described below). |
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| Schedule of Aggregate Maturities |
Scheduled principal payments of our aggregate notes and bonds payable as of December 31, 2019, for the succeeding years are as follows (dollars in thousands):
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For the Fiscal Years Ending December 31, |
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Scheduled
Principal Payments
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2020 |
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$ |
34,052 |
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2021 |
|
18,834 |
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2022 |
|
41,707 |
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2023 |
|
35,974 |
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2024 |
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27,163 |
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Thereafter |
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327,219 |
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$ |
484,949 |
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| Interest Rate Swap |
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| Schedule of Borrowings by Type |
The following table summarizes our interest rate swaps as of December 31, 2019 (dollars in thousands):
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Aggregate Notional Amount |
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Aggregate Fair Value Asset |
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Aggregate Fair Value Liability |
$ |
14,298 |
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$ |
— |
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$ |
390 |
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The following table presents the amount of loss recognized in comprehensive income within our consolidated financial statements for the year ended December 31, 2019 (dollars in thousands):
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Year Ended December 31, 2019 |
Derivative in cash flow hedging relationship: |
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Interest rate swaps |
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$ |
390 |
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Total |
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$ |
390 |
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The following table summarizes certain information regarding our derivative instruments as of December 31, 2019 (dollars in thousands):
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Derivative Type |
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Balance Sheet Location |
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Derivative Liability Fair Value |
Derivatives Designated as Hedging Instruments: |
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Interest rate swaps |
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Other liabilities, net |
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$ |
390 |
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Total |
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$ |
390 |
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| MetLife Credit Facility |
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| Summary of Borrowings |
During the year ended December 31, 2019, we drew the following amounts on the MetLife Term Notes (dollars in thousands):
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Date of
Issuance
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Amount |
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Maturity
Date
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Principal
Amortization
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Interest Rate Terms(1)
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8/16/2019 |
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$ |
16,500 |
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1/5/2029 |
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28.6 years |
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3.70%, fixed through January 4, 2027 (variable thereafter) |
11/1/2019 |
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25,500 |
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1/5/2029 |
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28.6 years |
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3.81%, fixed through January 4, 2027 (variable thereafter) |
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(1) |
The interest rates on these new disbursements were blended with the existing interest rate on the previously-outstanding balance under the MetLife Term Notes. |
The following table summarizes the pertinent terms of the MetLife Facility as of December 31, 2019 (dollars in thousands, except for footnotes):
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Issuance |
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Aggregate
Commitment
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Maturity
Dates
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Principal
Outstanding
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Interest Rate Terms |
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Undrawn
Commitment
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MetLife Term Notes |
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$ |
200,000 |
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1/5/2029 |
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$ |
163,908 |
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3.42%, fixed through 1/4/2027 |
(1) |
$ |
21,530 |
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(2) |
MetLife Lines of Credit |
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75,000 |
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4/5/2024 |
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100 |
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3-month LIBOR + 2.00% |
(4) |
74,900 |
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(3) |
Total principal outstanding |
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$ |
164,008 |
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(1) |
Represents the blended interest rate as of December 31, 2019. Interest rates for subsequent disbursements, if any, will be based on then-prevailing market rates. The interest rate on all then-outstanding disbursements will be subject to adjustment on January 5, 2027. Through December 31, 2019, the MetLife Term Notes were also subject to an unused fee ranging from 0.10% to 0.20% on undrawn amounts (based on the balance drawn under the notes).
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(2) |
As the aggregate commitment under this facility was not fully utilized by December 31, 2019, MetLife had the option to be relieved of its obligations to disburse the additional funds under the MetLife Term Notes.
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(3) |
Based on the properties that were pledged as collateral under the MetLife Facility, as of December 31, 2019, the maximum additional amount we could draw under the facility was approximately $22.9 million.
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(4) |
The interest rate on the MetLife Lines of Credit is subject to a minimum annualized rate of 2.50%, plus an unused fee ranging from 0.10% to 0.20% on undrawn amounts (based on the balance drawn under each line of credit).
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| Farm Credit Notes Payable |
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| Summary of Borrowings |
During the year ended December 31, 2019, we entered into the following loan agreements with Farm Credit (dollars in thousands):
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Issuer |
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Date of
Issuance
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Amount |
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Maturity
Date
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Principal
Amortization
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Interest Rate Terms(1)
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Premier Farm Credit, FLCA |
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2/7/2019 |
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$ |
1,440 |
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11/1/2043 |
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25.0 years |
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5.45%, fixed through October 31, 2023 (variable thereafter) |
GreenStone Farm Credit Services |
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7/11/2019 |
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1,609 |
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8/1/2044 |
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25.0 years |
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5.00%, fixed through June 30, 2029 (variable thereafter) |
GreenStone Farm Credit Services |
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7/11/2019 |
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3,060 |
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8/1/2044 |
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25.0 years |
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5.00%, fixed through June 30, 2029 (variable thereafter) |
Farm Credit West, FLCA |
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7/11/2019 |
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5,400 |
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5/1/2044 |
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24.5 years |
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4.24%, fixed through July 31, 2026 (variable thereafter) |
Farm Credit of Central Florida, ACA |
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7/22/2019 |
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31,850 |
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7/1/2027 |
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25.2 years |
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5.05%, fixed throughout term |
Farm Credit of Central Florida, ACA |
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7/22/2019 |
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5,850 |
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7/1/2027 |
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None
(interest only) |
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5.05%, fixed throughout term |
Farm Credit West, FLCA |
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8/28/2019 |
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12,792 |
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5/1/2044 |
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24.5 years |
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3.84%, fixed through August 31, 2026 (variable thereafter)(2)
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American AgCredit, ACA |
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8/29/2019 |
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19,254 |
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10/1/2039 |
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20.0 years |
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3.84%, fixed through August 31, 2029 (variable thereafter) |
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(1) |
Stated rate is before interest patronage, as described below. |
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(2) |
Loan originally issued as a variable-rate loan and was converted to a fixed-rate loan effective September 1, 2019. |
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| Farmer Mac Facility |
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| Summary of Borrowings |
During the year ended December 31, 2019, we amended and restated two bonds totaling approximately $13.9 million that were previously issued under the Farmer Mac Facility and were originally scheduled to mature on December 11, 2019, and January 6, 2020, respectively. The pertinent terms of the two amended and restated bonds are summarized in the table below (dollars in thousands):
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Date of Issuance |
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Amount |
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Maturity Dates |
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Principal Amortization |
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Interest Rate Terms |
12/11/2019 |
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$ |
3,285 |
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12/11/2020 |
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None
(interest only) |
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2.61%; fixed throughout term |
12/11/2019 |
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10,568 |
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12/11/2020 |
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None
(interest only) |
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2.61%; fixed throughout term |
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| Prudential Note Payable |
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| Schedule of Borrowings by Type |
During the year ended December 31, 2019, we entered into a loan agreement with PGMI Real Estate Finance, LLC (“Prudential”), the terms of which are summarized in the following table (dollars in thousands):
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Date of Issuance |
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Amount |
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Maturity Date |
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Principal Amortization |
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Interest Rate Terms |
6/17/2019 |
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$ |
17,130 |
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(1) |
7/1/2029 |
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25.0 years |
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4.00%, fixed throughout term |
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(1) |
Approximately $498,000 of this funding was held back by the lender until certain irrigation improvements on the property were completed and is included within Other assets on the accompanying Consolidated Balance Sheet as of December 31, 2019. We currently expect these irrigation improvements to be completed during the three months ending March 31, 2020, at which point these funds will be released to us pursuant to an escrow holdback agreement.
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| Rabo Notes Payable |
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| Schedule of Borrowings by Type |
During the year ended December 31, 2019, we, through certain subsidiaries of our Operating Partnership, entered into the following loan agreements with Rabo AgriFinance, LLC (“Rabo”):
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Date of Issuance |
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Amount |
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Maturity Date |
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Principal Amortization |
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Interest Rate Terms |
7/10/2019 |
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$ |
5,514 |
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6/1/2029 |
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25.0 years |
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1-Month LIBOR + 1.75% (1)
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10/16/2019 |
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5,739 |
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10/1/2029 |
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25.0 years |
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1-Month LIBOR + 1.75% (2)
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10/16/2019 |
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3,045 |
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10/1/2029 |
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25.0 years |
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1-Month LIBOR + 1.75% (2)
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(1) |
In connection with securing this loan and to hedge our exposure to the above variable interest rate, we entered into an interest rate swap agreement in which we agreed to pay a fixed interest rate to our counterparty of 4.04% through June 1, 2029. See “—Interest Rate Swap Agreements” below for additional information on this swap agreement.
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(2) |
In connection with securing these loans, we entered into two interest rate swap agreements in which we agreed to pay a fixed interest rate to our counterparty of 3.67% through October 1, 2029. See “—Interest Rate Swap Agreements” below for additional information on these swap agreements.
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| Diversified Financial Services, LLC |
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| Schedule of Borrowings by Type |
The following table summarizes the pertinent terms of our term loan from Diversified Financial (dollars in thousands):
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Date of Issuance |
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Amount |
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Maturity Date |
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Principal Amortization |
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Interest Rate Terms |
10/17/2019 |
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$ |
976 |
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10/17/2026 |
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7.0 years |
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4.75%, fixed throughout term |
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