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Borrowings | 9 Months Ended
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Sep. 30, 2016
Debt Disclosure [Abstract] |
BORROWINGS | BORROWINGS Our borrowings as of September 30, 2016, and December 31, 2015, are summarized below:
|  |  |  |  |  |  |  |  |  |  | As of September 30, 2016 |  |  | As of December 31, 2015
Issuer |  | Type of Issuance |  | Date(s) of Issuance |  | Initial Commitment |  | Maturity Date(s) |  |  | Principal Outstanding |  | Stated Interest Rate(1) |  | Undrawn Commitment |  |  | Principal Outstanding |  | Stated Interest Rate(1) |  | Undrawn Commitment
MetLife(2) |  | Mortgage Note Payable |  | 5/9/2014 |  | $ | 100,000,000 |  |  | 1/5/2029 | (3) |  | $ | 85,939,466 |  |  | 3.35% |  | $ | 12,529,806 |  | (4) |  | $ | 87,470,194 |  |  | 3.35% |  | $ | 12,529,806 |
MetLife(2) |  | Line of Credit |  | 5/9/2014 |  | 25,000,000 |  |  | 4/5/2024 |  |  | 22,500,000 |  |  | 2.90% |  | 2,500,000 |  | (4) |  | 100,000 |  |  | 2.58% |  | 24,900,000 |
Farm Credit(5) |  | Mortgage Notes Payable |  | 9/19/2014-7/1/2016 |  | 34,587,880 |  |  | 11/1/2017-11/1/2040 |  |  | 33,263,161 |  |  | 3.50% | (6) | — |  |  |  | 21,456,963 |  |  | 3.42% | (6) | — |
Farmer Mac |  | Bonds Payable |  | 12/11/2014-8/22/2016 |  | 125,000,000 |  |  | 12/22/2016-8/22/2023 | (7) |  | 49,777,500 |  |  | 2.94% |  | 74,743,000 |  | (8) |  | 33,706,000 |  |  | 2.87% |  | 41,294,000 |
Total outstanding principal |  |  |  |  |  |  | 191,480,127 |  |  |  |  |  |  |  | 142,733,157 |  |  |  |  |
Debt issuance costs |  |  |  |  |  |  | (1,100,503 | ) |  |  |  |  |  |  | (1,054,222 | ) |  |  |  |
Total mortgage notes and bonds payable, net |  |  |  |  | $ | 190,379,624 |  |  |  |  |  |  |  | $ | 141,678,935 |  |  |  |  |
(1) | Where applicable, represents the weighted-average, blended rate on the respective borrowings as of each September 30, 2016, and December 31, 2015.
(2) | The MetLife Facility (as defined below) was amended subsequent to September 30, 2016. See Note 10, "Subsequent Events," for further discussion on the amendment.
(3) | As of September 30, 2016, if the facility was not fully utilized by December 31, 2017, MetLife had the option to be relieved of its obligations to disburse the additional funds under the loan. Subsequent to September 30, 2016, our ability to draw under this facility was extended to December 31, 2018. See Note 10, "Subsequent Events," for further discussion.
(4) | Based on the properties that were pledged as collateral under the MetLife Facility, as of September 30, 2016, the maximum additional amount we could draw under the facility was approximately $0.6 million. Our availability under this facility was increased by approximately $28.3 million subsequent to September 30, 2016. See Note 10, "Subsequent Events," for further discussion.
(5) | Includes borrowings from Farm Credit CFL and Farm Credit West, each as defined below.
(6) | Rate is before interest patronage. 2015 interest patronage (as described below) received resulted in a 16.1% reduction to the stated interest rate on such borrowings.
(7) | If facility is not fully utilized by December 11, 2018, Farmer Mac has the option to be relieved of its obligations to purchase additional bonds under the facility.
(8) | As of September 30, 2016, there was no additional availability to draw under this facility, as no additional properties had been pledged as collateral.
The weighted-average interest rate charged on all of our borrowings, excluding the impact of deferred financing costs and before any interest patronage, or refunded interest, was 3.29% and 3.08% for the three and nine months ended September 30, 2016, respectively, and 3.41% and 3.51% for the three and nine months ended September 30, 2015, respectively. 2015 interest patronage from all Farm Credit Notes Payable (as defined below), which patronage was received during the three months ended March 31, 2016, resulted in a 16.1% reduction to the stated interest rates on such borrowings. We are unable to estimate the amount of patronage to be received, if any, related to interest accrued during 2016 on our Farm Credit Notes Payable. MetLife Facility On May 9, 2014, we closed on a facility with Metropolitan Life Insurance Company (“MetLife”) that consists of a $100.0 million long-term note payable that is scheduled to mature on January 5, 2029 (the “2015 MetLife Term Note”), and a $25.0 million revolving equity line of credit that is scheduled to mature on April 5, 2024 (the “2015 MetLife Line of Credit” and, together with the 2015 MetLife Term Note, the “MetLife Facility”). As amended on September 3, 2015, advances under the 2015 MetLife Term Note bear interest at a fixed rate of 3.35% per annum, plus an unused line fee of 0.20% on undrawn amounts, and interest rates for subsequent disbursements will be based on prevailing market rates at the time of such disbursements. The interest rates on advances and subsequent disbursements will be subject to adjustment every five years, with the next interest rate adjustment date scheduled to occur on August 31, 2020. If the full commitment amount of $100.0 million is not drawn by December 31, 2017, MetLife has the option to be relieved of its obligation to disburse the additional funds under this loan. Advances under the 2015 MetLife Line of Credit bear interest at a variable rate equal to the three-month LIBOR plus a spread of 2.25%, with a minimum annualized rate of 2.50%, plus an unused fee of 0.20% on undrawn amounts. The interest rate spread on borrowings under the 2015 MetLife Line of Credit will be subject to adjustment on April 5, 2017. As of September 30, 2016, we were in compliance with all covenants under the MetLife Facility. Subsequent to September 30, 2016, we amended the MetLife Facility. See Note 10, "Subsequent Events," for further discussion of this amendment. Farm Credit Notes Payable Farm Credit CFL Notes Payable From time to time since September 19, 2014, we, through certain subsidiaries of our Operating Partnership, have entered into various loan agreements with Farm Credit of Central Florida, FLCA ("Farm Credit CFL"). During the nine months ended September 30, 2016, we entered into the following loan agreement with Farm Credit CFL:
Date of Issuance |  | Amount |  | Maturity Date |  | Principal Amortization |  | Interest Rate Terms(1) |  | Use of Proceeds
7/1/2016 |  | $ | 3,120,000 |  |  | 6/1/2023 |  | 36.0 years |  | 3.78 | % | fixed throughout term |  | (2)
(1) Rate represents the stated interest rate, before interest patronage. (2) Proceeds from this note were used in the acquisition of Orange Avenue. As of September 30, 2016, we have approximately $24.0 million of aggregate borrowings outstanding to Farm Credit CFL that bear interest (before interest patronage) at a weighted-average rate of 3.49% per annum. 2015 interest patronage from Farm Credit CFL borrowings resulted in a 16.1% reduction to the stated interest rates on such borrowings. As of September 30, 2016, we were in compliance with all covenants applicable to these borrowings. Farm Credit West Note Payable During the nine months ended September 30, 2016, we entered into the following loan agreement with Farm Credit West, FLCA ("Farm Credit West"):
Date of Issuance |  | Amount |  | Maturity Date |  | Principal Amortization |  | Interest Rate Terms(1) |  | Use of Proceeds
4/4/2016 |  | $ | 9,282,000 |  |  | 11/1/2040 |  | 24.5 years |  | 3.54 | % | fixed through 4/30/2021, variable thereafter |  | (2)
(1) Rate represents the stated interest rate, before interest patronage.
(2) | Proceeds from this note were used in the acquisition of Calaveras Avenue.
As of September 30, 2016, we have approximately $9.3 million of aggregate borrowings outstanding to Farm Credit West that bear interest (before interest patronage) at a rate of 3.54% per annum. As of September 30, 2016, we were in compliance with all covenants applicable to these borrowings. Subsequent to September 30, 2016, we closed on an additional loan from Farm Credit West for approximately $3.9 million. See Note 10, "Subsequent Events," for further discussion of this loan. Farmer Mac Facility On December 5, 2014, we, through certain subsidiaries of our Operating Partnership, entered into a bond purchase agreement (the “Bond Purchase Agreement”) with Federal Agricultural Mortgage Corporation (“Farmer Mac”) and Farmer Mac Mortgage Securities Corporation (the “Bond Purchaser”), for a secured note purchase facility that provides for bond issuances up to an aggregate principal amount of $75.0 million (the “Farmer Mac Facility”). On June 16, 2016, we amended the facility to increase the maximum borrowing capacity from $75.0 million to $125.0 million and extend the term of the Bond Purchase Agreement by two years, to December 11, 2018. During the nine months ended September 30, 2016, we issued the following bonds under the Farmer Mac Facility:
Date of Issuance |  | Amount |  | Maturity Date |  | Principal Amortization |  | Interest Rate Terms |  | Use of Proceeds
3/3/2016 |  | $ | 11,100,000 |  |  | 2/24/2023 |  | None |  | 3.08% | fixed throughout term |  | (1)
3/3/2016 |  | 4,431,000 |  |  | 2/24/2023 |  | 9.7 years |  | 2.98% | fixed throughout term |  | (1)
8/22/2016 |  | 1,020,000 |  |  | 8/22/2023 |  | None |  | 2.87% | fixed throughout term |  | (2)
(1) Proceeds from this bond were used in the acquisition of Gunbarrel Road.
(2) | Proceeds from this note were used in the acquisition of Lithia Road.
As of September 30, 2016, the aggregate amount of bonds issued under the Farmer Mac Facility was approximately $49.8 million. As of September 30, 2016, we were in compliance with all covenants under the Farmer Mac Facility. Debt Service – Aggregate Maturities Scheduled principal payments of our aggregate mortgage notes and bonds payable as of September 30, 2016, for the succeeding years are as follows:
|  |  | Scheduled
Period |  | Principal Payments
For the remaining three months ending December 31: | 2016 |  | $ | 717,096 |
For the fiscal years ending December 31: | 2017 |  | 5,981,018 |
| 2018 |  | 20,480,231 |
| 2019 |  | 8,105,632 |
| 2020 |  | 17,796,920 |
| Thereafter |  | 115,899,230 |
|  |  | $ | 168,980,127 |
Fair Value As of September 30, 2016, the aggregate fair value of our long-term, fixed-rate mortgage notes and bonds payable was approximately $170.1 million, as compared to an aggregate carrying value of $167.0 million. The fair value of our long-term, fixed-rate mortgage notes and bonds payable is valued using Level 3 inputs under the hierarchy established by ASC 820-10, “Fair Value Measurements and Disclosures,” and is calculated based on a discounted cash flow analysis, using discount rates based on management’s estimates of market interest rates on long-term debt with comparable terms. Due to their short-term nature and the lack of changes in market credit spreads, the aggregate fair value of our short-term, variable-rate mortgage notes and bonds payable as of September 30, 2016, is deemed to approximate their aggregate carrying value of approximately $1.9 million. Further, due to the revolving nature of the 2015 MetLife Line of Credit and the lack of changes in market credit spreads, its fair value as of September 30, 2016, is deemed to approximate its carrying value of $22.5 million.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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