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Subsequent Events | 9 Months Ended
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Sep. 30, 2018
Subsequent Events [Abstract] |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Acquisition Activity On November 1, 2018, we acquired a 951-acre farm in Madera County, California (“Sunnyside Avenue”), growing figs and pistachios for $23.0 million. At closing, we entered into an 8-year, triple-net lease agreement with the current tenant on the farm that also includes two, 5-year extension options. The lease, which consists of a fixed cash rent component plus a variable rent component based on the gross crop revenues earned on the farm, provides for minimum annualized, straight-line rents of approximately $1.2 million. We will account for this acquisition as an asset acquisition in accordance with ASC 360. Leasing Activity On October 15, 2018, the tenant on our 119-acre farm in Van Buren County, Michigan, informed us of its intent to vacate the premises, effective October 31, 2018. While the tenant was current in its rental payments through the date of his vacating the premises, the lease was originally scheduled to expire on April 20, 2020. We are currently in discussions with other potential tenants to operate the farm, and we are also exploring other options to recover the lost rental income that may be available to us. During the three and nine months ended September 30, 2018, we recorded rental income related to this property of approximately $28,000 and 85,000, respectively (including approximately $7,000 and $20,000 respectively, of accretion attributable to tenant-funded improvements on the property recorded in prior years). In October 2018, we reached an agreement with the current tenant on our 61-acre farm in Hillsborough County, Florida, to terminate the lease (which was originally scheduled to expire on June 30, 2020) as of June 30, 2018, and entered into a new, one-year lease with a new tenant. The new lease, which commenced on July 1, 2018, and expires on June 30, 2019, provides for minimum straight line rent of 15,000, which represents a decrease of approximately $56,000 (approximately 78.8%) from that of the prior lease (before its termination). Our lease on three farms in Van Buren County, Michigan, totaling 151 acres expired on November 4, 2018. We have reached an agreement with the current tenant to extend the term of the lease for an additional three years (through November 4, 2021) and amend the rental terms, which will result in a reduction in the minimum, straight-line rents in exchange for adding in a variable rent component based on the gross crop revenues earned on the farm over a certain threshold. Financing Activity In connection with the acquisition of Sunnyside Avenue, on November 1, 2018, we entered into a new loan agreement with Farm Credit West for $13.8 million. The loan is scheduled to mature on November 1, 2043, and will bear interest (before interest patronage) at a fixed rate of 5.61% per annum through October 31, 2028, thereafter converting to a variable rate unless another fixed rate is established. Gladstone Securities earned a financing fee of approximately $17,000 in connection with securing this financing. Equity Activity Sales of Series B Preferred Stock Subsequent to September 30, 2018, through the date of this filing, we have sold 199,353 shares of the Series B Preferred Stock for gross proceeds of approximately $5.0 million and net proceeds of approximately $4.5 million. Total selling commissions and dealer-manager fees earned by Gladstone Securities as a result of these sales were approximately $484,000 (of which approximately $459,000 was remitted by Gladstone Securities to unrelated third-parties involved in the offering, such as participating broker-dealers and wholesalers). Distributions On October 9, 2018, our Board of Directors declared the following monthly cash distributions to holders of our preferred and common stock:
Issuance |  | Record Date |  | Payment Date |  | Distribution per Share
Series A Term Preferred Stock: |  | October 19, 2018 |  | October 31, 2018 |  | $ | 0.1328125 |
|  | November 20, 2018 |  | November 30, 2018 |  | 0.1328125 |
|  | December 20, 2018 |  | December 31, 2018 |  | 0.1328125 |
Total Series A Term Preferred Stock Distributions: |  | $ | 0.3984375 |
Series B Preferred Stock: |  | October 23, 2018 |  | October 31, 2018 |  | $ | 0.125 |
|  | November 20, 2018 |  | November 30, 2018 |  | 0.125 |
|  | December 26, 2018 |  | January 3, 2019 |  | 0.125 |
Total Series B Preferred Stock Distributions: |  | $ | 0.375 |
Common Stock: |  | October 19, 2018 |  | October 31, 2018 |  | $ | 0.04440 |
|  | November 20, 2018 |  | November 30, 2018 |  | 0.04440 |
|  | December 20, 2018 |  | December 31, 2018 |  | 0.04440 |
Total Common Stock Distributions: |  | $ | 0.13320 |
The same amounts paid to common stockholders 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.

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- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 855 -URI http://asc.fasb.org/topic&trid=2122774 + Details
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