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Subsequent Events | 9 Months Ended
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Sep. 30, 2019
Subsequent Events [Abstract] |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Acquisition Activity Subsequent to September 30, 2019, through the date of this filing, we have acquired six farms, which are summarized in the table below (dollars in thousands, except for footnotes):
Property Name |  | Property Location |  | Acquisition Date |  | Total Acreage |  | No. of Farms |  | Primary Crop(s) |  | Lease Term |  | Renewal Options |  | Total Purchase Price |  | Acquisition Costs(1) |  | Annualized Straight-line Rent(2)
Highway 17(3) |  | Hayes, NE |  | 10/7/2019 |  | 2,561 |  | 3 |  | Corn, soybeans, & edible beans |  | 0.2 years |  | None |  | $ | 9,690 |  |  | $ | 39 |  |  | $ | 489 |
Indian Highway(4) |  | Hayes & Hitchcock, NE |  | 10/7/2019 |  | 1,289 |  | 2 |  | Corn, soybeans, & edible beans |  | 0.3 years |  | None |  | 5,000 |  |  | 39 |  |  | 788 |
Sutter Avenue II |  | Fresno, CA |  | 11/1/2019 |  | 1,098 |  | 1 |  | Pistachios |  | 8.0 years |  | 2 (5 Years) |  | 37,000 |  |  | 68 |  |  | 2,365 |
|  |  |  |  |  | 4,948 |  | 6 |  |  |  |  |  |  |  | $ | 51,690 |  |  | $ | 146 |  |  | $ | 3,642 |
(1) | Acquisitions will be accounted for as asset acquisitions in accordance with ASC 360. The figures above represent only costs paid or accrued for as of the date of this filing.
(2) | Annualized straight-line rent is based on the minimum cash rental payments guaranteed under the applicable lease, as required under GAAP, and excludes contingent rental payments, such as participation rents.
(3) | In connection with the acquisition of this property, we executed a 10-year, follow-on lease with a new, unrelated third-party tenant that will commence upon the expiration of the 3-month lease executed on the date of acquisition. The follow-on lease provides for minimum annualized straight-line rents of approximately $630,000, plus a participation rent component based on the gross revenues earned on the farm. In addition, the farm is expected to be converted to organic farmland by 2021.
(4) | In connection with this acquisition, we executed a 4-month leaseback agreement with the seller that provides for a fixed rental payment of $250,000. In addition, we also executed a 10-year, follow-on lease with a new tenant that will commence upon the expiration of the 4-month leaseback agreement. The follow-on lease provides for minimum annualized straight-line rents of approximately $372,000, plus a participation rent component based on the gross revenues earned on the farm. In addition, the farm is expected to be converted to organic farmland by 2021.
Leasing Activity The following table summarizes certain leasing activity that occurred on our existing properties subsequent to September 30, 2019, through the date of this filing (dollars in thousands, except footnotes):
|  |  |  | PRIOR LEASES |  | NEW LEASES
Farm Locations | Number of Leases | Total Farm Acres |  | Total Annualized Straight-line Rent(1) | # of Leases with Participation Rents | Lease Structures (# of NNN / NN)(2) |  | Total Annualized Straight-line Rent(1) | Wtd. Avg. Term (Years) | # of Leases with Participation Rents | Lease Structures (# of NNN / NN)(2)
AZ, CA, FL | 5 | 5,177 |  | $ | 5,104 |  | None | 1 / 4 |  | $ | 5,850 |  | 7.0 | None | 0 / 5
(1) | Annualized straight-line rent is based on the minimum cash rental payments guaranteed under the applicable leases (presented on an annualized basis), as required under GAAP, and excludes contingent rental payments, such as participation rents.
(2) | “NNN” refers to leases under triple-net lease arrangements, and “NN” refers to leases under partial-net lease arrangements. For a description of each of these types of lease arrangements, see “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview—Leases—General.”
Subsequent to the quarter ended September 30, 2019, we replaced 17 irrigation pivots on one of our properties in Colorado at a total cost of approximately $1.1 million. Pursuant to a lease amendment executed subsequent to the three months ended September 30, 2019, in connection with this project, we will earn additional straight-line rental income of approximately $80,000 per year throughout the remaining term of the lease, which expires on February 28, 2021. Financing Activity Debt Activity Subsequent to September 30, 2019, through the date of this filing, we have secured the following new financings (dollars in thousands):
Issuer |  | Date of Issuance |  | Amount |  | Maturity Date |  | Principal Amortization |  | Interest Rate Terms
Rabo AgriFinance, LLC |  | 10/16/2019 |  | $ | 5,739 |  |  | 10/1/2029 |  | 25.0 years |  | 1-Month LIBOR + 1.75%(1)
Rabo AgriFinance, LLC |  | 10/16/2019 |  | 3,045 |  |  | 10/1/2029 |  | 25.0 years |  | 1-Month LIBOR + 1.75%(1)
Diversified Financial Services, LLC |  | 10/17/2019 |  | 976 |  |  | 10/17/2026 |  | 7.0 years |  | 4.75%, fixed throughout its term
Metropolitan Life Insurance Company(2) |  | 11/1/2019 |  | 25,500 |  |  | 1/5/2029 |  | 28.6 years |  | 3.81%, fixed through January 4, 2027 (variable thereafter)
(1) | In connection with each of these loans, we entered into interest rate swap agreements in which we will pay a fixed interest rate to our counterparty of 3.67% through October 1, 2029.
(2) | Loan was issued under the MetLife Credit Facility, as defined in Note 4, “Borrowings,” in these notes to our condensed consolidated financial statements.
Gladstone Securities earned total financing fees of approximately $47,000 in connection with securing the above financings. Equity Activity The following table provides information on equity sales that have occurred subsequent to September 30, 2019 (dollars in thousands, except per-share amounts):
Type of Issuance |  | Number of Shares Sold |  | Weighted Average Offering Price Per Share |  | Gross Proceeds |  | Net Proceeds(1)
Series B Preferred Stock |  | 244,778 |  | $ | 24.82 |  |  | $ | 6,076 |  |  | $ | 5,508 |
Common Stock – ATM Program |  | 48,583 |  | 12.01 |  |  | 583 |  |  | 574 |
(1) | Net of Selling Commissions and Dealer-Manager Fees or underwriting commissions and discounts (in each case, as applicable)
In addition, subsequent to September 30, 2019, 400 shares of the Series B Preferred Stock were tendered for redemption at a cash redemption price of $22.50 per share. As a result, we paid a total redemption cost of $9,000 to redeem and retire these shares. Distributions On October 8, 2019, 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 22, 2019 |  | October 31, 2019 |  | $ | 0.1328125 |
|  | November 19, 2019 |  | November 29, 2019 |  | 0.1328125 |
|  | December 19, 2019 |  | December 31, 2019 |  | 0.1328125 |
Total Series A Term Preferred Stock Distributions: |  | $ | 0.3984375 |
Series B Preferred Stock: |  | October 23, 2019 |  | October 31, 2019 |  | $ | 0.125 |
|  | November 27, 2019 |  | December 5, 2019 |  | 0.125 |
|  | December 26, 2019 |  | January 3, 2020 |  | 0.125 |
Total Series B Preferred Stock Distributions: |  | $ | 0.375 |
Common Stock: |  | October 22, 2019 |  | October 31, 2019 |  | $ | 0.04460 |
|  | November 19, 2019 |  | November 29, 2019 |  | 0.04460 |
|  | December 19, 2019 |  | December 31, 2019 |  | 0.04460 |
Total Common Stock Distributions: |  | $ | 0.13380 |
The same amounts paid to common stockholders will be paid as distributions on each OP Unit held by non-controlling limited partners 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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