 Please note that the limited information that follows in this press release is a summary and is not adequate for making an informed investment decision. MCLEAN, Va., Aug. 05, 2020 GLOBE NEWSWIRE -- Gladstone Land Corporation Nasdaq: LAND Gladstone Land or the Company today reported financial results for the second quarter ended June 30, 2020. A description of funds from operations FFO, core FFO CFFO, adjusted FFO AFFO, and net asset value NAV, all non-GAAP generally accepted accounting principles in the United States financial measures, is located at the end of this press release. All per-share references are to fully-diluted, weighted-average shares of the Companys common stock unless noted otherwise. For further detail, please refer to the Companys Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 the Form 10-Q, which is available on the Investor Relations section of the Companys website at Quarter 2020 Activity: Portfolio Activity: Property Acquisitions: Acquired two new farms, consisting of 1,268 total acres, for approximately 17.7 million and paid additional compensation of approximately 3.2 million related to a farm acquired during August 2019 due to additional acreage being approved by the respective county for additional vineyard plantings. On a weighted-average basis, the initial, minimum net capitalization rate on these acquisitions is 6.2; however, the leases on these farms contains certain provisions e.g., annual rent escalations that are expected to drive cash rents higher in future years. Leasing Activity: Renewed the lease on one of our farms located in California for an additional eight years, which is expected to result in an increase in annual net operating income of approximately 161,000, or 26.6, over that of the prior lease. Financing ActivityNew Long-term Borrowings: Secured a total of approximately 16.3 million of new, long-term borrowings from three different lenders at an expected weighted-average effective interest rate of 2.81. On a weighted-average basis, these rates are fixed for the next 9.2 years. Equity Activity: Series C Preferred Stock: Sold 130,702 shares of our 6.00 Series C Cumulative Redeemable Preferred Stock the Series C Preferred Stock for net proceeds of approximately 3.0 million. Common Stock: Sold 44,129 shares of common stock for net proceeds of approximately 707,000 under our at-the-market program the ATM Program. Increased and Paid Distributions: Increased the monthly distribution run rate on our common stock by 0.11 and paid total cash distributions of 0.1341 per share of common stock for April, May, and June 2020.Second Quarter 2020 Results:Net income for the quarter was approximately 182,000, compared to approximately 3.1 million in the prior quarter. Net loss to common stockholders and non-controlling OP Unitholders during the quarter was approximately 2.1 million, or 0.10 per share, compared to net income to common stockholders and non-controlling OP Unitholders of approximately 976,000, or 0.05 per share, in the prior quarter.AFFO for the quarter was approximately 2.2 million, or 0.10 per common share, compared to approximately 5.4 million, or 0.25 per common share, in the prior quarter. Common stock dividends declared were approximately 0.13 per share for each quarter. The decrease in AFFO was primarily due to lower lease revenues recorded in the current quarter, partially offset by a decrease in certain operating expenses. In addition, we recorded approximately 1.3 million of other income due to interest patronage received related to our borrowings with Farm Credit, which patronage income is generally recorded during the first quarter of each calendar year.Total lease revenue decreased by approximately 2.6 million, or 17.3, primarily driven by an early lease termination payment of approximately 3.0 million received from an outgoing tenant during the prior quarter, partially offset by additional revenues recorded from recent acquisitions. Our core operating expenses decreased primarily due to lower related-party fees during the current quarter, which was driven by an incentive fee earned by our investment adviser in the prior quarter, versus no fee earned during the current quarter, partially offset by additional costs incurred during the current quarter to repair certain underground irrigation improvements on one of our farms. In addition, aggregate dividends declared on our preferred stock inclusive of our 6.00 Series B Cumulative Redeemable Preferred Stock the Series B Preferred Stock and Series C Preferred Stock increased due to additional issuances during and since the prior quarter.Cash flows from operations for the current quarter increased, primarily due to the timing of when certain rental payments are scheduled to be paid pursuant to their respective leases and lower fees paid to related parties, partially offset by the receipt of an early lease termination payment during the prior quarter. Our NAV per share decreased by 0.40 from the prior quarter to 11.06 at June 30, 2020, primarily driven by ongoing capital improvements made on certain of our farms which will not be reflected in the fair values of the properties until the respective projects are completed and an increase in the fair value of our long-term borrowings due to changes in market interest rates.Subsequent to June 30, 2020: Portfolio ActivityLeasing Activity: Extended leases on two farms located in Florida for an additional two years that are expected to result in an aggregate increase in annual net operating income of approximately 11,000, or 10.0, over that of the prior leases. Equity Activity: Series C Preferred Stock: Sold 147,682 shares of the Series C Preferred Stock for net proceeds of approximately 3.4 million. Common Stock: Sold 343,925 shares of common stock for net proceeds of approximately 5.5 million under the ATM Program. Increased Distributions: Increased our distribution run rate by 0.22, declaring monthly cash distributions of 0.0448 per share of common stock including OP Units held by non-controlling OP Unitholders for each of July, August, and September 2020. This marks our 19th distribution increase over the past 22 quarters, during which time we have increased the distribution run rate by 49.3.Update on Rent Collections: The Company granted extensions of up to 123 days to two tenants who owed semi-annual rent payments totaling approximately 343,000 approximately 0.7 of annual portfolio cash rents. These payments were originally scheduled to be paid on July 1, 2020, and the rent deferrals we granted to these tenants extend the new due dates to be on or before November 1, 2020. Additional time was granted to these tenants due to delays in payments owed to them from their respective processors, which were primarily caused by the strict government-mandated lockdowns in the state of Michigan in response to COVID-19. In addition, the Company is currently awaiting payment from one other tenant who owed an annual rent payment of approximately 53,000 approximately 0.1 of annual portfolio cash rents in July 2020. The delay in this payment is primarily due to a delay in our farmers receipt of certain insurance payouts; however, we currently expect this amount to be collected in full by the end of August 2020. Other than the aforementioned rent deferrals, we have neither received nor granted any other requests from tenants seeking relief as a result of COVID-19, and all other tenants are current in their rental payments to us.Comments from David Gladstone, President and CEO of Gladstone Land: Operating results for the second quarter came in as expected, when compared to the slow start in 2019, and the team has a very healthy list of new farms they are seeking to acquire. The Companys farms continue to be 100 leased, and the team continues to have success with lease renewals at higher rental rates, which we believe indicates the strong demand by growers for the Companys farms. The impact on the Companys operations continue to be minimal, as most of its tenants sell their products to grocery stores, with very little of their sales going to restaurants and other segments of the food service industry. Based on pricing and sales volumes, the tenants on the Companys farms seem to be in position to have a very good year. With the exception of the situations noted above, all of the Companys tenants are current in their rental payments, and we do not currently foresee any reason for that to change in the future. The reactions of the various state and local governments to COVID-19 thus far do not seem to have injured our tenant-farmers to any great extent. Quarterly Summary Information Dollars in thousands, except per-share amounts For and As of the Quarters Ended Change Change 6302020 3312020 Operating Data: Total operating revenues12,638 15,280 2,642 17.3 Total operating expenses, net of credits6,454 8,083 1,629 20.2 Other expenses, net6,002 4,096 1,906 46.5 Net income182 3,101 2,919 94.1 Less: Aggregate dividends declared on Series B and Series C Preferred Stock2,262 2,125 137 6.4 Net loss income available to common stockholders and non-controlling OP Unitholders2,080 976 3,056 NA Plus: Real estate and intangible depreciation and amortization3,843 4,257 414 9.7 Plus: Losses on dispositions of real estate assets, net567 99 468 472.7 Adjustments for unconsolidated entities14 4 FFO available to common stockholders and non-controlling OP Unitholders2,334 5,336 3,002 56. 