Gladstone Land Corporation Amends and Restates Existing Advisory Agreement with Gladstone Management Corporation
January 16, 2020 at 03:02 am IST
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On January 14, 2020, Gladstone Land Corporation amended and restated its existing advisory agreement, as amended from time to time (the Agreement), with Gladstone Management Corporation(the Adviser), by entering into the Fourth Amended and Restated Investment Advisory Agreement between the Company and the Adviser (the Amended Agreement). The Company's entrance into the Amended Agreement was approved unanimously by its board of directors, including, specifically, its independent directors. The Amended Agreement revised and replaced the previous calculation of the Base Management Fee, which was based on Total Equity, with a calculation based on Gross Tangible Real Estate. The revised Base Management Fee will be payable quarterly in arrears and shall be calculated at an annual rate of 0.50% (0.125% per quarter) of the prior calendar quarter's Gross Tangible Real Estate, defined in the Amended Agreement as the gross cost of tangible real estate owned by the Company (including land and land improvements, irrigation and drainage systems, horticulture, farm-related facilities, and other tangible site improvements), prior to any accumulated depreciation, and as shown on the Company's balance sheet or the notes thereto for the applicable quarter. The calculation of the other fees in the Amended Agreement remain unchanged. The revised Base Management Fee calculation will begin with the fee calculations for the quarter ending March 31, 2020. All other terms of the Agreement remained the same.
Gladstone Land Corporation is a real estate investment trust that acquires and owns farmland and farm-related properties located in various agricultural markets in the United States. The Company owns around 168 farms, comprised of 112,000 acres in 15 different states and 46,400 acre-feet of water assets in California. Its farms are predominantly located in regions where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables. It also owns farms growing permanent crops, such as almonds, apples, cherries, figs, lemons, olives, pistachios, and other orchards, as well as blueberry groves and vineyards. Approximately 30% of the Company's fresh produce acreage is either organic or in transition to become organic, and over 20% of its permanent crop acreage falls into this category. The Company may also acquire property related to farming, such as cooling facilities and processing buildings, among others. Its adviser is Gladstone Management Corporation.
GLADSTONE LAND CORPORATION 
