EFTA01384966.pdf

10 Represents fixed. base and participating rent actually received through December 3L 2014 and does not include certain rent to be paid under participating leases that has not yet been recognized, particularly for our mature pentement crop farms. which tend to generate the majority of their rent through participation. Such rent is typically paid in the fourth quarter of each year or over the fir➢ and second quarter of the following was Represents fixed. base and participating rent actually received during the quarter ended June 30. 2015 and includes certain rent paid under participating leases for 3114 that was not recognized until the first and second quarters of 2015. Does not include certain rent to be paid under Nrricipating leases that has not yet been recognized, Nairn'ally for our mature permanent crop rants, which tend to generate the majority of their rent through participation. Such rent is typically paid in the fourth quarter of each year or over the first and second quarter of the following year. le) On December 9. 3314, we acquired a second farm that is adjutant to and will be aggregated with Kimberly Vineyard. This property consists of 175 pow acres, with 164 tillable acres. Thin property was acquired for • purchase price of approximareN $9.8 million. Starting with the 2015 crop season, the second acquisition property is leased to the same tenant, through a different corporate entity. who leases the initial Kimberly Vineyard and is also structured as a participating lease with a base rent. Because the property consists of two parcels purchased at different times. the parcels have two separate learns. Ibtal 0,St for second parcel of Kimberly Vineyard acquired on December 9. 2014 and for Ftticon Farms acquired on November II. 1014 includes laud cost and preliminary closing costs. 'cm Subject to a flexible lease. including a base rent component and a flexible component based on percentage of groat revenues for the initial Kimberly Vineyard purchase and base rent for the second Kimberly Vineyard purchase from December 9. 2014. 191 Property has been subject to a crop share lease based oa gross revenues and starting with the 2015 crop season, is now subject to a flexible lease with base and participating components. On August IS, 2015, we acquired a second (arm that has been aggregated with Golden Eagle. This property COWL«, of 135 grow acres, with 130 tillable acres. The property has been included in the current lease. Since the property was nor owned during the period presented, contractual rent is not stated. kit.? 77 acres of our Quail Run Vineyard property are now under development. which has temporarily impacted the valuation of this property. Otr Lease provides for oanual rent with (il a fixed component per acre per year and (il subject to certain conditions, a flexible rent competent based on gross revenue per acre. Additionally. one block consisting of 32.6 gross acres. with 30.4 tillable acres is under a fixed lease for the 3315 crop season due in quarterly installments on December 1. March I. June I and September I of the 2115 crop year. After 3115. this block will be governed by the above-mentkned lease on those same terms. Lease excludes approximately 77 acres under development. QM Oa November 14. 2014. we acquired two aggregated parcels in Georgia and Alabama. which consists of approximately 1340 gross acres with 1.105 tillable acres. for a purchase peke of approximately SS Slims Starting with the 2013 crop season. the properly is under a flexible lease with base and participating components the latter portion of which for the 2015 harvest will be majority recognized in 2016. (Ill On August 21, 2015. we acquired Kiagfaher Rands This property consists of ISY gross acres and 511 tillable acres of pistachios. Since the property was net owned during the period presented. contractual rent is ant stated. fere Subject to a fixed lease with an annual escalator. fen Subject to a fixed lease. Market value excludes approamately 52.0 million in disposition proceeds and damages received from an eminent domain condemnation of approximately 79 acres. tot All of our development farms are being developed to permanent crops with the etttprion of Blue Cypress Farm which is being developed from a permanent orchard to rpecialtyNescrable row crops. Ina Property is under development and not currently leased with respect to Pintail Vineyard. in the first quarter of 3315. there was an accounting adjustment of (51.922) relating to a slight tenant overpayment on a lease that terminated in »14 prior to the property being placed under development. ra w 56 acres of mature plantings are governed by a flexible lease with a base rent component payable at the beginning of each quarter and a percentage component payable after harvest. The remainder of the property is subject to development and not ~molly leased. daa The majority of the properly is currently under development mid k not leased. We received $268,4541 of direct operations revenue for the mature acres of the property in 2014 and 5147.260 through the second quarter of 3115. 'Ile lease on thaw! Island Groves expired in 2(114 and was mit renewed or re•kased as the property was placed in development. Tatal development capital expenditures from inception through June 30. 2015 were $22.2 million and total costs of the acquisitions of the second parcel of Golden Eagle Ranch and Kingfisher Ranch includes land costs and preliminary closing costs Represents expiring amoractual rent. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0085689 CONFIDENTIAL SDNY_GM_00231873 EFTA01384966