Note 5—Real Estate

As of June 30, 2016, the Company owned 263 separate farms, as well as 13 grain storage facilities.

During the six months ended June 30, 2016, the Company acquired the following farms:


(in thousands except acres)			Total
		Date	approximate	Purchase		Acquisition
Acquisition / Farm	State	acquired	acres	price		costs		Type of acquisition

Knowles	Georgia	1/12/2016	608	$	1,202	$	2	Asset Acquisition
Borden	Michigan	1/21/2016	265		1,630		—	Business Combination
Reinart Farm	Texas	1/27/2016	2,056		6,117		1	Asset Acquisition
Chenoweth	Illinois	2/26/2016	40		371		—	Asset Acquisition
Forsythe Farms (1)	Illinois	3/2/2016	22,128		197,145		1,321	Asset Acquisition
Knight	Georgia	3/11/2016	208		624		3	Asset Acquisition
Gurga	Illinois	3/24/2016	80		667		—	Asset Acquisition
Condrey	Louisiana	3/31/2016	7,400		31,764		14	Asset Acquisition
Buckelew	Mississippi	4/4/2016	624		2,307		—	Business Combination
Brett	Georgia	4/6/2016	213		577		2	Asset Acquisition
Powell	Georgia	4/6/2016	274		958		3	Asset Acquisition
Unruh	South Carolina	5/12/2016	330		1,528		3	Asset Acquisition
Early	Texas	5/17/2016	640		1,800		—	Business Combination
East Chenoweth	Illinois	6/27/2016	77		697		—	Business Combination
Missel	Colorado	6/29/2016	1,261		1,760		—	Business Combination
Durdan	Illinois	6/30/2016	203		1,905		—	Asset Acquisition
			36,407	$	251,052	$	1,349

(1)

This acquisition closed on March 2, 2016. The purchase price of the property was comprised of (a) $50.0 million in cash, (b) an aggregate of 2,608,695 OP units valued at $11.50 per OP unit and (c) 117,000 Preferred units. See “Note 9 – Stockholders’ Equity and Non-controlling Interests”.

During the six months ended June 30, 2015, the Company acquired the following farms:


(in thousands except acres)			Total
		Date	approximate	Purchase		Acquisition
Acquisition / Farm	State	acquired	acres	price		costs		Type of acquisition

Swarek	Mississippi	1/14/2015	850	$	3,512	$	6	Asset acquisition
Stonington Bass	Colorado	2/18/2015	997		2,080		1	Business combination
Benda Butler	Nebraska	2/24/2015	73		606		1	Asset acquisition
Benda Polk	Nebraska	2/24/2015	123		861		2	Asset acquisition
Timmerman (1)	Colorado	3/13/2015	315		2,026		—	Asset acquisition
Cypress Bay	South Carolina	3/13/2015	502		2,303		4	Asset acquisition
Nebraska Battle Creek Farms (2)	Nebraska	4/10/2015	1,117		9,023		20	Business combination
Northeast Nebraska Farms (3)	Nebraska	4/10/2015	1,160		8,981		20	Business combination
Drury	Colorado	4/10/2015	160		950		—	Business combination
Sutter	Colorado	4/17/2015	322		2,000		—	Asset acquisition
Bobcat	Arkansas	4/30/2015	934		3,025		12	Business combination
Swindoll Darby	Mississippi	5/14/2015	359		1,468		2	Asset acquisition
Abraham	Illinois	5/29/2015	110		762		2	Asset acquisition
Justice Farms (4)	(5)	6/2/2015	14,935		80,913		199	Asset acquisition
Tomasek (6)	Illinois	6/30/2015	58		690		2	Business combination
			22,015	$	119,200	$	271

(1)

On March 13, 2015, the Company issued 63,581 shares of common stock (with a fair value of $712,743 as of the date of closing) as partial consideration for the acquisition of the Timmerman farm.

(2)

On April 10, 2015, the Company issued 118,634 OP units (with a fair value of $1,372,595 as of the date of closing) as partial consideration for the acquisition of the Nebraska Battle Creek Farms.

(3)

On April 10, 2015, the Company issued 119,953 OP units (with a fair value of $1,387,856 as of the date of closing) as partial consideration for the acquisition of the Northeast Nebraska Farms.

(4)

On June 2, 2015, the Company issued 824,398 shares of common stock and 1,993,709 OP units (with an aggregate fair value of $30,914,634 as of the date of closing) as partial consideration for the acquisition of the Justice Farms.

(5)

The Justice Farms are located in Beaufort, Currituck, Pamlico, Pasquotank and Perquimans Counties, NC; Malboro County, SC; and Chesapeake, VA.

(6)

On June 30, 2015, the Company acquired the Tomasek property from Mr. Pittman. The purchase price of the property approximated fair value. In conjunction with the acquisition, the Company assumed a two-year lease with Astoria Farms with annual rents of $18,749.

The preliminary allocation of purchase price for the farms acquired during the six months ended June 30, 2016 are as follows:


(in thousands)	Land		Groundwater		Irrigation improvements		Permanent plantings & other		Timber		Accounts receivable		Below market lease		Accrued property taxes		Total

Knowles	$	795	$	—	$	65	$	—	$	342	$	—	$	—	$	—	$	1,202
Borden		779		—		88		763		—		—		—		—		1,630
Reinart Farm		4,188		1,434		495		—		—		—		—		—		6,117
Chenoweth		371		—		—		—		—		—		—		—		371
Forsythe Farms		195,590		—		1,277		357		—		—		—		(79)		197,145
Knight		482		—		142		—		—		—		—		—		624
Gurga		667		—		—		—		—		—		—		—		667
Condrey		30,584		—		557		623		—		—		—		—		31,764
Buckelew		2,321		—		15		—		—		—		(29)		—		2,307
Brett		469		—		108		—		—		—		—		—		577
Powell		756		—		202		—		—		—		—		—		958
Unruh		1,303		—		225		—		—		—		—		—		1,528
Early		925		634		241		—		—		—		—		—		1,800
East Chenoweth		667		—		30		—		—		—		—		—		697
Missel		1,760		—		—		—		—		—		—		—		1,760
Durdan		1,905		—		—		—		—		—		—		—		1,905
	$	243,562	$	2,068	$	3,445	$	1,743	$	342	$	—	$	(29)	$	(79)	$	251,052

The allocation of the purchase price for the farms acquired during the six months ended June 30, 2016 is preliminary and may change during the measurement period if the Company obtains new information regarding the assets acquired or liabilities assumed at the acquisition date.

The allocation of purchase price for the farms acquired during the six months ended June 30, 2015 are as follows:


(in thousands)	Land		Groundwater		Irrigation improvements		Permanent plantings & other		Timber		Accounts Receivable		Below Market Lease		Accrued property taxes		Total

Swarek	$	3,471	$	—	$	41	$	—	$	—	$	—	$	—	$	—	$	3,512
Stonington Bass		1,995		—		80		5		—		—		—		—		2,080
Benda Butler		607		—		—		—		—		—		—		(1)		606
Benda Polk		862		—		—		—		—		—		—		(1)		861
Timmerman		1,365		626		37		—		—		—		—		(2)		2,026
Cypress Bay		1,959		—		276		68		—		—		—		—		2,303
Nebraska Battle Creek Farms		8,757		—		339		—		—		37		(89)		(21)		9,023
Northeast Nebraska Farms		8,872		—		236		—		—		30		(141)		(16)		8,981
Drury		809		107		34		—		—		—		—		—		950
Sutter		1,301		595		104		—		—		—		—		—		2,000
Bobcat		2,808		—		184		—		—		30		—		3		3,025
Swindoll Darby		1,436		—		33		—		—		—		—		(1)		1,468
Abraham		762		—		—		—		—		—		—		—		762
Justice Farms		80,758		—		96		38		32		—		—		(11)		80,913
Tomasek		681		—		—		—		—		9		—		—		690
	$	116,443	$	1,328	$	1,460	$	111	$	32		106		(230)	$	(50)	$	119,200

The Company has included the results of operations for the acquired real estate in the combined consolidated statements of operations from the dates of acquisition. The real estate acquired in business combinations during the six months ended June 30, 2016 contributed $106,976 to total revenue and $67,444 to net loss (including related real estate acquisition and due diligence costs of $7,735) for the six months ended June 30, 2016. The real estate acquired during the six months ended June 30, 2015 contributed $238,177 to total revenue and $136,477 to net loss (including related real estate acquisition costs of $55,014) for the six months ended June 30, 2015.

During the six months ended June 30, 2016, the Company accounted for the acquisitions of each of the Borden, Buckelew, Early, Missel and East Chenoweth farms as a business combination. However, as historical results for the farms were not available the Company has not included unaudited pro forma financial information reflecting the pro forma results as if the farm had been acquired on January 1, 2015.

During the six months ended June 30, 2015, the Company accounted for the acquisitions of each of the Stonington Bass, Battle Creek, Northeast Nebraska, Drury, Bobcat and Tomasek farms as a business combination. However, as historical results for the farm were not available the Company has not included unaudited pro forma financial information reflecting the pro forma results as if the farm had been acquired on January 1, 2014.