Good morning and welcome to the Gladstone Land Corporation year ended December 31, 2012 shareholders conference call. All participants will be in a listen-only mode. (Operator Instructions). After today's presentation, there will be an opportunity to ask questions. (Operator Instructions). Please note this event is being recorded. I would now like to turn the conference over to David Gladstone. Please go ahead.

Thank you, Emily for that nice introduction and welcome to the first conference call for Gladstone Land. We’re here to discuss the company which completed its IPO in January and then filed its initial Form K with the SEC yesterday. Thanks to all of you for calling in today. We always enjoy the time with shareholders and I wish there were more of these phone calls so we could explain things as we go along. Please if you’re in the Washington D.C area, we’re located in a suburb called McLean, Virginia. You have an open invitation to stop by and see us if you’re in that area. We’re here close to 60 members of the team now and we no longer are small and we also have a couple of puppy dogs that come into the office every day. Now let me read the forward-looking statements. This report that we’re about to give may include statements that may constitute forward-looking statements within the meaning of the Securities Act of 1933, Securities Exchange Act of 1934, including with regard to future performance of the company. These forward-looking statements may involve certain risks and uncertainties that are based on our current plan we believe that plan to be reasonable. There are many factors that may cause our actual results to be materially different from any future results expressed or implied in these forward-looking statements, including all those factors listed under the Cash and Risk Factors in our Company’s 10-K filing that was filed with the Securities Exchange Commission and this 10-K can be found on our website at www.gladstoneland.com and on the SEC website. The Company undertakes no obligation to publicly update or revise any of the forward-looking statements, whether as a result of new information, future events or otherwise. In our…

Thanks David. Good morning and welcome to our first earnings call. I’m going to start by discussing our intention elect REIT status that David touched on earlier and also our status as an emerging growth company. As discussed previously, we intend to be packed as a Real Estate Investment Trust or REIT under the Federal tax laws beginning with our tax full year ending this year December 31, 2013. The company must study our accumulated our non-REIT earnings and profits by December 31 of the year for which refers to elect REIT status. It is possible that our monthly distributions may not sufficiently satisfy this requirement by December 31, 2013, in which case we will likely not elect to be taxed as a REIT until the tax full year ending this year December 31, 2014. The board will be looking at the alternatives we have to obtain our first earnings and profit. In the event that our monthly distributions are insufficient to result in distribution of our accumulated earnings and profits prior to the end of 2014, we will make a special distribution under such undistributed non-REIT earnings and profits prior to the end of that year. We however currently anticipate being able to reach REIT status this year. However, we will continue to monitor throughout the year to ensure we will comply with the requirements. As long as we do qualify as a REIT, we generally will not be subject to U.S federal income tax as we distribute at least 90% of our taxable income to our stockholders. As of December 31, 2012 we estimate that our non-REIT accumulated earnings and profits were approximately $9.1 million. This does include a $4 million gain associated with the deferred and our company gain resulting from past land transfers that will be…

All right, thank you very much and that was a good report. We encourage all the listeners to read our press release and the annual report that was filed yesterday with the SEC, that’s Form 10-K. We will be publishing an annual report that will just be the 10-K with a wrapper on it. A lot of good material in there. As you know the government and the accounting profession requires to put a lot of things in there that don’t get transmitted so well and especially in one of these calls. You can find all these on our website at www.gladstoneland.com and obviously on the SEC website. To stay up to date, we hope all of you will get involved in Gladstone Land and our other public companies. You can follow us on Twitter under @GladstoneComps and also on Facebook under the keyword The Gladstone Companies. You can go to our general website and see more information under www.gladstone.com to get an overview of what we’re all about. I think the main report here today is to tell you we’ve built up a nice pipeline of potential properties that we’re interested in. we’re working on the acquisitions now. Because of the pipeline, we hope to be able to grow the asset portfolio a lot during 2013. I think we’ll use up all the ideal money plus some pretty good amount of leverage as well. With the increase in the portfolio of properties comes greater diversification. So that’s good for everybody and we expect earnings to go up as well. Please know that we can’t guarantee any projections and we don’t set out any proposal of what they might be because each transaction causes such a change in projections. It would be hard for us to say how many we’re…

(Operator Instructions). And our first question will come from Ryan Connors of Janney Montgomery Scott. Please go ahead.

Good morning and congratulations on reaching this milestone in the company’s evolution. I had a question in regards to the size of individual deals, David and obviously the IPO and the MetLife line of credit significantly in hand increased the capitalization of the company. So my question is do you think you’ll be doing larger deals going forward or do you think you’ll be doing small deals similar in size to what you’ve done in the past? And in either of those scenarios, what kind of challenges does that create from a professional resource standpoint, both due diligence and closing?

There’s two small deals that are excellent properties near areas that we want to be in and we’ll be looking at those hard, but not doing as many small deals unless we think they’re right in our sweet spot. There’s also small deals that are right beside other farmers that we know or even ones that are renting our current land which did into their growth projections and those we will jump on right away. So the smaller deals, yes we’ll continue to do those as we have in the past. The larger deals are much more harder to project. I think when you get around $10 million or $12 million per farm, then you begin to get into a larger area. And those we will do in a heartbeat now because that’s more or less our sweet spot of trying to do $8, $10, $12 million transactions. The harder ones for us will be some of the larger farms that come up, like our Oxnard property which today is worth, I don’t know, $45, $50 million and I’m not sure we’d be able to take that on today. So, that may be a limiting factor today of trying to do very large transactions. However, if it meets all of the criteria, we’re going to work hard to try to figure out a way to do that because MetLife has in the past and I’m assuming will in the future, lend us $2 for every $1 we want to spend. So if we had a, I don’t know, a $60 million transaction we’d have to come up with $10 million in equity and borrow the rest. So if it was a really outstanding situation we’d probably go for it. And anyway I think we’re going to run through all this money this year anyway and have a secondary and that secondary will build us up to a size that would take us into a larger category. I don’t think in the near term and that means the next two or three years, get into the mega deals that are going on. We’re seeing some very large transactions, not so much in California or Florida, but in the Midwest you see very large transactions of $50 to $100 million and even larger than that. We saw a $45 million one just the other day that was quite large and then there’s some big ones coming up and these tend to go to auction and you tend to see the large pension funds and insurance companies doing those transactions. So we’re not in that category. We don’t compete with them on that area.

And then the first year acquisition you talked about seven letters outstanding and so forth. Are any or all of those utilizing the partnership units or potentially doing so? Or are those funded?

No, we haven’t and I will mention that on every conference call and certainly a transaction we do. We don’t have any of those working today. It’s just too early in the process. We’ve had some inquiries, but if you remember a company called Capital Automotive REIT, I was on the board of that and we didn’t get started in that until it was much larger and much more established in the marketplace. I think you’d have a hard time today in this early part of convincing anyone other than very small farmer to have to put all of his money or her money into our company in exchange for shares. But I don’t -- we’re working that marketplace. It’s just a little early to expect a lot of transactions since we just had the IPO in January.

And then one more for me before I step out. How often do you intend to have your properties, both your existing properties and any acquired properties, appraised or reappraised? And what’s the catalyst for doing that?

Well, there’s a lot of ways of doing appraisals. As you know the formal appraisal which we referenced in our IPO documents, those are 20, 40, 60 pages, lots of information in there. They’re expensive and so as a result you’d probably do those only about every three years. There is the ability to go to some of the appraisers and ask them for what we always refer to as a depth appraisal, meaning that they have all the information, current information about what the farms are selling for and as well as what they’re renting for and they can give you an approximate amount or a guess what they think it would be if they did a full-blown appraisal. Some appraisers they won’t do that. And then there is our own knowledge. For example if we have a farm and it’s then rented for $3,000 an acre and it’s now come up for rent and it’s now $4,000 an acre and we have that signed lease, we’re pretty proficient at evaluating things ourselves. Now, if we use any one of those three in calculating the value of a farm and if we use that in disclosure to the public, we would mention what mythology we used and that would be part of our disclosure, just as we do in our business development companies which we have to do every quarter. We’re planning on trying to do this frequently, centrally no less than annually and quite frankly right now we’re working with accountants and lawyers to see how we disclose this since Real Estate Investment Companies typically don’t do this. We made it through last time. That is in our prospectus because we had full blown appraisals. Now the questions to the lawyers and accountants is, can we disclose other…

Next question is come from Dan Donlan of Ladenburg Thalmann. Please go ahead.

Ryan asked some good questions. I don’t have too much for me. But on a going forward basis, how do you think about your dividend to AFFO? I know you said that you thought you could probably pay out all your earnings this year. But is that a met -- have you thought about that given the high renewals that you guys have seen in years past? You think you can keep that in the high 90s or what’s your viewpoint there?

The difficulty in this company as opposed to, as you know we have another company called Gladstone Commercial and it’s commercial and industrial buildings and they have very substantial deprecation. So you have a lot of room for discretion about your dividend here. We don’t have that much in the way of depreciation. So we’re not sheltering earnings. So what comes to us in a rent is not sheltered to a great degree. And so as a result we have to pay out 90% of that number anyway. So we’re pretty close to probably always having to pay 805, 85% in order to continue to be a Real Estate Investment Trust. And what I mean is of earnings and not FFO. FFO is adding back depreciation, but that’s not going to be a big add back here because as you know we only have two coolers and one box barn and we may pick up a few more as time goes on. But that’s going to be very little shelter on those rent payments that are fairly large compared to the buildings. In the commercial world of course the rent is paid primarily for the building and not for the land. Here it’s just the reverse. The rent is being paid for the land and not so much for the buildings. So we’re not going to have this much opportunity to adjust our payout in this company as we do in our other company as well as other REITS. So it will be a more difficult decision for us to try to be too close to that 90% payout because if you flunk that it’s not fun in the REIT business.

And then as far as like mortgage debt, what are you seeing rates and how do you feel about that over the next two to three years? Do you feel like you want to be more aggressive on the acquisition side so you can lock in low rates? Or how do you feel there?

Well, being aggressive is just not in our DNA. We are not going to go out and I saw a commercial an industrial property buyer buying leases that were short term in difficult marketplaces just to get assets on the books. We aren’t going to do that. We’re going to be relatively conservative compared to some people in the business. So we’ll not reach out just because it’s cheap debt. Buying a bad property with cheap debt is really a recipe for disaster. So we’ll stick to our knitting. We know what we’re doing and I don’t expect rates to go up in the next couple of years. So we’re probably safe for a while. And we have opened negotiations with two additional lenders and we have a third that we’ve just begun to talk to. So we’ll have four potential lenders to discuss. And as mentioned by Danielle, in January of 2014 we have the ability to pay off our currant mortgages and everything that we have and refinance all of them should we desire to do that. I’m expecting the existing lender to sit down with us once we get a little further along here and negotiate a better deal for us in terms of flexibility and in terms of relationships. And also to open it up so that they’re not the exclusive lender and just like we do in our commercial and industrial business we’ll be able to bid out certain bonds in certain locations to different lenders. All lenders have a different way of lending to all of the different categories of land out there. And so we want to be able to take advantage of all of that. So that will be the first thing that we discuss with our friends and they’re wonderful lenders. We enjoy working with them. They’ve been extremely easy to work with. So we don’t want to lose that relationship, but at the same time we need to diversify our lending ability just like everybody else in order to use diversification as a way to be conservative manager of our business.

And do you think being a public company is going to help you out in that regard? Do lenders come up to see that?

They love it. I remember talking to -- I’ll just mention the name, the Rabobank people we used to be with them and then MetLife came along and did a better deal, but I was talking to the MetLife people and they absolutely love it because they have a 10-K and a 10-Q. they don’t have to ask for much information. We can give them copies of the leases and they’re 99% there once they’ve got all that information. When they’re lending to farmers or even some of the smaller corporate farmers, extracting information is much more difficult, but here they just pick up the 10-Q, 10-K and they know what’s going on with all of our situations. So it’s much easier for us and I think we get a better rate because they do see everything and they know that we can’t hide anything because we have to put everything in our 10-Ks and 10-Qs. So I think we’re better off being a public company than we would be a private company in the current scheme of things.

And then last question for me and I know you have a couple of leases coming up. How are you thinking about rental rates? Do you feel like the current rate being paid by your tenants is below market? I know I’ve looked at the (inaudible) farming index. I think it was up about 18.6% in 2012 and a lot of that came in the fourth quarter. I think 9.6%. so does that give you a little bit of leverage to bump up the rent this year?

It does. Quite frankly and I don’t want to be too specific, but we’re negotiating one right now in which the appraiser they used last time to show us some market rates is the appraiser we used this time to show them the change in market rates. So we got an advantage there. But every one of these farmers knows what other farmers are paying. They all get together. I can tell you if I’m in Watsonville I sit down in one restaurant in which most of the farmers come to it 5:00 in the morning and they sit around there and they talk and they talk about what Joe is paying in rent and what so and so is doing. And so it’s a fairly -- these small farming communities are pretty much open, much more open than you would expect today in terms of what’s going on. The interesting thing about us being public is that we have to divulge when our leases are coming up and while in the private world there’s not that much information about when leases come up, generally people know. Right now we have people in one of our farms which is a spectacular farm, we have people just asking can they bid on it even though they know we’re partial to the existing tenants. They want to put a bid in and the bids that they’re talking about are extremely high. They’re even higher than the numbers that we’ve been using as possible renewal numbers. So it’s an interesting dynamic and as we’ve explained so many times in the prospectus and in the road show, the dwindling amount of farmland now that housing is picking back up again, there’s one other brokers that we like a lot and he’s a California broker and they’re fairly large. They’re all up and down the coast and they publish almost weekly a listing of a farm that has been zoned and is now going back to housing. So we’re seeing the absorption coming back of farmland going into housing and to other areas. I think is going to pick up pretty strong. If you believe there’s a housing boom coming back, then farmland will be diminishing at alarming rate as it has for the last 10 years.

(Operator Instructions). And having no further questions this will conclude our question-and-answer session. I’d like to turn the conference back over to Mr. Gladstone for any closing remarks.

Well, thank you so much for all of you attending. We appreciate the time we have and again we’ll try to answer questions if you have them by calling us. But generally speaking we try not to talk to anyone a couple of weeks before one of these calls because we don’t think anybody should have an advantage and regulation FD is pretty rugged. So again thank you all for attending the meeting and we’ll see you soon in the first quarter ending March 31 when we do that call sometime late April, early May. Thanks again. Bye.

The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.