Good day, ladies and gentlemen, and welcome to the Gladstone Land Corporation's Fourth Quarter and Year Ended December 31, 2014 Earnings Call and Webcast. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, today’s conference call is being recorded. I would now like to turn the conference over to Mr. David Gladstone. Sir, you may begin.

All right. Thank you, Candice that was a nice introduction. And welcome all of you to the conference call for Gladstone Land as stated Gladstone. I appreciate you calling in. We love to have these meetings and wish we could do it once a month, but we only do it once a quarter. So you have an open invitation that if you are in the Washington DC area to come by and say, hello. We are in a suburban area called McLean, Virginia and you have an open invitation to stop by and see us here, you will see some great team members at work and it’s about 60 people here now we no longer are small, we’re managing about 1.7 billion in assets and we’ll begin with Michael LiCalsi, our General Counsel and Secretary who also serves as President of the Administrator. Michael?

Good morning, everyone. This report you are about to hear may include forward-looking statements within the Securities Act of 1933, the Securities Exchange Act of 1934, including statements with regard to the company’s future performance. These forward-looking statements involve certain risks and uncertainties that are based on our current plan, which we believe to be reasonable. And there are many factors that may cause our actual results to be materially different from any future results expressed or implied by these forward-looking statements, including all of the items listed under the caption Risk Factors in our Forms 10-K and 10-Q that we filed with the SEC. And these can be found on our website www.gladstoneland.com and on the SEC's website at www.sec.gov. The Company undertakes no obligation to publicly update or revise any of these forward-looking statements or whether as a result of new information, future events or otherwise except as required by law. And in our report today as a Real Estate Investment Trust or REIT, we plan to discuss funds from operations or FFO. FFO is a non-GAAP accounting term defined as net income, excluding the gains or losses from the sale of real estate and any impairment losses, plus depreciation and amortization of real estate assets. And The National Association of REITs or NAREIT has endorsed FFO as one of the non-GAAP standards that we can use in discussion of REITs. And please review our Form 10-K filed yesterday with the SEC for more detailed description of FFO. And the report from our President and CFO, that you are about to hear is an overview of our operations and performance. And we encourage all listeners to read yesterday's press release and the annual report on Form 10-K filed with the SEC yesterday, which includes a wealth of information for our investors. You can find them all at our website, www.gladstoneland.com and the SEC's website www.sec.gov. To stay up-to-date on the latest news involving Gladstone Land and our other publicly traded funds, please follow us on Twitter, username GladstoneComps; and on Facebook, keyword is The Gladstone Companies. And you can go to our general website to see more information about this Company and our other affiliated publicly traded funds as well at www.gladstone.com. Now, I will turn the presentation back over to David Gladstone.

All right, Michael. We had a strong quarter to close up the first full year as a public company, but before getting to that result, I’ll just briefly do an overview of the nature of our business. The business consists solely of owning farmland and leasing it to independent and corporate farmers. We don’t own the land ourselves just the farmers that we lease it to and thus we are not taking on a direct farming risk. Most of the farms we own are concentrated in locations where farms are able to grow high value annual row crops such as berries and vegetables so we’re in the produce side and if you think about us we are in the produce section of your grocery store and it’s where those products go. There is some media coverage in the past few months about declining values of Midwest farmland that is growing corn and other grain power [ph] this, that sector is not hard of our primary focus, the geographic regions were in our food and vegetables farms are located, have continued to experience steady appreciation in both underlying value and the value of the rents charged on the land. We currently own 8,370 acres across 33 farms, 15 are in California, 9 in Florida, 4 in Michigan, 4 in Oregon and one in Arizona. We also own three cooling facility that are on some of these farms and some other structures that are really credible to the farming operation. However, investors should expect the bulk of our assets to be in the farmland itself and that are leased to farmers to grow food. Generally we intend to enter into leases that are three to seven years. However, when we lease properties that grow longer-term crops such as blueberries, which might last…

Thank you, David and good morning everybody. As you all know we officially became a REIT during the third quarter and we made was should be our final tax payment during Q4. All 2014 taxes were state taxes only to California and beginning with the first quarter of 2015 we do not expect to incur any further income taxes. And now discuss the financial results beginning with our portfolio and the balance sheet. We acquired three new farms during the quarter and one farm subsequent to year end adding about $48 million of new assets to our books that will provide us with $2.3 million of additional cash revenue per year. The initial cap rate on these acquisitions in aggregate is 4.2% however with all the leases we assumed on this deals expiring within three years from now and as certain of these farms are placed in the tax savings contract we expect the cap rates on these builds to be over 5% within the next couple of years. We didn’t have any lease renewals during the quarer; however we just recently renewed a lease on one property we acquired during 2014 that was scheduled to expire in 2016. The new leases for six years that will provide for an increase in annualized GAAP revenues of over 21% compared to that as a lease we assumed at acquisition. We are continuing to diversify our portfolio of properties and the tenants on our farms. Over the past year, we have increased our tenant base from 16 different growers to 30 today all of which are unrelated to us. A year ago, over 66% of our annual revenue came from one single tenant, whereas today that number is down to just 30%. And while the majority of funds and real operations remain…

Okay. Lewis. Good report. I think the main point of this report is to tell you we are executing our plan as we’ve told you reduce and so IPO will use the proceeds and invested the proceeds from IPO and follow-on. We have availability to-date to continue acquiring more farms through the summer. We are currently looking at different ways to access the capital marketplace and continue our growth in a very nice list of potential properties and we’re interested in acquiring. And with the increase in the portfolio of the farms comes much greater diversification than we had at the beginning and protection is there for investors from that diversification. And we also expect some very good earnings as evidenced by the recent increase in our monthly distribution. We anticipate that many of the farms we purchase will be acquired from farmers or agricultural companies and if they or other farmers will simultaneously lease those farms from us. That’s been the normal course of business since we started. We also expect that many farms we acquire will be purchased from farm owners that don’t want to farm the property any more, but rather lease the property to a farmer. So about 38% of the farms in the U.S. are owned by individuals, but not farmed by the owner and they rent the land to different farmers. In that situation, we intend to put our own lease in place soon after buying the property or simultaneously with acquiring the farm and that always helps us in the long term. And a couple of points to make, people often ask us about the drought in California and its affect on the water availability for our farms. There is a drought in parts of the states but all of the farms that…

[Operator Instructions] And our first question comes from the line of John Roberts of Hilliard Lyons. Your line is now open.

Hi, David.

Hi, John.

First question, I had the same issue here that I had with the commercial and that you provided in your press release sort of agleam – you didn’t breakout the line items in the income statement. Is there -- were restatements in earlier quarters that will make it so that if I subtract the first three quarters in the fourth, it won’t line up?

No. There is no restatement, if you would take the numbers into 10-K and subtract out the year-to-date numbers from the 930, 10-Q it should give you the Q4 numbers.

Right.

Why we do this John. We’ll do what we do what we did in commercial as we will put those in our Q&A section on the website and that where you and everybody else can pick them up.

Super. Appreciate that David. How is the pipeline looking?

Well, I think it’s very strong, but I would warn you that deals fallout sometimes. We can get pretty far along and we are pretty far along when couple of them, I think they’re going to close. I don’t what we’ll do this quarter. It should be okay. I think the first six months are going to be strong, but it’s always up in the year. When you’re this small and every closing has a big impact. It’s really hard to forecast earnings and dividends. But my guess is this year we should be able to increase the dividend again and earnings should go up, because we close more deals.

And how is the Midwest? Do you any deals pending there, looking like you’re coming with some?

We do, we have a couple. We have a very large potato farm that we’re looking at in Colorado. We’re looking at some interesting farms in Ohio where we’re working with one of the large farmers out there. It’s very early. The fellow who we hired out there used to work for U.S. bank and he is to buy farms for individuals who wanted to own the farms and have the company, I’m sorry U.S. Trust. And U.S. Trust will help individuals that they manage their money to buy farms. So he is to do that. And he struck out on his own and we convinced them to be part of our teams. So it’s little early for us to judge him or judge what we’re going find out there. He has been talking with some green bean guys. They grow green beans for [indiscernible] or Libya to get rich and that’s an interesting business as well. So we’re looking at some produce that wouldn’t go in to the produce department. It would go into canning. So we’re looking at little different mix of things that might happen there.

Super. And finally, Lewis mentioned, you got about $30 million in capacity. Any thoughts on what you do once you hit that number, because you got to be – it’s got a few farms really going to go through that in the first quarter to second quarter?

We’re looking at a number of different subordinated debt, I guess, you could call more like preferred stock something in that areas that we might place. We have thought about doing an underwriting, but I don’t want to do a large one, because I don’t like the dilution, at the price there we’re in.

Yes. I wouldn’t assume you’d want to sell stock at these prices?

Yes. It’s a tough thing. Do you want to grow or do you want to sit and so we’ve got to figure out a way to continue to get the equity money. We’ve got the debt money in place. So that’s no problem anymore. The question is, how do we fund the debt side? Do we fund it with small loans or do we fund it with preferred stock or do we fund it with preferred stock. We have not determined that yet.

Right. Well, thanks David.

Okay. Next question.

Thank you. [Operator Instructions]. And our next question comes from the line of [indiscernible]. Your line is now open.

Good morning. Following on the previous question about debt and funding, do you have a figure in mind that you consider the maximum amount of debt with which you’re comfortable debt as a percent of the capitalization?

Yes. We talked about this a few times, and generally it’s about 60%. In the early stages of your growth, it’s almost require that you take on a little bit more debt over time that should drop under 50% as we get bigger and are able to get long term debt.

Right. I think I heard you say, you’re looking at way and answer to the previous question, when you’re looking at ways to fund debt, I don’t understand that is debt, I don’t understand what you meant by funding debt if I heard it correctly.

Yes. Some of the lenders that lend to us, it won’t lend 60% against the value of the property, so what we would have to do to supplement that is get short term debt from some other source like MetLife. So that’s what I meant by that is that you’re – so I didn’t explain in it more detail.

Good. Thank you very much.

Okay. Next question.

[Operator Instructions] And our next question comes from the line of [indiscernible] of Oppenheimer. Your line is now open.

Hi. Good morning. My question pertains to how large do you see the pipeline going forward, and do you see cap rates compressing or do you see them static at this point?

It’s hard to know about cap rate other than in the area that we’ve been in caps rates have been in the 4.5 to 5.5 range sometimes its 6 range for just ever in a day. I go back to 1997 when I bought the first farm and have been studying in the marketplace in California and Florida more extensively. I’m not as knowledgeable as our Midwest person is on what goes on in the Midwest, but we generally agree that those are the ranges in terms of cap rates. It’s really hard to know about – I wish I could predict how much we’re going to close. I do know we look at a lot of thing. Sometimes the cap rate is just too low and the farmer or the person who owns the farm is trying to sell something at a very high price. We fund back East [ph] and places like Delmarva, which is Delaware, Maryland, Virginia area, prices are ridiculous there set for a equestrian or folks who are gentlemen farmers and don’t really care about making money. So we find it hard to compete in places like that. But if you’re looking at North Carolina or New Jersey you can usually find farms that are reasonably priced. We are looking at one very close in Georgia right now. So, sometimes the backlog falls down and if you think about a backlog it’s like a hug funnel. At the top of the funnel you have all of the things coming in and we have many, many farms that are in that level than as you begin to eliminate them. They fall into the mid section where you’re doing some of your due-diligence and you either find that you’re like what you see or you don’t like…

Thank you. And I’m showing no further questions. At this time I’d like to turn the conference back over to Mr. Gladstone for any further remarks.

Okay. Well, we appreciate all of you calling in. And if you do have questions you can always email and we’ll try to answer them over email and sometimes we deal with some of the analyst over the phone, but mostly its email back in forth. And some of the questions are fairly detailed and as a result we put those details in our question and answer section. So that anybody doing due diligence on our company can find out that information that we’ve given out, that might be different from what we’ve or not answered in one of these question and answer session. So that’s the end of this. And we thank you all for calling in and we’ll see you next quarter.

Ladies and gentlemen, thank you for participating in today’s conference. This does conclude today’s program. You may all disconnect. Have a great day everyone.