Gladstone Land Corp (LAND) 2023 Q2 法說會逐字稿

Greetings and welcome to the Gladstone Land Corporation Second Quarter Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, David Gladstone, Chairman and Chief Executive Officer. Thank you, sir. You may begin.

您好，歡迎參加格拉德斯通土地公司第二季度收益電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向您介紹東道主、董事長兼首席執行官戴維·格拉德斯通 (David Gladstone)。謝謝你，先生。你可以開始了。

Okay. Thank you, Latania for that nice introduction. You have done it many times for us and we appreciate you effort. This is David Gladstone and welcome to the quarterly conference call for Gladstone Land. Thank you all for calling in today. We appreciate you taking the time out of your day to listen to our presentation. But before I begin, we have to hear from Michael LiCalsi, he's our General Counsel. So Michael.

好的。謝謝拉塔尼亞的精彩介紹。您已經為我們做過很多次了，我們感謝您的努力。我是大衛·格萊斯頓，歡迎參加格萊斯頓土地季度電話會議。感謝大家今天打來電話。我們感謝您抽出寶貴的時間來聆聽我們的演示。但在開始之前，我們必須聽取 Michael LiCalsi 的意見，他是我們的總法律顧問。所以邁克爾.

Thanks, David. Good morning, everybody. Today's report may include forward-looking statements under the Securities Act of 1933, Securities Exchange Act of 1934, including those regarding our future performance. And these forward-looking statements involve certain risks and uncertainties that are based on our current plans, which we believe to be reasonable and many factors may cause our actual results to be materially different from any future results expressed or implied by these forward-looking statements including all the risk factors listed in our Forms 10-Q, 10-K and other documents we filed with the SEC, find them on our website that's gladstoneland.com, specifically go to the Investors page or on the SEC's website, that's www.sec.gov.

謝謝，大衛。大家早上好。今天的報告可能包含根據 1933 年證券法和 1934 年證券交易法做出的前瞻性陳述，包括有關我們未來業績的陳述。這些前瞻性陳述涉及基於我們當前計劃的某些風險和不確定性，我們認為這些計劃是合理的，許多因素可能導致我們的實際結果與這些前瞻性陳述明示或暗示的任何未來結果存在重大差異包括我們向SEC 提交的10-Q、10-K 表格和其他文件中列出的所有風險因素，請在我們的網站gladstoneland.com 上找到它們，具體請訪問投資者頁面或SEC 網站www. SEC.政府。

Now we undertake no obligation to publicly update or revise any of these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Today, we will discuss FFO, which is funds from operations. 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 from property, plus depreciation and amortization of real estate assets.

現在，我們沒有義務公開更新或修改任何這些前瞻性陳述，無論是由於新信息、未來事件還是其他原因，除非法律要求。今天我們要討論的是FFO，即來自運營的資金。 FFO是一個非公認會計準則會計術語，定義為淨利潤，不包括房地產銷售的損益和任何財產減值損失，加上房地產資產的折舊和攤銷。

We may also discuss core FFO, which we generally define as FFO adjusted for certain nonrecurring revenues and expenses and adjusted FFO, which further adjusts core FFO for certain noncash items, such as converting GAAP rents to normalized cash rents. We believe these are better indications of our operating results and allow better comparability of our period-over-period performance.

我們還可以討論核心FFO，我們通常將其定義為針對某些非經常性收入和費用進行調整的FFO和調整後的FFO，後者進一步調整某些非現金項目的核心FFO，例如將GAAP租金轉換為標準化現金租金。我們相信這些可以更好地反映我們的經營業績，並使我們的同期業績具有更好的可比性。

Now we ask that you take the opportunity to visit our website, once again, that's gladstoneland.com, sign up for our e-mail notification service so you can stay up to date on the company. You can also find us on Facebook. Keyword there is -- the Gladstone Companies and Twitter, which is @gladstonecomps. Today's call is an overview of our results. So we ask that you review our press release and Form 10-Q, both issued yesterday for more detailed information.

現在，我們請您再次訪問我們的網站，即gladstoneland.com，註冊我們的電子郵件通知服務，以便您及時了解公司的最新情況。您還可以在 Facebook 上找到我們。關鍵字是——Gladstone Companies 和 Twitter，即@gladstonecomps。今天的電話會議是對我們結果的概述。因此，我們要求您查看我們昨天發布的新聞稿和表格 10-Q，以了解更多詳細信息。

Again, go to the Investors page of our website to find them. Now I'll turn the presentation back to David Gladstone.

再次，轉到我們網站的投資者頁面找到他們。現在我將把演講轉回大衛·格萊斯頓。

Okay. Thank you, Michael. I'll start with a brief overview of the farmland holdings that we have. We currently own about 116,000 acres. And it's at 69 different farms and we also have about 45,000 acre-feet of banked water. You remember that an acre-foot is equal to 326,000 gallons. So 45,000 acre-feet is a lot of water. We use that for irrigation times when there is not enough water found. And together -- if you looked at both of those together, we valued that at about $1.6 billion for both the land and the water. Our farms are in 15 different states and more importantly, in 29 different growing regions.

好的。謝謝你，邁克爾。我將首先簡要概述我們擁有的農田。我們目前擁有約 116,000 英畝土地。它分佈在 69 個不同的農場，我們還擁有約 45,000 英畝-英尺的儲存水。您還記得一英畝英尺等於 326,000 加侖。所以 45,000 英畝-英尺的水量很大。當沒有足夠的水時，我們用它來灌溉。如果將兩者放在一起，我們對土地和水的估值約為 16 億美元。我們的農場分佈在 15 個不同的州，更重要的是分佈在 29 個不同的種植區。

If we include the one farm that we currently operate ourselves, our farms are 100% occupied and at least to over 90 different tenant farmers, all of whom are unrelated to us. And the tenants on these farms are growing over 60 different crops -- types of crops, but mostly fruits and vegetables and nuts.

如果算上我們目前自己經營的一個農場，我們的農場已經 100% 被佔用，並且至少有 90 多個不同的佃農，他們都與我們無關。這些農場的租戶種植了 60 多種不同的農作物，但主要是水果、蔬菜和堅果。

So we are well diversified across these different farms. We had to remove one tenant during the first quarter, and we stepped in to temporarily operate the farm with the help of third-party management group. We've been in discussions with a new group of -- to lease this farm. And we had hoped to have it done by this time for this quarter, but we didn't quite get there. So we're finishing up now, and we'll get that done hopefully in the third quarter.

因此，我們在這些不同的農場中實現了多元化經營。第一季度我們不得不搬走一個租戶，我們在第三方管理團隊的幫助下介入暫時運營農場。我們一直在與一個新團體討論租賃這個農場的事宜。我們原本希望在本季度的這個時候完成這項工作，但我們並沒有完全實現這一目標。所以我們現在正在完成，我們希望在第三季度完成。

We are also exploring an option of direct farming this property ourselves, but leasing the property is our preferred approach in addition to slow paying tenants partly due to excess supply of their products in the markets that they're working in. Well, one of the tenants is making partial payments to us, but it sounds like they might decide to close up shop.

我們也在探索自己直接種植該地產的選擇，但租賃該地產是我們的首選方式，此外，租戶付款緩慢，部分原因是他們所在市場的產品供應過剩。嗯，其中之一租戶正在向我們支付部分款項，但聽起來他們可能會決定關門。

We have a couple of growers who we've been talking to and to lease this farm, so we'll likely sign a new lease with them soon. Collecting from the second tenant was more challenging and is still ongoing. We ended up terminating their lease and entering into a new short-term lease agreement with a new grower. So this will give us more time to figure out who we're going to end up leasing this farm to.

我們已經與幾位種植者進行了交談並租賃了這個農場，因此我們可能很快就會與他們簽訂新的租約。向第二個租戶收取費用更具挑戰性，並且仍在繼續。我們最終終止了他們的租賃，並與新種植者簽訂了新的短期租賃協議。因此，這將使我們有更多的時間來弄清楚我們最終要把這個農場租給誰。

The total year-over-year impact on our operations as a result of these issues was decrease in net operating income of about $318,000 for the second quarter and about $613,000 for the total year so far. As we mentioned in the past couple of calls, we continue to be more selective in the type of farms that we're looking for.

這些問題對我們運營的總體同比影響是第二季度淨營業收入減少約 318,000 美元，全年迄今為止淨營業收入減少約 613,000 美元。正如我們在過去幾次電話會議中提到的，我們繼續對我們正在尋找的農場類型更加挑剔。

Mostly, it's farmers. So we have to always get good farmers on these farms. And as a result, acquisition activity remains slow for us. With inflation still above the Fed's target rate, interest rates continuing to rise, and the risk of a recession is still possible, we believe it's a good time to be more conservative with our capital. Just another note before we move on. While we are helped by inflation in food prices in the grocery stores, we're hurt by interest rates as our cost of capital for buying farms.

大部分是農民。因此，我們必須始終在這些農場找到優秀的農民。因此，我們的收購活動仍然緩慢。由於通脹仍高於美聯儲目標利率，利率持續上升，經濟衰退風險仍有可能，我們認為現在是對資本採取更加保守態度的好時機。在我們繼續之前還有一個注意事項。雖然雜貨店食品價格的上漲對我們有所幫助，但我們購買農場的資本成本卻受到利率的傷害。

And the farm owners are not yet willing to reduce the price of their farms, so that values remain high -- too high for us. But overall, the existing farmland portfolio continues to perform pretty much as we expected, with the exception of the issues with those couple of tenants. Finally, we continue to be able to renew all expiring leases without incurring any downtime on any of our farms and renewals at mostly a higher rate with one exception that I'll talk about a little later.

而且農場主還不願意降低農場的價格，因此價值仍然很高——對我們來說太高了。但總體而言，除了這幾個租戶的問題外，現有農田組合的表現仍然與我們預期的基本一致。最後，我們繼續能夠續簽所有到期的租約，而不會導致我們的任何農場出現任何停機時間，並且續簽率大多較高，但有一個例外，我稍後會討論。

On the bright side, we sold a portion of one of our farms. During the quarter, this was a 138-acre parcel, unfarmed ground in Florida, so we recognized -- by selling that, we recognized a $6.4 million gain on the sale and realized a 343% return of our initial investment. By the way, we still own and lease the remainder of this farm, which is farmable. And since it was a nonfarmable ground, the sale won't reduce our rent on the rest of this farm.

好的一面是，我們出售了其中一個農場的一部分。本季度，這是佛羅里達州一塊 138 英畝的未耕地，因此我們認識到，通過出售該地塊，我們獲得了 640 萬美元的銷售收益，並實現了初始投資 343% 的回報。順便說一句，我們仍然擁有並租賃該農場的其餘部分，該農場可耕種。由於這是一塊不可耕種的土地，出售不會減少我們在該農場其餘部分的租金。

On the leasing front, since the beginning of the quarter, we renewed 13 leases on farms in 5 different states. In total, these renewals are expected to result in a decrease in the annual net operating income of about $469,000 from that of the prior leases. However, 4 of these leases were to replace the previous tenant on some of the blueberry farms in Michigan. We gave the new tenant on a lower rent in exchange for them, maintaining and bringing back the blueberry bushes that are there on the farm.

在租賃方面，自本季度初以來，我們續簽了 5 個不同州的 13 份農場租約。總的來說，這些續約預計將導致年度淨營業收入比之前的租賃減少約 469,000 美元。然而，其中 4 個租約旨在取代密歇根州一些藍莓農場的前租戶。我們以較低的租金給新租戶，以換取他們，維護並帶回農場裡的藍莓灌木叢。

So that hopefully will be in a better position to lease these farms to a long-term tenant later this year. Including the 4 Michigan leases nets to the one farmer, the remaining 9 leases are expected to result in an increase in annual net operating income of approximately $209,000 or 3% over that of the prior leases.

因此，希望今年晚些時候能夠更好地將這些農場出租給長期租戶。包括密歇根州向一名農民租賃的 4 個漁網在內，其餘 9 個租賃預計將導致年度淨營業收入增加約 209,000 美元，比之前的租賃增加 3%。

Looking ahead, we have 8 leases scheduled to expire over the next 6 months. And in total, that makes up about 5% of the total annualized lease. We're in discussion with current tenants on each of these farms regarding extensions as well as prospective new tenants. Well, we expect the rental rates on these renewals to be relatively the same as the current leases, but we aren't currently expecting any downtime to occur as the results on those upcoming expirations.

展望未來，我們有 8 個租約計劃在未來 6 個月內到期。總的來說，這約佔年化租賃總額的 5%。我們正在與每個農場的現有租戶以及潛在的新租戶討論擴建事宜。好吧，我們預計這些續租的租金率將與當前租約相對相同，但我們目前預計這些即將到期的結果不會出現任何停機時間。

There are a few other items I'd like to mention before we move on. Inflation is still continuing. It's slowing down some as an impact from the Fed's interest rate hikes, it now being felt throughout the economy. However, the latest headline inflation numbers of 3% still remain above the Fed's target level, which is 2%. And thus as this core inflation that they keep measuring and saying it's -- their levels are going to be subject to core inflation.

在我們繼續之前，我想提一下其他一些事項。通貨膨脹仍在持續。由於美聯儲加息的影響，經濟增速有所放緩，現在整個經濟都感受到了這種影響。然而，最新的整體通脹數據為 3%，仍高於美聯儲 2% 的目標水平。因此，隨著他們不斷衡量並聲稱的核心通脹——他們的水平將受到核心通脹的影響。

Food prices are showing signs of cooling down a little bit. but still continue to outpace inflation. Most of the crops grown on our farms are sold to grocery stores and thus fall into a category called food at home. This category was still up by 4.7% for the 12 months ending June 30. We believe food prices will continue to outpace inflation, which should help mitigate the increases in operating expenses that many of our farmers have been experiencing.

食品價格出現小幅回落跡象。但仍繼續超過通脹。我們農場種植的大部分農作物都賣給雜貨店，因此屬於家庭食品類別。截至 6 月 30 日的 12 個月中，該類別仍上漲 4.7%。我們認為食品價格將繼續超過通貨膨脹，這應有助於緩解我們許多農民所經歷的運營費用的增加。

I also want to mention some water-related projects we've been working on in California since we slowed things down on the acquisition front of farms. With 2023 being a wet year, as you probably read the headlines of California. They had a lot of rain. We have been working on various water improvement projects within key areas of our portfolio. We identified several projects to undertake that we believe will improve our portfolio's capability to comply with state groundwater restrictions.

我還想提一下自從我們放慢了農場收購速度以來，我們一直在加州開展的一些與水有關的項目。正如您可能讀到的加州頭條新聞一樣，2023 年將是多雨的一年。他們下了很多雨。我們一直致力於我們投資組合關鍵領域內的各種水改善項目。我們確定了幾個要開展的項目，我們相信這些項目將提高我們的投資組合遵守州地下水限制的能力。

And the state is becoming more interested in the water projects that we've talked about. With the goal of ensuring that we have enough long-term water supplies, our current crop demands on our farms. So we're in pretty good shape there. We've got a few more projects we want to look at. And by the way, our overall strategy within the state is to implement projects that will allow us to maximize the water supply opportunities in wet years like we had this year -- this past year.

國家對我們談到的水利項目越來越感興趣。為了確保我們有足夠的長期供水，我們農場目前的農作物需求。所以我們在那裡的狀況非常好。我們還有一些項目想要研究。順便說一句，我們在州內的總體戰略是實施項目，使我們能夠最大限度地利用潮濕年份的供水機會，就像今年——去年那樣。

That will reduce our water risk in dry years. There's been some mention in the newspapers that there have been attention in the news regarding depleted water levels in the Colorado River. There's no date -- 1 day water being generated in the United States and Colorado will not reach the ocean there, taking up all of that. Thankfully, none of our properties are allowing the Colorado River or any of its tributaries for water.

這將減少干旱年份的水風險。報紙上提到，有關科羅拉多河水位枯竭的新聞引起了人們的關注。沒有具體日期——美國和科羅拉多州產生的水有一天將不會到達那裡的海洋，從而佔據所有這些。值得慶幸的是，我們的所有物業都不允許科羅拉多河或其任何支流取水。

So we have properties that lay at the edge of that, but not in the need area. And so we're not impacted if you see some headlines about the Colorado River. I'm going to stop here, that's enough on the operations. And now I'll turn it over to our CFO, Lewis Parrish to talk to you more about the actual numbers.

因此，我們的房產位於其邊緣，但不在需求區域。因此，如果您看到一些有關科羅拉多河的頭條新聞，我們不會受到影響。我就講到這裡，操作就足夠了。現在我將把它交給我們的首席財務官劉易斯·帕里什 (Lewis Parrish)，他將與您詳細討論實際數字。

Thank you, David, and good morning, everyone. I'll begin by briefly going over our financing activity. We did not incur any new borrowings during the quarter. We did repay about $6 million of loans since the beginning of the quarter that were scheduled to enter. On the equity side, since beginning of the quarter, we raised net proceeds of about $3 million from sales of our Series E Preferred Stock and $2 million from sales of our common stock through the ATM program.

謝謝大衛，大家早上好。我將首先簡要回顧一下我們的融資活動。本季度我們沒有發生任何新借款。自本季度初以來，我們確實償還了預定進入的約 600 萬美元貸款。在股權方面，自本季度初以來，我們通過 ATM 計劃通過銷售 E 系列優先股籌集了約 300 萬美元的淨收益，通過 ATM 計劃出售普通股籌集了 200 萬美元的淨收益。

Moving on to our financial results. For the second quarter, we had net income of about $7.9 million and net income to common shareholders of $1.7 million or $0.05 per common share. For the following discussion of operations, I'll be comparing the second quarter of 2023 with the corresponding second quarter of 2022. Adjusted FFO for the current quarter was approximately $3.8 million or $0.107 per share compared to $4.5 million or $0.129 per share in the prior year quarter.

接下來是我們的財務業績。第二季度，我們的淨利潤約為 790 萬美元，普通股股東的淨利潤為 170 萬美元，即每股普通股 0.05 美元。在以下運營討論中，我將比較2023 年第二季度與2022 年相應第二季度。本季度調整後的FFO 約為380 萬美元或每股0.107 美元，而上一季度為450 萬美元或每股0.129 美元年季度。

The primary driver behind the decrease in AFFO was higher costs incurred to carry uninvested capital on our balance sheet, partially offset by an increase in top line revenues. The fixed base cash rents increased by about $512,000 or 3% over the prior year quarter, primarily driven by additional revenues earned on new farms acquired over the past year.

AFFO 減少的主要原因是資產負債表上未投資資本的成本上升，但部分被頂線收入的增加所抵消。固定基礎現金租金比去年同期增加了約 512,000 美元，即 3%，這主要是由於去年收購的新農場獲得的額外收入推動的。

This increase was partially offset by a decrease in revenues from the self-operated and nonaccrual properties as well as a lease we executed in the fourth quarter of 2022 in which we reduced the fixed base rent in exchange for increasing the participation rent component in the lease, and that result won't be known until later this year.

這一增長被自營和非應計物業以及我們在 2022 年第四季度執行的租賃收入的減少所部分抵消，其中我們減少了固定基本租金，以換取增加租賃中的參與租金部分，而這個結果要到今年晚些時候才能知道。

Regarding the nonaccrual properties, we will continue to recognize revenues from these leases on a cash basis until such time that the full collection of the future rental payments is again deemed to be probable. As David mentioned, we did replace one tenant during the quarter, and we are close to finalizing turns to replace a second tenant.

關於非應計財產，我們將繼續以現金形式確認這些租賃的收入，直到再次認為有可能全額收取未來租金為止。正如大衛提到的，我們確實在本季度更換了一名租戶，並且我們即將完成更換第二名租戶的輪換。

And the third tenant is currently caught up with our rental payments to us. So we are optimistic that all of these properties will return to a full accrual status by the end of the year. On a same-property basis and including participation rents, our Q2 2023 lease revenues increased slightly by a little over $100,000 or about 1% over that of the prior year quarter.

第三個租戶目前正在支付我們的租金。因此，我們樂觀地認為所有這些財產將在今年年底前恢復完全應計狀態。在相同物業的基礎上（包括參與租金），我們 2023 年第二季度的租賃收入比去年同期略有增加，略高於 100,000 美元，即約 1%。

On the expense side, excluding reimbursable expenses and certain nonrecurring or noncash expenses, our core operating expenses for the quarter increased by about $210,000 from last year. Total related-party fees increased by about $156,000, that was primarily driven by additional assets added to our portfolio over the past year.

在費用方面，不包括可報銷費用和某些非經常性或非現金費用，我們本季度的核心運營費用比去年增加了約 210,000 美元。關聯方費用總額增加了約 156,000 美元，這主要是由於過去一年我們投資組合中添加的額外資產所致。

If we remove related-party fees, our core operating expenses increased by just $54,000 from last year. Property operating expenses increased by about $97,000, that was primarily driven by additional legal fees that we incurred in connection with drafting new lease agreements and aiding with rent collection efforts from certain tenants, it's partially offset by a decrease in repairs and maintenance expense during the current year.

如果剔除關聯方費用，我們的核心運營費用僅比去年增加 54,000 美元。物業運營費用增加了約 97,000 美元，這主要是由於我們因起草新租賃協議和協助某些租戶收取租金而產生的額外法律費用，但部分被當前期間維修和保養費用的減少所抵消年。

In addition, G&A expenses decreased by about $43,000. That's primarily due to costs related to the 2023 Annual Shareholders Meeting being previously recognized in the first quarter.

此外，一般管理費用減少了約 43,000 美元。這主要是由於與 2023 年年度股東大會相關的成本先前已在第一季度確認。

Finally, other income increased due to additional interest income earned on balances and money market accounts due to higher rates and interest expense decreased due to loan repayments and payoffs made over the past year. Now we'll move on to net asset value.

最後，其他收入增加是由於利率上升導致餘額和貨幣市場賬戶賺取的額外利息收入，而利息支出由於過去一年的貸款償還和支付而減少。現在我們將繼續討論資產淨值。

We had 62 farms revalued during the quarter, all via third-party appraisals. Overall, these farms increased slightly in value by about $850,000 over their previous valuations from about a year ago. So as of June 30, our portfolio was valued at approximately $1.6 billion, all of which was supported by either the third-party appraisals or the purchase prices.

本季度我們對 62 個農場進行了重新評估，全部通過第三方評估進行。總體而言，這些農場的價值比大約一年前的估值略有增加約 850,000 美元。截至 6 月 30 日，我們的投資組合估值約為 16 億美元，所有這些都得到了第三方評估或購買價格的支持。

Based on these updated valuations and including the fair value of our debt and all preferred securities, our net asset value per common share at June 30 was $19.15, which is up by over $2 from their value at March 31. The main driver of this increase was the change in valuation of our fixed rate debt and preferred securities, particularly the Series C Preferred Stock.

根據這些更新的估值，並包括我們債務和所有優先證券的公允價值，我們截至6 月30 日的每股普通股淨資產值為19.15 美元，比3 月31 日的價值增加了​​ 2 美元以上。這一增長的主要驅動力是我們的固定利率債務和優先證券（尤其是 C 系列優先股）估值的變化。

Previously, this security was valued at its liquidation value based on the waterfall approach. However, in accordance with our valuation policy on to security being listed on NASDAQ in June, began valuing it based on its market price at quarter end as we do all publicly listed preferred securities.

此前，該證券根據瀑布法按其清算價值進行估值。然而，根據我們對 6 月份在納斯達克上市的證券的估值政策，我們在季度末開始根據其市場價格對其進行估值，就像我們對所有公開上市的優先證券一樣。

Turning to liquidity, including availability on our lines of credit and other undrawn notes, we currently have over $185 million of dry powder, and we also have about $145 million of unpledged properties.

談到流動性，包括我們的信用額度和其他未提取票據的可用性，我們目前擁有超過 1.85 億美元的干粉，我們還有約 1.45 億美元的未抵押財產。

Over 99.9% of our borrowings are currently at fixed rates and on a weighted average basis, these rates are fixed at 3.35% for another 4.6 years out. As a result, we have experienced minimal impact from the recent increases in interest rates. However, the increases do impact our ability to finance new acquisitions and also play a factor in our decision to repay versus refinance maturing loans. But with respect to our current debt load, we believe we are well protected against any future -- any further interest rate hikes for the foreseeable future.

我們超過 99.9% 的借款目前採用固定利率，按加權平均計算，這些利率在未來 4.6 年內固定為 3.35%。因此，近期利率上升對我們的影響微乎其微。然而，這些增長確實影響了我們為新收購融資的能力，也影響了我們決定償還到期貸款還是再融資到期貸款。但就我們目前的債務負擔而言，我們相信我們能夠免受任何未來的影響——在可預見的未來任何進一步的加息。

Regarding upcoming debt maturities, we have about $34 million coming due over the next 12 months. However, about $17 million of that represents various loan maturities. The properties collateralizing these loans have increased in value by a total of $7 million since their respective acquisitions.

關於即將到期的債務，我們將在未來 12 個月內到期約 3,400 萬美元。然而，其中約 1700 萬美元代表不同的貸款期限。自各自收購以來，作為這些貸款抵押的房產價值總計增加了 700 萬美元。

So we don't foresee any problems refinancing any of these loans if we choose to do so. Removing those maturities, we only have about $17 million of amortizing principal payments coming due over the next 12 months or less than 3% of our current debt outstanding.

因此，如果我們選擇為這些貸款再融資，我們預計不會出現任何問題。除去這些到期日，我們在未來 12 個月內只有約 1700 萬美元的攤銷本金付款，不到我們當前未償債務的 3%。

And finally, regarding our common distributions. We recently raised our common dividend again to $0.0462 per share per month. This marks the 31st time we raised our common dividend over the past 34 quarters, resulting in an overall increase of 54% over that period.

最後，關於我們的常見發行版。我們最近再次將普通股股息提高至每月每股 0.0462 美元。這是我們在過去 34 個季度中第 31 次提高普通股股息，同期整體股息增長了 54%。

And with that, I'll turn the program back over to David.

這樣，我會將程序轉回給大衛。

Okay. Thank you, Lewis. That was a nice report. We continue to stay active in the marketplace should a good opportunity present itself. But as mentioned, we're being more cautious on the acquisition front. This is really due to the cost of borrowing and the price of farms. Farms haven't fallen even though the cost to borrow them is really much higher than it was before the Fed kept raising rates. A few items to finally point to.

好的。謝謝你，劉易斯。這是一個很好的報告。如果有好的機會出現，我們將繼續在市場上保持活躍。但正如前面提到的，我們在收購方面更加謹慎。這實際上是由於借貸成本和農場價格造成的。儘管借貸成本確實比美聯儲不斷加息之前高得多，但農場並沒有下降。最後要指出的一些項目。

We believe that investing in farmland crops that contribute to the healthy lifestyle such as fruits and vegetables and nuts is where we should be. Following this trend, we are seeing the market today. It's a good place to be because it's not susceptible to some of the changes in market demand that you'd see if you were in only corn or any of those corn crops.

我們相信，我們應該投資於有助於健康生活方式的農田作物，例如水果、蔬菜和堅果。順著這個趨勢，我們看到了今天的市場。這是一個好地方，因為它不易受到市場需求變化的影響，如果你只種植玉米或任何這些玉米作物，你就會看到這種變化。

Overall, demand for prime farmland that are growing berries and vegetables remains stable to strong in almost all the areas where our farms are located, particularly along each of the coast. And overall, farmland in the United States is performing well. For example, the NCREIF Farmland Index has about $16.2 billion worth of farms and all of our $1.6 billion is in that calculation that NCREIF does. That agricultural property index is a good one. We hope to be exactly like them because their return has been 11.4% over the past 25 years with no negative years during that period.

總體而言，在我們農場所在的幾乎所有地區，尤其是沿海地區，對種植漿果和蔬菜的主要農田的需求仍然穩定至強勁。總體而言，美國的農田表現良好。例如，NCREIF 農田指數擁有價值約 162 億美元的農場，而我們所有的 16 億美元都包含在 NCREIF 的計算中。農業財產指數是一個很好的指數。我們希望能像他們一樣，因為過去 25 年他們的回報率為 11.4%，期間沒有出現負數年份。

This is better than both the S&P Index and the overall REIT indexes, each of which had 6 or more negative years over the same time frame period versus 0 for the farmland index. So in closing, we can go over a couple of items and then move on to questions. Please remember that if you're purchasing stock in this company, it's a long-term investment. It's DIRTT, it's farmland. And this investment is our stock 2 -- gives 2 parts to it. It's similar to gold and that it's a hard asset, farmland that has intrinsic value because there's a limited amount of good farmland in the United States.

這比標準普爾指數和整體房地產投資信託指數都要好，這兩個指數在同一時間段內都有 6 年或以上的負值年份，而農田指數為 0。最後，我們可以回顧幾個項目，然後繼續討論問題。請記住，如果您購買該公司的股票，這是一項長期投資。這是DIRTT，這是農田。這項投資是我們的股票 2——提供 2 部分。它與黃金類似，是一種硬資產，是具有內在價值的農田，因為美國的優質農田數量有限。

And it's being used up by urban development, especially in California and Florida, where we have many farms. And second, unlike gold and other alternative assets, it's an active asset with cash flows to investors, and we believe we are better than a bond fund because we keep increasing the dividend. We expect inflation, particularly in the food sector, to continue to increase, and we expect the values of underlying farmland to increase as a result.

它正在被城市發展所消耗，特別是在加利福尼亞州和佛羅里達州，那裡有許多農場。其次，與黃金和其他另類資產不同，它是一種活躍的資產，為投資者帶來現金流，我們相信我們比債券基金更好，因為我們不斷增加股息。我們預計通貨膨脹，特別是食品行業的通貨膨脹將繼續加劇，我們預計基礎農田的價值將因此增加。

And we expect this to be especially true in the fresh produce area as the trends are in our favor that more people in the United States are eating healthy foods, and they continue to grow in that direction.

我們預計在新鮮農產品領域尤其如此，因為趨勢對我們有利，即越來越多的美國人正在吃健康食品，並且他們將繼續朝這個方向增長。

Now I'm going to stop and ask the operator, Latania if you'll come on and tell us how to ask questions.

現在我要停下來詢問接線員拉塔尼亞，您是否願意過來告訴我們如何提問。

(Operator Instructions) Our first question comes from Rob Stevenson with Janney Montgomery Scott.

（操作員說明）我們的第一個問題來自 Rob Stevenson 和 Janney Montgomery Scott。

David, any acquisitions on your contract today? And then given your commentary on how robust the market pricing for farms is. Any thoughts about selling more assets in the back half of this year?

大衛，今天你的合同中有收購嗎？然後給出您對農場市場定價有多強勁的評論。有關於今年下半年出售更多資產的想法嗎？

Well, if we could find somebody that would buy the nonperforming or the problem that some farms have, we'd certainly be willing to sell. But Rob, my goal is to amass as many assets as possible in the farming area. They've continued to go up in price farms that I bought 20 years ago are now about 4x the price that I paid.

好吧，如果我們能找到有人願意購買表現不佳或存在問題的農場，我們當然願意出售。但是羅布，我的目標是在農業領域積累盡可能多的資產。我 20 年前購買的農場價格持續上漲，現在大約是我支付價格的 4 倍。

So it's a good area. It has low downside risk. And so we don't have anything under contract right now. We have some discussions going on with farmers. And believe me, the guys and gals here are chomping at bits to buy something. So I'm not going to buy a farm that would pay me on a cap rate of, say, 5.5% and then borrow money at 5.5%.

所以這是一個很好的區域。它的下行風險較低。所以我們現在沒有任何合同。我們正在與農民進行一些討論。相信我，這裡的男孩女孩們都在拼命地買東西。因此，我不會購買一家按上限利率（例如 5.5%）支付給我的農場，然後以 5.5% 的利率借錢。

That's a good way to be long term in the wrong direction. But I do wish the interest rates would come down. These federal lenders are in a position and have been in a position for some time to drop their rates and allow us to get back to business of buying farms. These farmers that we buy from are not in a hurry. And so they're only going to do it if they get the price that they want. So we're kind of on hold.

這是長期走在錯誤方向的好方法。但我確實希望利率能夠下降。這些聯邦貸款機構有能力並且一段時間以來一直有能力降低利率，讓我們重新開始購買農場的業務。我們購買的這些農民並不著急。因此，只有當他們得到他們想要的價格時，他們才會這樣做。所以我們有點擱置。

We are concentrating a lot of our effort right now on water. As you know, we have plenty of water now. However, we are fixing some of our farms so that we can store water on them by putting in some firms and allowing us to go in that direction. And believe it or not, the state of California is encouraging everyone to do that. I think we are way ahead of the curve in terms of putting water in place. I think we've got enough water today for the next 2 years, and we've got a couple of transactions that would push us into the direction of 2040 in terms of having enough water in -- underground.

我們現在將大量精力集中在水資源上。如你所知，我們現在有充足的水。然而，我們正在修復一些農場，以便我們可以通過設立一些公司來儲存水，並允許我們朝這個方向前進。不管你相信與否，加利福尼亞州正在鼓勵每個人都這樣做。我認為我們在供水方面遙遙領先。我認為今天我們已經擁有了足夠未來兩年使用的水，而且我們已經完成了幾項交易，這些交易將推動我們向 2040 年的方向邁進，在地下擁有足夠的水。

These aquifers that are there have gone down some, so they're trying to fill them all back up during this time of plenty of water. But in terms of buying new farms, we don't want to buy farms and just tread along at the same rate that we bought them at. So we'll have to work our way through that. And it's changing. You're seeing some of the farmers starting to talk about different cap rates, and I think it will happen. Some of them, as you know, the average farmer is about 58 now.

那裡的含水層已經下降了一些，所以他們正試圖在水充足的時候把它們全部填滿。但在購買新農場方面，我們不想購買農場，只是按照購買時的速度前進。所以我們必須想辦法解決這個問題。而且它正在改變。你會看到一些農民開始談論不同的上限利率，我認為這將會發生。其中一些，如你所知，現在農民的平均年齡約為 58 歲。

And more than 40% of the farms in the United States are owned by individuals. So somewhere along the way as people continue to get older and have to settle up their estate, things are going to happen. We'll be ready for that as long as we can borrow some reasonable price water. We've talked about having an offering and raising more equity. I don't think it's quite the time to do that, but we'll certainly be talking to your people if we get along that line, but I hope I answered your question.

而美國40%以上的農場為個人所有。因此，隨著人們不斷變老並必須處理他們的遺產，某些事情就會發生。只要我們能藉到一些價格合理的水，我們就會做好準備。我們已經討論過發行股票和籌集更多股本的問題。我認為現在還不是這樣做的時候，但如果我們能沿著這條路線前進，我們肯定會與你們的人交談，但我希望我回答了你們的問題。

That's helpful. And Lewis, where are the issues with the operator -- these operators showing up? Is it at the revenue line? Is it the property expense line, both? The reason why I ask is that property operating expenses in the first half were up more than $600,000, which is like 44%, which is a big increase for a net lease REIT. So I wanted to get a color there and if the $2 million first half operating expense is a good run rate for the back half?

這很有幫助。劉易斯，運營商的問題在哪裡——這些運營商出現了？是在收入線嗎？都是財產支出線嗎？我之所以這麼問，是因為上半年的物業運營費用增長了超過60萬美元，約為44%，這對於淨租賃REIT來說是一個很大的增長。所以我想在那裡得到一種顏色，如果上半年 200 萬美元的運營費用對於下半年來說是一個好的運行率？

So it's showing up a little bit in both places. From those properties other than the amounts received in cash, we have not recognized any revenue. And I think David mentioned, it's -- for the first half of the year, the year-over-year impact on our net operating income is about $600,000. That's a combination of the revenue line item and the property operating expenses.

所以它在這兩個地方都出現了一點。除收到的現金金額外，我們尚未從這些財產中確認任何收入。我想 David 提到過，今年上半年，對我們淨營業收入的同比影響約為 60 萬美元。這是收入項目和財產運營費用的組合。

On the revenue side alone, I think we had a decrease of about $400,000 year-over-year. The rest of that is in the property operating expense line item and most of those costs are legal fees we've incurred to, as we said, the script, release -- sign up new leases on those properties and a big chunk also legal fees incurred to kind of help with collection of those amounts, both the rent amounts, and while they were our tenants and possibly looking to go after vacating those properties.

僅在收入方面，我認為我們同比減少了約 40 萬美元。其餘的部分在財產運營費用項目中，其中大部分成本是我們因劇本、發布、簽署這些財產的新租約而產生的法律費用，其中很大一部分也是法律費用當他們是我們的租戶並可能在騰出這些房產後想要離開時，我們需要幫助收取這些金額，包括租金金額。

The rest of that, the increase has primarily been 2 factors. One -- and I don't have the exact number of breakout for these 2 categories. But one, we did have some repairs, maintenance expense on the Florida farms to -- for repairs for the hurricane damage and as well as a couple of hundred thousand dollars on the West Coast to repair damage from flooding. And the other bucket of that was just increased cost to protect water rights on farms in California.

其餘的增長主要有兩個因素。一——我沒有這兩個類別突破的確切數量。但第一，我們確實在佛羅里達農場有一些維修、維護費用，用於修復颶風造成的損壞，以及在西海岸的數十萬美元用於修復洪水造成的損壞。另一方面是保護加州農場水權的成本增加。

Okay. That's helpful. And then my last question. You guys typically see a major jump in revenues, call it, 10%, 20% quarter-over-quarter from second to third quarter and then another notable jump between third and fourth. Some of this has been in the previous years driven by acquisitions because you guys have done a bunch of acquisitions that have started benefiting in the back half of the year.

好的。這很有幫助。然後是我的最後一個問題。你們通常會看到收入大幅躍升，從第二季度到第三季度，季度環比增長 10%、20%，然後在第三季度和第四季度之間又出現顯著的躍升。其中一些是前幾年由收購推動的，因為你們已經進行了一系列收購，這些收購在今年下半年開始受益。

But if you haven't really done anything this year on the acquisition side, how should we be thinking about the seasonality of the revenues in the back half of the year? Is it still going to be -- see that sizable jump because of the percentage of rents in some of the crops that are going to get sold, et cetera? Is it going to be less because you're also not adding the acquisitions. How should we be thinking about that?

但如果今年你在收購方面沒有真正做任何事情，我們應該如何考慮下半年收入的季節性？由於某些即將出售的農作物的租金百分比等等，是否還會出現大幅上漲？會不會因為你也沒有增加收購而減少？我們應該如何思考這個問題？

The jump were probably less than in prior years just because as you said, we don't have the acquisition increase that will aid us on that front this year. So from a kind of a fixed base rent, if you will, it will be a lot more flat than in prior years. The one caveat I'd add to that is, as we shore up these tenant issues on the -- with these 3 tenant issues we have and restore those properties back to full accrual status. Right now, I'm hopeful that we can get everything back on in the fourth quarter.

增幅可能低於前幾年，因為正如您所說，我們今年沒有增加收購來幫助我們。因此，如果你願意的話，從一種固定的基本租金來看，它會比前幾年平穩得多。我要補充的一個警告是，當我們解決這些租戶問題時，我們遇到了這 3 個租戶問題，並將這些房產恢復到完全應計狀態。現在，我希望我們能夠在第四季度恢復一切。

So that will add a slight bump, but the majority of the increase in the second half of the year is going to come from the participation rents as they have in the prior years. I think last year, we had around $7 million of participation rents, year before that around $5 million. We're not sure where we're going to land yet. We're still trying to get information on yield and pricing. Pistachio and almonds are the biggest factors, but we're still gathering info on the yield data of our farms.

因此，這將略有增加，但下半年的大部分增長將來自參與租金，就像前幾年一樣。我想去年我們的參與租金約為 700 萬美元，前年約為 500 萬美元。我們還不確定要降落在哪裡。我們仍在嘗試獲取有關產量和定價的信息。開心果和杏仁是最大的因素，但我們仍在收集有關農場產量數據的信息。

So it's too early to say where we'll fall on that, but it'll probably be slightly less than last year. Last year was a pretty good year in participation rents, but we should have more color on that front in the next quarter's earnings call.

因此，現在說我們會落在哪裡還為時過早，但可能會比去年略少。去年的參與租金是相當不錯的一年，但我們應該在下一季度的財報電話會議上在這方面有更多的內容。

Our next question comes from Edward Najarian with EF Hutton.

我們的下一個問題來自 EF Hutton 的 Edward Najarian。

You mentioned the biggest change in terms of the valuation of the preferred stock within the Series C. I was just wondering if you could kind of go through the change in the B, C and Series E real quickly, just so we can get sort of a sense of how much each of those drove the change in the NAV calculation.

您提到了 C 系列中優先股估值方面的最大變化。我只是想知道您是否可以快速了解 B、C 和 E 系列中的變化，這樣我們就可以得到一些信息了解這些因素對資產淨值計算變化的影響程度。

Sure. So the B has been listed for over a year now. So that's been valued at its market price for several quarters. That market prices -- I mean it's a fixed income security. So as interest rates go up, the demand for that security is going to go down. But the Series E is still non listed, so that's valued at its liquidation value of $25 per share. The Series C is where I would -- I know I'm on a recording, but I just want to say, don't quote me on this, but 90% of the change probably comes from that Series C security. And the reason is last quarter before it was listed, it was valued based on a waterfall approach at its liquidation value of $25 per share.

當然。那麼B已經上市一年多了。因此，幾個季度以來一直按照市場價格進行估值。市場價格——我的意思是它是一種固定收益證券。因此，隨著利率上升，對該證券的需求將會下降。但 E 系列尚未上市，因此其清算價值為每股 25 美元。 C 輪是我想要的——我知道我正在錄音，但我只想說，不要引用我的話，但 90% 的變化可能來自 C 輪安全。原因是它上市前的上個季度，按照瀑布法估值，其清算價值為每股25美元。

However, it got -- we listed it in June, and it was trading closer to $20 per share at June 30. So once it gets listed, as our valuation policy says, we value it based on its public market price. So that's a quarter-over-quarter change from $25 to $20 on approximately, I guess, $250 million of value at March 31 that got marked down to close to $200 million at June 30.

然而，我們在6 月份將其上市，截至6 月30 日，其交易價格接近每股20 美元。因此，一旦上市，正如我們的估值政策所說，我們將根據其公開市場價格對其進行估值。因此，從 25 美元到 20 美元的季度環比變化，我猜，3 月 31 日的價值約為 2.5 億美元，到 6 月 30 日已降至接近 2 億美元。

Okay. Okay. That's helpful. So really, the vast majority from the C and very well, actually, I guess, no change in the E and then little change in the B, correct?

好的。好的。這很有幫助。所以真的，絕大多數來自 C，實際上，我猜，E 沒有變化，B 幾乎沒有變化，對嗎？

Correct. Correct. Correct.

正確的。正確的。正確的。

(Operator Instructions) Mr. Gladstone, there are no further questions in the queue. I would like to turn the call back over to you for closing comments.

（操作員指示）格萊斯頓先生，隊列中沒有其他問題。我想將電話轉回給您以徵求結束意見。

Well, thank you all very much for asking questions. We always hope there are more questions than we get at these meetings. So we'll have to wait until next quarter to answer your questions. So thanks again, and that's the end of this.

嗯，非常感謝大家提出問題。我們總是希望提出的問題比我們在這些會議上收到的問題多。因此，我們必須等到下個季度才能回答您的問題。再次感謝，這就是結束。

Thank you. This does conclude today's teleconference. You may disconnect your lines at this time, and thank you for your participation, and have a great day.

謝謝。今天的電話會議到此結束。此時您可以斷開線路，感謝您的參與，祝您有美好的一天。