EFTA Document EFTA01384960

OPERATING REVENUES: For Me Year Ended December 31, Change % Change 2014 2013 Fixed rent $ 546,638 S 700,499 $ (153,861) (21.96)% Same-property portfolio 423,203 681,981 (258,778) (37.95)% Participating rent 3,476,103 2,071,153 1,404,945 67.83% Same-property portfolio 2824,759 2,071,158 753,601 36.39% Recovery of expenses 201,469 197,309 4,160 2.11% Same-pmperty portfolio 194570 197,309 1,261 0.64% Other income 10 10 ibtal operating revenues 4,224,220 2,968,966 1,255,254 42.28% Same property portfolio 4444532 2,950,448 494084 16.81% OPERATING EXPENSES: Depreciation 1,217,095 1,053,829 163,266 15.49% Same-property portfolio 965,530 1,033,779 (68,249) (6.60)% Property operating expenses 457,886 429,373 28,513 6.64% Same-property portfolio 355,114 414943 (61,829) (14.83)% Acquisition-related expenses 220 187,872 (187,652) (99.88)% Professional fees 14,182 3,039 11,143 366.67% ibtal operating expenses 1,689,383 1,674,113 15,270 0.91% OPERATING INCOME $2,534,837 $1,294,853 $1,239,984 95.76% Total Operating Revenues Total operating revenues for our permanent crop segment increased $1,255,254, or 42.28%, from $2,968,966 for the year ended December 31, 2013 to $4,224,220 for the year ended December 31, 2014, which increase was primarily due to an increase in participating rent offset by a decline in fixed rents, as more fully described below. 'final operating revenues for our same-property permanent crop portfolio increased $496,084, or 16.81%, from $2,950,448 for the year ended December 31, 2013 to $3,446,532 for the year ended December 31, 2014, also due to the increase in participating rent offsetting lower fixed rents. Fixed rent for our permanent crop segment decreased $153,861, or 21.96%, from $700,499 for the year ended December 31, 2013 to $546,638 for the year ended December 31, 2014. Our Quail Run Vineyard property produced $339.029 less fixed rent in 2014 as the terms of the lease were negotiated from a fixed lease prior to 2014 to a combination of a fixed lease and participation lease with a base rent component, and certain acreage was taken out of production to be redeveloped. This reduction in fixed rent was partially offset by $123,435 we received from the Blue Heron Farms property we acquired during the fourth quarter of 2013. Fixed rent for our same-property permanent crop portfolio decreased $258,778, or 37.95%. from $681,981 for the year ended December 31, 2013 to $423,203 for the year ended December 31. 2014, most of which related to Quail Run Vineyard for the reasons stated above, offset by a base rent payable by the tenant of Golden Eagle Ranch whose new lease requires a small base rent. Participating rent for our permanent crop segment increased $1,404,945, or 67.83%, from $2,071,158 for the year ended December 31, 2013 to $3,476,103 for the year ended December 31, 2014. This increase was primarily due to (i) Golden Eagle Ranch relating to increased crop prices and (ii) participating rent from Quail Run Vineyard resulting from a new lease and a contribution of $651,344 from Blue Heron Farm, neither of which generated participating revenues in 2013. Participating rent for our same-property permanent crop portfolio increased $753,601 or 36.39%, from 91 CONFIDENTIAL - PURSUANT TO FED. R CRIM P 6(e) DB-SDNY-0085654 CONFIDENTIAL SONY_GM_00231838 EFTA01384960