Determination of Fair Value In determining the fair value of our investments in real estate, we have historically relied on independent, third•party appraisal firms that employ a certified appraiser with local knowledge and expertise who is certified as either an A.R.A. or MAI. appraiser or state certified as a Certified General Real Estate Appraiser and who performed their formal appraisals as of December 31 in each calendar year for each property, and then updated such appraisals each quarter thereafter, with properties acquired between the fourth quarter of a calendar year and the December of the following year being held at their respective costs until formally appraised. See "Experts" for a list of our third party appraisers. Our independent auditors have not audited or reviewed these appraisals. Each property in our portfolio was most recently appraised as of June 30, 2015 other than Falcon Farms, the second parcel of Kimberly Vineyard, the second parcel of Golden Eagle Ranch and Kingfisher Ranch, all of which were acquired between the fourth quarter of 2014 and the date of this prospectus and are held at cost. Each full appraisal was prepared in conformity with the Uniform Standards of Professional Appraisal Practice and utilized at least one of the following three approaches to value: (i) the cost approach, which establishes value by estimating the current costs of reproducing the improvements (less loss in value from depreciation) and adding land value to it; (ii) the income capitalization approach, which establishes value indicated by the subject property's net earning power based on the capitalization of income; and/or (iii) the comparable sales approach, which establishes value indicated by recent sales of comparable properties in the market place, with each approach leading to a final opinion of the appraised value of the subject property by the appraiser. The income capitalization approach is very sensitive to the final capitaliza