Gladstone Commercial Corporation Provides a Business Update
June 15 2020 - 4:30PM
Gladstone Commercial Corporation (Nasdaq: GOOD) (“we” or “Gladstone
Commercial”) is providing the following business update regarding
portfolio performance during this time of market volatility related
to the global COVID-19 pandemic.
- We have continued to exhibit
strength in rent collections: Approximately 98% of June cash base
rent has been paid and collected. June rental collections remain
consistent with 98% of May and April cash base rent that was paid
and collected. The remaining 2% of cash base rents are associated
with the previously agreed upon deferral agreements. All deferred
amounts are to be paid back by the respective tenants commencing in
July 2020 and ending in March 2021.
- Our portfolio continues to provide
stable cash flow to our investors: Portfolio occupancy remains at
approximately 97%, as of June 15, 2020.
- Our leasing initiatives have been
successful in the COVID-19 environment: On May 27th we announced a
lease amendment with Morgan Stanley Smith Barney Financing for
16,689 square feet at our Easton Commons Ohio office building.
Morgan Stanley now leases 100% of the building through December of
2025 and intends to invest significant capital to renovate the
common areas of the building while completing tenant improvements
on the expansion space. The space was previously occupied by
Congressional Bank, which vacated in October 2019. The lease
expansion resulted in a 51% increase in GAAP rent over the previous
tenant’s rent.
- We have continued to raise
additional capital to fund acquisitions and operating needs: Since
January 1, 2020, we have issued 1.3 million shares of common stock
for net proceeds of $28.2 million and 45,600 shares of Series E
perpetual preferred stock for net proceeds of $1.0 million.
- We continue to have ample liquidity
and a strong capital structure: As of June 15th, our currently
available liquidity is in excess of $30 million via our revolving
credit facility availability and cash on hand. We have continued to
reduce our net book leverage to 46% as of March 31, 2020.
- We have maintained an active
investor outreach program: The Company presented at the virtual
2020 REITWeek and met with numerous investors, analysts, and
investment banks. Discussion subjects included portfolio
performance, market conditions, capital strategy and our
predominantly industrial-focused acquisition program. The positive
recent and long-term performance on rent collection, the
significant industrial acquisition volume since January 2019, the
recast of the credit facility at more favorable terms in tandem
with the addition of two Tier 1 banks to the syndicate, and
favorable equity issuance were well-received by the audience.
We may receive additional rent relief requests
in the near term. Gladstone Commercial’s acquisitions and asset
management teams intend to predominantly seek near term rent
deferral repayment, extended lease term, increased rent, and other
favorable lease modifications as consideration for granting relief
for certain tenants that have been materially and adversely
impacted by the ongoing COVID-19 pandemic, as assessed by us.
However, we are unable to quantify the outcomes of future
negotiation of relief packages, the success of any tenant’s
financial prospects or the amount of relief requests that we will
ultimately receive or grant.
About Gladstone Commercial (Nasdaq:
GOOD)
Gladstone Commercial is a real estate investment
trust focused on acquiring, owning and operating net leased
industrial and office properties across the United States. As
of March 31, 2020, Gladstone Commercial’s real estate
portfolio consisted of 122 properties located in 28 states,
totaling approximately 15.1 million square feet. For additional
information please visit www.gladstonecommercial.com
For Broker Submittals:
South
Central: |
Midwest/Northeast: |
Buzz Cooper |
Matt Tucker |
Senior Managing Director |
Senior Managing Director |
(703) 287-5815 |
(703) 287-5830 |
Buzz.Cooper@gladstonecompanies.com |
Matt.Tucker@gladstonecompanies.com |
|
|
Southeast /
West: |
|
Brandon
Flickinger |
|
Managing Director |
|
(703) 287-5819 |
|
Brandon.Flickinger@gladstonecompanies.com |
|
|
|
Investor or Media Inquiries:
Bob Cutlip |
|
President – Gladstone
Commercial Corporation |
(703) 287-5878 |
|
Bob.Cutlip@gladstonecompanies.com |
|
All statements contained in this press release, other than
historical facts, may constitute “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Words such as “anticipates,” “expects,” “intends,”
“plans,” “believes,” “seeks,” “estimates” and variations of these
words and similar expressions are intended to identify
forward-looking statements. Readers should not rely upon
forward-looking statements because the matters they describe are
subject to known and unknown risks and uncertainties that could
cause the Gladstone Commercial’s business, financial condition,
liquidity, results of operations, funds from operations or
prospects to differ materially from those expressed in or implied
by such statements. Such risks and uncertainties are disclosed
under the caption “Risk Factors” of the company’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2019, as filed
with the SEC on February 12, 2020 and certain other filings we make
with the SEC. Gladstone Commercial cautions readers not to place
undue reliance on any such forward-looking statements which speak
only as of the date made. The company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
For Investor Relations inquiries related to any of the monthly
dividend paying Gladstone funds, please visit
www.gladstonecompanies.com.
SOURCE: Gladstone Commercial Corporation
Gladstone Commercial (NASDAQ:GOOD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Gladstone Commercial (NASDAQ:GOOD)
Historical Stock Chart
From Apr 2023 to Apr 2024