Gladstone Commercial Corporation (Nasdaq: GOOD) (“Gladstone
Commercial” or the “Company”) today reported financial results for
the fourth quarter and year ended December 31, 2019. A
description of funds from operations, or FFO, FFO as adjusted for
comparability, and Core FFO, all three non-GAAP (generally accepted
accounting principles in the United States) financial measures, are
located at the end of this press release. All per share
references are to fully-diluted weighted average shares of common
stock and Non-controlling OP Units, unless otherwise noted.
For further detail, please also refer to both the quarterly
financial supplement and the Company’s Annual Report on Form 10-K
which can be retrieved from the investor relations section of our
website at www.GladstoneCommercial.com.
Summary Information (dollars in thousands,
except per share data):
|
|
As of and for the three months ended |
|
|
|
|
|
|
December 31, 2019 |
|
September 30, 2019 |
|
$ Change |
|
% Change |
Operating
Data: |
|
|
|
|
|
|
|
|
Total operating revenue |
|
$ |
29,386 |
|
|
$ |
28,667 |
|
|
$ |
719 |
|
|
2.5 |
% |
Total operating expenses |
|
(22,462 |
) |
(1 |
) |
(19,445 |
) |
|
(3,017 |
) |
|
15.5 |
% |
Other expense, net |
|
(6,452 |
) |
|
(7,031 |
) |
|
579 |
|
|
(8.2 |
)% |
Net income |
|
$ |
472 |
|
|
$ |
2,191 |
|
|
$ |
(1,719 |
) |
|
(78.5 |
)% |
Less: Dividends attributable to
preferred stock |
|
(2,986 |
) |
|
(2,612 |
) |
|
(374 |
) |
|
14.3 |
% |
Less: Series A and B Preferred
Stock offering costs write off |
|
(2,674 |
) |
|
— |
|
|
(2,674 |
) |
|
100.0 |
% |
Less: Dividends attributable to
senior common stock |
|
(217 |
) |
|
(226 |
) |
|
9 |
|
|
(4.0 |
)% |
Net loss attributable to common
stockholders and Non-controlling OP Unitholders |
|
$ |
(5,405 |
) |
|
$ |
(647 |
) |
|
$ |
(4,758 |
) |
|
735.4 |
% |
Add: Real estate depreciation and
amortization |
|
13,428 |
|
|
12,979 |
|
|
449 |
|
|
3.5 |
% |
Add: Impairment charge |
|
1,813 |
|
|
— |
|
|
1,813 |
|
|
100.0 |
% |
Funds from operations
available to common stockholders and Non-controlling OP Unitholders
- basic |
|
$ |
9,836 |
|
|
$ |
12,332 |
|
|
$ |
(2,496 |
) |
|
(20.2 |
)% |
Add: Convertible senior common
distributions |
|
217 |
|
|
226 |
|
|
(9 |
) |
|
(4.0 |
)% |
Funds from operations
available to common stockholders and Non-controlling OP Unitholders
- diluted |
|
$ |
10,053 |
|
|
$ |
12,558 |
|
|
$ |
(2,505 |
) |
|
(19.9 |
)% |
Add: Series A and B preferred
stock offering costs write off |
|
2,674 |
|
|
— |
|
|
2,674 |
|
|
100.0 |
% |
Funds from operations
available to common stockholders and Non-controlling OP Unitholders
- diluted, as adjusted for comparability |
|
$ |
12,727 |
|
|
$ |
12,558 |
|
|
$ |
169 |
|
|
1.3 |
% |
|
|
|
|
|
|
|
|
|
Funds from operations available
to common stockholders and Non-controlling OP Unitholders -
basic |
|
$ |
9,836 |
|
|
$ |
12,332 |
|
|
$ |
(2,496 |
) |
|
(20.2 |
)% |
Add: Write off deferred financing
fees |
|
— |
|
|
61 |
|
|
(61 |
) |
|
NM |
|
Add: Acquisition related
expenses |
|
204 |
|
|
(6 |
) |
|
210 |
|
|
(3,500.0 |
)% |
Add: Prepaid ATM cost write
off |
|
82 |
|
|
— |
|
|
82 |
|
|
100.0 |
% |
Add: Asset retirement obligation
expense |
|
42 |
|
|
32 |
|
|
10 |
|
|
31.3 |
% |
Add: Bad debt write off |
|
152 |
|
|
— |
|
|
152 |
|
|
100.0 |
% |
Add: Series A and B preferred
stock offering costs write off |
|
2,674 |
|
|
— |
|
|
2,674 |
|
|
100.0 |
% |
Core funds from
operations available to common stockholders and Non-controlling OP
Unitholders - basic |
|
$ |
12,990 |
|
|
$ |
12,419 |
|
|
$ |
571 |
|
|
4.6 |
% |
Add: Convertible senior common
distributions |
|
217 |
|
|
226 |
|
|
(9 |
) |
|
(4.0 |
)% |
Core funds from
operations available to common stockholders and Non-controlling OP
Unitholders - diluted |
|
$ |
13,207 |
|
|
$ |
12,645 |
|
|
$ |
562 |
|
|
4.4 |
% |
|
|
|
|
|
|
|
|
|
Share and Per Share
Data: |
|
|
|
|
|
|
|
|
Net loss attributable to common
stockholders and Non-controlling OP Unitholders - basic and
diluted |
|
(0.18 |
) |
|
(0.02 |
) |
|
(0.16 |
) |
|
(800.0 |
)% |
FFO available to common
stockholders and Non-controlling OP Unitholders - basic |
|
0.30 |
|
|
0.39 |
|
|
(0.09 |
) |
|
(23.1 |
)% |
FFO available to common
stockholders and Non-controlling OP Unitholders - diluted |
|
0.30 |
|
|
0.39 |
|
|
(0.09 |
) |
|
(23.1 |
)% |
FFO available to common
stockholders and Non-controlling OP Unitholders - diluted, as
adjusted for comparability |
|
0.39 |
|
|
0.39 |
|
|
— |
|
|
— |
% |
Core FFO available to common
stockholders and Non-controlling OP Unitholders - basic |
|
0.40 |
|
|
0.39 |
|
|
0.01 |
|
|
2.6 |
% |
Core FFO available to common
stockholders and Non-controlling OP Unitholders - diluted |
|
0.40 |
|
|
0.39 |
|
|
0.01 |
|
|
2.6 |
% |
Weighted average shares of common
stock and Non-controlling OP Units outstanding - basic |
|
32,332,144 |
|
|
31,775,739 |
|
|
556,405 |
|
|
1.8 |
% |
Weighted average shares of common
stock and Non-controlling OP Units outstanding - diluted |
|
33,006,755 |
|
|
32,485,645 |
|
|
521,110 |
|
|
1.6 |
% |
Cash dividends declared per
common share and Non-controlling OP Unit |
|
$ |
0.375 |
|
|
$ |
0.375 |
|
|
$ |
— |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
Financial
Position |
|
|
|
|
|
|
|
|
Real estate, before accumulated depreciation |
|
$ |
1,064,389 |
|
(2 |
) |
$ |
1,008,438 |
|
|
$ |
55,951 |
|
|
5.5 |
% |
Total assets |
|
$ |
1,039,508 |
|
|
$ |
978,012 |
|
|
$ |
61,496 |
|
|
6.3 |
% |
Mortgage notes payable, net,
borrowings under revolver, net and borrowings under term loan,
net |
|
$ |
626,594 |
|
|
$ |
590,823 |
|
|
$ |
35,771 |
|
|
6.1 |
% |
Total equity and mezzanine
equity |
|
$ |
363,190 |
|
|
$ |
343,851 |
|
|
$ |
19,339 |
|
|
5.6 |
% |
Properties owned |
|
118 |
|
(2 |
) |
109 |
|
|
9 |
|
|
8.3 |
% |
Square feet owned |
|
14,242,008 |
|
(2 |
) |
13,143,288 |
|
|
1,098,720 |
|
|
8.4 |
% |
Square feet leased |
|
97.0 |
% |
|
98.8 |
% |
|
(1.8 |
)% |
|
(1.8 |
)% |
(1) Includes a $1.8 million impairment charge recognized on one
property during the three months ended December 31, 2019.(2)
Includes one property classified as held for sale of $7.4 million
and 64,500 square feet.
|
|
|
|
|
|
|
|
|
As of and for the year ended |
|
|
|
|
|
|
December 31, 2019 |
|
December 31, 2018 |
|
$ Change |
|
% Change |
Operating
Data: |
|
|
|
|
|
|
|
|
Total operating revenue |
|
$ |
114,387 |
|
|
$ |
106,798 |
|
|
$ |
7,589 |
|
|
7.1 |
% |
Total operating expenses |
|
(80,231 |
) |
(1 |
) |
(71,137 |
) |
|
(9,094 |
) |
|
12.8 |
% |
Other expense, net |
|
(24,615 |
) |
(2 |
) |
(23,337 |
) |
(4 |
) |
(1,278 |
) |
|
5.5 |
% |
Net income |
|
$ |
9,541 |
|
|
$ |
12,324 |
|
|
$ |
(2,783 |
) |
|
(22.6 |
)% |
Less: Dividends attributable to
preferred stock |
|
(10,822 |
) |
|
(10,416 |
) |
|
(406 |
) |
|
3.9 |
% |
Less: Series A and B Preferred
Stock offering costs write off |
|
(2,674 |
) |
|
— |
|
|
(2,674 |
) |
|
100.0 |
% |
Less: Dividends attributable to
senior common stock |
|
(892 |
) |
|
(931 |
) |
|
39 |
|
|
(4.2 |
)% |
Net (loss) income (attributable)
available to common stockholders and Non-controlling OP
Unitholders |
|
$ |
(4,847 |
) |
|
$ |
977 |
|
|
$ |
(5,824 |
) |
|
(596.1 |
)% |
Add: Real estate depreciation and
amortization |
|
52,039 |
|
|
47,620 |
|
|
4,419 |
|
|
9.3 |
% |
Add: Impairment charge |
|
1,813 |
|
|
— |
|
|
1,813 |
|
|
— |
% |
Less: Gain on sale of real
estate |
|
(2,952 |
) |
|
(2,763 |
) |
|
(189 |
) |
|
6.8 |
% |
Funds from operations
available to common stockholders and Non-controlling OP Unitholders
- basic |
|
$ |
46,053 |
|
|
$ |
45,834 |
|
|
$ |
219 |
|
|
0.5 |
% |
Add: Convertible senior common
distributions |
|
892 |
|
|
931 |
|
|
(39 |
) |
|
(4.2 |
)% |
Funds from operations
available to common stockholders and Non-controlling OP Unitholders
- diluted |
|
$ |
46,945 |
|
|
$ |
46,765 |
|
|
$ |
180 |
|
|
0.4 |
% |
Add: Series A and B preferred
stock offering costs write off |
|
2,674 |
|
|
— |
|
|
2,674 |
|
|
100.0 |
% |
Funds from operations
available to common stockholders and Non-controlling OP Unitholders
- diluted, as adjusted for comparability |
|
$ |
49,619 |
|
|
$ |
46,765 |
|
|
$ |
2,854 |
|
|
6.1 |
% |
|
|
|
|
|
|
|
|
|
Funds from operations available
to common stockholders and Non-controlling OP Unitholders -
basic |
|
$ |
46,053 |
|
|
$ |
45,834 |
|
|
$ |
219 |
|
|
0.5 |
% |
Add: Acquisition related
expenses |
|
326 |
|
|
174 |
|
|
152 |
|
|
87.4 |
% |
Add: Write-off of deferred
financing fees |
|
344 |
|
|
6 |
|
|
338 |
|
|
5,633.3 |
% |
Add: Write off shelf registration
statement and prepaid ATM costs |
|
100 |
|
|
— |
|
|
100 |
|
|
100.0 |
% |
Add: Asset retirement obligation
expense |
|
137 |
|
|
121 |
|
|
16 |
|
|
13.2 |
% |
Add: Bad debt write off |
|
152 |
|
|
— |
|
|
152 |
|
|
100.0 |
% |
Add: Series A and B Preferred
Stock offering costs write off |
|
2,674 |
|
|
— |
|
|
2,674 |
|
|
100.0 |
% |
Less: Write off of debt
discount |
|
— |
|
|
(49 |
) |
|
49 |
|
|
(100.0 |
)% |
Core funds from
operations available to common stockholders and Non-controlling OP
Unitholders - basic |
|
$ |
49,786 |
|
|
$ |
46,086 |
|
|
$ |
3,700 |
|
|
8.0 |
% |
Add: Convertible senior common
distributions |
|
892 |
|
|
931 |
|
|
(39 |
) |
|
(4.2 |
)% |
Core funds from
operations available to common stockholders and Non-controlling OP
Unitholders - diluted |
|
$ |
50,678 |
|
|
$ |
47,017 |
|
|
$ |
3,661 |
|
|
7.8 |
% |
|
|
|
|
|
|
|
|
|
Share and Per Share
Data: |
|
|
|
|
|
|
|
|
Net (loss) income (attributable)
available to common stockholders and Non-controlling OP Unitholders
- basic & diluted |
|
(0.16 |
) |
|
0.03 |
|
|
(0.19 |
) |
|
(633.3 |
)% |
FFO available to common
stockholders and Non-controlling OP Unitholders - basic |
|
1.47 |
|
|
1.59 |
|
|
(0.12 |
) |
|
(7.5 |
)% |
FFO available to common
stockholders and Non-controlling OP Unitholders - diluted |
|
1.46 |
|
|
1.58 |
|
|
(0.12 |
) |
|
(7.6 |
)% |
FFO available to common
stockholders and Non-controlling OP Unitholders - diluted, as
adjusted for comparability |
|
1.55 |
|
|
1.58 |
|
|
(0.03 |
) |
|
(1.9 |
)% |
Core FFO available to common
stockholders and Non-controlling OP Unitholders - basic |
|
1.59 |
|
|
1.60 |
|
|
(0.01 |
) |
|
(0.6 |
)% |
Core FFO available to common
stockholders and Non-controlling OP Unitholders - diluted |
|
1.58 |
|
|
1.59 |
|
|
(0.01 |
) |
|
(0.6 |
)% |
Weighted average shares of common
stock and Non-controlling OP Units outstanding - basic |
|
31,396,826 |
|
|
28,804,167 |
|
|
2,592,659 |
|
|
9.0 |
% |
Weighted average shares of common
stock and Non-controlling OP Units outstanding - diluted |
|
32,071,437 |
|
|
29,528,503 |
|
|
2,542,934 |
|
|
8.6 |
% |
Cash dividends declared per
common share and Non-controlling OP Unit |
|
$ |
1.50 |
|
|
$ |
1.50 |
|
|
$ |
— |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
Financial
Position |
|
|
|
|
|
|
|
|
Real estate, before accumulated depreciation |
|
$ |
1,064,389 |
|
(3 |
) |
$ |
949,822 |
|
(5 |
) |
$ |
114,567 |
|
|
12.1 |
% |
Total assets |
|
$ |
1,039,508 |
|
|
$ |
938,775 |
|
|
$ |
100,733 |
|
|
10.7 |
% |
Mortgage notes payable, term
preferred stock, term loan facility & line of credit, net |
|
$ |
626,594 |
|
|
$ |
566,059 |
|
|
$ |
60,535 |
|
|
10.7 |
% |
Total equity and mezzanine
equity |
|
$ |
363,190 |
|
|
$ |
340,017 |
|
|
$ |
23,173 |
|
|
6.8 |
% |
Properties owned |
|
118 |
|
(3 |
) |
101 |
|
(5 |
) |
17 |
|
|
16.8 |
% |
Square feet owned |
|
14,242,008 |
|
(3 |
) |
11,726,996 |
|
(5 |
) |
2,515,012 |
|
|
21.4 |
% |
Square feet leased |
|
97.0 |
% |
|
99.1 |
% |
|
(2.1 |
)% |
|
(2.1 |
)% |
(1) Includes a $1.8 million impairment charge recognized on one
property during the year ended December 31, 2019.(2) Includes
a $3.0 million gain on sale, net, from one property sale during the
year ended December 31, 2019.(3) Includes one property
classified as held for sale of $7.4 million and 64,500 square
feet.(4) Includes a $2.8 million gain on sale, net, from three
property sales during the year ended December 31, 2018.(5)
Includes one property classified as held for sale of $3.2 million
and 50,000 square feet.
Highlights of Fiscal Year 2019:
- Acquired properties: Purchased 18
fully-occupied industrial properties, with an aggregate of
approximately 2.6 million square feet of rental space, for $130.3
million, at a weighted average cap rate of 7.7%;
- Sold properties: Sold one non-core property as
part of our capital recycling strategy for $6.9 million, resulting
in a net gain of $3.0 million;
- Renewed shelf registration: Renewed our shelf
registration statement to allow us to issue up to $500.0 million of
additional equity;
- Issued preferred stock: Issued 2,760,000
shares of newly designated 6.625% Series E Preferred Stock, raising
net proceeds of $66.6 million;
- Redeemed Series A and B Preferred Stock:
Redeemed all of our 7.75% Series A and 7.50% Series B Preferred
Stock for a total redemption payment of approximately $56.9
million;
- Issued stock under ATM Programs: Issued 3.0
million shares of common stock for net proceeds of $64.5
million;
- Amended, extended and upsized credit facility:
Increased our term loan from $75.0 million to $160.0 million,
inclusive of a delayed draw component, and increased our revolver
from $85.0 million to $100.0 million, while extending the maturity
date of our term loan for five years and extending the maturity
date of our revolver for four years. The LIBOR-based interest rate
was reduced by 10 basis points;
- Issued new debt: Borrowed $69.7 million in
fixed rate and swapped to fixed rate mortgage debt at a weighted
average interest rate of 3.9% with maturity dates ranging from June
1, 2024 to February 8, 2029;
- Repaid debt: Repaid $31.4 million in fixed
rate mortgage debt, with a weighted average interest rate of 4.6%,
with cash on hand and borrowings from our line of credit and repaid
$13.6 million of variable rate mortgage debt at a weighted average
rate of LIBOR plus 2.47%, for which we had an interest rate cap
agreement;
- Extended mortgage debt maturity dates:
Extended the maturity date on $12.6 million of variable rate
mortgage debt for a weighted average 2.4 years;
- Leased vacant space: Leased 68,768 square feet
of previously vacant space with lease terms ranging from 5 to 11.5
years at three of our properties;
- Renewed leases: Renewed 236,670 square feet
with lease terms ranging from 6.2 to 11.5 years at four of our
properties; and
- Paid distributions: Paid monthly cash
distributions for the year totaling $1.50 per share on our common
stock and Non-controlling OP Unit, $1.6038191 per share on our
Series A Preferred Stock, $1.552 per share on our Series B
Preferred Stock, $1.75 per share on our Series D Preferred Stock,
$0.404861 per share on our Series E Preferred Stock, and $1.05 per
share on our senior common stock. The Preferred Series A and Series
B cash distributions reflect prorated distributions through the
redemption date.
Fourth Quarter 2019 Results: Core FFO available
to common shareholders and Non-controlling OP Unitholders for the
quarter ended December 31, 2019 was $13.2 million, a 4.4%
increase when compared to the quarter ended September 30,
2019, equaling $0.40 per share. Core FFO increased primarily due to
an increase in total operating revenues from the nine properties
acquired during the quarter ended December 31, 2019, coupled
with a decrease in interest expense due to lower one-month LIBOR
rates on our variable rate debt. This was partially offset by an
increase in property operating expenses.
Fiscal Year 2019 Results: Core FFO available to
common stockholders and Non-controlling OP Unitholders for the year
ended December 31, 2019, was $50.7 million, a 7.8% increase
when compared to the year ended December 31, 2018, equaling
$1.58 per share. On a per share basis, this equates to a 0.6%
decrease to Core FFO. Core FFO increased primarily due to the
increase in rental income from 2019 acquisitions and re-leased
vacant space, partially offset by an increase in net property
operating expenses and an increase in interest expense.
Net loss attributable to common stockholders and Non-controlling
OP Unitholders for the three months and year ended
December 31, 2019 was $(5.4) million and $(4.8) million, or
$(0.18) and $(0.16) per share, respectively, compared to net (loss)
income (attributable) available to common stockholders for the
three months ended September 30, 2019 and year ended
December 31, 2018 of $(0.6) million and $1.0 million, or
$(0.02) and $0.03 per share, respectively. A reconciliation of Core
FFO to net (loss) income for the three months ended
December 31, 2019 and September 30, 2019 and the years
ended December 31, 2019 and 2018, which we believe is the most
directly comparable GAAP measure to Core FFO, and a computation of
basic and diluted Core FFO per weighted average share of common
stock and Non-controlling OP Unit and basic and diluted net income
per weighted average share of common stock and Non-controlling OP
Unit is set forth in the Summary Information table above.
Subsequent to the end of the quarter:
- Acquired properties: Acquired a $5.3 million
industrial property located in Indianapolis, Indiana at a cap rate
of 7.24%, which is 100% leased to three tenants for a weighted
average lease term of 7.2 years and also acquired a $34.7 million
three property industrial portfolio with locations in Houston,
Texas; Charlotte, North Carolina; and St. Charles, Missouri, at a
cap rate of 7.59%, which is 100% leased to one tenant for a 20 year
lease term;
- Issued stock under ATM programs: Issued 1.3
million shares of common stock for net proceeds of $27.9
million;
- Renewed leases: Renewed a tenant in one of our
Springfield, Missouri properties for an additional five years, with
a new maturity date of May 31, 2026 and renewed our tenant in our
Englewood, Colorado property for an additional five years, with a
new maturity date of December 31, 2026;
- Filed universal shelf: Filed an additional
universal registration statement which allows us to issue up to an
additional $800.0 million of securities;
- Declared distributions: Declared monthly cash
distributions for January, February and March 2020 totaling
$0.37545 per share on our common stock and Non-controlling OP Unit,
$0.4374999 per share on our Series D Preferred Stock, $0.414063 per
share on our Series E Preferred Stock, and $0.2625 per share on our
senior common stock.
Comments from Gladstone Commercial’s President, Bob
Cutlip: “Our financial results reflect consistent
performance and stabilized revenues from our tremendous same store
property occupancy and rent growth, accretive real estate
investments made during 2018 and 2019, and our ability to lease
previously vacant space as well as our deleveraging and capital
recycling programs. We have successfully executed our focus on
industrial assets, by investing $130.3 million in 18 industrial
properties in our target growth markets during 2019, and eclipsed
one billion dollars in assets. We have continued to expand our
industrial portfolio in 2020, by investing $40.0 million in four
industrial assets. We anticipate our robust pipeline will result in
successful acquisitions during the remainder of 2020 and beyond. We
have continued our capital recycling program, whereby we have sold
non-core assets and used the proceeds to de-lever our portfolio, as
well as acquire properties in our target growth markets. We
successfully exited one non-core asset during 2019, recognizing a
net gain of $3.0 million, and we anticipate exiting another
non-core asset during the first quarter of 2020. We are extremely
pleased with our solid performance over the last several years,
including same store cash rents increasing by approximately 2%. We
believe our same store rent should be stable and rising as we
continue our growth. We will continue to focus on investing in new
properties, with an emphasis on industrial acquisitions, which we
believe will improve operating efficiencies and reduce portfolio
capital expenditures. We are looking forward to continued growth
and success for our shareholders.”
Conference Call: Gladstone Commercial will hold
a conference call on Thursday, February 13, 2020, at 8:30 a.m. EST
to discuss its earnings results. Please call (888) 734-0328
to enter the conference call. An operator will monitor the
call and set a queue for questions. A conference call replay will
be available beginning one hour after the call and will be
accessible through February 20, 2020. To hear the replay,
please dial (855) 859-2056 and use playback conference number
6039117. The live audio broadcast of the Company’s quarterly
conference call will also be available on our website,
www.GladstoneCommercial.com, and will also be archived and
available for replay through April 13, 2020.
About Gladstone Commercial: Gladstone
Commercial Corporation is a real estate investment trust focused on
acquiring, owning, and operating net leased industrial and office
properties across the United States. Including payments
through January 2020, Gladstone Commercial has paid 180 consecutive
monthly cash distributions on its common stock. Prior to
paying distributions on a monthly basis, Gladstone Commercial paid
five consecutive quarterly cash distributions. The company has paid
46 consecutive monthly cash distributions on its Series D Preferred
Stock, and four consecutive monthly cash distributions on its
Series E Preferred Stock. Gladstone Commercial has never skipped,
reduced or deferred a distribution since its inception in 2003.
Further information can be found at
www.GladstoneCommercial.com.
About the Gladstone Companies: Information on
the business activities of all the Gladstone family of funds can be
found at www.gladstonecompanies.com.
Investor Relations: For
Investor Relations inquiries related to any of the monthly
distribution-paying Gladstone family of funds, please visit
www.gladstonecompanies.com.
Non-GAAP Financial Measures:
FFO: The National Association of Real Estate
Investment Trusts (“NAREIT”) developed FFO as a relative non-GAAP
supplemental measure of operating performance of an equity REIT in
order to recognize that income-producing real estate historically
has not depreciated on the basis determined under GAAP. FFO,
as defined by NAREIT, is net income (computed in accordance with
GAAP), excluding gains (or losses) from sales of property and
impairment losses on property, plus depreciation and amortization
of real estate assets, and after adjustments for unconsolidated
partnerships and joint ventures. FFO does not represent cash
flows from operating activities determined in accordance with GAAP
and should not be considered an alternative to net income as an
indication of its performance or to cash flow from operations as a
measure of liquidity or ability to make distributions. The
Company believes that FFO per share and unit provides investors
with an additional context for evaluating its financial performance
and as a supplemental measure to compare it to other REITs;
however, comparisons of its FFO to the FFO of other REITs may not
necessarily be meaningful due to potential differences in the
application of the NAREIT definition used by such other REITs.
FFO as adjusted for comparability: FFO as
adjusted for comparability is FFO adjusted for certain items that
are not indicative of the results provided by the Company’s
operating portfolio and affect the comparability of the Company’s
period-over-period performance. These items include the adjustment
for non-recurring expense adjustments related to the write off of
offering costs pertaining to redeemed securities. Although
the Company’s calculation of FFO as adjusted for comparability
differs from NAREIT’s definition of FFO and may not be comparable
to that of other REITs, the Company believes it is a meaningful
supplemental measure of its operating performance.
Accordingly, FFO as adjusted for comparability should be considered
a supplement to net income computed in accordance with GAAP as a
measure of our performance.
Core FFO: Core FFO is FFO adjusted for certain
items that are not indicative of the results provided by the
Company’s operating portfolio and affect the comparability of the
Company’s period-over-period performance. These items include the
adjustment for acquisition related expenses, gains or losses from
early extinguishment of debt and any other non-recurring expense
adjustments. Although the Company’s calculation of Core FFO
differs from NAREIT’s definition of FFO and may not be comparable
to that of other REITs, the Company believes it is a meaningful
supplemental measure of its operating performance.
Accordingly, Core FFO should be considered a supplement to net
income computed in accordance with GAAP as a measure of our
performance.
The Company’s presentation of FFO, as defined by NAREIT, FFO as
adjusted for comparability, or presentation of Core FFO, does not
represent cash flows from operating activities determined in
accordance with GAAP and should not be considered an alternative to
net income as an indication of its performance or to cash flow from
operations as a measure of liquidity or ability to make
distributions.
The statements in this press release regarding the forecasted
stability of Gladstone Commercial’s income, its ability, plans or
prospects to re-lease its unoccupied properties, and grow its
portfolio are “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. These
forward-looking statements inherently involve certain risks and
uncertainties, although they are based on Gladstone Commercial’s
current plans that are believed to be reasonable as of the date of
this press release. Factors that may cause actual results to
differ materially from these forward-looking statements include,
but are not limited to, Gladstone Commercial’s ability to raise
additional capital; availability and terms of capital and
financing, both to fund its operations and to refinance its
indebtedness as it matures; downturns in the current economic
environment; the performance of its tenants; the impact of
competition on its efforts to renew existing leases or re-lease
space; and significant changes in interest rates. Additional
factors that could cause actual results to differ materially from
those stated or implied by its forward-looking statements are
disclosed under the caption “Risk factors” of its Form 10-K for the
fiscal year ended December 31, 2019, as filed with the SEC on
February 12, 2020. Gladstone Commercial cautions readers not to
place undue reliance on any such forward-looking statements, which
speak only as of the date made. Gladstone Commercial undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
CONTACT:
Gladstone Commercial Corporation
+1-703-287-5893
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