Gladstone Commercial Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2014
Summary Information (dollars in thousands, except share and per share data):
As of and for the three months ended |
As of and for the three months ended |
Change | % Change | |
Operating Data: | ||||
Total operating revenue | $ 19,216 | $ 19,014 | $ 202 | 1.1% |
Total operating expenses | (10,970) | (11,457) | 487 | -4.3% |
Other expense | (2,082) | (7,328) | 5,246 | -71.6% |
Net income | $ 6,164 | $ 229 | $ 5,935 | 2591.7% |
Dividends attributable to preferred stock | (1,023) | (1,023) | -- | 0.0% |
Dividends attributable to senior common stock | (197) | (137) | (60) | 43.8% |
Net income (loss) available (attributable) to common stockholders | $ 4,944 | $ (931) | $ 5,875 | -631.0% |
Real estate depreciation and amortization | 7,758 | 7,516 | 242 | 3.2% |
Impairment charge | -- | 280 | (280) | NM(1) |
Funds from operations available to common stockholders | $ 12,702 | $ 6,865 | $ 5,837 | 85.0% |
Acquisition related expenses | 235 | 233 | 2 | 0.9% |
Gain on debt extinguishment | (5,274) | -- | (5,274) | NM(1) |
Core funds from operations available to common stockholders | $ 7,663 | $ 7,098 | $ 565 | 8.0% |
Share and Per Share Data: | ||||
Net (loss) income (attributable) available to common stockholders - basic & diluted | $ 0.36 | $ (0.05) | $ 0.41 | -820.0% |
FFO available to common stockholders - basic | $ 0.67 | $ 0.39 | $ 0.28 | 71.8% |
FFO available to common stockholders - diluted | $ 0.65 | $ 0.38 | $ 0.27 | 71.1% |
Core FFO available to common stockholders - basic | $ 0.40 | $ 0.40 | $ -- | 0.0% |
Core FFO available to common stockholders - diluted | $ 0.39 | $ 0.39 | $ -- | 0.0% |
Weighted average shares outstanding-basic | 18,939,994 | 17,739,084 | 1,200,910 | 6.8% |
Weighted average shares outstanding-diluted | 19,557,493 | 18,168,757 | 1,388,736 | 7.6% |
Cash dividends declared per common share | $ 0.375 | $ 0.375 | $ -- | 0.0% |
Financial Position: | ||||
Real estate, before accumulated depreciation | $ 722,565 | $ 700,574 | $ 21,991 | 3.1% |
Total assets | $ 787,794 | $ 759,407 | $ 28,387 | 3.7% |
Mortgage notes payable, term preferred stock and borrowings under the line of credit | $ 541,099 | $ 544,458 | $ (3,359) | -0.6% |
Total stockholders' equity | $ 217,672 | $ 189,196 | $ 28,476 | 15.1% |
Properties owned | 96 | 93(2) | 3 | 3.2% |
Square feet owned | 10,633,474 | 9,771,283(2) | 862,191 | 8.8% |
Square feet leased | 99.5% | 99.9% | -0.4% | -0.4% |
(1) NM = Not meaningful | ||||
(2) Does not include |
As of and for the year ended |
As of and for the year ended |
Change | % Change | |
Operating Data: | ||||
Total operating revenue | $ 73,756 | $ 61,343 | $ 12,413 | 20.2% |
Total operating expenses | (57,406) | (32,823) | (24,583) | 74.9% |
Other expense | (22,252) | (26,993) | 4,741 | -17.6% |
Net (loss) income | $ (5,902) | $ 1,527 | $ (7,429) | -486.5% |
Dividends attributable to preferred stock | (4,094) | (4,094) | -- | 0.0% |
Dividends attributable to senior common stock | (542) | (300) | (242) | 80.7% |
Net loss attributable to common stockholders | $ (10,538) | $ (2,867) | $ (7,671) | 267.6% |
Real estate depreciation and amortization | 28,864 | 22,827 | 6,037 | 26.4% |
Gain on sale of real estate | (1,240) | -- | (1,240) | NM(1) |
Impairment charge | 14,238 | -- | 14,238 | NM(1) |
Funds from operations available to common stockholders | $ 31,324 | $ 19,960 | $ 11,364 | 56.9% |
Acquisition related expenses | 1,438 | 768 | 670 | 87.2% |
Gain on debt satisfaction | (5,274) | -- | (5,274) | NM(1) |
Core funds from operations available to common stockholders | $ 27,488 | $ 20,728 | $ 6,760 | 32.6% |
Share and Per Share Data: | ||||
Net loss attributable to common stockholders - basic and diluted | $ (0.61) | $ (0.22) | $ (0.39) | 177.3% |
FFO available to common stockholders - basic | $ 1.82 | $ 1.52 | $ 0.30 | 19.8% |
FFO available to common stockholders - diluted | $ 1.77 | $ 1.49 | $ 0.28 | 18.8% |
Core FFO available to common stockholders - basic | $ 1.59 | $ 1.57 | $ 0.02 | 1.3% |
Core FFO available to common stockholders - diluted | $ 1.55 | $ 1.55 | $ -- | 0.0% |
Weighted average shares outstanding-basic | 17,253,503 | 13,164,244 | 4,089,259 | 31.1% |
Weighted average shares outstanding-diluted | 17,682,012 | 13,402,370 | 4,279,642 | 31.9% |
Cash dividends declared per common share | $ 1.50 | $ 1.50 | $ -- | 0.0% |
Financial Position: | ||||
Real estate, before accumulated depreciation | $ 722,565 | $ 642,353 | $ 80,212 | 12.5% |
Total assets | $ 787,794 | $ 690,525 | $ 97,269 | 14.1% |
Mortgage notes payable, term preferred stock and borrowings under the line of credit | $ 541,099 | $ 485,502 | $ 55,597 | 11.5% |
Total stockholders' equity | $ 217,672 | $ 183,146 | $ 34,526 | 18.9% |
Properties owned | 96 | 87 | 9 | 10.3% |
Square feet owned | 10,633,474 | 9,256,779 | 1,376,695 | 14.9% |
Square feet leased | 99.5% | 96.8% | 2.7% | 2.8% |
(1) NM = Not meaningful |
Highlights of 2014:
-
Acquired properties: Purchased 11 fully-occupied properties, comprised of an aggregate of approximately 2.1 million square feet of rental space, for
$134.5 million ; -
Expanded property: Expanded 1 existing property by approximately 150,000 square feet at a total project cost of
$5.6 million , and simultaneously extended the lease with the existing tenant by 10 years through 2034; -
Sold property: Sold property located in
Sterling Heights, Michigan for$11.4 million , resulting in a gain of$1.2 million ; -
Issued loan: Issued a
$5.6 million construction mortgage loan for a build-to-suit property, where we collect current interest at a fixed interest rate of 9.0%; -
Amended Line of Credit: Extended the Line of Credit for 1 year to
August 2017 and amended certain terms including reducing the applicable LIBOR margin by 25 basis points, increasing the borrowing capacity by$15.0 million to$75.0 million and increasing the total maximum commitment from$75.0 million to$100.0 million ; -
Issued and assumed debt: Borrowed and assumed a total of
$62.2 million in loans from 4 separate banks, which are collateralized by 8 properties at a weighted average fixed interest rate of 4.51% for periods ranging from 2 to 10 years; -
Entered into a New ATM Program: Entered into a
$100.0 million at-the-market, or ATM, common stock issuance and sale program withCantor Fitzgerald ; -
Issued common stock: Issued an aggregate of 3.9 million shares of common stock through an overnight offering and our ATM Programs, resulting in aggregate net proceeds of
$65.6 million ; - Extended leases: Extended the term of 5 leases that were set to expire in 2015;
-
Completed deed-in-lieu transaction: Exchanged our
Roseville, Minnesota property to the lender for satisfaction of$17.4 million in debt; -
Leased vacant properties: Executed a 3-year lease on our previously vacant
Richmond, Virginia property and executed a 7-year lease for 38% of ourBolingbrook, Illinois property, where the original tenant's lease expired onDecember 31, 2014 ; and -
Paid Distributions: Paid monthly cash distributions for the quarter totaling
$0.375 per share on our common stock,$0.4843749 per share on our Series A Preferred Stock,$0.46875 per share on our Series B Preferred Stock,$0.4453125 per share on our Series C Term Preferred Stock and$0.2625 per share on our senior common stock.
Fourth Quarter 2014 Results: Core FFO available to common shareholders for the three months ended
2014 Results: CoreFFO available to common stockholders for the year ended
Net income (loss) available (attributable) to common stockholders for the three months and year ended
Subsequent to the end of the quarter:
- Extended Leases: Extended the term of 2 leases that were set to expire in 2015 and 1 lease that was set to expire in 2016; and
-
Declared Distributions: Declared monthly cash distributions for January, February and
March 2015 totaling$0.375 per share on its common stock,$0.4843749 per share on its Series A Preferred Stock,$0.46875 per share on its Series B Preferred Stock,$0.4453125 per share on its Series C Term Preferred Stock and$0.2625 per share on its senior common stock.
Comments from the Company's President,
Conference Call: The Company will hold a conference call on
About
About the Gladstone Companies: Information on the business activities of all the Gladstone funds can be found at www.gladstonecompanies.com.
Investor Relations: For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstone.com.
Non-GAAP Financial Measures:
FFO:
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 property acquisitions costs, 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, 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 Company's ability, plans or prospects to re-lease its unoccupied properties, grow its portfolio, and negotiate to extend leases 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 the Company'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, the Company'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
CONTACT:Source:Gladstone Commercial Corporation , +1-703-287-5893
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