Gladstone Commercial Corporation Reports Results for the Quarter Ended June 30, 2018
Please note that the limited information that follows in this press release is not adequate to make an informed investment judgment.
Summary Information(dollars in thousands, except share and per share data):
|As of and for the three months ended|
|June 30, 2018||March 31, 2018||$ Change||% Change|
|Total operating revenue||$||26,593||$||26,353||$||240||0.9||%|
|Total operating expenses||(17,542||)||(17,402||)||(140||)||0.8||%|
|Other expense, net||(6,526||)||(4,346||)||(1)||(2,180||)||50.2||%|
|Less: Dividends attributable to preferred stock||(2,609||)||(2,582||)||(27||)||1.0||%|
|Less: Dividends attributable to senior common stock||(233||)||(232||)||(1||)||0.4||%|
|Net (loss) income (attributable) available to common stockholders||$||(317||)||$||1,791||$||(2,108||)||(117.7||)%|
|Add: Real estate depreciation and amortization||11,773||11,586||187||1.6||%|
|Less: Gain on sale of real estate||—||(1,844||)||1,844||100.0||%|
|Funds from operations available to common stockholders - basic||$||11,456||$||11,533||$||(77||)||(0.7||)%|
|Add: Convertible senior common distributions||233||232||1||0.4||%|
|Funds from operations available to common stockholders - diluted||$||11,689||$||11,765||$||(76||)||(0.6||)%|
|Funds from operations available to common stockholders - basic||11,456||11,533||(77||)||(0.7||)%|
|Add: Acquisition related expenses||67||19||48||252.6||%|
|Add: Write-off of deferred financing fees||—||6||(6||)||(100.0||)%|
|Less: Write off of debt discount||—||(49||)||49||100.0||%|
|Core funds from operations available to common stockholders - basic||$||11,523||$||11,509||$||14||0.1||%|
|Add: Convertible senior common distributions||233||232||1||0.4||%|
|Core funds from operations available to common stockholders - diluted||$||11,756||$||11,741||$||15||0.1||%|
|Share and Per Share Data:|
|Net (loss) income (attributable) available to common stockholders - basic and diluted||(0.01||)||0.06||(0.07||)||(116.7||)%|
|FFO available to common stockholders - basic||0.40||0.41||(0.01||)||(2.4||)%|
|FFO available to common stockholders - diluted||0.40||0.40||—||—||%|
|Core FFO available to common stockholders - basic||0.41||0.40||0.01||2.5||%|
|Core FFO available to common stockholders - diluted||0.40||0.40||—||—||%|
|Weighted average shares of common stock outstanding - basic||28,437,852||28,420,995||16,857||0.1||%|
|Weighted average shares of common stock outstanding - diluted||29,182,179||29,165,995||16,184||0.1||%|
|Cash dividends declared per common share||$||0.375||$||0.375||$||—||—||%|
|Real estate, before accumulated depreciation||$||907,636||(2)||$||906,971||(2)||$||665||0.1||%|
|Mortgage notes payable, net, borrowings under revolver, net & borrowings under term loan, net||$||542,461||$||544,328||$||(1,867||)||(0.3||)%|
|Total stockholders' and mezzanine equity||$||336,814||$||343,399||$||(6,585||)||(1.9||)%|
|Square feet owned||11,413,403||(2)||11,413,403||(2)||—||—||%|
|Square feet leased||99.1||%||99.1||%||—||%||—||%|
- Includes a
$1.8 milliongain on sale of real estate from two property sales.
- Includes one property classified as held for sale of
$2.3 million, which totals 150,000 square feet.
Second Quarter Activity:
- Extended mortgage debt maturity date: Extended the maturity date on two variable rate mortgage notes totaling
$13.0 millionfrom July 2018to July 2020;
- Issued stock under ATM programs: Issued 154,073 shares of common stock for net proceeds of
$2.9 millionand 50,124 shares of our Series D Preferred Stock for net proceeds of $1.2 million; and
- Paid distributions: Paid monthly cash distributions for the quarter totaling
$0.375per share on our common stock, $0.4843749per share on our Series A Preferred Stock, $0.46875per share on our Series B Preferred Stock, $0.4375per share on our Series D Preferred Stock, and $0.2625per share on our senior common stock.
Second Quarter 2018 Results: Core FFO available to common shareholders for the three months ended
Net loss attributable to common stockholders for the three months ended
Subsequent to the end of the quarter:
- Extended mortgage debt maturity date: Extended the maturity date on one variable rate mortgage note totaling
$4.0 millionfrom September 2018to September 2019;
- Entered acquisition negotiations: Entered contract negotiations to acquire a 156,000 square foot industrial property in the
- Issued stock under ATM programs: Issued 83,430 shares of common stock for net proceeds of
$1.6 million; and
- Declared distributions: Declared monthly cash distributions for July, August and
September 2018totaling $0.375per share on our common stock, $0.4843749per share on our Series A Preferred Stock, $0.46875per share on our Series B Preferred Stock, $0.4375per share on our Series D Preferred Stock, and $0.2625per share on our senior common stock.
Comments from Gladstone Commercial’s President,
About the Gladstone Companies: Information on the business activities of 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.gladstone.com.
Non-GAAP Financial Measures:
Core FFO: Core FFO is FFO adjusted for certain items that are not indicative of the results provided by Gladstone Commercial’s operating portfolio and affect the comparability of the company’s period-over-period performance. These items include the adjustment for gains or losses from early extinguishment of debt and any other non-recurring expense adjustments. Although Gladstone Commercial’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.
Gladstone Commercial’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 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 statementsinclude, 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
Gladstone Commercial Corporation
Source: Gladstone Commercial Corporation