from Gladstone Commercial Corporation (NASDAQ:GOOD)
Gladstone Commercial Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2023
Please note that the limited information that follows in this press release is not adequate to make an informed investment judgment.
MCLEAN, VA / ACCESSWIRE / February 21, 2024 / Gladstone Commercial Corporation (Nasdaq:GOOD) ("Gladstone Commercial" or the "Company") today reported financial results for the fourth quarter and year ended December 31, 2023. 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 found on the Investors 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, 2023 | September 30, 2023 | $ Change | % Change | |||||||||||||||
Operating Data: | ||||||||||||||||||
Total operating revenue | $ | 35,908 | $ | 36,464 | $ | (556 | ) | (1.5) | % | |||||||||
Total operating expenses | (28,136 | ) | (1) | (29,587 | ) | (4) | 1,451 | (4.9) | % | |||||||||
Other expense, net | (3,221 | ) | (2) | (5,085 | ) | (5) | 1,864 | (36.7) | % | |||||||||
Net income | $ | 4,551 | $ | 1,792 | $ | 2,759 | 154.0 | % | ||||||||||
Less: Dividends attributable to preferred stock | (3,106 | ) | (3,099 | ) | (7 | ) | 0.2 | % | ||||||||||
Less: Dividends attributable to senior common stock | (107 | ) | (108 | ) | 1 | (0.9) | % | |||||||||||
Add/Less: Gain (loss) on extinguishment of Series F preferred stock | 1 | (1 | ) | 2 | (200.0) | % | ||||||||||||
Net income (loss) available (attributable) to common stockholders and Non-controlling OP Unitholders | $ | 1,339 | $ | (1,416 | ) | $ | 2,755 | (194.6) | % | |||||||||
Add: Real estate depreciation and amortization | 13,731 | 12,485 | 1,246 | 10.0 | % | |||||||||||||
Add: Impairment charge | 5,719 | 6,754 | (1,035 | ) | (15.3) | % | ||||||||||||
Less: Gain on sale of real estate, net | (3,492 | ) | (4,696 | ) | 1,204 | (25.6) | % | |||||||||||
Less: Gain on debt extinguishment, net | (2,830 | ) | - | (2,830 | ) | 100.0 | % | |||||||||||
Funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 14,467 | $ | 13,127 | $ | 1,340 | 10.2 | % | ||||||||||
Add: Convertible senior common distributions | 107 | 108 | (1 | ) | (0.9) | % | ||||||||||||
Funds from operations available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 14,574 | $ | 13,235 | $ | 1,339 | 10.1 | % | ||||||||||
Funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 14,467 | $ | 13,127 | $ | 1,340 | 10.2 | % | ||||||||||
Add: Asset retirement obligation expense | 32 | 31 | 1 | 3.2 | % | |||||||||||||
Add: Loan defeasance costs | - | 130 | (130 | ) | (100.0) | % | ||||||||||||
Add: Realized loss on interest rate hedging instruments | - | 326 | (326 | ) | (100.0) | % | ||||||||||||
Core funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 14,499 | $ | 13,614 | $ | 885 | 6.5 | % | ||||||||||
Add: Convertible senior common distributions | 107 | 108 | (1 | ) | (0.9) | % | ||||||||||||
Core funds from operations available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 14,606 | $ | 13,722 | $ | 884 | 6.4 | % | ||||||||||
Share and Per Share Data: | ||||||||||||||||||
Net income (loss) available (attributable) to common stockholders and Non-controlling OP Unitholders - basic and diluted | 0.03 | (0.04 | ) | 0.07 | (175.0) | % | ||||||||||||
FFO available to common stockholders and Non-controlling OP Unitholders - basic | 0.36 | 0.33 | 0.03 | 9.1 | % | |||||||||||||
FFO available to common stockholders and Non-controlling OP Unitholders - diluted | 0.36 | 0.33 | 0.03 | 9.1 | % | |||||||||||||
Core FFO available to common stockholders and Non-controlling OP Unitholders - basic | 0.36 | 0.34 | 0.02 | 5.9 | % | |||||||||||||
Core FFO available to common stockholders and Non-controlling OP Unitholders - diluted | 0.36 | 0.34 | 0.02 | 5.9 | % | |||||||||||||
Weighted average shares of common stock and Non-controlling OP Units outstanding - basic | 40,309,714 | 40,309,463 | 251 | - | % | |||||||||||||
Weighted average shares of common stock and Non-controlling OP Units outstanding - diluted | 40,654,846 | 40,654,595 | 251 | - | % | |||||||||||||
Cash dividends declared per common share and Non-controlling OP Unit | $ | 0.30 | $ | 0.30 | $ | - | - | % | ||||||||||
Financial Position | ||||||||||||||||||
Real estate, before accumulated depreciation | $ | 1,261,715 | (3) | $ | 1,279,332 | (6) | $ | (17,617 | ) | (1.4) | % | |||||||
Total assets | $ | 1,133,471 | $ | 1,167,156 | $ | (33,685 | ) | (2.9) | % | |||||||||
Mortgage notes payable, net, borrowings under revolver, and borrowings under term loan, net | $ | 738,861 | $ | 749,009 | $ | (10,148 | ) | (1.4) | % | |||||||||
Total equity and mezzanine equity | $ | 324,307 | $ | 346,627 | $ | (22,320 | ) | (6.4) | % | |||||||||
Properties owned | 135 | (3) | 135 | (6) | - | - | % | |||||||||||
Square feet owned | 17,059,269 | (3) | 17,160,398 | (6) | (101,129 | ) | (0.6) | % | ||||||||||
Square feet leased | 96.8 | % | 96.6 | % | 0.2 | % | 0.2 | % | ||||||||||
(1) Includes a $5.7 million impairment charge recognized on three properties during the three months ended December 31, 2023.
(2) Includes a $3.5 million gain on sale, net, from the sale of two properties and a $2.8 million gain on debt extinguishment, net, during the three months ended December 31, 2023.
(3) Includes three properties classified as held for sale of $40.4 million and 946,801 square feet, in the aggregate.
(4) Includes a $6.8 million impairment charge recognized on one property during the three months ended September 30, 2023.
(5) Includes a $4.7 million gain on sale, net, from the sale of three properties during the three months ended September 30, 2023.
(6) Includes four properties classified as held for sale of $52.9 million and 509,528 square feet, in the aggregate.
| As of and for the year ended | ||||||||||||||||||
| December 31, 2023 | December 31, 2022 | $ Change | % Change | |||||||||||||||
Operating Data: | ||||||||||||||||||