from Gladstone Commercial Corporation (NASDAQ:GOOD)
Gladstone Commercial Corporation Reports Results for the Second Quarter Ended June 30, 2024
Please note that the limited information that follows in this press release is not adequate to make an informed investment judgment.
MCLEAN, VA / ACCESSWIRE / August 6, 2024 / Gladstone Commercial Corporation (Nasdaq:GOOD) ("Gladstone Commercial" or the "Company") today reported financial results for the second quarter ended June 30, 2024. A description of funds from operations, or FFO, and Core FFO, both 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 Quarterly Report on Form 10-Q, which can be retrieved from the Investors section of our website at www.gladstonecommercial.com.
Summary Information (dollars in thousands, except share and per share data):
As of and for the three months ended | ||||||||||||||||||
June 30, 2024 | March 31, 2024 | $ Change | % Change | |||||||||||||||
Operating Data: | ||||||||||||||||||
Total operating revenue | $ | 37,057 | $ | 35,721 | $ | 1,336 | 3.7% | |||||||||||
Total operating expenses | (25,973 | ) | (23,315 | ) | (3) | (2,658 | ) | 11.4% | ||||||||||
Other expense, net | (9,484 | ) | (1) | (8,880 | ) | (4) | (604 | ) | 6.8% | |||||||||
Net income | $ | 1,600 | $ | 3,526 | $ | (1,926 | ) | (54.6)% | ||||||||||
Less: Dividends attributable to preferred stock | (3,116 | ) | (3,112 | ) | (4 | ) | 0.1% | |||||||||||
Less: Dividends attributable to senior common stock | (105 | ) | (105 | ) | - | -% | ||||||||||||
Less: Loss on extinguishment of Series F preferred stock | (4 | ) | (3 | ) | (1 | ) | 33.3% | |||||||||||
Net (loss) income (attributable) available to common stockholders and Non-controlling OP Unitholders | $ | (1,625 | ) | $ | 306 | $ | (1,931 | ) | (631.0)% | |||||||||
Add: Real estate depreciation and amortization | 16,015 | 13,326 | 2,689 | 20.2% | ||||||||||||||
Add: Impairment charge | - | 493 | (493 | ) | (100.0)% | |||||||||||||
Add: Loss on sale of real estate, net | 47 | - | 47 | 100.0% | ||||||||||||||
Less: Gain on sale of real estate, net | - | (283 | ) | 283 | (100.0)% | |||||||||||||
Less: Gain on debt extinguishment, net | - | (300 | ) | 300 | (100.0)% | |||||||||||||
Funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 14,437 | $ | 13,542 | $ | 895 | 6.6% | |||||||||||
Add: Convertible senior common distributions | 105 | 105 | - | -% | ||||||||||||||
Funds from operations available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 14,542 | $ | 13,647 | $ | 895 | 6.6% | |||||||||||
Funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 14,437 | $ | 13,542 | $ | 895 | 6.6% | |||||||||||
Add: Bad debt write off | 64 | - | 64 | 100.0% | ||||||||||||||
Add: Write off shelf registration statement costs and prepaid ATM costs | - | 183 | (183 | ) | (100.0)% | |||||||||||||
Add: Asset retirement obligation expense | 33 | 33 | - | -% | ||||||||||||||
Add: Realized loss on interest rate hedging instruments | - | 81 | (81 | ) | (100.0)% | |||||||||||||
Core funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 14,534 | $ | 13,839 | $ | 695 | 5.0% | |||||||||||
Add: Convertible senior common distributions | 105 | 105 | - | -% | ||||||||||||||
Core funds from operations available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 14,639 | $ | 13,944 | $ | 695 | 5.0% | |||||||||||
Share and Per Share Data: | ||||||||||||||||||
Net (loss) income (attributable) available to common stockholders and Non-controlling OP Unitholders - basic and diluted | $ | (0.04 | ) | $ | 0.01 | $ | (0.05 | ) | (500.0)% | |||||||||
FFO available to common stockholders and Non-controlling OP Unitholders - basic | $ | 0.36 | $ | 0.34 | $ | 0.02 | 5.9% | |||||||||||
FFO available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 0.36 | $ | 0.34 | $ | 0.02 | 5.9% | |||||||||||
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 | 40,553,113 | 40,314,124 | 238,989 | 0.6% | ||||||||||||||
Weighted average shares of common stock and Non-controlling OP Units outstanding - diluted | 40,895,360 | 40,656,371 | 238,989 | 0.6% | ||||||||||||||
Cash dividends declared per common share and Non-controlling OP Unit | $ | 0.30 | $ | 0.30 | $ | - | -% | |||||||||||
Financial Position | ||||||||||||||||||
Real estate, before accumulated depreciation | $ | 1,239,476 | (2) | $ | 1,230,541 | (5) | $ | 8,935 | 0.7% | |||||||||
Total assets | $ | 1,105,546 | $ | 1,105,157 | $ | 389 | -% | |||||||||||
Mortgage notes payable, net, borrowings under revolver, and borrowings under term loan, net | $ | 722,536 | $ | 719,356 | $ | 3,180 | 0.4% | |||||||||||
Total equity and mezzanine equity | $ | 315,862 | $ | 318,292 | $ | (2,430 | ) | (0.8)% | ||||||||||
Properties owned | 136 | (2) | 132 | (5) | 4 | 3.0% | ||||||||||||
Square feet owned | 16,825,776 | (2) | 16,702,090 | (5) | 123,686 | 0.7% | ||||||||||||
Square feet leased | 98.5 | % | 98.9 | % | (0.4 | )% | (0.4)% | |||||||||||
(1) Includes a $0.05 million loss on sale, net, from the sale of one property during the three months ended June 30, 2024. |
(2) Includes two properties classified as held for sale of $9.3 million and 26,331 square feet, in the aggregate. |
(3) Includes a $0.5 million impairment charge recognized on one property during the three months ended March 31, 2024. |
(4) Includes a $0.3 million gain on sale, net, from the sale of three properties and a $0.3 million gain on debt extinguishment, net, during the three months ended March 31, 2024. |
(5) Includes two properties classified as held for sale of $20.6 million and 705,288 square feet, in the aggregate. |
Second Quarter Activity:
Collected 100% of cash rents: Collected 100% of cash rents due during April, May, and June;
Acquired property: Purchased a five-property portfolio comprised of 142,125 square feet in the aggregate for $12.0 million at a cap rate of 12.3%;
Sold property: Sold one non-core property as part of our capital recycling program for $2.6 million;
Extended mortgage debt mat