MCLEAN, Va., April 29, 2013 /PRNewswire/ -- Gladstone
Commercial Corporation (NASDAQ: GOOD), or the Company, today
reported financial results for the first quarter ended March 31, 2013. A description of funds from
operations, or FFO, a relative non-GAAP (generally accepted
accounting principles in the United
States) financial measure, is located at the end of this
press release. All per share references are to fully-diluted
weighted average shares of common stock, unless otherwise noted.
Please read the Company's Quarterly Report on Form 10-Q, or
the Form 10-Q, filed today with the U.S. Securities and Exchange
Commission, or the SEC, which can be retrieved from the SEC's
website at www.sec.gov or from the Company's website at
www.GladstoneCommercial.com.
(Logo:
http://photos.prnewswire.com/prnh/20101005/GLADSTONECOMMERCIAL)
Summary Information (dollars in thousands, except per
share data):
|
As of and
for the three months ended March
31,
|
|
2013
|
|
2012
|
|
|
|
|
Operating Data:
|
|
|
|
Total
operating revenue
|
$
14,035
|
|
$
12,100
|
Total
operating expenses
|
(7,273)
|
|
(5,797)
|
Other
expense
|
(6,329)
|
|
(5,002)
|
Net
income
|
$
433
|
|
$
1,301
|
Dividends
attributable to preferred stock
|
(1,023)
|
|
(1,023)
|
Dividends
attributable to senior common stock
|
(53)
|
|
(19)
|
Net (loss)
income available to common stockholders
|
$
(643)
|
|
$
259
|
Real
estate depreciation and amortization
|
4,901
|
|
3,904
|
Funds from
operations available to common stockholders
|
$
4,258
|
|
$
4,163
|
|
|
|
|
|
|
|
|
Share
and Per Share Data:
|
|
|
|
Net (loss)
income available to common stockholders - basic
|
$
(0.06)
|
|
$
0.02
|
Net (loss)
income available to common stockholders - diluted
|
$
(0.06)
|
|
$
0.02
|
FFO
available to common stockholders - basic
|
$
0.38
|
|
$
0.38
|
FFO
available to common stockholders - diluted
|
$
0.37
|
|
$
0.38
|
Weighted
average shares outstanding-basic
|
11,230,647
|
|
10,945,379
|
Weighted
average shares outstanding-diluted
|
11,362,666
|
|
11,006,597
|
Cash
dividends declared per common share
|
$
1.50
|
|
$
1.50
|
|
|
|
|
|
|
|
|
As
of:
|
|
|
|
Real
estate, before accumulated depreciation
|
$
538,509
|
|
$
452,161
|
Total
assets
|
569,198
|
|
467,974
|
Mortgage
notes payable, term preferred stock and borrowings under the line
of credit
|
425,935
|
|
320,565
|
Total
stockholders' equity
|
123,648
|
|
131,671
|
Properties
owned
|
81
|
|
73
|
Square
feet owned
|
8,073,049
|
|
7,123,922
|
Square
feet leased
|
95.8%
|
|
98.7%
|
Highlights of the Quarter, the Company:
- Acquired Property: Purchased one fully-occupied
property, comprised of 29,257 square feet of rental space, for
$5.7 million;
- Issued Debt: Borrowed $3.7
million in a mortgage, which is collateralized by 1 of its
properties, at an interest rate of 4.16% for 10 years;
- Extended Leases: Extended the term of one lease for 11
years;
- Issued Common Stock: Issued common stock under its
At-The-Market, or ATM program, resulting in net proceeds of
$5.5 million; and
- Paid Distributions: Paid monthly distributions for the
quarter totaling $0.375 per share on
the common stock, $0.4843749 per
share on the Series A Preferred Stock, $0.46875 per share on the Series B Preferred
Stock, $0.4453125 per share on the
Series C Term Preferred Stock and $0.2625 per share on the Senior Common
Stock.
Q1 2013 Results: FFO available to common stockholders for
the three months ended March 31,
2013, was $4.3 million, or
$0.37, a 2.3% increase when compared
to the same period one year ago. FFO increased primarily due
to the increase in operating revenues derived from the eight
properties acquired in the past 12 months, partially offset by an
increase in interest expense from the mortgage debt issued and
assumed in the past 12 months coupled with distributions
attributable to the Series C Term Preferred Stock, which was not
outstanding the full 3 months ended March
31, 2012 and an increase in property operating expenses
during the quarter from our vacant properties.
Net (loss) income available to common stockholders for the three
months ended March 31, 2013, was
($0.6) million, or ($0.06) per share, compared to net income
available to common stockholders for the three months ended
March 31, 2012, of $0.3 million, or $0.02 per share. A reconciliation of
FFO to net income for the three months ended March 31, 2013 and 2012, which the Company
believes is the most directly comparable GAAP measure to FFO, and a
computation of basic and diluted FFO per weighted average share of
common stock and basic and diluted net income per weighted average
share of common stock is set forth in the Summary Information table
above.
Comments from the Company's President, Bob Cutlip: "Our financial results for the
quarter reflect increased revenues from our real estate investments
made during the last quarter of 2012. We were pleased that we
closed on one property at the end of the quarter. We continue
to have a strong acquisition pipeline and expect an active second
quarter. We also continue to focus on maintaining our
portfolio and working with our existing tenants to extend the few
leases that are scheduled to mature in 2014 and to re-lease vacant
space in our portfolio. We are looking forward to an active
2013."
Subsequent to the End of the Quarter, the Company:
- Issued Common Stock: Issued 1,265,000 shares of common
stock pursuant to an overnight offering, resulting in net proceeds
of $22.6 million;
- Expanded Property: Expanded one of its existing
properties by 102,400 square feet for $3.3
million, and simultaneously extended the lease by 8
years;
- Extended Lease: Extended the term of a lease for 10
years;
- Re-leased Vacant Property: Executed a lease with a new
tenant for one of its previously vacant properties; and
- Declared Distributions: Declared monthly cash
distributions of $0.125 per share on
its common stock, $0.1614583 per
share on its Series A Preferred Stock, $0.15625 per share on its Series B Preferred
Stock, $0.1484375 per share on its
Series C Term Preferred Stock and $0.0875 per share on its senior common stock, for
each of April, May and June 2013.
Conference Call: The Company will hold a conference call
on Tuesday, April 30, 2013, at
8:30 a.m. EDT to discuss its earnings
results. Please call (800) 860-2442 to enter the
conference. An operator will monitor the call and set a queue
for any questions. A conference call replay will be available
beginning one hour after the call and will be accessible through
May 30, 2013. To hear the
replay, please dial (877) 344-7529 and use conference number
10026574. The live audio broadcast of the Company's quarterly
conference call will also be available online at the Company's
website, www.GladstoneCommercial.com. The event will also be
archived and available for replay on the Company's website through
June 28, 2013.
About Gladstone Commercial: Gladstone Commercial
Corporation is a real estate investment trust that invests in and
owns net leased industrial, commercial and retail real property and
selectively makes long-term industrial and commercial mortgage
loans. Including payments through April 2013, the Company has paid 100 consecutive
monthly cash distributions on its common stock. Prior to
paying distributions on a monthly basis, the Company paid 5
consecutive quarterly cash distributions. The Company has also paid
88 consecutive monthly cash distributions on its Series A Preferred
Stock, 79 consecutive monthly cash distributions on its Series B
Preferred Stock, 15 consecutive monthly cash distributions on its
Series C Term Preferred Stock and 39 consecutive monthly cash
distributions on its senior common stock. The Company has
never skipped, reduced or deferred a distribution since inception,
over nine years ago. Further information on the Company can
be found at www.gladstonecommercial.com.
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 Measure – 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 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. To learn more about FFO, please refer to the Company's
Form 10-Q for the quarter ended March 31,
2013, as filed with the SEC today.
The statements in this press release regarding the Company's
ability, plans or prospects to re-tenant its unoccupied
properties, maintain or grow its portfolio and FFO,
renegotiate leases, and deploy additional capital 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 our operations and to refinance our
indebtedness as it matures; the duration of, or further 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, 2012, as filed with the SEC on
February 19, 2013. The Company
cautions readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made.
The Company undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
SOURCE Gladstone Commercial Corporation