MCLEAN, Va., Nov. 4, 2013 /PRNewswire/ -- Gladstone
Commercial Corporation (NASDAQ: GOOD), or the Company, today
reported financial results for the third quarter ended September 30, 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,
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):
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As of and for
the
three months
ended
September 30,
2013
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As of and for
the
three months
ended
June 30,
2013
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Change
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% Change
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Operating
Data:
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Total operating
revenue
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$
16,190
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$
14,258
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$
1,932
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13.6%
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Total operating
expenses
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(8,639)
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(7,369)
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(1,270)
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17.2%
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Other
expense
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(7,242)
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(6,438)
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(804)
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12.5%
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Net
income
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$
309
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$
451
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$
(142)
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-31.5%
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Dividends
attributable to preferred stock
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(1,023)
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(1,023)
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-
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0.0%
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Dividends
attributable to senior common stock
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(83)
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(69)
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(14)
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20.3%
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Net loss available to
common stockholders
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$
(797)
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$
(641)
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$
(156)
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24.3%
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Real estate
depreciation and amortization
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6,253
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5,220
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1,033
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19.8%
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Funds from operations
available to common stockholders
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$
5,456
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$
4,579
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$
877
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19.2%
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Share and Per
Share Data:
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Net loss available to
common stockholders - basic
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$
(0.06)
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$
(0.05)
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$
(0.01)
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20.0%
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Net loss available to
common stockholders - diluted
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$
(0.06)
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$
(0.05)
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$
(0.01)
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20.0%
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FFO available to
common stockholders - basic
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$
0.38
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$
0.37
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$
0.01
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2.7%
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FFO available to
common stockholders - diluted
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$
0.38
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$
0.36
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$
0.02
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5.6%
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Weighted average
shares outstanding-basic
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14,196,423
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12,380,402
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1,816,021
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14.7%
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Weighted average
shares outstanding-diluted
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14,453,852
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12,576,161
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1,877,691
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14.9%
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Cash dividends
declared per common share
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$
0.375
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$
0.375
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$
-
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0.0%
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Financial
Position:
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Real estate, before
accumulated depreciation
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$
622,481
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$
564,952
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$
57,529
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10.2%
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Total
assets
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$
666,412
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$
594,140
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$
72,272
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12.2%
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Mortgage notes
payable, term preferred stock and borrowings under the line of
credit
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$
477,162
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$
408,940
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$
68,222
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16.7%
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Total stockholders'
equity
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$
164,857
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$
166,382
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$
(1,525)
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-0.9%
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Properties
owned
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85
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83
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2
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2.4%
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Square feet
owned
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9,000,782
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8,565,582
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435,200
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5.1%
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Square feet
leased
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96.7%
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96.0%
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0.7%
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0.8%
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Highlights of the Quarter, the Company:
- Acquired Properties: Purchased two fully-occupied
properties, comprised of an aggregate of 435,000 square feet of
rental space, for $72.2 million at a
weighted average cap rate of 8.5%;
- Issued Debt: Borrowed a total of $52.4 million from 3 separate banks, which are
collateralized by 3 of its properties at a weighted average fixed
interest rate of 4.7% for periods of 10 years each;
- Closed New Line of Credit: Closed on a new, $60.0 million unsecured line of credit with a 3
year term, and a 1-year extension option;
- Issued Common Stock: Issued shares of common stock under
our ATM program, resulting in total net proceeds of $1.5 million;
- Extended Leases: Extended the term of 3 leases that were
set to expire in 2014;
- Re-leased Vacant Property: Initiated a 10-year lease
with a new tenant for its previously vacant property located in
Hazelwood, Missouri; and
- Paid Distributions: Paid 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 July, August and September
2013.
Q3 2013 Results: FFO available to common stockholders for
the three months ended September 30,
2013, was $5.5 million, or
$0.38, a 19.2% increase when compared
to the three months ended June 30,
2013. FFO increased primarily due to the increase in
operating revenues derived from the two properties acquired this
quarter coupled with a full quarter of earnings from the two
properties acquired during the second quarter, which was partially
offset by an increase in interest expense due to the mortgage debt
issued at the beginning of the quarter coupled with a slight
increase in overall operating expenses.
Net loss available to common stockholders for the three months
ended September 30, 2013, was
$0.8 million, or $0.06 per share, compared to net loss available
to common stockholders for the prior quarter ended June 30, 2013, of $0.6
million, or $0.05 per
share. A reconciliation of FFO to net loss for both the
three months ended September 30, 2013
and June 30, 2013, 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 a substantial increase in revenues from our real
estate investments made during the quarter. We were able to
partially fund these investments with long-term debt and continue
to take advantage of the low interest rate environment. We also
continue to focus on maintaining our portfolio and working with our
existing tenants to extend the one remaining lease that is
scheduled to mature in 2014 and to re-lease vacant space in our
portfolio. We are looking forward to an active fourth quarter."
Subsequent to the End of the Quarter, the Company:
- 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 October, November and December 2013.
Conference Call: The Company will hold a conference call
on Tuesday, November 5, 2013, at
8:30 a.m. EST 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
December 5, 2013. To hear the
replay, please dial (877) 344-7529 and use conference number
10029504. 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
January 6, 2014.
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 October 2013, the Company has paid 106
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 94 consecutive monthly cash distributions on its Series A
Preferred Stock, 85 consecutive monthly cash distributions on its
Series B Preferred Stock, 21 consecutive monthly cash distributions
on its Series C Term Preferred Stock and 43 consecutive monthly
cash distributions on its senior common stock. The Company
has never skipped, reduced or deferred a distribution since
inception, over 10 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 September
30, 2013, as filed with the SEC today.
The statements in this press release regarding the Company's
ability, plans or prospects to re-lease its unoccupied properties,
maintain its portfolio, and renegotiate 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 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 and
under Item 1A, "Risk Factors," of its Form 10-Q for the three
months ended September 30, 2013, as
filed with the SEC on November 4,
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, except
as required by law.
SOURCE Gladstone Commercial Corporation