Gladstone Commercial Corporation Provides Corporate Update

About this update from Gladstone Commercial Corporation - Real Estate Investment Trust

[{"type":"text","content":"MCLEAN, Va., March 24, 2020 (GLOBE NEWSWIRE) -- Gladstone Commercial Corporation (Nasdaq: GOOD) (“Gladstone Commercial”) announced today that its Executive Leadership has issued the following Letter to Shareholders.\n To Our Shareholders, We wanted to provide you with a corporate update surrounding the COVID-19 pandemic, which has weighed on global financial markets and heavily impacted businesses. Our investment process has yielded a high-quality, diversified portfolio of properties. As of today, Gladstone Commercial’s investment portfolio consists of 122 properties leased to 108 different tenants in 19 different industries. Our investment teams have invested over $1 billion of capital utilizing a credit-based approach that has resulted in a current occupancy of 98%. Since our IPO in 2003, our occupancy has never been below 96%. Over 84% of our annual rental revenue is derived from tenants that each represent on average less than 1% of our revenue. The remaining 16% of our annual rental revenue is derived from investment grade or investment grade equivalent tenants, or subsidiaries of investment grade companies. Our tenants in the Hospitality, Airlines and Oil & Gas industries comprise approximately 2.6% of our annual rental revenue. Gladstone Commercial has had only one tenant default in our history, an average annual default rate of less than 0.02% inclusive of the Great Financial Crisis of 2008-2010. As a result, we have never reduced our dividend to shareholders. We have now paid Common Stock dividends for 182 consecutive months. Prior to paying dividends on a monthly basis, we paid Common Stock dividends for five consecutive quarters. We have also routinely paid all our Preferred Stock dividends without reduction. While no one can predict the outcome of the COVID-19 outbreak, we own and manage a stable and diversified portfolio of properties. As of today, we have received calls from two tenants representing approximately 2% of annual rental revenue stating that the COVID-19 pandemic may have a potential impact on their ability to meet their contractual obligations to us. We will continue to update our investors as events warrant. Our balance sheet has been structured conservatively. Gladstone has de-levered its balance sheet while maintaining substantial liquidity. From 2012 through 2019 we reduced our book leverage from 6...

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