Gladstone Commercial Corporation - Real Estate Investment Trust · NASDAQ:GOOD
Gladstone Commercial Corporation - Real Estate Investment Trust — Gladstone Commercial — Q1 2020 Earnings Presentation
20 slides from Gladstone Commercial Corporation - Real Estate Investment Trust's earnings presentation, Apr 29, 2020
Slide 1: Supplemental Financial & Operating Information for the Quarter Ended March 31, 2020
Supplemental Financial & Operating Information for the Quarter Ended March 31, 2020 1
Slide 2: Legal disclaimer
Legal disclaimer Forward-Looking Statements: This presentation may include forward-looking statements within the meaning of the Securities Act of 1933 or the Securities Exchange Act of 1934. Forward-looking statements are typically identified by words such as “estimate,” “may,” “might,” “believe,” “
Slide 3: Table of contents
Table of contents About Gladstone Commercial Corporate overview 4 Portfolio and financial overview 5 Q1 2020 highlights (unaudited) 6 Financial overview Condensed consolidated statements of operations 8 Funds from Operations (FFO) 9 Condensed consolidated balance sheets 10 Capital structure 11 Liqui
Slide 4: Corporate overview
Corporate overview About Gladstone Commercial Gladstone Commercial (Nasdaq: GOOD) is an established real estate investment trust (REIT) that invests in single tenant and anchored multi-tenant net leased assets. As of March 31, 2020, we owned approximately 15.1 million square feet of primarily office
Slide 5: Portfolio and financial overview
Portfolio and financial overview % of annualized Portfolio data1 Top 5 tenants1 straight line rent % of SF Total assets ($mm) $ 1,098.8 4% 2% Properties 122 Tenants 106 3% 6% Industries 19 3% 1% States 28 Average remaining lease term (years) 7.5 3% 1% Occupancy 96.6% 2% 1% Square footage owned (mm)
Slide 6: Q1 2020 highlights (unaudited)
Q1 2020 highlights (unaudited) FFO1 and Core FFO2: Generated FFO and core FFO of $13.7 million and $13.8 million, respectively, or $0.39 and $0.40 per diluted share, respectively. Acquisition Activity3: Purchased a 64,800 square foot property in Indianapolis, Indiana for $5.2 million with a 7.2 year
Slide 7: Financial Overview
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Slide 8: Condensed consolidated statements of operations
Condensed consolidated statements of operations ($ in thousands, except per share amounts) For the three months ended (unaudited) 3/31/2020 12/31/2019 3/31/2019 Operating revenues Lease revenue $ 33,619 $ 29,386 $ 28,137 Total operating revenues $ 33,619 $ 29,386 $ 28,137 Operating expenses Deprecia
Slide 9: Funds from Operations (FFO)
Funds from Operations (FFO) ($ in thousands, except per share amounts) For the three months ended (unaudited) 3/31/2020 12/31/2019 3/31/2019 Net income $ 2,258 $ 472 $ 4,673 Less: Distributions attributable to preferred and senior common stock (2,886) (5,877) (2,836) Net (loss) income (attributable)
Slide 10: Condensed consolidated balance sheets
Condensed consolidated balance sheets (unaudited) ($ in thousands) 3/31/2020 12/31/2019 ASSETS Real estate, at cost $ 1,123,644 $ 1,056,978 Less: accumulated depreciation 216,547 207,523 Total real estate, net 907,097 849,455 Lease intangibles, net 122,036 115,465 Real estate and related assets held
Slide 11: Capital structure
Capital structure Current capital structure as of 3/31/2020 ($000) Capital Structure Details (Dollars in $000s, except stock price) Wtd. Average Rate 3/31/2020 Mortgage Notes Payable, Net 4.32% $ 486,315 $1,500,000 Less: Cash & Cash Equivalents (9,853) Net Mortgage Debt $ 476,462 Line of Credit L+1.
Slide 12: Liquidity and debt overview
Liquidity and debt overview Reducing Leverage1 Fixed vs. Floating Debt1 80% Floating Rate: 3.3% 70% 63.2% 59.3% 58.1% 56.9% 60% Hedged Floating Rate: 48.6% 47.0% 46.8% 46.1% 46.5% 50% 30.4% 40% 30% 20% Fixed Rate: 66.3% 2012 2013 2014 2015 2016 2017 2018 2019 Q1 2020 Net Debt/Gross Assets Debt matur
Slide 13: Debt summary
Debt summary ($ in thousands) Weighted Average Principal Balance Principal Maturity Date Interest Rate as of Outstanding as of 3/31/2020 3/31/2020 2020 3.19% 19,381 2021 4.67% 27,263 2022 4.74% 103,963 2023 4.50% 67,718 2024 4.04% 44,180 2025 4.03% 33,409 2026 4.42% 49,580 2027 4.36% 86,314 2028 5.3
Slide 14: Select corporate covenants
Select corporate covenants ($ in thousands) Description Threshold March 31, 2020 Consolidated Tangible Net Worth > $549,586 $709,258 Leverage Ratio < 60% 49% Debt Yield Ratio > 11% 14% Fixed Charge Coverage Ratio > 1.45 1.78 Maximum Dividend Payout (FFO based) < 98% 95% Secured Indebtedness < 45% 35
Slide 15: Portfolio Overview
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Slide 16: Portfolio overview
Portfolio overview Geographic • 122 properties across the U.S. located in 28 states diversity • Focus on secondary growth markets with higher yields • Diverse base of 19 different industries and primarily office and industrial property Tenant and types property diversity • Focus on mid-size tenants
Slide 17: Diversified portfolio
Diversified portfolio Geographic diversification 122 properties spread across 28 states (by annualized straight line rent) Northeast 14% Midwest 27% Southwest 27% Southeast 32% Property type diversification (by annualized straight line rent) Medical Office 2% Retail 3% Industrial 41% Office 54% Note
Slide 18: High quality, diversified portfolio
High quality, diversified portfolio % of annualized Publicly-traded vs. privately-held tenants Top 5 tenants % of SF (as % of annualized straight line rent) straight line rent 4% 2% 3% 6% 3% 1% Private 50% Public 50% 3% 1% 2% 1% All other tenants 85% 89% Industry diversification Tenant credit rating
Slide 19: Smooth lease rollover
Smooth lease rollover Existing portfolio - contractual expirations Year of Lease SF of Leases Number of Expiring Annualized Straight Line % of Annualized Expiration Expiring Leases Rent (in thousands) Straight Line Rent 2020 622,999 5 $ 6,367 5.5% 2021 390,685 11 5,788 5.0% 2022 446,457 8 6,288 5.5%
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