20 slides from Gladstone Commercial Corporation - Real Estate Investment Trust's earnings presentation, Feb 14, 2019
Slide 1: Supplemental Financial & Operating Information for the Quarter Ended December 31, 2018
Supplemental Financial & Operating Information for the Quarter Ended December 31, 2018 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 Q4 2018 highlights (unaudited) 6 Financial overview Condensed consolidated statements of operations 8 Funds from Operations (FFO) 9 Consolidated balance sheets 10 Capital structure 11 Liquidity and d
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 December 31, 2018, we owned approximately 11.7 million square feet of primarily off
Slide 5: Portfolio and financial overview
Portfolio and financial overview Portfolio data1 Top 5 tenants1 % of rent % of SF Total assets ($mm) $ 938.8 5% 3% Properties 101 Tenants 97 3% 1% Industries 19 3% 8% States 24 Average remaining lease term (years) 7.0 3% 1% Occupancy 99.1% 3% 1% Square footage owned (mm) 11.7 Top 5 Tenants total 17%
Slide 6: Q4 2018 highlights (unaudited)
Q4 2018 highlights (unaudited) FFO1 and Core FFO2: Generated FFO of $11.4 million, or $0.38 per diluted share, and generated core FFO of $11.7 million, or $0.39 per diluted share. Acquisition Activity: Purchased a 218,703 square foot, two property portfolio in Detroit, Michigan for $21.7 million wit
Slide 7: Financial Overview
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Slide 8: Condensed consolidated statements of operations
Condensed consolidated statements of operations ($ in thousands, except per share amounts) For the three months ended (unaudited) For the twelve months ended 12/31/2018 9/30/2018 12/31/2017 12/31/2018 12/31/2017 Operating revenues Rental revenue $ 26,248 $ 25,737 $ 24,564 $ 103,268 $ 92,811 Tenant r
Slide 9: Funds from Operations (FFO)
Funds from Operations (FFO) ($ in thousands, except per share amounts) For the three months ended (unaudited) For the twelve months ended 12/31/2018 9/30/2018 12/31/2017 12/31/2018 12/31/2017 Net income $ 2,517 $ 2,677 $ (1,463) $ 12,324 $ 5,937 Less: Distributions attributable to preferred and seni
Slide 10: Consolidated balance sheets
Consolidated balance sheets ($ in thousands) 12/31/2018 12/31/2017 ASSETS Real estate, at cost $ 946,649 $ 893,853 Less: accumulated depreciation 178,257 149,417 Total real estate, net 768,392 744,436 Lease intangibles, net 111,448 118,927 Real estate and related assets held for sale, net 4,151 9,04
Slide 11: Capital structure
Capital structure Current capital structure as of 12/31/2018 ($000) Capital Structure Details (Dollars in $000s, except stock price) Wtd. Average Rate 12/31/2018 Mortgage Notes Payable, Net 4.69% $ 441,346 $1,250,000 Less: Cash & Cash Equivalents (6,591) Net Mortgage Debt $ 434,755 Line of Credit L+
Slide 12: Liquidity and debt overview
Liquidity and debt overview Reducing Leverage1 Fixed vs. Floating Debt1 80% Floating Rate: 8.9% 70% 63.2% 59.3% 58.1% 56.9% 60% 48.6% 47.0% 46.8% Hedged Floating Rate: 50% 23.7% 40% 30% 20% Fixed Rate: 67.4% 2012 2013 2014 2015 2016 2017 2018 Net Debt/Gross Assets Debt maturity schedule1 ($000) Mort
Slide 13: Debt summary
Debt summary ($ in thousands) Weighted Average Principal Balance Principal Maturity Date Interest Rate as of Outstanding as of 12/31/2018 12/31/2018 2019 4.81% 48,905 2020 4.91% 22,194 2021 5.33% 18,072 2022 4.82% 99,515 2023 4.71% 69,648 2024 4.80% 14,296 2025 4.03% 34,326 2026 4.55% 42,690 2027 4.
Slide 14: Select corporate covenants
Select corporate covenants ($ in thousands) Description Threshold December 31, 2018 Consolidated Tangible Net Worth > $525,459 $619,163 Leverage Ratio < 60% 48% Debt Yield Ratio > 11% 15% Fixed Charge Coverage Ratio > 1.40 1.75 Maximum Dividend Payout (FFO based) < 100% 94% Secured Indebtedness < 50
Slide 15: Portfolio Overview
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Slide 16: Portfolio overview
Portfolio overview Geographic • 101 properties across the U.S. located in 24 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 101 properties spread across 24 states Geographic diversification (by rent) Northeast 16% Midwest 28% Southwest 24% Southeast 32% Property type diversification (by rent) Medical Office 2% Retail 3% Industrial 33% GOOD Properties « Target Markets Office 62% Note: As of 12/31/201
Slide 18: High quality, diversified portfolio
High quality, diversified portfolio Top 5 tenants % of rent % of SF Publicly-traded vs. privately-held tenants (as % of total rent) 5% 3% 3% 1% 3% 8% Private 46% 3% 1% Public 54% 3% 1% All other tenants 83% 86% Industry diversification (based on rent) Tenant credit ratings (as % of total rent) Telec
Slide 19: Smooth lease rollover
Smooth lease rollover Existing portfolio - contractual expirations Year of Lease SF of Leases Number of Expiring Annual Base Rental % of Annual Base Expiration Expiring Leases Revenue (in thousands) Revenue 2019 509,797 5 $ 3,725 3.6% 2020 841,211 11 10,588 10.3% 2021 585,223 13 9,014 8.8% 2022 446,
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