Gladstone Commercial Corporation - Real Estate Investment Trust · NASDAQ:GOOD
Gladstone Commercial Corporation - Real Estate Investment Trust — Gladstone Commercial — IPO Roadshow (June 2020)
33 slides from Gladstone Commercial Corporation - Real Estate Investment Trust's IPO roadshow presentation, Jun 29, 2020
Slide 1: Series F Cumulative Redeemable Preferred Stock Offering
Filed pursuant to Rule 433 Registration Statement No. 333-236143 $500,000,000 Series F Cumulative Redeemable Preferred Stock Offering As of May 2020Filed pursuant to Rule 433 Registration Statement No. 333-236143 $500,000,000 Series F Cumulative Redeemable Preferred Stock Offering As of May 2020
Slide 2: Legal Disclaimer
Legal Disclaimer Estimates: This presentation contains industry and market data, forecasts, and projections that are based on internal data and estimates, independent industry publications, reports by market research firms, or other published independent sources. We believe these data to be reliable
Slide 3: Risk Factors
Risk Factors Please consult the prospectus supplement for this offering for a recitation of the risk factors of this offering. If any of the risks contained in or incorporated by reference into the prospectus supplement or the accompanying prospectus develop into actual events, our business, financi
Slide 4: Risk Factors
Risk Factors • You will experience dilution in your ownership percentage of the Shares if you do not participate in the dividend reinvestment plan. • Our charter contains restrictions upon ownership and transfer of the Shares, which may impair the ability of holders to acquire the Shares. • Holders
Slide 5: Offering Summary
Offering Summary Up to $500 million Series F Preferred Stock offering of a public REIT • - Common stock has traded on Nasdaq under ticker “GOOD” since the 2003 IPO Offering - Additional $150 million, or 6 million shares of Series F Preferred Shares (the “Shares”), offered through the Dividend Reinve
Slide 6: Gladstone Commercial Corporation
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Slide 7: Company Overview
Company Overview ▪ Gladstone Commercial Corporation (“Gladstone” or the “Company”) is a publicly owned Real Estate Investment Trust (“REIT”) that completed its IPO in 2003 and is listed on Nasdaq (Ticker: GOOD) ▪ The Company invests in single tenant and anchored multi-tenant net leased assets ▪ The
Slide 8: Gladstone Commercial's Investment Philosophy
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Slide 9: Gladstone Commercial Overview
Gladstone Commercial Overview Portfolio summary (3/31/2020) # of Properties 122 Square feet (mm) 15.1 ▪ IPO in 2003 (Nasdaq: GOOD) Occupancy 96.6% States 28 (1) ▪ Market Capitalization: $497mm Tenants 106 Industries 19 Annual lease revenue (LTM) ($mm) $119.9 (1) Diluted FFO per Common Share, as adju
Slide 10: Significant Growth & Diversification Since 2010
Significant Growth & Diversification Since 2010 GOOD Portfolio 12/31/10 3/31/2020 Variance $ 1,098.8 Total assets ($mm) $ 410.6 $ 688.2 122 57 Properties 65 Grew a 106 54 Tenants 52 diverse 15.1 8.3 Square feet (mm) 6.8 portfolio 96.6% (0.6)% Occupancy (%) 97.2% (1) $ 19.0 Lease Revenue From Top 5 t
Slide 11: Investment Strategy
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Slide 12: Proven Strategy of Underwriting Real Estate and Tenant Strength
Proven Strategy of Underwriting Real Estate and Tenant Strength ▪ Tenants operate in a diverse array of industries ▪ Each tenant’s credit underwritten to Gladstone standards, developed over decades of middle Tenant strength market corporate lending, investing and buyouts through affiliated funds ▪ E
Slide 13: Gladstone Has Achieved Consistent and Disciplined Growth
Gladstone Has Achieved Consistent and Disciplined Growth Historical Investment Volume ($000) as of April 28, 2020 Iron Mountain - Industrial Donaldson - Industrial Orgill - Industrial Distribution Morgan Stanley - Office Portfolio ▪ 102K SF ▪ 509K SF ▪ 219K SF ▪ 676K SF ▪ Salt Lake City, UT ▪ TX, LA
Slide 14: Portfolio Overview
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Slide 15: Portfolio Overview
Portfolio Overview ▪ 122 properties across the U.S. located in 28 states Geographic diversity ▪ Focus on secondary growth markets with higher yields ▪ Diverse base of 19 different industries and primarily office and industrial property types Tenant and property ▪ Focus on mid-size tenants occupying
Slide 16: Diversified Portfolio
Diversified Portfolio Geographic diversification 122 properties spread across 28 states (by annualized straight line rent) Property type diversification (by annualized straight line rent) Notes: 1. As of 3/31/2020 2. Straight-line rent, per Generally Accepted Accounting Principles (GAAP), includes t
Slide 17: High Quality, Diversified Portfolio
High Quality, Diversified Portfolio Publicly-traded vs. privately-held tenants % of annualized Top tenants % of SF (as % of annualized straight line rent) straight line rent 4% 2% 3% 6% 3% 1% 3% 1% 2% 1% All other tenants 85% 89% Industry diversification Tenant credit ratings (based on annualized st
Slide 18: Financial Performance
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Slide 19: Summary Historical Performance
Summary Historical Performance Funds from Operations, as adjusted for comparability (Per Total Revenue ($ in millions) Share) (1) (1) Total Gross Assets ($ in millions) Total Distributions ($ in millions) $0.2 (1) (1) (1) January 1, 2020 - March 31, 2020 19 19Summary Historical Performance Funds fro
Slide 20: Capital Structure Overview
Capital Structure Overview Current Capital Structure as of 3/31/2020 ($000s) Capital Structure Details (Dollars in $000s, except stock price) Wtd. Average Rate 3/31/2020 Mortgage Notes Payable, Net $ 486,315 4.32% Less: Cash & Cash Equivalents (9,853) Net Mortgage Debt $ 476,462 Line of Credit L+1.6
Slide 21: Liquidity and Debt Overview
Liquidity and Debt Overview (1) (1) Reducing Leverage Fixed vs. Floating Debt (1) Debt maturity schedule ($000s) 31.1% 23.4% 16.0% 13.9% 5.9% 5.5% 4.2% (1) As of 3/31/2020 21 21Liquidity and Debt Overview (1) (1) Reducing Leverage Fixed vs. Floating Debt (1) Debt maturity schedule ($000s) 31.1% 23.4
Slide 22: Management
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Slide 23: Experienced Leadership Team
Experienced Leadership Team David Gladstone, ▪ Current Chairman and CEO of all four Gladstone funds, public companies #7, #8, #9 and #10 in his career Chairman and CEO ▪ Former Chairman of Allied Capital Commercial (REIT), Allied Capital and American Capital 25+ years of experience ▪ Former board me
Slide 24: Experienced Leadership Team (cont'd)
Experienced Leadership Team (cont’d) Buzz Cooper, Senior ▪ Manages regional acquisition and asset management activities; over 14 years with Gladstone Managing Director, ▪ Former Principal of Allied Commercial Corporation REIT, where his responsibilities ranged from buying South and Southwest loans f
Slide 25: Conclusion
ConclusionConclusion
Slide 26: Summary Highlights
Summary Highlights ▪ Diversified asset base with a 15% annual compound growth rate since 2012 ▪ Proven credit and real estate investment strategy has maintained high occupancy (>96%) since 2003 ▪ Strengthened credit profile with enterprise leverage down to 46.5% ▪ Focused on growth with limited leas
Slide 27: Appendix
Appendix 1. Condensed Consolidated Statements of Operations 2. Funds From Operations (FFO) 3. Condensed Balance Sheets 4. Debt Summary 5. External Management Structure QualitiesAppendix 1. Condensed Consolidated Statements of Operations 2. Funds From Operations (FFO) 3. Condensed Balance Sheets 4. D
Slide 28: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations ($ 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 29: 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 30: Condensed Balance Sheets
Condensed 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 for sale, ne
Slide 31: 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 32: External Management Structure Qualities
External Management Structure Qualities • President, CFO, Acquisitions, Asset Management and Accounting staff exclusively dedicated to Gladstone Commercial ▪ Benefit: Aligned with shareholder interests • The 2015 revision to the fee structure places overhead costs generally in line with the overall
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