Gladstone Commercial Corporation - Real Estate Investment Trust · NASDAQ:GOOD
Gladstone Commercial Corporation - Real Estate Investment Trust — Gladstone Commercial — Q3 2020 Earnings Presentation
20 slides from Gladstone Commercial Corporation - Real Estate Investment Trust's earnings presentation, Nov 6, 2020
Slide 1: Supplemental Financial & Operating Information for the Quarter Ended September 30, 2020
Supplemental Financial & Operating Information for the Quarter Ended September 30, 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 Q3 2020 highlights (unaudited) 6 Financial overview Condensed consolidated statements of operations 8 Funds from Operations (FFO) and core FFO 9 Condensed consolidated balance sheets 10 Capital struc
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 September 30, 2020, we owned approximately 14.9 million square feet of primarily of
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) $ 1,076 3% 6% Properties 122 Tenants 105 3% 1% Industries 19 3% 1% States 28 Average remaining lease term (years) 7.4 2% 1% Occupancy 95.0 % 2% 1% Square footage owned (mm) 1
Slide 6: Q3 2020 highlights (unaudited)
Q3 2020 highlights (unaudited) FFO1 and Core FFO2: Generated FFO $13.9 million, or $0.39 per diluted share, and core FFO of $14.0 million, or $0.40 per diluted share. Acquisitions(3): Purchased a 153,600 square foot property in Indianapolis, Indiana for $10.6 million, with a 9.7 year remaining lease
Slide 7: Financial Overview
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Slide 8: Condensed consolidated statements of operations
Condensed consolidated statements of operations ($ in thousands, except per share amounts) For the three months ended (unaudited) For the nine months ended (unaudited) 9/30/2020 6/30/2020 9/30/2019 9/30/2020 9/30/2019 Operating revenues Lease revenue $ 33,142 $ 33,525 $ 28,667 $ 100,287 $ 85,001 Tot
Slide 9: Funds from Operations (FFO)
Funds from Operations (FFO) ($ in thousands, except per share amounts) For the three months ended (unaudited) For the nine months ended (unaudited) 9/30/2020 6/30/2020 9/30/2019 9/30/2020 9/30/2019 Net income $ 2,844 $ 965 $ 2,191 $ 6,070 $ 9,068 Less: Distributions attributable to preferred and sen
Slide 10: Condensed consolidated balance sheets
Condensed consolidated balance sheets (unaudited) ($ in thousands) 9/30/2020 12/31/2019 ASSETS Real estate, at cost $ 1,094,854 $ 1,056,978 Less: accumulated depreciation 221,849 207,523 Total real estate, net 873,005 849,455 Lease intangibles, net 114,242 115,465 Real estate and related assets held
Slide 11: Capital structure
Capital structure Current capital structure as of 9/30/2020 ($000) Capital Structure Details (Dollars in $000s, except stock price) Wtd. Average Rate 9/30/2020 $1,500,000 Mortgage Notes Payable, Net $ 458,364 4.28% Less: Cash & Cash Equivalents (10,370) Net Mortgage Debt $ 447,994 Line of Credit L+1
Slide 12: Liquidity and debt overview
Liquidity and debt overview Reducing Leverage1 Fixed vs. Floating Debt1 70% 63.2% Floating Rate: 6.7% 59.3% 58.1% 56.9% 60% 48.6% 47.0% 46.8% 50% 46.1% 46.2% 40% Hedged Floating Rate: 28.2% 30% 20% 2012 2013 2014 2015 2016 2017 2018 2019 Q3 Fixed Rate: 65.1% 2020 Net Debt/Gross Assets Debt maturity
Slide 13: Debt summary
Debt summary ($ in thousands) Weighted Average Interest Principal Balance Principal Maturity Date Rate as of Outstanding as of 9/30/2020 9/30/2020 2020 2.40% 3,186 2021 3.99% 20,986 2022 4.67% 102,261 2023 4.39% 66,912 2024 4.03% 43,870 2025 4.03% 33,033 2026 4.40% 48,611 2027 4.35% 85,134 2028 5.32
Slide 14: Select corporate covenants
Select corporate covenants ($ in thousands) Description Threshold September 30, 2020 Consolidated Tangible Net Worth > $557,866 $718,149 Leverage Ratio < 60% 49% Fixed Charge Coverage Ratio > 1.50 1.85 Maximum Dividend Payout (FFO based) < 98% 94% Secured Indebtedness < 45% 33% Note: Covenants calcu
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 15% Midwest 26% Southwest 24% Southeast 35% Property type diversification (by annualized straight line rent) Medical Office 2% Retail 3% Office Industrial 51% 44% 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 3% 6% 3% 1% 3% 1% Public 49% Private 51% 2% 1% 2% 1% All other tenants 87 % 90 % Tenant credit ratings Industry diversificat
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 2021 326,364 10 5,857 5.2 % 2022 446,457 8 6,288 5.6 % 2023 1,466,432 15 9,979 8
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