Gladstone Commercial Corporation - Real Estate Investment Trust · NASDAQ:GOOD
Gladstone Commercial Corporation - Real Estate Investment Trust — Gladstone Commercial — Q2 2019 Earnings Presentation
20 slides from Gladstone Commercial Corporation - Real Estate Investment Trust's earnings presentation, Jul 31, 2019
Slide 1: Supplemental Financial & Operating Information for the Quarter Ended June 30, 2019
Supplemental Financial & Operating Information for the Quarter Ended June 30, 2019 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 Q2 2019 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 June 30, 2019, we owned approximately 12.9 million square feet of primarily office
Slide 5: Portfolio and financial overview
Portfolio and financial overview Portfolio data1 Top 5 tenants1 % of rent % of SF Total assets ($mm) $ 969.8 4% 2% Properties 106 Tenants 99 3% 1% Industries 19 3% 7% States 24 Average remaining lease term (years) 7.2 3% 1% Occupancy 98.8% 3% 1% Square footage owned (mm) 12.9 Top 5 Tenants total 16%
Slide 6: Q2 2019 highlights (unaudited)
Q2 2019 highlights (unaudited) FFO1 and Core FFO2: Generated FFO and core FFO of $12.2 million, or $0.38 per diluted share. Acquisition Activity: Purchased a 383,000 square foot two property portfolio in Ocala, Florida for $19.1 million, each property with a 20 year remaining lease term. Purchased a
Slide 7: Financial Overview
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Slide 8: Condensed consolidated statements of operations
Condensed consolidated statements of operations ($ in thousands, except per share amounts) For the three months ended (unaudited) For the six months ended (unaudited) 6/30/2019 3/31/2019 6/30/2018 6/30/2019 6/30/2018 Operating revenues Lease revenue $ 28,197 $ 28,137 $ 26,593 $ 56,334 $ 52,946 Total
Slide 9: Funds from Operations (FFO)
Funds from Operations (FFO) ($ in thousands, except per share amounts) For the three months ended (unaudited) For the six months ended (unaudited) 6/30/2019 3/31/2019 6/30/2018 6/30/2019 6/30/2018 Net income $ 2,205 $ 4,673 $ 2,525 $ 6,878 $ 7,130 Less: Distributions attributable to preferred and se
Slide 10: Consolidated balance sheets
Consolidated balance sheets (unaudited) ($ in thousands) 6/30/2019 12/31/2018 ASSETS Real estate, at cost $ 989,036 $ 946,649 Less: accumulated depreciation 194,202 178,257 Total real estate, net 794,834 768,392 Lease intangibles, net 111,074 111,448 Real estate and related assets held for sale, net
Slide 11: Capital structure
Capital structure Current capital structure as of 6/30/2019 ($000) Capital Structure Details (Dollars in $000s, except stock price) Wtd. Average Rate 6/30/2019 Mortgage Notes Payable, Net 4.63% $ 451,522 $1,400,000 Less: Cash & Cash Equivalents (7,590) Net Mortgage Debt $ 443,932 Line of Credit L+1.
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% 45.6% Hedged Floating Rate: 50% 23.0% 40% 30% 20% Fixed Rate: 68.1% 2012 2013 2014 2015 2016 2017 2018 Q2 2019 Net Debt/Gross Assets Debt maturity schedul
Slide 13: Debt summary
Debt summary ($ in thousands) Weighted Average Principal Balance Principal Maturity Date Interest Rate as of Outstanding as of 6/30/2019 6/30/2019 2019 5.18% 18,129 2020 4.78% 21,740 2021 5.28% 17,772 2022 4.85% 106,749 2023 4.69% 68,959 2024 4.04% 44,662 2025 4.03% 33,992 2026 4.54% 41,960 2027 4.5
Slide 14: Select corporate covenants
Select corporate covenants ($ in thousands) Description Threshold June 30, 2019 Consolidated Tangible Net Worth > $494,750 $658,860 Leverage Ratio < 60% 47% Debt Yield Ratio > 11% 15% Fixed Charge Coverage Ratio > 1.45 1.75 Maximum Dividend Payout (FFO based) < 98% 96% Secured Indebtedness < 45% 36%
Slide 15: Portfolio Overview
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Slide 16: Portfolio overview
Portfolio overview Geographic • 106 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 106 properties spread across 24 states Geographic diversification (by lease revenue) Northeast 16% Midwest 27% Southwest 24% Southeast 33% Property type diversification (by lease revenue) Medical Office 2% Retail 3% Industrial 33% Office 62% Note: As of 6/30/2019 17
Slide 18: High quality, diversified portfolio
High quality, diversified portfolio % of lease Publicly-traded vs. privately-held tenants Top 5 tenants % of SF (as % of total lease revenue) revenue 4% 2% 3% 1% 3% 7% Private 46% Public 54% 3% 1% 3% 1% All other tenants 84% 88% Industry diversification (based on lease revenue) Tenant credit ratings
Slide 19: Smooth lease rollover
Smooth lease rollover Existing portfolio - contractual expirations Year of Lease SF of Leases Number of Expiring Annualized Lease % of Annualized Lease Expiration Expiring Leases Revenue (in thousands) Revenue 2019 435,436 3 $ 2,742 2.5% 2020 686,306 8 9,116 8.2% 2021 560,223 12 9,000 8.1% 2022 446,
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