Gladstone Commercial Corporation - Real Estate Investment Trust · NASDAQ:GOOD
Gladstone Commercial Corporation - Real Estate Investment Trust — Gladstone Commercial — Q4 2019 Earnings Presentation
20 slides from Gladstone Commercial Corporation - Real Estate Investment Trust's earnings presentation, Feb 13, 2020
Slide 1: Supplemental Financial & Operating Information for the Quarter Ended December 31, 2019
Supplemental Financial & Operating Information for the Quarter Ended December 31, 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 Q4 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 December 31, 2019, we owned approximately 14.2 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) $ 1,039.5 4% 2% Properties 118 Tenants 103 3% 1% Industries 19 3% 7% States 28 Average remaining lease term (years) 7.3 3% 1% Occupancy 97.0% 3% 1% Square footage owned (mm) 14.2 Top 5 Tenants total
Slide 6: Q4 2019 highlights (unaudited)
Q4 2019 highlights (unaudited) FFO1, FFO as adjusted for comparability2, and Core FFO3: Generated FFO, FFO as adjusted for comparability, and core FFO of $10.1 million, $12.7 million and $13.2 million, or $0.30, $0.39 and $0.40 per diluted share, respectively. Acquisition Activity: Purchased a 231,5
Slide 7: Financial Overview
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Slide 8: Condensed consolidated statements of operations
Condensed consolidated statements of operations ($ in thousands, except per share amounts) For the three months ended (unaudited) For the twelve months ended 12/31/2019 9/30/2019 12/31/2018 12/31/2019 12/31/2018 Operating revenues Lease revenue $ 29,386 $ 28,667 $ 27,261 $ 114,387 $ 106,798 Total op
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 12/31/2019 9/30/2019 12/31/2018 12/31/2019 12/31/2018 Net income $ 472 $ 2,191 $ 2,517 $ 9,541 $ 12,324 Less: Distributions attributable to preferred and senior c
Slide 10: Consolidated balance sheets
Consolidated balance sheets ($ in thousands) 12/31/2019 12/31/2018 ASSETS Real estate, at cost $ 1,056,978 $ 946,649 Less: accumulated depreciation 207,523 178,257 Total real estate, net 849,455 768,392 Lease intangibles, net 115,465 111,448 Real estate and related assets held for sale, net 3,990 4,
Slide 11: Capital structure
Capital structure Current capital structure as of 12/31/2019 ($000) Capital Structure Details (Dollars in $000s, except stock price) Wtd. Average Rate 12/31/2019 Mortgage Notes Payable, Net 4.49% $ 453,739 $1,500,000 Less: Cash & Cash Equivalents (6,849) Net Mortgage Debt $ 446,890 Line of Credit L+
Slide 12: Liquidity and debt overview
Liquidity and debt overview Reducing Leverage1 Fixed vs. Floating Debt1 80% Floating Rate: 8.4% 70% 63.2% 59.3% 58.1% 56.9% 60% 48.6% 47.0% 46.8% 46.1% Hedged Floating Rate: 50% 26.3% 40% 30% 20% Fixed Rate: 65.3% 2012 2013 2014 2015 2016 2017 2018 2019 Net Debt/Gross Assets Debt maturity schedule1
Slide 13: Debt summary
Debt summary ($ in thousands) Weighted Average Principal Balance Principal Maturity Date Interest Rate as of Outstanding as of 12/31/2019 12/31/2019 2020 3.96% 19,516 2021 4.90% 27,491 2022 4.80% 104,809 2023 4.61% 68,114 2024 4.04% 44,334 2025 4.03% 33,597 2026 4.42% 50,063 2027 4.36% 86,859 2028 5
Slide 14: Select corporate covenants
Select corporate covenants ($ in thousands) Description Threshold December 31, 2019 Consolidated Tangible Net Worth > $494,750 $677,427 Leverage Ratio < 60% 49% Debt Yield Ratio > 11% 14% Fixed Charge Coverage Ratio > 1.45 1.76 Maximum Dividend Payout (FFO based) < 98% 95% Secured Indebtedness < 45%
Slide 15: Portfolio Overview
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Slide 16: Portfolio overview
Portfolio overview Geographic • 118 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 118 properties spread across 28 states (by annualized lease revenue) Northeast 16% Midwest 27% Southwest 24% Southeast 33% Property type diversification (by annualized lease revenue) Medical Office 2% Retail 3% Industrial 38% Office 57% Note: As of 12
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 annualized 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 Tenant credit ratings (based on ann
Slide 19: Smooth lease rollover
Smooth lease rollover Existing portfolio - contractual expirations Year of Lease SF of Leases Number of Expiring Lease Revenue (in % of Lease Revenue Expiration Expiring Leases thousands) 2020 806,866 8 $ 9,163 8.3% 2021 560,223 12 9,053 8.2% 2022 446,457 8 6,646 6.0% 2023 1,460,802 14 10,187 9.2% 2
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