Gladstone Commercial Corporation - Real Estate Investment Trust · NASDAQ:GOOD
Gladstone Commercial Corporation - Real Estate Investment Trust — Gladstone Commercial — Q3 2019 Earnings Presentation
20 slides from Gladstone Commercial Corporation - Real Estate Investment Trust's earnings presentation, Oct 31, 2019
Slide 1: Supplemental Financial & Operating Information for the Quarter Ended September 30, 2019
Supplemental Financial & Operating Information for the Quarter Ended September 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 Q3 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 September 30, 2019, we owned approximately 13.1 million square feet of primarily of
Slide 5: Portfolio and financial overview
Portfolio and financial overview Portfolio data1 Top 5 tenants1 % of rent % of SF Total assets ($mm) $ 978.0 4% 2% Properties 109 Tenants 101 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) 13.1 Top 5 Tenants total 16
Slide 6: Q3 2019 highlights (unaudited)
Q3 2019 highlights (unaudited) FFO1 and Core FFO2: Generated FFO and core FFO of $12.6 million, or $0.39 per diluted share, inclusive of $0.1 million of revenue associated with lease contractions and terminations. Acquisition Activity: Purchased a 78,450 square foot property in Denton, Texas for $6.
Slide 7: Financial Overview
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Slide 8: Condensed consolidated statements of operations
Condensed consolidated statements of operations ($ in thousands, except per share amounts) For the three months ended (unaudited) For the nine months ended (unaudited) 9/30/2019 6/30/2019 9/30/2018 9/30/2019 9/30/2018 Operating revenues Lease revenue $ 28,667 $ 28,197 $ 26,591 $ 85,001 $ 79,538 Tota
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) 9/30/2019 6/30/2019 9/30/2018 9/30/2019 9/30/2018 Net income $ 2,191 $ 2,205 $ 2,677 $ 9,068 $ 9,807 Less: Distributions attributable to preferred and s
Slide 10: Consolidated balance sheets
Consolidated balance sheets (unaudited) ($ in thousands) 9/30/2019 12/31/2018 ASSETS Real estate, at cost $ 1,008,438 $ 946,649 Less: accumulated depreciation 202,480 178,257 Total real estate, net 805,958 768,392 Lease intangibles, net 110,197 111,448 Real estate and related assets held for sale, n
Slide 11: Capital structure
Capital structure Current capital structure as of 9/30/2019 ($000) Capital Structure Details (Dollars in $000s, except stock price) Wtd. Average Rate 9/30/2019 Mortgage Notes Payable, Net 4.58% $ 434,689 $1,500,000 Less: Cash & Cash Equivalents (6,175) Net Mortgage Debt $ 428,514 Line of Credit L+1.
Slide 12: Liquidity and debt overview
Liquidity and debt overview Reducing Leverage1 Fixed vs. Floating Debt1 80% Floating Rate: 6.1% 70% 63.2% 59.3% 58.1% 56.9% 60% 48.6% 47.0% 46.8% 45.9% Hedged Floating Rate: 50% 28.0% 40% 30% 20% Fixed Rate: 65.9% 2012 2013 2014 2015 2016 2017 2018 Q3 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 9/30/2019 9/30/2019 2019 6.00% 6,343 2020 4.21% 19,650 2021 5.10% 17,621 2022 4.82% 105,676 2023 4.64% 68,500 2024 4.04% 44,486 2025 4.03% 33,781 2026 4.53% 41,471 2027 4.54
Slide 14: Select corporate covenants
Select corporate covenants ($ in thousands) Description Threshold September 30, 2019 Consolidated Tangible Net Worth > $494,750 $659,965 Leverage Ratio < 60% 48% Debt Yield Ratio > 11% 15% Fixed Charge Coverage Ratio > 1.45 1.73 Maximum Dividend Payout (FFO based) < 98% 96% Secured Indebtedness < 45
Slide 15: Portfolio Overview
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Slide 16: Portfolio overview
Portfolio overview Geographic • 109 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 Geographic diversification 109 properties spread across 24 states (by annualized lease revenue) Northeast 15% Midwest 27% Southwest 25% Southeast 33% Property type diversification (by annualized lease revenue) Medical Office 2% Retail 3% Industrial 35% Office 60% Note: As of 9/
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 47% Public 53% 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 Annualized Lease % of Annualized Lease Expiration Expiring Leases Revenue (in thousands) Revenue 2019 435,436 3 $ 2,836 2.5% 2020 686,306 8 9,120 8.1% 2021 560,223 12 9,011 8.0% 2022 446,
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