Gladstone Commercial Corporation - Real Estate Investment Trust · NASDAQ:GOOD
Gladstone Commercial Corporation - Real Estate Investment Trust — Gladstone Commercial — Investor Presentation (August 2024)
20 slides from Gladstone Commercial Corporation - Real Estate Investment Trust's investor presentation, August 2024
Slide 1: Investor Presentation
Investor Presentation August 2024 | Nasdaq: GOOD
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: 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) Investment Focus Portfolio Highlights • Single tenant or anchored multi-tenant net lease in
Slide 4: Investment Highlights
Investment Highlights • Portfolio diversified across tenants, geographies, and industries • 136 properties with 109 unique tenants in 27 different states with no tenant accounting for more than 5% of Diverse Portfolio annualized straight-line rent • Most industrial leases have fixed annual escalatio
Slide 5: Diverse, Stable Portfolio
Diverse, Stable Portfolio Portfolio diversified across tenants, geographies, and industries By State By Asset Class As % of Annualized Straight-Line Base Rent As % of Annualized Straight-Line Base Rent Retail Medical Office 3% 1% Office 34% $124M Industrial 62% By Tenant Industry As % of Annualized
Slide 6: Growing Industrial Concentration
Growing Industrial Concentration Industrial % of annualized straight-line base rent has nearly doubled since 2018 • The Company began a focused transition to industrial assets in 2018 (before COVID-19) and has successfully increased portfolio industrial exposure to 62% of annualized straight line re
Slide 7: 20+ Year History of Net Lease Investing
20+ Year History of Net Lease Investing • Decades of combined management experience investing Total Revenue in net lease assets and evaluating tenant credit $ in Millions • Gross asset base of $1.6 billion as of June 30, 2024 $149.0 $147.6 $145.2 $137.7 $133.2 • 2015 – 2023 total revenue and total g
Slide 8: Mission Critical Assets
Mission Critical Assets GOOD specializes in identifying, owning, and operating assets that are mission critical to tenant operations • GOOD portfolio occupancy has never declined below 95% Rent Expirations by Year • As of June 30, 2024, industrial occupancy was 99.3%, and As % of Annualized Straight
Slide 9: Robust Underwriting Platform
Robust Underwriting Platform GOOD’s robust underwriting platform results in high rent collection rates and minimal asset downtime • A majority of GOOD’s tenants are privately held Tenant Underwriting Analysis • 50% of GOOD tenants are investment grade rated or not rated, investment grade equivalent
Slide 10: Conservative Balance Sheet
Conservative Balance Sheet GOOD has significantly decreased its leverage ratio since 2015, and remaining debt maturities are minimal through 2026 • Since 2015, GOOD has decreased net debt / gross assets Fixed vs Floating Rate Debt from 56.9% to 45.9% • In addition to the low leverage ratio, nearly 9
Slide 11: Recent Case Studies
Recent Case Studies Recent case studies exhibit mission critical industrial acquisitions in path of growth markets and asset management value-add leasing Eastern Metal Supply (Acquisition) Garden State Bulb (Acquisition) Moss (Portfolio Management) Deal Type: Industrial portfolio acquisition Deal Ty
Slide 12: Investment Philosophy
Investment Philosophy Acquire quality, well located and configured, single tenant and anchored multi-tenant, NNN leased industrial properties in target path of growth markets Long Term Leases with Proactive Asset Rigorous Mission- Contractual Tenant Credit Critical Real Rent Growth Management and Re
Slide 13: Appendix
Appendix << GLADSTONE COMMERCIAL
Slide 14: Capital Structure Overview
Capital Structure Overview • Institutional stock ownership increased from 26.8% in Current capital structure as of June 30, 2024 (Dollars in $000) 2013 to 43.7% as of June 30, 20241 $1,600,000 • Balance sheet remains below 50% levered • Average rate on mortgage debt of just 4.24% $1,400,000 Capital
Slide 15: Experienced Leadership Team
Experienced Leadership Team David Gladstone • Current Chairman and CEO of all four Gladstone funds, public companies #7, #8, #9 and #10 in his career Chairman and CEO • Former Chairman of Allied Capital Commercial (REIT), Allied Capital and American Capital 25+ years of experience • Former board mem
Slide 16: Experienced Leadership Team
Experienced Leadership Team Ryan Carter • Manages regional acquisition and asset management activities Executive Vice President, Head • Former founding partner of Porthaven Partners, LLC of West and Midwest Regions • Former Director with Stan Johnson Company 20+ years of experience • MBA from Oklaho
Slide 17: Consolidated Statements of Operations
Consolidated Statements of Operations For the six months ended ($ in thousands, except per share amounts) For the three months ended (unaudited) (unaudited) 6/30/2024 3/31/2024 6/30/2023 6/30/2024 6/30/2023 Operating revenues Lease revenue $ 37,057 $ 35,721 $ 38,658 $ 72,779 $ 75,212 Total operating
Slide 18: Funds from Operations (FFO) and Core FFO
Funds from Operations (FFO) and Core FFO ($ in thousands, except per share amounts) For the three months ended (unaudited) For the six months ended (unaudited) 6/30/2024 3/31/2024 6/30/2023 6/30/2024 6/30/2023 Net income (loss) $ 1,600 $ 3,526 $ (4,588) $ 5,125 $ (1,420) Less: Distributions attribut
Slide 19: Consolidated Balance Sheets
Consolidated Balance Sheets 6/30/2024 ($ in thousands) (unaudited) 12/31/2023 ASSETS Real estate, at cost $ 1,230,206 $ 1,221,364 Less: accumulated depreciation 311,433 299,662 Total real estate, net 918,773 921,702 Lease intangibles, net 95,935 101,048 Real estate and related assets held for sale,
Slide 20: Debt Summary
Debt Summary ($ in thousands) Weighted Average Interest Principal Balance Principal Maturity Date Rate as of Outstanding as of 6/30/2024 6/30/2024 2025 5.13% 25,503 2026 4.17% 30,667 2027 4.37% 101,348 2028 4.14% 37,906 2029 5.23% 21,453 2030 3.23% 38,595 2031 3.24% 4,986 2032 3.40% 9,836 2037 4.63%
Gladstone Commercial — Investor Presentation (August 2024) on 6ix