Please note that the limited information that follows in this press release is not adequate to make an informed investment judgment.
MCLEAN, VA / ACCESSWIRE / November 6, 2023 / Gladstone Commercial Corporation (Nasdaq:GOOD) ("Gladstone Commercial" or the "Company") today reported financial results for the third quarter ended September 30, 2023. A description of funds from operations, or FFO, and Core FFO, both non-GAAP (generally accepted accounting principles in the United States) financial measures, are located at the end of this press release. All per share references are to fully-diluted weighted average shares of common stock and Non-controlling OP Units, unless otherwise noted. For further detail, please also refer to both the quarterly financial supplement and the Company's Quarterly Report on Form 10-Q, which can be retrieved from the Investors section of our website at www.gladstonecommercial.com.
Summary Information (dollars in thousands, except share and per share data):
| As of and for the three months ended | ||||||||||||||||
| September 30, 2023 | June 30, 2023 | $ Change | % Change | |||||||||||||
| Operating Data: | ||||||||||||||||
| Total operating revenue | $ | 36,464 | $ | 38,658 | $ | (2,194) | (5.7) | % | ||||||||
| Total operating expenses | (29,587) | (1) | (33,716) | (4) | 4,129 | (12.2) | % | |||||||||
| Other expense, net | (5,085) | (2) | (9,530) | (5) | 4,445 | (46.6) | % | |||||||||
| Net income (loss) | $ | 1,792 | $ | (4,588) | $ | 6,380 | (139.1) | % | ||||||||
| Less: Dividends attributable to preferred stock | (3,099) | (3,058) | (41) | 1.3 | % | |||||||||||
| Less: Dividends attributable to senior common stock | (108) | (106) | (2) | 1.9 | % | |||||||||||
| Less: Loss on extinguishment of Series F preferred stock | (1) | (6) | 5 | (83.3) | % | |||||||||||
| Net loss attributable to common stockholders and Non-controlling OP Unitholders | $ | (1,416) | $ | (7,758) | $ | 6,342 | (81.7) | % | ||||||||
| Add: Real estate depreciation and amortization | 12,485 | 16,936 | (4,451) | (26.3) | % | |||||||||||
| Add: Impairment charge | 6,754 | 6,823 | (69) | (1.0) | % | |||||||||||
| Add: Loss on sale of real estate, net | - | 451 | (451) | (100.0) | % | |||||||||||
| Less: Gain on sale of real estate | (4,696) | - | (4,696) | 100.0 | % | |||||||||||
| Funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 13,127 | $ | 16,452 | $ | (3,325) | (20.2) | % | ||||||||
| Add: Convertible senior common distributions | 108 | 106 | 2 | 1.9 | % | |||||||||||
| Funds from operations available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 13,235 | $ | 16,558 | $ | (3,323) | (20.1) | % | ||||||||
| Funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 13,127 | $ | 16,452 | $ | (3,325) | (20.2) | % | ||||||||
| Add: Asset retirement obligation expense | 31 | 32 | (1) | (3.1) | % | |||||||||||
| Add: Loan defeasance costs | 130 | - | 130 | 100.0 | % | |||||||||||
| Add: Realized loss on interest rate hedging instruments | 326 | - | 326 | 100.0 | % | |||||||||||
| Core funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 13,614 | $ | 16,484 | $ | (2,870) | (17.4) | % | ||||||||
| Add: Convertible senior common distributions | 108 | 106 | 2 | 1.9 | % | |||||||||||
| Core funds from operations available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 13,722 | $ | 16,590 | $ | (2,868) | (17.3) | % | ||||||||
| Share and Per Share Data: | ||||||||||||||||
| Net loss attributable to common stockholders and Non-controlling OP Unitholders - basic and diluted | $ | (0.04) | $ | (0.19) | $ | 0.15 | (78.9) | % | ||||||||
| FFO available to common stockholders and Non-controlling OP Unitholders - basic | $ | 0.33 | $ | 0.41 | $ | (0.08) | (19.5) | % | ||||||||
| FFO available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 0.33 | $ | 0.41 | $ | (0.08) | (19.5) | % | ||||||||
| Core FFO available to common stockholders and Non-controlling OP Unitholders - basic | $ | 0.34 | $ | 0.41 | $ | (0.07) | (17.1) | % | ||||||||
| Core FFO available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 0.34 | $ | 0.41 | $ | (0.07) | (17.1) | % | ||||||||
| Weighted average shares of common stock and Non-controlling OP Units outstanding - basic | 40,309,463 | 40,370,142 | (60,679) | (0.2) | % | |||||||||||
| Weighted average shares of common stock and Non-controlling OP Units outstanding - diluted | 40,654,595 | 40,715,274 | (60,679) | (0.1) | % | |||||||||||
| Cash dividends declared per common share and Non-controlling OP Unit | $ | 0.30 | $ | 0.30 | $ | - | - | % | ||||||||
| Financial Position | ||||||||||||||||
| Real estate, before accumulated depreciation | $ | 1,279,332 | (3) | $ | 1,296,283 | $ | (16,951) | (1.3) | % | |||||||
| Total assets | $ | 1,167,156 | $ | 1,181,935 | $ | (14,779) | (1.3) | % | ||||||||
| Mortgage notes payable, net, borrowings under revolver, net and borrowings under term loan, net | $ | 749,009 | $ | 753,734 | $ | (4,725) | (0.6) | % | ||||||||
| Total equity and mezzanine equity | $ | 346,627 | $ | 353,764 | $ | (7,137) | (2.0) | % | ||||||||
| Properties owned | 135 | (3) | 136 | (6) | (1) | (0.7) | % | |||||||||
| Square feet owned | 17,160,398 | (3) | 17,216,094 | (6) | (55,696) | (0.3) | % | |||||||||
| Square feet leased | 96.6 | % | 96.0 | % | 0.6 | % | 0.6 | % | ||||||||