Gladstone Commercial Corporation Reports Results for the First Quarter Ended March 31, 2025
- Ricavi operativi totali di 37,5 milioni di dollari (in aumento dello 0,3% rispetto al trimestre precedente)
- FFO core di 15,3 milioni di dollari (0,34 dollari per azione), in calo dello 0,2% rispetto al Q4 2024
- Utile netto di 1,9 milioni di dollari (0,04 dollari per azione), in diminuzione rispetto ai 4,0 milioni del Q4 2024
- 100% di incasso affitti per il primo trimestre 2025 e aprile 2025
- Acquisizione di 6 propriet脿 completamente occupate (355.778 piedi quadrati) per 73,7 milioni di dollari con un tasso di capitalizzazione dell'8,39%
- Rinnovo/locazione di 67.709 piedi quadrati con durata media di 3 anni
- Emissione di 27,7 milioni di dollari in azioni ordinarie e 0,3 milioni in azioni privilegiate Serie F
- Occupazione del portafoglio al 98,4%
- Ingresos operativos totales de 37,5 millones de d贸lares (incremento del 0,3% trimestre a trimestre)
- FFO b谩sico de 15,3 millones de d贸lares (0,34 d贸lares por acci贸n), una disminuci贸n del 0,2% respecto al cuarto trimestre de 2024
- Ingreso neto de 1,9 millones de d贸lares (0,04 d贸lares por acci贸n), menor a los 4,0 millones del cuarto trimestre de 2024
- Tasa de cobro de rentas del 100% para el primer trimestre y abril de 2025
- Adquisici贸n de 6 propiedades completamente ocupadas (355,778 pies cuadrados) por 73,7 millones de d贸lares con una tasa de capitalizaci贸n del 8,39%
- Renovaci贸n/arrendamiento de 67,709 pies cuadrados con un plazo promedio de 3 a帽os
- Emisi贸n de 27,7 millones de d贸lares en acciones comunes y 0,3 millones en acciones preferentes Serie F
- Ocupaci贸n del portafolio al 98,4%
- 齑� 鞓侅梾 靾橃澋 3,750毵� 雼煬 (鞝勲秳旮� 雽牍� 0.3% 歃濌皜)
- 頃奠嫭 FFO 1,530毵� 雼煬(欤茧嫻 0.34雼煬), 2024雲� 4攵勱赴 雽牍� 0.2% 臧愳唽
- 靾滌澊鞚� 190毵� 雼煬(欤茧嫻 0.04雼煬), 2024雲� 4攵勱赴 400毵� 雼煬鞐愳劀 臧愳唽
- 2025雲� 1攵勱赴 氚� 4鞗� 鞛勲寑耄� 100% 歆曥垬鞙�
- 鞕勳爠 鞛勲寑霅� 6臧� 攵霃欖偘(氅挫爜 355,778韽夒癌頂柬姼) 7,370毵� 雼煬鞐� 鞚胳垬, 鞛愲掣頇橃洂鞙� 8.39%
- 67,709韽夒癌頂柬姼 鞛勲寑 臧膘嫚/鞁犼窚 鞛勲寑, 韽夑窢 鞛勲寑 旮瓣皠 3雲�
- 2,770毵� 雼煬 氤错喌欤� 氚� 30毵� 雼煬 鞁滊Μ歃� F 鞖办劆欤� 氚滍枆
- 韽姼韽措Μ鞓� 鞝愳湢鞙� 98.4%
- Revenu d'exploitation total de 37,5 M$ (en hausse de 0,3 % par rapport au trimestre pr茅c茅dent)
- FFO de base de 15,3 M$ (0,34 $ par action), en l茅g猫re baisse de 0,2 % par rapport au T4 2024
- R茅sultat net de 1,9 M$ (0,04 $ par action), en baisse par rapport 脿 4,0 M$ au T4 2024
- Taux de recouvrement des loyers de 100 % pour le T1 2025 et avril 2025
- Acquisition de 6 propri茅t茅s enti猫rement occup茅es (355 778 pieds carr茅s) pour 73,7 M$ 脿 un taux de capitalisation de 8,39 %
- Renouvellement/location de 67 709 pieds carr茅s avec une dur茅e moyenne de 3 ans
- 脡mission de 27,7 M$ en actions ordinaires et 0,3 M$ en actions privil茅gi茅es de s茅rie F
- Taux d'occupation du portefeuille 脿 98,4 %
- Gesamter Betriebsumsatz von 37,5 Mio. USD (Anstieg um 0,3 % gegen眉ber dem Vorquartal)
- Kern-FFO von 15,3 Mio. USD (0,34 USD je Aktie), R眉ckgang um 0,2 % gegen眉ber Q4 2024
- Nettoeinkommen von 1,9 Mio. USD (0,04 USD je Aktie), R眉ckgang gegen眉ber 4,0 Mio. USD im Q4 2024
- 100 % Mietzahlungseingang f眉r Q1 2025 und April 2025
- Erwerb von 6 voll vermieteten Immobilien (355.778 Quadratfu脽) f眉r 73,7 Mio. USD bei einer Kapitalisierungsrate von 8,39 %
- Verl盲ngerung/Vermietung von 67.709 Quadratfu脽 mit einer Laufzeit von 3,0 Jahren
- Emission von 27,7 Mio. USD in Stammaktien und 0,3 Mio. USD in Vorzugsaktien der Serie F
- Portfolioauslastung bei 98,4 %
- 100% rent collection rate maintained for Q1 2025 and April 2025
- Acquired 6 new fully-occupied properties for $73.7M at attractive 8.39% cap rate
- High portfolio occupancy rate of 98.4%
- Successfully raised $27.7M through common stock issuance
- Successful execution of capital recycling strategy with $23.6M in non-core property sales
- Core FFO decreased 0.2% QoQ to $0.34 per share
- Net income declined 51.8% QoQ to $1.9M
- Slight occupancy decrease of 0.3% from Q4 2024
- Increased debt levels with $47.4M (6.8%) rise in total borrowings
Insights
Gladstone maintained strong operations with 98.4% occupancy and 100% rent collection, while Core FFO dipped slightly to $0.34/share with dividend well-covered.
Gladstone Commercial's Q1 2025 results show Core FFO of $0.34 per share, a slight 2.9% sequential decline from Q4 2024's $0.35, primarily due to higher incentive fees rather than operational deterioration. The REIT's net income dropped more significantly to $0.04 per share from $0.09, largely reflecting a 63.3% increase in other expenses.
The company demonstrated exceptional operational resilience with 100% rent collection throughout Q1 and into April, while maintaining 98.4% occupancy (only marginally below Q4's 98.7%). Their leasing activity included renewing 67,709 square feet with a 3-year term.
On the acquisition front, Gladstone purchased six fully-occupied properties totaling 355,778 square feet for $73.7 million at an attractive
The balance sheet shows measured growth with total assets increasing
Gladstone maintained its quarterly distribution of
Please note that the limited information that follows in this press release is not adequate to make an informed investment judgment.
MCLEAN, VA / / May 7, 2025 / Gladstone Commercial Corporation (Nasdaq:GOOD) ("Gladstone Commercial" or the "Company") today reported financial results for the first quarter ended March 31, 2025. 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 .
Summary Information (dollars in thousands, except share and per share data):
As of and for the three months ended | |||||||||||||||||||
March 31, 2025 | December 31, 2024 | $ Change | % Change | ||||||||||||||||
Operating Data: | |||||||||||||||||||
Total operating revenue | $ | 37,501 | $ | 37,375 | $ | 126 | 0.3 | % | |||||||||||
Total operating expenses | (23,858 | ) | (24,974 | ) | (2) | 1,116 | (4.5 | )% | |||||||||||
Other (expense) income, net | (8,507 | ) | (5,208 | ) | (3) | (3,299 | ) | 63.3 | % | ||||||||||
Net income | $ | 5,136 | $ | 7,193 | $ | (2,057 | ) | (28.6 | )% | ||||||||||
Less: Dividends attributable to preferred stock | (3,108 | ) | (3,106 | ) | (2 | ) | 0.1 | % | |||||||||||
Less: Dividends attributable to senior common stock | (101 | ) | (104 | ) | 3 | (2.9 | )% | ||||||||||||
Less: Loss on extinguishment of Series F preferred stock, net | (10 | ) | (9 | ) | (1 | ) | 11.1 | % | |||||||||||
Net income available to common stockholders and Non-controlling OP Unitholders | $ | 1,917 | $ | 3,974 | $ | (2,057 | ) | (51.8 | )% | ||||||||||
Add: AG真人官方 estate depreciation and amortization | 13,243 | 13,102 | 141 | 1.1 | % | ||||||||||||||
Add: Impairment charge | - | 1,780 | (1,780 | ) | (100.0 | )% | |||||||||||||
Less: Gain on sale of real estate, net | - | (3,674 | ) | 3,674 | (100.0 | )% | |||||||||||||
Funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 15,160 | $ | 15,182 | $ | (22 | ) | (0.1 | )% | ||||||||||
Add: Convertible senior common distributions | 101 | 104 | (3 | ) | (2.9 | )% | |||||||||||||
Funds from operations available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 15,261 | $ | 15,286 | $ | (25 | ) | (0.2 | )% | ||||||||||
Funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 15,160 | $ | 15,182 | $ | (22 | ) | (0.1 | )% | ||||||||||
Add: Asset retirement obligation expense | 34 | 34 | - | - | % | ||||||||||||||
Core funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 15,194 | $ | 15,216 | $ | (22 | ) | (0.1 | )% | ||||||||||
Add: Convertible senior common distributions | 101 | 104 | (3 | ) | (2.9 | )% | |||||||||||||
Core funds from operations available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 15,295 | $ | 15,320 | $ | (25 | ) | (0.2 | )% | ||||||||||
Share and Per Share Data: | |||||||||||||||||||
Net income available to common stockholders and Non-controlling OP Unitholders - basic and diluted | $ | 0.04 | $ | 0.09 | $ | (0.05 | ) | (55.6 | )% | ||||||||||
FFO available to common stockholders and Non-controlling OP Unitholders - basic | $ | 0.34 | $ | 0.35 | $ | (0.01 | ) | (2.9 | )% | ||||||||||
FFO available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 0.34 | $ | 0.35 | $ | (0.01 | ) | (2.9 | )% | ||||||||||
Core FFO available to common stockholders and Non-controlling OP Unitholders - basic | $ | 0.34 | $ | 0.35 | $ | (0.01 | ) | (2.9 | )% | ||||||||||
Core FFO available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 0.34 | $ | 0.35 | $ | (0.01 | ) | (2.9 | )% | ||||||||||
Weighted average shares of common stock and Non-controlling OP Units outstanding - basic | 44,646,486 | 43,963,909 | 682,577 | 1.6 | % | ||||||||||||||
Weighted average shares of common stock and Non-controlling OP Units outstanding - diluted | 44,975,890 | 44,294,365 | 681,525 | 1.5 | % | ||||||||||||||
Cash dividends declared per common share and Non-controlling OP Unit | $ | 0.30 | $ | 0.30 | $ | - | - | % | |||||||||||
Financial Position | |||||||||||||||||||
AG真人官方 estate, before accumulated depreciation | $ | 1,287,663 | (1) | $ | 1,219,918 | (1) | $ | 67,745 | 5.6 | % | |||||||||
Total assets | $ | 1,160,443 | $ | 1,094,348 | $ | 66,095 | 6.0 | % | |||||||||||
Mortgage notes payable, net, borrowings under revolver, borrowings under term loan, net, and senior unsecured notes, net | $ | 740,746 | $ | 693,385 | $ | 47,361 | 6.8 | % | |||||||||||
Total equity and mezzanine equity | $ | 353,393 | $ | 341,342 | $ | 12,051 | 3.5 | % | |||||||||||
Properties owned | 141 | (1) | 135 | (1) | 6 | 4.4 | % | ||||||||||||
Square feet owned | 17,255,665 | (1) | 16,899,887 | (1) | 355,778 | 2.1 | % | ||||||||||||
Square feet leased | 98.4 | % | 98.7 | % | (0.3 | )% | (0.3 | )% |
(1) | Includes two properties classified as held for sale of |
(2) | Includes a |
(3) | Includes a |
First Quarter Activity:
Collected
100% of cash rents: Collected100% of cash rents due during January, February, and March;Acquired properties: Purchased six fully-occupied properties, with an aggregate of 355,778 square feet of rental space, for
$73.7 million , at a weighted average cap rate of8.39% ;Renewed or leased space: Renewed or leased 67,709 square feet with a remaining lease term of 3.0 years at one of our properties;
Issued common stock under ATM Program: Issued 1,770,581 shares of common stock for net proceeds of
$27.7 million ;Issued Series F Preferred Stock: Issued 13,500 shares of our Series F Preferred Stock for net proceeds of
$0.3 million ; andPaid distributions: Paid monthly cash distributions for the quarter totaling
$0.30 per share on our common stock and Non-controlling OP Units,$0.41 4063 per share on our Series E Preferred Stock,$0.37 5 per share on our Series F Preferred Stock,$0.37 5 per share on our Series G Preferred Stock, and$0.26 25 per share on our senior common stock.
First Quarter 2025 Results: Core FFO available to common shareholders and Non-controlling OP Unitholders for the three months ended March 31, 2025 was
Net income available to common stockholders and Non-controlling OP Unitholders for the three months ended March 31, 2025 was
Subsequent to the end of the quarter:
Collected
100% of April cash rents: Collected100% of cash rents due in April;Sold properties: Sold two non-core properties as part of our capital recycling strategy for
$23.6 million ;Issued common stock under ATM Program: Issued 525,192 shares for net proceeds of
$7.2 million ;Issued Series F Preferred Stock: Issued 2,200 shares for net proceeds of
$0.1 million ;Repaid debt: Repaid
$7.2 million in variable rate mortgage debt at an interest rate of SOFR +2.25% ; andDeclared distributions: Declared monthly cash distributions for April, May, and June 2025, totaling
$0.30 per share on our common stock and Non-controlling OP Units,$0.41 4063 per share on our Series E Preferred Stock,$0.37 5 per share on our Series F Preferred Stock,$0.37 5 per share on our Series G Preferred Stock, and$0.26 25 per share on our senior common stock.
Comments from Gladstone Commercial's President, Buzz Cooper: "Our financial results reflect consistent performance and stabilized revenues from our tremendous same store property occupancy, rent collection and growth, accretive real estate investments made during 2024 and 2025, our ability to renew tenants, and our deleveraging. We have continued our capital recycling program, whereby we have sold non-core assets and used the proceeds to de-lever our portfolio, as well as acquire properties in our target growth markets. We have successfully exited two non-core assets thus far in 2025, and we have additional non-core assets we anticipate selling over the next one to two years that we believe will result in capital gains. We will continue to opportunistically sell non-core assets and redeploy the proceeds into stronger target growth markets with a focus on industrial investment opportunities. While we expect to face challenges due to the lingering effects of the pandemic, significant inflation with a corresponding increase in interest rates, and the geo-political and economic issues arising from international wars, we feel strongly about the depth of our tenant credit underwriting. We have collected
Conference Call: Gladstone Commercial will hold a conference call on Thursday, May 8, 2025, at 8:30 a.m. Eastern Time to discuss its earnings results. Please call (877) 407-9045 to enter the conference call. An operator will monitor the call and set a queue for questions. A conference call replay will be available beginning one hour after the call and will be accessible through May 15, 2025. To hear the replay, please dial (877) 660-6853 and use playback conference number 13752157. The live audio broadcast of the Company's quarterly conference call will also be available on the investors section of our website, .
About Gladstone Commercial: Gladstone Commercial Corporation is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States. Further information can be found at .
About the Gladstone Companies: Information on the business activities of the Gladstone family of funds can be found at .
Investor Relations: For Investor Relations inquiries related to any of the monthly distribution-paying Gladstone family of funds, please visit .
Non-GAAP Financial Measures:
FFO: The National Association of AG真人官方 Estate Investment Trusts ("NAREIT") developed FFO as a relative non-GAAP supplemental measure of operating performance of an equity REIT to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO, as defined by NAREIT, is net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property and impairment losses on property, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. FFO does not represent cash flows from operating activities determined in accordance with GAAP and should not be considered an alternative to net income as an indication of its performance or to cash flow from operations as a measure of liquidity or ability to make distributions. The Company believes that FFO per share provides investors with an additional context for evaluating its financial performance and as a supplemental measure to compare it to other REITs; however, comparisons of its FFO to the FFO of other REITs may not necessarily be meaningful due to potential differences in the application of the NAREIT definition used by such other REITs.
Core FFO: Core FFO is FFO adjusted for certain items that are not indicative of the results provided by the Company's operating portfolio and affect the comparability of the Company's period-over-period performance. These items include the adjustment for acquisition related expenses, gains or losses from early extinguishment of debt and any other non-recurring expense adjustments. Although the Company's calculation of Core FFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs, the Company believes it is a meaningful supplemental measure of its operating performance. Accordingly, Core FFO should be considered a supplement to net income computed in accordance with GAAP as a measure of our performance.
The Company's presentation of FFO, as defined by NAREIT, or presentation of Core FFO, does not represent cash flows from operating activities determined in accordance with GAAP and should not be considered an alternative to net income as an indication of its performance or to cash flow from operations as a measure of liquidity or ability to make distributions.
The statements in this press release regarding the forecasted stability of Gladstone Commercial's income, its ability, plans or prospects to re-lease its unoccupied properties, and grow its portfolio are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on Gladstone Commercial's current plans that are believed to be reasonable as of the date of this press release. Factors that may cause actual results to differ materially from these forward-looking statements include, but are not limited to, Gladstone Commercial's ability to raise additional capital; availability and terms of capital and financing, both to fund its operations and to refinance its indebtedness as it matures; downturns in the current economic environment; the performance of its tenants; the impact of competition on its efforts to renew existing leases or re-lease space; and significant changes in interest rates. Additional factors that could cause actual results to differ materially from those stated or implied by its forward-looking statements are disclosed under the caption "Risk Factors" of its Form 10-K for the fiscal year ended December 31, 2024, as filed with the SEC on February 18, 2025, and other reports filed with the SEC. Gladstone Commercial cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Gladstone Commercial undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
CONTACT:
Gladstone Commercial Corporation
(703) 287-5893
SOURCE: Gladstone Commercial Corporation
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