Gladstone Commercial Corporation Reports Results for the Third Quarter Ended September 30, 2023
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Gladstone Commercial Corporation (Nasdaq:GOOD) reported financial results for Q3 2023. Total operating revenue decreased by 5.7% to $36.5 million compared to the previous quarter. Net income improved to $1.8 million from a loss of $4.6 million in Q2 2023. Funds from operations available to common stockholders and Non-controlling OP Unitholders decreased by 20.2% to $13.1 million. The company's real estate assets decreased by 1.3% to $1.3 billion.
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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 | % | ||||||||
View source version on accesswire.com:
https://www.accesswire.com/800270/gladstone-commercial-corporation-reports-results-for-the-third-quarter-ended-september-30-2023
The stock symbol for Gladstone Commercial Corporation is GOOD.
In Q3 2023, Gladstone Commercial Corporation reported a total operating revenue of $36.5 million, a net income of $1.8 million, and funds from operations available to common stockholders and Non-controlling OP Unitholders of $13.1 million.
The net income improved to $1.8 million in Q3 2023 from a loss of $4.6 million in the previous quarter.
Funds from operations available to common stockholders and Non-controlling OP Unitholders decreased by 20.2% to $13.1 million in Q3 2023.
The company's real estate assets decreased by 1.3% to $1.3 billion.
Gladstone Commercial Corporation - REIT
NASDAQ:GOOD
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Lessors of Other Real Estate Property
Real Estate and Rental and Leasing
United States of America
MCLEAN
About GOOD
gladstone commercial corporation is a publicly traded reit (nasdaq: good) that invests in single tenant and anchored multi-tenant net leased industrial, office and, to a lesser extent, medical properties nationwide. we also invest alongside developers in build-to-suit transactions where a tenant requires a new building. we buy properties with strong tenants of all sizes and we believe our track record of underwriting the credit of middle market businesses is unmatched. we target primary and secondary growth markets that possess favorable economic growth trends, diversified industries, growing populations, and strong employment. our senior management team, under the guidance of david gladstone, has over 200 years of combined experience investing in real estate and middle market businesses. we have a track record of success, as exhibited by a history of strong distribution yields, consistent occupancy greater than 96.0%, and 10+ years of paying continuous monthly cash distributions. we a