Gladstone Commercial Corporation Executes 15-Year Lease Renewal at Office Property in New Albany, Ohio

Rhea-AI Summary

Gladstone Commercial Corporation (Nasdaq:GOOD) announced a 15-year lease renewal with CVG Management Corp. (Nasdaq:CVGI) for its office building in New Albany, Ohio. This agreement extends CVG's occupancy of the 50,499 square foot property until March 31, 2037, capitalizing on its proximity to the upcoming $20+ billion Intel chip manufacturing campus. The lease is expected to enhance Gladstone's Adjusted Funds from Operations (AFFO) and Funds from Operations (FFO) while improving the weighted average lease term of its office portfolio.

Positive

• 15-year lease renewal extends occupancy until March 31, 2037.
• Lease positively impacts Gladstone's AFFO and FFO metrics.
• Property benefits from proximity to Intel's $20+ billion chip campus.

Negative

• None.

MCLEAN, VA / ACCESSWIRE / March 28, 2022 / Gladstone Commercial Corporation (Nasdaq:GOOD) ("Gladstone Commercial") announced today that it executed a 15-year lease with CVG Management Corp. ("CVG") for its office building located in New Albany, Ohio. The property is near Intel's 3,200 acre, $20+ billion chip manufacturing campus to be developed in New Albany. The lease extends CVG's occupancy of the entire 50,499 square foot office building through March 31, 2037.

CVG (Nasdaq:CVGI) is a global provider of systems, assemblies and components to the global commercial vehicle market, the electric vehicle market, and the warehouse automation market. Information about CVG and its products is available on the internet at www.cvgrp.com.

"This lease renewal builds upon the 14 years that CVG has already occupied the property. Listening to our tenants and ensuring they have a quality building and responsive ownership leads to Gladstone Commercial's continued exceptional occupancy rates with diversified tenants, such as CVG," said Karen Priesman, Senior Vice President, who leads asset management within the Midwest Region for Gladstone Commercial.

"Gladstone Commercial is pleased to extend CVG's lease in their headquarter building. By doing so we increase the company's AFFO and FFO contributed by this office property as well as weighted average lease term of our office portfolio" said Ryan Carter, Executive Vice President for the Midwest and Western Regions of Gladstone Commercial.

Gladstone would like to thank the JLL team of Mark Kolar and Jeff Carey for their efforts representing CVG and assisting in the completion of this transaction.

About Gladstone Commercial (Nasdaq:GOOD)

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. As of December 31, 2021, Gladstone Commercial's real estate portfolio consisted of 129 properties located in 27 states, totaling approximately 16.2 million square feet. For additional information please visit www.gladstonecommercial.com.

For Broker Submittals:

South Central:
Buzz Cooper
Co-President/Chief Investment Officer
(703) 287-5815
Buzz.Cooper@gladstonecompanies.com

Southeast/Northeast:

EJ Wislar
Senior Vice President
(703) 462-1027
EJ.Wislar@gladstonecompanies.com

Midwest/West:

Ryan Carter
Executive Vice President
(571) 451-0019
Ryan.Carter@gladstonecompanies.com

Investor or Media Inquiries:

Bob Cutlip
Co-President - Gladstone Commercial Corporation
(703) 287-5878
Bob.Cutlip@gladstonecompanies.com

All statements contained in this press release, other than historical facts, may constitute "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. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. Readers should not rely upon forward-looking statements because the matters they describe are subject to known and unknown risks and uncertainties that could cause the Gladstone Commercial's business, financial condition, liquidity, results of operations, funds from operations or prospects to differ materially from those expressed in or implied by such statements. Such risks and uncertainties are disclosed under the caption "Risk Factors" of the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on February 15, 2022 and certain other filings we make 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. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For further information: Gladstone Commercial Corporation, +1-703-287-5893

For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstonecompanies.com.

SOURCE: Gladstone Commercial Corporation

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FAQ

What is the significance of Gladstone Commercial's lease renewal with CVG?

The lease renewal for 15 years ensures stable income and enhances Gladstone's AFFO and FFO metrics due to continued occupancy by CVG.

How does the new lease with CVG affect Gladstone's financial performance?

The lease is expected to positively impact Gladstone's financial performance, increasing AFFO and extending the weighted average lease term of its portfolio.

When does the new lease agreement for the New Albany office property expire?

The lease agreement expires on March 31, 2037.