Gladstone Commercial Corporation Provides a Business Update

Rhea-AI Summary

Gladstone Commercial Corporation (Nasdaq: GOOD) reported a robust portfolio performance amid COVID-19, with approximately 99% of September cash base rent collected, consistent with the previous months. The company has maintained a dividend rate despite market challenges, with portfolio occupancy over 95%. Notable activities include acquiring a $10.6 million distribution facility in Indiana, leased to Clabber Girl, and a lease extension with Haier US Appliance Solutions. Available liquidity exceeds $35 million, bolstered by successful capital raising through stock issuance.

Positive

• 99% collection of September cash base rent, consistent with previous months.
• Maintained dividend rate and distributions during the pandemic.
• Portfolio occupancy exceeds 95%.
• Acquisition of a $10.6 million distribution building fully leased by Clabber Girl.
• Lease extension with Haier US Appliance Solutions, indicating successful leasing initiatives.
• Available liquidity exceeds $35 million.

Negative

• Potential future rent relief requests due to COVID-19 uncertainty.

MCLEAN, Va., Sept. 17, 2020 (GLOBE NEWSWIRE) -- Gladstone Commercial Corporation (Nasdaq: GOOD) (“we” or “Gladstone Commercial”) is providing the following business update regarding portfolio performance during this time of market volatility related to the global COVID-19 pandemic.  

• We believe we have continued to outperform the FTSE NAREIT All Equity REIT Index constituents for industrial and office rental collections during the COVID-19 environment. Approximately 99% of September cash base rent has been paid and collected. September rental collections remain consistent with 99% of August and July cash base rents that were paid and collected and 98% of June, May and April cash base rents that were paid and collected. The remaining 1-2% of cash base rents are associated with the previously agreed upon deferral agreements. All deferred amounts are to be paid back by the respective tenants with commencement in July 2020 and ending in March 2021.
  
  
• We remain within a small subset of U.S. equity REITs that have maintained their dividend rate and payment of distributions in tandem with this high level of rental collections during the COVID-19 pandemic. Portfolio occupancy is in excess of 95% as of September 17, 2020.
  
  
• We continue to execute our growth strategy.  On September 2, 2020 we announced the acquisition of a 153,600 square foot distribution building in Terre Haute, Indiana on September 1, 2020 for $10.6 million. The property is 100% leased by Clabber Girl Corporation (“Clabber Girl”) with a full guaranty from Clabber Girl’s publicly traded parent company, B&G Foods (NYSE: BGS). Clabber Girl is the top manufacturer of branded retail baking powder, baking soda and corn starch. The GAAP capitalization rate on the investment is 8.0%.  
  
  
• Our leasing initiatives continue to be successful in the COVID-19 environment. On September 8, 2020 we announced a lease extension through August-2032 with Haier US Appliance Solutions at our 504,400 square foot build-to-suit industrial facility in Crandall, GA. The lease extension was in exchange for our investing in capital improvements at the property to support Haier’s operations to import and distribute appliance components through the Appalachian Regional Port via rail from the Port of Savannah. The transaction is evidence of our initiative to acquire mission critical industrial facilities at select inland port locations throughout the U.S.
  
  
• We have continued to raise additional capital through our at-the-market programs to fund acquisitions and operating needs. Since July 1, 2020 we have issued 215,000 shares of common stock for net proceeds of $4.0 million and 137,000 shares of Series E perpetual preferred stock for net proceeds of $3.2 million.
  
  
• We continue to have ample liquidity and a strong capital structure. As of September 17, 2020, our current available liquidity is in excess of $35 million via our revolving credit facility and cash on hand.

We may receive additional rent relief requests during the COVID-19 pandemic. However, we are unable to quantify the outcomes of potential future negotiation of relief packages, the success of any tenant’s financial prospects or the amount of relief requests that we will ultimately receive or grant.

About Gladstone Commercial (Nasdaq: GOOD)

Gladstone Commercial is a real estate investment trust focused on acquiring, owning and operating net leased industrial and office properties across the United States. As of June 30, 2020, Gladstone Commercial’s real estate portfolio consisted of 122 properties located in 28 states, totaling approximately 15.1 million square feet. For additional information please visit www.gladstonecommercial.com

For Broker Submittals:

South Central:	Midwest/Northeast:
Buzz Cooper	Matt Tucker
Senior Managing Director	Senior Managing Director
(703) 287-5815	(703) 287-5830
Buzz.Cooper@gladstonecompanies.com	Matt.Tucker@gladstonecompanies.com
Southeast / West:
Brandon Flickinger
Managing Director
(703) 287-5819
Brandon.Flickinger@gladstonecompanies.com

Investor or Media Inquiries:

Bob Cutlip

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, 2019, as filed with the SEC on February 12, 2020 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 Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstonecompanies.com.

SOURCE: Gladstone Commercial Corporation

FAQ

What is Gladstone Commercial's rental collection rate for September 2020?

Gladstone Commercial reported a rental collection rate of approximately 99% for September 2020.

What was the occupancy rate of Gladstone Commercial's portfolio as of September 2020?

As of September 17, 2020, Gladstone Commercial's portfolio occupancy rate was in excess of 95%.

What significant acquisition did Gladstone Commercial make in September 2020?

On September 1, 2020, Gladstone Commercial acquired a 153,600 square foot distribution building in Terre Haute, Indiana for $10.6 million.

How has Gladstone Commercial managed its dividend during the pandemic?

Gladstone Commercial has maintained its dividend rate and payment of distributions during the COVID-19 pandemic.

What is Gladstone Commercial's current liquidity status?

As of September 17, 2020, Gladstone Commercial has over $35 million in available liquidity.