Gladstone Commercial Corporation Reports Results for the Third Quarter Ended September 30, 2023

Rhea-AI Summary

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.

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

FAQ

What is the stock symbol for Gladstone Commercial Corporation?

The stock symbol for Gladstone Commercial Corporation is GOOD.

What were the financial results for Q3 2023?

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.

How did the net income change compared to the previous quarter?

The net income improved to $1.8 million in Q3 2023 from a loss of $4.6 million in the previous quarter.

What was the change in funds from operations available to common stockholders and Non-controlling OP Unitholders?

Funds from operations available to common stockholders and Non-controlling OP Unitholders decreased by 20.2% to $13.1 million in Q3 2023.

What happened to the company's real estate assets?

The company's real estate assets decreased by 1.3% to $1.3 billion.