Gladstone Commercial Provides a Business Update

Rhea-AI Summary

Gladstone Commercial Corporation (NASDAQ:GOOD) provided a business update on November 16, 2020, highlighting strong rent collection despite COVID-19 challenges. As of now, 98% of November cash base rents and 100% of October rents have been collected. Strong third-quarter results reported a Core FFO of $14 million, or $0.40 per share. The company raised $11.3 million through share issuances since July and has over $30 million in liquidity. While negotiations for potential tenant rent relief continue, Gladstone maintains a solid capital structure and portfolio occupancy above 95%.

Positive

• 98% of November cash base rents collected and 100% of October rents collected.
• Core FFO for the third quarter was $14 million, or $0.40 per share.
• Portfolio occupancy exceeds 95% as of November 16, 2020.
• Raised approximately $11.3 million through share offerings since July 1, 2020.
• Liquidity exceeds $30 million via revolving credit facility and cash.

Negative

• Four childcare centers experienced delays in rent collection, impacted by COVID-19.

MCLEAN, VA / ACCESSWIRE / November 16, 2020 / Gladstone Commercial Corporation (NASDAQ:GOOD) ("we" or "Gladstone Commercial") is a real estate investment trust focused on acquiring, owning and operating net leased industrial and office properties across the United States. We are providing the following business update regarding our portfolio performance during the time of market volatility related to, among other factors, the global COVID-19 pandemic.

• Approximately 98% of November cash base rents and 100% of October cash base rents have been paid and collected. We collected 99% of third quarter cash base rents and 98% of second quarter cash base rents. The minor increase in uncollected base rent in November is attributable to our four childcare and early learning centers in Texas and Ohio operated by Crème de la Crème, which have been adversely impacted by the COVID-19 pandemic. We are in current negotiations with the operator regarding potentially amended lease terms. With the exception of the child care and learning centers previously mentioned, all cash base rental payments are paid and required deferred payments are current and consistent with payment by the respective tenants by March 2021.
• Our strong performance was reflected in our results for the third quarter ended September 30, 2020. Core FFO available to common shareholders and non-controlling OP unitholders for the three months ended September 30, 2020, totaled $14.0 million, or $0.40 per share. Portfolio occupancy is in excess of 95%, as of November 16, 2020. Core FFO available to common stockholders and non-controlling OP unitholders for the nine months ended September 30, 2020, totaled $42.0 million, or $1.20 per share.
• We continue to execute our capital recycling program with a goal of selectively disposing of non-core assets and redeploying the capital into accretive acquisitions. On October 29, 2020, we announced the sale of three adjacent single-story office buildings in Champaign, IL. We realized net proceeds of approximately $13.2 million and a gain of approximately $4.1 million upon the sale. We owned the assets for approximately 14 years and realized a leveraged internal rate of return of approximately 13.3% on its investment.
• We have continued to raise additional capital through our at-the-market trading programs to fund acquisitions and operating needs. Since July 1, 2020, we have issued 339,000 shares of common stock for net proceeds of $6.2 million and 214,000 shares of Series E perpetual preferred stock for net proceeds of $5.1 million.
• We continue to have ample liquidity and a strong capital structure. As of November 16, 2020, our current available liquidity is in excess of $30 million via our revolving credit facility and cash on hand.
• In October we elevated three members of our senior management team to Executive Vice President and in combination with our Chief Financial Officer, we have recognized them as the future leaders of our company.

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 September 30, 2020, Gladstone Commercial's real estate portfolio consisted of 122 properties located in 28 states, totaling approximately 14.9 million square feet. For additional information please visit www.gladstonecommercial.com

For Broker Submittals:

South Central:	Midwest/Northeast:
Buzz Cooper	Matt Tucker
Executive Vice President	Executive Vice President
(703) 287-5815	(703) 287-5830
Buzz.Cooper@gladstonecompanies.com	Matt.Tucker@gladstonecompanies.com
Southeast / West:
Brandon Flickinger
Executive Vice President
(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

View source version on accesswire.com:
https://www.accesswire.com/616977/Gladstone-Commercial-Provides-a-Business-Update

FAQ

What is Gladstone Commercial's current cash rent collection status?

Gladstone Commercial reported 98% of November cash base rents and 100% of October rents have been collected.

What was the Core FFO for Gladstone Commercial for Q3 2020?

The Core FFO for the third quarter of 2020 was $14 million, equivalent to $0.40 per share.

What is the portfolio occupancy rate for Gladstone Commercial?

As of November 16, 2020, Gladstone Commercial's portfolio occupancy is above 95%.

How much liquidity does Gladstone Commercial currently have?

Gladstone Commercial currently has over $30 million in liquidity.

What challenges has Gladstone Commercial faced during the COVID-19 pandemic?

Gladstone Commercial has faced challenges with four childcare centers regarding rent collection due to COVID-19 impacts.