Gladstone Commercial Provides a Business Update

Rhea-AI Summary

Gladstone Commercial (NASDAQ:GOOD) reported strong portfolio performance amid market uncertainties due to COVID-19. In March 2021, approximately 98% of cash base rents were collected. The company maintains a dividend rate consistent with high rental collections, and portfolio occupancy exceeds 95%. Recent leasing initiatives include extensions with T-Mobile and Sumitomo Electric, enhancing property value. Gladstone acquired a 180,152 square foot distribution facility for $11.0 million, fully leased by American Plastics. The company has strong liquidity of $28 million as of March 23, 2021.

Positive

• 98% of March cash base rents collected, maintaining high rental collections.
• Dividend payments preserved during pandemic despite industry challenges.
• Portfolio occupancy exceeded 95%, indicating strong demand.
• Successful lease extensions with T-Mobile and Sumitomo Electric, enhancing asset value.
• Acquisition of a distribution building for $11.0 million, fully leased to American Plastics.
• Available liquidity of approximately $28 million, ensuring operational stability.

Negative

• Potential future rent relief requests may impact cash flow stability.

MCLEAN, VA / ACCESSWIRE / March 24, 2021 / Gladstone Commercial Corporation (NASDAQ:GOOD) ("we" or "Gladstone Commercial") is a real estate investment trust ("REIT") 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 a time of market volatility related to, among other factors, the global COVID-19 pandemic.

• Approximately 98% of March cash base rents have been paid and collected, resulting in a first-quarter cash base rental collection of 98%.
• 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 March 23, 2021.
• We continue to execute our leasing initiatives in the COVID-19 environment. On March 10, 2021, we announced a five-year lease extension through September 30, 2027, with T-Mobile USA, Inc. at our 69,287 square foot, class A office facility in Wichita, KS. On March 9, 2021, we announced a lease extension and expansion through December 31, 2032, with Sumitomo Electric Lightwave Corp., at our Raleigh, NC industrial building. This lease expansion reflects the team's ability to create value through converting the multi-tenant property to a single-tenant 123,574 square foot industrial building with a long-term lease.
• We continue to execute on our growth strategy. On January 22, 2021, we acquired a 180,152 square foot distribution building in Findlay, OH, for $11.0 million. The average capitalization rate for the transaction is 8.4%. The property is 100% leased by American Plastics, a design, manufacturer, and distributor of plastic-injection molded storage products. American Plastics had approximately 14 years of remaining lease term at closing.
• 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 1.9 million shares of common stock for net proceeds of $35.1 million and 0.2 million shares of Series E perpetual preferred stock for net proceeds of $5.2 million.
• We continue to have ample liquidity and a strong capital structure. On February 11, 2021, we added a new $65.0 million term loan component to our credit facility, inclusive of a $15.0 million delayed funding component. The new term loan has a maturity date of February 2026. As of March 23, 2021, our current available liquidity is approximately $28 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 December 31, 2020, Gladstone Commercial's real estate portfolio consisted of 121 properties located in 28 states, totaling approximately 15.4 million square feet. For additional information, please visit www.gladstonecommercial.com

For Broker Submittals:

Buzz Cooper
Executive Vice President
(703) 287-5815
Buzz.Cooper@gladstonecompanies.com

Investor or Media Inquiries:

Bob Cutlip
President
(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, 2020, as filed with the SEC on February 16, 2021, 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

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FAQ

What is the cash rental collection rate for Gladstone Commercial in March 2021?

Gladstone Commercial's cash rental collection rate for March 2021 is approximately 98%.

How does Gladstone Commercial's dividend payment compare to its rental collections?

Gladstone Commercial has maintained its dividend rate alongside high rental collections during the COVID-19 pandemic.

What is the occupancy rate of Gladstone Commercial's portfolio as of March 2021?

As of March 23, 2021, Gladstone Commercial's portfolio occupancy rate exceeds 95%.

What recent acquisitions has Gladstone Commercial made?

Gladstone Commercial acquired a 180,152 square foot distribution building in Findlay, OH, for $11.0 million, fully leased by American Plastics.

How much liquidity does Gladstone Commercial have as of March 2021?

As of March 23, 2021, Gladstone Commercial has approximately $28 million in available liquidity.