Gladstone Commercial Provides a Business Update

Rhea-AI Summary

Gladstone Commercial Corporation (Nasdaq:GOOD) reported significant developments amid market volatility. On January 26, 2021, the company acquired a 180,152 square foot distribution facility in Findlay, OH for $11 million, leased fully to American Plastics, with a 7.3% cap rate. Approximately 98% of January cash base rent was collected. However, one tenant at the medical office facility in Baytown, TX will cease operations, which represents 0.01% of annual base rents. The company continues to maintain a liquidity of $25 million as of January 28, 2021.

Positive

• Acquisition of a 180,152 square foot distribution property for $11 million, enhancing portfolio.
• Achieved 98% collection rate of January cash base rent.
• Maintained portfolio occupancy above 95%.
• Strong liquidity position with approximately $25 million available.

Negative

• One tenant at the medical office facility in Baytown, TX ceasing operations, impacting 0.01% of annual base rents.

MCLEAN, VA / ACCESSWIRE / January 28, 2021 / 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.

• We continue to execute our growth strategy. On January 26, 2021, we announced the acquisition of a 180,152 square foot distribution building in Findlay, OH for $11.0 million. The property is 100% leased by American Plastics, a designer, manufacturer, and distributor of plastic-injection molded products for the household storage, garage storage, and commercial cleaning end-markets. The triple net lease with American Plastics has approximately 14 years remaining as of closing. The building is expandable by approximately 40,000 square feet. The going-in cap rate is 7.3% and the GAAP capitalization rate on the investment is 8.4%. Since January 1, 2019, we have acquired $269.2 million of industrial properties, consistent with our stated goal of increasing our allocation of industrial investments.
• Approximately 98% of January cash base rent has been paid and collected. In January, one of our two tenants at our medical office facility in Baytown, TX notified us that they will be ceasing operations at the property. The tenant represents 0.01% of our annual base rents. We are currently evaluating strategic alternatives for the property. 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 commencing in July 2020 and ending in March 2021. Portfolio occupancy is in excess of 95% as of January 28, 2021.
• 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 1,633,000 shares of common stock for net proceeds of $29.5 million and 214,000 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. As of January 28, 2021 our current available liquidity is approximately $25 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 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:

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

Midwest/Northeast:

Matt Tucker
Executive Vice President
(703) 287-5830
Matt.Tucker@gladstonecompanies.com

Southeast / Mountain 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/626591/Gladstone-Commercial-Provides-a-Business-Update

FAQ

What recent acquisition did Gladstone Commercial Corporation announce?

Gladstone Commercial announced the acquisition of a 180,152 square foot distribution building in Findlay, OH for $11 million on January 26, 2021.

How much of January cash base rent was collected by Gladstone Commercial?

Approximately 98% of January cash base rent has been paid and collected.

What is the current occupancy rate of Gladstone Commercial's portfolio?

As of January 28, 2021, Gladstone Commercial's portfolio occupancy is above 95%.

What is the company’s liquidity status?

Gladstone Commercial reported approximately $25 million in available liquidity as of January 28, 2021.

What impact does the COVID-19 pandemic have on Gladstone Commercial's tenants?

The company anticipates receiving additional rent relief requests during the COVID-19 pandemic, though it cannot quantify potential outcomes.