Gladstone Commercial Provides a Business Update

Rhea-AI Summary

Gladstone Commercial Corporation (NASDAQ:GOOD) provided a business update on February 23, 2021, amid market volatility due to COVID-19. Approximately 98% of base rents for January and February have been collected, with portfolio occupancy exceeding 95%. The company added a $65 million term loan to enhance liquidity, which stands at about $25 million. In 2020, Gladstone acquired nine industrial properties for $130 million and maintained a 99% collection rate of rental charges. Core FFO grew 9.2% year-over-year, and dividends have been paid consistently for 193 months.

Positive

• 98% of base rents collected for February, maintaining strong cash flow.
• Portfolio occupancy exceeds 95%, indicating robustness in property holdings.
• Added a $65 million term loan to enhance liquidity and growth prospects.
• Acquired nine fully occupied industrial properties in 2020, boosting portfolio value.
• Core FFO increased 9.2% year-over-year, showcasing financial health.
• Dividends paid for 193 consecutive months, reflecting stable shareholder returns.

Negative

• Tenant at the Rancho Cordova property exercised early termination, representing 0.9% of annual base rents.
• Potential for rent relief requests during the COVID-19 pandemic could affect future cash flows.

MCLEAN, VA / ACCESSWIRE / February 23, 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 this time of market volatility related to, among other factors, the global COVID-19 pandemic.

• Approximately 98% of February cash base rents and January cash base rents have been paid and collected. The remaining 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 during their lease term. Portfolio occupancy is in excess of 95% as of February 23, 2021. The incremental increase in vacancy from January to February is a result of our tenant at our 61,358 square foot single-story office property in Rancho Cordova, CA exercising its early termination option, effective at the end of January. The tenant represented 0.9% of our annual base rents. We are currently under contract to sell the property, with a closing anticipated to occur in March 2021.

• 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. We anticipate this will further enable future portfolio growth. The new term loan has a maturity date of February 2026. As a result, we continue to have ample liquidity and a strong capital structure. As of February 23, 2021, our current available liquidity is approximately $25 million via our available borrowings and cash on hand.

• During the fiscal year ended December 31, 2020, we purchased nine fully occupied industrial properties, with an aggregate of approximately 1.7 million square feet of rental space, for $130.0 million, at a weighted average cap rate of 7.41% and collected 99% of 2020 base rental charges owed to us throughout the COVID-19 pandemic. We completed 20 lease transactions during 2020; the weighted average straight line rent increased by 4.7% and the overall tenant improvement allowance was approximately $3 per square foot. For the year, Core FFO available to common stockholders and Non-controlling OP Unitholders was $55.4 million, a 9.2% increase when compared to the year ended December 31, 2019. We have paid a monthly common dividend to our shareholders without delay or reduction for 193 consecutive months.

• 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 1,726,790 shares of common stock for net proceeds of $31.2 million and 214,000 shares of Series E perpetual preferred stock for net proceeds of $5.2 million.

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:

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 / 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, 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

View source version on accesswire.com:
https://www.accesswire.com/631488/Gladstone-Commercial-Provides-a-Business-Update

FAQ

What is the current occupancy rate for Gladstone Commercial Corporation?

As of February 23, 2021, the portfolio occupancy rate is over 95%.

How much of the rents has Gladstone Commercial collected in February?

Approximately 98% of base rents for February have been paid and collected.

What significant financial move did Gladstone Commercial make recently?

On February 11, 2021, Gladstone added a new $65 million term loan to its credit facility.

What properties did Gladstone Commercial acquire in 2020?

In 2020, Gladstone acquired nine fully occupied industrial properties totaling approximately 1.7 million square feet for $130 million.

How has Gladstone's Core FFO changed year-over-year?

Core FFO available to common stockholders increased by 9.2% for the year ended December 31, 2020.