Click here to close now.




















Welcome!

News Feed Item

Gladstone Commercial Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2013

Please note that the limited information that follows in this press release is not adequate to make an informed investment judgment.

MCLEAN, Va., Feb. 18, 2014 /PRNewswire/ -- Gladstone Commercial Corporation (NASDAQ: GOOD), or the Company, today reported financial results for the fourth quarter and year ended December 31, 2013.  A description of funds from operations, or FFO, a relative non-GAAP (generally accepted accounting principles in the United States) financial measure, is located at the end of this press release.  All per share references are to fully-diluted weighted average shares of common stock, unless otherwise noted.  Please read the Company's Annual Report on Form 10-K, filed today with the U.S. Securities and Exchange Commission, or the SEC, which can be retrieved from the SEC's website at www.sec.gov or from the Company's website at www.GladstoneCommercial.com.

(Logo: http://photos.prnewswire.com/prnh/20101005/GLADSTONECOMMERCIAL )

Summary Information (dollars in thousands, except per share data):










As of and for the

three months ended

December 31, 2013


As of and for the

three months ended

September 30, 2013


Change


% Change

Operating Data:








Total operating revenue

$                           16,860


$                       16,190


$                        670


4.1%

Total operating expenses

(9,542)


(8,639)


(903)


10.5%

Other expense

(6,984)


(7,242)


258


-3.6%

Net income 

$                                334


$                            309


$                          25


8.1%

Dividends attributable to preferred stock

(1,023)


(1,023)


-


0.0%

Dividends attributable to senior common stock

(97)


(83)


(14)


16.9%

Net loss available to common stockholders

$                               (786)


$                           (797)


$                          11


-1.4%

Real estate depreciation and amortization

6,453


6,253


200


3.2%

Funds from operations available to common stockholders 

$                             5,667


$                         5,456


$                        211


3.9%

















Share and Per Share Data:








Net loss available to common stockholders - basic and diluted

$                              (0.05)


$                          (0.06)


$                       0.01


-16.7%

FFO available to common stockholders - basic and diluted

$                               0.38


$                           0.38


$                            -


0.0%

Weighted average shares outstanding-basic

14,798,950


14,196,423


602,527


4.2%

Weighted average shares outstanding-diluted

15,095,381


14,453,852


641,529


4.4%

Cash dividends declared per common share

$                             0.375


$                         0.375


$                            -


0.0%

















Financial Position:








Real estate, before accumulated depreciation

$                         642,353


$                     622,481


$                   19,872


3.2%

Total assets

$                         690,525


$                     666,412


$                   24,113


3.6%

Mortgage notes payable, term preferred stock and borrowings

under the line of credit

$                         485,502


$                     477,162


$                     8,340


1.7%

Total stockholders' equity

$                         183,146


$                     164,857


$                   18,289


11.1%

Properties owned

87


85


2


2.4%

Square feet owned

9,256,779


9,000,782


255,997


2.8%

Square feet leased

96.8%


96.7%


0.1%


0.1%


























As of and for the

year ended

December 31, 2013


As of and for the

year ended

December 31, 2012


Change


% Change

Operating Data:








Total operating revenue

$                        61,343


$                       51,270


$                   10,073


19.6%

Total operating expenses

(32,823)


(24,895)


(7,928)


31.8%

Other expense

(26,993)


(22,614)


(4,379)


19.4%

Net income 

$                          1,527


$                         3,761


$                   (2,234)


-59.4%

Dividends attributable to preferred stock

(4,094)


(4,093)


(1)


0.0%

Dividends attributable to senior common stock

(300)


(113)


(187)


165.5%

Net loss available to common stockholders

$                        (2,867)


$                           (445)


$                   (2,422)


544.3%

Real estate depreciation and amortization

22,827


16,831


5,996


35.6%

Funds from operations available to common stockholders 

$                        19,960


$                       16,386


$                     3,574


21.8%

















Share and Per Share Data:








Net loss available to common stockholders - basic and diluted

$                          (0.22)


$                          (0.04)


$                     (0.18)


450.0%

FFO available to common stockholders - basic

$                            1.52


$                           1.50


$                       0.02


1.3%

FFO available to common stockholders - diluted

$                            1.49


$                           1.48


$                       0.01


0.7%

Weighted average shares outstanding-basic

13,164,244


10,953,325


2,210,919


20.2%

Weighted average shares outstanding-diluted

13,402,370


11,075,216


2,327,154


21.0%

Cash dividends declared per common share

$                            1.50


$                           1.50


$                            -


0.0%

















Financial Position:








Real estate, before accumulated depreciation

$                      642,353


$                     533,753


$                 108,600


20.3%

Total assets

$                      690,525


$                     564,779


$                 125,746


22.3%

Mortgage notes payable, term preferred stock and borrowings

under the line of credit

$                      485,502


$                     422,685


$                   62,817


14.9%

Total stockholders' equity

$                      183,146


$                     122,365


$                   60,781


49.7%

Properties owned

87


80


7


8.8%

Square feet owned

9,256,779


8,043,792


1,212,987


15.1%

Square feet leased

96.8%


98.8%


-2.0%


-2.0%

 

Highlights of 2013:

  • Acquired Properties: Purchased seven fully-occupied properties, comprised of an aggregate of approximately 983,000 square feet of rental space, for $131.2 million;
  • Expanded Property: Expanded one existing property by 102,400 square feet at a cost of $3.3 million, and simultaneously extended the lease with the existing tenant by 8 years ;
  • Issued Debt: Borrowed a total of $80.0 million from 7 separate banks, which are collateralized by 7 properties at a weighted average fixed interest rate of 4.53% for periods ranging from 3 to 25 years;
  • Closed New Line of Credit: Closed on a new, $60.0 million unsecured line of credit with a 3-year term, and a 1-year extension option;
  • Issued Common Stock: Issued 4.6 million shares of common stock, resulting in total net proceeds of $80.8 million;  
  • Extended Leases: Extended the term of 6 leases for additional periods ranging from 1 to 13 years;
  • Re-leased Vacant Property: Initiated a 10-year lease with a new tenant for the previously vacant property located in Hazelwood, Missouri; and
  • Paid Distributions: Paid monthly cash distributions for the year totaling $1.50 per share on the common stock, $1.94 per share on the Series A Preferred Stock, $1.88 per share on the Series B Preferred Stock, $1.78 per share on the Series C Term Preferred Stock and $1.05 per share on the senior common stock. The common stock distributions paid in 2013 were an 81.7% return of capital. 

Fourth Quarter 2013 Results: FFO available to common stockholders for the three months ended December 31, 2013, was $5.7 million, or $0.38 per share, a 3.9% increase when compared to the three months ended September 30, 2013. FFO increased primarily due to the increase in operating revenues derived from the two properties acquired this quarter coupled with a full quarter of earnings from the two properties acquired during the third quarter, which was partially offset by an increase in interest expense due to the mortgage debt issued during the third quarter coupled with an increase in overall operating expenses. FFO per share remained flat during the quarter as the additional revenue achieved from new acquisitions was offset by additional shares issued during the fourth quarter.

2013 Results: FFO available to common stockholders for the year ended December 31, 2013, was $20.0 million, or $1.49 per share, a 21.8% increase when compared to the same periods one year ago.  FFO in 2013 increased primarily due to the increase in operating revenues derived from the seven properties acquired in 2013, partially offset by an increase in interest expense from the mortgage debt issued in 2013 coupled with an increase in property operating expenses during the year from vacant properties.   

Net loss available to common stockholders for the three months and year ended December 31, 2013, was ($0.8) million and ($2.9) million, or ($0.05) and ($0.22) per share, respectively, compared to net loss available to common stockholders for the three months ended September 30, 2013 and year ended December 31, 2012, of ($0.8) million and ($0.4) million, or ($0.06) and ($0.04) per share for both respective periods.   A reconciliation of FFO to net loss for the three months ended December 31, 2013 and September 30, 2013 and the years ended December 31, 2013 and 2012, which the Company believes is the most directly comparable GAAP measure to FFO, and a computation of basic and diluted FFO per weighted average share of common stock and basic and diluted net income per weighted average share of common stock is set forth in the Summary Information table above.  

Comments from the Company's President, Bob Cutlip: "Our financial results for the year reflect a substantial increase in revenues from our real estate investments made during the year. The weighted average cap rate on our invested capital in 2013, including acquisitions and expansions, was 8.9%.We have increased our total assets by 50.0% in the past two years, in line with our objective to expand our asset base.  We were able to partially fund these investments with long-term debt and continue to take advantage of the low interest rate environment. We continued our strategy during 2013 of lowering our overall leverage by reducing our weighted average loan to value on newly issued debt to 60% from 68% in 2012. We also continue to focus on our portfolio, working with our existing tenants to extend leases scheduled to expire in 2015 and to re-lease the 3.0% of our space that remains vacant. We are looking forward to an active 2014."

Subsequent to the end of the year:

  • Declared Distributions: Declared monthly cash distributions of $0.125 per share on the common stock, $0.1614583 per share on the Series A Preferred Stock, $0.15625 per share on the Series B Preferred Stock, $0.1484375 per share on the Series C Term Preferred Stock and $0.0875 per share on the senior common stock, for each of January, February and March 2014. 

Conference Call: The Company will hold a conference call on Wednesday, February 19, 2014, at 8:30 a.m. EST to discuss its earnings results.  Please call (800) 860-2442 to enter the conference.  An operator will monitor the call and set a queue for any questions. A conference call replay will be available beginning one hour after the call and will be accessible through March 19, 2014.  To hear the replay, please dial (877) 344-7529 and use conference number 10029513.  The live audio broadcast of the Company's quarterly conference call will also be available online at the Company's website, www.GladstoneCommercial.com.  The event will also be archived and available for replay on the Company's website through April 19, 2014.

About Gladstone Commercial: Gladstone Commercial Corporation is a real estate investment trust that invests in and owns net leased industrial, commercial and retail real property and selectively makes long-term industrial and commercial mortgage loans.  Including payments through January 2013, the Company has paid 109 consecutive monthly cash distributions on its common stock.  Prior to paying distributions on a monthly basis, the Company paid 5 consecutive quarterly cash distributions. The Company has also paid 97 consecutive monthly cash distributions on its Series A Preferred Stock, 88 consecutive monthly cash distributions on its Series B Preferred Stock, 24 consecutive monthly cash distributions on its Series C Term Preferred Stock and 46 consecutive monthly cash distributions on its senior common stock.  The Company has never skipped, reduced or deferred a distribution since inception, over 10 years ago.  Further information on the Company can be found at www.gladstonecommercial.com.

About the Gladstone Companies: Information on the business activities of all the Gladstone funds can be found at www.gladstonecompanies.com.

Investor Relations: For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstone.com.

Non-GAAP Financial Measure – FFO: The National Association of Real Estate Investment Trusts ("NAREIT") developed FFO as a relative non-GAAP supplemental measure of operating performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP.  FFO, as defined by NAREIT, is net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property and impairment losses on property, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures.  FFO does not represent cash flows from operating activities determined in accordance with GAAP and should not be considered an alternative to net income as an indication of its performance or to cash flow from operations as a measure of liquidity or ability to make distributions.  The Company believes that FFO per share provides investors with an additional context for evaluating its financial performance and as a supplemental measure to compare it to other REITs; however, comparisons of its FFO to the FFO of other REITs may not necessarily be meaningful due to potential differences in the application of the NAREIT definition used by such other REITs.  To learn more about FFO, please refer to the Company's Form 10-K for the year ended December 31, 2013, as filed with the SEC today.

The statements in this press release regarding the Company's ability, plans or prospects to re-lease its unoccupied properties, maintain its portfolio, and renegotiate leases are "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.  These forward-looking statements inherently involve certain risks and uncertainties, although they are based on the Company's current plans that are believed to be reasonable as of the date of this press release.  Factors that may cause actual results to differ materially from these forward-looking statements include, but are not limited to, the Company's ability to raise additional capital; availability and terms of capital and financing, both to fund its operations and to refinance its indebtedness as it matures; the duration of, or further downturns in, the current economic environment; the performance of its tenants; the impact of competition on its efforts to renew existing leases or re-lease space; and significant changes in interest rates. Additional factors that could cause actual results to differ materially from those stated or implied by its forward-looking statements are disclosed under the caption "Risk factors" of its Form 10-K for the fiscal year ended December 31, 2013, as filed with the SEC on February 18, 2014.   The Company 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, except as required by law.

 

 

SOURCE Gladstone Commercial Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, answered that question citing examples, showing how to create opportunities for ...
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...
SYS-CON Events announced today that DataClear Inc. will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The DataClear ‘BlackBox’ is the only solution that moves your PC, browsing and data out of the United States and away from prying (and spying) eyes. Its solution automatically builds you a clean, on-demand, virus free, new virtual cloud based PC outside of the United States, and wipes it clean...
WSM International, the pioneer and leader in server migration services, has announced an agreement with WHOA.com, a leader in providing secure public, private and hybrid cloud computing services. Under terms of the agreement, WSM will provide migration services to WHOA.com customers to relocate some or all of their applications, digital assets, and other computing workloads to WHOA.com enterprise-class, secure cloud infrastructure. The migration services include detailed evaluation and planning...
Cloud and datacenter migration innovator AppZero has joined the Microsoft Enterprise Cloud Alliance Program. AppZero is a fast, flexible way to move Windows Server applications from any source machine – physical or virtual – to any destination server, in any cloud or datacenter, using its patented container technology. AppZero’s container is also called a Virtual Application Appliance (VAA). To facilitate Microsoft Azure onboarding, AppZero has two purpose-built offerings: AppZero SP for Azure,...
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
In 2014, the market witnessed a massive migration to the cloud as enterprises finally overcame their fears of the cloud’s viability, security, etc. Over the past 18 months, AWS, Google and Microsoft have waged an ongoing battle through a wave of price cuts and new features. For IT executives, sorting through all the noise to make the best cloud investment decisions has become daunting. Enterprises can and are moving away from a "one size fits all" cloud approach. The new competitive field has ...
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so the...
Everyone talks about continuous integration and continuous delivery but those are just two ends of the pipeline. In the middle of DevOps is continuous testing (CT), and many organizations are struggling to implement continuous testing effectively. After all, without continuous testing there is no delivery. And Lab-As-A-Service (LaaS) enhances the CT with dynamic on-demand self-serve test topologies. CT together with LAAS make a powerful combination that perfectly serves complex software developm...
The Internet of Things is in the early stages of mainstream deployment but it promises to unlock value and rapidly transform how organizations manage, operationalize, and monetize their assets. IoT is a complex structure of hardware, sensors, applications, analytics and devices that need to be able to communicate geographically and across all functions. Once the data is collected from numerous endpoints, the challenge then becomes converting it into actionable insight.
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and a...