NASDAQ$GOOD

Gladstone Commercial Corp · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported financial results, showing a Core FFO increase due to lease revenue from acquisitions and lease acceleration, offset by increased interest expense.

Gladstone Commercial Corporation reported a net loss attributable to common stockholders of $3.0 million, or $0.08 per share. Core FFO available to common shareholders was $15.4 million, a 14.8% increase compared to the previous quarter, equating to $0.42 per share.

  • Collected 98% of cash rents owed during the first quarter 2021.
  • Acquired a 180,152 square foot industrial facility in Findlay, Ohio for $11.1 million, which is 100% leased to one tenant for 14.2 years.
  • Sold two non-core properties as part of capital recycling strategy for $5.5 million.
  • Leased 189,210 vacant square feet with a 5.2 year lease term at one property.

Headline financials

Total Revenue

$34.7M

Previous: $33.6M+3.1%
EPS (adj)

$0.42

Previous: $0.40+5.0%
Square feet leased

95.5%

Previous: 96.6%-1.1%
Free Cash Flow

$79K

Previous: $2.27M-96.5%
Net Income

$79K

Previous: $2.27M-96.5%
Operating Income

$7.77M

Previous: $9.53M-18.4%
Gross Profit

$34.7M

Previous: $33.6M+3.1%
Cash & Equivalents

$9.87M

Previous: $9.85M+0.2%
Total Assets

$1.09B

Previous: $1.1B-1.0%

Revenue & EPS history

Gladstone Commercial · Revenue · Quarterly

$34.7M

Q1 2021+3.1%vs Q1 2020
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Forward guidance

The company anticipates tenants will successfully navigate the current economic climate and will be able to continue operating successfully when operating restrictions are lifted and economic normalcy improves. The company expects to continue to have access to the debt and equity markets, as necessary, for added liquidity.

Tailwinds

  • Same store rents, which have increased by 2% annually in recent years, should be stable and rising as we continue our growth.
  • Focus on investing in target markets, with an emphasis on industrial properties and actively managing our portfolio.
  • Remain in good standing on credit facility, which continues to provide added flexibility on balance sheet.
  • Continue capital recycling program, whereby non-core assets are sold and the proceeds are used to de-lever the portfolio and acquire properties in target growth markets.
  • Actively marketing remaining vacant space and anticipate positive outcomes.

Headwinds

  • Expect to face challenges due to the COVID-19 pandemic.
  • Downturns in the current economic environment.
  • The performance of tenants.
  • The impact of competition on efforts to renew existing leases or re-lease space.
  • Significant changes in interest rates.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.7%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+1.2%

Avg return

30 days after

50%

32 / 64 earnings

Positive

+20.3%

Q1 2020

Best reaction

-6.5%

Q1 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.7%-2.6%-0.9%
Q4 2025+5.0%+9.4%+2.3%
Q3 2025+0.6%-4.2%-5.0%
Q1 2025-0.4%+3.8%+4.6%
Q4 2024+0.1%-1.9%-8.2%
Q3 2024+9.4%+10.5%+12.0%
Q2 2024+3.7%+4.7%+8.4%
Q1 2024+6.2%+8.8%+7.0%
Q4 2023+1.0%-0.4%+8.0%
Q3 2023-4.3%-5.5%+5.8%
Q2 2023+3.6%+2.8%-4.8%
Q1 2023-0.3%-3.2%+1.9%
Q4 2022-5.9%-10.4%-22.7%
Q3 2022+1.9%+9.4%+10.8%
Q2 2022-1.7%-4.3%-9.0%
Q1 2022-2.4%-8.7%-4.5%
Q4 2021+3.0%+0.8%+1.1%
Q3 2021+1.2%+3.5%+0.3%
Q2 2021-1.8%-1.0%-2.8%
Q1 2021-2.1%-2.0%+6.8%
Q4 2020-0.5%-3.5%+3.1%
Q3 2020-1.1%+12.3%+12.9%
Q2 2020+2.6%+0.1%+1.8%
Q1 2020+20.3%+13.5%+18.3%
Q4 2019-1.2%-1.4%-30.8%
Q3 2019+3.7%+4.1%+0.2%
Q2 2019-0.7%-0.5%+5.9%
Q1 2019+4.7%+1.9%-1.1%
Q4 2018+2.2%+3.2%+3.3%
Q3 2018+2.0%+1.2%+2.6%
Q2 2018+1.8%+1.1%+2.3%
Q1 2018+4.2%+5.1%+8.4%
Q4 2017-1.4%+0.0%+3.7%
Q3 2017+5.6%+4.3%+6.5%
Q2 2017-3.6%-3.5%-0.0%
Q1 2017-6.5%-7.2%-6.5%
Q4 2016+0.4%+1.0%-0.7%
Q3 2016-6.0%-3.4%+5.3%
Q2 2016+1.3%+2.5%+0.7%
Q1 2016-1.0%
Q4 2015+7.7%
Q3 2015-3.5%
Q2 2015-0.1%
Q1 2015-0.2%
Q4 2014+2.0%
Q3 2014+0.2%
Q2 2014-0.6%
Q1 2014+0.9%
Q4 2013+1.1%
Q3 2013+1.3%
Q2 2013-1.6%
Q1 2013+0.4%
Q4 2012-0.2%
Q3 2012+0.0%
Q2 2012-1.8%
Q1 2012+0.9%
Q4 2011-2.4%
Q3 2011-0.7%
Q3 2010-0.7%
Q2 2011-2.1%
Q2 2010-2.1%
Q4 2010-2.1%
Q1 2011-0.4%
Q1 2010+4.4%

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