NASDAQ$GOOD

Gladstone Commercial Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported financial results, showing a net loss attributable to common stockholders of $0.7 million, or $0.02 per share, and core FFO available to common shareholders of $15.0 million, or $0.37 per share.

Gladstone Commercial Corporation reported financial results for the first quarter ended March 31, 2023. Core FFO available to common shareholders was $15.0 million, or $0.37 per share. Net loss attributable to common stockholders was $0.7 million, or $0.02 per share.

  • Collected 100% of cash rents due during January, February, and March.
  • Renewed leases of 356,406 square feet with remaining lease terms ranging from 5.2 to 5.8 years.
  • Issued 236,302 shares of common stock for net proceeds of $4.0 million under ATM program.
  • Paid monthly cash distributions for the quarter totaling $0.30 per share on common stock and Non-controlling OP Units.

Headline financials

Total Revenue

$36.6M

Previous: $35.5M+2.9%
EPS (adj)

$0.37

Previous: $0.40-7.5%
Square feet leased

95.9%

Previous: 97.0%-1.1%
Free Cash Flow

$2.4M

Previous: $3.39M-29.1%
Net Income

$2.4M

Previous: $3.39M-29.1%
Operating Income

$11.1M

Previous: $9.87M+12.6%
Gross Profit

$36.6M

Previous: $35.5M+2.9%
Cash & Equivalents

$14.3M

Previous: $9.59M+49.0%
Total Assets

$1.19B

Previous: $1.15B+2.8%

Revenue & EPS history

Gladstone Commercial · Revenue · Quarterly

$36.6M

Q1 2023+2.9%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Gladstone Commercial anticipates facing challenges due to the lingering effects of the pandemic and significant inflation with a corresponding increase in interest rates. They expect to continue to have access to the debt and equity markets, as necessary, for added liquidity. They believe their same store rents should continue to rise and will continue to primarily focus on investing in target markets, with an emphasis on industrial properties and actively managing their portfolio.

Tailwinds

  • Continue capital recycling program to de-lever portfolio and acquire properties in target growth markets
  • Focus on industrial investment opportunities
  • Depth of tenant credit underwriting will allow them to acquire accretive assets in this business environment
  • Collected 100% of first quarter's cash rents and 100% of April cash rents
  • Anticipate tenants will successfully navigate the current economic climate

Headwinds

  • Expect to face challenges due to the lingering effects of the pandemic
  • Expect to face challenges due to significant inflation
  • Expect to face challenges due to a corresponding increase in interest rates
  • Economic uncertainty
  • Lingering effects of the pandemic

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 2023

Historical avgQ1 2023

+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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