NASDAQ$GOOD

Gladstone Commercial Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Financial results for the second quarter were reported.

Gladstone Commercial Corporation reported a decrease in net income but an increase in core FFO for the second quarter of 2020. The company collected 98% of cash rents and continued its capital recycling program.

  • Collected 98% of cash rents owed during the second quarter, with the remaining 2% as rent deferrals.
  • Core FFO increased by 3.3% compared to the previous quarter, driven by lower interest expense and LIBOR rates.
  • Net loss attributable to common stockholders was $1.9 million, or $(0.06) per share.
  • Continued capital recycling program with the sale of Maple Heights, Ohio property for $11.4 million.

Headline financials

Total Revenue

$33.5M

Previous: $28.2M+18.9%
EPS (adj)

$0.41

Previous: $0.38+7.9%
Square feet leased

95.5%

Previous: 96.6%-1.1%
Free Cash Flow

$993K

Previous: $2.22M-55.3%
Net Income

$993K

Previous: $2.22M-55.3%
Operating Income

$7.67M

Previous: $9.14M-16.1%
Gross Profit

$33.5M

Previous: $28.2M+18.9%
Cash & Equivalents

$9.56M

Previous: $7.59M+26.0%
Total Assets

$1.09B

Previous: $970M+12.0%

Revenue & EPS history

Gladstone Commercial · Revenue · Quarterly

$33.5M

Q2 2020+18.9%vs Q2 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Forward guidance

Gladstone Commercial anticipates challenges due to the COVID-19 pandemic, but expects tenants to navigate the economic climate successfully. The company expects to continue having access to debt and equity markets and will focus on investing in target markets with an emphasis on industrial properties.

Tailwinds

  • Same store rents should be stable and rising.
  • Continued focus on investing in target markets with an emphasis on industrial properties.
  • Expect to continue to have access to the debt and equity markets, as necessary, for added liquidity.
  • Collected over 98% of second quarter cash rents and 99% of July cash rents.
  • 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.

Headwinds

  • Expect to face challenges due to the COVID-19 pandemic.
  • Decrease in rental income from properties that went vacant after Q1 2020.
  • Net loss attributable to common stockholders and Non-controlling OP Unitholders for the three months ended June 30, 2020 and the three months ended March 31, 2020, was $1.9 million and $0.6 million, or $(0.06) and $(0.02) per share, respectively.
  • Downturns in the current economic environment.
  • The performance of its tenants.

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 Q2 2020

Historical avgQ2 2020

+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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