NASDAQ$GOOD

Gladstone Commercial Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported financial results with Core FFO at $0.37 per share.

Gladstone Commercial Corporation reported consistent performance with stabilized revenues, full rent collection, and strategic real estate investments, while successfully exiting non-core assets and redeploying capital into target growth markets.

  • Collected 100% of cash rents owed during the second quarter 2021.
  • Acquired a 25,200 square foot industrial facility in Baytown, Texas for $8.2 million, which is 100% leased to one tenant for 12.6 years.
  • Core FFO available to common shareholders was $13.6 million, an 11.5% decrease compared to the previous quarter.
  • Net loss attributable to common stockholders was $3.1 million, or $0.08 per share.

Headline financials

Total Revenue

$33.4M

Previous: $33.5M-0.5%
EPS (adj)

$0.37

Previous: $0.41-9.8%
Properties owned

121

No prior period
Square feet owned

15.5M

No prior period
Square feet leased

96.5%

Previous: 95.5%+1.0%
Free Cash Flow

$2.14M

Previous: $993K+115.7%
Net Income

$2.14M

Previous: $993K+115.7%
Operating Income

$8.38M

Previous: $7.67M+9.3%
Gross Profit

$33.4M

Previous: $33.5M-0.5%
Cash & Equivalents

$14.6M

Previous: $9.56M+53.0%
Total Assets

$1.09B

Previous: $1.09B+0.3%

Revenue & EPS history

Gladstone Commercial · Revenue · Quarterly

$33.4M

Q2 2021-0.5%vs Q2 2020
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Forward guidance

Gladstone Commercial anticipates stable and rising same store rents, continues to focus on industrial properties in target markets, and expects to have access to debt and equity markets as needed.

Tailwinds

  • Continue to opportunistically sell non-core assets and redeploy the proceeds into stronger target growth markets with a focus on industrial investment opportunities.
  • We have collected 100% of second quarter cash rents and 99% of July cash rents.
  • We anticipate our tenants will successfully navigate the current economic climate and will be able to continue operating successfully when remaining operating restrictions are lifted and economic normalcy returns.
  • We amended our credit facility to add a $65.0 million term loan, with a $15.0 million delayed funding component, which was drawn subsequent to the end of the quarter to help fund an acquisition.
  • We also raised $100.0 million with the issuance of our new 6.00% Series G Preferred Stock and used the majority of the proceeds to redeem our 7.00% Series D Preferred Stock, saving on dividend costs to lower our overall cost of capital.

Headwinds

  • We expect to face challenges due to the continuing COVID-19 pandemic.
  • Economic uncertainty may impact tenant operations.
  • Marketing of vacant space may not yield positive outcomes.
  • Access to debt and equity markets may not always be available.
  • Interest rate changes could impact financial performance.

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 2021

Historical avgQ2 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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