NASDAQ$GOOD

Gladstone Commercial Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported financial results for the second quarter ended June 30, 2022.

Gladstone Commercial Corporation reported consistent performance with stabilized revenues, driven by same-store property occupancy, rent collection, and accretive real estate investments. Core FFO available to common shareholders was $15.3 million, or $0.39 per share. Net loss attributable to common stockholders was $1.5 million, or $0.04 per share.

  • Collected 100% of cash rents due during April, May, and June.
  • Purchased five fully-occupied industrial properties for $38.1 million at a weighted average cap rate of 6.57%.
  • Issued 576,604 shares of common stock for net proceeds of $11.4 million under the ATM program.
  • Core FFO available to common shareholders and Non-controlling OP Unitholders was $15.3 million, equaling $0.39 per share.

Headline financials

Total Revenue

$36.4M

Previous: $33.4M+9.1%
EPS (adj)

$0.39

Previous: $0.37+5.4%
Square feet leased

97.3%

Previous: 96.5%+0.8%
Free Cash Flow

$1.58M

Previous: $2.14M-26.1%
Net Income

$1.58M

Previous: $2.14M-26.1%
Operating Income

$8.57M

Previous: $8.38M+2.3%
Gross Profit

$36.4M

Previous: $33.4M+9.1%
Cash & Equivalents

$10.7M

Previous: $14.6M-26.6%
Total Assets

$1.19B

Previous: $1.09B+9.6%

Revenue & EPS history

Gladstone Commercial · Revenue · Quarterly

$36.4M

Q2 2022+9.1%vs Q2 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Gladstone Commercial expects to face challenges due to the continuing COVID-19 pandemic, significant inflation with a corresponding increase in interest rates, and the geo-political and economic issues arising from the war in Ukraine. The company feels strongly about the depth of their tenant credit underwriting and anticipates their tenants will successfully navigate the current economic climate.

Tailwinds

  • Same store rents, which have increased by 2% annually in recent years, should be continuing to rise as we grow.
  • We'll continue to primarily focus on investing in our target markets, with an emphasis on industrial properties and actively managing our portfolio.
  • We are looking forward to continued growth and success for our shareholders.
  • We are in good standing on our credit facility, which continues to provide us added financial flexibility and are actively marketing our remaining vacant space and anticipate positive outcomes.
  • We expect to continue to have access to the debt and equity markets, as necessary, for added liquidity and are extremely pleased with our solid performance over the last several years.

Headwinds

  • We expect to face challenges due to the continuing COVID-19 pandemic
  • We expect to face challenges due to significant inflation with a corresponding increase in interest rates
  • We expect to face challenges due to the geo-political and economic issues arising from the war in Ukraine
  • The performance of its tenants
  • Impact of competition on its efforts to renew existing leases or re-lease space

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 2022

Historical avgQ2 2022

+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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