NASDAQ$GOOD

Gladstone Commercial Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported financial results reflecting consistent performance and stabilized revenues.

Gladstone Commercial Corporation reported consistent performance and stabilized revenues for the third quarter ended September 30, 2020. The company collected 99% of cash rents, acquired an industrial facility, sold a property, and renewed leases.

  • Collected 99% of cash rents owed during the third quarter.
  • Acquired a 153,600 square foot industrial facility in Indianapolis, Indiana for $10.6 million.
  • Sold our Maple Heights, Ohio property for $11.4 million, resulting in a gain on sale of $1.2 million.
  • Renewed four leases totaling 617,699 square feet with remaining lease terms ranging from 5.6 to 12.0 years.

Headline financials

Total Revenue

$33.1M

Previous: $28.7M+15.6%
EPS (adj)

$0.40

Previous: $0.39+2.6%
Square feet leased

95.0%

No prior period
Free Cash Flow

$2.85M

Previous: $2.21M+29.0%
Net Income

$2.85M

Previous: $2.21M+29.0%
Operating Income

$7.89M

Previous: $9.22M-14.5%
Gross Profit

$33.1M

Previous: $28.7M+15.6%
Cash & Equivalents

$10.4M

Previous: $6.18M+67.9%
Total Assets

$1.08B

Previous: $978M+10.0%

Revenue & EPS history

Gladstone Commercial · Revenue · Quarterly

$33.1M

Q3 2020+15.6%vs Q3 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

Gladstone Commercial expects to face challenges due to the COVID-19 pandemic but feels strongly about the depth of their tenant credit underwriting. They anticipate their 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.

Tailwinds

  • Collected over 99% of third quarter cash rents and 100% of October cash rents.
  • Believe same store rents, which have increased by 2% annually in recent years, should be stable and rising as we continue our growth.
  • Will continue to primarily focus on investing in our target markets with an emphasis on industrial properties and actively managing our portfolio.
  • Expect to continue to have access to the debt and equity markets, as necessary, for added liquidity.
  • Continue to opportunistically sell non-core assets and redeploy the proceeds into stronger target growth markets.

Headwinds

  • Expect to face challenges due to the COVID-19 pandemic.
  • Downturns in the current economic environment
  • The performance of its tenants
  • The impact of competition on its 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 Q3 2020

Historical avgQ3 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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