NASDAQ$GOOD

Gladstone Commercial Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported financial results, showing a decrease in Core FFO but an increase in net income compared to the previous quarter.

Gladstone Commercial Corporation reported a net income of $1.792 million for the third quarter of 2023, a significant improvement compared to the net loss of $4.588 million in the previous quarter. Core FFO, however, decreased by 17.3% to $13.7 million, or $0.34 per share, primarily due to accelerated rent from a lease termination in the previous quarter and higher interest expenses.

  • Collected 100% of cash rents for July, August, and September.
  • Acquired two fully-occupied properties for $11.9 million at a weighted average cap rate of 9.54%.
  • Sold three non-core properties for $19.0 million as part of the capital recycling program.
  • Renewed 397,524 square feet of leases with remaining terms ranging from 13.9 to 18.7 years.

Headline financials

Total Revenue

$36.5M

Previous: $39.8M-8.5%
EPS (adj)

$0.34

Previous: $0.44-22.7%
Square feet leased

96.6%

Previous: 96.9%-0.3%
Capital Expenditures

-$396K

No prior period
Free Cash Flow

$1.79M

Previous: $2.5M-28.5%
Net Income

$1.79M

Previous: $2.5M-28.5%
Operating Income

$6.88M

Previous: $2.39M+188.2%
Gross Profit

$36.5M

Previous: $39.8M-8.5%
Cash & Equivalents

$18.3M

Previous: $13.5M+34.9%
Total Assets

$1.17B

Previous: $1.21B-3.5%

Revenue & EPS history

Gladstone Commercial · Revenue · Quarterly

$36.5M

Q3 2023-8.5%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Gladstone Commercial anticipates challenges due to the pandemic's effects and inflation, but expresses confidence in tenant credit underwriting and the ability to acquire accretive assets. The company plans to continue its capital recycling program, focusing on industrial investment opportunities and target growth markets.

Tailwinds

  • Expect same store rents, which have increased by 2% annually in recent years, should continue to rise as we grow.
  • Collected 100% of the third quarter's cash rents and 100% of October cash rents.
  • Believe our same store rents, which have increased by 2% annually in recent years, should continue to rise as we grow.
  • Believe our same store rents, which have increased by 2% annually in recent years, should continue to rise as we grow.
  • In 2022, we amended our credit facility to add a new term loan component, and increased our revolver, which we believe will be a great source of financial flexibility in these uncertain markets.

Headwinds

  • Expect to face challenges due to the lingering effects of the pandemic and significant inflation with a corresponding increase in interest rates.
  • Expect to face challenges due to the lingering effects of the pandemic and significant inflation with a corresponding increase in interest rates.
  • Expect to face challenges due to the lingering effects of the pandemic and significant inflation with a corresponding increase in interest rates.
  • Expect to face challenges due to the lingering effects of the pandemic and significant inflation with a corresponding increase in interest rates.
  • Expect to face challenges due to the lingering effects of the pandemic and significant inflation with a corresponding increase 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 2023

Historical avgQ3 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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