NASDAQ$GOOD

Gladstone Commercial Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported financial results, showing an increase in net income and FFO, driven by property sales and debt extinguishment.

Gladstone Commercial Corporation reported a net income of $4.551 million for the fourth quarter of 2023, a significant increase compared to the previous quarter. FFO and Core FFO also increased, driven by decreased property operating expenses and successful real estate tax appeals. The company continues its capital recycling strategy, selling non-core assets and reinvesting in target growth markets.

  • Net income available to common stockholders was $1.3 million, or $0.03 per share.
  • FFO available to common stockholders was $14.6 million, or $0.36 per share.
  • Core FFO available to common stockholders was $14.6 million, or $0.36 per share.
  • Collected 100% of 2023 base rent and continued capital recycling program.

Headline financials

Total Revenue

$35.9M

Previous: $37.2M-3.5%
EPS (adj)

$0.36

Previous: $0.34+5.9%
Square feet leased

96.8%

Previous: 96.8%+0.0%
Capital Expenditures

-$305K

No prior period
Net Income

$4.55M

Previous: $1.81M+151.2%
Operating Income

$7.77M

Previous: $10.4M-25.2%
Gross Profit

$30.3M

Previous: $30.5M-0.5%

Revenue & EPS history

Gladstone Commercial · Revenue · Quarterly

$35.9M

Q4 2023-3.5%vs Q4 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Gladstone Commercial anticipates facing challenges due to the pandemic, inflation, and geopolitical issues but feels strongly about its tenant credit underwriting and expects to continue having access to debt and equity markets.

Tailwinds

  • Financial results reflect consistent performance and stabilized revenues
  • Accretive real estate investments made during 2023 and 2022
  • Ability to renew tenants, as well as deleveraging and capital recycling programs
  • Investing $29.5 million in five assets at accretive cap rates
  • Amended credit facility to add a new term loan component and increased revolver

Headwinds

  • Expect to face challenges due to the lingering effects of the pandemic
  • Significant inflation with a corresponding increase in interest rates
  • Geo-political and economic issues arising from the war in Ukraine
  • Economic uncertainty
  • Marketing remaining vacant space and anticipate positive outcomes

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 Q4 2023

Historical avgQ4 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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