from Gladstone Commercial Corporation (NASDAQ:GOOD)
Gladstone Commercial Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2024
Please note that the limited information that follows in this press release is not adequate to make an informed investment judgment.
MCLEAN, VA / ACCESS Newswire / February 18, 2025 / Gladstone Commercial Corporation (Nasdaq:GOOD) ("Gladstone Commercial" or the "Company") today reported financial results for the fourth quarter and year ended December 31, 2024. A description of funds from operations, or FFO, FFO as adjusted for comparability, and Core FFO, all three non-GAAP (generally accepted accounting principles in the United States) financial measures, are located at the end of this press release. All per share references are to fully-diluted weighted average shares of common stock and Non-controlling OP Units, unless otherwise noted. For further detail, please also refer to both the quarterly financial supplement and the Company's Annual Report on Form 10-K, which can be found on the Investors section of our website at www.gladstonecommercial.com.
Summary Information (dollars in thousands, except per share data):
As of and for the three months ended | ||||||||||||||||||
December 31, 2024 | September 30, 2024 | $ Change | % Change | |||||||||||||||
Operating Data: | ||||||||||||||||||
Total operating revenue | $ | 37,375 | $ | 39,235 | $ | (1,860 | ) | (4.7 | )% | |||||||||
Total operating expenses | (24,974 | ) | (1) | (28,546 | ) | (4) | 3,572 | (12.5 | )% | |||||||||
Other (expense) income, net | (5,208 | ) | (2) | 1,032 | (5) | (6,240 | ) | (604.7 | )% | |||||||||
Net income | $ | 7,193 | $ | 11,721 | $ | (4,528 | ) | (38.6 | )% | |||||||||
Less: Dividends attributable to preferred stock | (3,106 | ) | (3,106 | ) | - | - | % | |||||||||||
Less: Dividends attributable to senior common stock | (104 | ) | (106 | ) | 2 | (1.9 | )% | |||||||||||
Less/Add: (Loss) gain on extinguishment of Series F preferred stock, net | (9 | ) | 2 | (11 | ) | (550.0 | )% | |||||||||||
Net income available to common stockholders and Non-controlling OP Unitholders | $ | 3,974 | $ | 8,511 | $ | (4,537 | ) | (53.3 | )% | |||||||||
Add: Real estate depreciation and amortization | 13,102 | 13,343 | (241 | ) | (1.8 | )% | ||||||||||||
Add: Impairment charge | 1,780 | 4,549 | (2,769 | ) | (60.9 | )% | ||||||||||||
Less: Gain on sale of real estate, net | (3,674 | ) | (10,319 | ) | 6,645 | (64.4 | )% | |||||||||||
Funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 15,182 | $ | 16,084 | $ | (902 | ) | (5.6 | )% | |||||||||
Add: Convertible senior common distributions | 104 | 106 | (2 | ) | (1.9 | )% | ||||||||||||
Funds from operations available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 15,286 | $ | 16,190 | $ | (904 | ) | (5.6 | )% | |||||||||
Funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 15,182 | $ | 16,084 | $ | (902 | ) | (5.6 | )% | |||||||||
Add: Asset retirement obligation expense | 34 | 33 | 1 | 3.0 | % | |||||||||||||
Add: Realized loss on interest rate hedging instruments | - | 51 | (51 | ) | (100.0 | )% | ||||||||||||
Core funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 15,216 | $ | 16,168 | $ | (952 | ) | (5.9 | )% | |||||||||
Add: Convertible senior common distributions | 104 | 106 | (2 | ) | (1.9 | )% | ||||||||||||
Core funds from operations available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 15,320 | $ | 16,274 | $ | (954 | ) | (5.9 | )% | |||||||||
Share and Per Share Data: | ||||||||||||||||||
Net income available to common stockholders and Non-controlling OP Unitholders - basic and diluted | 0.09 | 0.20 | (0.11 | ) | (55.0 | )% | ||||||||||||
FFO available to common stockholders and Non-controlling OP Unitholders - basic | 0.35 | 0.38 | (0.03 | ) | (7.9 | )% | ||||||||||||
FFO available to common stockholders and Non-controlling OP Unitholders - diluted | 0.35 | 0.38 | (0.03 | ) | (7.9 | )% | ||||||||||||
Core FFO available to common stockholders and Non-controlling OP Unitholders - basic | 0.35 | 0.38 | (0.03 | ) | (7.9 | )% | ||||||||||||
Core FFO available to common stockholders and Non-controlling OP Unitholders - diluted | 0.35 | 0.38 | (0.03 | ) | (7.9 | )% | ||||||||||||
Weighted average shares of common stock and Non-controlling OP Units outstanding - basic | 43,963,909 | 42,830,159 | 1,133,750 | 2.6 | % | |||||||||||||
Weighted average shares of common stock and Non-controlling OP Units outstanding - diluted | 44,294,365 | 43,169,458 | 1,124,907 | 2.6 | % | |||||||||||||
Cash dividends declared per common share and Non-controlling OP Unit | $ | 0.30 | $ | 0.30 | $ | - | - | % | ||||||||||
Financial Position | ||||||||||||||||||
Real estate, before accumulated depreciation | $ | 1,219,918 | (3) | $ | 1,238,271 | (6) | $ | (18,353 | ) | (1.5 | )% | |||||||
Total assets | $ | 1,094,348 | $ | 1,096,315 | $ | (1,967 | ) | (0.2 | )% | |||||||||
Mortgage notes payable, net, borrowings under revolver, borrowings under term loan, net, and senior unsecured notes, net | $ | 693,385 | $ | 692,647 | $ | 738 | 0.1 | |||||||||||