We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Name | Symbol | Market | Type |
---|---|---|---|
Gladstone Commercial Corporation | NASDAQ:GOODP | NASDAQ | Preference Share |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 25.14 | 25.13 | 25.25 | 0 | 01:00:00 |
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
MARYLAND
|
|
02-0681276
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
1521 WESTBRANCH DRIVE, SUITE 100
MCLEAN, VIRGINIA
|
|
22102
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock, par value $0.001 per share
|
|
GOOD
|
|
Nasdaq Global Select Market
|
7.00% Series D Cumulative Redeemable Preferred Stock, par value $0.001 per share
|
|
GOODM
|
|
Nasdaq Global Select Market
|
6.625% Series E Cumulative Redeemable Preferred Stock, par value $0.001 per share
|
|
GOODN
|
|
Nasdaq Global Select Market
|
|
|
|
|
|
PAGE
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
ASSETS
|
|
|
|
|
||||
Real estate, at cost
|
|
$
|
1,123,644
|
|
|
$
|
1,056,978
|
|
Less: accumulated depreciation
|
|
216,547
|
|
|
207,523
|
|
||
Total real estate, net
|
|
907,097
|
|
|
849,455
|
|
||
Lease intangibles, net
|
|
122,036
|
|
|
115,465
|
|
||
Real estate and related assets held for sale, net
|
|
—
|
|
|
3,990
|
|
||
Cash and cash equivalents
|
|
9,853
|
|
|
6,849
|
|
||
Restricted cash
|
|
4,678
|
|
|
4,639
|
|
||
Funds held in escrow
|
|
7,971
|
|
|
7,226
|
|
||
Right-of-use assets from operating leases
|
|
5,742
|
|
|
5,794
|
|
||
Deferred rent receivable, net
|
|
35,599
|
|
|
37,177
|
|
||
Other assets
|
|
5,849
|
|
|
8,913
|
|
||
TOTAL ASSETS
|
|
$
|
1,098,825
|
|
|
$
|
1,039,508
|
|
LIABILITIES, MEZZANINE EQUITY AND EQUITY
|
|
|
|
|
||||
LIABILITIES
|
|
|
|
|
||||
Mortgage notes payable, net (1)
|
|
$
|
486,315
|
|
|
$
|
453,739
|
|
Borrowings under Revolver, net
|
|
20,846
|
|
|
51,579
|
|
||
Borrowings under Term Loan, net
|
|
159,033
|
|
|
121,276
|
|
||
Deferred rent liability, net
|
|
20,679
|
|
|
19,322
|
|
||
Operating lease liabilities
|
|
5,808
|
|
|
5,847
|
|
||
Asset retirement obligation
|
|
3,163
|
|
|
3,137
|
|
||
Accounts payable and accrued expenses
|
|
7,684
|
|
|
5,573
|
|
||
Liabilities related to assets held for sale, net
|
|
—
|
|
|
21
|
|
||
Due to Adviser and Administrator (1)
|
|
3,152
|
|
|
2,904
|
|
||
Other liabilities
|
|
16,488
|
|
|
12,920
|
|
||
TOTAL LIABILITIES
|
|
$
|
723,168
|
|
|
$
|
676,318
|
|
Commitments and contingencies (2)
|
|
|
|
|
||||
MEZZANINE EQUITY
|
|
|
|
|
||||
Series D and E redeemable preferred stock, net, par value $0.001 per share; $25 per share liquidation preference; 12,760,000 shares authorized; and 6,269,555 shares issued and outstanding at March 31, 2020 and December 31, 2019 (3)
|
|
$
|
152,193
|
|
|
$
|
152,153
|
|
TOTAL MEZZANINE EQUITY
|
|
$
|
152,193
|
|
|
$
|
152,153
|
|
EQUITY
|
|
|
|
|
||||
Senior common stock, par value $0.001 per share; 950,000 shares authorized; and 783,114 and 806,435 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively (3)
|
|
$
|
1
|
|
|
$
|
1
|
|
Common stock, par value $0.001 per share, 60,290,000 and 86,290,000 shares authorized and 33,930,020 and 32,593,651 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively (3)
|
|
34
|
|
|
32
|
|
||
Additional paid in capital
|
|
599,232
|
|
|
571,205
|
|
||
Accumulated other comprehensive income
|
|
(4,654
|
)
|
|
(2,126
|
)
|
||
Distributions in excess of accumulated earnings
|
|
(374,259
|
)
|
|
(360,978
|
)
|
||
TOTAL STOCKHOLDERS' EQUITY
|
|
220,354
|
|
|
208,134
|
|
||
OP Units held by Non-controlling OP Unitholders (3)
|
|
$
|
3,110
|
|
|
$
|
2,903
|
|
TOTAL EQUITY
|
|
$
|
223,464
|
|
|
$
|
211,037
|
|
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY
|
|
$
|
1,098,825
|
|
|
$
|
1,039,508
|
|
(1)
|
Refer to Note 2 “Related-Party Transactions”
|
(2)
|
Refer to Note 7 “Commitments and Contingencies”
|
(3)
|
Refer to Note 8 “Equity and Mezzanine Equity”
|
|
|
For the three months ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
Operating revenues
|
|
|
|
|
||||
Lease revenue
|
|
$
|
33,619
|
|
|
$
|
28,137
|
|
Total operating revenues
|
|
33,619
|
|
|
28,137
|
|
||
Operating expenses
|
|
|
|
|
||||
Depreciation and amortization
|
|
14,096
|
|
|
13,010
|
|
||
Property operating expenses
|
|
6,213
|
|
|
3,068
|
|
||
Base management fee (1)
|
|
1,412
|
|
|
1,267
|
|
||
Incentive fee (1)
|
|
1,055
|
|
|
851
|
|
||
Administration fee (1)
|
|
438
|
|
|
413
|
|
||
General and administrative
|
|
878
|
|
|
657
|
|
||
Total operating expenses
|
|
24,092
|
|
|
19,266
|
|
||
Other (expense) income
|
|
|
|
|
||||
Interest expense
|
|
(7,252
|
)
|
|
(7,231
|
)
|
||
(Loss) gain on sale of real estate, net
|
|
(12
|
)
|
|
2,952
|
|
||
Other (loss) income
|
|
(5
|
)
|
|
81
|
|
||
Total other expense, net
|
|
(7,269
|
)
|
|
(4,198
|
)
|
||
Net income
|
|
2,258
|
|
|
4,673
|
|
||
Net loss (income) attributable (available) to OP Units held by Non-controlling OP Unitholders
|
|
9
|
|
|
(45
|
)
|
||
Net income attributable to the Company
|
|
$
|
2,267
|
|
|
$
|
4,628
|
|
Distributions attributable to Series A, B, D, and E preferred stock
|
|
(2,678
|
)
|
|
(2,612
|
)
|
||
Distributions attributable to senior common stock
|
|
(208
|
)
|
|
(224
|
)
|
||
Net (loss) income (attributable) available to common stockholders
|
|
$
|
(619
|
)
|
|
$
|
1,792
|
|
(Loss) earnings per weighted average share of common stock - basic & diluted
|
|
|
|
|
||||
(Loss) earnings (attributable) available to common shareholders
|
|
$
|
(0.02
|
)
|
|
$
|
0.06
|
|
Weighted average shares of common stock outstanding
|
|
|
|
|
||||
Basic and Diluted
|
|
33,634,946
|
|
|
29,516,870
|
|
||
Earnings per weighted average share of senior common stock
|
|
$
|
0.26
|
|
|
$
|
0.26
|
|
Weighted average shares of senior common stock outstanding - basic
|
|
793,429
|
|
|
864,303
|
|
||
Comprehensive income
|
|
|
|
|
||||
Change in unrealized loss related to interest rate hedging instruments, net
|
|
$
|
(2,528
|
)
|
|
$
|
(722
|
)
|
Other Comprehensive loss
|
|
(2,528
|
)
|
|
(722
|
)
|
||
Net income
|
|
$
|
2,258
|
|
|
$
|
4,673
|
|
Comprehensive (loss) income
|
|
$
|
(270
|
)
|
|
$
|
3,951
|
|
Comprehensive loss (income) attributable (available) to OP Units held by Non-controlling OP Unitholders
|
|
9
|
|
|
(45
|
)
|
||
Total comprehensive (loss) income (attributable) available to the Company
|
|
$
|
(261
|
)
|
|
$
|
3,906
|
|
(1)
|
Refer to Note 2 “Related-Party Transactions”
|
|
|
For the three months ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income
|
|
$
|
2,258
|
|
|
$
|
4,673
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
14,096
|
|
|
13,010
|
|
||
Loss (gain) on sale of real estate, net
|
|
12
|
|
|
(2,952
|
)
|
||
Amortization of deferred financing costs
|
|
374
|
|
|
456
|
|
||
Amortization of deferred rent asset and liability, net
|
|
(462
|
)
|
|
(293
|
)
|
||
Amortization of discount and premium on assumed debt, net
|
|
15
|
|
|
16
|
|
||
Asset retirement obligation expense
|
|
26
|
|
|
32
|
|
||
Operating changes in assets and liabilities
|
|
|
|
|
||||
Decrease (increase) in other assets
|
|
1,412
|
|
|
(743
|
)
|
||
Increase in deferred rent receivable
|
|
(214
|
)
|
|
(581
|
)
|
||
Increase (decrease) in accounts payable, accrued expenses, and amount due to Adviser and Administrator
|
|
2,391
|
|
|
(84
|
)
|
||
Decrease in right-of-use asset from operating leases
|
|
52
|
|
|
50
|
|
||
Decrease in operating lease liabilities
|
|
(39
|
)
|
|
(50
|
)
|
||
Increase (decrease) in other liabilities
|
|
1,124
|
|
|
(796
|
)
|
||
Leasing commissions paid
|
|
(715
|
)
|
|
(138
|
)
|
||
Net cash provided by operating activities
|
|
$
|
20,330
|
|
|
$
|
12,600
|
|
Cash flows from investing activities:
|
|
|
|
|
||||
Acquisition of real estate and related intangible assets
|
|
$
|
(71,463
|
)
|
|
$
|
(6,315
|
)
|
Improvements of existing real estate
|
|
(2,031
|
)
|
|
(829
|
)
|
||
Proceeds from sale of real estate
|
|
3,947
|
|
|
6,318
|
|
||
Receipts from lenders for funds held in escrow
|
|
21
|
|
|
991
|
|
||
Payments to lenders for funds held in escrow
|
|
(766
|
)
|
|
(482
|
)
|
||
Receipts from tenants for reserves
|
|
435
|
|
|
624
|
|
||
Payments to tenants from reserves
|
|
(429
|
)
|
|
(271
|
)
|
||
Deposits on future acquisitions
|
|
(1,000
|
)
|
|
(565
|
)
|
||
Deposits applied against acquisition of real estate investments
|
|
2,541
|
|
|
215
|
|
||
Net cash used in investing activities
|
|
$
|
(68,745
|
)
|
|
$
|
(314
|
)
|
Cash flows from financing activities:
|
|
|
|
|
||||
Proceeds from issuance of equity
|
|
$
|
28,296
|
|
|
$
|
14,292
|
|
Offering costs paid
|
|
(323
|
)
|
|
(179
|
)
|
||
Borrowings under mortgage notes payable
|
|
35,855
|
|
|
10,640
|
|
||
Payments for deferred financing costs
|
|
(382
|
)
|
|
(279
|
)
|
||
Principal repayments on mortgage notes payable
|
|
(3,162
|
)
|
|
(6,692
|
)
|
||
Borrowings from revolving credit facility
|
|
36,900
|
|
|
13,700
|
|
||
Repayments on revolving credit facility
|
|
(67,700
|
)
|
|
(31,500
|
)
|
||
Borrowings on term loan
|
|
37,700
|
|
|
—
|
|
||
Increase (decrease) in security deposits
|
|
12
|
|
|
(141
|
)
|
||
Distributions paid for common, senior common, preferred stock and Non-controlling OP Unitholders
|
|
(15,738
|
)
|
|
(14,192
|
)
|
Net cash provided by (used in) financing activities
|
|
$
|
51,458
|
|
|
$
|
(14,351
|
)
|
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
|
$
|
3,043
|
|
|
$
|
(2,065
|
)
|
Cash, cash equivalents, and restricted cash at beginning of period
|
|
$
|
11,488
|
|
|
$
|
9,082
|
|
Cash, cash equivalents, and restricted cash at end of period
|
|
$
|
14,531
|
|
|
$
|
7,017
|
|
SUPPLEMENTAL NON-CASH INFORMATION
|
|
|
|
|
||||
Tenant funded fixed asset improvements
|
|
$
|
353
|
|
|
$
|
1,015
|
|
Unrealized loss related to interest rate hedging instruments, net
|
|
$
|
(2,528
|
)
|
|
$
|
(722
|
)
|
Right-of-use asset from operating leases
|
|
$
|
—
|
|
|
$
|
5,998
|
|
Operating lease liabilities
|
|
$
|
—
|
|
|
$
|
(5,998
|
)
|
Capital improvements and leasing commissions included in accounts payable and accrued expenses
|
|
$
|
85
|
|
|
$
|
239
|
|
Non-controlling OP Units issued in connection with acquisition
|
|
$
|
502
|
|
|
$
|
—
|
|
|
|
For the three months ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
Cash and cash equivalents
|
|
$
|
9,853
|
|
|
$
|
4,314
|
|
Restricted cash
|
|
4,678
|
|
|
2,703
|
|
||
Total cash, cash equivalents, and restricted cash shown in the consolidated statement of cash flows
|
|
$
|
14,531
|
|
|
$
|
7,017
|
|
|
|
For the three months ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
Calculation of basic (loss) earnings per share of common stock:
|
|
|
|
|
||||
Net (loss) income (attributable) available to common stockholders
|
|
$
|
(619
|
)
|
|
$
|
1,792
|
|
Denominator for basic weighted average shares of common stock (1)
|
|
33,634,946
|
|
|
29,516,870
|
|
||
Basic (loss) earnings per share of common stock
|
|
$
|
(0.02
|
)
|
|
$
|
0.06
|
|
Calculation of diluted (loss) earnings per share of common stock:
|
|
|
|
|
||||
Net (loss) income (attributable) available to common stockholders
|
|
$
|
(619
|
)
|
|
$
|
1,792
|
|
Add: income impact of assumed conversion of senior common stock (2)
|
|
—
|
|
|
—
|
|
||
Net (loss) income (attributable) available to common stockholders plus assumed conversions (2)
|
|
$
|
(619
|
)
|
|
$
|
1,792
|
|
Denominator for basic weighted average shares of common stock (1)
|
|
33,634,946
|
|
|
29,516,870
|
|
||
Effect of convertible Senior Common Stock (2)
|
|
—
|
|
|
—
|
|
||
Denominator for diluted weighted average shares of common stock (2)
|
|
33,634,946
|
|
|
29,516,870
|
|
||
Diluted (loss) earnings per share of common stock
|
|
$
|
(0.02
|
)
|
|
$
|
0.06
|
|
(1)
|
The weighted average number of OP Units held by Non-controlling OP Unitholders was 501,233 and 742,937 for the three months ended March 31, 2020 and 2019, respectively.
|
(2)
|
We excluded convertible shares of Senior Common Stock of 654,942 and 721,872 from the calculation of diluted (loss) earnings per share for the three months ended March 31, 2020 and 2019, respectively, because they were anti-dilutive.
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Real estate:
|
|
|
|
|
||||
Land (1)
|
|
$
|
146,580
|
|
|
$
|
137,532
|
|
Building and improvements
|
|
907,577
|
|
|
851,245
|
|
||
Tenant improvements
|
|
69,487
|
|
|
68,201
|
|
||
Accumulated depreciation
|
|
(216,547
|
)
|
|
(207,523
|
)
|
||
Real estate, net
|
|
$
|
907,097
|
|
|
$
|
849,455
|
|
(1)
|
This amount includes $4,436 of land value subject to land lease agreements which we may purchase at our option for a nominal fee.
|
Three Months Ended
|
|
Aggregate Square Footage
|
|
Weighted Average Lease Term
|
|
Aggregate Purchase Price
|
|
Acquisition Expenses
|
|
Aggregate Annualized GAAP Rent
|
|
Aggregate Debt Issued or Assumed
|
|||||||||
March 31, 2020
|
(1)
|
890,038
|
|
|
14.8 Years
|
|
$
|
71,965
|
|
|
$
|
255
|
|
(3)
|
$
|
5,303
|
|
|
$
|
35,855
|
|
March 31, 2019
|
(2)
|
60,850
|
|
|
12.2 Years
|
|
6,318
|
|
|
130
|
|
(3)
|
516
|
|
|
—
|
|
(1)
|
On January 8, 2020, we acquired a 64,800 square foot property in Indianapolis, Indiana for $5.3 million. The property is leased to three tenants with a weighted average lease term of 7.2 years with annualized GAAP rent of $0.5 million. On January 27, 2020, we acquired a 320,838 square foot, three-property portfolio in Houston, Texas, Charlotte, North Carolina, and St. Charles, Missouri for $34.7 million. The portfolio has a weighted average lease term of 20.0 years, and an annualized GAAP rent of $2.6 million. We issued $18.3 million of mortgage debt with a fixed interest rate of 3.625% in connection with the acquisition. On March 9, 2020, we acquired a 504,400 square foot property in Chatsworth, Georgia for $32.0 million. We entered into an interest rate swap in connection with our $17.5 million of issued debt, resulting in a fixed interest rate of 2.8%. The annualized GAAP rent on the 10.5 Years lease is $2.2 million.
|
(2)
|
On February 8, 2019, we acquired a 26,050 square foot property in a suburb of Philadelphia, Pennsylvania, for $2.7 million. The annualized GAAP rent on the 15.1 year lease is $0.2 million. On February 28, 2019, we acquired a 34,800 square foot property in Indianapolis, Indiana for $3.6 million. The annualized GAAP rent on the 10.0 year lease is $0.3 million.
|
(3)
|
We accounted for these transactions under ASU 2017-01, “Clarifying the Definition of a Business.” As a result, we treated our acquisitions during the three months ended March 31, 2020 and 2019 as asset acquisitions rather than business combinations. As a result of this treatment, we capitalized $0.3 million and $0.1 million, respectively, of acquisition costs that would otherwise have been expensed under business combination treatment.
|
|
|
Three months ended March 31, 2020
|
|
Three months ended March 31, 2019
|
||||
Acquired assets and liabilities
|
|
Purchase price
|
|
Purchase price
|
||||
Land (1)
|
|
$
|
7,296
|
|
|
$
|
726
|
|
Building and improvements
|
|
54,000
|
|
|
4,541
|
|
||
Tenant Improvements
|
|
1,285
|
|
|
93
|
|
||
In-place Leases
|
|
4,442
|
|
|
432
|
|
||
Leasing Costs
|
|
4,261
|
|
|
307
|
|
||
Customer Relationships
|
|
2,223
|
|
|
196
|
|
||
Above Market Leases (2)
|
|
210
|
|
|
23
|
|
||
Below Market Leases (3)
|
|
(1,752
|
)
|
|
—
|
|
||
Total Purchase Price
|
|
$
|
71,965
|
|
|
$
|
6,318
|
|
(1)
|
This amount includes $2,711 of land value subject to a land lease agreement.
|
(2)
|
This amount includes $53 of loan receivable included in Other assets on the condensed consolidated balance sheets.
|
(3)
|
This amount includes $62 of prepaid rent included in Other liabilities on the condensed consolidated balance sheets.
|
Three Months Ended
|
|
Aggregate Square Footage
|
|
Weighted Average Remaining Lease Term
|
|
Aggregate Annualized GAAP Rent
|
|
Aggregate Tenant Improvement
|
|
Aggregate Leasing Commissions
|
|||||||
March 31, 2020
|
|
232,648
|
|
|
6.8 years
|
|
$
|
3,185
|
|
|
$
|
1,892
|
|
|
$
|
715
|
|
March 31, 2019
|
|
130,240
|
|
|
6.2 years
|
|
1,187
|
|
|
—
|
|
|
71
|
|
Year
|
Tenant Lease Payments
|
||
Nine Months Ending 2020
|
$
|
82,835
|
|
2021
|
107,411
|
|
|
2022
|
101,883
|
|
|
2023
|
94,182
|
|
|
2024
|
85,298
|
|
|
2025
|
76,287
|
|
|
Thereafter
|
293,679
|
|
|
|
$
|
841,575
|
|
Year
|
Tenant Lease Payments
|
||
2020
|
$
|
107,159
|
|
2021
|
101,794
|
|
|
2022
|
94,252
|
|
|
2023
|
86,460
|
|
|
2024
|
77,414
|
|
|
Thereafter
|
307,591
|
|
|
|
$
|
774,670
|
|
|
|
For the three months ended March 31,
|
||||||
|
|
(Dollars in Thousands)
|
||||||
Lease revenue reconciliation
|
|
2020
|
|
2019
|
||||
Fixed rental payments
|
|
$
|
29,479
|
|
|
$
|
27,162
|
|
Variable rental payments
|
|
4,140
|
|
|
975
|
|
||
|
|
$
|
33,619
|
|
|
$
|
28,137
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||
|
|
Lease Intangibles
|
|
Accumulated Amortization
|
|
Lease Intangibles
|
|
Accumulated Amortization
|
||||||||
In-place leases
|
|
$
|
97,348
|
|
|
$
|
(50,602
|
)
|
|
$
|
92,906
|
|
|
$
|
(48,468
|
)
|
Leasing costs
|
|
73,231
|
|
|
(35,240
|
)
|
|
68,256
|
|
|
(33,705
|
)
|
||||
Customer relationships
|
|
67,587
|
|
|
(30,288
|
)
|
|
65,363
|
|
|
(28,887
|
)
|
||||
|
|
$
|
238,166
|
|
|
$
|
(116,130
|
)
|
|
$
|
226,525
|
|
|
$
|
(111,060
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Deferred Rent Receivable/(Liability)
|
|
Accumulated (Amortization)/Accretion
|
|
Deferred Rent Receivable/(Liability)
|
|
Accumulated (Amortization)/Accretion
|
||||||||
Above market leases
|
|
$
|
14,818
|
|
|
$
|
(10,112
|
)
|
|
$
|
16,502
|
|
|
$
|
(10,005
|
)
|
Below market leases and deferred revenue
|
|
(36,365
|
)
|
|
15,686
|
|
|
(34,322
|
)
|
|
15,000
|
|
||||
|
|
$
|
(21,547
|
)
|
|
$
|
5,574
|
|
|
$
|
(17,820
|
)
|
|
$
|
4,995
|
|
Intangible Assets & Liabilities
|
|
2020
|
|
2019
|
In-place leases
|
|
16.3
|
|
13.0
|
Leasing costs
|
|
16.3
|
|
13.0
|
Customer relationships
|
|
19.5
|
|
17.9
|
Above market leases
|
|
18.0
|
|
10.0
|
Below market leases
|
|
14.2
|
|
0.0
|
All intangible assets & liabilities
|
|
16.9
|
|
14.5
|
Square Footage Sold
|
|
Sales Price
|
|
Sales Costs
|
|
Loss on Sale of Real Estate, net
|
|||||||
64,500
|
|
|
$
|
4,145
|
|
|
$
|
198
|
|
|
$
|
(12
|
)
|
|
|
For the three months ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
Operating revenue
|
|
$
|
—
|
|
|
$
|
295
|
|
Operating expense
|
|
33
|
|
|
70
|
|
||
Other expense, net
|
|
(12
|
)
|
(1)
|
(1
|
)
|
||
(Expense) income from real estate and related assets sold
|
|
$
|
(45
|
)
|
|
$
|
224
|
|
(1)
|
Includes a $0.01 million loss on sale of real estate, net on one property.
|
|
December 31, 2019
|
||
Assets Held for Sale
|
|
||
Real estate, at cost
|
$
|
7,411
|
|
Less: accumulated depreciation
|
3,421
|
|
|
Total real estate held for sale, net
|
3,990
|
|
|
Total Assets Held for Sale
|
$
|
3,990
|
|
Liabilities Held for Sale
|
|
||
Asset retirement obligation
|
$
|
21
|
|
Total Liabilities Held for Sale
|
$
|
21
|
|
|
|
Encumbered properties at
|
|
|
|
Carrying Value at
|
|
Stated Interest Rates at
|
|
Scheduled Maturity Dates at
|
|||||||
|
|
March 31, 2020
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2020
|
|
March 31, 2020
|
|||||
Mortgage and other secured loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fixed rate mortgage loans
|
|
62
|
|
|
|
|
$
|
445,786
|
|
|
$
|
412,771
|
|
|
(1)
|
|
(2)
|
Variable rate mortgage loans
|
|
12
|
|
|
|
|
44,830
|
|
|
45,151
|
|
|
(3)
|
|
(2)
|
||
Premiums and discounts, net
|
|
-
|
|
|
|
|
(224
|
)
|
|
(239
|
)
|
|
N/A
|
|
N/A
|
||
Deferred financing costs, mortgage loans, net
|
|
-
|
|
|
|
|
(4,077
|
)
|
|
(3,944
|
)
|
|
N/A
|
|
N/A
|
||
Total mortgage notes payable, net
|
|
74
|
|
|
|
|
$
|
486,315
|
|
|
$
|
453,739
|
|
|
(4)
|
|
|
Variable rate revolving credit facility
|
|
47
|
|
|
(6)
|
|
$
|
21,600
|
|
|
$
|
52,400
|
|
|
LIBOR + 1.65%
|
|
7/2/2023
|
Deferred financing costs, revolving credit facility
|
|
-
|
|
|
|
|
(754
|
)
|
|
(821
|
)
|
|
N/A
|
|
N/A
|
||
Total revolver, net
|
|
47
|
|
|
|
|
$
|
20,846
|
|
|
$
|
51,579
|
|
|
|
|
|
Variable rate term loan facility
|
|
-
|
|
|
(6)
|
|
$
|
160,000
|
|
|
$
|
122,300
|
|
|
LIBOR + 1.60%
|
|
7/2/2024
|
Deferred financing costs, term loan facility
|
|
-
|
|
|
|
|
(967
|
)
|
|
(1,024
|
)
|
|
N/A
|
|
N/A
|
||
Total term loan, net
|
|
N/A
|
|
|
|
|
$
|
159,033
|
|
|
$
|
121,276
|
|
|
|
|
|
Total mortgage notes payable and credit facility
|
|
121
|
|
|
|
|
$
|
666,194
|
|
|
$
|
626,594
|
|
|
(5)
|
|
|
(1)
|
Interest rates on our fixed rate mortgage notes payable vary from 2.80% to 6.63%.
|
(2)
|
We have 58 mortgage notes payable with maturity dates ranging from 7/1/2020 through 8/1/2037.
|
(3)
|
Interest rates on our variable rate mortgage notes payable vary from one month LIBOR + 2.00% to one month LIBOR + 2.75%. As of March 31, 2020, one month LIBOR was approximately 0.99%.
|
(4)
|
The weighted average interest rate on the mortgage notes outstanding as of March 31, 2020 was approximately 4.32%.
|
(5)
|
The weighted average interest rate on all debt outstanding as of March 31, 2020 was approximately 3.86%.
|
(6)
|
The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 47 unencumbered properties as of March 31, 2020.
|
Aggregate Fixed Rate Debt Issued
|
|
Weighted Average Interest Rate on Fixed Rate Debt
|
||
$
|
35,855
|
|
(1)
|
3.22%
|
(1)
|
We issued $18.3 million of fixed rate debt in connection with the three-property portfolio acquired on January 27, 2020 with a maturity date of February 1, 2030. The interest rate is fixed at 3.625%. On March 9, 2020, we issued $17.5 million of floating rate debt swapped to fixed rate debt of 2.8% in connection with the one property acquisition.
|
Year
|
|
Scheduled Principal Payments
|
|
||
Nine Months Ending December 31, 2020
|
|
$
|
28,514
|
|
|
2021
|
|
39,329
|
|
|
|
2022
|
|
107,733
|
|
|
|
2023
|
|
72,065
|
|
|
|
2024
|
|
49,172
|
|
|
|
2025
|
|
37,112
|
|
|
|
Thereafter
|
|
156,691
|
|
|
|
Total
|
|
$
|
490,616
|
|
(1)
|
(1)
|
This figure does not include $0.2 million of premiums and discounts, net, and $4.1 million of deferred financing costs, which are reflected in mortgage notes payable, net on the condensed consolidated balance sheets.
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||
Aggregate Cost
|
|
Aggregate Notional Amount
|
|
Aggregate Fair Value
|
|
Aggregate Notional Amount
|
|
Aggregate Fair Value
|
||||||||||
$
|
1,672
|
|
(1)
|
$
|
204,090
|
|
|
$
|
161
|
|
|
$
|
166,728
|
|
|
$
|
250
|
|
(1)
|
We have entered into various interest rate cap agreements on variable rate debt with LIBOR caps ranging from 2.00% to 3.25%.
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||||
Aggregate Notional Amount
|
|
Aggregate Fair Value Asset
|
|
Aggregate Fair Value Liability
|
|
Aggregate Notional Amount
|
|
Aggregate Fair Value Asset
|
|
Aggregate Fair Value Liability
|
||||||||||||
$
|
63,168
|
|
|
$
|
—
|
|
|
$
|
(3,538
|
)
|
|
$
|
45,777
|
|
|
$
|
—
|
|
|
$
|
(1,173
|
)
|
|
|
Amount of loss recognized in Comprehensive Income
|
||||||
|
|
Three Months Ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
Derivatives in cash flow hedging relationships
|
|
|
|
|
||||
Interest rate caps
|
|
$
|
(163
|
)
|
|
$
|
(333
|
)
|
Interest rate swaps
|
|
(2,365
|
)
|
|
(389
|
)
|
||
|
|
|
|
|
||||
Total
|
|
$
|
(2,528
|
)
|
|
$
|
(722
|
)
|
|
|
|
|
Asset (Liability) Derivatives Fair Value at
|
||||||
Derivatives Designated as Hedging Instruments
|
|
Balance Sheet Location
|
|
March 31, 2020
|
|
|
December 31, 2019
|
|
||
Interest rate caps
|
|
Other assets
|
|
$
|
161
|
|
|
$
|
250
|
|
Interest rate swaps
|
|
Other liabilities
|
|
(3,538
|
)
|
|
(1,173
|
)
|
||
Total derivative liabilities, net
|
|
|
|
$
|
(3,377
|
)
|
|
$
|
(923
|
)
|
Year
|
|
Future Lease Payments Due Under Operating Leases
|
||
Nine Months Ending December 31, 2020
|
|
$
|
350
|
|
2021
|
|
477
|
|
|
2022
|
|
489
|
|
|
2023
|
|
492
|
|
|
2024
|
|
493
|
|
|
2025
|
|
494
|
|
|
Thereafter
|
|
7,305
|
|
|
Total anticipated lease payments
|
|
$
|
10,100
|
|
Less: amount representing interest
|
|
(4,292
|
)
|
|
Present value of lease payments
|
|
$
|
5,808
|
|
|
Three Months Ended March 31,
|
|||||
Series A and B Preferred Stock
|
2020
|
2019
|
||||
Balance, beginning of period
|
$
|
—
|
|
$
|
2
|
|
Issuance of Series A and B preferred stock, net
|
—
|
|
—
|
|
||
Balance, end of period
|
$
|
—
|
|
$
|
2
|
|
Senior Common Stock
|
|
|
||||
Balance, beginning of period
|
$
|
1
|
|
$
|
1
|
|
Issuance of senior common stock, net
|
—
|
|
—
|
|
||
Balance, end of period
|
$
|
1
|
|
$
|
1
|
|
Common Stock
|
|
|
||||
Balance, beginning of period
|
$
|
32
|
|
$
|
29
|
|
Issuance of common stock, net
|
2
|
|
1
|
|
||
Balance, end of period
|
$
|
34
|
|
$
|
30
|
|
Additional Paid in Capital
|
|
|
||||
Balance, beginning of period
|
$
|
571,205
|
|
$
|
559,977
|
|
Issuance of common stock, net
|
27,930
|
|
14,111
|
|
||
Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership
|
97
|
|
(220
|
)
|
||
Balance, end of period
|
$
|
599,232
|
|
$
|
573,868
|
|
Accumulated Other Comprehensive Income
|
|
|
||||
Balance, beginning of period
|
$
|
(2,126
|
)
|
$
|
(148
|
)
|
Comprehensive income
|
(2,528
|
)
|
(722
|
)
|
||
Balance, end of period
|
$
|
(4,654
|
)
|
$
|
(870
|
)
|
Distributions in Excess of Accumulated Earnings
|
|
|
||||
Balance, beginning of period
|
$
|
(360,978
|
)
|
$
|
(310,117
|
)
|
Distributions declared to common, senior common, and preferred stockholders
|
(15,548
|
)
|
(13,913
|
)
|
||
Net income attributable to the Company
|
2,267
|
|
4,628
|
|
||
Balance, end of period
|
$
|
(374,259
|
)
|
$
|
(319,402
|
)
|
Total Stockholders' Equity
|
|
|
||||
Balance, beginning of period
|
$
|
208,134
|
|
$
|
249,744
|
|
Issuance of common stock, net
|
27,932
|
|
14,112
|
|
||
Distributions declared to common, senior common, and preferred stockholders
|
(15,548
|
)
|
(13,913
|
)
|
||
Comprehensive income
|
(2,528
|
)
|
(722
|
)
|
||
Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership
|
97
|
|
(220
|
)
|
||
Net income attributable to the Company
|
2,267
|
|
4,628
|
|
||
Balance, end of period
|
$
|
220,354
|
|
$
|
253,629
|
|
Non-Controlling Interest
|
|
|
||||
Balance, beginning of period
|
$
|
2,903
|
|
$
|
4,675
|
|
Distributions declared to Non-controlling OP Unit holders
|
(189
|
)
|
(278
|
)
|
||
Issuance of Non-controlling OP Units as consideration in real estate acquisitions, net
|
502
|
|
—
|
|
||
Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership
|
(97
|
)
|
220
|
|
||
Net (loss) income (attributable) available to OP units held by Non-controlling OP Unitholders
|
(9
|
)
|
45
|
|
||
Balance, end of period
|
$
|
3,110
|
|
$
|
4,662
|
|
Total Equity
|
$
|
223,464
|
|
$
|
258,291
|
|
|
|
For the three months ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
Common Stock and Non-controlling OP Units
|
|
$
|
0.37545
|
|
|
$
|
0.37500
|
|
Senior Common Stock
|
|
0.2625
|
|
|
0.2625
|
|
||
Series A Preferred Stock
|
|
—
|
|
(1)
|
0.4843749
|
|
||
Series B Preferred Stock
|
|
—
|
|
(1)
|
0.46875
|
|
||
Series D Preferred Stock
|
|
0.4374999
|
|
|
0.4374999
|
|
||
Series E Preferred Stock
|
|
0.414063
|
|
|
—
|
|
(1)
|
We fully redeemed all outstanding shares of both Series A Preferred Stock and Series B Preferred Stock on October 28, 2019.
|
Record Date
|
|
Payment Date
|
|
Common Stock and Non-controlling OP Unit Distributions per Share
|
|
Series D Preferred Distributions per Share
|
|
Series E Preferred Distributions per Share
|
||||||
April 24, 2020
|
|
April 30, 2020
|
|
$
|
0.12515
|
|
|
$
|
0.1458333
|
|
|
$
|
0.138021
|
|
May 19, 2020
|
|
May 29, 2020
|
|
0.12515
|
|
|
0.1458333
|
|
|
0.138021
|
|
|||
June 19, 2020
|
|
June 30, 2020
|
|
0.12515
|
|
|
0.1458333
|
|
|
0.138021
|
|
|||
|
|
|
|
$
|
0.37545
|
|
|
$
|
0.4374999
|
|
|
$
|
0.414063
|
|
Senior Common Stock Distributions
|
||||||
Payable to the Holders of Record During the Month of:
|
|
Payment Date
|
|
Distribution per Share
|
||
April
|
|
May 6, 2020
|
|
$
|
0.0875
|
|
May
|
|
June 5, 2020
|
|
0.0875
|
|
|
June
|
|
July 6, 2020
|
|
0.0875
|
|
|
|
|
|
|
$
|
0.2625
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
we owned 122 properties totaling 15.1 million square feet in 28 states;
|
•
|
our occupancy rate was 96.6%;
|
•
|
the weighted average remaining term of our mortgage debt was 5.0 years and the weighted average interest rate was 4.36%; and
|
•
|
the average remaining lease term of the portfolio was 7.5 years.
|
Square Footage Sold
|
|
Sales Price
|
|
Sales Costs
|
|
Loss on Sale of Real Estate, net
|
|||||||
64,500
|
|
|
$
|
4,145
|
|
|
$
|
198
|
|
|
$
|
(12
|
)
|
Aggregate Square Footage
|
|
Weighted Average Lease Term
|
|
Aggregate Purchase Price
|
|
Acquisition Costs
|
|
Aggregate Annualized GAAP Rent
|
|
Aggregate Mortgage Debt Issued or Assumed
|
|||||||||
890,038
|
|
|
14.8 years
|
|
$
|
71,965
|
|
|
$
|
255
|
|
(1)
|
$
|
5,303
|
|
|
$
|
35,855
|
|
(1)
|
We accounted for these transactions under ASU 2017-01. As a result, we treated these acquisitions as asset acquisitions rather than business combinations. As a result of this treatment, we capitalized $0.3 million of acquisition costs that would otherwise have been expensed under business combination treatment.
|
Aggregate Square Footage
|
|
Weighted Average Remaining Lease Term
|
|
Aggregate Annualized GAAP Rent
|
|
Aggregate Tenant Improvement
|
|
Aggregate Leasing Commissions
|
||||||
232,648
|
|
|
6.8 years
|
|
$
|
3,185
|
|
|
1,892
|
|
|
$
|
715
|
|
Aggregate Fixed Rate Debt Issued
|
|
Weighted Average Interest Rate on Fixed Rate Debt
|
|||
$
|
35,855
|
|
(1)
|
3.22
|
%
|
(1)
|
We issued $18.3 million of fixed rate debt in connection with the three-property portfolio acquired on January 27, 2020 with a maturity date of February 1, 2030. The interest rate is fixed at 3.625%. On March 9, 2020, we issued $17.5 million of floating rate debt swapped to fixed rate debt of 2.8% in connection with the one property acquisition.
|
|
|
For the three months ended March 31,
|
||||||||||||
|
|
2020
|
|
2019
|
||||||||||
Industry Classification
|
|
Lease Revenue
|
|
Percentage of Lease Revenue
|
|
Lease Revenue
|
|
Percentage of Lease Revenue
|
||||||
Telecommunications
|
|
$
|
5,600
|
|
|
16.6
|
%
|
|
$
|
4,769
|
|
|
16.9
|
%
|
Diversified/Conglomerate Services
|
|
4,137
|
|
|
12.3
|
|
|
3,653
|
|
|
13.0
|
|
||
Healthcare
|
|
4,107
|
|
|
12.2
|
|
|
3,256
|
|
|
11.6
|
|
||
Automobile
|
|
3,847
|
|
|
11.4
|
|
|
3,779
|
|
|
13.4
|
|
||
Banking
|
|
2,487
|
|
|
7.4
|
|
|
2,213
|
|
|
7.9
|
|
||
Buildings and Real Estate
|
|
2,109
|
|
|
6.3
|
|
|
1,127
|
|
|
4.0
|
|
||
Information Technology
|
|
1,715
|
|
|
5.1
|
|
|
1,554
|
|
|
5.5
|
|
||
Personal, Food & Miscellaneous Services
|
|
1,500
|
|
|
4.5
|
|
|
1,499
|
|
|
5.3
|
|
||
Electronics
|
|
1,335
|
|
|
4.0
|
|
|
1,124
|
|
|
4.0
|
|
||
Machinery
|
|
1,296
|
|
|
3.9
|
|
|
562
|
|
|
2.0
|
|
||
Diversified/Conglomerate Manufacturing
|
|
1,183
|
|
|
3.5
|
|
|
1,265
|
|
|
4.5
|
|
||
Beverage, Food & Tobacco
|
|
976
|
|
|
2.9
|
|
|
376
|
|
|
1.3
|
|
||
Chemicals, Plastics & Rubber
|
|
948
|
|
|
2.8
|
|
|
745
|
|
|
2.6
|
|
||
Personal & Non-Durable Consumer Products
|
|
612
|
|
|
1.8
|
|
|
605
|
|
|
2.2
|
|
||
Childcare
|
|
557
|
|
|
1.7
|
|
|
557
|
|
|
2.0
|
|
||
Containers, Packaging & Glass
|
|
533
|
|
|
1.6
|
|
|
456
|
|
|
1.6
|
|
||
Printing & Publishing
|
|
346
|
|
|
1.0
|
|
|
300
|
|
|
1.1
|
|
||
Education
|
|
210
|
|
|
0.6
|
|
|
165
|
|
|
0.6
|
|
||
Home & Office Furnishings
|
|
121
|
|
|
0.4
|
|
|
132
|
|
|
0.5
|
|
||
Total
|
|
$
|
33,619
|
|
|
100.0
|
%
|
|
$
|
28,137
|
|
|
100.0
|
%
|
State
|
|
Lease Revenue for the three months ended March 31, 2020
|
|
Percentage of Lease Revenue
|
|
Number of Leases for the three months ended March 31, 2020
|
|
Lease Revenue for the three months ended March 31, 2019
|
|
Percentage of Lease Revenue
|
|
Number of Leases for the three months ended March 31, 2019
|
||||||||
Texas
|
|
$
|
5,054
|
|
|
15.0
|
%
|
|
16
|
|
|
$
|
3,949
|
|
|
14.0
|
%
|
|
12
|
|
Florida
|
|
4,230
|
|
|
12.6
|
|
|
11
|
|
|
3,763
|
|
|
13.4
|
|
|
9
|
|
||
Ohio
|
|
3,651
|
|
|
10.9
|
|
|
15
|
|
|
2,657
|
|
|
9.4
|
|
|
16
|
|
||
Pennsylvania
|
|
3,398
|
|
|
10.1
|
|
|
9
|
|
|
3,393
|
|
|
12.1
|
|
|
9
|
|
||
Georgia
|
|
2,248
|
|
|
6.7
|
|
|
9
|
|
|
1,210
|
|
|
4.3
|
|
|
6
|
|
||
Utah
|
|
1,960
|
|
|
5.8
|
|
|
4
|
|
|
1,861
|
|
|
6.6
|
|
|
3
|
|
||
Minnesota
|
|
1,628
|
|
|
4.8
|
|
|
5
|
|
|
934
|
|
|
3.3
|
|
|
6
|
|
||
Michigan
|
|
1,573
|
|
|
4.7
|
|
|
6
|
|
|
1,506
|
|
|
5.4
|
|
|
6
|
|
||
North Carolina
|
|
1,449
|
|
|
4.3
|
|
|
8
|
|
|
1,556
|
|
|
5.5
|
|
|
8
|
|
||
South Carolina
|
|
1,229
|
|
|
3.7
|
|
|
2
|
|
|
1,159
|
|
|
4.1
|
|
|
2
|
|
||
All Other States
|
|
7,199
|
|
|
21.4
|
|
|
43
|
|
|
6,149
|
|
|
21.9
|
|
|
32
|
|
||
Total
|
|
$
|
33,619
|
|
|
100.0
|
%
|
|
128
|
|
|
$
|
28,137
|
|
|
100.0
|
%
|
|
109
|
|
|
|
For the three months ended March 31,
|
|||||||||||||
|
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
|||||||
Operating revenues
|
|
|
|
|
|
|
|
|
|||||||
Lease revenue
|
|
$
|
33,619
|
|
|
$
|
28,137
|
|
|
$
|
5,482
|
|
|
19.5
|
%
|
Total operating revenues
|
|
33,619
|
|
|
28,137
|
|
|
5,482
|
|
|
19.5
|
%
|
|||
Operating expenses
|
|
|
|
|
|
|
|
|
|||||||
Depreciation and amortization
|
|
14,096
|
|
|
13,010
|
|
|
1,086
|
|
|
8.3
|
%
|
|||
Property operating expenses
|
|
6,213
|
|
|
3,068
|
|
|
3,145
|
|
|
102.5
|
%
|
|||
Base management fee
|
|
1,412
|
|
|
1,267
|
|
|
145
|
|
|
11.4
|
%
|
|||
Incentive fee
|
|
1,055
|
|
|
851
|
|
|
204
|
|
|
24.0
|
%
|
|||
Administration fee
|
|
438
|
|
|
413
|
|
|
25
|
|
|
6.1
|
%
|
|||
General and administrative
|
|
878
|
|
|
657
|
|
|
221
|
|
|
33.6
|
%
|
|||
Total operating expenses
|
|
24,092
|
|
|
19,266
|
|
|
4,826
|
|
|
25.0
|
%
|
|||
Other (expense) income
|
|
|
|
|
|
|
|
|
|||||||
Interest expense
|
|
(7,252
|
)
|
|
(7,231
|
)
|
|
(21
|
)
|
|
0.3
|
%
|
|||
(Loss) gain on sale of real estate, net
|
|
(12
|
)
|
|
2,952
|
|
|
(2,964
|
)
|
|
(100.4
|
)%
|
|||
Other (expense) income, net
|
|
(5
|
)
|
|
81
|
|
|
(86
|
)
|
|
(106.2
|
)%
|
|||
Total other expense, net
|
|
(7,269
|
)
|
|
(4,198
|
)
|
|
(3,071
|
)
|
|
73.2
|
%
|
|||
Net income
|
|
2,258
|
|
|
4,673
|
|
|
(2,415
|
)
|
|
(51.7
|
)%
|
|||
Distributions attributable to Series A, B, D and E preferred stock
|
|
(2,678
|
)
|
|
(2,612
|
)
|
|
(66
|
)
|
|
2.5
|
%
|
|||
Distributions attributable to senior common stock
|
|
(208
|
)
|
|
(224
|
)
|
|
16
|
|
|
(7.1
|
)%
|
|||
Net (loss) income (attributable) available to common stockholders and Non-controlling OP Unitholders
|
|
$
|
(628
|
)
|
|
$
|
1,837
|
|
|
$
|
(2,465
|
)
|
|
(134.2
|
)%
|
Net (loss) income (attributable) available to common stockholders and Non-controlling OP Unitholders per weighted average share and unit - basic & diluted
|
|
$
|
(0.02
|
)
|
|
$
|
0.06
|
|
|
$
|
(0.08
|
)
|
|
(133.3
|
)%
|
FFO available to common stockholders and Non-controlling OP Unitholders - basic (1)
|
|
$
|
13,480
|
|
|
$
|
11,895
|
|
|
$
|
1,585
|
|
|
13.3
|
%
|
FFO available to common stockholders and Non-controlling OP Unitholders - diluted (1)
|
|
$
|
13,688
|
|
|
$
|
12,119
|
|
|
$
|
1,569
|
|
|
12.9
|
%
|
FFO per weighted average share of common stock and Non-controlling OP Units - basic (1)
|
|
$
|
0.39
|
|
|
$
|
0.39
|
|
|
$
|
—
|
|
|
—
|
%
|
FFO per weighted average share of common stock and Non-controlling OP Units - diluted (1)
|
|
$
|
0.39
|
|
|
$
|
0.39
|
|
|
$
|
—
|
|
|
—
|
%
|
(1)
|
Refer to the “Funds from Operations” section below within the Management’s Discussion and Analysis section for the definition of FFO.
|
|
|
For the three months ended March 31,
|
|||||||||||||
|
|
(Dollars in Thousands)
|
|||||||||||||
Lease Revenues
|
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
|||||||
Same Store Properties
|
|
$
|
27,696
|
|
|
$
|
25,214
|
|
|
$
|
2,482
|
|
|
9.8
|
%
|
Acquired & Disposed Properties
|
|
3,346
|
|
|
598
|
|
|
2,748
|
|
|
459.5
|
%
|
|||
Properties with Vacancy
|
|
2,577
|
|
|
2,325
|
|
|
252
|
|
|
10.8
|
%
|
|||
|
|
$
|
33,619
|
|
|
$
|
28,137
|
|
|
$
|
5,482
|
|
|
19.5
|
%
|
|
|
For the three months ended March 31,
|
|||||||||||||
|
|
(Dollars in Thousands)
|
|||||||||||||
Lease revenue reconciliation
|
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
|||||||
Fixed rental payments
|
|
$
|
29,479
|
|
|
$
|
27,162
|
|
|
$
|
2,317
|
|
|
8.5
|
%
|
Variable rental payments
|
|
4,140
|
|
|
975
|
|
|
3,165
|
|
|
324.6
|
%
|
|||
|
|
$
|
33,619
|
|
|
$
|
28,137
|
|
|
$
|
5,482
|
|
|
19.5
|
%
|
|
|
For the three months ended March 31,
|
|||||||||||||
|
|
(Dollars in Thousands)
|
|||||||||||||
Property Operating Expenses
|
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
|||||||
Same Store Properties
|
|
$
|
4,974
|
|
|
$
|
2,709
|
|
|
$
|
2,265
|
|
|
83.6
|
%
|
Acquired & Disposed Properties
|
|
190
|
|
|
47
|
|
|
143
|
|
|
304.3
|
%
|
|||
Properties with Vacancy
|
|
1,049
|
|
|
312
|
|
|
737
|
|
|
236.2
|
%
|
|||
|
|
$
|
6,213
|
|
|
$
|
3,068
|
|
|
$
|
3,145
|
|
|
102.5
|
%
|
|
|
Payments Due by Period
|
||||||||||||||||||
Contractual Obligations
|
|
Total
|
|
Less than 1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More than 5 Years
|
||||||||||
Debt Obligations (1)
|
|
$
|
672,216
|
|
|
$
|
41,783
|
|
|
$
|
153,474
|
|
|
$
|
300,073
|
|
|
$
|
176,886
|
|
Interest on Debt Obligations (2)
|
|
114,586
|
|
|
25,047
|
|
|
44,794
|
|
|
25,897
|
|
|
18,848
|
|
|||||
Operating Lease Obligations (3)
|
|
10,100
|
|
|
467
|
|
|
972
|
|
|
986
|
|
|
7,675
|
|
|||||
Purchase Obligations (4)
|
|
2,474
|
|
|
2,474
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
$
|
799,376
|
|
|
$
|
69,771
|
|
|
$
|
199,240
|
|
|
$
|
326,956
|
|
|
$
|
203,409
|
|
(1)
|
Debt obligations represent borrowings under our Revolver, which represents $21.6 million of the debt obligation due in 2023, our Term Loan, which represents $160.0 million of the debt obligation due in 2024, and mortgage notes payable that were outstanding as of March 31, 2020. This figure does not include $0.2 million of premiums and discounts, net and $5.8 million of deferred financing costs, net, which are reflected in mortgage notes payable, net, borrowings under Revolver, net and borrowings under Term Loan, net on the condensed consolidated balance sheets.
|
(2)
|
Interest on debt obligations includes estimated interest on borrowings under our Revolver and Term Loan and mortgage notes payable. The balance and interest rate on our Revolver and Term Loan is variable; thus, the interest payment obligation calculated for purposes of this table was based upon rates and balances as of March 31, 2020.
|
(3)
|
Operating lease obligations represent the ground lease payments due on four of our properties.
|
(4)
|
Purchase obligations consist of tenant and capital improvements at four of our properties.
|
|
|
For the three months ended March 31,
|
||||||
|
|
(Dollars in Thousands, Except for Per Share Amounts)
|
||||||
|
|
2020
|
|
2019
|
||||
Calculation of basic FFO per share of common stock and Non-controlling OP Unit
|
|
|
|
|
||||
Net income
|
|
$
|
2,258
|
|
|
$
|
4,673
|
|
Less: Distributions attributable to preferred and senior common stock
|
|
(2,886
|
)
|
|
(2,836
|
)
|
||
Net (loss) income (attributable) available to common stockholders and Non-controlling OP Unitholders
|
|
$
|
(628
|
)
|
|
$
|
1,837
|
|
Adjustments:
|
|
|
|
|
||||
Add: Real estate depreciation and amortization
|
|
$
|
14,096
|
|
|
$
|
13,010
|
|
Add: Loss on sale of real estate, net
|
|
12
|
|
|
—
|
|
||
Less: Gain on sale of real estate, net
|
|
—
|
|
|
(2,952
|
)
|
||
FFO available to common stockholders and Non-controlling OP Unitholders - basic
|
|
$
|
13,480
|
|
|
$
|
11,895
|
|
Weighted average common shares outstanding - basic
|
|
33,634,946
|
|
|
29,516,870
|
|
||
Weighted average Non-controlling OP Units outstanding
|
|
501,233
|
|
|
742,937
|
|
||
Total common shares and Non-controlling OP Units
|
|
34,136,179
|
|
|
30,259,807
|
|
||
Basic FFO per weighted average share of common stock and Non-controlling OP Unit
|
|
$
|
0.39
|
|
|
$
|
0.39
|
|
Calculation of diluted FFO per share of common stock and Non-controlling OP Unit
|
|
|
|
|
||||
Net income
|
|
$
|
2,258
|
|
|
$
|
4,673
|
|
Less: Distributions attributable to preferred and senior common stock
|
|
(2,886
|
)
|
|
(2,836
|
)
|
||
Net (loss) income (attributable) available to common stockholders and Non-controlling OP Unitholders
|
|
$
|
(628
|
)
|
|
$
|
1,837
|
|
Adjustments:
|
|
|
|
|
||||
Add: Real estate depreciation and amortization
|
|
$
|
14,096
|
|
|
$
|
13,010
|
|
Add: Income impact of assumed conversion of senior common stock
|
|
208
|
|
|
224
|
|
||
Add: Loss on sale of real estate, net
|
|
12
|
|
|
—
|
|
||
Less: Gain on sale of real estate, net
|
|
—
|
|
|
(2,952
|
)
|
||
FFO available to common stockholders and Non-controlling OP Unitholders plus assumed conversions
|
|
$
|
13,688
|
|
|
$
|
12,119
|
|
Weighted average common shares outstanding - basic
|
|
33,634,946
|
|
|
29,516,870
|
|
||
Weighted average Non-controlling OP Units outstanding
|
|
501,233
|
|
|
742,937
|
|
||
Effect of convertible senior common stock
|
|
654,942
|
|
|
721,872
|
|
||
Weighted average common shares and Non-controlling OP Units outstanding - diluted
|
|
34,791,121
|
|
|
30,981,679
|
|
||
Diluted FFO per weighted average share of common stock and Non-controlling OP Unit (1)
|
|
$
|
0.39
|
|
|
$
|
0.39
|
|
Distributions declared per share of common stock and Non-controlling OP Unit
|
|
$
|
0.37545
|
|
|
$
|
0.37500
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Interest Rate Change
|
|
Increase to Interest
Expense
|
|
Net decrease to
Net Income
|
||
1% Increase to LIBOR
|
|
2,296
|
|
|
(2,296
|
)
|
2% Increase to LIBOR
|
|
3,829
|
|
|
(3,829
|
)
|
3% Increase to LIBOR
|
|
4,087
|
|
|
(4,087
|
)
|
Item 4.
|
Controls and Procedures.
|
Item 1.
|
Legal Proceedings.
|
Item 1A.
|
Risk Factors.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
Exhibit
Number
|
|
Exhibit Description
|
|
|
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
3.3
|
|
|
|
|
|
3.4
|
|
|
|
|
|
3.5
|
|
|
|
|
|
3.6
|
|
|
|
|
|
3.7
|
|
|
|
|
|
3.8
|
|
|
|
|
|
3.9
|
|
|
|
|
|
4.1
|
|
|
|
|
|
4.2
|
|
|
|
|
|
4.3
|
|
|
|
|
|
4.4
|
|
|
|
|
|
4.5
|
|
|
|
|
|
4.6
|
|
|
|
|
|
10.1
|
|
|
|
|
|
10.2
|
|
|
|
|
|
31.1*
|
|
|
|
|
|
31.2*
|
|
|
|
|
|
32.1**
|
|
|
|
|
32.2**
|
|
|
|
|
|
101.INS***
|
|
XBRL Instance Document
|
|
|
|
101.SCH***
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL***
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.LAB***
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE***
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
101.DEF***
|
|
XBRL Definition Linkbase
|
*
|
Filed herewith
|
**
|
Furnished herewith
|
***
|
Attached as Exhibit 101 to this Quarterly Report on Form 10-Q are the following materials, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019, (ii) the Condensed Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2020 and 2019, (iii) the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2020 and 2019 and (iv) the Notes to Condensed Consolidated Financial Statements.
|
|
|
|
Gladstone Commercial Corporation
|
||
|
|
|
|
||
Date:
|
April 28, 2020
|
|
By:
|
|
/s/ Mike Sodo
|
|
|
|
|
|
Mike Sodo
|
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
||
Date:
|
April 28, 2020
|
|
By:
|
|
/s/ David Gladstone
|
|
|
|
|
|
David Gladstone
|
|
|
|
|
|
Chief Executive Officer and
Chairman of the Board of Directors
|
1 Year Gladstone Commercial Chart |
1 Month Gladstone Commercial Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions