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Jun 30, 2020
Gladstone Commercial Q2 2020 Earnings Report
Financial results for the second quarter were reported.
Key Takeaways
Gladstone Commercial Corporation reported a decrease in net income but an increase in core FFO for the second quarter of 2020. The company collected 98% of cash rents and continued its capital recycling program.
Collected 98% of cash rents owed during the second quarter, with the remaining 2% as rent deferrals.
Core FFO increased by 3.3% compared to the previous quarter, driven by lower interest expense and LIBOR rates.
Net loss attributable to common stockholders was $1.9 million, or $(0.06) per share.
Continued capital recycling program with the sale of Maple Heights, Ohio property for $11.4 million.
Forward Guidance
Gladstone Commercial anticipates challenges due to the COVID-19 pandemic, but expects tenants to navigate the economic climate successfully. The company expects to continue having access to debt and equity markets and will focus on investing in target markets with an emphasis on industrial properties.
Positive Outlook
- Same store rents should be stable and rising.
- Continued focus on investing in target markets with an emphasis on industrial properties.
- Expect to continue to have access to the debt and equity markets, as necessary, for added liquidity.
- Collected over 98% of second quarter cash rents and 99% of July cash rents.
- 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.
Challenges Ahead
- Expect to face challenges due to the COVID-19 pandemic.
- Decrease in rental income from properties that went vacant after Q1 2020.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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