Loading...
•
Jun 30, 2023
Gladstone Commercial Q2 2023 Earnings Report
Reported financial results reflecting consistent performance and stabilized revenues.
Key Takeaways
Gladstone Commercial Corporation reported a net loss of $4.588 million for the second quarter of 2023, with total operating revenue of $38.658 million. Core FFO available to common shareholders was $16.6 million, or $0.41 per share.
Collected 100% of cash rents due during April, May, and June.
Purchased one fully-occupied property for $5.3 million at a cap rate of 9.71%.
Sold two non-core properties for $4.7 million as part of the capital recycling program.
Renewed 502,362 square feet with remaining lease terms ranging from 5.4 to 14.0 years at six properties.
Forward Guidance
Gladstone Commercial anticipates facing challenges due to the lingering effects of the pandemic and significant inflation with a corresponding increase in interest rates. They feel strongly about the depth of their tenant credit underwriting, which will allow them to acquire accretive assets in this business environment.
Positive Outlook
- Expect to continue to have access to the debt and equity markets, as necessary, for added liquidity.
- Same store rents, which have increased by 2% annually in recent years, should continue to rise as we grow.
- Collected 100% of the second quarter's cash rents and 100% of July cash rents.
- Successfully exited three assets thus far in 2023.
- Believe our same store rents, which have increased by 2% annually in recent years, should continue to rise as we grow
Challenges Ahead
- Expect to face challenges due to the lingering effects of the pandemic.
- Expect to face challenges due to significant inflation.
- Expect to face challenges due to a corresponding increase in interest rates.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...