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Jun 30, 2024
Gladstone Commercial Q2 2024 Earnings Report
Reported financial results, showing an increase in total operating revenue and core FFO, while experiencing a net loss attributable to common stockholders.
Key Takeaways
Gladstone Commercial Corporation reported its financial results for the second quarter ended June 30, 2024. The company saw an increase in total operating revenue and core FFO. However, the company experienced a net loss attributable to common stockholders.
Collected 100% of cash rents due during April, May, and June.
Purchased a five-property portfolio for $12.0 million at a cap rate of 12.3%.
Sold one non-core property for $2.6 million.
Core FFO available to common shareholders and Non-controlling OP Unitholders was $14.6 million, a 5.0% increase compared to the previous quarter, equaling $0.36 per share.
Forward Guidance
Gladstone Commercial anticipates challenges due to the lingering effects of the pandemic, significant inflation with a corresponding increase in interest rates, and the geo-political and economic issues arising from international wars.
Positive Outlook
- Tenants will successfully navigate the current economic climate.
- Tenants will be able to continue operating successfully when economic normalcy returns fully.
- Same store rents, which have increased by 2% annually in recent years, should continue to rise as we grow.
- Focus on investing in target markets, with an emphasis on industrial properties and actively managing our portfolio.
- Have successfully exited four non-core assets thus far in 2024, and anticipate selling additional non-core assets over the next one to two years that we believe will result in capital gains.
Challenges Ahead
- Expect to face challenges due to the lingering effects of the pandemic.
- Expect to face challenges due to significant inflation with a corresponding increase in interest rates.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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