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Sep 30, 2022
Gladstone Commercial Q3 2022 Earnings Report
Reported financial results, showing increased total operating revenue and net income compared to the previous quarter, alongside strategic property acquisitions and sales.
Key Takeaways
Gladstone Commercial Corporation reported an increase in total operating revenue and net income for the third quarter of 2022. The company also strategically acquired and sold properties, amended its credit facility, and maintained consistent rent collection.
Total operating revenue increased by 9.4% compared to the previous quarter.
Net income rose by 58.8% compared to the previous quarter.
Core FFO available to common shareholders increased by 14.9% compared to the previous quarter, equaling $0.44 per share.
The company acquired four fully-occupied industrial properties for $46.1 million and sold three non-core office properties for $28.0 million.
Forward Guidance
Gladstone Commercial anticipates facing challenges due to the pandemic, inflation, and geopolitical issues but remains confident in its tenant credit underwriting and ability to manage its portfolio and opportunistically sell non-core assets and redeploy the proceeds into stronger target growth markets with a focus on industrial investment opportunities.
Positive Outlook
- Collected 100% of cash rents for the first three quarters of 2022 and October.
- Expects tenants to successfully navigate the current economic climate.
- Renewed 460,028 square feet with seven tenants and leased 91,412 square feet of vacant space with three tenants during 2022.
- Amended credit facility to add a new term loan component and increased revolver, enhancing financial flexibility.
- Anticipates same store rents to continue rising, focusing on industrial properties in target markets.
Challenges Ahead
- Expects to face challenges due to the continuing COVID-19 pandemic.
- Expects 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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