Attached files
| file | filename |
|---|---|
| 8-K - GLADSTONE COMMERCIAL CORP | v213953_8k.htm |
Gladstone Commercial Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2010
- Reported funds from operations ("FFO") for the full year 2010 of approximately $14.1 million, an increase of 4.1% over the prior year.
- Acquired a property in Orange City, Iowa for approximately $12.3 million.
- Issued common stock for net proceeds of approximately $3.4 million.
- Entered into a $50 million senior secured revolving line of credit agreement with Capital One N.A. and Branch Banking and Trust Company as lenders.
MCLEAN, Va., March 8, 2011 /PRNewswire/ -- Gladstone Commercial Corporation (Nasdaq: GOOD) (the "Company") today reported financial results for the quarter and year ended December 31, 2010. A description of FFO, a relative non-GAAP (generally accepted accounting principles in the United States) financial measure, is located at the end of this earnings release. All per share references are to fully-diluted weighted average shares of common stock, unless otherwise noted.
(Logo: https://photos.prnewswire.com/prnh/20101005/GLADSTONECOMMERCIAL)
FFO for the three months ended December 31, 2010 was approximately $3.0 million, or $0.35 per share, which is a 10.1% decrease compared to the same period one year ago. FFO for the year ended December 31, 2010 was approximately $14.1 million, or $1.64 per share, which is a 4.1% increase over the previous year FFO. The decrease in FFO for the quarter was a direct result of approximately $386,000 of due diligence fees incurred related to the property acquisition during the quarter, which the Company was required to expense under new accounting guidance rather than capitalize as it had in years past. In addition, there was a decrease in rental revenues as a result of the mid-year expiration of leases on two properties, coupled with the lost interest income from the payoff of the Company's only mortgage loan in July. Professional fees also increased from the write-off of fees associated with the termination of the Company's continuous private offering of unregistered senior common stock. This was partially offset by a $225,000 credit to the base management fee issued by the Company's Adviser. In addition, interest expense decreased significantly for the quarter because of the over 2% interest rate reduction in connection with the extension of the $48.0 million mortgage loan in September. FFO increased for the year primarily because of the $3.3 million of additional income and prepayment fees the Company received in connection with the early repayment of its mortgage loan receivable.
Commenting on the results of operations, Chip Stelljes, President and Chief Investment Officer, said, "During the quarter, we focused on managing and expanding the portfolio. As previously announced, we were excited to acquire a property during the last quarter, and we continue to actively search for additional properties. We were pleased that we obtained the new line of credit and were able to raise additional equity capital. We remain optimistic about our future and continue to see signs of economic improvement and stabilization in both the equity and debt capital markets. We continue to work to re-tenant our two vacant buildings and are pleased with the overall performance of our portfolio. We look forward to an active 2011 as the commercial real estate market continues to recover."
Net loss to common stockholders for the three months ended December 31, 2010 was approximately $232,000 or $0.03 per share, and net income available to common stockholders for the year ended December 31, 2010 was approximately $814,000, or $0.09 per share, compared to net income available to common stockholders of approximately $94,000 and $509,000, or $0.01 per share and $0.06 per share, respectively, for the same periods one year ago. A reconciliation of FFO for the quarters and years ended December 31, 2010 and 2009 to net income, which the Company believes is the most directly comparable GAAP measure to FFO, and a computation of basic and diluted FFO per weighted average share of common stock and basic and diluted net income per weighted average share of common stock is set forth below:
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| For the three months ended
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| For the year ended
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| 2010 |
| 2009 |
| 2010 |
| 2009 | |
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Net income | $ 806,872 |
| $ 1,117,553 |
| $ 4,927,908 |
| $ 4,603,048 | |
Less: Distributions attributable to preferred and senior common stock | (1,038,831) |
| (1,023,439) |
| (4,113,800) |
| (4,093,750) | |
Net (loss) income available to common stockholders | (231,959) |
| 94,114 |
| 814,108 |
| 509,298 | |
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Add: Real estate depreciation and amortization, including discontinued operations | 3,271,403 |
| 3,286,133 |
| 13,263,814 |
| 13,171,703 | |
Less: Gain on sale of real estate | - |
| - |
| - |
| (160,038) | |
FFO available to common stockholders | $ 3,039,444 |
| $ 3,380,247 |
| $ 14,077,922 |
| $ 13,520,963 | |
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Weighted average shares outstanding - basic | 8,637,981 |
| 8,563,264 |
| 8,576,303 |
| 8,563,264 | |
Weighted average shares outstanding - diluted | 8,688,900 |
| 8,563,264 |
| 8,601,153 |
| 8,563,264 | |
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Basic (loss) net income per weighted average share of common stock | $ (0.03) |
| $ 0.01 |
| $ 0.09 |
| $ 0.06 | |
Diluted (loss) net income per weighted average share of common stock | $ (0.03) |
| $ 0.01 |
| $ 0.09 |
| $ 0.06 | |
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Basic FFO per weighted average share of common stock | $ 0.35 |
| $ 0.39 |
| $ 1.64 |
| $ 1.58 | |
Diluted FFO per weighted average share of common stock | $ 0.35 |
| $ 0.39 |
| $ 1.64 |
| $ 1.58 | |
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Distributions declared per share of common stock | $ 0.375 |
| $ 0.375 |
| $ 1.500 |
| $ 1.500 | |
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Percentage of FFO paid per share of common stock | 107% |
| 95% |
| 91% |
| 95% | |
At December 31, 2010, the Company owned 65 properties totaling approximately 6.8 million square feet for a total net investment of approximately $384.1 million. Currently, 63 of the Company's properties are fully leased, or approximately 97.2% of the portfolio's total square footage and each of these tenants are current and paying in accordance with the terms of their leases.
The Company has $48.0 million of balloon principal payments due under one of its long-term mortgages in 2011; however, the mortgage has two remaining annual extension options through 2013, which the Company currently intends to exercise. The Company has no other balloon principal payments due under any of its mortgages until 2013.
The Company has no leases that expire in 2011; however, two leases expired during 2010. The Company is currently seeking new tenants for these two properties. Furthermore, one of the Company's tenants located in Hazelwood, Missouri rejected its lease with the Company as part of the tenant's bankruptcy proceedings. The Company's lease with this tenant was originally scheduled to expire in January 2012. Rental income from this tenant is less than 1% of the Company's total annualized rental income. The Company is taking the appropriate action to re-tenant the property.
Highlights of 2010, the Company:
- Received full early repayment on its $10.0 million mortgage loan and additional income and prepayment fees of $3.3 million, for total proceeds of $13.3 million;
- Acquired a 487,121 square foot property in Orange City, Iowa for $12.3 million. The property is leased to Staples Contract & Commercial, Inc.;
- Entered into a $50 million senior secured revolving line of credit agreement with Capital One N.A. and Branch Banking and Trust Company as lenders. The agreement has a three year term with a stated interest rate equal to LIBOR, plus an applicable margin of up to three hundred basis points;
- Exercised a one-year renewal option on its $48.0 million mortgage loan on September 30, 2010 to extend the maturity date until September 30, 2011;
- Issued 192,365 shares of common stock at an average price per share of $18.17 under its Open Market Sales Agreement with Jefferies & Company, Inc. for net proceeds of approximately $3.4 million;
- Extended the terms of the lease of its property located in Grand Rapids, Michigan until 2025, on the lease of its property located in Toledo, Ohio until 2020 and on the lease of its property located in Fridley, Minnesota until 2020; and
- Paid monthly distributions for the year totaling $1.50 per share on the common stock, $1.94 per share on the Series A Preferred Stock, $1.88 per share on the Series B Preferred Stock, and $0.60 per share on the Senior Common Stock. Approximately 84% of the common stock distributions paid in 2010 were deemed a return of capital.
Subsequent to year end, the Company:
- Issued 833,750 shares of common stock through an underwritten public offering for net proceeds of approximately $14.3 million, after deducting underwriting discounts and other offering expenses;
- Extended the lease with one tenant occupying five of its properties in Georgia until 2031; and
- Declared monthly cash distributions of $0.125 per share on the common stock, $0.1614583 per share on the Series A Preferred Stock, $0.15625 per share on the Series B Preferred Stock, and $0.085 per share on the Senior Common Stock, for each of the months of January, February and March 2011.
The financial statements attached below are without footnotes so readers should obtain and carefully review the Company's Annual Report on Form 10-K (the "Form 10-K") for the year ended December 31, 2010, including the footnotes to the financial statements contained therein. The Company filed the Form 10-K today with the Securities and Exchange Commission ("SEC") and the Form 10-K can be retrieved from the SEC's website at www.sec.gov or the Company's website at www.GladstoneCommercial.com.
The Company will hold a conference call on Wednesday, March 9, 2011 at 8:30 a.m. ET to discuss its earnings results. Please call (800) 860-2442 to enter the conference. An operator will monitor the call and set a queue for the questions.
The conference call replay will be available one hour after the call and will be accessible through April 8, 2011. To hear the replay, please dial (877) 344-7529 and use conference number 447116.
The live audio broadcast of Gladstone Commercial's quarterly conference call will be available online at www.GladstoneCommercial.com. The event will be archived and available for replay on the Company's website through May 8, 2011.
Gladstone Commercial Corporation is a publicly-traded real estate investment trust that focuses on investing in and owning triple-net leased industrial and commercial real estate properties and selectively making long-term mortgage loans. Information on the business activities of all the Gladstone Funds can be found at www.gladstonecompanies.com.
For Investor Relations inquiries related to any of the monthly dividend paying Gladstone Funds, please visit www.gladstone.com.
NON-GAAP FINANCIAL MEASURE - FFO
The National Association of Real Estate Investment Trusts ("NAREIT") developed FFO as a relative non-GAAP supplemental measure of operating performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO, as defined by NAREIT, is net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. FFO does not represent cash flows from operating activities determined in accordance with GAAP and should not be considered an alternative to net income as an indication of the Company's performance or to cash flow from operations as a measure of liquidity or ability to make distributions. The Company believes that FFO per share provides investors with an additional context for evaluating the Company's financial performance and as a supplemental measure to compare the Company to other REITs; however, comparisons of the Company's FFO to the FFO of other REITs may not necessarily be meaningful due to potential differences in the application of the NAREIT definition used by such other REITs. To learn more about FFO, please refer to the Company's Form 10-K for the year ended December 31, 2010, as filed with the SEC today.
The statements in this press release regarding the Company's ability, plans or intentions to re-tenant its unoccupied properties, extend the respective maturity dates of its long-term mortgages, grow its portfolio and FFO, renegotiate leases and make capital improvements to certain of its properties and raise additional capital are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on the Company's current plans that are believed to be reasonable as of the date of this press release. Factors that may cause actual results to differ materially from these forward-looking statements include, but are not limited to, its ability to raise additional capital, the duration of, or further downturns in, the current economic environment, the performance of its tenants and significant changes in interest rates. Additional factors that could cause actual results to differ materially from those stated or implied by the Company's forward-looking statements are disclosed under the caption "Risk factors" of the Company's Form 10-K for the fiscal year ended December 31, 2010, as filed with the SEC on March 8, 2011. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Gladstone Commercial Corporation | ||||
Consolidated Balance Sheets | ||||
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| December 31, 2010 |
| December 31, 2009 | |
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ASSETS |
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Real estate, at cost | $ 401,016,940 |
| $ 390,753,892 | |
Less: accumulated depreciation | 43,659,456 |
| 34,111,952 | |
Total real estate, net | 357,357,484 |
| 356,641,940 | |
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Lease intangibles, net | 26,746,992 |
| 28,177,461 | |
Mortgage note receivable | - |
| 10,000,000 | |
Cash and cash equivalents | 7,061,504 |
| 3,096,598 | |
Restricted cash | 2,288,410 |
| 2,633,538 | |
Funds held in escrow | 2,621,091 |
| 2,487,680 | |
Deferred rent receivable | 10,373,508 |
| 8,975,196 | |
Deferred financing costs, net | 3,325,740 |
| 3,136,055 | |
Other assets | 833,873 |
| 1,716,905 | |
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TOTAL ASSETS | $ 410,608,602 |
| $ 416,865,373 | |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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LIABILITIES |
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Mortgage notes payable | $ 260,869,463 |
| $ 252,761,651 | |
Borrowings under line of credit | 27,000,000 |
| 33,200,000 | |
Deferred rent liability | 2,276,033 |
| 3,213,195 | |
Asset retirement obligation liability | 3,062,768 |
| 2,305,644 | |
Accounts payable and accrued expenses | 2,682,915 |
| 2,086,741 | |
Due to Adviser | 965,373 |
| 1,213,640 | |
Other liabilities | 2,377,743 |
| 3,633,960 | |
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Total Liabilities | 299,234,295 |
| 298,414,831 | |
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STOCKHOLDERS’ EQUITY |
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Redeemable preferred stock, $0.001 par value; $25 liquidation preference; |
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2,300,000 shares authorized and 2,150,000 shares issued and outstanding at December 31, 2010 and 2009, respectively | 2,150 |
| 2,150 | |
Senior common stock, $0.001 par value; 7,500,000 shares authorized and |
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59,057 and 0 shares issued and outstanding at December 31, 2010 and 2009, respectively | 59 |
| - | |
Common stock, $0.001 par value, 40,200,000 shares authorized and |
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8,724,613 and 8,563,264 shares issued and outstanding at December 31, 2010 and 2009, respectively | 8,725 |
| 8,563 | |
Additional paid in capital | 174,260,531 |
| 170,622,581 | |
Notes receivable - employees | (963,433) |
| (2,304,999) | |
Distributions in excess of accumulated earnings | (61,933,725) |
| (49,877,753) | |
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Total Stockholders’ Equity | 111,374,307 |
| 118,450,542 | |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 410,608,602 |
| $ 416,865,373 | |
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Gladstone Commercial Corporation | ||||||||
Consolidated Statements of Operations | ||||||||
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| For the three |
| For the three |
| For the three |
| For the three | |
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| months ended |
| months ended |
| months ended |
| months ended | |
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| December 31, 2010 |
| September 30, 2010 |
| June 30, 2010 |
| March 30, 2010 | |
Operating revenues |
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Rental income | $ 10,146,240 |
| $ 10,209,211 |
| $ 10,409,519 |
| $ 10,415,066 | |
Interest income from mortgage note receivable | - |
| 43,750 |
| 189,583 |
| 187,500 | |
Tenant recovery revenue | 81,054 |
| 81,452 |
| 82,285 |
| 82,410 | |
Total operating revenues | 10,227,294 |
| 10,334,413 |
| 10,681,387 |
| 10,684,976 | |
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Operating expenses |
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Depreciation and amortization | 3,271,403 |
| 3,280,048 |
| 3,390,492 |
| 3,321,871 | |
Property operating expenses | 234,701 |
| 262,686 |
| 229,733 |
| 244,354 | |
Due diligence expense | 389,900 |
| - |
| - |
| 21,876 | |
Base management fee | 291,619 |
| 298,393 |
| 296,141 |
| 312,564 | |
Incentive fee | 734,460 |
| 1,070,145 |
| 829,264 |
| 846,192 | |
Administration fee | 255,232 |
| 356,856 |
| 219,119 |
| 231,884 | |
Professional fees | 370,428 |
| 1,822,683 |
| 201,801 |
| 175,610 | |
Insurance expense | 47,046 |
| 53,219 |
| 56,513 |
| 56,325 | |
Directors' fees | 43,759 |
| 54,533 |
| 49,025 |
| 49,418 | |
General and administrative | 109,814 |
| 83,656 |
| 134,186 |
| 100,292 | |
Total operating expenses before credits from Adviser | 5,748,362 |
| 7,282,219 |
| 5,406,274 |
| 5,360,386 | |
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Credit to base management fee | (225,000) |
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Credit to incentive fee | (101,596) |
| - |
| (56,073) |
| - | |
Total operating expenses | 5,421,766 |
| 7,282,219 |
| 5,350,201 |
| 5,360,386 | |
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Other income (expense) |
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Interest income from temporary investments | 7,543 |
| 114 |
| 113 |
| 265 | |
Interest income - employee loans | 28,650 |
| 36,557 |
| 42,574 |
| 43,101 | |
Other income | 14 |
| 3,309,887 |
| 5,013 |
| 3,316 | |
Interest expense | (4,034,863) |
| (4,370,500) |
| (4,372,435) |
| (4,284,939) | |
Total other expense | (3,998,656) |
| (1,023,942) |
| (4,324,735) |
| (4,238,257) | |
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Net income | 806,872 |
| 2,028,252 |
| 1,006,451 |
| 1,086,333 | |
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Distributions attributable to preferred stock | (1,023,438) |
| (1,023,437) |
| (1,023,437) |
| (1,023,438) | |
Distributions attributable to senior common stock | (15,393) |
| (4,282) |
| (375) |
| - | |
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Net income available to common stockholders | $ (231,959) |
| $ 1,000,533 |
| $ (17,361) |
| $ 62,895 | |
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Earnings per weighted average share of common stock - basic |
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Income from continuing operations (net of distributions attributable to preferred stock) | $ (0.03) |
| $ 0.12 |
| $ - |
| $ 0.01 | |
Discontinued operations | - |
| - |
| - |
| - | |
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Net income available to common stockholders | $ (0.03) |
| $ 0.12 |
| $ - |
| $ 0.01 | |
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Earnings per weighted average share of common stock - diluted |
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Income from continuing operations (net of dividends attributable to preferred stock) | $ (0.03) |
| $ 0.12 |
| $ - |
| $ 0.01 | |
Discontinued operations | - |
| - |
| - |
| - | |
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Net income available to common stockholders | $ (0.03) |
| $ 0.12 |
| $ - |
| $ 0.01 | |
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Weighted average shares of common stock outstanding - basic | 8,637,981 |
| 8,562,777 |
| 8,545,264 |
| 8,558,664 | |
Weighted average shares of common stock outstanding- diluted | 8,688,900 |
| 8,577,173 |
| 8,546,529 |
| 8,558,664 | |
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Earnings per weighted average share of senior common stock | $ 0.30 |
| $ 0.26 |
| $ 0.26 |
| $ - | |
Weighted average shares of senior common stock outstanding - basic | 50,919 |
| 16,286 |
| 1,435 |
| 0 | |
Gladstone Commercial Corporation | ||||||
Consolidated Statements of Operations | ||||||
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| For the year ended December 31, | |||||
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| 2010 |
| 2009 |
| 2008 | |
Operating revenues |
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Rental income | $ 41,180,036 |
| $ 41,513,977 |
| $ 39,572,287 | |
Interest income from mortgage note receivable | 420,833 |
| 760,417 |
| 898,573 | |
Tenant recovery revenue | 327,201 |
| 334,543 |
| 336,637 | |
Total operating revenues | 41,928,070 |
| 42,608,937 |
| 40,807,497 | |
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Operating expenses |
|
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Depreciation and amortization | 13,263,814 |
| 13,161,287 |
| 12,679,437 | |
Property operating expenses | 971,474 |
| 915,120 |
| 875,850 | |
Due diligence expense | 411,776 |
| 40,574 |
| 1,176,379 | |
Base management fee | 1,198,717 |
| 1,401,402 |
| 1,637,851 | |
Incentive fee | 3,480,061 |
| 3,238,634 |
| 2,831,722 | |
Administration fee | 1,063,091 |
| 1,015,695 |
| 954,635 | |
Professional fees | 2,570,522 |
| 649,566 |
| 521,410 | |
Insurance expense | 213,103 |
| 203,682 |
| 173,414 | |
Directors' fees | 196,735 |
| 198,882 |
| 216,851 | |
General and administrative | 427,948 |
| 442,135 |
| 493,119 | |
Total operating expenses before credits from Adviser | 23,797,241 |
| 21,266,977 |
| 21,560,668 | |
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Credit to base management fee | (225,000) |
| - |
| - | |
Credit to incentive fee | (157,669) |
| (726,448) |
| (2,196,945) | |
Total operating expenses | 23,414,572 |
| 20,540,529 |
| 19,363,723 | |
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Other income (expense) |
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Interest income from temporary investments | 8,035 |
| 20,748 |
| 21,844 | |
Interest income - employee loans | 150,882 |
| 192,350 |
| 202,097 | |
Other income | 3,318,230 |
| 12,978 |
| 63,993 | |
Interest expense | (17,062,737) |
| (17,894,536) |
| (16,858,687) | |
Total other expense | (13,585,590) |
| (17,668,460) |
| (16,570,753) | |
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Income from continuing operations | 4,927,908 |
| 4,399,948 |
| 4,873,021 | |
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Discontinued operations |
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Income from discontinued operations | - |
| 43,062 |
| 39,926 | |
Gain on sale of real estate | - |
| 160,038 |
| - | |
Total discontinued operations | - |
| 203,100 |
| 39,926 | |
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Net income | 4,927,908 |
| 4,603,048 |
| 4,912,947 | |
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Distributions attributable to preferred stock | (4,093,750) |
| (4,093,750) |
| (4,093,750) | |
Distributions attributable to senior common stock | (20,050) |
| - |
| - | |
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Net income available to common stockholders | $ 814,108 |
| $ 509,298 |
| $ 819,197 | |
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Earnings per weighted average share of common stock - basic |
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Income from continuing operations (net of distributions attributable to preferred stock) | $ 0.09 |
| $ 0.04 |
| $ 0.09 | |
Discontinued operations | - |
| 0.02 |
| 0.01 | |
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|
|
|
|
|
| |
Net income available to common stockholders | $ 0.09 |
| $ 0.06 |
| $ 0.10 | |
|
|
|
|
|
|
| |
Earnings per weighted average share of common stock - diluted |
|
|
|
|
| |
Income from continuing operations (net of dividends attributable to preferred stock) | $ 0.09 |
| $ 0.04 |
| $ 0.09 | |
Discontinued operations | - |
| 0.02 |
| 0.01 | |
|
|
|
|
|
|
| |
Net income available to common stockholders | $ 0.09 |
| $ 0.06 |
| $ 0.10 | |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
Weighted average shares of common stock outstanding - basic | 8,576,303 |
| 8,563,264 |
| 8,565,149 | |
Weighted average shares of common stock outstanding- diluted | 8,601,153 |
| 8,563,264 |
| 8,565,149 | |
|
|
|
|
|
|
| |
Earnings per weighted average share of senior common stock | $ 0.81 |
| $ - |
| $ - | |
Weighted average shares of senior common stock outstanding - basic | 24,850 |
| 0 |
| 0 | |
|
|
|
|
|
|
| |
Gladstone Commercial Corporation | ||||||
Consolidated Statements of Cash Flows | ||||||
|
| For the year ended December 31, | |||||
|
| 2010 |
| 2009 |
| 2008 | |
|
|
|
|
|
|
| |
Cash flows from operating activities: |
|
|
|
|
| |
Net income | $ 4,927,908 |
| $ 4,603,048 |
| $ 4,912,947 | |
Adjustments to reconcile net income to net cash |
|
|
|
|
| |
provided by operating activities: |
|
|
|
|
| |
Depreciation and amortization, including discontinued operations | 13,263,814 |
| 13,171,703 |
| 12,704,641 | |
Amortization of deferred financing costs | 1,002,428 |
| 1,491,389 |
| 1,283,956 | |
Amortization of deferred rent asset and liability, net | (683,666) |
| (532,068) |
| (532,066) | |
Amortization of discount on assumed debt | 11,301 |
| - |
| - | |
Asset retirement obligation expense, including discontinued operations | 143,060 |
| 143,550 |
| 133,244 | |
Gain on sale of real estate | - |
| (160,038) |
| - | |
Decrease (increase) in other assets | 389,133 |
| (959,738) |
| 172,096 | |
Increase in deferred rent receivable | (1,651,809) |
| (1,177,167) |
| (2,387,509) | |
Increase in accounts payable, accrued expenses, and amount due Adviser | 347,908 |
| 735,492 |
| 1,001,639 | |
Increase (decrease) in other liabilities | 363,366 |
| (302,914) |
| 286,227 | |
Net cash provided by operating activities | 18,113,443 |
| 17,013,257 |
| 17,575,175 | |
|
|
|
|
|
|
| |
Cash flows from investing activities: |
|
|
|
|
| |
Real estate investments | (2,418,534) |
| (1,139,711) |
| (49,359,852) | |
Leasing commissions paid | (7,044) |
| (441,745) |
| - | |
Proceeds from sale of real estate | - |
| 1,089,269 |
| - | |
Principal repayments on mortgage notes receivable | 10,000,000 |
| - |
| - | |
Receipts from lenders for reserves held in escrow | 1,617,933 |
| 1,465,133 |
| 874,227 | |
Payments to lenders for reserves held in escrow | (1,751,344) |
| (1,801,894) |
| (1,623,452) | |
Decrease (increase) in restricted cash | 345,128 |
| 44,023 |
| (763,494) | |
Deposits on future acquisitions | - |
| (250,000) |
| (1,650,000) | |
Deposits refunded | 250,000 |
| 200,000 |
| 1,750,000 | |
Net cash provided by (used in) investing activities | 8,036,139 |
| (834,925) |
| (50,772,571) | |
|
|
|
|
|
|
| |
Cash flows from financing activities: |
|
|
|
|
| |
Proceeds from issuance of common and senior common stock | 4,126,690 |
| - |
| - | |
Offering costs | (248,829) |
| - |
| - | |
Borrowings under mortgage notes payable | - |
| - |
| 48,015,000 | |
Principal repayments on mortgage notes payable | (2,687,192) |
| (2,349,522) |
| (1,485,901) | |
Principal repayments on employee notes receivable | 1,341,566 |
| 290,887 |
| 155,637 | |
Borrowings from line of credit | 32,794,746 |
| 57,600,000 |
| 76,900,000 | |
Repayments on line of credit | (38,994,746) |
| (35,900,000) |
| (69,800,000) | |
Repayment of short-term loan | - |
| (20,000,000) |
| - | |
Receipts from tenants for reserves | 2,154,699 |
| 4,454,102 |
| 2,391,360 | |
Payments to tenants from reserves | (2,130,232) |
| (4,526,409) |
| (2,159,671) | |
(Decrease) increase in security deposits | (369,595) |
| 28,282 |
| 531,806 | |
Payments for deferred financing costs | (1,192,113) |
| (243,999) |
| (1,262,273) | |
Distributions paid for common and preferred | (16,979,670) |
| (16,938,653) |
| (16,941,392) | |
Net cash (used in) provided by financing activities | (22,184,676) |
| (17,585,312) |
| 36,344,566 | |
|
|
|
|
|
|
| |
Net increase (decrease) in cash and cash equivalents | 3,964,906 |
| (1,406,980) |
| 3,147,170 | |
|
|
|
|
|
|
| |
Cash and cash equivalents, beginning of year | 3,096,598 |
| 4,503,578 |
| 1,356,408 | |
|
|
|
|
|
|
| |
Cash and cash equivalents, end of year | $ 7,061,504 |
| $ 3,096,598 |
| $ 4,503,578 | |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
Cash paid during period for interest | $ 17,969,864 |
| $ 16,558,955 |
| $ 14,337,944 | |
|
|
|
|
|
|
| |
NON-CASH OPERATING, INVESTING AND FINANCING INFORMATION |
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
Increase in asset retirement obligation | $ 614,064 |
| $ - |
| $ 245,196 | |
|
|
|
|
|
|
| |
Fixed rate debt assumed in connection with acquisitions | $ 10,795,004 |
| $ - |
| $ 6,461,603 | |
|
|
|
|
|
|
| |
Obligation under capital lease | $ - |
| $ - |
| $ 225,068 | |
|
|
|
|
|
|
| |
Forfeiture of common stock in satisfaction of employee note receivable | $ 243,900 |
| $ - |
| $ 18,400 | |
|
|
|
|
|
|
| |
Senior common dividend issued in the dividend reinvestment program | $ 4,210 |
| $ - |
| $ - | |
Reclassification of principal on employee note (Refer to Note 8) | $ - |
| $ 245,000 |
| $ - | |
|
|
|
|
|
|
| |
Leasing commissions included in accounts payable | $ 457,939 |
| $ - |
| $ - | |
CONTACT: Gladstone Commercial Corporation, +1-703-287-5893