Gladstone Commercial Q1 Core FFO Falls 4.7% to $17M, Leases 805,622 Sq Ft
GOOD•Gladstone Commercial reported Core FFO of $17.0 million in Q1, down 4.7% from Q4, with FFO per share sliding to $0.35. Net income available to common shareholders rose 71.5% to $3.84 million ($0.08 per share), while leasing activity totaled 805,622 sq ft and occupancy remained at 98.7%.
1. Q1 Financial Highlights
Gladstone Commercial generated operating revenue of $41.9 million in Q1, down 3.6% quarter-over-quarter, while net income rose 29.5% to $6.97 million and net income available to common stockholders and OP unitholders increased 71.5% to $3.84 million ($0.08 per share).
2. Funds From Operations
FFO available to common stockholders and OP unitholders – diluted decreased 4.9% to $16.95 million ($0.35 per share), and Core FFO declined 4.7% to $17.01 million ($0.35 per share), primarily due to the absence of prior period lease termination and easement settlements, partially offset by lower incentive fees and reduced interest expense.
3. Portfolio Activity
The company collected 100% of cash rents due, leased or renewed 805,622 sq ft across five properties, maintaining occupancy at 98.7%, and sold a land parcel for $2.0 million.
4. Debt Management and Distributions
Gladstone Commercial repaid $1.5 million in fixed-rate mortgage debt at a 6.58% weighted rate, extended $7.8 million of swapped-to-fixed mortgage debt at 3.78% for one year, and paid quarterly distributions of $0.30 per common share, with preferred dividends ranging from $0.2625 to $0.414063 per share.
