Gladstone Commercial's Q3 Core FFO falls on higher expenses
GOOD•Gladstone Commercial's Q3 Core FFO per share fell 7.9% sequentially to $0.35, while operating revenue declined 3.6%. Higher property and interest expenses and a lease termination fee drove the FFO decline.
1. Q3 results
Gladstone Commercial reported Q3 Core FFO of $0.35 per share, down 7.9% from the prior quarter. Operating revenue fell 3.6% sequentially; higher property and interest expenses, along with a lease termination fee, drove the FFO decline. The company recorded a $6.5 million impairment charge on one property.
2. Outlook
The company plans to continue selling non-core assets and acquiring properties in target growth markets. It expects challenges from inflation, higher interest rates and economic uncertainty, and anticipates same-store rents will continue rising as its portfolio grows.
