Gladstone Commercial Pref Share GOOD 6.625 Prep 10/31/24 E | 8-K: FY2025 Q2 Revenue: USD 39.53 M

Revenue: As of FY2025 Q2, the actual value is USD 39.53 M.

EPS: As of FY2025 Q2, the actual value is USD 0.03.

Segment Revenue

• Total operating revenue for the three months ended June 30, 2025, was $39,533,000, representing a 5.4% increase from $37,501,000 for the three months ended March 31, 2025.

Operational Metrics

• Net income for the three months ended June 30, 2025, was $4,634,000, a decrease of 9.8% from $5,136,000 for the three months ended March 31, 2025.
• Net income available to common stockholders and Non-controlling OP Unitholders was $1,457,000, or $0.03 per share, compared to $1,917,000, or $0.04 per share, for the previous quarter, a decrease of 24.0%.
• Total operating expenses increased by 5.4% to $25,146,000 from $23,858,000 in the previous quarter.

Cash Flow

• Funds from operations (FFO) available to common stockholders and Non-controlling OP Unitholders - diluted was $15,439,000, a 1.2% increase from $15,261,000 in the previous quarter.
• Core funds from operations (Core FFO) available to common stockholders and Non-controlling OP Unitholders - diluted was $16,114,000, a 5.4% increase from $15,295,000 in the previous quarter.

Unique Metrics

• Collected 100% of cash rents due during April, May, and June 2025.
• Acquired two fully-occupied facilities for $79.3 million, with a weighted average cap rate of 8.88%.
• Sold one non-core office property for $5.1 million and one non-core industrial property for $18.5 million as part of the capital recycling strategy.

Outlook / Guidance

• Gladstone Commercial anticipates continuing its capital recycling program by selling non-core assets and reinvesting in target growth markets, particularly focusing on industrial properties.
• The company expects to face challenges due to economic uncertainties but remains confident in its tenant credit underwriting and anticipates continued rent collection success.
• Gladstone Commercial plans to maintain access to debt and equity markets for added liquidity and expects same store rents to continue rising as they grow.