Gladstone mercial (GOOD) - 2024 Q4 - Annual Results

Financial Performance - Total operating revenue for Q4 2024 was $37,375,000, a decrease of 4.7$39,235,000 in Q3 2024[3] - Net income for Q4 2024 was $7,193,000, down 38.6$11,721,000 in Q3 2024[3] - Funds from operations (FFO) available to common stockholders and Non-controlling OP Unitholders - diluted for Q4 2024 was $15,286,000, a decrease of 5.6$16,190,000 in Q3 2024[3] - Total operating revenue for the year ended December 31, 2024, was $149,388,000, an increase of 1.2$147,584,000 in 2023[7] - Net income for the year ended December 31, 2024, was $24,040,000, a significant increase of 388.4$4,922,000 in 2023[7] - Funds from operations (FFO) available to common stockholders and Non-controlling OP Unitholders - diluted for the year ended December 31, 2024, was $59,665,000, an increase of 0.8$59,214,000 in 2023[7] - Net income available to common stockholders for the year ended December 31, 2024, was $11.2 million, or$0.27 per share, compared to a net loss of $(7.8) million, or$(0.19) per share for the year ended December 31, 2023[15] - FFO available to common stockholders for the year ended December 31, 2024, was $59.7 million, a 0.8$59.1 million for the year ended December 31, 2023, equating to $1.41 per share[14] - Core FFO available to common stockholders for the year ended December 31, 2024, was$60.2 million, a 0.5% increase compared to $59.9 million for the year ended December 31, 2023, equating to$1.42 per share[14] Asset Valuation - Real estate, before accumulated depreciation, was valued at $1,219,918,000 as of December 31, 2024, a decrease of 1.5$1,238,271,000 as of September 30, 2024[4] - Total assets as of December 31, 2024, were $1,094,348,000, a slight decrease of 0.2$1,096,315,000 as of September 30, 2024[4] - Total assets decreased by 3.5% to $1,094.3 million as of December 31, 2024, compared to$1,133.5 million as of December 31, 2023[8] Operational Performance - Square feet leased increased to 98.7% as of December 31, 2024, compared to 98.5% as of September 30, 2024[4] - The company collected 100% of 2024 base rent throughout the year, demonstrating strong rent collection performance[11] - The company acquired seven fully-occupied properties for $26.8 million at a weighted average cap rate of 10.99$39.0 million as part of its capital recycling strategy, recognizing a capital gain of $10.3 million[11][17] - The company leased 1,798,984 square feet of previously vacant space during the year, with lease terms ranging from 0.7 years to 7.2 years[11] Capital Management - The company issued$75.0 million in senior unsecured notes at a fixed interest rate of 6.47% with a maturity date of December 18, 2029[11] - The company emphasizes the importance of its ability to raise additional capital and secure financing for operations and debt refinancing[24] Market Outlook and Risks - The company anticipates continued growth in same store rents, which have increased by approximately 2% annually in recent years[17] - Gladstone Commercial's forward-looking statements regarding income stability and portfolio growth are subject to risks and uncertainties[24] - Economic downturns and tenant performance are significant factors that may impact actual results compared to forecasts[24] - Competition affects efforts to renew existing leases or re-lease space, which could influence overall performance[24] - Changes in interest rates may significantly impact the company's financial outcomes[24] - The company has filed its Form 10-K for the fiscal year ended December 31, 2024, which includes detailed risk factors[24] - Gladstone Commercial does not undertake any obligation to update or revise forward-looking statements unless required by law[25]