Gladstone Commercial Corporation(GOODN) - 2025 Q1 - Quarterly Results

Financial Performance - Total operating revenue for Q1 2025 was $37.5 million, a slight increase of 0.3% from $37.4 million in Q4 2024[3] - Net income available to common stockholders for Q1 2025 was $1.9 million, or $0.04 per share, down 51.8% from $4.0 million, or $0.09 per share in Q4 2024[3][8] - Core FFO available to common stockholders for Q1 2025 was $15.3 million, a decrease of 0.2% compared to $15.3 million in Q4 2024, equating to $0.34 per share[7][4] Asset Management - Total assets increased to $1.16 billion, up 6.0% from $1.09 billion in Q4 2024[4] - The company acquired six fully-occupied properties for $73.7 million, with a weighted average cap rate of 8.39%[10] - The company renewed or leased 67,709 square feet of space with a remaining lease term of 3.0 years[10] Cash Management - The company successfully collected 100% of cash rents for Q1 2025 and April 2025[10][12] - Monthly cash distributions for common stock were maintained at $0.30 per share[10] - Declared monthly cash distributions totaling $0.30 per share on common stock and Non-controlling OP Units for April, May, and June 2025[17] Capital Strategy - The company plans to continue its capital recycling strategy by selling non-core assets and reinvesting in target growth markets[12] - Repaid $7.2 million in variable rate mortgage debt at an interest rate of SOFR + 2.25%[17] - The company anticipates continued access to debt and equity markets for added liquidity amid economic uncertainties[12] Financial Metrics - Core FFO is adjusted for acquisition-related expenses and non-recurring expense adjustments, differing from NAREIT's definition[16] - FFO is a non-GAAP measure that excludes gains or losses from property sales and impairment losses, providing context for financial performance[15] - The company believes Core FFO is a meaningful supplemental measure of its operating performance[18] Forward-Looking Statements - Forward-looking statements regarding income stability and portfolio growth involve risks and uncertainties, including capital raising and economic downturns[20] - The company cautions against undue reliance on forward-looking statements, which may change based on new information or events[20]