Gladstone mercial (US:GOOD)2025-11-03 21:02Property Management - As of November 3, 2025, the company owned 151 properties totaling 17.7 million square feet of rentable space with an occupancy rate of 99.1%[120] - During the nine months ended September 30, 2025, the company executed 13 leases totaling 857,481 square feet with a weighted average remaining lease term of 7.3 years[131] - The company acquired 19 industrial properties during the nine months ended September 30, 2025, with an aggregate purchase price of $207.9 million and a weighted average remaining lease term of 15.9 years[130] - The company sold two non-core properties for an aggregate sales price of $8.025 million during the nine months ended September 30, 2025[129] - The company has no lease expirations for the remainder of 2025, indicating stability in rental income[127] - The average remaining lease term of the portfolio was 7.4 years as of November 3, 2025, indicating long-term stability in rental agreements[120] - The company's largest tenant comprised only 5.3% of total lease revenue for the nine months ended September 30, 2025, indicating a diversified portfolio[146] Financial Performance - Total lease revenue for the three months ended September 30, 2025, was $40,841,000, compared to $39,235,000 for the same period in 2024, reflecting a year-over-year increase[147] - For the nine months ended September 30, 2025, total lease revenue was $117,875,000, up from $112,013,000 in the same period in 2024[147] - The state of Texas generated $6,748,000 in lease revenue for the three months ended September 30, 2025, accounting for 16.5% of total lease revenue[147] - Total operating revenues for Q3 2025 were $40,841,000, an increase of 4.1% compared to $39,235,000 in Q3 2024[163] - Net income for Q3 2025 was $4,137,000, a decrease of 64.7% from $11,721,000 in Q3 2024[163] - Funds from Operations (FFO) available to common stockholders for Q3 2025 was $16,264,000, up 1.1% from $16,084,000 in Q3 2024[163] - Total operating revenues for the nine months ended September 30, 2025, increased to $117,875,000, a 5.2% increase from $112,013,000 in 2024[165] - Net income available to common stockholders and Non-controlling OP Unitholders decreased to $4,358,000 for the nine months ended September 30, 2025, down 39.4% from $7,188,000 in 2024[165] - Funds from Operations (FFO) available to common stockholders and Non-controlling OP Unitholders increased to $46,763,000 for the nine months ended September 30, 2025, a 6.1% increase from $44,060,000 in 2024[165] Expenses and Fees - Total operating expenses for Q3 2025 were $26,021,000, down 8.8% from $28,546,000 in Q3 2024[163] - The base management fee for Q3 2025 was $1,701,000, an increase of 11.3% from $1,528,000 in Q3 2024[163] - The incentive fee for Q3 2025 was $709,000, a decrease of 38.1% from $1,146,000 in Q3 2024[163] - The base management fee increased to $4,908,000 for the nine months ended September 30, 2025, a 7.2% increase from $4,580,000 in 2024[171] - The net incentive fee decreased to $2,057,000 for the nine months ended September 30, 2025, a 42.3% decrease from $3,562,000 in 2024[171] Liquidity and Capital Management - The company amended its Credit Facility, increasing the Revolver from $125.0 million to $200.0 million, enhancing liquidity for future acquisitions[135] - The company has adequate liquidity to cover near-term debt obligations and operating expenses, with compliance to all debt covenants as of September 30, 2025[124] - Available liquidity as of September 30, 2025, was $24.6 million, consisting of approximately $18.4 million in cash and cash equivalents and $6.2 million in available borrowing capacity[176] - The company has the ability to raise up to $1.0 billion of additional equity capital through future public offerings under the 2024 Registration Statement[180] - As of September 30, 2025, the company raised net proceeds of $61.0 million from common equity and $0.4 million from Series F Preferred Stock sales[179] Debt and Interest Rates - The total mortgage notes payable amounted to $257.1 million, with a weighted average interest rate of 4.22% and a remaining average maturity of 2.9 years[181] - As of September 30, 2025, the company had $495.4 million outstanding under its Credit Facility at a weighted average interest rate of approximately 5.55%[189] - The company incurred fees of approximately $4.2 million related to amending and upsizing its Credit Facility[188] - The total contractual obligations as of September 30, 2025, amounted to $969.5 million, with $206.4 million due within one year[192] - The company aims to manage interest rate risk by primarily borrowing at fixed rates or variable rates with the lowest margins available[207] - The company has entered into derivative contracts to cap interest rates for variable rate notes payable and has implemented interest rate swaps[200] - Future interest rate changes may impact the company's ability to refinance debt and affect overall liquidity[208] Stock and Equity Transactions - The company entered into a new At-the-Market Equity Offering Sales Agreement in March 2023, allowing for the sale of up to $250.0 million of common stock, but did not sell any shares during the nine months ended September 30, 2025[138] - Under the 2024 Common Stock Sales Agreement, the company sold 4,412,814 shares of common stock, raising approximately $61.0 million in net proceeds during the nine months ended September 30, 2025[140] - The 2024 Registration Statement allows the company to issue up to $1.3 billion of securities, replacing the previous 2022 Registration Statement[141] Impairment and Other Income - The company’s impairment charge for Q3 2025 was $0, compared to $4,549,000 in Q3 2024, reflecting a 100% decrease[163] - Other income increased to $590,000 for the nine months ended September 30, 2025, a 708.2% increase from $73,000 in 2024[174]