1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

Gladstone Commercial Corp. Reports Operating Results (10-Q)

May 03, 2010 | About:

Gladstone Commercial Corp. (NASDAQ:GOOD) filed Quarterly Report for the period ended 2010-03-31.

Gladstone Commercial Corp. has a market cap of $138.43 million; its shares were traded at around $16.2 with a P/E ratio of 231.43 and P/S ratio of 3.25. The dividend yield of Gladstone Commercial Corp. stocks is 9.26%.GOOD is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

We were incorporated under the General Corporation Law of the State of Maryland on February 14, 2003, primarily for the purpose of investing in and owning net leased industrial and commercial real property and selectively making long-term industrial and commercial mortgage loans. Most of the portfolio of real estate that we currently own is leased to a wide cross section of tenants ranging from small businesses to large public companies, many of which are corporations that do not have publicly rated debt. We have historically entered into, and intend in the future to enter into, purchase agreements for real estate having triple net leases with terms of approximately 10 to 15 years and built in rental rate increases. Under a triple net lease, the tenant is required to pay all operating, maintenance and insurance costs and real estate taxes with respect to the leased property. We are actively communicating with buyout funds, real estate brokers and other third parties to locate properties for potential acquisition or to provide mortgage financing in an effort to build our portfolio. At March 31, 2010, we owned 64 properties totaling approximately 6.3 million square feet, and had one mortgage loan outstanding. The total gross investment in these acquisitions, including the $10.0 million mortgage loan investment, was approximately $444.2 million at March 31, 2010.

During the three months ended March 31, 2010, we had net borrowings under our line of credit of approximately $1.7 million, with $34.9 million outstanding at March 31, 2010. The proceeds from borrowings under the line of credit were used for working capital and to fund capital improvements at certain of our properties.

On November 19, 2009, we entered into a dealer manager agreement, or the Dealer Manager Agreement, with Halcyon Capital Markets, LLC, or Halcyon, pursuant to which Halcyon will act as our dealer manager in connection with our continuous private offering of up to 3,333,333 shares of our newly designated senior common stock at $15.00 per share. On April 29, 2010, we issued 2,060 shares of senior common stock in our first closing of the private offering. Net proceeds from the sale, after selling commissions and the dealer manager fee, were $27,675. The net proceeds from the sale of the senior common stock will be used for investment in additional properties and mortgage loans, to repay indebtedness, to potentially purchase shares of our preferred stock on the open market, or other general corporate purposes.

Read the The complete Report

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

Rating: 5.0/5 (2 votes)


Please leave your comment:

Performances of the stocks mentioned by 10qk

User Generated Screeners

jan.ellsbergerHernhag rev3
jan.ellsbergerHernhag rev2
JFranklinShort Stage 4 (2.0)
JFranklinShort Stage 4 (1.0)
BoubaPFS Value Sector
JFranklinTo Short Stage 4
eae010Forward Growth Edited
bpatton23L/Cap value
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat