Gladstone Commercial Corporation (GOOD) Q2 2025 Earnings Call Transcript
FFO and Core FFO per share FFO and core FFO per share available to common stockholders were $0.33 and $0.35 per share, respectively, for Q2 2025. This is a decrease from $0.36 per share for both FFO and core FFO in Q2 2024. The decline is attributed to changes in operating revenues and expenses.
Same-store rents Same-store rents increased by 6.4% in the 6 months ended June 30, 2025, compared to the same period in 2024. This increase was due to higher property expense recovery revenue and increased rental rates from leasing activity.
Operating revenues and expenses Operating revenues for Q2 2025 were $39.5 million, up from $37.1 million in Q2 2024, due to increased recovery and higher rental rates. Operating expenses decreased to $25.1 million from $26.0 million in Q2 2024, mainly due to the crediting back of all the incentive fee in 2025 and lower depreciation and amortization expense, offset by higher property operating expenses.
Net assets Net assets increased from $1.16 billion to $1.2 billion during Q2 2025, primarily due to the acquisition of two industrial facilities.
Debt profile 42% of debt is fixed rate, 39% is hedged floating rate, and 19% is floating rate. The effective average SOFR as of June 30, 2025, was 4.45%. Remaining 2025 loan maturities are manageable at $3.1 million.
Cash and liquidity As of the end of Q2 2025, the company had $6 million in cash and $25 million of availability under its line of credit.
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Gladstone Commercial (GOOD) Declares $0.10 Monthly Dividend with 10.66% Yield
- Monthly Dividend Declaration: Gladstone Commercial has declared a monthly dividend of $0.10 per share, consistent with previous distributions, reflecting the company's stable cash flow and shareholder return strategy.
- Yield Performance: The forward yield of 10.66% not only attracts income-seeking investors but also enhances the company's competitive position in the real estate investment trust market.
- Dividend Payment Schedule: The dividend is payable on January 30, with a record date of January 23 and an ex-dividend date of January 23, ensuring shareholders receive their returns promptly.
- Future Outlook: Gladstone Commercial plans to continue dividend payments on February 27 and March 31, demonstrating confidence in future cash flows and potentially encouraging long-term investment from shareholders.
Goodwood Inc. Reopens Fund for Redemptions and New Investments
- Fund Reopening: Goodwood Inc. announced that its capital fund will not proceed with termination and will reopen for redemptions and new investments, marking a commitment to investors and expected to restore liquidity and attract new investors.
- Asset Distribution: Approximately 82% of the fund's net asset value was distributed to unitholders during the previous termination vote, indicating challenges in asset management with the remaining assets being illiquid.
- New Investment Strategy: Nour Private Wealth Inc. will be appointed as the sub-adviser for the fund, responsible for the investment program, ensuring adherence to investment objectives upon reopening.
- Regulatory Support: The fund has obtained exemptive relief from the Ontario Securities Commission to allow holding over 15% of illiquid assets, ensuring compliance with regulatory requirements during the reopening process.
