EXHIBIT 99.1

Gladstone Commercial Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2009

  • Revenue for the fourth quarter and full year 2009 of approximately $10.6 million and $42.6 million, respectively.
  • Funds from operations ("FFO") for the fourth quarter and full year 2009 of approximately $3.4 million and $13.5 million, respectively and net income for the fourth quarter and full year 2009 of approximately $1.1 million and $4.6 million, respectively.
  • All properties remain 100% leased and paying as agreed.

MCLEAN, Va., Feb. 24, 2010 (GLOBE NEWSWIRE) -- Gladstone Commercial Corp. (Nasdaq:GOOD) (the "Company") today reported financial results for the quarter and year ended December 31, 2009. A description of FFO, a relative non–GAAP (generally accepted accounting principles in the United States) financial measure, is located at the end of this news release. All per share references are to fully-diluted weighted average common shares, unless otherwise noted.

FFO for the three months ended December 31, 2009 was approximately $3.4 million, or $0.39 per share, which remained constant as compared to the same period one year ago. FFO for the year ended December 31, 2009 was approximately $13.5 million, or $1.58 per share, which also remained constant as compared to the same period one year ago. The Company's results reflect an increase in rental revenues as a result of acquisitions completed during 2008 that were held for the full period in 2009, partially offset by an increase in legal and other professional fees relating to ongoing lease renegotiations and reviews of legal work with existing tenants, coupled with increased interest expenses due to a larger number of properties which had long-term financing during 2009. The amount of the incentive fee paid to the Company's external adviser, Gladstone Management Corporation (the "Adviser"), increased during the three months and year ended December 31, 2009, as compared to the same periods in 2008, as a result of the increase in revenues, coupled with a reduction in the voluntary waiver issued by the Adviser. 

Net income available to common stockholders for the three months and year ended December 31, 2009 was approximately $94,000 and $509,000, or $0.01 per share and $0.06 per share, respectively, compared to approximately $111,000 and $819,000, or $0.01 per share and $0.10 per share, respectively, for the same periods one year ago.   A reconciliation of net income, which the Company believes is the most directly comparable GAAP measure to FFO, is set forth below:  

  For the three months ended December 31, 2009 For the three months ended December 31, 2008 Year Ended December 31, 2009 Year Ended December 31, 2008
         
         
Net income   $ 1,117,553  $ 1,135,241  $ 4,603,048  $ 4,912,947
Less: Distributions attributable to preferred stock  (1,023,439)  (1,023,439)  (4,093,750)  (4,093,750)
Net income available to common stockholders  94,114  111,802  509,298  819,197
         
Add: Real estate depreciation and amortization, including discontinued operations  3,286,133  3,268,961  13,171,703  12,704,641
Less: Gain on sale of real estate  --  --  (160,038)  --
FFO available to common stockholders  $ 3,380,247  $ 3,380,763  $ 13,520,963  $ 13,523,838
         
Weighted average shares outstanding - basic & diluted  8,563,264  8,564,807  8,563,264  8,565,149
         
Basic & diluted net income per weighted average common share   $ 0.01  $ 0.01  $ 0.06  $ 0.10
Basic & diluted FFO per weighted average common share  $ 0.39  $ 0.39  $ 1.58  $ 1.58

At December 31, 2009, the Company owned 64 properties totaling approximately 6.3 million square feet, and had one mortgage loan outstanding for a total net investment of approximately $394.8 million. Currently, all of the Company's properties are fully leased and all of its tenants and its borrower are current and paying in accordance with their leases and loan.

The Company has $48.0 million of balloon principal payments due under one of its long-term mortgages in 2010, however the mortgage has three annual extension options through 2013, which the Company currently intends to exercise.  The Company has no other balloon principal payments due under any of its mortgages until 2013.

The Company's line of credit matures in December 2010 and we intend to negotiate a renewal of the facility or find replacement financing for the line of credit during 2010.

The Company has three leases that expire in 2010, which total approximately 3.4% of total annualized rental income. The Company has been notified that two of the tenants under these leases, totaling approximately 2.6% of total annualized rental income, will not renew. The Company is currently seeking new tenants for these two properties and is hopeful that it will re-lease these properties in the near future.

Highlights of 2009, the Company:

  • Sold its property located in Norfolk, Virginia for $1.15 million, for a gain on the sale of approximately $160,000 and an exit internal rate of return of 11.37%. The proceeds from the sale were used to pay down borrowings on its line of credit;
  • Extended the terms of the lease on its property located in Eatontown, New Jersey until 2024 and on one of its leases on its property located in Akron, Ohio until 2015; and
  • Paid monthly cash distributions for the year totaling $1.50 per share on the common stock, $1.94 per share on the Series A Preferred Stock, and $1.88 per share on the Series B Preferred Stock during 2009. Approximately 94% of the common stock distributions paid in 2009 were deemed a return of capital.

"We maintained a conservative acquisition pace in past years and executed thorough due diligence processes, and as a result we are benefiting today, as all of our properties remain fully leased and all of our tenants and borrower are current and paying as agreed," said Chip Stelljes, President and Chief Investment Officer. "We continue to review and consider extensions of some existing leases in cases where we believe a modification will add value for our stockholders. We are also selectively making capital improvements to certain of our properties. During 2009, we remained on the sidelines, preferring to avoid the market's unprecedented economic headwinds to focus on adding value to our existing portfolio. Our patience has paid off as we are seeing improved pricing returning to certain markets. We are currently reviewing several potential acquisitions and are considering raising additional equity and mortgage debt during 2010 to grow our portfolio."

Subsequent to quarter end, the Company:

Declared monthly cash distributions of $0.125 per share on the common stock, $0.1614583 per share on the Series A Preferred Stock, and $0.15625 per share on the Series B Preferred Stock, for each of the months of January, February and March 2010. 

The financial statements attached below are without footnotes so readers should obtain and carefully review the Company's Form 10-K for the year ended December 31, 2009, including the footnotes to the financial statements contained therein. The Company has filed the Form 10-K today with the Securities and Exchange Commission ("SEC") and the Form 10-K can be retrieved from the SEC's website at www.sec.gov or the Company's website at www.GladstoneCommercial.com. 

The Company will hold a conference call on Thursday, February 25, 2010 at 8:30 a.m. ET to discuss its earnings results. Please call (877) 407-8031 to enter the conference.  An operator will monitor the call and set a queue for the questions.

The conference call replay will be available two hours after the call and will be available through March 25, 2010. To hear the replay, please dial (877) 660-6853, access playback account 286 and use ID code 342047.

The live audio broadcast of Gladstone Commercial's quarterly conference call will be available online at www.GladstoneCommercial.com and www.investorcalendar.com. The event will be archived and available for replay on the Company's website through May 25, 2010.

Gladstone Commercial Corporation is a publicly traded real estate investment trust ("REIT") that focuses on investing in and owning triple-net leased industrial and commercial real estate properties and selectively making long-term mortgage loans. Additional information can be found at www.GladstoneCommercial.com.

For further information, contact Investor Relations at 703-287-5839.

NON-GAAP FINANCIAL MEASURE - FFO

The National Association of Real Estate Investment Trusts ("NAREIT") developed FFO as a relative non-GAAP supplemental measure of operating performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO, as defined by NAREIT, is net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. FFO does not represent cash flows from operating activities determined in accordance with GAAP and should not be considered an alternative to net income as an indication of the Company's performance or to cash flow from operations as a measure of liquidity or ability to make distributions. The Company believes that FFO per share provides investors with a further context for evaluating the Company's financial performance and as a supplemental measure to compare the Company to other REITs; however, comparisons of the Company's FFO to the FFO of other REITs may not necessarily be meaningful due to potential differences in the application of the NAREIT definition used by such other REITs. To learn more about FFO please refer to the Form 10-K for the year ended December 31, 2009, as filed with the SEC today.

The statements in this press release regarding the Company's ability to renew its line of credit or obtain replacement financing for the line of credit, the extension of the maturity of any of its long-term mortgages, future growth in the Company's portfolio and FFO, plans to renegotiate leases and make capital improvements to certain of the Company's properties,  and the Company's ability to raise capital are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on the Company's current plans that are believed to be reasonable as of the date of this press release. Factors that may cause actual results to differ materially from these forward-looking statements include, among others, the results of appraisals of its properties at the time of extension of its line of credit, its ability to raise capital, the duration of, or further downturns in, the current economic environment, the performance of its tenants and borrower and significant changes in interest rates. Additional factors that could cause actual results to differ materially from those stated or implied by the Company's forward-looking statements are disclosed under the caption "Risk factors" of the Company's Form 10-K for the fiscal year ended December 31, 2009, as filed with the SEC on February 24, 2010. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Gladstone Commercial Corporation
Consolidated Balance Sheets
     
  December 31, 2009 December 31, 2008
     
ASSETS    
Real estate, at cost  $ 390,753,892  $ 390,562,138
Less: accumulated depreciation  34,111,952  24,757,576
Total real estate, net  356,641,940  365,804,562
     
Lease intangibles, net   28,177,461  31,533,843
Mortgage note receivable  10,000,000  10,000,000
Cash and cash equivalents   3,096,598  4,503,578
Restricted cash  2,633,538  2,677,561
Funds held in escrow  2,487,680  2,150,919
Deferred rent receivable  8,975,196  7,228,811
Deferred financing costs, net   3,136,055  4,383,446
Due from adviser   --  108,898
Prepaid expenses and other assets  1,716,905  707,167
     
TOTAL ASSETS  $ 416,865,373  $ 429,098,785
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
LIABILITIES    
Mortgage notes payable  $ 252,761,651  $ 255,111,173
Short-term loan and borrowings under line of credit  33,200,000  31,500,000
Deferred rent liability  3,213,195  3,147,472
Asset retirement obligation liability  2,305,644  2,190,192
Accounts payable and accrued expenses  2,086,741  2,673,787
Due to adviser   1,213,640  --
Obligation under capital lease  247,686  235,378
Rent received in advance, security deposits and funds held in escrow  3,386,274  3,745,523
     
Total Liabilities  298,414,831  298,603,525
     
STOCKHOLDERS' EQUITY    
Redeemable preferred stock, $0.001 par value; $25 liquidation preference;     
  2,300,000 shares authorized and 2,150,000 shares issued and outstanding  2,150  2,150
Common stock, $0.001 par value, 47,700,000 shares authorized and 8,563,264    
  shares issued and outstanding  8,563  8,563
Additional paid in capital  170,622,581  170,622,581
Notes receivable - employees  (2,304,999)  (2,595,886)
Distributions in excess of accumulated earnings  (49,877,753)  (37,542,148)
     
Total Stockholders' Equity  118,450,542  130,495,260
     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 416,865,373  $ 429,098,785
Gladstone Commercial Corporation
Consolidated Statements of Operations
         
  For the three 
months ended 
December 31, 2009
For the three 
months ended 
September 30, 2009
For the three 
months ended
June 30,
2009
For the three
months ended
March 31, 2009
         
Operating revenues        
Rental income  $ 10,363,559  $ 10,383,002  $ 10,379,172  $ 10,388,244
Interest income from mortgage notes receivable  191,667  191,667  189,583  187,500
Tenant recovery revenue  86,952  82,425  82,734  82,432
Total operating revenues  10,642,178  10,657,094  10,651,489  10,658,176
         
Operating expenses        
Depreciation and amortization  3,286,133  3,284,723  3,282,629  3,307,802
Property operating expenses  227,986  219,537  230,785  236,812
Due diligence expense  24,141  --   6,886  9,547
Base management fee  328,361  342,743  357,650  372,648
Incentive fee  804,689  835,003  812,653  786,289
Administration fee  241,059  293,075  257,207  224,354
Professional fees  183,035  105,368  125,965  235,198
Insurance  56,122  50,757  48,125  48,678
Directors fees  49,335  49,459  50,386  49,702
Stockholder related expenses  31,354  32,914  88,245  83,647
Asset retirement obligation expense  36,646  36,060  35,476  34,907
General and administrative  17,241  19,643  15,453  10,549
Total operating expenses before credit from Adviser  5,286,102  5,269,282  5,311,460  5,400,133
         
Credit to incentive fee  (161,480)  (200,264)  (129,623)  (235,081)
Total operating expenses   5,124,622  5,069,018  5,181,837  5,165,052
         
Other expense        
Interest income from temporary investments  2,759  524  184  17,281
Interest income - employee loans  46,472  48,130  48,862  48,886
Other income   1,658  --   11,320  -- 
Interest expense  (4,451,130)  (4,521,848)  (4,433,998)  (4,487,560)
Total other expense  (4,400,241)  (4,473,194)  (4,373,632)  (4,421,393)
         
Income from continuing operations  1,117,315  1,114,882  1,096,020  1,071,731
         
Discontinued operations        
Income from discontinued operations  238  4,070  20,916  17,838
Gain on sale of real estate  --  160,038  --  --
Total discontinued operations  238  164,108  20,916  17,838
         
Net income  1,117,553  1,278,990  1,116,936  1,089,569
         
Distributions attributable to preferred stock  (1,023,439)  (1,023,437)  (1,023,437)  (1,023,437)
         
Net income available to common stockholders  $ 94,114  $ 255,553  $ 93,499  $ 66,132
         
Earnings per weighted average common share - basic & diluted        
Income from continuing operations (net of distributions attributable to preferred stock)  $ 0.01  $ 0.01  $ 0.01  $ 0.01
Discontinued operations  0.00  0.02  0.00  0.00
         
Net income available to common stockholders  $ 0.01  $ 0.03  $ 0.01  $ 0.01
         
Weighted average shares outstanding        
Basic & Diluted 8,563,264 8,563,264 8,563,264 8,563,264
Gladstone Commercial Corporation
Consolidated Statements of Operations
       
  For the year ended December 31,
  2009 2008 2007
Operating revenues      
Rental income  $ 41,513,977  $ 39,572,287  $ 31,365,796
Interest income from mortgage note receivable  760,417  898,573  1,013,889
Tenant recovery revenue  334,543  336,637  310,353
Total operating revenues  42,608,937  40,807,497  32,690,038
       
Operating expenses      
Depreciation and amortization  13,161,287  12,679,437  10,503,258
Property operating expenses  915,120  875,850  798,939
Due diligence expense  40,574  1,176,379  20,968
Base management fee  1,401,402  1,637,851  1,858,120
Incentive fee   3,238,634  2,831,722  2,564,365
Administration fee  1,015,695  954,635  837,898
Professional fees  649,566  521,410  625,349
Insurance  203,682  173,414  214,141
Directors fees  198,882  216,851  229,000
Stockholder related expenses  236,160  298,384  244,629
Asset retirement obligation expense  143,089  131,472  114,821
General and administrative  62,886  63,263  101,539
Total operating expenses before credit from Adviser  21,266,977  21,560,668  18,113,027
       
Credit to incentive fee   (726,448)  (2,196,945)  (2,321,597)
Total operating expenses   20,540,529  19,363,723  15,791,430
       
Other income (expense)      
Interest income from temporary investments  20,748  21,844  354,249
Interest income - employee loans  192,350  202,097  222,051
Other income   12,978  63,993  47,847
Interest expense  (17,894,536)  (16,858,687)  (11,564,541)
Total other expense  (17,668,460)  (16,570,753)  (10,940,394)
       
Income from continuing operations  4,399,948  4,873,021  5,958,214
       
Discontinued operations      
Income from discontinued operations  43,062  39,926  69,989
Net realized income from foreign currency transactions  --  --  33,359
Gain on sale of real estate  160,038  --  --
Taxes refunded on sale of real estate  --  --  78,667
Total discontinued operations  203,100  39,926  182,015
       
Net income  4,603,048  4,912,947  6,140,229
       
Distributions attributable to preferred stock  (4,093,750)  (4,093,750)  (4,093,750)
       
Net income available to common stockholders  $ 509,298  $ 819,197  $ 2,046,479
       
Earnings per weighted average common share - basic & diluted      
Income from continuing operations (net of distributions attributable to preferred stock)  $ 0.04  $ 0.09  $ 0.22
Discontinued operations  0.02  0.01  0.02
       
Net income available to common stockholders  $ 0.06  $ 0.10  $ 0.24
       
Weighted average shares outstanding- basic & diluted 8,563,264 8,565,149 8,565,264
Gladstone Commercial Corporation
Consolidated Statements of Cash Flows
       
  For the year ended December 31,
  2009 2008 2007
       
Cash flows from operating activities:      
  Net income   $ 4,603,048  $ 4,912,947  $ 6,140,229
Adjustments to reconcile net income to net cash       
  provided by operating activities:      
Depreciation and amortization, including discontinued operations  13,171,703  12,704,641  10,528,458
Amortization of deferred financing costs  1,491,389  1,283,956  717,195
Amortization of deferred rent asset and liability, net  (532,068)  (532,066)  (532,068)
Accretion of obligation under capital lease  12,309  10,311  --
Asset retirement obligation expense, including discontinued operations  143,550  133,244  116,478
Gain on sale of real estate  (160,038)  --  --
(Increase) decrease in prepaid expenses and other assets  (959,738)  172,096  64,990
Increase in deferred rent receivable and deferred rent liability, net  (1,177,167)  (2,387,509)  (1,741,016)
Increase in accounts payable, accrued expenses, and amount due adviser  735,492  1,001,639  625,398
(Decrease) increase in rent received in advance   (315,223)  275,916  176,145
Net cash provided by operating activities  17,013,257  17,575,175  16,095,809
       
Cash flows from investing activities:      
Real estate investments  (1,139,711)  (49,359,852)  (105,599,587)
Leasing commissions paid  (441,745)  --  --
Proceeds from sale of real estate  1,089,269  --  --
Receipts from lenders for reserves held in escrow  1,465,133  874,227  1,603,309
Payments to lenders for reserves held in escrow  (1,801,894)  (1,623,452)  (1,369,186)
Decrease (increase) in restricted cash  44,023  (763,494)  (688,905)
Deposits on future acquisitions  (250,000)  (1,650,000)  (2,110,000)
Deposits refunded or applied against real estate investments  200,000  1,750,000  2,110,000
Net cash used in investing activities  (834,925)  (50,772,571)  (106,054,369)
       
Cash flows from financing activities:      
Borrowings under mortgage notes payable  --  48,015,000  48,521,690
Principal repayments on mortgage notes payable  (2,349,522)  (1,485,901)  (895,657)
Principal repayments on employee notes receivable   290,887  155,637  431,399
Borrowings from line of credit  57,600,000  76,900,000  65,500,000
Repayments on line of credit  (35,900,000)  (69,800,000)  (41,100,000)
Repayment of short-term loan  (20,000,000)  --  --
Receipts from tenants for reserves  4,454,102  2,391,360  2,023,019
Payments to tenants from reserves  (4,526,409)  (2,159,671)  (1,710,685)
Increase in security deposits  28,282  531,806  376,572
Payments for deferred financing costs  (243,999)  (1,262,273)  (1,409,320)
Distributions paid for common and preferred  (16,938,653)  (16,941,392)  (16,427,736)
Net cash (used in) provided by financing activities  (17,585,312)  36,344,566  55,309,282
       
Net (decrease) increase in cash and cash equivalents  (1,406,980)  3,147,170  (34,649,278)
       
Cash and cash equivalents, beginning of year  4,503,578  1,356,408  36,005,686
       
Cash and cash equivalents, end of year  $ 3,096,598  $ 4,503,578  $ 1,356,408
       
Cash paid during year for interest  $ 16,558,955  $ 14,337,944  $ 10,693,440
       
NON-CASH OPERATING, INVESTING AND FINANCING INFORMATION      
       
Additions to real estate included in accounts payable, accrued expenses, and amount due adviser  $ --  $ --  $ 81,400
       
Increase in asset retirement obligation  $ --  $ 245,196  $ 180,458
       
Fixed rate debt assumed in connection with acquisitions  $ --  $ 6,461,603  $ 4,506,689
       
Obligation under capital lease  $ --  $ 225,068  $ --
       
Forfeiture of common stock in satisfaction of employee note receivable  $ --  $ 18,400  $ --
       
Reclassificaton of principal on employee note   $ 245,000  $ --  $ --
CONTACT:  Gladstone Commercial Corporation
          Investor Relations
          703-287-5839

The following information was filed by Gladstone Commercial Corp (GOOD) on Wednesday, February 24, 2010 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

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Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

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Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

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