Exhibit 99.1
Gladstone Commercial Announces the Financial Results
for Its Initial Quarter Since Its IPO in August 2003
MCLEAN, Va., Nov. 10 /PRNewswire-FirstCall/ -- Gladstone Commercial Corp.
(Nasdaq: GOOD) (the "Company") released financials for the quarter ended
September 30, 2003. The Company is a newly formed REIT that had its initial
public offering on August 13, 2003. The Company had no investments at
September 30, 2003, due to the limited amount of time between the commencement
of operations in August 2003 and the quarter ended September 30, 2003.
Since the Company is a newly formed REIT, most of its expenses for the
quarter were start-up related, leading to a net loss of $104,208. Basic and
diluted loss per weighted-average common share was $0.03. Total assets were
$105,159,489 and consisted mainly of cash and cash equivalents.
"Net loss for the quarter ended September 30, 2003 was expected because we
are a start-up and are beginning to deploy the capital. The Company has agreed
to buy $11.8 million in real estate and we are seeing significant amounts of
deal flow," said a spokesperson for the Company. "We believe we will show a
good number of closings for the quarter ending December 31, 2003. We are
getting strong interest in our sale and lease back proposals. We think the
Company will meet its objectives of being fully invested in 18 months. Each of
the transactions we are considering is subject to the successful completion of
our due diligence and there can be no guarantee that we will be able to close
any of these transactions."
The attached financial statements are without footnotes so readers should
obtain and carefully review our Form 10-Q for the quarter ended September 30,
2003, including the footnotes to the financial statements contained therein.
We have filed this Form 10-Q today with the Securities and Exchange Commission
('SEC') which can be retrieved at the SEC website at www.SEC.gov or the web
site for Gladstone Commercial at www.GladstoneCommercial.com. A paper copy
can be obtained by writing to us at 1616 Anderson Road, McLean, VA 22102.
Gladstone Commercial will have a conference call at 10:30am EST, November
14, 2003. Please call 1-888-614-6576 and use the ID code 319797 and you will
be placed on hold until the conference starts. An operator will monitor the
call and set a queue for the questions. The replay number will be available
two hours after the end of the call for approximately 30 days. The replay
number is 1-800-615-3210 and use ID code 319797.
For further information contact Harry Brill or Skye Breeden at
703-286-7000.
This press release may include statements that may constitute "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, including statements with regard to the future performance of the
company and the closing of any transaction. Words such as "believes,"
"expects," "projects" and "future" or similar expressions are intended to
identify forward-looking statements. 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 the company's actual results,
levels of activity, performance or achievements to be materially different
from any future results, levels of activity, performance or achievements
expressed or implied by such forward-looking statements include, among others,
those factors listed under the caption "Risk factors" of the company's
prospectus, dated August 12, 2003, as filed with the Securities and Exchange
Commission on August 13, 2003. 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
(Unaudited)
September 30, June 30,
2003 2003
ASSETS
Cash and cash equivalents $104,892,431 $29,615
Prepaid assets 267,058 -
Deferred offering costs - 298,815
Total Assets $105,159,489 $328,430
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Due to Adviser $41,203 $-
Accounts payable - 287,084
Total liabilities 41,203 287,084
Stockholders' Equity
Common stock, $0.001 par value,
20,000,000 shares authorized,
7,642,000 and 52,000 shares issued
and outstanding, respectively 7,642 52
Additional paid-in capital 105,225,506 51,948
Retained deficit (114,862) (10,654)
Total Stockholders' Equity 105,118,286 41,346
Total Liabilities and
Stockholders' Equity $105,159,489 $328,430
Gladstone Commercial Corporation
Consolidated Statements of Operations
(Unaudited)
For the Period
For the three February 14, 2003
months ended (Inception) to
September 30, September 30,
2003 2003
OPERATING REVENUES: $- $-
OPERATING EXPENSES:
Management advisory fee 124,096 124,096
Insurance 50,506 50,506
Directors fees 12,333 12,333
Professional fees 5,000 10,000
Organizational costs - 5,549
General and administrative 3,805 3,910
Total expenses from operations 195,740 206,394
Net loss from operations (195,740) (206,394)
INTEREST INCOME 91,532 91,532
NET LOSS $(104,208) $(114,862)
Basic and diluted loss per share $(0.03) $(0.08)
Weighted average basic and diluted
shares outstanding 3,547,297 1,448,482
Gladstone Commercial Corporation
Consolidated Statement of Cash Flows
For the Period February 14, 2003
(Inception) to September 30, 2003
(Unaudited)
Cash flows from operating activities:
Net loss $(114,862)
Increase in prepaid expenses (267,058)
Increase in due to Adviser 41,203
Net cash used by operating activities (340,717)
Cash flow from financing activities:
Proceeds from share issuance, net 105,233,148
Net increase in cash and cash equivalents 104,892,431
Cash and cash equivalents, beginning of period -
Cash and cash equivalents, end of period $104,892,431
SOURCE Gladstone Commercial Corporation
-0- 11/10/2003
/CONTACT: Harry Brill or Skye Breeden of Gladstone Commercial
Corporation, +1-703-286-7000/
/Web site: http://www.gladstonecommercial.com/
(GOOD)
CO: Gladstone Commercial Corporation
ST: Virginia
IN: FIN RLT
SU: ERN CCA