Exhibit 99.1
Gladstone Commercial Announces the Financial Results
for the Period Ended February 14, 2003 (inception)
Through December 31, 2003
MCLEAN, Va., March 10 /PRNewswire-FirstCall/ -- Gladstone Commercial Corp.
(Nasdaq: GOOD) (the "Company") announces financial results for the period from
February 14, 2003 (inception) through December 31, 2003. Net loss for the
period was $240,871 or $0.07 per basic and diluted weighted average common
share. Total assets were $105,061,370 and consisted mainly of cash and cash
equivalents but also included the Company's land and building assets for its
first sale-leaseback transaction which closed in December of 2003.
"Net loss was expected due to our limited amount of operating history for
the year and the expenses of our start up period before the public offering in
August of 2003," said a spokesperson. "Our deal flow is strong and we are
aggressively reviewing new investments. The market place has welcomed our
sale-leaseback transactions and mortgage loans. The first quarter ending
March 31, 2004 will show more positive growth."
The financial statements are without footnotes so readers should obtain
and carefully review our Form 10-K for the period ended December 31, 2003,
including the footnotes to the financial statements contained therein. We
have filed this Form 10-K 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 9:30am EST, March 11,
2004. Please call 1-800-784-9083 and use the ID code 410858 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- 888-266-2081 and use ID code 410858.
For further information contact Harry Brill or Skye Breeden at
703-286-7000.
Gladstone Commercial Corporation
Consolidated Balance Sheet
December 31,
2003
ASSETS
Real estate, net $5,436,153
Cash and cash equivalents 99,075,765
Prepaid assets 191,432
Lease intangibles, net of accumulated
amortization of $1,208 358,020
Total Assets $105,061,370
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Due to Adviser $234,295
Accounts payable -
Dividends payable 76,420
Total liabilities 310,715
Commitments and contingencies
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
Additional paid-in capital 105,060,304
Distributions in excess of accumulated earnings (76,420)
Retained deficit (240,871)
Total Stockholders' Equity 104,750,655
Total Liabilities and Stockholders' $105,061,370
Gladstone Commercial Corporation
Consolidated Statements of Operations
(Unaudited)
For the Period
February 14,
2003
(Inception) to
December 31,
2003
OPERATING REVENUES:
Rental income $12,180
OPERATING EXPENSES:
Management advisory fee 317,188
Insurance 111,240
Directors fees 35,667
Professional fees 39,511
Organizational costs 5,549
Depreciation and amortization 5,827
General and administrative 42,166
Total expenses from operations 557,148
Net loss from operations (544,968)
INTEREST INCOME 304,097
NET LOSS $(240,871)
Basic loss per share $(0.07)
Diluted loss per share $(0.07)
Weighted average shares
outstanding - basic 3,229,119
Weighted average shares
outstanding - diluted 3,257,420
Gladstone Commercial Corporation
Consolidated Statement of Cash Flows
For the Period
February 14, 2003
(Inception) to
December 31, 2003
(Unaudited)
Cash flows from operating activities:
Net loss $(240,871)
Adjustments to reconcile net income to
net cash used in operating activities:
Depreciation and amortization 5,827
Increase in prepaid expenses (191,432)
Increase in due to Adviser 234,295
Net cash used in operating activities (192,181)
Cash used in investing activities:
Real estate investment (5,800,000)
Cash flow from financing activities:
Proceeds from share issuance, net 105,067,946
Net increase in cash and cash equivalents 99,075,765
Cash and cash equivalents, beginning of period -
Cash and cash equivalents, end of period $99,075,765
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.
SOURCE Gladstone Commercial Corp.
-0- 03/10/2004
/CONTACT: Harry Brill or Skye Breeden of Gladstone Commercial Corp.,
+1-703-286-7000/
/Web site: http://www.gladstonecommercial.com/
(GOOD)
CO: Gladstone Commercial Corp.
ST: Virginia
IN: FIN RLT
SU: CCA ERN MAV