Exhibit 99.1
Gladstone Commercial Corporation Announces the Financial Results
for the First Quarter Ended March 31, 2004
MCLEAN, Va., May 10 /PRNewswire-FirstCall/ -- Gladstone Commercial Corp.
(Nasdaq: GOOD) (the "Company") announces financial results for the first
quarter ended March 31, 2004. Net loss for the period was $193,305 or $0.03
per basic and diluted weighted average common share compared to March 31, 2003
at $10,549 or $0.20 per basic and diluted weighted average common share. Our
initial public offering took place in August of 2003 and therefore, the
financial statements at March 31, 2003 are not an accurate basis for
comparison. Total assets were $105,658,571 for the first quarter ended March
31, 2004 as compared to $105,061,370 at fiscal year ended December 31, 2003.
Funds from operations (FFO) were a loss of $113,975 or $0.01 per diluted
weighted average common share for the quarter ended March 31, 2004.
"The first quarter shows a growing portfolio. We now own two leased
buildings and we have one mortgage loan outstanding as of the quarter end.
Since the quarter ended, we purchased one additional leased building for $9.3
million. We currently have a very strong backlog of investment opportunities
and are aggressively seeking to close many of those transactions for our
second quarter. Due to the good backlog, we are beginning our search for a
lender to provide us with a line of credit so that after we use the proceeds
from the initial public offering, we can borrow funds to continue buying
leased real estate. We are optimistic about the next six months."
The financial statements are without footnotes so readers should obtain
and carefully review our Form 10-Q for the period ended March 31, 2004,
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 11:30 am EDT, May 10,
2004. Please call 866-253-5757 and use the ID code 461640 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 888-266-2081 and use ID code 461640.
For further information contact Chief Financial Officer, Harry Brill or
Director of Shareholder Relations, Skye Breeden at 703-286-7000.
Gladstone Commercial Corporation
Consolidated Balance Sheet
(Unaudited)
March 31, December 31,
2004 2003
ASSETS
Real estate, net $9,020,410 $5,436,153
Mortgage note receivable 11,170,000 -
Cash and cash equivalents 84,667,117 99,075,765
Restricted deposits 205,508 -
Interest receivable - mortgage note 68,261 -
Deferred rent receivable 13,764 -
Prepaid expenses 150,812 191,432
Other assets 18,266 -
Lease intangibles, net of accumulated
amortization of $14,795 and $1,208,
respectively 344,433 358,020
Total Assets $105,658,571 $105,061,370
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Due to Adviser $590,410 $234,295
Accounts payable 24,161 -
Dividends payable 917,040 76,420
Accrued expenses 78,105 -
Restricted deposits 205,508 -
Rent received in advance and security
deposits 210,767 -
Total liabilities 2,025,991 310,715
Commitments and contingencies
Stockholders' Equity
Common stock, $0.001 par value,
20,000,000 shares authorized,
7,642,000 shares issued and
outstanding 7,642 7,642
Additional paid-in capital 105,052,574 105,060,304
Distributions in excess of
accumulated earnings (1,427,636) (317,291)
Total Stockholders' Equity 103,632,580 104,750,655
Total Liabilities and Stockholders'
Equity $105,658,571 $105,061,370
Gladstone Commercial Corporation
Consolidated Statements of Operations
(Unaudited)
For the Period
For the Three February 14, 2003
Months Ended (Inception) to
March 31, March 31,
2004 2003
OPERATING REVENUES:
Rental income $ 197,773 $ -
Interest income - mortgage 133,419
Total operating revenues 331,192
OPERATING EXPENSES:
Management advisory fee 229,416 -
Depreciation and amortization 79,330 -
General and administrative 388,213 10,549
Total expenses from operations 696,959 10,549
Net loss from operations (365,767) (10,549)
INTEREST INCOME - temporary
investments 172,462 -
NET LOSS $ (193,305) $ (10,549)
Basic loss per share $ (0.03) $ (0.20)
Diluted loss per share $ (0.03) $ (0.20)
Weighted average shares
outstanding - basic 7,642,000 52,000
Weighted average shares
outstanding - diluted 7,642,000 52,000
Gladstone Commercial Corporation
Consolidated Statement of Cash Flows For the Period
For the Three February 14, 2003
Months Ended (Inception) to
(Unaudited) March 31, March 31,
2004 2003
Cash flows from operating activities:
Net loss $(193,305) $(10,549)
Adjustments to reconcile net loss to
net cash provided by (used in)
operating activities:
Depreciation and amortization 79,330 -
Changes in assets and liabilities:
Increase in mortgage interest
receivable (68,261) -
Decrease in prepaid expenses 40,620 -
Increase in other assets (18,266) -
Increase in deferred rent receivable (13,764) -
Increase in due to Adviser 356,115 -
Increase in accounts payable 24,161 10,549
Increase in accrued expenses 78,105 -
Increase in rent received in advance
and security deposits 210,767 -
Net cash provided by operating
activities 495,502 -
Cash used in investing activities:
Real estate investment (3,650,000) -
Mortgage loan (11,170,000) -
Net cash used in investing activities (14,820,000) -
Cash flow from financing activities:
Proceeds from share issuance, net - 10,000
Offering costs (7,730) -
Dividends paid (76,420) -
Net cash (used in) provided by
financing activities (84,150) 10,000
Net (decrease) increase in cash and
cash equivalents (14,408,648) 10,000
Cash and cash equivalents, beginning
of period 99,075,765 -
Cash and cash equivalents, end of
period $84,667,117 $10,000
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 Corporation
-0- 05/10/2004
/CONTACT: Skye Breeden of Gladstone Commercial Corporation,
+1-703-286-7000/
/Web site: http://www.gladstonecommercial.com/
(GOOD)
CO: Gladstone Commercial Corporation
ST: Virginia
IN: RLT
SU: ERN CCA