Benzinga | Oct 21, 2020 04:32PM EDT

Gladstone Commercial Says ~99% Of Oct. Cash Base Rent Has Been Paid And Collected; Says Has Over $30M In Available Liquidity Via Revolving Credit Facility And Cash On Hand

MCLEAN, VA / ACCESSWIRE / October 21, 2020 / Gladstone Commercial Corporation (NASDAQ:GOOD) ("we" or "Gladstone Commercial") is a real estate investment trust focused on acquiring, owning and operating net leased industrial and office properties across the United States. We are providing the following business update regarding the portfolio performance during the time of market volatility related to, among other factors, the global COVID-19 pandemic.

* Approximately 99% of October cash base rent has been paid and collected. October rental collections remain consistent with 99% of third quarter cash base rents that were paid and collected and 98% of second quarter cash base rents that were paid and collected. The remaining 1-2% of cash base rents are associated with the previously agreed upon deferral agreements. All deferred amounts are to be paid back by the respective tenants commencing in July 2020 and ending in March 2021. Portfolio occupancy is in excess of 95% as of October 21, 2020.

* We continue to execute our growth strategy. On October 14, 2020, we announced the acquisition of a 240,714 square foot rail served manufacturing center in Montgomery, Alabama, for $14.25 million. The property is 100% leased by WestRock CP, a wholly owned subsidiary of worldwide corrugated solutions leader WestRock Company (NYSE:WRK), which guarantees the lease. The property was originally constructed as a build-to-suit for Westrock and currently has 7.2 years of remaining lease term. The GAAP capitalization rate on the investment is 7.3%. Since January 1, 2019 we have acquired $225.9 million of industrial properties, consistent with our stated goal of increasing our allocation of industrial investments.

* We have continued to raise additional capital through our at-the-market programs to fund acquisitions and operating needs. Since July 1, 2020 we have issued 282,000 shares of common stock for net proceeds of $5.2 million and 180,000 shares of Series E perpetual preferred stock for net proceeds of $4.3 million.

* We continue to have ample liquidity and a strong capital structure. As of October 21, 2020, our current available liquidity is in excess of $30 million via our revolving credit facility and cash on hand.

We may receive additional rent relief requests during the COVID-19 pandemic. However, we are unable to quantify the outcomes of potential future negotiation of relief packages, the success of any tenant's financial prospects or the amount of relief requests that we will ultimately receive or grant.