GOOD Gladstone Commercial

David Gladstone Chairman and Chief Executive Officer
Michael LiCalsi General Counsel and Secretary
Bob Cutlip President
Mike Sodo Chief Financial Officer
Barry Oxford D.A. Davidson
Rob Stevenson Janney
Henry Coffey Wedbush
Brandon Travis Ladenburg Thalmann
Call transcript
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Good day, ladies and gentlemen and welcome to the Gladstone Commercial Corporation’s Second Quarter Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, today’s conference is being recorded. I would now like to turn the call over to Mr. David Gladstone. begin. may you Sir,

David Gladstone

if are and with We and you time DC you, had you area in we the in wish these have more Washington but with talk together on we to are welcome Thank ever enjoy this are everybody. area times we you Alright. the phone an your and called stop by to and suburb the outside see in got people invitation people Virginia, just about all Washington here. say open hello working DC, we have located McLean, so things the that you on have XX and

from LiCalsi regulatory serves especially matters. a and he President hear of will and the the is brief We the Secretary. this one announcement which Administration all Michael funds as our and General public make Counsel legal Gladstone also Michael? will administrator He some is regarding Michael to first. Gladstone

Michael LiCalsi

can of documents of publicly future be or we by new Exchange a Securities as whether that which those SEC’s the assets. real we forward-looking the under law. gains Thanks, these materially no on page website, cause to depreciation may XXXX revise or forward-looking on is discuss believe any except be and impairment different David forward-looking net losses and undertake excluding in any uncertainties course performance that certain include and from information, or statements Securities the Investor plans, as real Many current non-GAAP our losses the our or factors Those statements update funds these risk Today based the amortization XX-K of may FFO these of expressed good our involve Today’s risks to We of results other the income we from file and Act actual FFO, our reasonable. to forward-looking property, and or report future factors our statements, defined all any estate a Act of Relations otherwise, events results operations. of and implied be including found by XX-Q XXXX, on are obligation is the term estate morning. will the SEC. which regarding sale and including Forms is future result website, from which specifically accounting statements plus as on required with and

We believe and better our results operating discuss and other a which our that expenses e-mail to period-over-period of core once website, you will of up We also and service. indication generally Please certain comparability our again allows FFO, this visit notification FFO sign performance. we the for is revenues adjusted for is non-recurring better opportunity take ask

are handle Companies of our we can You The the keyword also on us there find also Gladstone Today’s there results. @gladstonecomps. is on call and Twitter, is the is Facebook, an overview

that ask the for of be XX-Q we release you which detailed review can more and Investor So, information. those found our our website. issued yesterday both Form on page Again, were Relations of press

to over Cutlip. President, back Gladstone Now, Bob? presentation I will Commercial’s turn the Bob

Bob Cutlip

Thanks morning, Mike. everyone. Good

our leverage Lake of a Salt entered City, plant market, Ohio Philadelphia, in and parking as Alabama. Ohio, the raising in volume mine, Orlando, rated And lease to construct you in in roadshow Mercedes-Benz investment, know, markets of acquisition companies. agreed property an this and property rental of Tampa X.X%, During our and invested non-core to four we past of industrial completed and modifications in an foot noteworthy foot through and at industrial additional term GAAP growth this X%. quarter X average held cap over facility following: week timeframe the of North recast, the were at expanded expanded Orlando, investors the of loan are of asset rate refinanced months $XXX the into of with for witnessed location analysts costs include in Houston, mortgages and we leases feet We non-deal square property $XX a to recycling rate completed second events tenants per Vance, capital at investment expand XXX,XXX and extended functions is negotiations exited grade our Columbus, extended tenant as recent up in grade entered management a acquisitions a or Columbus, tenants and term XXX,XXX lower and July, assembly maturing square Vance, lower at lease investment acquire XX% of office tenant rates. during their and our in part capital three square have and our lower tenants favorite the XX Alabama. revolver by We interest the These Springfield, XX,XXX The over XX our every in increase meetings million negotiations Raleigh, renewed, program, foot with lenders parent property million These significant Carolina Missouri, industrial with activity and or operations. Florida. and with improved square resulting in across contract acquisitions and properties

capital impacts team distribution, We that available can one cash to per and our of expect for were every to our And these FFO all on each positive across of availability these items achievements. functions conclude leverage. contributors member also have share,

since focused noted As have our been our metrics improving we first XXXX. financial on on call, quarter

capital $XXX doubled assets GAAP to tenant million our The throughout during accretive is each approximately we from payout and escalations, these acquired $XXX good vacant annual with of period investments characteristics operating this We volume is credit portfolio. news lease and XX% maintain to our expenses lower this security debt assets strength period. improve few a We FFO to average improving upon year-over-year. plus over of the are course of that commissions, were rate year leverage really to every and the our balance to that validate we remained years and $X.XX on and been our ranging These size with and profile ratio because significant worthy sheet has those that years lease million lease the occupancy leverage. high characteristics our notes. XX% on period payout X.X% as cash flow year-after-year. our considerable leasing increasing the from deleveraging. sheet lowered share of maturities, and to has XXXX, ratio During space trajectory improved of $X.XX annual mortgage activity and to required this expirations per we improvements, amounts resources average able personnel through fund as significant beginning equity actually the while XX cash of investment balance terms the growth Since significant equate the X and rate cap of of of The well

period and cash at the approaching rents our exceeding straight will at rent of rents also capital benefit position. line time from point or line to the continue working shareholders which our be are inflection are should year perspective. the these as to the GAAP leases the payout straight improve ratio X year approaching are the the leases We XX to This

by the second Looking rents basis rents cash XXXX second by same-store same-store X.X%, approximately X%. at as where ‘XX, to the increased increased quarter compared as quarter of GAAP of

to positive Our momentum for generate our management operations. continued investment in asset activities

in Columbus, going to XX a market million. $X.X and at in acquire final square the XXX,XXX X.X% industrial contract rates currently years. foot negotiation Ohio are GAAP the for are in and term X.X% We cap respectively, estimated property The lease

foot industrial XXX,XXX also square in our square to XX,XXX approximately by property expand negotiations are We Alabama Vance, in feet.

in property we As this you may recall, March. purchased

is benefits operations for a land shareholders. for acquired production our tenant have now and our are tenant to Our creates line the their to fortunate planning add we which to with expansion property current

just solidifying are approval XXX We and add are additional for increasing Springfield, car commitment rental their Market property Missouri our and to tenant comment. received spaces also to approximately plans income. thus worthy of finalizing conditions our in some parking jurisdictional

as reported types. in most team with The volume moving property past quarter investment risen for months. compared property in disconnect to listing broker advisory and noted Advisors, estate points industrial to basis Green XXXX exception properties to apparent witnessed And sectors and leased versus Street all of nominally XX lower XX approximately basis that sales rates national rates up quarter relationships. the higher the an of XX real experience the have markets. research interest our the be there communicated XXXX of was cap National buyer-seller with of points the and reduce appear opportunities several first four and months our first reported reflects that that firms research over during of the nominal suggested to firm course for XXXX is year by net our first slowly

the similar real sales capital significant interest behind information the sidelines XXXX XXXX are expectations available the investment really for in to U.S. that that still still with and in industry. be to considerable for on quite is healthy Now which is with estate volume

to Our team that will growth actively accretive investigate our and conditions market strategy. promote monitor opportunities measured continue

execution current XX about the set strategy. we and our next characteristics opportunities a address the pipeline our our for the operating pursuing, Before I comments are stage few helps months over which

of lease the We for occupied. we year balance no currently the XX% expirations and have are

have we of expiring. forecasted X.X% the XXXX, For rents

cash we our loan and growth flow $XX level. pursuing year, and our capital will be for both stable of a just properties our very and should XXXX addition, million per Therefore, In XXXX average maturities growing portfolio. same-store manageable in for have our available

increase opportunities of As have strategy, we on an listings it and in the relates noted to late. our as sales growth activity

Philadelphia, review. City $XXX City, Central million these of Kansas and total Columbus, this are are Of Phoenix, is due Salt candidates Lake Our the all acquisition stage which and of property Florida, Louisville, current the volume, industrial. balance diligence XX of in under is candidates which or of XX $XX Intent initial of properties, include Ohio, pipeline exceeds locations million target Houston, Denver, in Letter markets. The either

effort making allocation. a our industrial We are to increase conscious today

our that XX do appropriate that credit occupied ample above parking square several the properties, parking middle-market non-rated profile tenant With to XX we with larger the replacement capabilities. The and is costs well we properties larger strategy underwriting industrial feet capabilities XXX,XXX in believe size, in trading foot an for proven to heights in a XX,XXX heated with us. with and parks, are by tenants, is we are trailer clear but fully our underwrite properties in believe not focus for that competition developed markets, warehouse, can higher trailer clear larger heights

months summary, So XX second well opportunities. activities quarter credit us our positioned maturing facility, to our leasing growth and continued loans last in pursue acquisition and our and extended refinance success,

the Now, for let’s over financial results. on Mike to it report turn

Mike Sodo

available diluted will which weighted the the numbers first X as a per equates quarter common by were and I Good quarter share second I common to of the results per fully the per stockholders share FFO quarter. average reviewing based months compared second for to reference second are is for basis, All start morning. of our shares. $X.XX to on XXXX, $X.XX this operating FFO FFO share On core a over X% and increase. core additional year.

ended us the which is equates $X.XX over growth to that stockholders going share and near-term completed with anticipated June the meaningful is of recently additional this $X.XX core On accretive, to the per demonstrates help For compared has of share prudent available lease per share expirations, well FFO a as $X.XX performance Coupled respectively. X% X months XX, per the company common months as XXXX, as forward. to no this This FFO a yet increase first were portfolio. profitability increase. X core and in-place to performance continue the to the FFO basis,

million operating compared results reflected $XX.X an as million the in operating $XX.X total total for expenses quarter increase second period. to revenues Our of to

let’s and at our Now, capital take a debt structure. activity look

continue We our grow focus our sheet our and as decreasing balance on strong enhance we assets to leverage.

debt reduced refinancing financing XX% the XX% gross of new leverage under XXXX to to by debt beginning We maturing for acquisitions generally assets our lower and levels. have since at

decrease XX months. to to our the continue over next XX expect We gradually leverage to

level us at As with we we put proper lenders, leverage this discussed going investors the this forward believe long-term. and have analysts, will

debt acquisitions. make We primarily mortgage long-term continue to use to

through will property will with pool we additional grow we alternatives. time, our our As this disciplined look financing to high-quality investments, assets expand as increase unsecured Over well.

X.X% primarily sheet, As XX spread at $XX.X rates the interest our over variable months, we from LIBOR mortgages to long-term repaid manage the X-month new plus to balance past equal have debt of rate X.XX%. million a ranging with we

placed new caps have rate interest variable We mortgages. rate on all

flexibility in under disposition in We asset the provide also or of of advance properties to some an pool. credit unencumbered debt placement added whether increasing of these of our the permanent our to pool total future effort more size in line unencumbered our by

properties. balance into sheet, improve In the order equity often put additional to in refinance we have addition, our

As significantly excess mortgages enabled us million the to previously interest discussed, improved rates annually. of generally interest in and on our by this to reduce has helped leverage expense reducing obtain related $X.X thereby

seeing with the Looking Further, and extending to at XXXX subsequent to very profile, in quarter manageable and single and all-in manage our million of tenant’s improve depending loans profile on $XX debt high million the from refinances credit, in to type, maturing property only debt dates maturity quarter and after amount and maturities on maturing we X% mid $XX.X XXXX lease, less proactively during are on coming XXXX from XXXX terms XXXX liquidity acquisition end. to due any including two year until ranging from one continue the we mortgages than the have loan over our range. loan, the and to factors, new rates time terminal of location, generally leverage XXXX are several

to to XX% We interest caps. interest swaps fix rates, exposure through our with and rate of continue rising to existing or being rate minimize fixed hedged debt our

preferred issuing active Series have our stock our our D ATM in programs. common using both stock We somewhat remained and

the of stock. preferred quarter $X.X net and we issuance D million second of of stock million costs, $X.X and During raised Series common

we as compared in we liquidity when value raise stock we way and entered raise of relative as prices efficient ATM mind with capital. our While assessment the keep equity, our to to the of extremely determine view trading an continually continue as the common to year significant to

feel improvements As We that are enough posted any properties. financial our our encourage continue our metrics, liquidity of increase to improve executing in believe during credit. quarter. current you the we to for plan availability million under With million our business in XXXX supplement provides which our asset good fund more our high-quality information quarterly as have access the $XX operations, line we underwriting on and of to continue to and we upcoming $X financial and leverage. We to our our today, availability portfolio including of also properties detailed programs, cash review website known our current have base and of our we at remainder about ATM we

are and the but XX. not with forward and the investors, analysts, only new lease We chapter. loan next to potential to estate our active investor be credit June occupancy of on managers, heavily as high-quality has portfolio deployment with engaging existing expirations, along the have our strong and tenants. been banks its with Bob to very Institutional lenders with since of institutional on manageable minimal increased We real near-term strong acquisitions moves with of of look focused our credit will over maintaining I XX% forward ownership like. relationships coverage XXXX high maturities, real and estate, XX% current the with and capital stock base, focused also by in investment establishing over as our meeting beginning further company

to back turn David. will I it over Now,

David Gladstone

good is Good a Thank and good of Mike and Cutlip Mike. report along company. here from reports one you, clicking both at and Bob gave them LiCalsi, everything also

have spent of our We on working lot tenant time a base.

and there in we making our there every lease people made real their the loans been of because payment our mentioned, saying was didn’t out monthly quite world. to story. have also one some are stream closed to in banks deals Vance, coming we do Columbus, since easy and and such real and recession, In as REIT out mentioned As are this inception cut, of the there they have the that dividend on stockholders pundits during banks our Bob loans, get last problems to lowered estate in a that to will modifications, its that recession estate all Missouri many going distribution Springfield, with cash stop in have a one we some have doing Alabama. not success financial Ohio lot XXXX in. are Folks, are that the Hopefully, we that the are in

through us is go think a trouble you to there us good way. another times expect and can if So on any count recession, I in

any today. XXXX and are don’t a have in XXXX. due X% good coming in leases We position We than through less

low spending and expect new we So, risk improvements. on tenant low

refinance rates that doing of We and to similar due good rates to getting what coming are loans have. job continue or a good we

We have been which preferred Series more X% raising stock yield. is D, in the a

and had common We large helps work us shareholders. the that are to a way stock able our comes to in We put some buying institutions in past. the preferred that pay at

that it’s the very buying increase of pretty portfolio and in some today the list industrial interest have and to are of and have in office greater properties their common our Much acquiring, rents, of credit promising than kept that in ‘XX not in and be owned underwriting out of that company steady XX%. of know record tenants since them very marketplace, to tenants and am we July have Board as diversification all ours. and maintain at for will And is rate ones stock, September and and August the that company institutional we base today like good will of all. them are a is more before I of rents the We paying the REITs the distribution and much our terrific will XXXX that for be interested and industrial think And here acquisitions. that have the very of are remained attractive I like they we $X.XXX continue annual to properties year. of strong It long the are for REIT know track and properties group the bright. their that believe is most more by will and hit our you fine underwrites team that their the the we very potential paying diversification larger business company XX% as his quality we occupied and future well the for continue our rate a to many underwriting in rents have us considering be ‘XX the voted an is This team optimistic we $X.XX monthly you future. a at cautious I that’s in Bob a July, in managed comes

got we you running to excellent we I want for increase behind have cents, small share so and I the paid in distribution balance you a now know look And are going closer that have And closer that as us. sheets think you like and solid superb. in and to the increases I have of much we earnings the think decision. making know growing all yes to at are all expirations are we getting just we a we to increases, prospect individuals improved and I that some investments and hope the the and $X.XXX FFO will making when feel FFO dividend, are $X.XX noticed were out a about I are

in building stock for shelter the We opinion the those XX% this Depreciation standing paid the consecutive to because period. especially XXX the period seeking mainly back to who we is a will and year. FFO the of put come be of if depreciation end of I we and to tax you am and we can this return about estate friendly where much the depreciation always after at estate has is because core real have this bit through personal their the account capital building the tax a and why talk now are but depreciation of been adding distributions the in of not that’s you due out to earnings very those real in of that a last able cutting other return a my and and common year, put went the capital estate remain still it FFO fiction income doesn’t in any has are items the income stock that’s sure we want depreciated about was of depreciation. do of and cash low free. to since company This without recession is real is caused and depreciation

on it So you if in an sheltered the that by non-retirement the and the that’s to you depreciation. IRA part plan account opposed having as the own don’t retirement or stock pay tax

However, increase the your to a reduced base you comes capital to so you you your to when want are that had capital a have supposed that and stock. pay base tax sell higher day

going know, are stock Many now of about Currently X% we we no the in lower sell REITs in stock $XX.XX, company. distribution yield on As is and great trading yield are one have X.X%. the the at that there all to this a is of the to out X% price range. the much yields trading

think lot wonderful I so is one And I new want and those those thing hit our every betting stock assuming that. the looking that at there, would I I that and some X must Henry And a and we I wrote I report a he guess nice our And He will a data. as tenants pencil follows on yield underwrite the on the track a the price shares time we next will are Wedbush. down more touch continue make. there. knows loans at and are investments to Henry how like saying years on and Coffey going my our the by turnover because per good from development investors doing by and of have company trading know is to be portfolio area. and on job to am of forecast got us. people is we he be company stock share So if about stock the to discover go was be that REITs was a business up for Henry $XX knows other record, of this where us noted picked us increase just built

is a at the U.S. looks study management. revenues. almost the REITs at the of we of hammering are are REITs of always total G&A out lowest us There terms about compared and XXX G&A in external in to that You

cost XX cost compared number the we the to lowest average number there. out of operate for six are all at the XXX all are we XXX we when to are look lowest REITs G&A assets operating you out We on Also XXth G&A G&A the of of are six so the meaning list, REITs there.

I we this crowd put that being bad in have to there managed. was have think but the we we are voice bed So discussion demonstrated leverage. there, should externally about some Yes, past not our that decreasing and part been of

currently, don’t course, have are now, look of putting that If that I around but our more at conservative equity, use compared refinance been equity XX%, was down when if we are amount We the leverage to our portfolio. our the risk quite to now the know I end mortgages. lower current of we the what is debt want out we you at

that mortgages the make knows have a that are do just our regarding to exculpatory shot balance look have want the of I our everyone to I to have So sure we property. most their not at sheet. debt, lenders

operator questions out is in now ratio on we try let’s have answer some for terms debt our only equity, of So, strong everyone come and for questions have ask safety a stockholders. those company Well, not we and there. feature our to to will the


our question Barry from Oxford [Operator Instructions] you. with Thank will D.A. And come Davidson. first

line Your open. is

Barry Oxford

at equivalents expiring XX% once you look of in you many look or X of don’t kind X.X more X.X when a have there you leases acquisitions going maybe where Hey, and value-added doing that? it like fact at have lease in building ‘XX be, out come Real would say, and leased then Great. and quick, XXXX, much. add in the value might you or you given let’s kind that the X, but you guys so opportunities something in, guys. you to up and Thanks

Bob Cutlip

question. good Very

as in property buy We properties change industrial variation in year-over-year want occupied, send model. because multitenant know we a not and buying could us are the really XX% measured and would below we that we operator. net place, want cash bit model anchored office but growth, slow but of done have is to you a are as side we that sense, is typically doesn’t for What for We what we the on signal it as as do XX% be our the a don’t growing low have don’t to that it done we both make would lease investors. we to and the a are go

Barry Oxford

Right, got guys. Thanks it.

David Gladstone

Next please. question


Our next with Rob question from Janney. Stevenson comes

line Your open. is

Rob Stevenson

at Couple is the dividend, that morning, about for sort process unforeseen how your guys. are of the the in increase to dividend on ‘XX barring a that earnings Good trend table moving for comments now, me. that, thinking the about given David, thought point? anything is this is modest the board

David Gladstone


Rob Stevenson

assets? of Okay. in One industrial for you, roughly sort the what’s pipeline Bob office terms and between of the mix today on the acquisition side,

Bob Cutlip

week, accretive. XX feet that trailer course, are well rear-loaders probably XX but they feet our are X Last really in one with facilities, XXX,XXX I I Their am that Their above our margin this cap feet. feet square about toward the I indicated last and competing not Xs not talking but to Quite square – say deep, where in and feet, most – cost. we in we and in are the seeing pipeline the leader, be what they industrial, trading XXX,XXX and on we are more as as rate relationships his are ranging do because must the through XXX White that’s I Xs, let’s large million under good and of friends Andrew are are admit about. be anywhere to and can of going we are went low they we us we Xs, a look add we square up, probably West put those frankly, I time. XX,XXX the really City of boxes to when got to Salt XXX going the not replacement X clear, are can so call, would are properties we broker was at high I those us like know region about say, are from Lake competing we mid seeing over a damage square many compete can several where together are rear and be exactly days, to it these you footers, load

Rob Stevenson

of Great in to now office our portfolio? industrial show

Bob Cutlip

industrial. XX%

Mike Sodo

Yes, third. Yes, high candidly, and retail level of office. two-thirds, X% of it’s about one the mean, medical I

Rob Stevenson

I Good to like industrial more would see number. too.

Bob Cutlip

and be we more going be we just smaller to have properties going Rob target honest? perfectly staying that’s are are more are they seeing we recognizing – be the to but to in that markets, of seen So our through efforts

Rob Stevenson

I focus the you flex giving really sort keeping of assets? is mean that on the investment type space Okay. of PSB your like grade, of out

Bob Cutlip

the that that in we going with business space space underwritten mean I cost non-rated now, I don’t are in we for properties markets the better tenant the tenants. like long-term. a stay credit, the below of They is and continued prior being as many, And profile we to this and Columbus more. because ability we going corporate XX% and effect think and have on building, more headquarters. had change are to right will This grow occupied we flex tenant in more lines live that I tax their have did the going market They year to many businesses. XX% come of lease, go to that years. I played we successful their production are perfectly. The underwrite no high. we probably see I in XX XX% re-leasing people into never really those to can these But is middle because corporate just and say why of go industrial history been office flex to that their to are where that’s life, so be really, very with mean XX and

Rob Stevenson

a that would bit max then market for cap it stuff terms the that think want of that in And that can issuance ATM, is quarterly or the me, limiting you structure? would you one or see much the the the then do you could Okay. last about for of preferred you market guys you what issue, sort and of terms in talk – preferred how little how of you Mike be about to the of

David Gladstone

appreciate I that, Rob. Sure.

that terms is neighborhood aggregate the overweight $XX at preferreds million the as would XX% set Series say I in are compared X% today, which the Series structure up would XX% yield. item more way, done the of say would in of issued X.X% I have been peer year-to-date capital total could it in about make assets it’s B to the trades meaningful from approximately an number. issuing be to look our of range. gating XXXX more the we implied meaningful million of XX.XX a we today, an perspective as certainly in So, the a have $X.X that I In typically B dividend we

So Series as new can continue to we a at we the where as to of look B do indicator an issue preferreds.

and and do which to a but notice. solely attractive in make A the we a XX Series professional trade days our our at given up our said on know $XX Series as yield past, an election have if you material appetite ever B As there way was vehicles redeemable dividend that is for our preferred are preferred in million

will XXXX we there well at the that, tenure obviously looking X.XX. preferred watch market having So a there is headwinds to within as of during with

improve perspective from cost piece of thereby common on Series issue I margin will expectation we an the is down it back So abstracts B value some think aspiration of shareholder hope to continue capital. our and a driving to

Rob Stevenson

guys. Thanks Okay.

David Gladstone

Next question.


comes Coffey Henry Our Wedbush. next question from with

open. is line Your

Henry Coffey

just on a for a but run through of call how I the know I Good the guess balances? portfolio would morning that solid numbers you congrats some kind I if gave get great wondering When start – forward, row terms all down you didn’t quarter of I and and us. sales – property real acquisitions, property could was I them and in affected everyone

Bob Cutlip

about the going forward are Henry, talking you and let’s say the let’s next... then XX last say months

Henry Coffey

months XX but and of last the just forward, first six for for year? going both the also the specifics the well – months of just No

Bob Cutlip

we months grade. grade about investment XX X% and of we acquired investment XX% past – the $XXX were have $XX.X worth parents the properties or are tenants million Those over their acquired industrial. were only Of The Well, an we of there cap it plant. Mercedes-Benz Okay. the now for like those office at property have That another year next And bit is million slow, industrial a picked now. the quite first the $XX.X to has very assembly with Alabama. quite this million, property in have rate. listing frankly already volume quarter up

to Florida, be even I XX footage industrial going square and to to think we over Denver going if that markets you we now and to I office going confident Philadelphia, going be under smaller to going and much had Central you successful in, potentially on Columbus, days basis, XXX be square the we more next tell I some that where that and could a operate properties, transactions can closing Phoenix it’s days comfortable to tell be it’s think includes both so the maybe to feel I be Ohio, it’s And XXX,XXX I it’s will are very feet. and industrial be that

as markets us see probably I forward. that the So strongest for going

it be will Dallas, my make successful there what the it’s are in is And I it very going low opinion us think are does, be protecting five. us not just for Worth, to cost of that Atlanta, long-term on accretive sense, think to doesn’t cap Chicago, the We of not these growing our rates Fort think in a at even measured for too And shareholders in they can our markets. we markets growth think secondary And are the be successful for standpoint we in basis. that from we and us capital. better we

Henry Coffey

much is actual much sales equity to would and of sense have say new can new to every existing would the you some be, be of properties, us how terms investments into property give the books, how of of term for So in the would what put debt much $XXX or transaction? put fund how new from you ideal some form that way mortgage of that on

Bob Cutlip


we over to that that really we I years that as were X has it and off. will turn recycling selling long-term, We using really then assets X are fallen well. non-core to me consider capital start the we over Let years be what to were but answer Mike as past Mike can

have $XX think will if it reasons be selling I we of want through XX I good, are probably the great, forward they to renewals and their these they tenants. And next have sheets, look million mission facilities. most payments critical leave been for per their the don’t their redeploying. we very They months under with credit is would well balance that got excellent year are over that be Henry already is excellent,

And so our happy I to keep now. turn Mike fact in underwriting of how And over are in about we I as it will am tenants to those acquisitions to just our talk portfolio. most

Mike Sodo

end other that leverage required is perspective, long-term or the using generically equity. to XX% say be Henry plus And large component capital I of would by and by properties from common underwrite. it a of we minus mortgage through a will and how piece sourced That being

are use we the in targets indicator as our we subject basis fluctuations enterprise that are to stock XX.X% at on to again And leverage speak volatility. because we As book leverage. in value you

we sit on is where that target two long-term below today. points to Our four

XX% plus time period. – leverage we we So deals $XXX XX amortization million minus of in target the XX mortgage that can at as of scheduled place, originating well excess on having as our accomplish think month in debt to by in or month

Henry Coffey

dividend your of thing, dividend is what the I is And gets increase making a a issue sure of is dividend share then I terms are in yield way the I lower levers results ahead different more but FFO process the on thought great know in always perhaps attractive and obviously? attractive a mean guess there that or higher price, two and a what less there

David Gladstone

payout paid, months payout to quantified disclose first in you of ratio. off we we dividends cash at looking but that to I very of if of, XXXX softer operating benefit of statement the available cognizant quarter you distribution that XXXX it’s if XXXX approximately to of in second of XXXX, are the compared believe giving cash first quarter the the that flow the AFFO, don’t activity cash XXX% flow XXX% ratio. six quantified In for of our just ratio, XXX% of payout as It’s

X basis looking been So have to requirements. as that years actually earnings the where really dividend a are show ratio the adverse X% lease the on by improve work the expect at X% so a of in events, there dividend On done can by perspective fully we can increases appreciating meaningfully I growth to an team point be in a substantial on we roll ratio. XXs. of increase end ‘XX support distribution to We ratable to are all we basis things a this, CapEx get be basis, annual macro the available to in last and earnings the dividend, confident we has remaining difference increase the to want for we in covering run without payout on and TI is cash rate there the whereby incremental and

Bob Cutlip

the cap being was with and call that And goes indicated now those which each I of is we improved the to I what to greater size of going line from the rate I Henry, talking add could on on cash are the GAAP what more and position are other comment rent those think and to am inflection what to point than as at the was we I hitting is add XX-year if the the about, X.X% that leases directly bottom Mike X continues portfolio encouraged be that looking cash that, rent for. that’s XXXX the to about we and very doubled and one to actually is XXXX leases, to

Henry Coffey

you. Thank Excellent.


from Brandon [Operator Instructions] Ladenburg Our with Thalmann. Travis comes next question

open. is line Your

David Gladstone

there? you are Brandon,

Brandon Travis

can Hi, me? hear you

David Gladstone

Go now. We can hear you ahead.

Brandon Travis

towards of you. Was quarter? there Thank the back issuance half ATM weighted the

Bob Cutlip

The exactly. vast common the in majority Yes, happened of June. issuance

Brandon Travis

[indiscernible]? you And update then provide an on can

Bob Cutlip

held-for-sale. that’s Yes, still

They property year, – interest Yankee course, for that redeploy X year one in doing they and our is have prospect there We are that property it. in been have we just this point and but our best sell after at think to year go ahead is renewals it’s that capital. the and

Brandon Travis


David Gladstone

have we another Do Alright. question?


Mr. to call any back I like showing for David to this the turn now closing Gladstone not at would am questions I remarks. time. further

David Gladstone

good for and you ones your ones of Thank questions. end time conference I hope call. that’s some this time. next the were good get There we Alright. more all this


program. Ladies today’s in thank participating This conclude the does gentlemen, for and you conference.

all a disconnect. great day. Everyone have You may