GOOD Gladstone Commercial

David Gladstone Chairman & CEO
Michael LiCalsi General Counsel & Secretary
Robert Cutlip President
Mike Sodo CFO
Barry Oxford D.A. Davidson
Robert Stevenson Janney Montgomery Scott
Henry Coffey Wedbush Securities
Craig Kucera B Riley FBR
Call transcript
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David Gladstone

Hello, this is David Gladstone, and we don't have an introduction because they're having some kind of fire at the place that's handling this, but Sydney was on and she's very good at giving introductions and we always enjoy this time that we have with you guys and wish there were more times to talk like this. We're going to start-off with Michael LiCalsi, our General Counsel and Secretary, who give the legal and regulatory matters concerning this call. Michael?

Michael LiCalsi

Thanks, David, and good morning. Today's report may include forward-looking statements under the Securities Act of 1933, the Securities Exchange Act of 1934, including those regarding our future performance. certain plans, uncertainties be which involve on are reasonable. statements current our we forward-looking risks that and based These believe to different Forms statements, with including Many to risk we factors expressed our file cause find all and implied from in other can materially that our or forward-looking factors results XX-K any the these actual by SEC. you future XX-Q, may be results documents

these also Web any is or forward-looking required future as amortization site, FFO expenses. discuss our by period-over-period a on our a the funds discuss sale losses non-GAAP specifically comparability Investor other our of income as events on website, today we the And new is, we will no results and statements, depreciation a update information, SEC's of whether is as is accounting Those and estate estate or to certain adjust indication operating better of the law. on and for can which real net found term believe undertake any impairment FFO, this except FFO which Relations or the assets. operations. We'll of and of otherwise,, and publicly allows which page We performance. result losses revenues plus from defined excluding real from obligation better non-recurring FFO, property, or core of gains revise

Twitter be find which and there both email the on so visit review those @gladstonecomps. that keyword to to service. Facebook, opportunity Web results, on the you Relations for once of on can Investor also information. simply our call our, ask site. of press is is yesterday Form release page an issued Companies, detailed up you more take website, found overview the Again of our and handle XX-Q, were we Gladstone Today's notification Please again, sign It can our for at

back over President, presentation Bob the hand I'll to Cutlip. Commercial's Bob? that, With Gladstone

Robert Cutlip

good everyone. and Michael, Thanks, morning,

industrial square portfolio in square executed property analysts meetings our amendment in debt foot the mortgage the acquired During our resulting in XX long and with amendment XXX,XXX both of existing quarter, our property lease fully expand Florida, lease in XX,XXX anchor term City, our we office in leverage a property, and second Salt Ocala, industrial Refinanced acquired an tenant in XXX,XXX investors, with increasing lease square XX.X%. new and tenant Indianapolis approached Executed in leased Columbus, book a to Ohio, industrial week property a acquired million a foot the Georgia. Tifton, a Lake a XXX%, with office leverage building, two-building coverage of target $XX.X lenders. occupancy held every totaling our foot

square We acquired quarter, entered diligence property Texas. Denton, company's end XX,XXX foot and property in for to line we of of acquisition catch Subsequent XXX,XXX Denton, Texas. industrial the in square loan of due a the foot and credit the industrial term

second team activities reflect had a these our quarter. busy As very

focused team's beginning acquired first assets. call been improve benefits accretive has results. our operating functions enjoy three This our on through noted we're activities; across efforts the As of quarter we one major all number to to accomplished

of of quarter. mortgages we to leases highest XX.X% rate. approximately Number refinanced leverage expiration the placed maturing greater XX% in at And lowered than at from expiring GAAP rate debt vacant X.X% mortgage from the we second leverage re-leased period XXXX period was high two, through history. cap on XX% per occupancy maintained end and number the renewed of during the XXXX XXXX of year space. the During with We our we average acquisitions levels. million X.X% three, a $XXX We've as leases lower a interest company in

operating equate of increasing total efforts line of structure assets. these recent and of the And of as term opportunities loan further Mike recast position, billion going $X we for flow inclusive which of outcome improvement our The in demonstrates the to growth. of the improved our cash in create believe recast additional year-after-year syndicate will we results adding an is credit characteristics approach capital partners expand the to upon shortly. in this

Our industrial is Florida. management back. the The foot XX positive our acquisition X% We portfolio year to a quarter are continued million sale rates a was cap asset the along GAAP and acquired Ocala, for investment going X.X% in and and the XXX,XXX two-building and generate The activities quarter. transaction during square momentum IXX lease price $XX.X operations in respectively.

square We also and $X.X Ohio. and property and in remaining X.X% lease is million, Columbus, term GAAP rates cap the acquisition industrial acquired was going years. respectively, foot seven in XX,XXX The X.X% a price the

X.X quarter lease and and its chose the GAAP product acquiring The the size Tifton, port to imports proximity a years. in property due building, X.X% The the acquisition XXX,XXX long price X.X% Jacksonville, industrial and to going our in of exports of foot this along enables was to and double where us by offering quarter rates location of square tenant land Georgia. tenant. the term $XX.X flexibility The international respectively. inventory are the nearly to remaining size the We the concluded customers. IXX parcel million The term for

trade to of process. able property as get to zone and the the tax operations designated In its foreign customs a was beneficial tenant gain streamline addition, treatment the

was respectively. There and to cap X.X% rates property. characteristics their and we these on property $X.X the Texas. of we are are X.X% foot to serve just building square did end, and solidify going a XX,XXX existing lease to the million GAAP acquisition Denton, the and acquired remaining XX years this commitment close quarter in yesterday. industrial in Subsequent All The price

square Texas. structured have quarter I-XX Austin, expected transaction year due foot We of XX for sale leaseback. XXX,XXX industrial as is along entered to property a also north diligence This the be a

This through in property also by reinforces total to deliver we and viability strategy extended on XXXX. foot to team, multitenant foot that ago. the in square XX% XX,XXX entire renewal initiated to building. their increase the releasing success the of an efforts. team anchor office Midwest the our The management Our continued position to square anchored Indianapolis With building X,XXX asset tenant transaction tenant This years five of the XXX%. our also lease brought their occupancy expanding

and team foot. entire expanded West XX,XXX per totaled in Mountain third a tenant The to leased square XX,XXX increase Lake of square the leased improvement XXX%. party. property, for feet feet square office a balance Our XX,XXX in costs occupancy Tenant the existing City square space the to the $X was by feet just Salt

interested the information. through thoughts expirations wanted I lease to many in offer the on call XXXX. that team's Anticipating are for your

rent, three the million end remainder which expires of the port. at XX. the we year During total XXXX, at One actively prospects tenant are space of property, Inland and formally and has have this marketing vacating Tulsa's annual on GAAP is of they expiring, located we the the million of are December $X.X notified that representing $X.X at us leases have

now of spaces with We're with the marketing of in vacating of tenants those During balance has positive of and are eight conversation have half Two the of XXXX, annual they are this formally we renewals. million of tenants expiring, hopeful have that the active we leases each the premises rent. and notified which second us representing are expires prospects. year. million total incomes the $X.X $X.X

by similar and space identify tenant until market XX, for a of to us not really lease pursuing going renew a provide are prospects user helpful is improvement expiration to actively preparing Or concepts newly engaging They and all a to to tenant notice space. validate they this Therefore, and either with planned have GM separate market date their requirements. to are to This For we rents portion of or or scenarios. a year. for August negotiations required December we be the XXXX, or full begun for renewal lease? two vacate building a They multi-tenant design current the information potential scenario. of

that with low-to-mid foot $XX.XX favorably foot it's in square $XX at of a per rent space the property offerings the our the to basis. note think on net I per current submarket square GAAP triple compares in interesting

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

acquisition million which are representing is intent of approximately due or properties, industrial this $XX stage of under letter balance total, volume, pipeline diligence in XX Our million of the XX and $XXX current approximately is is of review. either candidates in the initial

made conscious As we effort noted a to allocation. previously, industrial have our increase

underwriting credit square fully believe parks, parking represents focus properties foot in developed XX,XXX Our can is the and by heights foot to our tenants. with Ample which we trailer A history XXX,XXX in tenant to XX clear non-rated underwrite size market profile middle and XX in that occupied proven warehouse. are we our with industrial capabilities.

are intensity X.X%. through of portfolio end of September average long will GAAP do are $XX industrial lowering $XX properties all properties. And improvement is in the in million, XX% nine strategy replacement well rate of improving increase a and last of reducing nine to of of costs of We the The industrial. profits. acquired not cap above million acquisition management efficiencies. this shift second period tenant have dollars from benefits that several this just are week To was and volume larger of of us. an strategy the believe markets, alone, our the located our investment appropriate property volume allocation is million our target properties months, which month costs, the for The June, believe the show and $XX were this the activities in trading or operating we industrial locations over in quarter result term evidence over our in we

equity summary, leasing maturing our us program well success, pursue in growth opportunities. our continued ATM through refinance and second to our activities loans, quarter positioning acquisition is issued So

Mike on turn results. a it to let's the Now over for financial report

Mike Sodo

results by second operating start I'll morning. reviewing our quarter XXXX. Good of the for

for based diluted common share available $X.XX FFO per accretive first both years, on per growth $X.XX performance in-place inclusive as well quarter of $X.XX in average and portfolio weighted as respectively maintaining common numbers for XX% completed core recent company share demonstrates the of and the half XXXX. second shares. were the share This are the the and to stockholders I prudent of has fully occupancy. per FFO performance Our the yet of referenced

second the same-store quarter In compared XXXX addition X% the of quarter as in was to rent deals, second of accretive our to XXXX. these growth cash

mentioned XXXX, share prior $X.XX years. of Bob past the $X.XX core the range number to for in FFO to per hovered As

sheet demonstrated as the core increasing portfolio. the as history we the for profitability the in and XXXX As shareholders, and well intend our grow we addressed share results balance to of FFO lease allocation to continue per company's de-levered rollover. industrial our highest

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

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

strong years, XX.X% acquisitions means nearly that assets to believe which We the X% grow new that to sheet continue our target on we reduced leverage leverage, allocated enhance XX% We balance decreasing assets through over nearly our past will all creative going our away X% from five at forward level, acquisitions. to as our be financing our by and to maturing lower refinancing equity a we debt leverage and debt-to-gross levels. are focus raised

we've and agreement believe forward. analysts, proper put going lenders, is As this will discussed this the with that investors leverage us level there at we

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

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

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

interest placed caps variable loans. rate all We on rate new

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

lending group, highly the We forward. speak term to on supported prospects growth as continues with bank mentioned was only have Bob balance Wells this we term existing the not backing efficient company loan July well the X. prosperity revolving credit been but long that in believe the incremental This Fargo. well going further of Goldman of our achieved, also facility and and additions sheet for with and enhancements amended, Sachs As to as by execution extended upsized existing our

term basis $XXX years The $XXX loan XX combined was entire nearly a improvement. at increased with the million, of the $XXX two facility a the draw majority rate point to including delayed by component. million was million, The extended with facility being for facility

be to with continue LIBOR range. caps hedged loan X.XX% term the X.X% rate cap in Our borrowings rates or to

XXXX manageable the $XX and these have loan with XXXX. Further, Looking recast options. $XX maturities having at and coming million less loans very of complete in with XXXX maturing we only each of credit a of due are profile extension mortgages number facility in debt than million our

and and We rates the have the factors, of We're generally tenants, several high the improve amount to our continued ranging type, maturity acquisition debt Depending location, and to profile credit, seeing on over the liquidity lease, and leverage proactively manage loan. property terms all-in including X% time. mid-X% range. term and on from new refinance the

our We've ATM exposure hedged rising existing XX% to in to fixed over with active to debt common and our rate rates minimize rate to remained or of interest our continue fixed program. our issuing swaps interest using caps. We stock being

On opportunistically raise $XX million. million year-to-date we basis, through sales. raise the and in we stock net $XX.X During quarter common excess costs issuance of a of second

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

we review for financial at underwriting on ATM supplement quarterly cash million our incremental of more we $X improvements flexibility are to significant information With current the website, any our operation, credit. our our million properties availability you We availability we known detailed today, encourage financial that quarter. our portfolio have and programs, provides under As upcoming posted and access which in our current and and of line properties. our believe also fund to have we of $XX to

high credit We about with estate leverage. deployment minimal and and to focused and in the XXXX asset on plan strong during business along on feel term quality estate lease quality to metrics, FFO continue as we real good capital continuing manageable with core near focused maturities strong high our with occupancy loan base with our We're our improve tenants. credit maintaining to will execute remainder of beyond, increase continue heavily our high expirations are of real be acquisitions including

base ownership XXXX and XX% Institutional active beginning I of portfolio managers, company moves be continue our its investment institutional meeting as Bob also lenders like. further as the engaging XX%, coverage investors, not forward of analysts, but June than and existing by We chapter. and and new current with to increased establishing more to look the XX. stock to potential to of banks next since our relationships the only in investor with forward

Now I'll turn it over to David.

David Gladstone

Michael a Thank report Bob you, good as LiCalsi and Mike. and good That was from well. report

and our all So Columbus, quarter. a Georgia. Ocala, on. thank Ohio, in lease and things million Indianapolis, nice our fully-leased very, one leases tenants refinance new we've that well. of are fully acquired building that very debt. We property another This with of for and is portfolio in these informed both Salt a Tifton, going got a shareholders Lake is now lease City, Florida resulted means amendments And going leased -- in lot one A of now, on in in $XX.X the of very mortgage a the and that executing nice both is amendments example, industrial in

liquidity I this that know, when of places, very business for line hits here liquidity quarter, a have important in think the much a topic. all strength we happened so it's And not the of rates, of event the the the recession is is now. credit we you key have significance new a the

some So there. we now protection have

good of to in two money We a to next the portfolio We've we've of a three to we need believe over good acquisitions tenants, reached which that quality new that point money our a use don't list number quarters. is that to now a expected point significant we to the properties, reduce or continue have in reduced coming leverage leverage the one, further.

change that's we're in all a new So think into our to position significant And new in and of I put properties. marketplace. a the tenants equity new

businesses today. Middle market

in the know, of a distribution the to rate very annual per very hope We believe want maintain the voted are fine, board the manage you now we next that individuals increase well, ours. the we is a for, We've excellent small rate want common the monthly In rents many that consecutive investment I and maintain distributions, year. middle for we record. doing tenants United of want are July, two per $XX that's distributions As to recession paying past when like XX and for their years distributions attractive cash and of cutting monthly REIT discuss paid to know September, August I know went meetings. run income. you States is to going of a the common without strong. July, XXX increase share $X.XXX a tenants market an the board we're ago any through stock and This can

the X.XX%. With $XX.XX, the X%, yield be are we the REITs trading at would lower per And today trading if much at at distribution REITs $XX stock share. is area The closing remain for Wednesday about trading were general about yields. that is at stock that, many

I lot stock the the think we've for of got closer to a to price industry expansion be REIT stock average. room of


them some Operator, your in Sydney, has. Would fire have place, has but questions? stop on don't the alarm here it Let's how I come you stopped to whether and know, tell ask and questions.


Barry of D.A. first with Yes, our question you. Oxford Davidson. Thank And comes course. [Operator from Instructions]

line open. Your is

Barry Oxford

guys. Thanks, Great.

what's very the then quarter, acquisitions guys know the in know, you pace. You this very guys what about you again, you side guys But slow and to you talk were done an a again, And nice the moving future when along it then from quarter pipeline. subsequent pace.

last in kind marketplace? guys that question I of kind really are you what's the guess XX of days my the changed revolves in So seeing

David Gladstone

could slow, started deals sense was that find very, strong. off we not at very buyer the year seller disconnect all. The made any pretty Well,

the the beginning beginning the a we end quarter quarter, Second second saw of lot at quarter the more into first of listings.

I think just the from standpoint. it a just was delay listing

As this pipeline you Analytics, competitive. I mean, down know, like you six the still but listings right a saw in from period the compared be very got should strong that, year. they industrial But during say XXXX indicated we've think to RCA there, first now, pretty last are months it's the know, XXXX. overall, of still that they've we Capital same reading you Real year,

So we're know, the deals. going really think, our more you not we our to so to market. to We as $XX just cautiously $X deals million, that run compete encouraged continue these And see we're from larger million can much there better in deals.

hopefully this So continue. will

Barry Oxford

ATM guys the Great. the leverage at the basis? you you enough $XXX neutral and And that to million with pipeline, keep to. Is then alluded ATM a

David Gladstone

have a offering terms optionality the we we But, then acquisitions to or in activity. XX to whether any follow within sufficient bifurcated that Yes, of to hit and that source via acquisitions to pike those the multiple we I million visibility $XX can we level ATM that the extent normal to or if contemplate Barry, would for we to of and ATM ones think fully or as where XX twos that's acquisitions are course go north ATM type requisite I the have you the know, contemplate fund between you overnight correct know, they down subject deals, come is those as day that prices, the $XX any sub of on. million share , window, equity

Barry Oxford

you. I the yield much. appreciate so floor. Perfect. that, Mike. Thanks Got I'll

David Gladstone

you. Thank

question. Next


Thank Stevenson with question from you. Janney. And our Robert comes following

is open. line Your now

Robert Stevenson

is on XX little of Can the is any next for bit expiring that leases you is XX ending Good you going there about expiring be morning, market? triple above those a talk where lease the the market. that versus basis net guys. our months the to leases And materially rent have the over where

David Gladstone

square address and GAAP $XX.XX on GAAP the our done largest mid-XXs current been foot in GM, me a one is in have rent current first. our deals basis. I net Let rent the -- the market a as indicated, capital

of a GM. uptick from I doubt we I going we're still in in rate. will would the about hear think waiting so When an rental be that had until rental But have And it's the case, think, a we I think to without stayed flat the renewal the this at renewal, we over Last of year GAAP far a X% interesting, others have year same rate. had expiring all increase our so kind rents. we

one GAAP say will though, I had So, would have rent probably, this, if XX we next think rent, That's at think, as reduction is the the address which port X% the do lease, probably end rent. to that as months. much more we one We at to Tulsa I are I in that turn Inland the no maybe handicap let's X% out about minus which the the X% than I to X% plus reduction I to to have where looking X% to probably that of year, be X% in the say may cash one. XX will and over that at an on XX% GAAP

Robert Stevenson

a ATM? and Okay. is of then at greater portfolio office chunks, as we source mean, it. be are your raises sort sell in versus thinking the capital sell that forward? sales point intent going about potential you mean, how potential the I to, under guys the asset how are evaluating of how about I guys that you thinking selectively, should maintain of this And

David Gladstone

that be on this let's going are nature not as I much think be to the market. as it's the going any going in talked are they're really more, single we've We're selective dispositions or property to and abandon say, point markets at tertiary past office focused office to whether in industrial.

maybe at XX% to is that industrials to allocation increase intent change that we'd to a XX%, swap our so get like are we today. the where know, actually to we and You fully to we so. in -- where it's the probably acquire, those think and us or are attack markets we which around, three and take years aren't I going But submarkets. developed not We're

be I think we'll successful.

Robert Stevenson

guys to hot that a this diligence, you industrial mean, I was know, on lastly, field, through you are a what you bigger Austin up the that's a the then you sourced, get pretty market. relationships wind makes versus rate you to under allowing something could And of mean, that's due that industrial cap equity or Okay. I sense guys private that one something paying? for players or

David Gladstone

came with it happens. broken a through and I South manufacturing was this still facility even with Cooper, people, back our to know as talking working viability a just funds of who our with we PE other to It with and the this Buzz tenant PE well our company quite through very comfortable term of relationship And and got this region. other Central think well We the with sister long And runs goes the the in owner companies. is history deal. as

towards is -- bit so And a rate cap manufacturing little moves -- fewer place. also probably higher distribution and a

Robert Stevenson

Okay. Thanks, it. Appreciate guys.

David Gladstone

Thank question. you. Other


And Coffey Wedbush. our Henry comes with from following question

is open. line Your

Henry Coffey

for essentially aspects Are going efficiency morning, management can and there of rental dividend? room be have better what Good big the over obviously what's are and other increases? the the you're $X.XX, the impact equation properties What there Yes. -- to would on acquisitions? Or is the are which the assets that getting the contrary new improve going able you there? leverage of leverage cost over $X.XX? discussed. to said -- accretive be that property you and gets up better us that to on to terms potential that the Would is FFO a you everyone. GAAP more increase -- Is part real in being rents headwind it What it are to drivers other

David Gladstone

but stay think on do acquisitions I accretive $X.X of the the end X% and way up indicated, GAAP think just to the what during X.X%, quarter. acquisitions that mid with to lot equate occurred rent. per rent, quarter. it's to Xs about we did deliver X.X% the set transpired Mike that can in, a annual The Xs going the as million to we the share. And high in pipeline, continue That's near to FFO continue it's this I rates of and to increased what's interest if margin

to of which have lease increases if characteristics to And one is when the through contractual net rent I you're think are recession. typically to is, leases, do, be the doing of X% we you a XX business going going you year as X%. seven

If have some why because you some recession. a situation. go still to focusing There's acquisitions much the growth more markets, now we're through but to be markets, markets, of that's stabilized our rent in all going market discount with and a right you growth

I debt acquisitions our costs, think I primarily think lower focus Henry, the improve is So, accretive at which margins. our

Henry Coffey

When as when sees read industrial read of did an as more problem that see hot this that as on estate one opportunity Is you lots -- supposed a just capital all? over Everybody a do conference hot this virtual activity. transaction, we analytics of that -- area, you the lots for Or commercial enthusiasm couple industrial broker of we a real question, we with a real other actually did call as call well originators. properties?

David Gladstone

has for foot commitment you square of real as under velocity, land. going to The kind have to foot XX somewhere Most developed clear submarkets big national has the transaction slowed XX,XXX a range We've bit. ability the the properties amount firms been made between our of our go XXX,XXX range. square feet. in brokerage there's at and And whereby because load. be of these into that of boxes look a XXX,XXX it lot if been properties industrial largest very these XX of size limited the to what a are is And to

that's to our strength them middle lot I market lot are over front a one that home XX% And delivery what's reading And home could XX% more stock where of to plays. tenants. report in But going the research of think to only loader. Some cross of indicated delivery. means and much them mean, a increase as are That research about years. with four interest happen I We're industrial next as property to going configurations. that's not in million also play. to and to buy in locations part. credit estate the We're with XXX be have right can type we playing be the of where for underwriting going those knowledge markets developed in capability and now the that mile the where last [ph] in the playing to footers right more the real we most X square three

Henry Coffey

you much. Thank Great. very

David Gladstone

it. about encouraged I'm

I think industrial size a the in play we term great of that have market. long

Henry Coffey

everyone. Thanks,

Michael LiCalsi

Keep you the guys David, succeed. we'll the to keep and telling all want you conservative them to want the stay David, FFO dividend. on telling grow see And

quarter. you. great So Thank

David Gladstone

Thank you.


Thank And Kucera following with question Riley from comes B you. Craig FBR. our

open. is Your line

Craig Kucera

Is morning. first, Good rent a next building? the an lease couple circle is that of that that a on other detail some Or currently the And what the years. in aware to get back building? little of is I to of square you're footage office I the of expirations more guess type at wanted over Tulsa, building. the building

David Gladstone

-- at the port industrial building in there port It's with the and authority the there. it's working we're an Tulsa,

we the over prospects that feet fact, might for I over I two a square you no very its north square don't It's the have believe has availability. port foot. a me, square little it's building building. but there In at about correct feet. XXX,XXX right $X market since XXX,XXX entire have strong [ph]. other very, Anthony, is few, But of very rent now, there's are the

the his leading on who's And Finney, Perry Buzz that's Senior as region, to deal. Manager Cooper, who's well so as that encouraging Asset

conditions I So we're just I transparent to we're But going X% are. able what to I the as that about drop XX%. lease rents I to think, the being I market that. could think I'm be encouraged cautiously mean, think indicated, good

Craig Kucera

it. who it's the there, And tenant is Got vacating? that current

David Gladstone


Craig Kucera

those understand, lease And on commentary tenants had this just where existing effectively based renewals, you at expansions on your the with I the rents flat at? were quarter, were so

David Gladstone

at City. came is below Stanley that is vacated new which was. a Morgan $X.X in where in that XX,XXX lease us. transpired lease that Lake about Morgan right They What Morgan had They terminate new amazing building Salt feet. rent at the is lease. a of original The part is Yes. That Stanley, to square Stanley their to

back wanted on came then square we said in we building, the they then XX,XXX And they the feet. walk-throughs when started and getting take to market. So put it that back

$X to about their foot, And, is which then And -- so square XX,XXX on $X.XX X,XXX back. this per feet X,XXX square they other square feet, took feet. was but square less rent tenant, a

Michael LiCalsi

not David takeaway is XX,XXX And is I that X,XXX mentioned did in being and released Craig, so third occupying in September. square back are Core that [ph] the during then the to; But FFO real that, in a in July. online quarter, feet XX,XXX second they remaining going participate of quarter think there,

Craig Kucera

aware it. the of that's the where you'd leases or excluding eight next give it's Got already the sense And that you're year? expiring of expiring us been think as far GM. as mentioned Can year, rents you notified of square size those, next you of two the a whether footage I

Michael LiCalsi

building. $XX you foot give square foot can is on size. then a probably XX,XXX the a building buildings. square building square foot rent the XX,XXX office I can give a rent on I $XX.XX is office The both you rent on also their The and [ph].

Mike Sodo

we're so for properties. both to encouraged see Minneapolis. they're number starting these of Yes, pretty both prospects we're And a of in

Craig Kucera

a in close pretty you on is looking your what second you close acquisitions Great. year, for assumption feel about the of And pretty might Or of the nice guys in the here half year? you you step one a $XXX we to year? given like reasonable I pipeline size up feeling million that's you the for that, think, differently about the one more you you second know, had make Are quarter. for know, the were me, for

David Gladstone

the maybe days. I'm over I next think million out to to it XX XX and have bit plays days. the No, depending XX next to we're We'll going to see believe Mike listings. $XXX million over in But the I at about $XXX just be encouraged peaking how happens upon $XXX million a the truly range, what

Craig Kucera

Okay. Thanks.

Mike Sodo

Greg. Thanks,

David Gladstone

question. Next


[ph] following John And Ladenburg Thalmann. of line comes question the with from our Thank you.

open. Your line now is

Unidentified Analyst

Good morning.

of follow you move maybe the about? one already kind downtime up What's tenant on Just the outs. quick on out that kind the XXXX move of expected know

Mike Sodo

XXXX the or On XXXX?

Unidentified Analyst

XXXX. Yes,

Mike Sodo

the on the out square property which one that that the in the and the just other port. move are we which took that of at a one Tulsa, XXX,XXX move property then the property the XXXX with XXth, year out office is at only, the is square foot end have in place is June foot Charlotte, XX,XXX industrial

Unidentified Analyst

think of you be potentially maybe, And these downtime what kind well, could on you of do at the as -- look that, both assets? just

Mike Sodo

I would Well, on knew something know, office the probably be that, if I else. property, you doing

have we quarter think strong Buzz we that we're a the the the I that now, And property. for and office property the very sent leased be really on end at that quarter, downtime have for on fourth then team building. of half forecasting believes limited we're Right looking the building, feedback have two will one will on of maybe first that the prospect that at the year the prospects year. and XXXX. we're Cooper on property probably we the property entire during a that's And the no office his waiting property, of at of end then property. proposal And from

Unidentified Analyst

Okay. Well and maybe in rent today something of is the be both timing, the run $XX,XXX And to only the of 'XX Okawa How accounting terms top particularly not should we the XQ I given rent rent amount that surprised completed guys 'XX run quarter-over-quarter, was this basis? that's rent XQ you changes number; of in within maybe that go acquisition. XQ [ph] be maybe lower acquisition then there's as seeing kind caused or we're rate view of that activity kind can versus line the elevated all because on of XQ rate? that increased forward a to number, versus of the and

David Gladstone

in offset the April, participating interim -- but obviously the contract to that the revenue at in only was to -- point, taking specifically the materially contributed Again, line February. that's not to contraction increase, being know speaking line John, by you property signature brands top Well, the a top Stanley. at $XX,XXX end acquisition your of Morgan portfolio, it $XXX,XXX

square that We the Florida $XXX,XXX locked also storey will in to different the our brands square building, on in office non-core that back the single increase from foot, quarter. on of $XXX,XXX in Maitland, foot. again, the signature first So, quarter, two of mitigated disposition stages. has come QX by is XX,XXX was also total and That rent, that for the took in place called

events, so away, audio onetime have million enough just fourth quarterly time brands to revenue, that we'll a when of in but participate going closed month line So, it be full now will it cycle that XX, but for say some on participated back. rent was acquisition $XX.X three June Signature with will the a appreciating in materially and Stanley, to in top southwards, to $XXX,XXX. didn't I would QX, the in we events participate continue acquisition quarter. we more get into acute And Morgan specific

Unidentified Analyst

warehouse you look maybe then kind Very side assets helpful. kind you of at the that attractive? any And seeing versus acquisitions, of on manufacturing your additional targeted acquisition lastly, are rate get and are on of looking industrial might distribution? And the relatively you manufacturing cap things, within can make how them

David Gladstone

truly believe, your that you and are know, real higher a its stick I Yes, John, manufacturing we rate on cap the estate. receiving,

to invested So typically unlikely for them like right because lot with and property, area, that money it's we really workforce their they leave. that into a the have of around

in I is primarily of the if that. look know, have you at that last like we we So months, and what manufacturing I two-thirds nine over acquired

our business value you are long but I in in more, I If think add in term I'm, it's do. might multi-tenant we think were where play the the business. like I we a we manufacturing holder, know, distribution our like business, I and

do rates in -- we We get cap get higher will manufacturing.

Unidentified Analyst

That's me. it for you. Thank Understood.

David Gladstone

Next question.


at to I now turn like the this remarks. David I'm to for showing back no time. Gladstone would further closing call questions

David Gladstone

Thank see a Okay. you good in. tuning quarter. for up quarter all last we've for what this Hope put you

another quarter good ending I think the XX will quarter. September be

end turn to it this I'll Sydney. So of that's back the call.


all great and have disconnect. program in and a does thank the conclude gentlemen, Ladies day. conference. participating Everyone you for This today's you may