GOOD Gladstone Commercial

David Gladstone Chief Executive Officer
Michael LiCalsi General Counsel and Secretary
Bob Cutlip President
Mike Sodo Chief Financial Officer
Rob Stevenson Janney Montgomery Scott
Henry Coffey Wedbush Securities
Craig Kucera B. Riley FBR
John Massocca Ladenburg Thalmann & Co
Call transcript
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Good morning, ladies and gentlemen, and welcome to the Gladstone Commercial Corporation's Third Quarter Earnings Conference Call. [Operator Instructions] Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. David Gladwell, Gladstone. ahead, go sorry, am sir. I

David Gladstone

Baseball Stephanie. Okay. We case and has you're a won Nationals introduction, wondering why celebrating was are Thank the World coming here. in Washington that you, we town to nice the just is still It you Series Washington this that team we're enjoy world-famous the that with off had host time more have Michael we Michael team We'll with the uniform, start his on go do you we actually LiCalsi baseball and ahead. who like Nationals time wish from phone in this. so and

Michael LiCalsi

of as of result obligation by update except revise or required a these involve Exchange not Today's the of regarding on those other our Investor on including information, by future or these any XX-Q, reasonable Find that and our publicly report in file statements are undertakes to different is Maybe the be risks current or risk XXXX on to documents kind page Relations our and performance. okay. many materially which these law. plans, actual forward-looking factors statements our SEC. with that The uncertainties be website, that These include but whether Securities or no statements under that's as Company our implied all XXXX believe uniform, Act XX-K cause now. results full may expressed all of any website may Securities to including and of of, we the the forms we factors future Act forward-looking based certain silly, results forward-looking future statements course forward-looking the otherwise, new specifically which SEC's the and events from

impairment is is also real income discuss losses is will from any which sale estate losses and the we and expenses, and adjusted defined discuss of net performance gains any our excluding certain once FFO, plus again results our of real amortization to depreciation as a from indication We'll and visit period-over-period accounting take the FFO, is opportunity assets. FFO and comparability of other the non-GAAP which operations. operating for better core of term on please generally and FFO property we this better allows our or a funds believe website, nonrecurring Today, estate revenues

own You Gladstone can is us notification our for sign up @gladstonecomps. there handle Twitter find our we that's online email Facebook. Companies, there, The also Keyword service and and have could even on

call simply our an of overview Today's is results.

that ask on So, can and release and have we of more our you Investor information. those detailed Relations found from both who Commercial's Gladstone will take Cutlip Bob review our President in yesterday for over Form the we page Again, press website. here. Up again XX-Q, the, issued be

Bob Cutlip

Thank Nat's you Super fan. Good everyone. morning,

at third acquired credit a and Company's acquired property the Denton, to costs. improvements XX,XXX industrial three square Temple, the square we foot in in quarter, line industrial two-building office implemented energy a operating During XXX,XXX in Recast properties reduce of loan foot term savings Texas, property Texas,

acquisition entered percent square and stock. Series preferred the a Indianapolis, two in acquisition of tenant and Mason, foot square Subsequent Jackson, diligence entered a perpetual the of foot industrial square negotiated in due and property Indianapolis, XXX,XXX XX,XXX a due in in tenant foot E Tennessee, for signature, amendments out quarter, lease Denver, to XXX,XXX industrial diligence Ohio six office the a and of office of a completed public due industrial have square for foot Colorado, XX,XXX offering for five-eighths end a the we of square property for in property foot diligence acquisition entered XXX,XXX the

of our accomplished efforts through acquired benefits quarter, second enjoy assets. improve across results. the has functions in to all noted activities, I've team's accretive are major operating been As focused three the to we This beginning

XXXX During GAAP interest and maintained on the placed leases through average occupancy levels. lease released company renewed vacant the greater period expiring rate, period mortgages refinanced lower XX% debt space. XXXX, a cap maturing X.X% the at from during at rate X.X% in with acquisitions mortgage history and We leverage expiration was than highest

recast cash offering shortly. our and XX% a position, five-eighth and stock the XX.X% third the of of our efforts term of operating and billion The we improvement the improved capital $X capital further an structure lowered our to results as which flow in in for quarter. we percent approach end depreciation, preferred the leverage perpetual We've of six create these credit will is of in to the in assets recent the loan successful from and opportunities after events of believe Mike line equate high to going growth. upon as characteristics expand of of the the demonstrates of outcome increasing these year-after-year, XXXX total

Denton, asset and years. the investment The acquired and industrial momentum for lease price activities GAAP rates X.X% cap operations the during management generate building X.X% Our acquisition We The $X.X in unexpired foot going was and to square are Texas. in term is and continued our respectively. XX quarter. XX,XXX a positive million,

respectively, cap acquired The property and million. rates leaseback. a square price GAAP Texas. industrial sale X.X% the in a was going XX Temple, in The and acquisition also XXX,XXX structured XX-year and as X.X% are transaction We was two-building foot

the entered rate Tennessee X.X%, a we Jackson, end, $X The three XX.X approximately GAAP building term remaining totaling on weighted properties dollars and million diligence average lease quarter is $XX.X industrial in due years. is Indianapolis. two properties, buildings million in the and cap to on Subsequent average

successful of the completion subject during fourth expect We properties of close quarter each the to these due our diligence. to

to our operations. Our asset deliver continued management team improving same-store on

to a of XXXX has office current extend for From costs, from compared signature of tenant has Ohio, no foot in team through the office all tenant square as Denver April multi-storey improvements of a signature, leasing of expiration square September and our XXXX through of and September XXXX, a which date lease amortization the XXX,XXX Mason, out which West Mountain team amendment a lease our property Midwest will in extends XX,XXX perspective, a tenant XXXX. out lease for amendment for will lease June foot without require

increase average these require and the efforts three programs and no other serve forward expenditures for operating upgrade implementing by building tenants. These locations is implement equipment, as on lower savings our lease projects in the lower at energy capital at entire consumption to Ohio States, We to operation energy team appropriate. combined plan going costs the Gladstone, our savings in term from weighted improvements These Indiana. and portfolio, standpoint, an office locations energy

many that call wanted the lease in I Anticipating are to the summarize on interested XXXX, expirations thoughts. team's through

leases $X.X expiring million During of of rent. remainder have GAAP XXXX, annual the three representing we

have each We for buildings prospects these at of this active time.

annual of During year. million of this the during total $X.X XXXX, we the million representing expiring expires second have of rent, $X.X eight leases half

two notified and Now, us marketing premises, we vacating actively spaces have tenants formally now. are are that those they the

of In we're are lease a one with positive XX-year and of the of the are tenants renewals. hopeful in we existing commencing XX% and date, with expiration negotiations for lease lease in outcomes with occupancy conversation fact, the the of balance term upon buildings representing

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

that are submarket quarters comment. versus third are I rent the of note year of and think noted as research lower the square $XX.XX are feet low have favorably and per current result somewhat prior to much with XXXX maybe of property $XX quarter. as in for in the that sought firms a the at National net triple-net our listings new foot conditions for similar worthy Market two first it's estimating some space XX% closings property volumes down Interesting mid the the foot on to per triple compares a basis. square GAAP

cycle, Entering estimate peaking. that year pricing they the both of this and may be eleventh volume investment sales

there's apparent disconnect to market have an office evidenced in by contract. buyer-seller noticed In as properties addition, notable the under sector, after we returning several being

a mind, quite Now, sales industry. still with considerable interest available the that capital for healthy be expectation and real of XXXX really investment XXXX, the with is which sidelines US the that in to is similar volume estate, in information to the on still for significant is

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

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

XX volume, which candidates pipeline of current Our representing properties, in is XX $XXX acquisition of are approximately industrial. million

approximately this the million Of or letter initial stage, in is total, is the and of balance either diligence intent review. due $XXX under

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

we with that a are profile, XX,XXX Our focus non-rated predominantly proven believe credit is properties in XXX,XXX with feet underwriting square tenants, developed market which fully our capabilities. occupied can size in industrial tenant middle parks by to we underwrite and

of this October XX recent also September were last we've located To properties. million the properties. GAAP is or strategy, through XXXX, months, Over just are industrial locations, target type X.X%. over is e-commerce property rate the end of in of These million nature and acquired of with evidence last the explosion XX% volume of in our mile activity. cap $XXX This week the properties considered $XX this in XXXX average show from

will intensity allocation property lowering We tenant operating our industrial of and believe costs, of long-term increasing improvement improving shift activities, reducing efficiencies. to in result the benefits portfolio a management our of this

is quarter facility, equity So, us to extended pursue acquisition opportunities. maturing activities and program our growth our leasing amended refinanced in our ATM credit our well mortgages, through summary, third success, positioning and and continued issued

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

Mike Sodo

for as quarter well our of Good shares. demonstrates performance $X.XX morning. in prudent recent average XX% maintaining and All first accretive respectively share available the diluted by as and share of per nine of the results both occupancy. completed the quarter share to were core and inclusive common stockholders the XXXX. XXXX. has years FFO Company numbers FFO This based reviewing per the common per third I on are in-place months the that fully of start I'll performance growth portfolio $X.XX weighted the operating for Xrd yet reference for $X.XX

X% to our same-store be an on basis. addition rent growth In annual continues to these cash accretive deals,

intend the of addressed and to the sheet continue highest years, lease in Prior to we core for our well XXXX, our of shareholders the portfolio. per past as core profitability per XXXX the grow FFO increasing rollover. as $X.XX $X.XX demonstrated as balance allocation for to the share de-levered to share, hovered number range FFO we and results industrial

Our and XX.X operating period. $XXX,XXX third including operating million quarter lease XX.X revenue expenses for as total revenues compared results contraction increase reflect an in of to to termination total the in million

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

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

put will We the going this forward. believe at leverage that us level proper

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

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

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

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

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

delayed-draw not extended existing our facility by combined facility by upsized increased This with Xnd. Goldman loan at component. with As Sachs call, years existing highly of XX majority of $XXX group, to a Bob facility million, was with million a improvement. term term in basis the only the discussed The entire also mentioned XXX July Fargo. facility the we nearly point was supported and the for extended rate being XXX including two million Wells lending and The was amended, our execution and efficient additions last was loan but credit on well

All the X.XX% in term with LIBOR continue loan borrowings to be to rate hedged caps range. X.X%

this after October totaling on new issue $XX new percent nearly a quarter preferreds, coupon existing XXX did preferred we and significant Series-E allowed a on were support, weighted million. In from institutional basis our us end, perpetual six Series-E With perspective. successfully previously five-eighth our redeem Series-E Series-B and execution and and points addition X retail the above to which basis

the efficient growth We that believe these capital. sheet backing to the capital continue for as balance speak Company achieved going been market enhancements of have and forward to transactions as incremental the prosperity with further access to bank and long-term prospects well

loans extension Looking very $XX the maturities manageable remaining and have coming no complete, in with XXXX with these credit and only million debt and loan Number are at profile XXXX recast options. our due facility of maturities XXXX. in XXXX

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

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

of stock We've during program common in sales. through raised issuing the ATM we using common and stock issuance third remained net quarter active our costs, $X.X opportunistically our million

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

As we our million under and $XX cash of $X of credit. today, have in million of availability line

at our that we significant our we feel continue information to With our incremental improve our the increase have to for during review current also quarterly improvements and portfolio our which as to and execute metrics. on posted of current financial high-quality We continue you underwriting, and operations, programs, supplement believe ATM website, upcoming encourage We and plan business we flexibility availability provides and asset XXXX properties. access our known any continuing more are about to quarter. our properties remainder detailed financial we our to the beyond, to base fund good our

deployment our with in capital on on estate. XX% occupancy bob increased by strong focused than with high-quality like. potential be Institutional expirations ownership beginning with to strong as the credit of maturities, loan current We're institutional investment at and continue minimal credit with acquisitions the stock active be estate our real will I lease manageable maintaining XXXX in and and XX% along investors, more XXth, managers, focused banks of With our meeting tenants. high near-term of of to heavily September portfolio real

its as and our We existing to chapter. next also look engaging not forward forward further only lenders, but to base, new investor coverage establishing relationships with Company analysts, moves the

And now it to give David. I'll back

David Gladstone

good Texas. recast so Company's in E as issue and well credit Temple as Tempe we're that's Austin, -- XX. in report Denton, acquiring good Mike. as It was thank properties report a a quarter, in property Texas that good and well. much, industrial September from there well very two-building loans, We've a Series industrial and Michael That shape LiCalsi right, term nice the and line in on preferred Bob the did you was All and very we Cutlip near

growing the quarters. and strong. number doing properties is the a Middle good the two to good is a great of list potential to at believe that and with very sheet. promising portfolio area acquisitions of have expect next three really business team market managing The Continue a job still they tenants over balance pace quality

our so seeing rent cranking being and pay as business. result, We good able along and are a it's to a are this in their time we be tenants to

very distribution October, a is is we year. ours, common of believe the REIT for income. attractive annual a like That's voted want October, share and cents $X.XX board In excellent This to an rate monthly December. which November, rate monthly individuals for per that a maintain per an run investment XX.X for well-managed of

we're to to but heavily the be our it in on matters again us I know going board increase asking not to strategy focused prior distribution, January. discuss policy is you're adoption, or the going to when we're

hope per make don't $X.XX. However, inflation. We do it increases. staying to year We just small some to keep at we increase up with like want to

rate We've now to record. want we do paid net trading distributions, XXX our there, $XX and you yield the we cutting we'd whole distributions, are a share. if at the over X.X% that know, hurt recession, now Stocks consecutive stock about distribution the yields is a and and common that stock about without and went and be cash it's through not universe good really at $XX.XX X.X%, was as considering

So, we to plenty still room of run. have

of I lot chance a expand even that could think further. is the there price

Stephanie help listeners and going Okay. if I'm to stop and board our ask questions. here on some some you'll of good come


Thank [Operator first of with comes Rob Janney. Instructions] from you, line Stevenson the question Your

Rob Stevenson

you hit wise guys. recent maybe seen talk of XXXX still on you largely Are of morning, acquisition transactions? for yields what's it quarter Bob, half to into pipeline still achieving about where industrial? the later been that most you've fourth sort and you've look can today? Is able like opportunity Good the the and

Bob Cutlip

transition people, we're Yes, to junior from regional $XX mean, that between copy the Rob, good are opportunities stay able focusing the engagement sweet and I in Midwest. spot where sales and per in $X to we're the and call of the we senior million seeing somewhere to what investment has because I question. I made teams sales an our pretty on team think investment excellent of of think people industrial million

Atlanta, us. the player I is is but, where are say commented, price indicated, because couple very Bob, Orgill is this had of David suburbs debt you very As of did we're a us, Atlanta, I a I go, acquisition, for and a and at in us, heck player that's stock listen, I know, We see good now, the for we're where in it our very there. this Philadelphia to the Columbus look Indy that Even some Georgia good must building. Tifton, you able a seeing player in have to is, suburbs where and Chicago of has good for buy building, wouldn't. going been

Jacksonville out industrial of there of concentration south Port the It's why the going happens Atlanta, I-XX not midway a players of to just and utilizing between be huge because Port and Brunswick port. on and the there they're of

team is feel locations ability our let's So, to that is access very here we ports, say, access our an about is really to our makes really and on and where as me types of asset focused underwrite the last mile, those indicated what being, opportunities I've to good we have have credit.

last we can those -- highly predominantly very do keeping which tenants and mean, mile, of middle I the occupied. those highly market we these underwrite in a good are job

markets rate, as holds So, of, to Gateway good. in and outside as those work if play Dallas rates sevens cap stays we in can it will is. in in and will for long us, too that high the stay be able mid-sevens so though, there are but our the price we low debt cap right to in rates, well, not still we the still let's stock because stay as markets, cap also be on talking I'm to about low-to-high GAAP be sixes, going plus to going Austin and say, able those we're

Rob Stevenson

of be dividend. selling the Okay cover office dividend sale if of does into assets terms growth, some David. sort meant -- hitting I tremendous and willing so, dividend a exploring or increase you think cushion earnings earnings earnings there, industrial How a coverage much would Obviously, that on on that triangulate there's your comments Board NAV, mean of by the and and dilution earnings you with then a dispositions. it how penny guys sort improving in take on do or of impact or of assets? and to redeploying thoughts given but the between the out not inflationary Bob about

Bob Cutlip

are look rent million not selectively is we've the I us to only said, a making of see single probably I, focused going is the that David year, from a think and payers markets, not but it increasing to us exit exit office an most exit to as property so and is which assets, $XX are dividend. and to $XX effort that reason with selectively create issue I to to standpoint, we through forward renewal disposition them, been good million we a the for want tenants these you're Mike, we have think going as non-core

our do with par, want and in worked are make line, able dramatically we're pipeline at he with now leverage feel on our when address and hard do year-over-year ratio coming going tenant less. to I going our improving can to costs feel payout are more bit the if And it David consistently extremely shift I improvement payout confident industrial and Mike the ratio our really we able line, this be and to now dividend, to that our believe with we've can to to so costs, re-tenanting much said confident where increase it. coming a which with to be in basis, start, get a little sure that in AFFO we we to earlier, we down wishes I that

David Gladstone

the smidgeons dividend ahead meeting do enough by day. same debating being in you but every of as lot. of as the a half a fund Yes, to of just of Rob, and to forever beginning static would want sort don't the year, but during move at to We bond last be with low inflation probably keep a have increases a to inflation don't with it is, and for we've little year the all this tiny been total dividend be a Board year up

give agenda January. talk So, the in because in about it's more you again that on I can't information to

Rob Stevenson

capital do of powder Okay. levels without or much And whack? then Mike, taking How for out the given you acquisitions dry additional leverage have raising raises. various capital

Mike Sodo


mention have on I $X about the cash as million we of call, million available facility. So on on made $X million today, hand, plus credit to mean, the I Rob $XX of

at doing So, deals. raising without a those million you're $XX looking dime and

have has the month you that $XX would access in and The be you at leverage, in every near XX% real liquidity. ATM I based would did of expectations a to be to robust those imply should acquisitions, did term not program say active we active could you of been deals incrementally fund If that that time the XXXX. that upon pipeline fairly the that program ATM increase million will

Rob Stevenson

Okay, thanks guys.


Your next question [Operator Instructions] it Henry Wedbush. is from Coffey the line with of

Henry Coffey

everyone. morning you is World in good tone it's or whether upbeat out the winning Yes, quarter, Series phenomenal long the time. it's I don't know putting a guys, been a but more that

we Is this everyone good really commercial active. real active. tells is estate really talked in So news, us or multifamily news the Industrial to space congratulations. is bad

think whether news -- is never properties. or that are of inflationary, new portfolio not is of inflated news this goal good values hands changing investing or is sort there Our good is whose are I attractive volume you in is someone or know at all a levels the primary there bad is market because for

are tone on Given industrial is? overall thoughts the the So, how them, what market? active your of

David Gladstone

Henry, the good. is market very

and and know, years. has here years been As small investing in years for businesses background our lending and you

tone the today marketplace. marketplace in we're and it's but and pretty to good then be real this a point in able of So the We're the The parts what that way at that's when is of say feeling terms estate we're going industrial good, are so in mid the are we other see for balance a a that. time, comfortable P&L, pain has with not feel year, sheet that in the not, we're business to tenants some we good. the of underwrite them size seeing tenant people even and

Mike Sodo

what The to asset reinforces is just I so only team of stays our to tenants close the management said. David very kind would it, and add thing that it

Our them a tenants are their and very in about growth mode. there, most are future, feeling good of

asset. type us, smaller we to on. is that encouraging The that the with focusing asset of So, are particularly

Henry Coffey

So, and...

David Gladstone

Things positive are

Henry Coffey

I is as business industrial think part. solid, know, we the other versus obviously outlook about to thinking did XXXX assets. process is would in recession, so. adjust, a very that class good, of we versus The was I be last time terms start get you asset mean, going know office I thought stronger a how you really what for

David Gladstone

as assets tenants. the all of Henry, good as these are only

we you we're and a at buying, building, when look are our leasing a we buy tenant buying we really If business, are a buying agreement.

are pay whether not, because valuation most of we we on more on some So people investigating than like or don't somebody or S&P probably can the by many that, they simply business kind in rely people rely that.

of outlook have We nicely of have normal of and in the we tenants of that. through will on recession, strong good. everybody like, retail world they but rely that else, going their and The feeling and we are next really time, our have the today we'll we'll much this maybe at but clear recession. we're point months about the tenants time, part place think is six think survive many I our off that time that of in any kind pain and so kind a If and further to vision that own very even of than what's like are in business, that a some at is analysis in I year, point kind be climate nobody the chosen and knows we've --

Henry Coffey

Great, well, very solid quarter. you, thank

David Gladstone

you Thank Henry.

Henry Coffey

you. Thank

David Gladstone

Next question.


Kucera of with question Riley line Craig is next FBR. from B. Your the

Craig Kucera

leases the in on two? the Appreciate that color is Tulsa expiring other asset the know I year. morning, industrial, good this later Hey, are three but what

Mike Sodo

those But property in Northern -- that office then of of other of Ohio, one kind and in are one Columbus, asset and Ohio, One in one one is in, XX% in the an is it, than is Ohio the is less is that in building an of -- it it's industrial XX% not Columbus, the asset the neither of of is is the that XXX% building. the Ohio. industrial,

a to we've then asset, short-term two prospects active asset a have is have probably we as well. a two opportunity that the -- for maybe Tulsa those decision from pursuing for have we're long-term assets, off months So, we and Tulsa final we and that three for there. That also opportunity

because asset office and in Ohio. Maple mixed industrial partially in the -- Heights, an we're encouraging about So, somewhat -- environment, is Columbus asset is use the excellent encouraged in

Craig Kucera

And relative rents a market you rolling where of the where at rents are are it. Got or do sense current the properties up kind of those down? and have to

Mike Sodo

I at be a Ohio, talk below the are X% based office probably right think and market, in market we're rents the above rent. brutally honest, we current at I are The our and if XX% to in then market Columbus, little the that's probably market Maple we're Tulsa there Heights about to on in asset or

Craig Kucera


Mike Sodo

that's, Heights a you long-term and get when X% at X% and leases it's feel the a very I mean the you net market, but and asset to be go escalations I with difficult correction, through into just sure. lease Maple it's good about it's to Columbus for

Craig Kucera

upwards I year. quarter you'd Got maybe to it. And XXX had this guys hit million of think XXX, acquisitions last of you thought maybe switching acquisitions, for

at far closer point? is acquisition remainder the that's maybe bit in diligence, of I enough what a probably or sort pipeline a due that this little still you're stretch you million. XX in to of and a hits this in of XX maybe maybe million, quarter, Are your think you after disclosed here range total that along

Mike Sodo

million. XXX to and think we're somewhere XXX going be I between million that

Craig Kucera


Mike Sodo

desire due million two XX selected in stage XX million not in XXX I'm for due of know to million other a just because we that just but been the but I lot intent having us have close the sellers of to those recently the items you begun -- end and going two by feel a other only very diligence, the acquisitions, sale diligence, in that and letter to be we to identifying of for of With year, negotiations, these in because range. agreement XXX purchase have the we're confident XXX

Craig Kucera

middle to we discussed, or to in market sort just understand that been is but the guys tilted it's more is when about I Got industrial, going industrial that doing, we anything of $XXX it. of mid-Western type million pipeline? what conceptually say there of And you've you pipeline shall or properties think shifting be less sort this

Mike Sodo

we're Georgia good to opportunities us very Florida Houston. and more I going will think and think Georgia, we, forward a see Dallas our surprisingly opportunities Carolina in and South in I doing a and starting South is been that Midwest in and hear us, continuing leader -- player to bit assets in for has you but see finding Central

we Southeast, otherwise, go will them really to are to it's we a out If only it the five on to and where to focused together, sense portfolio. properties a going South portfolio of that, more we're put but if it's going be far West, do makes Midwest, six So Central.

Craig Kucera

you. Okay, thank

David Gladstone


Michael LiCalsi

Next question please.


Your is Massocca of next line question Thalmann. John with from Ladenburg the

John Massocca

Good morning.

David Gladstone

Good John. morning,

John Massocca

Austin, property. that in with the that manufacturing, with that there facility anything to end focused a going happens gives asset are be what you're contract agreed came with not in there the GM So is that to of to as even Austin -- that that doing of understanding think them? labor maybe going they're that focus a GM forward understanding any up is of focus do be recently you for anything continue Was not and kind think, R&D with in there that to out what you given you kind insight

Mike Sodo

know, given entire to we auto this the direct GM. information four with an the in improve in there's industry continue movement from but the any facility have and to these being assets been them, innovation, for of country with You not innovation

with up notification interest they and mean rates period XXX,XXX in lease John. though of couple being myself well from I walked hasn't us. know, as GAAP I'm the Palmer creative probably on below foot I it notice square leave, office buildings setting to property is really really and asking Technology our even current already having you received and $X last concerned the period prospects, come indicated our elect dog current as because So overly call, $X to rate quarter's we to even hasn't the they have do, quarter, -- notice as not in the a actually may if

I Do hot, no renew? doubt they and will extremely Austin not So that but Oh, encouraged that there feel long-term. market I'm but, wish very don't being being concerned. yes, about they overly in if is that,

John Massocca

improvement opportunity portfolio that then, maybe How that maybe the us color. program how at walk existing the is the helpful is maybe energy very you some you've utilize And the clean impact set Okay, through of kind office that can impactful big your properties. of expenses? accomplished within operating of and to

Mike Sodo

I can. Well,

and costs, know It's of and XX% of have combination the jurisdiction the of a I part I cost, utility maybe of, is anywhere how to indicates say sometime you'd done summary give HVAC of lenders by at and is have it wins the them, and it's and to state not a of from the these companies can lower also You day program, a you can provide increasing program. it I'm state -- the in LED systems, and the costs, their is really enables but the taxes, program a a utility to local overall state this up. function is tenant XX% day, cost lighting, reduction that a the little analysis everybody cost, set operating knowledge, then of the in end let's but payment and the done operating equipment that but who so of who is not replace realize sometimes at end improvements in dangerous, the

John Massocca

operating to is of any in lower have it being your gross flows at But a therefore place it through kind done where lease offices and you expenses?

Mike Sodo

-- to going the It's It's tenant. benefit to going

John Massocca


Mike Sodo

part, for taxes the of any go them down, don't but put the the day that the renew. building, at the so our of is at improvements, to leases, John their everything go for because tenant, capital benefit by happens less going we actually when tenant gross the paid It's building a have the have the end our to benefit most the if which tenant is pays we above up, end, and that the is way, get to that what acquire encourages and lease we and most it's utilities property, in we the

John Massocca

moving Okay, I mean to here kind maybe loan going a sheet the you of understood. In of of to migrate usage significant the do light think of is in sheet. more the right is then forward? that balance near the term to debt And the time term? kind the strategy balance unsecured expansion,

Mike Sodo

John. question, Yes, good

a it's coupled duration we're environment I've with made a mention the track in leases. month on long appreciating is year, very financing There great attractive where is strategy long think acquisitions the past, selectively money right top I our twofold. one when LIBOR we're dual of XX as in the

roughly over to we're the on, X% to We your have to generally mortgages we $X where depreciation, of to assets. we half the of mid-to-high acquisitions want continuing we lens So, net approaching, I balance sheet properties say grow as look would aspirations of months put and range, but the next in even. XX to point, XX to of billion are the within finance at will the continue

we to would unencumbered And expanded yes, to credit asset cultivate pool like facility. continue the via our

cultivated corporate it's to or we've when for the us where getting to such get a be ultimately range. you corporate to with for in to to pool to proceeds grade forma issuances larger it palatable and to to calls unencumbered placement XX% corporate for use we place private debt XX% XX. call get in borrow. at mid-to-high an unsecured/investment the, asset we So, which Right unsecured, as time a XX% pro the roughly placement, and have to pool sits know asset of place need unencumbered We private now, our XXs

hedged rate also or continue put going duration fixed debt percentage. to the long while we're improving unencumbered on that fixed or swapped So, to books to


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

David Gladstone

We That's right, we of All this end as will call. and to you is had talk quarter. good all. quarter. the Everything a along thank expected, perking you next


and thank today's for you gentlemen this you now and wonderful participation day, have your may Ladies conference, disconnect. a concludes