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GOOD Gladstone Commercial

Participants
David Gladstone Chairman & CEO
Michael LiCalsi General Counsel & Secretary
Bob Cutlip President
Mike Sodo CFO
Barry Oxford D.A. Davidson
Gaurav Mehta National Securities
Rob Stevenson Janney
Craig Kucera B. Riley
John Massocca Ladenburg Thalmann
Call transcript
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Operator

Greetings. Welcome to Gladstone Commercial Corporation's Fiscal Year Ended December 31, 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. is conference this note being recorded. Please time, this I'll turn Mr. to over conference the At Gladstone. David Mr. begin. may you Gladstone, Mr. Gladstone, please go ahead.

David Gladstone

morning. Commercial's all thank year a appreciate this good you, you, ending Rob. is Thank for And I everybody tuning December XX, coming we for shareholders call quarterly in, XXXX. and This the regulatory Gladstone have time end. General hear and we'll LiCalsi, our concern And Counsel the We'll Secretary matters from get give good some call. hopefully these. this now on questions the to and Michael? at about Michael legal in

Michael LiCalsi

any and uncertainties factors Thanks, performance. XXXX, future these forward-looking XXXX Forms are may current all our that Many expressed including Securities we morning. and David under the of results and our on regarding materially results These or good website or could based to different cause include on be SEC XX-K, and and by website on XX-Q, SEC's Factors is forward-looking from Today's report Risk Act which be which of we other actual specifically reasonable. on Investors those documents the plans statements you statements may Securities implied file to at our this that involve our the page believe Act Exchange including with future in statements, risks find the certain www.sec.gov. forward-looking www.gladstonecommercial.com, our

is statements Operations. these law. events, discuss undertake update as Funds which no or of by as revise forward-looking result whether except we And required we of Now obligation From will publicly information, otherwise to a FFO, any today, new future or

also expenses. income, revenues and and FFO are losses the a as which non-recurring for losses property, any non-GAAP and sale other real We'll accounting of comparability adjusted discuss depreciation net excluding gains for the or certain and estate FFO, is from of assets. plus FFO Now core impairment generally on estate real adjusted amortization term defined FFO as

metrics take a our our gladstonecommercial.com; operating service. these please and comparability our are believe allow opportunity our up sign better website notification again of e-mail the visit results Now we And of better to performance. for indication period-over-period once

You keyword Today's an Gladstone our handle is Facebook, overview Twitter on The results. find can there our and @GladstoneComps. call Companies of is also us is

that on our detailed release both the website. So we ask find press more can Form issued them of XX-K, page review Again, you and Investors for you information. yesterday our

Bob? Now the Cutlip. over to President, turn I'll Gladstone baton Commercial's Bob

Bob Cutlip

you, Michael. everyone. Thank Good morning,

Alabama; volume quarter, three square totaling Pennsylvania; Pittsburgh, the Montgomery, we Alabama. and in acquired properties industrial and XXX,XXX in million feet, During Huntsville, investment fourth $XX.X

Indianapolis our to the in multi-tenant time. collected GAAP rents. over paid amounts square for in income a for XX% foot foot with XX,XXX properties million; XXX,XXX square property be $XX.X our square a a feet industrial the office executed X%, and a rental tenant quarter, been foot gain single-storey base of additional of square Sold Austin, in of No anchored cash for to of scheduled $X.X the seven seven years; XX,XXX million; single-storey remaining of extended in with lease Bolingbrook, Texas, million for rate $X.X the at $X.X a for property in lease pandemic. the cap the extended Akron, single-storey office portfolio three million, expanded office a years; million, an XX% we an rent acquired abated in our Illinois, Ohio resulting have resulting through office and XXXX, sold tenant for deferred property XX,XXX for and years Findlay, $XX January gain the distribution five Ohio end representing Champaign, X.X% Subsequent Illinois, property for of lease for collected during in

we strategy our believe, to on we're stated property calls, efficiencies. allocation, operating our investment which will earlier our improve industrial continuing As increase portfolios

During XX.X our million, of of average $XXX million, which lease providing and with XXXX, properties, volume under has weighted GAAP term an a we commitment. total at nine of investment just average of January X.X%. industrial of years, XXXX, Since investment $XXX been further all total is cap all a that acquired industrial, rate of evidence

the And years Alabama. investment remaining in term of with A remaining X.X%. acquired Our and X.X lease rate Corridor. along acquired from a with months. $XX.XX a of property GAAP of has XXX,XXX and acquisitions, cap X.X%. to primary achieving increased allocation was focus January and in XX% to total XX% XX% GAAP allocation property million XX and with of X.X Pennsylvania. lease overweight XX a properties to industrial an size continue the has We'll with will been the term industrial rate cap be improved foot years of we in lease a today GAAP the years industrial XXXX square objective Montgomery, XX square a our The a total I-XX cap within was next to investment remaining XX,XXX XXX,XXX in and in foot locations, Investment noted XXX,XXX and million Huntsville, feet. of fourth from during foot total $XX.X we million $XX.X also Pittsburgh, I-XX square ranging is rate candidates Corridor in investment opportunities X.X%. of of targeted acquisition million along I earlier, term The XXX,XXX Alabama, The quarter, as $XX.X square of property

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

team properties new the office quarter, lease, extensions, of property. lease comprised two fourth and two executed one one industrial and the During

For which by allowance improvement increased properties. full-year, X.X average rent the completed foot. weighted feet, team the line straight and per overall square XX of $X approximately tenant office X.X% lease totaling was transactions The the million square are XX

recycling program. focusing management sold and into three target We're such We'll continue and arise. properties our our proceeds this million. asset $X.X Austin, of markets. our selling program the in opportunities office asset properties $XX in in if gain Champaign, Illinois, capital a disposition in team and office products one Our of industrial resulting million continued single-storey single-storey on proceeds redeploying We gross

experience pleased and were very these with rent rent fourth and all strong, performance for continues portfolio during be Our collection XX% We're paid January cash challenging industries. XX%. our were quarter to of collections times collections tenants

cash We return on so. average next to tenants extended many tenants or be they core rent There lease as call agreed we additional thoughts for I extension encouraged two interested we're operations. space that rent we the closely those A XXXX, flow square We lease continue there relief, Their cash maintain that through represents address now by to an by per foot are over period, that additional rental them summarize same-store closing to each did relief, their to and deferrals rent stay been X,XXX will their rent are will medical team's office marketing wanted tenants. interim of in provider business year level increase the we of years, expirations The rent provider have they're objectives expiration XX%. we're us about for extensions, lease we'll and soon for and us performance to X% share as the offer to requests during Anticipating to the have the increase request expect from lease We're for respective informed and our income. as daycare in and connected and as notified X.XX% their Houston and/or about years. annual our and previous proper a return FFO lease. In our to do activities. possible. key

at issues total and future For expires quite million rent expiration line manageable. $X.X the end end million the be so and should expiring of XXXX, of $X.X of we have that annualized of November straight December,

Our to largest who a of Austin, have is formerly vacated property I GM, the vacancy at related August. end in as previously, leased

feet. the the feet beginning local the is current Commerce GAAP And quite comment Chamber from triple in five office is market reflect space in encouraging. down and square as Cushman current from foot reports from negative types the worthy XX% fourth year, effects net the I've active our assistance office Year-over-year on XX,XXX rent across which in near-term. compares property $XX approximately Our investment $XX.XX ranging rise the the favorably previous the property Research offerings property virus. COVID-XX XXX,XXX the of property for foot volume basis. of through has adverse quarter, sub the noted according the to prospects to Activity has square Market low-to-mid space of of since also sublease sales Capital with with earlier, on per resulted increased per the absorption building, viable the Analytics. onset Real all is a particularly square marketing of Wakefield at with National forecasting square the over is & conditions are of

in last and cap interest Cushman the mile, was for highest increase CBRE & and cap resulted and both is compared in absorption absorption many in rates rates XXXX in properties, Wakefield locations. select industrial product compressed the this the fact, report related XXXX, industrial continued those markets. in particularly for during products. the up e-commerce to to XXXX industrial type space And And no in has However,

listings the As relates investment pandemic, sales markets. activity it Midwest opportunities, although to moderated growth have seeing in increased we're with the

review. is building Of candidates XX of XX the three Letter are pipeline of is in the industrial. office which under $XXX properties, Intent and the volume, balance one the current approximately Our initial are in million balance properties, acquisition are representing and of stage an

is in acquisition the can actively engaged believe will opportunities staying markets team pursue. and arise we Our we will we that as

opportunities reflected well our active us summary, industrial acquisition engagement excellent collectively leasing success, and to pursue growth quarter collection rental activities we believe opportunities. identify in continued positions So to fourth and

over results, Now it capital a including let's activities. on market for turn our financial to report Mike

Mike Sodo

share I'll and diluted the fourth for Thanks stockholders on XXXX. the the common the growth were quarter available operating and were and core the average and FFO the share performance reviewing share accretive prudent of start common company numbers to weighted the well shares. per of employee's respectively. based for per by common as stockholders for $X.XX I FFO This $X.XX morning. of yet Bob. FFO to fully year All reference results respectively. demonstrates our core per Good performance FFO $X.XX $X.XX available portfolio. quarter are

to these rent our an cash basis. continues accretive on at deals, same-store grow addition annualized In to X%

charge. the reflected impairment compared expenses as $XX.X total million stable of excluding total fourth one of results revenues Our operating for to quarter $XX property million period, operating

tenant pandemic. out, to teams laid our the actively are continued We're is through times. and intend as exceptional beyond engaged the team pleased maximize these shareholder every with value ours, and Bob portfolios but of As we performance, with uncharted COVID-XX

We grow We our new years believe five that past enhance nearly through leverage. continue levels. assets focus We've away target our as XX% from financing and assets leverage we to our over maturing long-term. gross and X% refinancing, level debt reduced our the at our balance we're X% to by to sheet, on XX.X% strong decreasing lower to acquisitions leverage debt

We our increase continue debt while upsized quality to financing high primarily investments, I'll expect expand we Over credit pool with our as disciplined make will unsecured further. this property we use to through additional long-term recently describe which through acquisitions utilizing assets facility efficiently mortgage time, alternatives. grow also our

debt million The the due this $XX these repay did in $XX XXXX. today, loan week Specific quality due portfolio. to are our revolver with month million our last XXXX/XXXX this outstanding. of appropriate of and upsizing five-year recognition efficient lender coming at our the $XX new facility in including continues of component. to utilized XXXX execute We'll million the delayed credit refinance to performance borrowings to maturities at all profile term were a coming we a proceeds Looking loan on draw upsize, $XX speak amounts and time. as The of manageable million

active fourth in While issuing with equity. entering we've the been sufficient quarter liquidity,

net through Series issuance preferred we through we sales, common $X.X quarter During F million million million raised preferred of and Series stock fourth $XX.X also sales, program. raised the $X.X E through opportunistically costs, stock and our

continue activities manage we including most to equity recent sufficient requirements ensure upcoming our have to We acquisitions. our liquidity capital for that

past increased information its has for access more to Institutional under we as XX% million of Bob that overtime December and the As a be operations current portfolio fund With provides the and to continue XX% of line of you current of nearly significant over today, we stock availability to portfolio believe near quarter. our XX, the long-term. review strong our years. ownership cash increase four credit. I also as coverage our new next performance financial and $XX flexibility the very chapter. quarterly ATM financial forward encourage active we relationships supplement of with and availability, which We and programs, to on our potential our million meeting posted the and portfolio to our and have establishing in our the banks, current look investors, incremental to detailed forward We have in analysts, moves managers, approximately company to website like. $X investment

in while of Regarding the XXXX. have announced common it we increase the that dividend, first also quarter the was we stock leaving begin increase as we we’re the did small, XXXX, dividend and unchanged

have IPO not our cut in since We or XXXX. the suspended dividends

Our X.X%. turn lower stock excuse Many at at yield Wednesday; back about yields. on And the program The me is closed now trading $XX.XX. David. stock much our on Tuesday I'll REITs are to distribution

David Gladstone

year It difficult All altogether Bob too. to some very been company The a right. various COVID-XX. Cutlip the good was quarter that and nice hurt was team considering a much a Mike, perform by report from and and continues through came and government LiCalsi times. good has Michael nice to we this one reactions a not

in collections for are and Austin, a We the so collected first extensions quarter heard collected third the great in three sold quarter. good the job growing in Texas. during second we the properties, pace due We very smaller quarter, new The Texas, a really property the we XX% is the lease non-core leases we pandemic. lease is new strong in assets same transactions were And in the and today that's strong two new numbers three quarter, a especially rents is Champaign, You've all from own team quarter. estate the performance. at team during and the and at quarter, bought assets and building industrial Illinois, fourth executed We rents in one finally, the doing impressive. real the XX% sold commercial we time, managing during about quarter XX% tenants a that And the now. were the really lot own one

properties they're professionals on is of quality list to continue the Our team strong; pursue potential reviewing. acquisitions

first Our excellent investments know look acquisition we of reason strong real is the team thing They seeking time we is the that's makes quality there. tenant credit the the the buy and at. tenants we that when estate spend

pay Our asset environment market tenants company of a is value. to their first-class middle living our related managers very restrictions and up the rents that we’re, challenged at owns today. are in where stacked we're managing But actively rents the which with It's the with business that's sheet. being order any that COVID-XX. that maximize are that their deferred the past our This different our today Government's balance good tenants, on we've in tenants the to most properties of our paying times is many The like committing tenants. to is become we've negotiating

and let's listening And if stop of works come think to going here so it I'm from I questions out see some over and today. have on time, we'll that get Rob are that and will. you those in

Operator

from today be we'll a [Operator this is our Thank questions. D.A. Gladstone. question And coming first Barry Oxford session. with your with At Davidson. you, you. proceed Thank line the Please time, Instructions]. Mr. conducting question-and-answer of

Barry Oxford

Getting cap and one-storey the and we moving Bob, Great, buildings recycling selling differential? to thanks think should back rate about how capital industrial. office into the guys.

Bob Cutlip

about it relates X.X% rent in those to to, The Well, to we're with of levered as cap X.X% X.X% GAAP returns acquiring themselves and to at we're are X.XX% product selling our XX somewhere X.X%. then at but around the rate X.X% XX. to

Barry Oxford

Okay.

then thanks. -- Okay, And

Bob Cutlip

that, And one Barry. could add I thing, to if

Barry Oxford

yes. Go ahead,

Bob Cutlip

One single-storey of re-leasing do to the key is reasons that plan properties this expensive. extremely and is office we that re-tenanting

exceeds the the move tenants. that break they have tenant and has, You And The have place. cost restrooms to up let's XX,XXX square over you into out a all multiple it property say, foot single then them restrooms is we new from think drop margin when far add asset I what investing service, electrical selling re-leasing into separate an low costs. to very the demise that go very, of has

Barry Oxford

Right.

"phone seeing makes we question absolutely when bit, we the sense. shouldn't of at Now And deferrals, you that a too that XXXX? gears rent debt a bad be are expense for we're about how and many little through. think then in that Mike, through also Switching coming bulk should calls" looking

Bob Cutlip

Okay.

in as over planning rollout four from our gets and us comments, have seeing we in around until indicated is three back -- second tenants to with rent I We're second, really receive come view our third quarter, I the office the helps that's tenants across what populace. they're to that next expect connected of always my do to we're months the deferrals somewhat really Barry XXXX. to I And quarter think encouraged, I permitting. vaccine probably But more quarter. office and the every that COVID the -- a On we the think,

a have the limited rent time. get know able within we deferrals, of personal to relationship we be we'll or upcoming if I lease either And a have that the So them. very period do with extend return

Mike Sodo

Barry, expense, And rental really your of collection you're question debt there. the to and of second specific piece bad I accruals believe the referring implications to

Barry Oxford

Correct.

Mike Sodo

The guidance fairly itself continue for Collection to must that to high a solve bar accrue rents. in Ultimate of you of probability terms dictates for

rents tenants given continuing Our We was resulted on that is interim we've an childcare that their in us record. has this deferrals a growing profitable concern best that to accrue long-term interim for year property. to event, and believe XXXX they're

really square that would mention today only be X.XX% foot aware tenant. be thing that of Bob that would that So X,XXX the Medical to made we Office with

Barry Oxford

great. Okay, guys. Thanks,

Mike Sodo

you. Thank

Bob Cutlip

Thank you, Barry.

David Gladstone

Next question?

Operator

from The National line next the of with Gaurav question Securities. Mehta is

Gaurav Mehta

market, your about Austin, office some the space in vacant that's your First re-lease hoping the at if market impacting efforts question to on there? coming talk could that's was of I Austin supply you how and

Bob Cutlip

directly we're putting BAE the Gaurav, line. going product know you, encouraged to have Actually, I will but be it from that demand else actually I'll across specifics in to everyone specifics, North down. the is their the we're And about up and the very I it upcoming And is. section, so send for campus, the East get since has North, to we're slowed new the the much how space. don't on where you also

Gaurav Mehta

Okay, to they're not signing great. feedback in that prospects What up lease? why from regards getting you kind property in terms of are the of

Bob Cutlip

is through it and in property. transpired Texas, closed. Part opened, of the it With then get it that they can't first what's

demand getting Chicago. and And so demand from have West on in places Coast and the we

which so our right And other to through really of we it the is then side it. foot building, of so collected going it's business difficult. set national has and that to is the well been probably up five will a getting three probability be prospects to place as encouraged, I'm and two tenants with group, the turn on out business. a side XX,XXX now, have people of the in it'll multi-tenant two tour floor by think I plates square But brokerage I prospects of have indicated, elevator And kind through somewhat their XX,XXX wings we're take started and property had those Chamber, sales square single floor and the bank. were two a are both wings. expand their I happen have to to I have most leasing But that the seeing and own really feet, -- investment of since separate security We're each they of somewhat that the if yet mean what's can multiples were

did great building. construction the Dell the job So, design a of on and

I the a get think we can building, outcome. through going very to more And very, lot people so once positive have we're actually

Gaurav Mehta

thank you. Okay,

David Gladstone

questions? more Thanks, Gaurav. Any

Operator

the question comes of with next Janney. line from Stevenson Rob The Yes.

Rob Stevenson

morning, Good guys.

Bob Cutlip

morning, Good Rob.

Rob Stevenson

asset, table I Just whole that sale an tenant a outright explored would the that guys the this Austin you re-leasing the -- at it? a look you building return that sale point, occupy versus at to the last relevant of on when the a question, follow-up on on here is is mean

Bob Cutlip

the right, the It redeploy believe we that's one And as realize assets companies having Technology Palmer definitely that in the with exactly I mid-$XX great about too Rob, I've Corridor office all of You're would long-term, corridor, there. Gaurav, that current strong I'm in very quickly. large options. have, excited million could indicated a property to very could now. happen. multi-tenant And our capital high-tech We is I mean a gain in has industrial the basis, a right not we it's

me So it's we asset. successful of go redeploy have that a that But would also and from can asset it into industrial. going successful to the exit property assets tells class our be that we then, a preferred very

Rob Stevenson

And left larger are -- the former vacancy in space, portfolio the the the Okay. pockets is where beyond GM today? where of

Bob Cutlip

Okay.

at of the have a of Oklahoma, for Letter is have the it's two-thirds a building. port. now, prospect property property We And we out in Tulsa, that to an Intent a right industrial

positive. property a which single-storey two-thirds of converted Minneapolis. We we're And very industrial for that's been office a property, now the is in negotiating have think I to right lease

We also -- two-thirds Minneapolis have another is three-storey office that property in two-thirds leased.

make let I see, a get have We me it property let's sure right.

a property -- portion that into the a very that in vacating be We is is XX,XXX that vacant the that's adjacent tenant in medical feet, expanding good about lab a space. actually square good to is interested and to of Houston, talking have that that is what's we're that's about going And space. provider

Rob Stevenson

the that'll Okay. look to including when as to you improvements up think multiple tenants, vacancy? to into you your take you about when as incremental you cetera. be? And space and a to there get expecting meaningful cost, whatever tenant lease sort What's et are to current for How how GM ballpark shape much leasing in need of the that aggregate commissions, need it then

Bob Cutlip

You're talking about the Palmer Palmer building? --

Rob Stevenson

to sign-in cost spaces. somebody sort the going on those mean, to is it? to lease you to obviously, I space today, is -- new that a cost vacancy on a it not working take these of the to whatever a space, to what Just other but How into just today GM there's what tenant that is right you're want from only all get meaningful

Bob Cutlip

foot, foot, have $X, of improvements than let's is or more at you're to per them. you we to between the in to give rent, dollar is square talk a depending upon somewhere of $XX and GM to look $XX tenant $X to $X about have it the Well, you be GM, going then going each square a $XX cash $XX the I'll if leasing foot one The square lease. last the per of in the to commissions if probably which $XX length basis.

expect to then then of tenant then XX,XXX the to feet commissions. one for go $X the talk property about a probably commissions a that $X price you Mason going the have We're and for you're be probably a foot improvements looking And we probably lease If Catoosa, $X of Port that the vacant I per to $X are $X at to square right to in that $X a square vacancy go X,XXX XX,XXX. to in another feet. the only foot. and But that $XX square to of $X $XX foot, did property we in negotiating probably Then has Houston, XX% out be and $XX to office. for I $X between $XX plus a square it's commissions. in somewhere to a single-storey between foot now if for somewhere it's come square square And going and approximately

Rob Stevenson

Thank helpful. that's Okay, you.

it's a an you talked while continuing one special acquisition? exclusive -- What that of what's the characteristic the office the pipeline? you that pursuing have asset acquired your office terms since makes were about of that In acquisition almost been versus asset, in you industrial guys

Bob Cutlip

which correct. lease I typically makes sticky It's it for as -- facility make center it's me in is, Kansas pretty this is that which they've XX data is Missouri; we headquarters it's center Well, a like. information, let square a get a feet, it sure in size them. City, It's about facility well, XXX,XXX for the there asset data and got years. space And leases, into falls the and

we within their space, of definitely property on, months. only in going really to office, of which time the to tremendous get buy to because of months. I we'll But So indicated want a spend if we as XX our on underwrite can think emphasis company with nature the XX to actually the we see And one enduring to going XX XX%, next amount and the credit, it. get being industrial and side; Mike XX we're to XX% to remain I XX is I out

acquire office still office We're to going going we're keep multi-storey assets. to the So assets.

in in of the balance not fact, that the of exit asset We favor properties. I'm will office single-storey class.

Rob Stevenson

And that XXXX? thinking later marketed that on sold? Okay. that the how then those being the Is being just are are assets be conditions in allow, those is market held-for-sale, currently, assets about should a as being we

Mike Sodo

assets, Rob, I they those of of during sale, would the amount be for being modest process. are them months assets, in marketed for be thinking six that being could the or sold along further about very year. say those first Yes, could

Rob Stevenson

Appreciate Okay. guys. it. Thanks

Mike Sodo

Thank you.

David Gladstone

Any Okay. questions? more

Operator

Yes.

Next Riley. B. is Kucera with line Craig the from of question

Craig Kucera

good Hey, morning, guys.

Bob Cutlip

Good morning.

Craig Kucera

be thoughts, over next color what might total the of half you future I your the would helpful? that appreciate on exposure? But your it just single-storey Is dispositions. several look is monetize there the pool office of size office to years? the Or some color

Bob Cutlip

specifics. of it's was percentage. is me number of what, because And living one But It put I a exited right percentage, we're front a strategy. But in tell four No, have specifics to you our just me let over the office don't I last the objective that Mike small single-storey and by years. to now. it we get in rather no, have it. a I'll the three small

Mike Sodo

our net dispositions that Craig, thematically, -- feel we But year the $XX to range. our per million it again, $XX in million

a single-storey what makes to or half certainly it is modest intend acquire of we very more that, number up probably annually. compared as office but a So, to

Craig Kucera

not can your capacity. to but back just It debt -- of like The how is you capacity just the X-K availability. you sounds how the that sense, you're I getting and sort or wanted Got access mechanically loan term the incremental that that capacity, facility talk more additional time? overall line you And REIT about initial debt appreciate for it. color. credit over to That of $XX properties circle sort just adding makes new increases the to million, that I size by

Mike Sodo

need too marry Sure. with months that's down to are we'll again, we Without fund the them. delayed much pledged doing brain damage, acquisitions they revolver. are new fully against that it $XX the line, $XX pull in properties of draw To requisite paid-off that so debt point, million is million that $XX the and the our not secured. your coming so and million, That

"value over facility. generically upon that portfolio we -- they've every the to and it availability" been respect we buy, bought asset roughly we get we So aggregate asset But the think about within it credit a XX% Craig. with the based just or leverage just within depends for whether availability through get in year, newly

Craig Kucera

Okay.

for me. the appreciate color. I Thanks. it That's Now,

Bob Cutlip

Thanks, Okay. Craig.

David Gladstone

Any other questions?

Operator

Yes.

Massocca We have one John the of Thalmann. Ladenburg line with more question from

John Massocca

$XXX in million worth kind of think on XXXX would that. rate the guess what in will? acquisition think potential that, and do there you pipeline; of of context the target, about What maybe if you of expect mentioned the you I kind is You hit the investments the you

Bob Cutlip

Well, the target I'll talk first. about

able the relationships want because is a them because actually funds, of and also a fruition, those, assets those our Intent look redeploy into target Letter identify asset one have Letter other to and what a now. to stage, has million think some opportunities, barn we're probabilities between money the number $XXX somewhere somewhere been we stage third of is once with of that PE into Intent off-market business. a coming in the I of at be of the got we'll the third of right If to of we've $XXX John, this I history that to be get We've we going sell seeing XX% companies million had around to year. been our to

actual of will expect say that once So Intent get deals. in XX% you those stage, I we would close go Letter into fact to of to could

John Massocca

me. Okay. And very much. Thanks that's for it actually

David Gladstone

Any other questions?

Operator

questions, There are additional no Mr. Gladstone.

David Gladstone

some in good quarter. end we and this questions. tuning all thank conference call. for you asking see of And Well, you right. next That's we'll the All

Operator

us for everyone This you conference. today's today. joining Thank concludes

You may great Have lines disconnect day. this at your time. a