Gladstone Commercial Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Real Estate and Intangible Assets (Tables)

Real Estate and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2012

Real Estate and Intangible Assets [Abstract]

Company's investments in real estate, including capitalized leases


		September 30, 2012				December 31, 2011
Real estate:
Land		$	66,258			$	60,602
Building and improvements			409,167				367,605
Tenant improvements			19,153				14,314
Accumulated depreciation			(62,459	)			(53,784	)

Real estate, net		$	432,119			$	388,737

Schedule of properties acquired


Location		Acquisition Date				Square Footage				Lease Term		Renewal Options		Total Purchase Price				Acquistion Expenses				Annualized Straight Line Rent				Debt Issued / Assumed
Ashburn, VA			1/25/2012				52,130			15 years		2 (5 years each)		$	10,775			$	102			$	989				N/A
Ottumwa, IA			5/30/2012				352,860			11.5 years		3 (5 years each)			7,100				47				684				5,000
New Albany, OH			6/5/2012				89,000			10.5 years		2 (5 years each)			13,333				188				1,361				N/A
Columbus, GA			6/21/2012				32,000			11.5 years		2 (5 years each)			7,320				126				656				4,750
Columbus, OH			6/28/2012				31,293			10 years		N/A			4,037				59				342				N/A
Jupiter, FL			9/26/2012				60,000			10.5 years		2 (5 years each)			15,500				55				1,372				10,758

Company allocated the purchase price of the properties acquired


		Land				Building				Tenant Improvements				In-place Leases				Leasing Costs				Customer Relationships				Above Market Leases				Below Market Leases				Discount on Assumed Debt				Total Purchase Price
Ashburn, VA		$	706			$	6,551			$	1,307			$	804			$	908			$	499			$	—			$	—			$	—			$	10,775
Ottumwa, IA			212				4,743				329				940				484				499				—				(107	)			—				7,100
New Albany, OH			1,658				7,511				1,235				1,122				857				903				47				—				—				13,333
Columbus, GA			1,378				3,894				626				574				473				375				—				—				—				7,320
Columbus, OH			542				1,856				597				391				213				325				113				—				—				4,037
Jupiter, FL			1,160				11,249				745				1,603				701				909				—				—				(867	)			15,500

		$	5,656			$	35,804			$	4,839			$	5,434			$	3,636			$	3,510			$	160			$	(107	)		$	(867	)		$	58,065

Schedule of revenue and net income recognized on properties acquired


				Rental Revenue								Net Income
Location		Acquisition Date		For the three months ended September 30, 2012				For the nine months ended September 30, 2012				For the three months ended September 30, 2012⁽¹⁾				For the nine months ended September 30, 2012⁽¹⁾
Ashburn, VA		1/25/2012		$	247			$	678			$	147			$	409
Ottumwa, IA		5/30/2012			173				235				85				116
New Albany, OH		6/5/2012			339				437				197				248
Columbus, GA		6/21/2012			164				182				88				98
Columbus, OH		6/28/2012			83				86				31				34
Jupiter, FL		9/26/2012			19				19				10				10

				$	1,025			$	1,637			$	558			$	915

⁽¹⁾	Does not include interest expense or acquisition related costs that are required to be expensed under ASC 805.

Pro-forma earnings


		For the three months ended September 30,								For the nine months ended September 30,
		2012				2011				2012				2011
Operating Data:
Total operating revenue		$	13,294			$	12,520			$	39,862			$	36,521
Total operating expenses			(6,161	)			(5,971	)			(18,804	)			(18,304	)
Other expense			(5,948	)			(4,735	)			(17,350	)			(14,013	)

Net income			1,185				1,814				3,708				4,204
Dividends attributable to preferred and senior common stock			(1,053	)			(1,039	)			(3,141	)			(3,117	)

Net income available to common stockholders		$	132			$	775			$	567			$	1,087

Share and Per Share Data:
Basic earnings per share of common stock		$	0.01			$	0.07			$	0.05			$	0.11
Diluted earnings per share of common stock		$	0.01			$	0.07			$	0.05			$	0.11
Weighted average shares outstanding-basic			10,945				10,936				10,945				9,998
Weighted average shares outstanding-diluted			11,039				10,988				11,023				10,050

Weighted average amortization period for the intangible assets acquired and liabilities assumed


Intangible assets & liabilities		Years
In-place leases			10.7
Leasing costs			10.7
Customer relationships			15.1
Above market leases			10.1
Below market leases			11.3

All intangible assets & liabilities			12.1

Future operating lease payments from tenants under non-cancelable leases


Year		Tenant Lease Payments
Three months ending December 31, 2012		$	12,318
2013			48,041
2014			44,784
2015			40,920
2016			36,514
2017			34,232
Thereafter			217,580

Value of intangible assets and the accumulated amortization


		September 30, 2012								December 31, 2011
		Lease Intangibles				Accumulated Amortization				Lease Intangibles				Accumulated Amortization
In-place leases		$	30,052			$	(11,577	)		$	24,620			$	(10,181	)
Leasing costs			20,245				(6,676	)			15,013				(5,663	)
Customer relationships			24,236				(7,932	)			20,725				(6,844	)

		$	74,533			$	(26,185	)		$	60,358			$	(22,688	)

Estimated aggregate amortization expense


Year		Estimated Amortization Expense
Three months ending December 31, 2012			1,803
2013			6,015
2014			5,352
2015			4,938
2016			4,323
2017			4,144
Thereafter			21,773