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)

3 Months Ended

Mar. 31, 2013

Real Estate and Intangible Assets [Abstract]

Company's investments in real estate, including capitalized leases


	March 31, 2013			December 31, 2012
Real estate:
Land	$	70,754		$	69,126
Building and improvements		445,297			442,451
Tenant improvements		22,458			22,176
Accumulated depreciation		(69,133	)		(65,730	)

Real estate, net	$	469,376		$	468,023

Summary of properties acquired


Location	Acquisition Date		Square Footage		Lease Term		Renewal Options	Total Purchase Price		Acquisition Expenses		Annualized Straight Line Rent		Debt Issued

Egg Harbor Township, NJ		3/28/2013		29,257		10 years	1 (5 years)	$	5,650	$	149	$	490	$	3,700

Location

Acquisition Date

Square Footage

Lease
Term

Renewal Options

Total
Purchase
Price

Acquisition
Expenses

Annualized Straight
Line Rent

Ashburn, VA

1/25/2012

52,130

15 years

2 (5 years each)

10,775

989

Fair value of acquired assets and liabilities assumed


	Land		Building		Tenant Improvements		In-place Leases		Leasing Costs		Customer Relationships		Total Purchase Price

Egg Harbor Township, NJ	$	1,627	$	2,735	$	282	$	558	$	189	$	259	$	5,650

	$	1,627	$	2,735	$	282	$	558	$	189	$	259	$	5,650


	Land		Building		Tenant Improvements		In-place Leases		Leasing Costs		Customer Relationships		Total Purchase Price

Ashburn, Virginia	$	706	$	6,551	$	1,307	$	804	$	908	$	499	$	10,775

	$	706	$	6,551	$	1,307	$	804	$	908	$	499	$	10,775

Schedule of revenue and earnings recognized on property acquired


			For the three months ended March 31, 2013
Location	Acquisition Date		Rental Revenue		Earnings ⁽¹⁾

Egg Harbor Township, NJ		3/28/2013	$	5	$	3


			$	5	$	3

⁽¹⁾	Earnings is calculated as net income less interest expense and acquisition related costs that are required to be expensed under ASC 805.

For the three months ended March 31, 2012

Location

Acquisition Date

Rental Revenue

Earnings ⁽¹⁾

Ashburn, VA

1/25/2012

183

116

(1)	Earnings is calculated as net income less interest expense and acquisition related costs that are required to be expensed under ASC 805.

Pro-forma condensed consolidated statements of operations


	For the three months ended March 31,
	2013			2012
	(unaudited)

Operating Data:
Total operating revenue	$	14,152		$	12,295
Total operating expenses		(7,186	)		(5,951	)
Other expense		(6,379	)		(5,081	)

Net income		587			1,263
Dividends attributable to preferred and senior common stock		(1,076	)		(1,042	)

Net (loss) income available to common stockholders	$	(489	)	$	221


Share and Per Share Data:
Basic & diluted (loss) earnings per share of common stock	$	(0.04	)	$	0.02
Weighted average shares outstanding-basic		11,230,647			10,945,379
Weighted average shares outstanding-diluted		11,230,647			11,006,597

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


Intangible Assets & Liabilities	2013		2012
In-place leases		10.2		15.0
Leasing costs		10.2		15.0
Customer relationships		15.2		20.0

All intangible assets & liabilities		11.9		16.7

Future operating lease payments from tenants under non-cancelable leases


Year	Tenant Lease Payments
Nine Months ending December 31, 2013	$	38,660
2014		50,811
2015		48,639
2016		45,121
2017		43,117
2018		41,007
Thereafter		236,596

Value of intangible assets and the accumulated amortization


	March 31, 2013					December 31, 2012
	Lease Intangibles		Accumulated Amortization			Lease Intangibles		Accumulated Amortization

In-place leases	$	34,643	$	(12,717	)	$	34,085	$	(12,125	)
Leasing costs		24,654		(7,583	)		24,071		(7,103	)
Customer relationships		26,930		(8,771	)		26,671		(8,345	)

	$	86,227	$	(29,071	)	$	84,827	$	(27,573	)

Estimated aggregate amortization expense


Year	Estimated Amortization Expense
Nine Months ending December 31, 2013	$	5,362
2014		6,641
2015		6,144
2016		5,420
2017		5,232
2018		4,663
Thereafter		23,694