Gladstone Commercial ( NASDAQ: GOOD ) on Wednesday posted Q4 profit and sales each falling under Wall Street expectations as a rise in SOFR rates on variable rate debt during the quarter drove a higher interest expense. Still, GLAD drifted higher by 2.2% in after-hours trading.
Q4 core FFO per share of $0.34 for the three months ended Dec. 31, 2022, missing the average analyst estimate of $0.39, declined from $0.43 for the three months ended Sept. 30, 2022.
Operating revenue of $37.22M, vs. $38.50M consensus, slid from $39.83M in the prior quarter.
"While we expect to face challenges due to the lingering effects of the pandemic, significant inflation with a corresponding increase in interest rates, and the geo-political and economic issues arising from the war in Ukraine, we feel strongly about the depth of our tenant credit underwriting," said President Buzz Cooper. The company collected 100% of cash rents due during the fourth quarter.
Total operating expenses were $26.83M, down from $37.45M in Q3.
Conference call on Feb. 23 at 8:30 a.m. ET.
Earlier, Gladstone Commercial FFO of $0.34 misses by $0.05, revenue of $37.22M misses by $1.28M .
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Gladstone Commercial Q4 profit dented by higher interest expense