Business Context and Reporting Period
This Form 8-K Current Report was filed by Gladstone Commercial Corporation on December 23, 2003. The filing details the acquisition of a commercial office building located at 208 South Rogers Lane in Raleigh, North Carolina, executed through the Company's operating partnership, Gladstone Commercial Limited Partnership.
Key Financial Metrics and Transaction Details
- Acquisition Cost: $5.8 million in cash, inclusive of transaction costs.
- Funding Source: Proceeds from the Company's initial public offering in 2003.
- Property Size: 58,926 square feet.
- Occupancy: 100.0%.
- Projected Annual Rental Revenue: $513,519 (based on contractual base rent as of January 1, 2004, and May 1, 2004).
- Revenue per Occupied Square Foot: $8.71.
- Major Tenant: Elster Electricity.
- Lease Expiration: 2010.
Material Changes
The primary material change reported is the addition of the 208 South Rogers Lane asset to the Company's portfolio. The filing does not provide comparative financial data for the prior period or consolidated revenue/profit figures for the Company as a whole, as this is a specific asset acquisition report.
Guidance, Outlook, and Contingencies
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the standard nature of real estate acquisitions. However, it notes that required financial statements of the business acquired and pro forma financial information will be filed by amendment within 60 days of this report.
Investor Verification Checklist
- Verify the upcoming amendment filing (within 60 days) for the required financial statements of the acquired property and pro forma financial information.
- Confirm the lease terms and creditworthiness of the major tenant, Elster Electricity, given the 100% occupancy reliance.
- Review the Purchase Agreement (Exhibit 2.1) and Lease Agreement (Exhibit 99.1) for any contingencies or covenants not detailed in the summary.
- Assess the impact of the $5.8 million cash outflow on the Company's remaining liquidity from the 2003 IPO proceeds.