Exhibit 99.1 Gladstone Commercial Announces the Financial Results for the Period Ended February 14, 2003 (inception) Through December 31, 2003 MCLEAN, Va., March 10 /PRNewswire-FirstCall/ -- Gladstone Commercial Corp. (Nasdaq: GOOD) (the "Company") announces financial results for the period from February 14, 2003 (inception) through December 31, 2003. Net loss for the period was $240,871 or $0.07 per basic and diluted weighted average common share. Total assets were $105,061,370 and consisted mainly of cash and cash equivalents but also included the Company's land and building assets for its first sale-leaseback transaction which closed in December of 2003. "Net loss was expected due to our limited amount of operating history for the year and the expenses of our start up period before the public offering in August of 2003," said a spokesperson. "Our deal flow is strong and we are aggressively reviewing new investments. The market place has welcomed our sale-leaseback transactions and mortgage loans. The first quarter ending March 31, 2004 will show more positive growth." The financial statements are without footnotes so readers should obtain and carefully review our Form 10-K for the period ended December 31, 2003, including the footnotes to the financial statements contained therein. We have filed this Form 10-K today with the Securities and Exchange Commission ('SEC') which can be retrieved at the SEC website at www.SEC.gov or the web site for Gladstone Commercial at www.GladstoneCommercial.com. A paper copy can be obtained by writing to us at 1616 Anderson Road, McLean, VA 22102. Gladstone Commercial will have a conference call at 9:30am EST, March 11, 2004. Please call 1-800-784-9083 and use the ID code 410858 and you will be placed on hold until the conference starts. An operator will monitor the call and set a queue for the questions. The replay number will be available two hours after the end of the call for approximately 30 days. The replay number is 1- 888-266-2081 and use ID code 410858. For further information contact Harry Brill or Skye Breeden at 703-286-7000. Gladstone Commercial Corporation Consolidated Balance Sheet December 31, 2003 ASSETS Real estate, net $5,436,153 Cash and cash equivalents 99,075,765 Prepaid assets 191,432 Lease intangibles, net of accumulated amortization of $1,208 358,020 Total Assets $105,061,370 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Due to Adviser $234,295 Accounts payable - Dividends payable 76,420 Total liabilities 310,715 Commitments and contingencies Stockholders' Equity Common stock, $0.001 par value, 20,000,000 shares authorized, 7,642,000 and 52,000 shares issued and outstanding, respectively 7,642 Additional paid-in capital 105,060,304 Distributions in excess of accumulated earnings (76,420) Retained deficit (240,871) Total Stockholders' Equity 104,750,655 Total Liabilities and Stockholders' $105,061,370 Gladstone Commercial Corporation Consolidated Statements of Operations (Unaudited) For the Period February 14, 2003 (Inception) to December 31, 2003 OPERATING REVENUES: Rental income $12,180 OPERATING EXPENSES: Management advisory fee 317,188 Insurance 111,240 Directors fees 35,667 Professional fees 39,511 Organizational costs 5,549 Depreciation and amortization 5,827 General and administrative 42,166 Total expenses from operations 557,148 Net loss from operations (544,968) INTEREST INCOME 304,097 NET LOSS $(240,871) Basic loss per share $(0.07) Diluted loss per share $(0.07) Weighted average shares outstanding - basic 3,229,119 Weighted average shares outstanding - diluted 3,257,420 Gladstone Commercial Corporation Consolidated Statement of Cash Flows For the Period February 14, 2003 (Inception) to December 31, 2003 (Unaudited) Cash flows from operating activities: Net loss $(240,871) Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 5,827 Increase in prepaid expenses (191,432) Increase in due to Adviser 234,295 Net cash used in operating activities (192,181) Cash used in investing activities: Real estate investment (5,800,000) Cash flow from financing activities: Proceeds from share issuance, net 105,067,946 Net increase in cash and cash equivalents 99,075,765 Cash and cash equivalents, beginning of period - Cash and cash equivalents, end of period $99,075,765 This press release may include statements that may constitute "forward- looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with regard to the future performance of the Company and the closing of any transaction. Words such as "believes," "expects," "projects" and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on the Company's current plans that are believed to be reasonable as of the date of this press release. Factors that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements include, among others, those factors listed under the caption "Risk factors" of the Company's prospectus, dated August 12, 2003, as filed with the Securities and Exchange Commission on August 13, 2003. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. SOURCE Gladstone Commercial Corp. -0- 03/10/2004 /CONTACT: Harry Brill or Skye Breeden of Gladstone Commercial Corp., +1-703-286-7000/ /Web site: http://www.gladstonecommercial.com/ (GOOD) CO: Gladstone Commercial Corp. ST: Virginia IN: FIN RLT SU: CCA ERN MAV