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

Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

Subsequent Events

6 Months Ended

Jun. 30, 2020

Distributions

On July 14, 2020, our Board of Directors declared the following monthly distributions for the months of July, August and September of 2020:



Record Date	Payment Date	Common Stock and Non-controlling OP Unit Distributions per Share		Series D Preferred Distributions per Share		Series E Preferred Distributions per Share
July 24, 2020	July 31, 2020	$	0.12515	$	0.1458333	$	0.138021
August 24, 2020	August 31, 2020	0.12515		0.1458333		0.138021
September 23, 2020	September 30, 2020	0.12515		0.1458333		0.138021
		$	0.37545	$	0.4374999	$	0.414063



Senior Common Stock Distributions
Payable to the Holders of Record During the Month of:	Payment Date	Distribution per Share
July	August 5, 2020	$	0.0875
August	September 4, 2020	0.0875
September	October 5, 2020	0.0875
		$	0.2625



Series F Preferred Stock Distributions
Record Date	Payment Date	Distribution per Share
July 29, 2020	August 5, 2020	$	0.125
August 26, 2020	September 4, 2020	0.125
September 30, 2020	October 7, 2020	0.125
		$	0.375

COVID-19

As of July 27, 2020, we have collected approximately 99% of all outstanding July cash base rent obligations. In April 2020, we granted rent deferrals to three tenants representing approximately 2% of total portfolio rents. The agreements with these tenants include current partial payment in exchange for rent deferrals of varying terms with deferred amounts to be paid by the respective tenant back to us, for the period starting in July 2020 and ending through March 2021. We have received and may receive additional rent modification requests in future periods from our tenants, but we have not granted any additional rent deferrals at this time. We are unable to quantify the economic impact of these potential requests at this time.

Equity Activity

Subsequent to June 30, 2020 and through July 27, 2020, we raised $1.6 million in net proceeds from the sale of 85,000 shares of Common Stock under our Common Stock ATM Program and $1.5 million in net proceeds from the sale of 67,249 shares of Series E Preferred Stock under our Series E Preferred ATM Program.

Leasing activity

On July 8, 2020, the tenant in our Richmond, Virginia property renewed their lease for an additional six years, with a new maturity date of September 30, 2026.

Sale activity

On July 1, 2020, we sold our Maple Heights, Ohio property for $11.4 million. We recognized a gain on sale, net, of $1.2 million.

Financing activity

On July 1, 2020, we repaid the $4.0 million variable rate debt on our Maple Heights, Ohio property.

On July 14, 2020, the Company amended and restated the Advisory Agreement by entering into the Sixth Amended and Restated Investment Advisory Agreement between the Company and the Adviser (the “Amended Agreement”). The Company’s entrance into the Amended Agreement was approved by its board of directors, including, specifically, unanimously by its independent directors. The Amended Agreement revised and replaced the previous calculation of the Base Management Fee, which was based on Total Equity, with a calculation based on Gross Tangible Real Estate. The revised Base Management Fee will be payable quarterly in arrears and shall be calculated at an annual rate of 0.425% (0.10625% per quarter) of the prior calendar quarter’s “Gross Tangible Real Estate,” defined in the Amended Agreement as the current gross value of the Company’s property portfolio (meaning the aggregate of each property’s original acquisition price plus the cost of any subsequent capital improvements thereon). The calculation of the other fees in the Amended Agreement remain unchanged. The revised Base Management Fee calculation will begin with the fee calculations for the quarter ending September 30, 2020.