UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM
10-K/A
 (Amendment No. 1)
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 COMMISSION FILE NUMBER: 0-50363
 GLADSTONE COMMERCIAL CORPORATION
 (Exact name of registrant as specified in its charter)
 MARYLAND
    
    02-0681276(State or other jurisdiction of incorporation or organization)
    
    (I.R.S. Employer Identification No.)
 1521 WESTBRANCH DRIVE, SUITE 200
MCLEAN, VIRGINIA 22102  (Address of principal executive office)
 (703) 287-5800  (Registrants telephone number, including area code)
 Securities registered pursuant to Section 12(b) of the Act:Common Stock, par value $0.001 per share
    
    NASDAQ Global Market7.75% Series A Cumulative Redeemable Preferred Stock, par value $0.001 per share
    
    NASDAQ Global Market7.50% Series B Cumulative Redeemable Preferred Stock, par value $0.001 per share
    
    NASDAQ Global Market
 (Title of Each Class)
    
    
    
    (Name of exchange on which registered)
  o þ
 o þ
 þ o
 o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ




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##### 



EXPLANATORY NOTE
  PART
II
 Item 8. Financial Statements and Supplementary Data
 Index to Consolidated Financial Statements
         1




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##### 



Report of Independent Registered Public Accounting Firm
 
 Internal Control  Integrated Framework
  2




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##### 



3




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##### 



GLADSTONE COMMERCIAL CORPORATION
 CONSOLIDATED BALANCE SHEETS
 December 31, 2007
    
    
    December 31, 2006ASSETSReal estate, net of accumulated depreciation of
$15,738,634 and $8,595,419, respectively
    
    $
    324,761,772
    
    
    $
    235,118,123Lease intangibles, net of accumulated amortization of
$7,560,928 and $4,175,685, respectively
    
    
    28,989,556
    
    
    
    23,416,696Mortgage notes receivable
    
    
    10,000,000
    
    
    
    10,000,000Cash and cash equivalents
    
    
    1,356,408
    
    
    
    36,005,686Restricted cash
    
    
    1,914,067
    
    
    
    1,225,162Funds held in escrow
    
    
    1,401,695
    
    
    
    1,635,819Interest receivable  mortgage note
    
    
    86,111
    
    
    
    Interest receivable  employees
    
    
    39,280
    
    
    
    43,716Deferred rent receivable
    
    
    5,094,799
    
    
    
    3,607,279Deferred financing costs, net of accumulated amortization of
$2,184,492 and $1,467,297, respectively
    
    
    4,405,129
    
    
    
    3,713,004Prepaid expenses
    
    
    522,348
    
    
    
    521,290Deposits on real estate
    
    
    300,000
    
    
    
    300,000Accounts receivable
    
    
    31,524
    
    
    
    179,247TOTAL ASSETS
    
    $
    378,902,689
    
    
    $
    315,766,022LIABILITIES AND STOCKHOLDERS EQUITYLIABILITIESMortgage notes payable
    
    $
    202,120,471
    
    
    $
    154,494,438Short-term loan and borrowings under line of credit
    
    
    24,400,000
    
    
    
    Deferred rent liability
    
    
    3,933,035
    
    
    
    4,718,599Asset retirement obligation liability
    
    
    1,811,752
    
    
    
    1,631,294Accounts payable and accrued expenses
    
    
    778,949
    
    
    
    673,410Due to adviser
    
    
    784,301
    
    
    
    183,042Rent received in advance, security deposits and funds held in escrow
    
    
    2,706,113
    
    
    
    1,841,063Total Liabilities
    
    
    236,534,621
    
    
    
    163,541,846STOCKHOLDERS EQUITYRedeemable preferred stock, $0.001 par value; $25 liquidation
preference;
2,300,000 shares authorized and 2,150,000 shares issued and
outstanding
    
    
    2,150
    
    
    
    2,150Common stock, $0.001 par value, 17,700,000 shares authorized and
8,565,264 shares issued and outstanding
    
    
    8,565
    
    
    
    8,565Additional paid in capital
    
    
    170,640,979
    
    
    
    170,640,979Notes receivable - employees
    
    
    (2,769,923
    )
    
    
    (3,201,322
    )Distributions in excess of accumulated earnings
    
    
    (25,513,703
    )
    
    
    (15,226,196
    )Total Stockholders Equity
    
    
    142,368,068
    
    
    
    152,224,176TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    378,902,689
    
    
    $
    315,766,022
  4




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##### 



GLADSTONE COMMERCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF OPERATIONS
 For the year ended December 31,2007
    
    
    2006
    
    
    2005Operating revenuesRental income
    
    $
    31,469,297
    
    
    $
    23,964,035
    
    
    $
    10,853,903Interest income from mortgage notes receivable
    
    
    1,013,889
    
    
    
    1,845,231
    
    
    
    1,915,795Tenant recovery revenue
    
    
    310,353
    
    
    
    136,280
    
    
    
    111,808Total operating revenues
    
    
    32,793,539
    
    
    
    25,945,546
    
    
    
    12,881,506Operating expensesDepreciation and amortization
    
    
    10,528,458
    
    
    
    8,297,174
    
    
    
    3,521,128Property operating expenses
    
    
    821,790
    
    
    
    645,792
    
    
    
    406,277Base management fee
    
    
    1,858,120
    
    
    
    2,902,053
    
    
    
    2,118,040Incentive fee
    
    
    2,564,365
    
    
    
    
    
    
    
    Administration fee
    
    
    837,898
    
    
    
    
    
    
    
    Professional fees
    
    
    625,349
    
    
    
    953,066
    
    
    
    563,205Insurance
    
    
    214,141
    
    
    
    211,562
    
    
    
    196,657Directors fees
    
    
    229,000
    
    
    
    140,000
    
    
    
    96,219Stockholder related expenses
    
    
    244,629
    
    
    
    311,049
    
    
    
    215,907Asset retirement obligation expense
    
    
    116,478
    
    
    
    129,142
    
    
    
    General and administrative
    
    
    102,999
    
    
    
    82,847
    
    
    
    67,607Stock option compensation expense
    
    
    
    
    
    
    394,411
    
    
    
    Total operating expenses before credit from Adviser
    
    
    18,143,227
    
    
    
    14,067,096
    
    
    
    7,185,040Credit to incentive fee
    
    
    (2,321,597
    )
    
    
    
    
    
    
    Total operating expenses
    
    
    15,821,630
    
    
    
    14,067,096
    
    
    
    7,185,040Other income (expense)Interest income from temporary investments
    
    
    354,249
    
    
    
    76,772
    
    
    
    126,826Interest income - employee loans
    
    
    222,051
    
    
    
    125,788
    
    
    
    21,041Other income
    
    
    47,847
    
    
    
    380,915
    
    
    
    Interest expense
    
    
    (11,564,541
    )
    
    
    (9,104,894
    )
    
    
    (2,333,376
    )Total other expense
    
    
    (10,940,394
    )
    
    
    (8,521,419
    )
    
    
    (2,185,509
    )Income from continuing operations
    
    
    6,031,515
    
    
    
    3,357,031
    
    
    
    3,510,957Discontinued operations(Loss) income from discontinued operations
    
    
    (3,312
    )
    
    
    112,145
    
    
    
    309,545Net realized income (loss) from foreign currency transactions
    
    
    33,359
    
    
    
    (202,938
    )
    
    
    (6,278
    )Net unrealized loss from foreign currency transactions
    
    
    
    
    
    
    
    
    
    
    (212,279
    )Gain on sale of real estate
    
    
    
    
    
    
    1,422,026
    
    
    
    Taxes refunded (paid) on sale of real estate
    
    
    78,667
    
    
    
    (315,436
    )
    
    
    Total discontinued operations
    
    
    108,714
    
    
    
    1,015,797
    
    
    
    90,988Net income
    
    
    6,140,229
    
    
    
    4,372,828
    
    
    
    3,601,945Dividends attributable to preferred stock
    
    
    (4,093,750
    )
    
    
    (2,186,890
    )
    
    
    Net income available to common stockholders
    
    $
    2,046,479
    
    
    $
    2,185,938
    
    
    $
    3,601,945Earnings per weighted average common share - basicIncome from continuing operations (net of dividends attributable to preferred stock)
    
    $
    0.23
    
    
    $
    0.15
    
    
    $
    0.46Discontinued operations
    
    
    0.01
    
    
    
    0.13
    
    
    
    0.01Net income available to common stockholders
    
    $
    0.24
    
    
    $
    0.28
    
    
    $
    0.47Earnings per weighted average common share - dilutedIncome from continuing operations (net of dividends attributable to preferred stock)
    
    $
    0.23
    
    
    $
    0.14
    
    
    $
    0.46Discontinued operations
    
    
    0.01
    
    
    
    0.13
    
    
    
    0.01Net income available to common stockholders
    
    $
    0.24
    
    
    $
    0.27
    
    
    $
    0.47Weighted average shares outstandingBasic
    
    
    8,565,264
    
    
    
    7,827,781
    
    
    
    7,670,219Diluted
    
    
    8,565,264
    
    
    
    7,986,690
    
    
    
    7,723,220
  5




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##### 



GLADSTONE COMMERCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY
 Notes
    
    
    Distributions inCapital in
    
    
    Receivable
    
    
    Excess of
    
    
    TotalCommon
    
    
    Preferred
    
    
    Excess of
    
    
    From Sale of
    
    
    Accumulated
    
    
    StockholdersStock
    
    
    Stock
    
    
    Par Value
    
    
    Common Stock
    
    
    Earnings
    
    
    EquityIssuance of Common Stock
Under Stock Option Plan
    
    
    5
    
    
    
    
    
    
    
    74,995
    
    
    
    (75,000
    )
    
    
    
    
    
    
    Repayment of Principal on
Notes Receivable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17,718
    
    
    
    
    
    
    
    17,718Distributions Declared to
Common Stockholders
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,363,820
    )
    
    
    (7,363,820
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,601,945
    
    
    
    3,601,945Balance at December 31,
2005
    
    $
    7,672
    
    
    $
    
    
    
    $
    105,502,544
    
    
    $
    (432,282
    )
    
    $
    (6,129,398
    )
    
    $
    98,948,536Issuance of Common Stock
Under Stock Option Plan
    
    
    893
    
    
    
    
    
    
    
    13,650,453
    
    
    
    (2,769,954
    )
    
    
    
    
    
    
    10,881,392Issuance of Preferred Stock
    
    
    
    
    
    
    2,150
    
    
    
    53,747,850
    
    
    
    
    
    
    
    
    
    
    
    53,750,000Public Offering Costs
    
    
    
    
    
    
    
    
    
    
    (2,654,279
    )
    
    
    
    
    
    
    
    
    
    
    (2,654,279
    )Stock Option Compensation
Expense
    
    
    
    
    
    
    
    
    
    
    394,411
    
    
    
    
    
    
    
    
    
    
    
    394,411Repayment of Principal on
Notes Receivable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    914
    
    
    
    
    
    
    
    914Distributions Declared to
Common and Preferred
Stockholders
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (13,469,626
    )
    
    
    (13,469,626
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,372,828
    
    
    
    4,372,828Balance at December 31,
2006
    
    $
    8,565
    
    
    $
    2,150
    
    
    $
    170,640,979
    
    
    $
    (3,201,322
    )
    
    $
    (15,226,196
    )
    
    $
    152,224,176Repayment of Principal on
Notes Receivable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    431,399
    
    
    
    
    
    
    
    431,399Distributions Declared to
Common and Preferred
Stockholders
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (16,427,736
    )
    
    
    (16,427,736
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,140,229
    
    
    
    6,140,229Balance at December 31,
2007
    
    $
    8,565
    
    
    $
    2,150
    
    
    $
    170,640,979
    
    
    $
    (2,769,923
    )
    
    $
    (25,513,703
    )
    
    $
    142,368,068
  6




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##### 



GLADSTONE COMMERCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 For the year ended December 31,2007
    
    
    2006
    
    
    2005Cash flows from operating activities:Net income
    
    $
    6,140,229
    
    
    $
    4,372,828
    
    
    $
    3,601,945Adjustments to reconcile net income to net cash
provided by operating activities:Depreciation and amortization, including discontinued operations
    
    
    10,528,458
    
    
    
    8,349,474
    
    
    
    3,651,119Amortization of deferred financing costs, including discontinued operations
    
    
    717,195
    
    
    
    1,207,198
    
    
    
    260,099Amortization of deferred rent asset
    
    
    253,496
    
    
    
    253,496
    
    
    
    178,070Amortization of deferred rent liability
    
    
    (785,564
    )
    
    
    (696,261
    )
    
    
    Asset retirement obligation expense, including discontinued operations
    
    
    116,478
    
    
    
    139,074
    
    
    
    Stock compensation
    
    
    
    
    
    
    394,411
    
    
    
    Increase in mortgage notes payable due to change in value of foreign currency
    
    
    
    
    
    
    202,066
    
    
    
    209,395Value of building acquired in excess of mortgage note satisfied, applied to interest income
    
    
    
    
    
    
    (335,701
    )
    
    
    Gain on sale of real estate
    
    
    
    
    
    
    (1,422,026
    )
    
    
    (Increase) decrease in mortgage interest receivable
    
    
    (86,111
    )
    
    
    70,749
    
    
    
    (5,954
    )Decrease (increase) in employee interest receivable
    
    
    4,436
    
    
    
    (43,716
    )
    
    
    4,792Increase in deferred rent receivable
    
    
    (1,741,016
    )
    
    
    (1,270,159
    )
    
    
    (562,133
    )Decrease (increase) in prepaid expenses and other assets
    
    
    146,665
    
    
    
    (89,913
    )
    
    
    (425,120
    )Increase in accounts payable, accrued expenses, and amount due adviser
    
    
    625,398
    
    
    
    196,294
    
    
    
    359,537Increase in rent received in advance
    
    
    176,145
    
    
    
    268,037
    
    
    
    133,798Net cash provided by operating activities
    
    
    16,095,809
    
    
    
    11,595,851
    
    
    
    7,405,548Cash flows from investing activities:Real estate investments
    
    
    (105,599,587
    )
    
    
    (48,339,307
    )
    
    
    (117,531,731
    )Proceeds from sales of real estate
    
    
    
    
    
    
    2,102,567
    
    
    
    Issuance of mortgage note receivable
    
    
    
    
    
    
    
    
    
    
    (10,000,000
    )Principal repayments on mortgage notes receivable
    
    
    
    
    
    
    44,742
    
    
    
    81,902Net payments to lenders for reserves held in escrow
    
    
    (1,338,904
    )
    
    
    (3,346,216
    )
    
    
    (1,041,292
    )(Decrease) increase in restricted cash
    
    
    (688,905
    )
    
    
    749,274
    
    
    
    (513,761
    )Deposits on future acquisitions
    
    
    (2,110,000
    )
    
    
    (900,000
    )
    
    
    (2,686,000
    )Deposits applied against real estate investments
    
    
    2,110,000
    
    
    
    1,200,000
    
    
    
    1,986,000Refunds of deposits on real estate
    
    
    
    
    
    
    
    
    
    
    150,000Net cash used in investing activities
    
    
    (107,627,396
    )
    
    
    (48,488,940
    )
    
    
    (129,554,882
    )Cash flows from financing activities:Proceeds from share issuance
    
    
    
    
    
    
    65,089,026
    
    
    
    Redemption of shares for payment of taxes
    
    
    
    
    
    
    (457,634
    )
    
    
    Offering costs
    
    
    
    
    
    
    (2,654,279
    )
    
    
    Borrowings under mortgage notes payable
    
    
    48,521,690
    
    
    
    68,055,000
    
    
    
    61,419,179Principal repayments on mortgage notes payable
    
    
    (895,657
    )
    
    
    (604,318
    )
    
    
    (70,479
    )Principal repayments on employee notes receivable from sale of common stock
    
    
    431,399
    
    
    
    914
    
    
    
    17,718Borrowings from short-term loan and line of credit
    
    
    65,500,000
    
    
    
    71,400,400
    
    
    
    85,460,000Repayments on line of credit
    
    
    (41,100,000
    )
    
    
    (114,960,400
    )
    
    
    (41,900,000
    )Increase in reserves from tenants
    
    
    1,885,361
    
    
    
    1,574,464
    
    
    
    158,646Increase in security deposits
    
    
    376,572
    
    
    
    427,951
    
    
    
    355,115Payments for deferred financing costs
    
    
    (1,409,320
    )
    
    
    (3,242,881
    )
    
    
    (2,021,115
    )Dividends paid for common and preferred
    
    
    (16,427,736
    )
    
    
    (13,469,627
    )
    
    
    (8,283,860
    )Net cash provided by financing activities
    
    
    56,882,309
    
    
    
    71,158,616
    
    
    
    95,135,204Net (decrease) increase in cash and cash equivalents
    
    
    (34,649,278
    )
    
    
    34,265,527
    
    
    
    (27,014,130
    )Cash and cash equivalents, beginning of period
    
    
    36,005,686
    
    
    
    1,740,159
    
    
    
    28,754,289Cash and cash equivalents, end of period
    
    $
    1,356,408
    
    
    $
    36,005,686
    
    
    $
    1,740,159Cash paid during period for interest
    
    $
    10,693,440
    
    
    $
    8,045,342
    
    
    $
    2,014,236NON-CASH INVESTING ACTIVITIESIncrease in asset retirement obligation
    
    $
    180,458
    
    
    $
    1,631,294
    
    
    $
    Additions to real estate included in accounts payable, accrued expenses, and amount due
adviser
    
    $
    81,400
    
    
    $
    
    
    
    $
    NON-CASH FINANCING ACTIVITIESFixed rate debt assumed in connection with acquisitions
    
    $
    4,506,689
    
    
    $
    30,129,654
    
    
    $
    Assumption of mortgage notes payable by buyer
    
    $
    
    
    
    $
    4,846,925
    
    
    $
    Notes receivable issued in exchange for common stock associated with the exercise of
employee stock options
    
    $
    
    
    
    $
    2,769,954
    
    
    $
    75,000Acquisition of building in satisfaction of mortgage note receivable
    
    $
    
    
    
    $
    11,316,774
    
    
    $
    
  7




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##### 



GLADSTONE COMMERCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 1. Organization and Significant Accounting Policies
  Subsidiaries
      8




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##### 



Investments in real estate
       9




---



##### 



December 31, 2007
    
    
    December 31, 2006Accumulated
    
    
    
    
    
    
    AccumulatedLease Intangibles
    
    
    Amortization
    
    
    Lease Intangibles
    
    
    AmortizationIn-place leases
    
    $
    12,660,732
    
    
    $
    (3,414,868
    )
    
    $
    10,738,319
    
    
    $
    (1,907,668
    )Leasing costs
    
    
    9,290,026
    
    
    
    (2,114,233
    )
    
    
    5,891,099
    
    
    
    (1,267,829
    )Customer relationships
    
    
    14,599,726
    
    
    
    (2,031,827
    )
    
    
    10,962,963
    
    
    
    (1,000,188
    )$
    36,550,484
    
    
    $
    (7,560,928
    )
    
    $
    27,592,381
    
    
    $
    (4,175,685
    )
  EstimatedYear
    
    Amortization Expense2008
    
    $
    3,442,8882009
    
    
    3,314,5272010
    
    
    3,232,4332011
    
    
    3,089,1692012
    
    
    2,736,211
 Impairment
 Investments in Real Estate
  10




---



##### 



Provision for Loan Losses
  Cash and cash equivalents
  Restricted cash
  Funds held in escrow
  Deferred financing costs
  Revenue recognition
  11




---



##### 



Income taxes
    12




---



##### 



Segment information
  Foreign Currency Transactions
  Asset retirement obligations
  13




---



##### 



Real estate held for sale and discontinued operations
  Recently Issued Accounting Pronouncements
 
    14




---



##### 



Use of estimates
  Reclassifications
  2. Management Advisory Fee
  Initial Advisory Agreement
   Amended Advisory Agreement
  15




---



##### 



Administration Agreement
  3. Stock Options
    16




---



##### 



For the year endedDecember 31, 2005Net income, as reported
    
    $
    3,601,945Less: Stock-based compensation expense
determined using the fair value based method
    
    
    (187,483
    )Net income, pro-forma
    
    $
    3,414,462Basic, as reported
    
    $
    0.47Basic, pro-forma
    
    $
    0.45Diluted, as reported
    
    $
    0.47Diluted, pro-forma
    
    $
    0.44
   Weighted AverageShares
    
    Exercise PriceOptions outstanding at February 14, 2003
    
    
    Granted
    
    
    629,000
    
    
    $
    15.00Exercised
    
    
    Options outstanding at December 31, 2003, of which 629,000
shares were exercisable
    
    
    629,000
    
    
    $
    15.00Granted
    
    
    280,000
    
    
    $
    16.22Exercised
    
    
    (25,000
    )
    
    $
    15.00Forfeited
    
    
    (15,000
    )
    
    $
    15.73Options outstanding at December 31, 2004, of which 599,000
shares were exercisable
    
    
    869,000
    
    
    $
    15.39Granted
    
    
    64,500
    
    
    $
    15.47Exercised
    
    
    (5,000
    )
    
    $
    15.00Forfeited
    
    
    (12,500
    )
    
    $
    15.48Options outstanding at December 31, 2005, of which 744,250
shares were exercisable
    
    
    916,000
    
    
    $
    15.39Granted
    
    
    
    
    
    $
    Exercised
    
    
    (916,000
    )
    
    $
    15.40Forfeited
    
    
    
    
    
    $
    Options outstanding and exercisable at December 31, 2006
    
    
    
    
    
    $
    
 17




---



##### 



OutstandingNumber of
    
    
    Strike Price
    
    
    Amount of
    
    
    Balance ofOptions
    
    
    of Options
    
    
    Promissory Note
    
    
    Employee Loans
    
    
    
    
    
    
    Interest RateDate Issued
    
    
    
    
    Exercised
    
    
    Exercised
    
    
    Issued to Employees
    
    
    at 12/31/07
    
    
    Term of Note
    
    
    on NoteSep-04
    
    
    
    
    25,000
    
    
    $
    15.00
    
    
    $
    375,000
    
    
    $
    368,161
    
    
    9 years
    
    
    5.00
    %May-05
    
    
    
    
    5,000
    
    
    
    15.00
    
    
    
    75,000
    
    
    
    57,796
    
    
    9 years
    
    
    6.00
    %Apr-06
    
    
    
    
    12,422
    
    
    
    16.10
    
    
    
    199,994
    
    
    
    199,994
    
    
    9 years
    
    
    7.77
    %May-06
    
    
    
    
    50,000
    
    
    
    16.85
    
    
    
    842,500
    
    
    
    842,500
    
    
    10 years
    
    
    7.87
    %May-06
    
    
    
    
    15,000
    
    
    
    16.10
    
    
    
    241,500
    
    
    
    241,500
    
    
    10 years
    
    
    7.87
    %May-06
    
    
    
    
    2,500
    
    
    
    16.01
    
    
    
    40,000
    
    
    
    39,012
    
    
    10 years
    
    
    7.87
    %May-06
    
    
    
    
    2,000
    
    
    
    16.10
    
    
    
    32,200
    
    
    
    32,200
    
    
    10 years
    
    
    7.87
    %May-06
    
    
    
    
    2,000
    
    
    
    16.10
    
    
    
    32,200
    
    
    
    32,200
    
    
    10 years
    
    
    7.87
    %May-06
    
    
    
    
    2,000
    
    
    
    16.68
    
    
    
    33,360
    
    
    
    33,360
    
    
    10 years
    
    
    7.87
    %May-06
    
    
    
    
    2,000
    
    
    
    15.00
    
    
    
    30,000
    
    
    
    30,000
    
    
    10 years
    
    
    7.87
    %Oct-06
    
    
    
    
    12,000
    
    
    
    16.10
    
    
    
    193,200
    
    
    
    193,200
    
    
    9 years
    
    
    8.17
    %Nov-06
    
    
    
    
    25,000
    
    
    
    15.00
    
    
    
    375,000
    
    
    
    325,000
    
    
    9 years
    
    
    8.15
    %Dec-06
    
    
    
    
    25,000
    
    
    
    15.00
    
    
    
    375,000
    
    
    
    375,000
    
    
    10 years
    
    
    8.12
    %204,922
    
    
    
    
    
    
    $
    3,219,954
    
    
    $
    2,769,923
  4. Earnings per Common Share
  For the year ended December 31,2007
    
    
    2006
    
    
    2005Net income available to common stockholders
    
    $
    2,046,479
    
    
    $
    2,185,938
    
    
    $
    3,601,945Denominator for basic weighted average
shares
    
    
    8,565,264
    
    
    
    7,827,781
    
    
    
    7,670,219Dilutive effect of stock options
    
    
    
    
    
    
    158,909
    
    
    
    53,001Denominator for diluted weighted average
shares
    
    
    8,565,264
    
    
    
    7,986,690
    
    
    
    7,723,220Basic earnings per common share
    
    $
    0.24
    
    
    $
    0.28
    
    
    $
    0.47Diluted earnings per common share
    
    $
    0.24
    
    
    $
    0.27
    
    
    $
    0.47
 18




---



##### 



5. Real Estate
  (unaudited)Date Acquired
    
    Location
    
    Square Footage
    
    
    Property Description
    
    Net Real EstateDec-03
    
    Raleigh, North Carolina
    
    
    58,926
    
    
    Office
    
    $
    4,628,337Jan-04
    
    Canton, Ohio
    
    
    54,018
    
    
    Office and Warehouse
    
    
    2,923,963Apr-04
    
    Akron, Ohio
    
    
    83,891
    
    
    Office and Laboratory
    
    
    8,106,036Jun-04
    
    Charlotte, North Carolina
    
    
    64,500
    
    
    Office
    
    
    8,451,345Jul-04
    
    Canton, North Carolina
    
    
    228,000
    
    
    Commercial and Manufacturing
    
    
    4,749,579Aug-04
    
    Snyder Township, Pennsylvania
    
    
    290,000
    
    
    Commercial and Warehouse
    
    
    6,102,338Aug-04
    
    Lexington, North Carolina
    
    
    154,000
    
    
    Commercial and Warehouse
    
    
    2,778,380Sep-04
    
    Austin, Texas
    
    
    51,933
    
    
    Flexible Office
    
    
    6,803,840Oct-04
    
    Norfolk, Virginia
    
    
    25,797
    
    
    Commercial and Manufacturing
    
    
    885,442Oct-04
    
    Mt. Pocono, Pennsylvania
    
    
    223,275
    
    
    Commercial and Manufacturing
    
    
    5,699,851Feb-05
    
    San Antonio, Texas
    
    
    60,245
    
    
    Flexible Office
    
    
    7,638,439Feb-05
    
    Columbus, Ohio
    
    
    39,000
    
    
    Industrial
    
    
    2,615,717Apr-05
    
    Big Flats, New York
    
    
    120,000
    
    
    Industrial
    
    
    6,310,146May-05
    
    Wichita, Kansas
    
    
    69,287
    
    
    Office
    
    
    10,577,368May-05
    
    Arlington, Texas
    
    
    64,000
    
    
    Warehouse and Bakery
    
    
    3,857,133Jun-05
    
    Dayton, Ohio
    
    
    59,894
    
    
    Office
    
    
    2,339,980Jul-05
    
    Eatontown, New Jersey
    
    
    30,268
    
    
    Office
    
    
    4,606,747Jul-05
    
    Franklin Township, New Jersey
    
    
    183,000
    
    
    Office and Warehouse
    
    
    7,439,940Jul-05
    
    Duncan, South Carolina
    
    
    278,020
    
    
    Office and Manufacturing
    
    
    15,415,164Aug-05
    
    Hazelwood, Missouri
    
    
    51,155
    
    
    Office and Warehouse
    
    
    2,950,754Sep-05
    
    Angola, Indiana
    
    
    52,080
    
    
    Industrial
    
    
    1,116,968Sep-05
    
    Angola, Indiana
    
    
    50,000
    
    
    Industrial
    
    
    1,116,968Sep-05
    
    Rock Falls, Illinois
    
    
    52,000
    
    
    Industrial
    
    
    1,116,969Oct-05
    
    Newburyport, Massachusetts
    
    
    70,598
    
    
    Industrial
    
    
    6,798,268Oct-05
    
    Clintonville, Wisconsin
    
    
    291,142
    
    
    Industrial
    
    
    4,502,040Dec-05
    
    Maple Heights, Ohio
    
    
    347,218
    
    
    Industrial
    
    
    11,099,726Dec-05
    
    Richmond, Virginia
    
    
    42,213
    
    
    Office
    
    
    5,809,099Dec-05
    
    Toledo, Ohio
    
    
    23,368
    
    
    Office
    
    
    2,939,026Feb-06
    
    South Hadley, Massachusetts
    
    
    150,000
    
    
    Industrial
    
    
    3,113,051Feb-06
    
    Champaign, Illinois
    
    
    108,262
    
    
    Office
    
    
    13,878,032Feb-06
    
    Roseville, Minnesota
    
    
    359,540
    
    
    Office
    
    
    26,408,409May-06
    
    Burnsville, Minnesota
    
    
    114,100
    
    
    Office
    
    
    11,768,380Jun-06
    
    Menomonee Falls, Wisconsin
    
    
    125,692
    
    
    Industrial
    
    
    7,265,105Jul-06
    
    Baytown, Texas
    
    
    12,000
    
    
    Office
    
    
    2,558,544Sep-06
    
    Sterling Heights, Michigan
    
    
    532,869
    
    
    Industrial
    
    
    11,072,192Sep-06
    
    Birmingham, Alabama
    
    
    63,514
    
    
    Industrial
    
    
    1,527,220Sep-06
    
    Montgomery, Alabama
    
    
    29,472
    
    
    Industrial
    
    
    1,527,220Sep-06
    
    Columbia, Missouri
    
    
    16,275
    
    
    Industrial
    
    
    1,527,220Jan-07
    
    Mason, Ohio
    
    
    60,000
    
    
    Office
    
    
    6,856,787Feb-07
    
    Raleigh, North Carolina
    
    
    115,500
    
    
    Industrial
    
    
    6,993,551Mar-07
    
    Tulsa, Oklahoma
    
    
    238,310
    
    
    Manufacturing
    
    
    13,706,553Mar-07
    
    Hialeah, Florida
    
    
    132,337
    
    
    Industrial
    
    
    10,094,438May-07
    
    Tewksbury, Massachusetts
    
    
    102,200
    
    
    Industrial
    
    
    10,134,413Jul-07
    
    Mason, Ohio
    
    
    21,264
    
    
    Retail
    
    
    6,101,665Sep-07
    
    Cicero, New York
    
    
    71,880
    
    
    Industrial
    
    
    5,276,588Sep-07
    
    Grand Rapids, Michigan
    
    
    63,235
    
    
    Office
    
    
    12,052,923Sep-07
    
    Bolingbrook, Illinois
    
    
    55,869
    
    
    Industrial
    
    
    6,238,674Dec-07
    
    Decatur, Georgia
    
    
    26,600
    
    
    Office
    
    
    2,880,207Dec-07
    
    Lawrenceville, Georgia
    
    
    12,412
    
    
    Office
    
    
    2,880,207Dec-07
    
    Snellville, Georgia
    
    
    3,800
    
    
    Office
    
    
    2,880,207Dec-07
    
    Covington, Georgia
    
    
    5,000
    
    
    Office
    
    
    2,880,207Dec-07
    
    Cumming, Georgia
    
    
    13,919
    
    
    Office
    
    
    2,880,208Dec-07
    
    Conyers, Georgia
    
    
    6,400
    
    
    Office
    
    
    2,880,208Total real estate, net
    
    
    5,558,278
    
    
    
    
    $
    324,761,772
 19




---



##### 



December 31, 2007
    
    
    December 31, 2006Real estate:Land
    
    $
    48,867,482
    
    
    $
    33,764,113Building
    
    
    283,829,987
    
    
    
    204,115,481Tenant improvements
    
    
    7,802,937
    
    
    
    5,833,948Accumulated depreciation
    
    
    (15,738,634
    )
    
    
    (8,595,419
    )Real estate, net
    
    $
    324,761,772
    
    
    $
    235,118,123
      20




---



##### 



21




---



##### 



Tenant
    
    
    
    
    
    
    
    
    
    Customer
    
    
    Total PurchaseLand
    
    
    Building
    
    
    Improvements
    
    
    In-place leases
    
    
    Leasing Costs
    
    
    relationships
    
    
    PriceMason, Ohio
    
    $
    797,274
    
    
    $
    5,962,067
    
    
    $
    296,277
    
    
    $
    
    
    
    $
    144,703
    
    
    $
    683,471
    
    
    $
    7,883,792Raleigh, North Carolina
    
    
    1,605,551
    
    
    
    5,464,586
    
    
    
    48,767
    
    
    
    142,209
    
    
    
    64,110
    
    
    
    478,083
    
    
    
    7,803,306Tulsa, Oklahoma
    
    
    
    
    
    
    13,858,489
    
    
    
    198,738
    
    
    
    437,117
    
    
    
    587,605
    
    
    
    723,168
    
    
    
    15,805,117Hialeah, Florida
    
    
    3,562,455
    
    
    
    6,619,258
    
    
    
    
    
    
    
    
    
    
    
    817
    
    
    
    104,508
    
    
    
    10,287,038Tewksbury,
Massachusetts
    
    
    1,394,902
    
    
    
    8,637,010
    
    
    
    256,233
    
    
    
    421,446
    
    
    
    865
    
    
    
    535,416
    
    
    
    11,245,872Mason, Ohio
    
    
    1,201,338
    
    
    
    4,854,457
    
    
    
    106,439
    
    
    
    
    
    
    
    416,142
    
    
    
    189,699
    
    
    
    6,768,075Cicero, New York
    
    
    299,066
    
    
    
    5,018,628
    
    
    
    
    
    
    
    151,734
    
    
    
    226,998
    
    
    
    114,505
    
    
    
    5,810,931Grand Rapids, Michigan
    
    
    1,629,270
    
    
    
    10,196,137
    
    
    
    303,929
    
    
    
    
    
    
    
    246,042
    
    
    
    
    
    
    
    12,375,378Bolingbrook, Illinois
    
    
    1,271,543
    
    
    
    4,926,314
    
    
    
    76,157
    
    
    
    287,488
    
    
    
    146,364
    
    
    
    
    
    
    
    6,707,866Decatur, Georgia
    
    
    1,300,963
    
    
    
    4,836,034
    
    
    
    250,341
    
    
    
    190,506
    
    
    
    357,834
    
    
    
    287,054
    
    
    
    7,222,732Lawrenceville, Georgia
    
    
    521,243
    
    
    
    2,817,869
    
    
    
    134,276
    
    
    
    100,375
    
    
    
    188,625
    
    
    
    172,103
    
    
    
    3,934,491Snellville, Georgia
    
    
    449,406
    
    
    
    429,012
    
    
    
    37,570
    
    
    
    21,750
    
    
    
    43,097
    
    
    
    39,955
    
    
    
    1,020,790Covington, Georgia
    
    
    199,451
    
    
    
    944,807
    
    
    
    49,863
    
    
    
    31,460
    
    
    
    60,858
    
    
    
    57,743
    
    
    
    1,344,182Cumming, Georgia
    
    
    670,284
    
    
    
    2,984,821
    
    
    
    146,609
    
    
    
    97,781
    
    
    
    202,017
    
    
    
    177,026
    
    
    
    4,278,538Conyers, Georgia
    
    
    226,526
    
    
    
    1,237,558
    
    
    
    63,790
    
    
    
    40,547
    
    
    
    78,203
    
    
    
    74,029
    
    
    
    1,720,653$
    15,129,272
    
    
    $
    78,787,047
    
    
    $
    1,968,989
    
    
    $
    1,922,413
    
    
    $
    2,764,280
    
    
    $
    3,636,760
    
    
    $
    104,208,761
   Year
    
    Lease Payments2008
    
    $
    33,349,4112009
    
    
    32,781,8972010
    
    
    32,455,8032011
    
    
    31,969,6232012
    
    
    31,208,006Thereafter
    
    
    150,643,238
  6. Discontinued Operations
  22




---



##### 



For the year ended December 31,2007
    
    
    2006
    
    
    2005Operating revenue
    
    $
    
    
    
    $
    342,629
    
    
    $
    583,830Operating expense
    
    
    (3,312
    )
    
    
    (22,732
    )
    
    
    (23,537
    )Taxes & licenses
    
    
    78,667
    
    
    
    (11,736
    )
    
    
    (6,448
    )Interest expense
    
    
    
    
    
    
    (143,716
    )
    
    
    (114,309
    )Depreciation expense
    
    
    
    
    
    
    (52,300
    )
    
    
    (129,991
    )Gain on sale of real estate
    
    
    
    
    
    
    1,106,590
    
    
    
    Realized and unrealized gain
(loss) on foreign currency
transactions
    
    
    33,359
    
    
    
    (202,938
    )
    
    
    (218,557
    )Income from discontinued
operations
    
    $
    108,714
    
    
    $
    1,015,797
    
    
    $
    90,988
 7. Mortgage Note Receivable
  8. Mortgage Notes Payable
  23




---



##### 



Date of Issuance
    
    
    
    
    
    Principal Maturity
    
    
    
    
    
    
    Principal Balance Outstandingof Note
    
    
    
    
    
    Date
    
    
    Interest Rate
    
    December 31, 2007
    
    
    December 31, 20063/16/2005
    
    
    
    
    
    
    4/1/2030
    
    
    
    6.33
    %
    
    $
    3,003,582
    
    
    $
    3,060,0938/25/2005
    
    
    
    
    
    
    9/1/2015
    
    
    
    5.33
    %
    
    
    21,664,476
    
    
    
    21,757,0009/12/2005
    
    
    
    
    
    
    9/1/2015
    
    
    
    5.21
    %
    
    
    12,588,000
    
    
    
    12,588,00012/21/2005
    
    
    
    
    
    
    12/8/2015
    
    
    
    5.71
    %
    
    
    19,456,000
    
    
    
    19,456,0002/21/2006
    
    
    
    
    
    
    12/1/2013
    
    
    
    5.91
    %
    
    
    9,480,063
    
    
    
    9,620,0502/21/2006
    
    
    
    
    
    
    6/30/2014
    
    
    
    5.20
    %
    
    
    19,782,270
    
    
    
    20,104,7163/29/2006
    
    
    
    
    
    
    4/1/2016
    
    
    
    5.92
    %
    
    
    17,000,000
    
    
    
    17,000,0004/27/2006
    
    
    
    
    
    
    5/5/2016
    
    
    
    6.58
    %
    
    
    14,514,214
    
    
    
    14,753,57911/22/2006
    
    
    
    
    
    
    12/1/2016
    
    
    
    5.76
    %
    
    
    14,309,000
    
    
    
    14,309,00012/22/2006
    
    
    
    
    
    
    1/1/2017
    
    
    
    5.79
    %
    
    
    21,846,000
    
    
    
    21,846,0002/8/2007
    
    
    
    
    
    
    3/1/2017
    
    
    
    6.00
    %
    
    
    13,775,000
    
    
    
    6/5/2007
    
    
    
    
    
    
    6/8/2017
    
    
    
    6.11
    %
    
    
    14,240,000
    
    
    
    9/6/2007
    
    
    
    
    
    
    12/11/2015
    
    
    
    5.81
    %
    
    
    4,487,205
    
    
    
    10/15/2007
    
    
    
    
    
    
    11/8/2017
    
    
    
    6.63
    %
    
    
    15,974,661
    
    
    
    $
    202,120,471
    
    
    $
    154,494,438
   Scheduled principalYear
    
    payments2008
    
    $
    1,594,3922009
    
    
    2,254,4702010
    
    
    2,389,8062011
    
    
    2,676,9072012
    
    
    2,953,229Thereafter
    
    
    190,251,667$
    202,120,471
   24




---



##### 



9. Stockholders Equity
    25




---



##### 



Long-TermOrdinary Income
    
    Return of Capital
    
    Capital GainsCommon StockFor the year ended
December 31, 2004
    
    
    68.97050
    %
    
    
    31.02945
    %
    
    
    0.00000
    %For the year ended
December 31, 2005
    
    
    50.44580
    %
    
    
    49.55420
    %
    
    
    0.00000
    %For the year ended
December 31, 2006
    
    
    2.06500
    %
    
    
    95.60560
    %
    
    
    2.32940
    %For the year ended
December 31, 2007
    
    
    25.86040
    %
    
    
    74.13960
    %
    
    
    0.00000
    %Series A Preferred StockFor the year ended
December 31, 2006
    
    
    46.99260
    %
    
    
    0.00000
    %
    
    
    53.00740
    %For the year ended
December 31, 2007
    
    
    100.00000
    %
    
    
    0.00000
    %
    
    
    0.00000
    %Series B Preferred StockFor the year ended
December 31, 2006
    
    
    46.99260
    %
    
    
    0.00000
    %
    
    
    53.00740
    %For the year ended
December 31, 2007
    
    
    100.00000
    %
    
    
    0.00000
    %
    
    
    0.00000
    %
 10. Segment Information
  26




---



##### 



As of and for the year ended December 31, 2007Real Estate
    
    
    Real EstateLeasing
    
    
    Lending
    
    
    Other
    
    
    TotalOperating revenues
    
    $
    31,779,650
    
    
    $
    1,013,889
    
    
    $
    
    
    
    $
    32,793,539Operating expenses
    
    
    (23,031,267
    )
    
    
    
    
    
    
    (4,354,904
    )
    
    
    (27,386,171
    )Other income
    
    
    
    
    
    
    
    
    
    
    624,147
    
    
    
    624,147Discontinued operations
    
    
    108,714
    
    
    
    
    
    
    
    
    
    
    
    108,714Net income (loss)
    
    $
    8,857,097
    
    
    $
    1,013,889
    
    
    $
    (3,730,757
    )
    
    $
    6,140,229Total Assets
    
    $
    360,844,356
    
    
    $
    10,000,000
    
    
    $
    8,058,333
    
    
    $
    378,902,689
 As of and for the year ended December 31, 2006Real Estate
    
    
    Real EstateLeasing
    
    
    Lending
    
    
    Other
    
    
    TotalOperating revenues
    
    $
    24,100,315
    
    
    $
    1,845,231
    
    
    $
    
    
    
    $
    25,945,546Operating expenses
    
    
    (18,177,002
    )
    
    
    
    
    
    
    (4,994,988
    )
    
    
    (23,171,990
    )Other income
    
    
    
    
    
    
    
    
    
    
    583,475
    
    
    
    583,475Discontinued operations
    
    
    1,015,797
    
    
    
    
    
    
    
    
    
    
    
    1,015,797Net income (loss)
    
    $
    6,939,110
    
    
    $
    1,845,231
    
    
    $
    (4,411,513
    )
    
    $
    4,372,828Total Assets
    
    $
    264,511,627
    
    
    $
    10,000,000
    
    
    $
    41,254,395
    
    
    $
    315,766,022
 As of and for the year ended December 31, 2005Real Estate
    
    
    Real EstateLeasing
    
    
    Lending
    
    
    Other
    
    
    TotalOperating revenues
    
    $
    10,965,711
    
    
    $
    1,915,795
    
    
    $
    
    
    
    $
    12,881,506Operating expenses
    
    
    (6,260,781
    )
    
    
    
    
    
    
    (3,257,635
    )
    
    
    (9,518,416
    )Other income
    
    
    
    
    
    
    
    
    
    
    147,867
    
    
    
    147,867Discontinued operations
    
    
    90,988
    
    
    
    
    
    
    
    
    
    
    
    90,988Net income (loss)
    
    $
    4,795,918
    
    
    $
    1,915,795
    
    
    $
    (3,109,768
    )
    
    $
    3,601,945Total Assets
    
    $
    179,848,595
    
    
    $
    21,096,564
    
    
    $
    6,101,795
    
    
    $
    207,046,954
  11. Line of Credit and Short-Term Loan
  27




---



##### 



12. Pro Forma Financial Information (unaudited)
  For the year ended December 31,2007
    
    
    2006Operating Data:Total operating revenue
    
    $
    37,261,725
    
    
    $
    30,413,732Total operating expenses
    
    
    (17,176,935
    )
    
    
    (15,422,401
    )Other expense
    
    
    (13,898,935
    )
    
    
    (11,530,105
    )Income from continuing operations
    
    
    6,185,855
    
    
    
    3,461,226Dividends attributable to preferred stock
    
    
    (4,093,750
    )
    
    
    (2,186,890
    )Net income available to common stockholders
    
    $
    2,092,105
    
    
    $
    1,274,336Share and Per Share Data:Basic net income
    
    $
    0.24
    
    
    $
    0.16Diluted net income
    
    $
    0.24
    
    
    $
    0.16Weighted average shares outstanding-basic
    
    
    8,565,264
    
    
    
    7,827,781Weighted average shares outstanding-diluted
    
    
    8,565,264
    
    
    
    7,986,690
  28




---



##### 



13. Quarterly Financial Information (unaudited)
  Year ended December 31, 2007Quarter ended
    
    
    Quarter ended
    
    
    Quarter ended
    
    
    Quarter endedMarch 31, 2007
    
    
    June 30, 2007
    
    
    September 30, 2007
    
    
    December 31, 2007Operating revenues
    
    $
    7,383,771
    
    
    $
    8,079,568
    
    
    $
    8,360,508
    
    
    $
    8,969,692Operating expenses
    
    
    3,711,491
    
    
    
    3,948,741
    
    
    
    3,984,969
    
    
    
    4,176,429Other expense
    
    
    (2,216,609
    )
    
    
    (2,573,068
    )
    
    
    (2,824,541
    )
    
    
    (3,326,176
    )Income from continuing operations
    
    
    1,455,671
    
    
    
    1,557,759
    
    
    
    1,550,998
    
    
    
    1,467,087Discontinued operations
    
    
    74,673
    
    
    
    (1,447
    )
    
    
    39,462
    
    
    
    (3,974
    )Net income
    
    
    1,530,344
    
    
    
    1,556,312
    
    
    
    1,590,460
    
    
    
    1,463,113Dividends attributable to preferred stock
    
    
    (1,023,437
    )
    
    
    (1,023,437
    )
    
    
    (1,023,438
    )
    
    
    (1,023,438
    )Net income available to common stockholders
    
    
    506,907
    
    
    
    532,875
    
    
    
    567,022
    
    
    
    439,675Net income available to common stockholders - basic
    
    $
    0.06
    
    
    $
    0.06
    
    
    $
    0.07
    
    
    $
    0.05Net income available to common stockholders - diluted
    
    
    0.06
    
    
    
    0.06
    
    
    
    0.07
    
    
    
    0.05Weighted average shares outstanding - basic
    
    
    8,565,264
    
    
    
    8,565,264
    
    
    
    8,565,264
    
    
    
    8,565,264Weighted average shares outstanding - diluted
    
    
    8,565,264
    
    
    
    8,565,264
    
    
    
    8,565,264
    
    
    
    8,565,264
 Year ended December 31, 2006Quarter ended
    
    
    Quarter ended
    
    
    Quarter ended
    
    
    Quarter endedMarch 31, 2006
    
    
    June 30, 2006
    
    
    September 30, 2006
    
    
    December 31, 2006Operating revenues
    
    $
    5,425,611
    
    
    $
    6,630,062
    
    
    $
    6,735,976
    
    
    $
    7,153,897Operating expenses
    
    
    3,022,998
    
    
    
    3,523,818
    
    
    
    3,620,149
    
    
    
    3,900,131Other income (expense)
    
    
    (1,605,650
    )
    
    
    (2,112,922
    )
    
    
    (2,450,869
    )
    
    
    (2,351,978
    )Income from continuing operations
    
    
    796,963
    
    
    
    993,322
    
    
    
    664,958
    
    
    
    901,788Discontinued operations
    
    
    49,837
    
    
    
    (140,557
    )
    
    
    1,112,461
    
    
    
    (5,944
    )Net income
    
    
    846,800
    
    
    
    852,765
    
    
    
    1,777,419
    
    
    
    895,844Dividends attributable to preferred stock
    
    
    (344,444
    )
    
    
    (484,375
    )
    
    
    (484,375
    )
    
    
    (873,696
    )Net income available to common stockholders
    
    
    502,356
    
    
    
    368,390
    
    
    
    1,293,044
    
    
    
    22,148Net income available to common stockholders - basic
    
    $
    0.07
    
    
    $
    0.05
    
    
    $
    0.16
    
    
    $
    0.00Net income available to common stockholders - diluted
    
    
    0.06
    
    
    
    0.05
    
    
    
    0.16
    
    
    
    0.00Weighted average shares outstanding - basic
    
    
    7,672,000
    
    
    
    7,762,503
    
    
    
    7,820,376
    
    
    
    8,052,148Weighted average shares outstanding - diluted
    
    
    7,821,658
    
    
    
    7,911,871
    
    
    
    7,981,071
    
    
    
    8,196,605
 14. Subsequent Events
  
  29




---



##### 



LADSTONE COMMERCIAL CORPORATION
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2007
 Initial Cost
    
    Costs Capitalized
    
    Total CostBuildings &
    
    Subsequent to
    
    
    
    
    
    Buildings &
    
    
    
    
    
    AccumulatedLocation of Property
    
    Encumbrances
    
    Land
    
    Improvements
    
    Acquisition
    
    Land
    
    Improvements
    
    Total (2)
    
    Depreciation (1)
    
    Net Real Estate
    
    Date AcquiredRaleigh, North Carolina,
Office Building
    
    $
    4,940,000
    
    
    $
    960,000
    
    
    $
    4,480,772
    
    
    $
    
    
    
    $
    960,000
    
    
    $
    4,480,772
    
    
    $
    5,440,772
    
    
    $
    812,435
    
    
    $
    4,628,337
    
    
    
    12/23/2003Canton, Ohio,
Office & Warehouse Building
    
    
    2,950,000
    
    
    
    186,739
    
    
    
    3,082,007
    
    
    
    
    
    
    
    186,739
    
    
    
    3,082,007
    
    
    
    3,268,746
    
    
    
    344,783
    
    
    
    2,923,963
    
    
    
    1/30/2004Akron, Ohio,
Office & Laboratory Building
    
    
    7,560,000
    
    
    
    1,974,000
    
    
    
    6,769,565
    
    
    
    19,782
    
    
    
    1,974,000
    
    
    
    6,789,347
    
    
    
    8,763,347
    
    
    
    657,311
    
    
    
    8,106,036
    
    
    
    4/29/2004Charlotte, North Carolina,
Office Building
    
    
    7,094,700
    
    
    
    741,296
    
    
    
    8,423,389
    
    
    
    59,190
    
    
    
    741,296
    
    
    
    8,482,579
    
    
    
    9,223,875
    
    
    
    772,530
    
    
    
    8,451,345
    
    
    
    6/30/2004Canton, North Carolina,
Commercial & Manufacturing Building
    
    
    3,003,582
    
    
    
    150,000
    
    
    
    5,050,000
    
    
    
    
    
    
    
    150,000
    
    
    
    5,050,000
    
    
    
    5,200,000
    
    
    
    450,421
    
    
    
    4,749,579
    
    
    
    7/6/2004Snyder Township, Pennsylvania,
Commercial & Warehouse Building
    
    
    5,760,000
    
    
    
    100,000
    
    
    
    6,573,902
    
    
    
    6,907
    
    
    
    100,000
    
    
    
    6,580,809
    
    
    
    6,680,809
    
    
    
    578,471
    
    
    
    6,102,338
    
    
    
    8/5/2004Lexington, North Carolina,
Commercial & Warehouse Building
    
    
    2,881,000
    
    
    
    850,000
    
    
    
    2,106,845
    
    
    
    6,637
    
    
    
    850,000
    
    
    
    2,113,482
    
    
    
    2,963,482
    
    
    
    185,102
    
    
    
    2,778,380
    
    
    
    8/5/2004Austin, Texas,
Office Building
    
    
    6,500,000
    
    
    
    1,000,000
    
    
    
    6,295,794
    
    
    
    46,095
    
    
    
    1,000,000
    
    
    
    6,341,889
    
    
    
    7,341,889
    
    
    
    538,049
    
    
    
    6,803,840
    
    
    
    9/16/2004Norfolk, Virginia,
Commercial & Manufacturing Building
    
    
    
    
    
    
    190,000
    
    
    
    739,521
    
    
    
    18,190
    
    
    
    190,000
    
    
    
    757,711
    
    
    
    947,711
    
    
    
    62,269
    
    
    
    885,442
    
    
    
    10/15/2004Mt. Pocono, Pennsylvania,
Commercial & Manufacturing Building
    
    
    5,346,519
    
    
    
    350,000
    
    
    
    5,818,703
    
    
    
    18,430
    
    
    
    350,000
    
    
    
    5,837,133
    
    
    
    6,187,133
    
    
    
    487,282
    
    
    
    5,699,851
    
    
    
    10/15/2004San Antonio, Texas,
Flexible Office Building
    
    
    7,260,000
    
    
    
    843,000
    
    
    
    7,513,750
    
    
    
    22,673
    
    
    
    843,000
    
    
    
    7,536,423
    
    
    
    8,379,423
    
    
    
    740,984
    
    
    
    7,638,439
    
    
    
    2/10/2005Columbus, Ohio,
Industrial Building
    
    
    2,800,000
    
    
    
    410,000
    
    
    
    2,385,108
    
    
    
    
    
    
    
    410,000
    
    
    
    2,385,108
    
    
    
    2,795,108
    
    
    
    179,391
    
    
    
    2,615,717
    
    
    
    2/10/2005Big Flats, New York,
Industrial Building
    
    
    5,630,000
    
    
    
    275,000
    
    
    
    6,459,318
    
    
    
    33,666
    
    
    
    275,000
    
    
    
    6,492,984
    
    
    
    6,767,984
    
    
    
    457,838
    
    
    
    6,310,146
    
    
    
    4/15/2005Wichita, Kansas,
Office Building
    
    
    8,798,419
    
    
    
    1,525,000
    
    
    
    9,702,731
    
    
    
    51,453
    
    
    
    1,525,000
    
    
    
    9,754,184
    
    
    
    11,279,184
    
    
    
    701,816
    
    
    
    10,577,368
    
    
    
    5/18/2005Arlington, Texas,
Warehouse & Bakery Building
    
    
    4,168,000
    
    
    
    635,964
    
    
    
    3,431,307
    
    
    
    37,604
    
    
    
    635,964
    
    
    
    3,468,911
    
    
    
    4,104,875
    
    
    
    247,742
    
    
    
    3,857,133
    
    
    
    5/26/2005Dayton, Ohio,
Office Building
    
    
    2,078,000
    
    
    
    525,000
    
    
    
    1,876,992
    
    
    
    119,736
    
    
    
    525,000
    
    
    
    1,996,728
    
    
    
    2,521,728
    
    
    
    181,748
    
    
    
    2,339,980
    
    
    
    6/30/2005Eatontown, New Jersey,
Office Building
    
    
    4,580,000
    
    
    
    1,350,630
    
    
    
    3,520,062
    
    
    
    6,681
    
    
    
    1,350,630
    
    
    
    3,526,743
    
    
    
    4,877,373
    
    
    
    270,626
    
    
    
    4,606,747
    
    
    
    7/7/2005Frankling Township, New Jersey,
Office & Warehouse Building
    
    
    6,790,000
    
    
    
    1,631,534
    
    
    
    6,199,849
    
    
    
    
    
    
    
    1,631,534
    
    
    
    6,199,849
    
    
    
    7,831,383
    
    
    
    391,443
    
    
    
    7,439,940
    
    
    
    7/11/2005Duncan, South Carolina,
Office & Manufacturing Building
    
    
    14,569,776
    
    
    
    977,898
    
    
    
    13,472,678
    
    
    
    1,902,582
    
    
    
    977,898
    
    
    
    15,375,260
    
    
    
    16,353,158
    
    
    
    937,994
    
    
    
    15,415,164
    
    
    
    7/14/2005Hazelwood, Missouri,
Office & Warehouse Building
    
    
    2,360,000
    
    
    
    763,178
    
    
    
    2,309,058
    
    
    
    29,962
    
    
    
    763,178
    
    
    
    2,339,020
    
    
    
    3,102,198
    
    
    
    151,444
    
    
    
    2,950,754
    
    
    
    8/5/2005
 30




---



##### 



GLADSTONE COMMERCIAL CORPORATION
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
 DECEMBER 31, 2007
 Initial Cost
    
    Costs Capitalized
    

    Total CostBuildings &
    
    Subsequent to
    
    
    
    
    
    Buildings &
    
    
    
    
    
    AccumulatedLocation of Property
    
    Encumbrances
    
    Land
    
    Improvements
    
    Acquisition
    
    Land
    
    Improvements
    
    Total (2)
    
    Depreciation (1)
    
    Net Real Estate
    
    Date AcquiredAngola, Indiana,
Industrial Building
    
    
    727,922
    
    
    
    65,780
    
    
    
    1,074,758
    
    
    
    
    
    
    
    65,780
    
    
    
    1,074,758
    
    
    
    1,140,538
    
    
    
    66,496
    
    
    
    1,116,968
    
    
    
    9/2/2005Angola, Indiana,
Industrial Building
    
    
    727,922
    
    
    
    131,559
    
    
    
    1,129,874
    
    
    
    
    
    
    
    131,559
    
    
    
    1,129,874
    
    
    
    1,261,433
    
    
    
    66,496
    
    
    
    1,116,968
    
    
    
    9/2/2005Rock Falls, Illinois,
Industrial Building
    
    
    727,922
    
    
    
    35,082
    
    
    
    1,113,340
    
    
    
    
    
    
    
    35,082
    
    
    
    1,113,340
    
    
    
    1,148,422
    
    
    
    66,495
    
    
    
    1,116,969
    
    
    
    9/2/2005Newburyport, Massachusetts,
Industrial Building
    
    
    6,846,000
    
    
    
    628,690
    
    
    
    6,504,056
    
    
    
    42,895
    
    
    
    628,690
    
    
    
    6,546,951
    
    
    
    7,175,641
    
    
    
    377,373
    
    
    
    6,798,268
    
    
    
    10/17/2005Clintonville, Wisconsin,
Industrial Manufacturing Building
    
    
    3,532,029
    
    
    
    54,674
    
    
    
    4,717,090
    
    
    
    
    
    
    
    54,674
    
    
    
    4,717,090
    
    
    
    4,771,764
    
    
    
    269,724
    
    
    
    4,502,040
    
    
    
    10/31/2005Maple Heights, Ohio,
Industrial Building
    
    
    10,896,000
    
    
    
    1,608,976
    
    
    
    10,065,475
    
    
    
    37,869
    
    
    
    1,608,976
    
    
    
    10,103,344
    
    
    
    11,712,320
    
    
    
    612,594
    
    
    
    11,099,726
    
    
    
    12/21/2005Richmond, Virginia
Industrial Building
    
    
    5,275,000
    
    
    
    735,820
    
    
    
    5,335,863
    
    
    
    36,437
    
    
    
    735,820
    
    
    
    5,372,300
    
    
    
    6,108,120
    
    
    
    299,021
    
    
    
    5,809,099
    
    
    
    12/30/2005Toledo, Oho
Industrial Building
    
    
    3,000,000
    
    
    
    263,068
    
    
    
    2,811,801
    
    
    
    39,916
    
    
    
    263,068
    
    
    
    2,851,717
    
    
    
    3,114,785
    
    
    
    175,759
    
    
    
    2,939,026
    
    
    
    12/30/2005South Hadley, Massachusetts Industrial
Building
    
    
    
    
    
    
    470,636
    
    
    
    2,765,376
    
    
    
    10,000
    
    
    
    470,636
    
    
    
    2,775,376
    
    
    
    3,246,012
    
    
    
    132,961
    
    
    
    3,113,051
    
    
    
    2/15/2006Champaign, Illinois Office
Building
    
    
    9,480,063
    
    
    
    3,645,770
    
    
    
    10,803,824
    
    
    
    10,546
    
    
    
    3,645,770
    
    
    
    10,814,370
    
    
    
    14,460,140
    
    
    
    582,108
    
    
    
    13,878,032
    
    
    
    2/21/2006Roseville, Minnesota
Office Building
    
    
    19,782,270
    
    
    
    2,587,757
    
    
    
    25,290,127
    
    
    
    
    
    
    
    2,587,757
    
    
    
    25,290,127
    
    
    
    27,877,884
    
    
    
    1,469,477
    
    
    
    26,408,409
    
    
    
    2/21/2006Burnsville, Minnesota
Office Building
    
    
    12,000,000
    
    
    
    3,510,711
    
    
    
    8,746,407
    
    
    
    
    
    
    
    3,510,711
    
    
    
    8,746,407
    
    
    
    12,257,118
    
    
    
    488,738
    
    
    
    11,768,380
    
    
    
    5/10/2006Menomonee Falls, Wisconsin Industrial
Building
    
    
    6,940,000
    
    
    
    624,700
    
    
    
    6,910,616
    
    
    
    
    
    
    
    624,700
    
    
    
    6,910,616
    
    
    
    7,535,316
    
    
    
    270,211
    
    
    
    7,265,105
    
    
    
    6/30/2006Baytown, Texas
Office Building
    
    
    2,000,000
    
    
    
    221,314
    
    
    
    2,443,469
    
    
    
    
    
    
    
    221,314
    
    
    
    2,443,469
    
    
    
    2,664,783
    
    
    
    106,239
    
    
    
    2,558,544
    
    
    
    7/11/2006Sterling Heights, Michigan Industrial
Building
    
    
    
    
    
    
    2,734,887
    
    
    
    8,606,190
    
    
    
    12,676
    
    
    
    2,734,887
    
    
    
    8,618,866
    
    
    
    11,353,753
    
    
    
    281,561
    
    
    
    11,072,192
    
    
    
    9/22/2006Birmingham, Alabama
Industrial Building
    
    
    
    
    
    
    326,516
    
    
    
    1,241,666
    
    
    
    
    
    
    
    326,516
    
    
    
    1,241,666
    
    
    
    1,568,182
    
    
    
    40,963
    
    
    
    1,527,220
    
    
    
    9/29/2006Montgomery, Alabama
Industrial Building
    
    
    
    
    
    
    326,517
    
    
    
    1,241,667
    
    
    
    
    
    
    
    326,517
    
    
    
    1,241,667
    
    
    
    1,568,184
    
    
    
    40,963
    
    
    
    1,527,220
    
    
    
    9/29/2006Columbia, Missouri Industrial
Building
    
    
    
    
    
    
    326,517
    
    
    
    1,241,667
    
    
    
    
    
    
    
    326,517
    
    
    
    1,241,667
    
    
    
    1,568,184
    
    
    
    40,963
    
    
    
    1,527,220
    
    
    
    9/29/2006
 31




---



##### 



LADSTONE COMMERCIAL CORPORATION
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
DECEMBER 31, 2007
 Initial Cost
    
    
    Costs Capitalized
    
    
    Total CostBuildings &
    
    
    Subsequent to
    
    
    
    
    
    
    Buildings &
    
    
    
    
    
    
    AccumulatedLocation of Property
    
    Encumbrances
    
    
    Land
    
    
    Improvements
    
    
    Acquisition
    
    
    Land
    
    
    Improvements
    
    
    Total(2)
    
    
    Depreciation(1)
    
    
    Net Real Estate
    
    
    Date AcquiredMason, Ohio
Office Building
    
    
    
    
    
    
    797,274
    
    
    
    6,258,344
    
    
    
    
    
    
    
    797,274
    
    
    
    6,258,344
    
    
    
    7,055,618
    
    
    
    198,831
    
    
    
    6,856,787
    
    
    
    1/5/2007Raleigh, North Carolina
Industrial Building
    
    
    5,647,043
    
    
    
    1,605,551
    
    
    
    5,513,353
    
    
    
    
    
    
    
    1,605,551
    
    
    
    5,513,353
    
    
    
    7,118,904
    
    
    
    125,353
    
    
    
    6,993,551
    
    
    
    2/16/2007Tulsa, Oklahoma
Manufacturing Building
    
    
    
    
    
    
    
    
    
    
    14,057,227
    
    
    
    
    
    
    
    
    
    
    
    14,057,227
    
    
    
    14,057,227
    
    
    
    350,674
    
    
    
    13,706,553
    
    
    
    3/1/2007Hialeah, Florida
Industrial Building
    
    
    
    
    
    
    3,562,452
    
    
    
    6,671,600
    
    
    
    
    
    
    
    3,562,452
    
    
    
    6,671,600
    
    
    
    10,234,052
    
    
    
    139,614
    
    
    
    10,094,438
    
    
    
    3/9/2007Tewksbury, Massachusetts
Industrial Building
    
    
    
    
    
    
    1,394,902
    
    
    
    8,893,243
    
    
    
    
    
    
    
    1,394,902
    
    
    
    8,893,243
    
    
    
    10,288,145
    
    
    
    153,732
    
    
    
    10,134,413
    
    
    
    5/17/2007Mason, Ohio
Retail Building
    
    
    4,981,099
    
    
    
    1,201,338
    
    
    
    4,960,896
    
    
    
    
    
    
    
    1,201,338
    
    
    
    4,960,896
    
    
    
    6,162,234
    
    
    
    60,569
    
    
    
    6,101,665
    
    
    
    7/1/2007Cicero, New York
Industrial Building
    
    
    4,487,205
    
    
    
    299,066
    
    
    
    5,018,628
    
    
    
    
    
    
    
    299,066
    
    
    
    5,018,628
    
    
    
    5,317,694
    
    
    
    41,106
    
    
    
    5,276,588
    
    
    
    9/6/2007Grand Rapids, Michigan
Office Building
    
    
    
    
    
    
    1,629,270
    
    
    
    10,500,066
    
    
    
    
    
    
    
    1,629,270
    
    
    
    10,500,066
    
    
    
    12,129,336
    
    
    
    76,413
    
    
    
    12,052,923
    
    
    
    9/28/2007Bollingbrook, Illinois
Industrial Building
    
    
    
    
    
    
    1,271,543
    
    
    
    5,002,471
    
    
    
    
    
    
    
    1,271,543
    
    
    
    5,002,471
    
    
    
    6,274,014
    
    
    
    35,340
    
    
    
    6,238,674
    
    
    
    9/28/2007Decatur, Georgia
Office Building
    
    
    
    
    
    
    561,312
    
    
    
    2,322,092
    
    
    
    
    
    
    
    561,312
    
    
    
    2,322,092
    
    
    
    2,883,404
    
    
    
    3,196
    
    
    
    2,880,207
    
    
    
    12/13/2007Lawrenceville, Georgia
Office Building
    
    
    
    
    
    
    561,312
    
    
    
    2,322,092
    
    
    
    
    
    
    
    561,312
    
    
    
    2,322,092
    
    
    
    2,883,404
    
    
    
    3,197
    
    
    
    2,880,207
    
    
    
    12/13/2007Snellville, Georgia
Office Building
    
    
    
    
    
    
    561,312
    
    
    
    2,322,092
    
    
    
    
    
    
    
    561,312
    
    
    
    2,322,092
    
    
    
    2,883,404
    
    
    
    3,197
    
    
    
    2,880,207
    
    
    
    12/13/2007Covington, Georgia
Office Building
    
    
    
    
    
    
    561,312
    
    
    
    2,322,092
    
    
    
    
    
    
    
    561,312
    
    
    
    2,322,092
    
    
    
    2,883,404
    
    
    
    3,197
    
    
    
    2,880,207
    
    
    
    12/13/2007Cumming, Georgia
Office Building
    
    
    
    
    
    
    561,312
    
    
    
    2,322,092
    
    
    
    
    
    
    
    561,312
    
    
    
    2,322,092
    
    
    
    2,883,404
    
    
    
    3,197
    
    
    
    2,880,208
    
    
    
    12/13/2007Conyers, Georgia
Office Building
    
    
    
    
    
    
    561,313
    
    
    
    2,322,092
    
    
    
    
    
    
    
    561,313
    
    
    
    2,322,092
    
    
    
    2,883,405
    
    
    
    3,197
    
    
    
    2,880,208
    
    
    
    12/13/2007$
    202,120,471
    
    
    $
    48,867,482
    
    
    $
    289,062,997
    
    
    $
    2,569,927
    
    
    $
    48,867,482
    
    
    $
    291,632,924
    
    
    $
    340,500,406
    
    
    $
    15,738,634
    
    
    $
    324,761,772
 
 (1)
    
    Depreciable life of all buildings is 39 years. Depreciable life of all
improvements is the life of the respective leases on each building, which range from 5-20
years.(2)
    
    The aggregate cost for federal income tax purposes is the same as the
total gross cost. 32




---



##### 



2007
    
    
    2006
    
    
    2005Balance at beginning of period
    
    $
    243,713,542
    
    
    $
    165,043,640
    
    
    $
    61,251,455Acquisitions during period
    
    
    95,396,039
    
    
    
    83,466,860
    
    
    
    103,792,185Improvements or other additions
    
    
    1,390,825
    
    
    
    183,000Dispositions during period
    
    
    
    
    
    
    (4,979,958
    )
    
    
    Balance at end of period
    
    $
    340,500,406
    
    
    $
    243,713,542
    
    
    $
    165,043,640
  2007
    
    
    2006
    
    
    2005Balance at beginning of period
    
    $
    8,595,419
    
    
    $
    3,408,879
    
    
    $
    785,125Additions during period
    
    
    7,143,215
    
    
    
    5,351,414
    
    
    
    2,623,754Dispositions during period
    
    
    
    
    
    
    (164,874
    )
    
    
    Balance at end of period
    
    $
    15,738,634
    
    
    $
    8,595,419
    
    
    $
    3,408,879
 33




---



##### 



GLADSTONE COMMERCIAL CORPORATION
SCHEDULE IV  MORTGAGE LOANS ON REAL ESTATE
DECEMBER 31, 2007
 Final
    
    
    
    
    
    
    
    
    
    
    
    
    Carrying
    
    
    Principal Amount of LoansLocation and Type of Real
    
    
    
    
    
    Maturity
    
    
    
    
    
    
    
    
    Face Amount
    
    
    Amount of
    
    
    Subject to DelinquentEstate
    
    Type of Loan
    
    Interest Rate
    
    Date
    
    
    Periodic Payment Term
    
    Prior Lien
    
    
    of Mortgage
    
    
    Mortgage (1)
    
    
    Principal or InterestMcLean, Virginia; Office Property
    
    First Mortgage
    
    1 month LIBOR +6%; Floor of 7.5%, Ceiling of 10%

    
    
    5/30/2017
    
    
    Monthly payment based upon a 24 year amortization term, which changes based on LIBOR, with a floor of 7.5% and a ceiling of 10%. Balloon payment at maturity is $8,488,578.


    
    
    
    
    
    $
    10,000,000
    
    
    $
    10,000,000
    
    
    $
    $
    10,000,000
    
    
    $
    10,000,000
 
 (1)
    
    The aggregate cost for federal income tax purposes is the same as the total gross cost.  2007
    
    
    2006
    
    
    2005Balance at beginning of period
    
    $
    10,000,000
    
    
    $
    21,025,815
    
    
    $
    11,107,717New mortgage loans
    
    
    
    
    
    
    
    
    
    
    10,000,000Collections of principal
    
    
    
    
    
    
    (44,742
    )
    
    
    (81,902
    )Satisfaction of mortgage loan receivable
    
    
    
    
    
    
    (10,981,073
    )
    
    
    Balance at end of period
    
    $
    10,000,000
    
    
    $
    10,000,000
    
    
    $
    21,025,815
 34




---



##### 



PART
IV
 Item 15.
Exhibits and Financial Statement Schedules
 Exhibit
    
    Description of Document31.1
    
    Certification of Chief Executive Officer pursuant to Section 302
of The Sarbanes-Oxley Act of 2002.31 .2
    
    Certification of Chief Financial Officer pursuant to Section 302
of The Sarbanes-Oxley Act of 2002.32 .1
    
    Certification of Chief Executive Officer pursuant to Section 906
of The Sarbanes-Oxley Act of 2002.32 .2
    
    Certification of Chief Financial Officer pursuant to Section 906
of The Sarbanes-Oxley Act of 2002.
 35




---



##### 



Gladstone Commercial CorporationDate: May 15, 2008
    By:
    /s/ Harry BrillHarry Brill
Chief Financial Officer 36




---



##### 



Exhibit Index
  Exhibit
    
    Description of Document31.1
    
    Certification of Chief Executive Officer pursuant to Section 302 of The Sarbanes-Oxley Act of 2002.31.2
    
    Certification of Chief Financial Officer pursuant to Section 302 of The Sarbanes-Oxley Act of 2002.32.1
    
    Certification of Chief Executive Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.32.2
    
    Certification of Chief Financial Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002. 37