CONSOLIDATED SELECTED FINANCIAL AND OTHER DATA For the year ended December 31, (Dollars in Thousands, Except Per Share Amounts) 2014 2013 2012 2011 2010 OPERATING DATA: Total operating revenue $  73,756 $  61,343 $  51,270 $ 43,976 $ 41,928 Total operating expenses (57,406) (32,823) (24,895) (21,270) (23,414) Other expense (22,252) (26,993) (22,614) (16,992) (13,586) Net (loss) income $  (5,902) $  1,527 $  3,761 $ 5,714 $ 4,928 Dividends attributable to preferred stock (4,094) (4,094) (4,093) (4,094) (4,094) Dividends attributable to senior common stock (542) (300) (113) (62) (20) Net (loss) income available to common stockholders $  (10,538) $  (2,867) $  (445) $ 1,558 $ 814 SHARE AND PER SHARE DATA: (Loss) earnings per weighted average common share—   b a s i c & d i l u t e d $  (0.61) $  (0.22) $  (0.04) $ 0.15 $ 0.09 Weighted average common shares outstanding—basic 17,253,503 13,164,244 10,953,325 10,236,859 8,576,303 Weighted average common shares outstanding—diluted 17,253,503 13,164,244 10,953,325 10,288,711 8,601,153 Cash dividends declared per common share $  1.50 $  1.50 $  1.50 $ 1.50 $ 1.50 SUPPLEMENTAL DATA: Net (loss) income available to common stockholders $  (10,538) $  (2,867) $  (445) $ 1,558 $ 814 Add: Real estate depreciation and amortization 28,864 22,827 16,831 14,149 13,264 Add: Impairment charge 14,238 — — — — Less: Gain on sale of real estate (1,240) — — — — Funds from operations available to common stockholders (1)(2) $  31,324 $  19,960 $  16,386 $ 15,707 $ 14,078 BALANCE SHEET DATA: Real estate, before accumulated depreciation $  722,565 $  642,353 $ 533,753 $442,521 $401,017 Total assets 787,794 690,525 564,779 453,147 410,609 Mortgage notes payable, term loan, term preferred stock and borrowings under the line of credit 541,099 485,502 422,685 304,050 286,595 Total stockholders’ equity 217,672 183,146 122,365 135,314 111,375 Total common shares outstanding 19,589,606 15,662,414 11,083,584 10,945,379 8,724,613 1) The National Association of Real Estate Investment Trusts, or NAREIT, developed FFO as a relevant non-GAAP supplemental measure of operating performance of an equity  REIT, to recognize that income-producing real estate historically has not depreciated on the same basis determined under GAAP. For a reconciliation of FFO to net income, see  the enclosed Annual Report on Form 10-K for the year ended December 31, 2014. 2) Funds from operations for the year ended December 31, 2014 includes a $5.3 million non-cash gain on debt extinguishment. Total Assets As of December 31 (dollars in millions) 2014 $ 787.8 2013 $ 690.5 2012 $ 564.8 2011 $ 453.1 2010 $ 410.6 Cash Distributions  Per Common Share Fiscal Years Ended December 31 (in dollars) $ 1.50 2014 2013 $ 1.50 2012 $ 1.50 2011 $ 1.50 $ 1.50 2010 Funds from Operations Fiscal Years Ended December 31 (dollars in millions) 2013 $ 20.0 2012 $ 16.4 2011 $ 15.7 $ 14.1 2010 2014 (2) $ 31.3 GLADSTONE COMMERCIAL 2014 ANNUAL REPORT 1