The 2016 principal amounts payable include $92 million of principal payments due on nine mortgages that mature   during the year. We anticipate being able to refinance these  mortgages with a combination of new mortgages and some  equity. We intend to decrease the amount of mortgages on  these re-financings to continue our strategy of reducing our  overall leverage. Our 2014 Core Funds from Operations, or Core FFO,  was approximately $27.5 million, or $1.55 per share, which  was a 32.6% increase over total Core FFO from the prior  year. Our 2014 results reflect the additional income from the  11 properties acquired during the year coupled with lower  property operating expenses at certain of our vacant prop- erties. This additional income was partially offset by an  increase in interest expense from mortgages issued during  the year plus an increase in general and administrative  expenses related to the adjustment of a deferred rent balance  for a tenant whereby the lease was modified during 2014.  At year end, our total assets increased to $788 million,  up 14% from 2013. The amounts outstanding under long- term mortgages plus the amount outstanding on our line of credit increased to $503 million, up 12% from 2013. Our  stockholders’ equity increased by 19% to $218 million. We  believe our balance sheet remains strong as we continue our strategy to reduce our overall leverage. To this end we  decreased the loan amount to the value of the real estate on  new debt issued during 2014 to 60% from 68% in 2012.  We were very active in the capital markets this year,  issuing 3.9 million shares of common stock through one  overnight offering and our at-the-market stock issuance  programs (ATM). These two methods resulted in net pro- ceeds of $66 million. Our current ATM program is a very  cost-efficient way for us to access the capital markets in  order to fund our acquisitions.  O u r m o n t h l y d i s t r i b u t i o n d u r i n g 2 0 1 4 w a s $ 0 . 1 2 5 p e r common share, or $1.50 for the year. In January 2015, our  board of directors maintained the monthly distribution of  $0.125 per common share for each of the months January,  February and March 2015.  W e a r e p r o u d o f t h e f a c t h a t w e h a v e n e v r s k i p e d , reduced or deferred a monthly distribution since our incep- tion in 2003. As of February 27, 2015, we have paid 122   consecutive monthly cash distributions to our common  stockholders, 110 consecutive monthly cash distributions to  our Series A preferred stockholders, 101 consecutive monthly  cash distributions to our Series B preferred stockholders and  Best wishes and thank you for your continued support. We are very hopeful about the future and believe 2015  will be another great year. We invite stockholders to attend  our Annual Stockholders’ Meeting on May 7, 2015, at the  Hilton Hotel McLean Tyson’s Corner, 7920 Jones Branch  Drive, in McLean, Virginia. We also invite you to visit our  website, www.GladstoneCommercial.com, and sign up for email notices to keep up with our company’s activities. You can also now follow us on Facebook at “The Gladstone  Companies,” and on Twitter at “GladstoneComps.”  Our team is focused on improving our results in 2015  by leasing our vacant square footage and acquiring addi- tional quality office and industrial properties on a consistent,  measured basis. While there are no guarantees about the  future, continuation of our monthly distributions to stock- holders is paramount to our investment strategy. In addition  we have a great team that believes strongly in the highest  ethical standards and service to stockholders. As an owner of real estate, we are required to record  depreciation on our properties. This depreciation and other  items, such as impairment losses, shelter a portion of our  distributions from income taxes. Therefore, in 2014, 100.0%  of the distributions on our common stock were a tax-free  return of capital. While the distribution is tax-free, this return  of capital will reduce a stockholder’s cost basis in the stock,  which may result in a larger capital gains tax when the stock  is sold. Our website, www.GladstoneCommercial.com, has  more information on this subject, but please consult your  tax adviser for complete details. 37 consecutive monthly cash distributions to our Series C  preferred stockholders.  FINANCIAL RESULTS OUTLOOK DIVIDENDS CAPITAL MARKETS GLADSTONE COMMERCIAL 2014 ANNUAL REPORT 3 David Gladstone,  Chairman and CEO Terry L. Brubaker,  Vice Chairman and COO Bob Cutlip,  President