Yahoo Finance Gladstone Commercial (GOOD) Sees High Occupancy in December
Gladstone Commercial Corporation GOOD has been witnessing active leasing, aiding solid occupancy, healthy rental collections and ample liquidity to back its acquisitions and growth efforts.
As of Dec 31, 2021, the company’s portfolio occupancy was 97.1% due to successful leasing activities. Moreover, Gladstone Commercial collected 100% of the December cash base rents. Healthy levels of rental receipts have enabled GOOD to maintain its dividend rate.
Gladstone Commercial is also focused on its growth measures. In December, it acquired a 120,000-square-foot industrial facility in the Atlanta, GA metropolitan statistical areas for $12 million. The property has 15 years of residual absolute NNN lease term.
Gladstone Commercial also acquired a 300,000-square-foot industrial facility located in Crossville, TN for $29 million, with the tenant, CoLinx, LLC, having a remaining lease term of 11 years. The company’s fourth-quarter 2021 acquisitions totaled 581,460 square feet of industrial real estate for $53.8 million.
Gladstone Commercial is also witnessing healthy demand for its properties. In its business update for 2021, the company noted that it has extended, expanded or leased 1.6 million square feet of space, comprising 15 tenants with a weighted average lease term of 7.7 years and a tenant improvement allowance of $2.92 per square foot. Compared with the prior rents, the combined straight-line rents for these transactions increased 7.1%.
Further, management noted that as of Dec 31, 2021, the company’s available liquidity was $25.4 million, consisting of revolving credit facility and cash in hand. Gladstone Commercial continues to raise equity capital. In 2021, it issued 1.8 million shares of common stock for net proceeds of $36.6 million. Such an amount of liquidity supports Gladstone Commercial’s growth strategy.
Shares of this Zacks Rank #2 (Buy) company have rallied 17.6% in the past three months, outperforming the industry’s growth of 14%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Stocks to Consider
Some key picks from the REIT sector include Terreno Realty Corporation TRNO, CubeSmart CUBE and Rexford Industrial Realty REXR.
Terreno Realty holds a Zacks Rank of 2 at present. Terreno Realty’s 2021 revenues are expected to increase 17.8% year over year.
The Zacks Consensus Estimate for TRNO’s 2022 FFO per share has been revised marginally upward in the past two months.
The Zacks Consensus Estimate for CubeSmart’s 2021 FFO per share has moved 2.4% north to $2.10 in the past two months.
Currently, CubeSmart carries a Zacks Rank of 1. CUBE's long-term growth rate is projected at 11.2%.
The Zacks Consensus Estimate for Rexford Industrial’s 2022 FFO per share has moved 1.2% north to $1.63 over the past two months.
Currently, Rexford Industrial carries a Zacks Rank of 2. REXR's long-term growth rate is projected at 12.9%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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