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Gladstone Commercial Extends Lease at Richmond Property
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Gladstone Commercial Corporation (GOOD - Free Report) has been receiving a positive response from existing tenants, as indicated by its successful leasing efforts. The company recently announced a lease extension for six years with Conduent State Healthcare, LLC at its office property in Richmond, VA.
With this, the 42,213-square-foot building will be fully occupied until September 2026. The tenant rented out space at the property in 2014 and the lease extension indicates the significance of the building.
In late May, Gladstone Commercial announced a lease expansion with Morgan Stanley Smith Barney Financing for 16,689 square feet of space at the company’s Easton Commons office building.
Amid the uncertainties in the markets due to the coronavirus outbreak, Gladstone Commercial’s ability to execute such leases indicates the high quality of its properties. It will likely boost revenues in the near term.
Notably, management’s focus on renewing tenancy and improving same-store cash flow growth seems a strategic fit. In fact, this likely helped the company to enjoy portfolio occupancy of around 97% (as of Jun 15).
Moreover, the company’s June cash base rent collections aggregated nearly 98%, in line with May and April cash base rent of 98%. Although 2% of cash base rents are related to the previously-agreed deferral agreements, such deferrals will be collected from respective tenants commencing in July 2020 and ending in March 2021.
Nonetheless, in the near term, the company aims to modify lease agreements to offer relief to certain tenants that have been significantly affected by the ongoing COVID-19 pandemic.
Crown Castle International Corporation’s (CCI - Free Report) funds from operations (“FFO”) per share estimate for the ongoing year have been unchanged at $6.10 over the past 30 days. The company currently carries a Zacks Rank of 2.
Alexandria Real Estate Equities, Inc.’s (ARE - Free Report) FFO per share estimate for 2020 has been revised marginally upward to $7.32 over the past week. It currently carries a Zacks Rank of 2.
Cousins Properties Incorporated’s (CUZ - Free Report) Zacks Consensus Estimate for 2020 FFO per share has revised marginally upward to $2.74 over the past month. The company currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Gladstone Commercial Extends Lease at Richmond Property
Gladstone Commercial Corporation (GOOD - Free Report) has been receiving a positive response from existing tenants, as indicated by its successful leasing efforts. The company recently announced a lease extension for six years with Conduent State Healthcare, LLC at its office property in Richmond, VA.
With this, the 42,213-square-foot building will be fully occupied until September 2026. The tenant rented out space at the property in 2014 and the lease extension indicates the significance of the building.
In late May, Gladstone Commercial announced a lease expansion with Morgan Stanley Smith Barney Financing for 16,689 square feet of space at the company’s Easton Commons office building.
Amid the uncertainties in the markets due to the coronavirus outbreak, Gladstone Commercial’s ability to execute such leases indicates the high quality of its properties. It will likely boost revenues in the near term.
Notably, management’s focus on renewing tenancy and improving same-store cash flow growth seems a strategic fit. In fact, this likely helped the company to enjoy portfolio occupancy of around 97% (as of Jun 15).
Moreover, the company’s June cash base rent collections aggregated nearly 98%, in line with May and April cash base rent of 98%. Although 2% of cash base rents are related to the previously-agreed deferral agreements, such deferrals will be collected from respective tenants commencing in July 2020 and ending in March 2021.
Nonetheless, in the near term, the company aims to modify lease agreements to offer relief to certain tenants that have been significantly affected by the ongoing COVID-19 pandemic.
Shares of this Zacks Rank #2 (Buy) company have gained 28.1% over the past three months compared with the industry’s rally of 4.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Stocks to Consider
Crown Castle International Corporation’s (CCI - Free Report) funds from operations (“FFO”) per share estimate for the ongoing year have been unchanged at $6.10 over the past 30 days. The company currently carries a Zacks Rank of 2.
Alexandria Real Estate Equities, Inc.’s (ARE - Free Report) FFO per share estimate for 2020 has been revised marginally upward to $7.32 over the past week. It currently carries a Zacks Rank of 2.
Cousins Properties Incorporated’s (CUZ - Free Report) Zacks Consensus Estimate for 2020 FFO per share has revised marginally upward to $2.74 over the past month. The company currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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