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Gladstone's August Rent Collection & Occupancy Remain Strong
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Gladstone Commercial Corporation (GOOD - Free Report) has been witnessing steady rental collections and its portfolio of office and net-lease industrial properties are enjoying robust occupancies even amid the ongoing pandemic-led challenges. This indicates the resilience of its portfolio.
Specifically, August cash base rent collections are in line with July receipts of 99%. Moreover, rental receipts have increased from 98% of collections made in April, May and June. The balancing 1-2% of cash base rents indicates the previously-agreed deferral agreements. Nonetheless, all such deferral amounts will be paid back to the company by the respective tenants, starting in July 2020 and ending in March 2021.
Additionally, as of Aug 19, the company’s portfolio occupancy remains at around 97%. Notably, successful leasing activities, primarily renewal and expansion deals, have likely driven such encouraging portfolio occupancy. In fact, year to date, the company has inked 10 renewals and expansions for 471,584 square feet of space at 8% higher GAAP rents.
Importantly, on Aug 4, Gladstone announced the execution of five-year lease extensions with two tenants John Bean Technologies Corporation and Continental Broadband Pennsylvania, LLC. In July, the company entered a six-year lease extension with Conduent State Healthcare, LLC. These three lease extensions have improved GAAP rents for the company by 3.2%.
John Bean Technologies occupies the company’s entire 67,200-square-foot flex building in Philadelphia, while Continental Broadband fully rents out the company 26,080-square-foot data-center building in Pittsburgh. Conduent State occupies the company’s 42,213-square-foot office building in Richmond, VA. With this, the building will have full occupancy until September 2026.
Gladstone also remains focused on its capital recycling program through which it is shedding non-core assets and redeploying the proceeds in accretive acquisitions. In line with this strategy, in early July, the company sold Maple Heights in Ohio for $11.4 million, resulting in a net gain of $1.2 million.
Gladstone’s financial policy approach underlines a disciplined debt and equity funding strategy to support organic and acquisition-driven growth. In fact, since July, the company issued 117,000 shares of common stock for net proceeds of $2.2 million. As of Aug 19, its liquidity stood at more than $35 million, consisting of revolving credit facility and cash on hand, indicating its ability to withstand the current crisis and any unexpected negative externalities in the future.
Nonetheless, the company remains apprehensive of any additional rent relief requested by tenants during the pandemic. This might affect its top-line growth.
Moreover, shares of this Zacks Rank #3 (Hold) company have lost 17.4% over the past year compared with the industry’s decline of 7.3%.
Terreno Realty Corporation’s (TRNO - Free Report) FFO per share estimates for 2020 have remained unchanged at $1.43 over the past month. It currently carries a Zacks Rank of 2.
Duke Realty Corporation’s Zacks Consensus Estimate for 2020 FFO per share has revised marginally upward to $1.49 over the past month. The company currently carries a Zacks Rank of 2.
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Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Gladstone's August Rent Collection & Occupancy Remain Strong
Gladstone Commercial Corporation (GOOD - Free Report) has been witnessing steady rental collections and its portfolio of office and net-lease industrial properties are enjoying robust occupancies even amid the ongoing pandemic-led challenges. This indicates the resilience of its portfolio.
Specifically, August cash base rent collections are in line with July receipts of 99%. Moreover, rental receipts have increased from 98% of collections made in April, May and June. The balancing 1-2% of cash base rents indicates the previously-agreed deferral agreements. Nonetheless, all such deferral amounts will be paid back to the company by the respective tenants, starting in July 2020 and ending in March 2021.
Additionally, as of Aug 19, the company’s portfolio occupancy remains at around 97%. Notably, successful leasing activities, primarily renewal and expansion deals, have likely driven such encouraging portfolio occupancy. In fact, year to date, the company has inked 10 renewals and expansions for 471,584 square feet of space at 8% higher GAAP rents.
Importantly, on Aug 4, Gladstone announced the execution of five-year lease extensions with two tenants John Bean Technologies Corporation and Continental Broadband Pennsylvania, LLC. In July, the company entered a six-year lease extension with Conduent State Healthcare, LLC. These three lease extensions have improved GAAP rents for the company by 3.2%.
John Bean Technologies occupies the company’s entire 67,200-square-foot flex building in Philadelphia, while Continental Broadband fully rents out the company 26,080-square-foot data-center building in Pittsburgh. Conduent State occupies the company’s 42,213-square-foot office building in Richmond, VA. With this, the building will have full occupancy until September 2026.
Gladstone also remains focused on its capital recycling program through which it is shedding non-core assets and redeploying the proceeds in accretive acquisitions. In line with this strategy, in early July, the company sold Maple Heights in Ohio for $11.4 million, resulting in a net gain of $1.2 million.
Gladstone’s financial policy approach underlines a disciplined debt and equity funding strategy to support organic and acquisition-driven growth. In fact, since July, the company issued 117,000 shares of common stock for net proceeds of $2.2 million. As of Aug 19, its liquidity stood at more than $35 million, consisting of revolving credit facility and cash on hand, indicating its ability to withstand the current crisis and any unexpected negative externalities in the future.
Nonetheless, the company remains apprehensive of any additional rent relief requested by tenants during the pandemic. This might affect its top-line growth.
Moreover, shares of this Zacks Rank #3 (Hold) company have lost 17.4% over the past year compared with the industry’s decline of 7.3%.
Stocks to Consider
Arbor Realty Trust’s (ABR - Free Report) earnings per share estimates for the ongoing year have been revised 26% upward to $1.44 over the past month. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Terreno Realty Corporation’s (TRNO - Free Report) FFO per share estimates for 2020 have remained unchanged at $1.43 over the past month. It currently carries a Zacks Rank of 2.
Duke Realty Corporation’s Zacks Consensus Estimate for 2020 FFO per share has revised marginally upward to $1.49 over the past month. The company currently carries a Zacks Rank of 2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>