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Gladstone (GOOD) Sells Flex Office Property in Texas for $8.6M
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Gladstone Commercial Corporation (GOOD - Free Report) recently announced the sale of a single-story flex office building in Austin, TX for gross sales proceed of $8.6 million. The sale was completed on Dec 18. The move comes as part of its efforts to unlock value from the company’s assets.
The property spans an area of about 52,000 square feet and was leased to a single tenant. Gladstone realized a gain of $2.8 million from the sale and an internal rate of return of 13.2% on the investment. The company had owned this property for about 16 years.
Buzz Cooper, executive vice president (EVP) and head of South/Central Region for Gladstone, said, "We were able to successfully exit the building at a substantial gain, while realizing strong returns over the life of the investment."
The company intends to use the proceeds from the sale to invest in industrial products and aid its capital-recycling efforts.
Gladstone has been making encouraging moves to expand its footprint in robust growth corridors like Alabama. It is focusing on boosting its industrial asset base, which is apt, given the solid macro tailwinds that are driving the asset category. In line with this strategy, the company recently shelled out $19.9 million for the purchase of a 278,000-square-foot industrial facility in Huntsville, AL. The asset class demonstrated resilience amid the pandemic, with low vacancy rates, high asking rents and high rent collections.
Moreover, despite the coronavirus crisis, Gladstone seems to be firing on all cylinders, with high levels of rental collections, active leasing that is boosting occupancy, and ample liquidity to back its acquisitions and growth initiatives.
Specifically, for 2020, the company has collected 99% of cash base rents. This consisted of cash base rental collection for the first, second, third and fourth quarters of 100%, 98%, 99% and 99%, respectively. Additionally, it has collected around 98% of December cash base rents.
Also, Gladstone’s leasing activities look encouraging and have driven portfolio occupancy, which was more than 95% as of Dec 14. As of the same date, its available liquidity stood in excess of $40 million, consisting of revolving credit facility and cash on hand.
CubeSmart’s (CUBE - Free Report) Zacks Consensus Estimate for 2020 funds from operations (FFO) per share has moved up 1.8% to $1.66 over the past two months. The company currently carries a Zacks Rank of 2 (Buy).
Rexford Industrial Realty, Inc.’s (REXR - Free Report) FFO per share estimate for the current year has been revised upward by 1.6% to $1.30 in the past two months. The company carries a Zacks Rank of 2, currently.
City Office REIT, Inc.’s (CIO - Free Report) Zacks Consensus Estimate for the ongoing-year FFO per share has moved 5.3% north to $1.20 in two months’ time. The company holds a Zacks Rank of 2 at present.
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.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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Gladstone (GOOD) Sells Flex Office Property in Texas for $8.6M
Gladstone Commercial Corporation (GOOD - Free Report) recently announced the sale of a single-story flex office building in Austin, TX for gross sales proceed of $8.6 million. The sale was completed on Dec 18. The move comes as part of its efforts to unlock value from the company’s assets.
The property spans an area of about 52,000 square feet and was leased to a single tenant. Gladstone realized a gain of $2.8 million from the sale and an internal rate of return of 13.2% on the investment. The company had owned this property for about 16 years.
Buzz Cooper, executive vice president (EVP) and head of South/Central Region for Gladstone, said, "We were able to successfully exit the building at a substantial gain, while realizing strong returns over the life of the investment."
The company intends to use the proceeds from the sale to invest in industrial products and aid its capital-recycling efforts.
Gladstone has been making encouraging moves to expand its footprint in robust growth corridors like Alabama. It is focusing on boosting its industrial asset base, which is apt, given the solid macro tailwinds that are driving the asset category. In line with this strategy, the company recently shelled out $19.9 million for the purchase of a 278,000-square-foot industrial facility in Huntsville, AL. The asset class demonstrated resilience amid the pandemic, with low vacancy rates, high asking rents and high rent collections.
Moreover, despite the coronavirus crisis, Gladstone seems to be firing on all cylinders, with high levels of rental collections, active leasing that is boosting occupancy, and ample liquidity to back its acquisitions and growth initiatives.
Specifically, for 2020, the company has collected 99% of cash base rents. This consisted of cash base rental collection for the first, second, third and fourth quarters of 100%, 98%, 99% and 99%, respectively. Additionally, it has collected around 98% of December cash base rents.
Also, Gladstone’s leasing activities look encouraging and have driven portfolio occupancy, which was more than 95% as of Dec 14. As of the same date, its available liquidity stood in excess of $40 million, consisting of revolving credit facility and cash on hand.
Shares of this Zacks Rank #3 (Hold) company have gained 10.8% over the past three months, outperforming the industry's rally of 6.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
CubeSmart’s (CUBE - Free Report) Zacks Consensus Estimate for 2020 funds from operations (FFO) per share has moved up 1.8% to $1.66 over the past two months. The company currently carries a Zacks Rank of 2 (Buy).
Rexford Industrial Realty, Inc.’s (REXR - Free Report) FFO per share estimate for the current year has been revised upward by 1.6% to $1.30 in the past two months. The company carries a Zacks Rank of 2, currently.
City Office REIT, Inc.’s (CIO - Free Report) Zacks Consensus Estimate for the ongoing-year FFO per share has moved 5.3% north to $1.20 in two months’ time. The company holds a Zacks Rank of 2 at present.
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.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>