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Gladstone Commercial (GOOD) Acquires Industrial Facility in Peru
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In a bid to expand its property base in the targeted thriving markets, Gladstone Commercial Corporation (GOOD - Free Report) recently shelled out $4.7 million for the purchase of an 81,760-square-foot industrial facility in Peru, IL. This marks the company’s second industrial acquisition in the greater Chicagoland area.
The sale/leaseback transaction reflects Gladstone Commercial's strategy of achieving growth on buyouts of high-quality industrial assets in strong growth corridors leased out to tenants with solid credit profiles. Also, the initial capitalization rate for the acquisition was 6.9%, with an average capitalization rate of 7.6%.
Located on 4.1 acres, this property is fully leased to Pretium Packaging, LLC. The lease has 15 years of remaining absolute NNN lease term. The tenant uses the property for manufacturing and distribution of its rigid plastic packaging products.Thus, the property will generate stable revenues for the company by being mission-critical to the tenant, coupled with a decent residual lease term and a strong tenant.
Notably, during the second quarter, Gladstone Commercial purchased a 25,200-square-foot industrial facility in Baytown, TX, for $8.2 million, which is 100% leased to one tenant for 12.6 years. Subsequent to the quarter end, the REIT acquired an 80,604-square-foot industrial facility in Pacific, MO, for $22.1 million that is fully leased to a tenant with a residual lease term of 17.4 years.
Gladstone Commercial banks on its capital-recycling program, thereby selling non-core assets and using the proceeds to de-lever the portfolio, along with the acquisition of properties in the company’s target growth markets, which augurs well for the long term.
The Zacks Consensus Estimate for Public Storage’s (PSA - Free Report) current-year FFO per share has moved up 3.4% to $12.28 in the past month. The company currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for OUTFRONT Media Inc.’s (OUT - Free Report) 2021 FFO per share has moved 3.4% north to 90 cents over the past month. The company carries a Zacks Rank of 2, currently.
Extra Space Storage Inc. (EXR - Free Report) carries a Zacks Rank of 2, at present. The Zacks Consensus Estimate for the ongoing year’s FFO per share has been revised 5% upward to $6.52 over the past month.
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.
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Gladstone Commercial (GOOD) Acquires Industrial Facility in Peru
In a bid to expand its property base in the targeted thriving markets, Gladstone Commercial Corporation (GOOD - Free Report) recently shelled out $4.7 million for the purchase of an 81,760-square-foot industrial facility in Peru, IL. This marks the company’s second industrial acquisition in the greater Chicagoland area.
The sale/leaseback transaction reflects Gladstone Commercial's strategy of achieving growth on buyouts of high-quality industrial assets in strong growth corridors leased out to tenants with solid credit profiles. Also, the initial capitalization rate for the acquisition was 6.9%, with an average capitalization rate of 7.6%.
Located on 4.1 acres, this property is fully leased to Pretium Packaging, LLC. The lease has 15 years of remaining absolute NNN lease term. The tenant uses the property for manufacturing and distribution of its rigid plastic packaging products.Thus, the property will generate stable revenues for the company by being mission-critical to the tenant, coupled with a decent residual lease term and a strong tenant.
Notably, during the second quarter, Gladstone Commercial purchased a 25,200-square-foot industrial facility in Baytown, TX, for $8.2 million, which is 100% leased to one tenant for 12.6 years. Subsequent to the quarter end, the REIT acquired an 80,604-square-foot industrial facility in Pacific, MO, for $22.1 million that is fully leased to a tenant with a residual lease term of 17.4 years.
Gladstone Commercial banks on its capital-recycling program, thereby selling non-core assets and using the proceeds to de-lever the portfolio, along with the acquisition of properties in the company’s target growth markets, which augurs well for the long term.
Gladstone Commercial currently carries a Zacks Rank #3 (Hold). The stock has gained 8%, outperforming the industry’s rally of 7.2% in the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Stocks to Consider
The Zacks Consensus Estimate for Public Storage’s (PSA - Free Report) current-year FFO per share has moved up 3.4% to $12.28 in the past month. The company currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for OUTFRONT Media Inc.’s (OUT - Free Report) 2021 FFO per share has moved 3.4% north to 90 cents over the past month. The company carries a Zacks Rank of 2, currently.
Extra Space Storage Inc. (EXR - Free Report) carries a Zacks Rank of 2, at present. The Zacks Consensus Estimate for the ongoing year’s FFO per share has been revised 5% upward to $6.52 over the past month.
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.