Back to top

Image: Bigstock

Gladstone Commercial (GOOD) Sees High Occupancy in November

Read MoreHide Full Article

Gladstone Commercial Corporation (GOOD - Free Report) has been witnessing active leasing, aiding solid occupancy, healthy rental collections and ample liquidity to back its acquisitions and growth efforts.

As of Nov 30, 2021, the company’s portfolio occupancy was 97.8%, resulting from successful leasing activities. Moreover, Gladstone has collected 100% of the November cash base rents. The healthy levels of rental receipts have enabled GOOD to maintain its dividend rate.

Gladstone is also focused on its growth measures. In November, it acquired a 161,458-square-foot industrial facility in Charlotte, NC, MSA for $12.8 million. The tenant — Assa Abloy Entrance Systems — has a remaining lease term of 7.9 years.

Gladstone is also witnessing healthy demand for its properties. In November, it announced executing a 10-year lease extension with Gaylord Bros., Inc. at its 71,880-square-foot Syracuse, NY, industrial property. The lease will now extend through May 31, 2035. Also, GOOD secured a 10-year lease at its refrigerated industrial property in Reading, PA, for the full building or 42,900 square feet of space.

So far in the year, Gladstone 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. As compared with the prior rents, the combined straight-line rents for these transactions increased 7.1%.

Further, management noted that as of Nov 30, 2021, the company’s available liquidity was $21.7 million, consisting of revolving credit facility and cash in hand. Gladstone Commercial continues to raise equity capital. Since the beginning of the year through Nov 30, 2021, it has issued roughly 1.7-million shares of common stock for net proceeds of $33.7 million. Such an amount of liquidity supports Gladstone’s growth strategy.

Shares of the Zacks Rank #3 (Hold) company have gained 21.8% so far in the year, outperforming the industry’s rally of 19.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment ResearchImage Source: Zacks Investment Research

Stocks to Consider

Some key picks from the REIT sector include Terreno Realty Corporation (TRNO - Free Report) , CubeSmart (CUBE - Free Report) and Rexford Industrial Realty (REXR - Free Report) .

Terreno Realty holds a Zacks Rank of 2 (Buy) at present.  Its 2021 FFO per share is expected to increase 19.4% year over year.

The Zacks Consensus Estimate for Terreno Realty’s 2021 FFO per share has been revised marginally upward in a month.

The Zacks Consensus Estimate for CubeSmart’s ongoing-year FFO per share has moved 2% north to $2.08 over the past month. Its long-term growth rate is projected at 9.8%.

The Zacks Consensus Estimate for CubeSmart’s 2021 FFO per share suggests an increase of 20.9% year over year. Currently, CUBE carries a Zacks Rank of 2.

Rexford Industrial holds a Zacks Rank of 2 at present. Its long-term growth rate is projected at 12.8%.

The Zacks Consensus Estimate for Rexford Industrial Realty’s 2021 FFO per share has been revised 1.2% upward in a month to $1.63.

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.