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In a bid to expand its property base in targeted thriving markets, Gladstone Commercial Corporation (GOOD - Free Report) recently shelled out $5.9 million to purchase a 56,000-square-foot industrial facility in Oklahoma City, OK. This marks the company’s second industrial acquisition in Oklahoma.
The sale/leaseback transaction reflects Gladstone Commercial's strategy of expanding on buyouts of high-quality industrial assets in strong growth corridors leased to tenants with solid credit profiles.
Located on three acres, this property is fully leased to Made By Influence LLC, with seven years of remaining absolute NNN lease term. The tenant uses the industrial manufacturing warehouse for producing branded apparel and other custom products. It is also used for short-term storage before the final product is dispatched to national retail outlets or directly to consumers. Thus, the property will generate stable revenues for the company as it is functional and mission-critical to the tenant, with a decent residual lease term and a strong tenant.
The acquisition of properties in Gladstone Commercial’s targeted growth markets augurs well for long-term growth. In February, GOOD acquired an 80,000-square-foot industrial facility on 9.2 acres in Wilkesboro, NC for $7.4 million.
Moreover, Gladstone Commercial has been witnessing active leasing, aiding solid occupancy, healthy rental collections and ample liquidity to back its acquisitions and growth efforts. As of Feb 28, 2022, Gladstone Commercial’s portfolio occupancy was 97.2% due to successful leasing activities. Moreover, Gladstone Commercial collected 100% of the February cash base rent. Healthy levels of rental receipts have enabled GOOD to maintain its dividend rate.
Some key picks from the REIT sector include Prologis, Inc. (PLD - Free Report) , Iron Mountain Incorporated (IRM - Free Report) and Public Storage (PSA - Free Report) .
Prologis holds a Zacks Rank of 2 (Buy) at present. Prologis’ 2022 revenues are expected to increase 8.7% year over year.
The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised 9.5% upward in the past two months to $5.07.
The Zacks Consensus Estimate for Iron Mountain’s 2022 FFO per share has moved 1.6% north to $3.14 in the past week.
Iron Mountain's 2022 revenues are expected to increase 15.2% year over year. Currently, IRM carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Public Storage’s 2022 FFO per share has moved 1.3% north to $15.17 over the past week.
Currently, Public Storage carries a Zacks Rank of 2. PSA's long-term growth rate is projected at 6.1%.
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.
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Gladstone Commercial (GOOD) Buys Oklahoma Industrial Facility
In a bid to expand its property base in targeted thriving markets, Gladstone Commercial Corporation (GOOD - Free Report) recently shelled out $5.9 million to purchase a 56,000-square-foot industrial facility in Oklahoma City, OK. This marks the company’s second industrial acquisition in Oklahoma.
The sale/leaseback transaction reflects Gladstone Commercial's strategy of expanding on buyouts of high-quality industrial assets in strong growth corridors leased to tenants with solid credit profiles.
Located on three acres, this property is fully leased to Made By Influence LLC, with seven years of remaining absolute NNN lease term. The tenant uses the industrial manufacturing warehouse for producing branded apparel and other custom products. It is also used for short-term storage before the final product is dispatched to national retail outlets or directly to consumers. Thus, the property will generate stable revenues for the company as it is functional and mission-critical to the tenant, with a decent residual lease term and a strong tenant.
The acquisition of properties in Gladstone Commercial’s targeted growth markets augurs well for long-term growth. In February, GOOD acquired an 80,000-square-foot industrial facility on 9.2 acres in Wilkesboro, NC for $7.4 million.
Moreover, Gladstone Commercial has been witnessing active leasing, aiding solid occupancy, healthy rental collections and ample liquidity to back its acquisitions and growth efforts. As of Feb 28, 2022, Gladstone Commercial’s portfolio occupancy was 97.2% due to successful leasing activities. Moreover, Gladstone Commercial collected 100% of the February cash base rent. Healthy levels of rental receipts have enabled GOOD to maintain its dividend rate.
Shares of this Zacks Rank #3 (Hold) company have rallied 3% in the past year, underperforming the industry’s growth of 9.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Stocks to Consider
Some key picks from the REIT sector include Prologis, Inc. (PLD - Free Report) , Iron Mountain Incorporated (IRM - Free Report) and Public Storage (PSA - Free Report) .
Prologis holds a Zacks Rank of 2 (Buy) at present. Prologis’ 2022 revenues are expected to increase 8.7% year over year.
The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised 9.5% upward in the past two months to $5.07.
The Zacks Consensus Estimate for Iron Mountain’s 2022 FFO per share has moved 1.6% north to $3.14 in the past week.
Iron Mountain's 2022 revenues are expected to increase 15.2% year over year. Currently, IRM carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Public Storage’s 2022 FFO per share has moved 1.3% north to $15.17 over the past week.
Currently, Public Storage carries a Zacks Rank of 2. PSA's long-term growth rate is projected at 6.1%.
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.