We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Gladstone Commercial (GOOD) Sells Georgia Medical Office Assets
Read MoreHide Full Article
Gladstone Commercial Corporation (GOOD - Free Report) recently sold its two medical office properties in the Atlanta MSA at a cap rate of 5.97%. The properties, which were leased to Northside Hospital, encompassed 26,331 square feet of space.
GOOD shares were up marginally in Friday’s regular trading session on the Nasdaq.
The REIT realized a leveraged internal rate of return of around 13.2% on the properties, which were acquired as part of an eight-property portfolio transaction in 2007. The move comes as part of Gladstone Commercial’s capital recycling efforts, allowing the company to redeploy capital into industrial real estate.
Per Buzz Cooper, the president of Gladstone Commercial, "This sale is a strong outcome for the legacy portfolio and reinforces our overall migration to the industrial sector."
GOOD is focused on expanding on the buyouts of high-quality industrial assets in strong growth corridors leased to tenants with solid credit profiles. In line with this, in May, Gladstone Commercial acquired a 142,125-square-foot industrial manufacturing, distribution and service facility located on 115 acres in Warfordsburg, PA, for $11.7 million at a GAAP capitalization rate of 12.3%.
Gladstone Commercial also collected 100% of cash rents during April, May and June, underscoring the robustness of its tenant base. The strong occupancy rate of 98.5% as of Jun 30, 2024 is a testament to the trust tenants place in the company’s properties and management.
Given the strong demand for industrial real estate, the maximization of value through non-core asset dispositions and the redeploying of proceeds for the selective re-positioning of GOOD’s portfolio with a more industrial focus augur well for its long-term growth.
Gladstone Commercial currently carries a Zacks Rank #2 (Buy). The stock has rallied 19.1%, outperforming the industry’s growth of 10.3% in the past six months.
The Zacks Consensus Estimate for Lamar Advertising’s 2024 FFO per share has moved marginally northward in the past month to $8.08.
The Zacks Consensus Estimate for Crown Castle’s ongoing year’s FFO per share has increased marginally over the past month to $6.97.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Gladstone Commercial (GOOD) Sells Georgia Medical Office Assets
Gladstone Commercial Corporation (GOOD - Free Report) recently sold its two medical office properties in the Atlanta MSA at a cap rate of 5.97%. The properties, which were leased to Northside Hospital, encompassed 26,331 square feet of space.
GOOD shares were up marginally in Friday’s regular trading session on the Nasdaq.
The REIT realized a leveraged internal rate of return of around 13.2% on the properties, which were acquired as part of an eight-property portfolio transaction in 2007. The move comes as part of Gladstone Commercial’s capital recycling efforts, allowing the company to redeploy capital into industrial real estate.
Per Buzz Cooper, the president of Gladstone Commercial, "This sale is a strong outcome for the legacy portfolio and reinforces our overall migration to the industrial sector."
GOOD is focused on expanding on the buyouts of high-quality industrial assets in strong growth corridors leased to tenants with solid credit profiles. In line with this, in May, Gladstone Commercial acquired a 142,125-square-foot industrial manufacturing, distribution and service facility located on 115 acres in Warfordsburg, PA, for $11.7 million at a GAAP capitalization rate of 12.3%.
Gladstone Commercial also collected 100% of cash rents during April, May and June, underscoring the robustness of its tenant base. The strong occupancy rate of 98.5% as of Jun 30, 2024 is a testament to the trust tenants place in the company’s properties and management.
Given the strong demand for industrial real estate, the maximization of value through non-core asset dispositions and the redeploying of proceeds for the selective re-positioning of GOOD’s portfolio with a more industrial focus augur well for its long-term growth.
Gladstone Commercial currently carries a Zacks Rank #2 (Buy). The stock has rallied 19.1%, outperforming the industry’s growth of 10.3% in the past six months.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the REIT sector are Lamar Advertising (LAMR - Free Report) and Crown Castle Inc. (CCI - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Lamar Advertising’s 2024 FFO per share has moved marginally northward in the past month to $8.08.
The Zacks Consensus Estimate for Crown Castle’s ongoing year’s FFO per share has increased marginally over the past month to $6.97.
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.