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Gladstone Commercial's (GOOD) September Occupancy Exceeds 97%

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Gladstone Commercial Corporation GOOD has been witnessing active leasing that is aiding solid occupancy, healthy rental collections and ample liquidity to back its acquisitions and growth efforts.

As of Sep 30, 2021, the company’s portfolio occupancy is in excess of 97%. Successful leasing activities are anticipated to have driven such encouraging portfolio occupancy. Moreover, it has collected 99% of the September cash base rents. The healthy levels of rental receipts have enabled the company to maintain its dividend rate.

Gladstone is also focused on its growth measures, and so far in the year, the company has acquired $45.85 million of industrial properties, at an average GAAP capitalization rate of 7.7%, with a weighted average lease term of 15.5 years. These buyouts aggregate 367,716 square feet of space across eight properties.

The company is also witnessing healthy demand for its properties. In September, it announced securing a five-year lease with a rated investment grade tenant for half of its 320,000-square-foot office building at 717 Parmer Lane in Austin, TX.

Apart from these efforts, management noted that as of Sep 30, 2021, the company’s available liquidity was $33.6 million, consisting of revolving credit facility and cash on hand. Gladstone Commercial continues to raise equity capital, and since the beginning of the year through Sep 30, 2021, it has issued roughly 1.2-million shares of common stock for net proceeds of $24.2 million. Such an amount of liquidity supports Gladstone’s growth strategy.

Shares of this Zacks Rank #3 (Hold) company have gained 20.8% so far in the year, outperforming the industry’s rally of 15.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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The Zacks Consensus Estimate for OUTFRONT Media Inc.’s OUT 2021 FFO per share has moved 8% north to 94 cents over the past two months. The company sports a Zacks Rank of 1, currently.

The Zacks Consensus Estimate for Extra Space Storage Inc.’s EXR current-year FFO per share has moved up 3.6% to $6.57 in the past two months. The company currently carries a Zacks Rank of 2 (Buy).

Terreno Realty Corporation TRNO carries a Zacks Rank of 2, at present. The Zacks Consensus Estimate for the ongoing year’s FFO per share has been revised marginally upward to $1.70 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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