LONDON, UK / ACCESSWIRE / January 18, 2018 / Active-Investors has a free review on Gladstone Commercial Corp. (NASDAQ: GOOD) following the Company's announcement that it will begin trading ex-dividend on January 19, 2017. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on January 18, 2017. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on GOOD:
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On January 9, 2018, Gladstone Commercial announced a $0.125 cash distribution per common share for January 2018, payable on January 31, 2018, to shareholders on record as of January 22, 2018.
Gladstone Commercial's indicated dividend represents a yield of 7.56%, which is substantially above the average dividend yield of 4.29% for the financial sector. The Company has paid 156 consecutive monthly cash distributions on its common stock. Prior to paying distributions on a monthly basis, the Company paid five consecutive quarterly cash distributions. Gladstone Commercial has never skipped, reduced, or deferred a monthly or quarterly common stock distribution since inception, that is over 10 years ago.
Gladstone Commercial has a dividend payout ratio of 98.7%, which denotes that the Company distributes approximately $0.99 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, Gladstone Commercial had trailing twelve-month (ttm) earnings of $0.04 compared to the Company's annualized dividend of $1.50. One of the primary reasons for the difference between earnings and annualized dividend is that Gladstone Commercial is a Real Estate Investment Trust (REIT) which is structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.
Since depreciation is a non-cash charge, it does not directly impact the ability of dividend the companies can distribute. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization to earnings and subtracting any gains on sales which then provides a better picture of any company's profitability and capacity to pay and to sustain dividends. For instance, Gladstone Commercial's net loss attributable to common stockholders for the three months ended September 30, 2017, was $0.4 million, or $0.01 per share, compared to net loss attributable to common stockholders for the three months ended June 30, 2017, of $2.0 million, or $0.08 per share. On the other hand, the Company's Core FFO available to common shareholders for the three months ended September 30, 2017, was $10.7 million, or $0.38 per share, a 9.5% increase compared to the three months ended June 30, 2017. The FFO indicates that the Company should be able to comfortably cover its dividend payout.
As of September 30, 2017, Gladstone Commercial's cash and cash equivalents were $4.29 million compared to $4.66 million available as of December 31, 2016. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.
Recent Development for Gladstone Commercial
On December 04, 2017, Gladstone Commercial announced that it has completed the acquisition of a 204,587-square foot, Class-A, two office building portfolios in Columbus, Ohio and the Salt Lake City, Utah suburb of South Jordan for $37.6 million dollars. The initial capitalization rate for the acquisition was 8.18%, with an average capitalization rate of 9.23%.
The portfolio is 100% leased with a weighted average lease term of 8.6 years. Smith Barney Financing, LLC (MSSBF) is the anchor tenant and leases 92% of the portfolio. MSSBF is a major US operating subsidiary of Morgan Stanley.
The Columbus asset is a fully leased three-story, 102,559 square foot office building. MSSBF is the anchor tenant, leasing 84% of the property through December 31, 2025. The remaining property area is occupied by Congressional Bank, a privately owned commercial bank, through July 31, 2020. The Salt Lake City asset is a three-story, 102,028 square foot office building that is 100% leased to MSSBF until December 31, 2027.
Stock Performance Snapshot
January 17, 2018 - At Wednesday's closing bell, Gladstone Commercial's stock rose 1.02%, ending the trading session at $19.90.
Volume traded for the day: 133.40 thousand shares.
After yesterday's close, Gladstone Commercial's market cap was at $553.42 million.
The stock has a dividend yield of 7.54%.
The stock is part of the Financial sector, categorized under the REIT - Diversified industry. This sector was up 1.0% at the end of the session.
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