LONDON, UK / ACCESSWIRE / March 16, 2018 / Active-Investors has a free review on Gladstone Commercial Corporation (NASDAQ: GOOD) (''Gladstone'') following the Company's announcement that it will begin trading ex-dividend on March 19, 2018. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date (excluding weekend) that is by latest at the end of the trading session on March 16, 2018. 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 09, 2018, Gladstone announced a $0.125 cash distribution per common share for March 2018, payable to shareholders on March 30, 2018, on record as of March 20, 2018.
Gladstone's indicated dividend represents a yield of 8.39%, which is more than double compared to the average dividend yield of 3.72% 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 has never skipped, reduced, or deferred a monthly or quarterly common stock distribution since its inception 10 years ago.
Gladstone has a dividend payout ratio of 94.3%, which indicates that the Company distributes approximately $0.94 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 had trailing twelve-month (ttm) earnings of $0.18 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 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, for the quarter ended December 31, 2017, Gladstone reported net loss attributable to shareholders of $4.27 million, or $0.15 per diluted share, as compared to net loss of $384,000, or $0.01 per diluted share, for the previous quarter.
On the other hand, for the three months ended December 31, 2017, Gladstone's Core FFO, was $11.03 million or $0.38 per diluted share, compared to $10.69 million, or $0.38 per diluted share, for Q3 2017. The Company's FFO number indicates that the Company should be able to comfortably cover its dividend payout.
Recent Development for Gladstone
On March 12, 2018, Gladstone announced that it completed the acquisition of a 127,444 square foot, Class-A new construction, industrial building in Vance, Alabama for $14.3 million dollars. The initial capitalization rate for the acquisition was 6.98%, with an average capitalization rate of 7.62%.
The property is a build-to-suit for Truck and Wheel USA Corporation (''Truck and Wheel'') on a 10-year lease that commenced January 01, 2018. The property is used primarily for Truck and Wheel to assemble and make deliveries of wheels and tires to the nearby Mercedes Benz plant. The acquisition of the industrial property is consistent with the Company's growth strategy of acquiring high-quality assets in growth regions with credit-worthy tenants.
About Gladstone Commercial Corp.
Gladstone is a REIT focused on acquiring, owning, and operating net leased industrial and office properties across the United States. As of December 31, 2017, its real estate portfolio consisted of 99 properties located in 24 states, totaling approximately 11.5 million square feet.
Stock Performance Snapshot
March 15, 2018 - At Thursday's closing bell, Gladstone Commercial's stock marginally fell 0.11%, ending the trading session at $17.83.
Volume traded for the day: 104.80 thousand shares.
Stock performance in the last month - up 1.02%
After yesterday's close, Gladstone Commercial's market cap was at $494.60 million.
The stock has a dividend yield of 8.41%.
The stock is part of the Financial sector, categorized under the REIT - Diversified industry. This sector was flat at the end of the session.
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