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Gladstone Commercial Buys Land, Expands Springfield Property

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Gladstone Commercial Corporation GOOD recently announced that it has acquired an additional land parcel to support expansion of its tenant — T-Mobile Central, LLC — a subsidiary of T-Mobile USA, Inc. (TMUS). The land is adjacent to the company’s 78,421-square-foot office and call center in Springfield, MO. 

In fact, this one-story property is located at 2645 N. Airport Plaza Ave., Springfield, MO 65803. Further, the class A office building serves as T-Mobile’s national customer service center.

The land acquisition will enable the company to increase its parking ratio to 10.2/1000. This, in turn, will aid T-Mobile in consolidating the head count in the Springfield property.

Gladstone purchased the office property in 2011 for $15.9 million. It was built-to-suit for T-Mobile Central in 2006. Further, the property is leased to the tenant through 2021 and has three renewal options to extend lease for additional five-year periods.

Per management, this buyout reflects the company’s efforts to cater to the changing needs of its tenants and stabilize same-store rental income. Moreover, expansion in the Springfield location highlights T-Mobile’s confidence in the region.

The move complements the company’s investment activity that aims to improve operations and financial metrics. Per the company’s second -quarter 2018 earnings call, it has shelled out $130 million for seven property acquisitions in high-growth markets over the past 12 months. Addition, as part of its capital-recycling program, the company disposed three non-core properties. 

In late July, Gladstone came out with second-quarter 2018 funds from operations (FFO) per share of 40 cents that met the Zacks Consensus Estimate. Also, the figure came in higher than the year-ago tally of 37 cents.

Shares of this Zacks Rank #3 (Hold) company have outperformed the industry it belongs to, over the past six months. Its shares have gained 9.1%, while the industry has recorded growth of 7% during this time frame.


Additionally, the Zacks Consensus Estimate for its 2018 FFO per share has been revised marginally upward over the last month, reflecting analysts’ bullish sentiments.

Key Picks

Better-ranked stocks from the REIT space include VICI Properties VICI, Park Hotels and Resorts, Inc. PK and W.P. Carey Inc. WPC. All three stocks carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

VICI Properties’ Zacks Consensus Estimate for 2018 FFO per share has been revised upward by a cent to $1.50 over the past 60 days. Its shares have gained 6.8% in the past six months.

Park Hotels and Resorts’ FFO per share estimates for 2018 witnessed 2% upward revision to $2.93 in a month’s time. Its shares have appreciated 22.8% over the past six months.

W.P.Carry’s FFO per share estimates for the current year moved up marginally in the past 30 days to $6.39. The stock has rallied 5.6% in six months’ time.

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