Gladstone Commercial Buys Land, Expands Springfield Property
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.
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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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