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Gladstone Commercial (GOOD) Posts Strong Rent Receipts, Occupancy

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Despite the pandemic-borne challenges, Gladstone Commercial Corporation GOOD seems to be firing on all cylinders, with high levels of rental collections, active leasing that is driving strong occupancy, and ample liquidity to back its acquisitions and growth initiatives.

Specifically, for 2020, the company has collected 99% of cash base rents. This consisted of cash base rental collection for the first, second, third and fourth quarters of 100%, 98%, 99% and 99%, respectively. Additionally, it has collected around 98% of December cash base rents.

Such encouraging levels of rental receipts have enabled the company to maintain its dividend rate.

Moreover, its leasing activities remain encouraging. On Dec 1, 2020, it announced a 21,000-square-foot lease for seven years with ViaQuest Inc. at its 79,000-square-foot office and laboratory property in Akron, OH, at 260 Springside Drive. The tenant also rents out 78,000 square feet of office space at the company’s property in Columbus, OH, through 2030.

Such leasing moves have driven portfolio occupancy, which was more than 95% as of Dec 14.

As of the same date, Gladstone Commercial’savailable liquidity stood in excess of $40 million, consisting of revolving credit facility and cash on hand. Markedly, since Jul 1, the company has issued 954,000 shares of common stock for net proceeds of $17.3 million.

Such an amount of liquidity supports the company’s growth strategy. In fact, it noted that based on its current acquisition pipeline, incremental acquisitions in the upcoming 30-45 days are projected to be $40-$45 million.

Nonetheless, the company is apprehensive of any additional rent relief requested by tenants during the pandemic, which might affect its top-line growth.

Shares of this Zacks Rank #3 (Hold) company have lost 4.9% over the past six months, which is wider than the industry’s decline of 1%.

 


You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

CubeSmart’s CUBE Zacks Consensus Estimate for 2020 funds from operations (FFO) per share has moved up 1.2% to $1.65 over the past month. The company currently carries a Zacks Rank of 2 (Buy).

Rexford Industrial Realty, Inc. REXR FFO per share estimates for the current year have been revised upward by 1.6% to $1.30 over the past two months. The company carries a Zacks Rank of 2, currently.

City Office REIT, Inc.’s CIO Zacks Consensus Estimate for ongoing-year FFO per share has moved 5.3% north to $1.20 in two months’ time. The company has a Zacks Rank of 2 at present.

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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CubeSmart (CUBE) : Free Stock Analysis Report
 
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