Gladstone Commercial (GOOD) Sees High Occupancy in February
Gladstone Commercial Corporation GOOD has been witnessing active leasing, aiding solid occupancy, healthy rental collections and ample liquidity to back its acquisitions and growth efforts.
As of Feb 28, 2022, Gladstone Commercial’s portfolio occupancy was 97.2% due to successful leasing activities. Moreover, Gladstone Commercial collected 100% of the February cash base rent. Healthy levels of rental receipts have enabled GOOD to maintain its dividend rate.
Gladstone Commercial is also focused on its growth measures. In February, the company acquired an 80,000-square-foot industrial facility on 9.2 acres in Wilkesboro, NC for $7.4 million.
Gladstone Commercial is also witnessing healthy demand for its properties. So far in the year, GOOD extended 127,444 square feet of space, covering one tenant with a new residual lease term of 11 years. This annualized straight-line rent of this transaction amounts to $1.1 million.
Further, management noted that as of Feb 28, 2022, the company’s available liquidity was $19.7 million, consisting of revolving credit facility and cash in hand. Gladstone Commercial continues to raise equity capital. Since Jan 1, 2022, and through Feb 28, 2022, the company issued 227,965 shares of common stock for net proceeds of $5.2 million. Such an amount of liquidity supports Gladstone Commercial’s growth strategy.
Shares of this Zacks Rank #3 (Hold) company have rallied 8% in the past year, underperforming the industry’s growth of 16.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Stocks to Consider
Some key picks from the REIT sector include Prologis, Inc. PLD, Iron Mountain Incorporated IRM and Public Storage PSA.
Prologis holds a Zacks Rank of 2 (Buy) at present. Prologis’ 2022 revenues are expected to increase 8.7% year over year.
The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised 2.9% upward in the past month to $5.02.
The Zacks Consensus Estimate for Iron Mountain’s 2022 FFO per share has moved 5.5% north to $3.09 in the past week.
Iron Mountain's 2022 revenues are expected to increase 15.5% year over year. Currently, IRM carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Public Storage’s 2022 FFO per share has moved 2.3% north to $14.86 over the past week.
Currently, Public Storage carries a Zacks Rank of 2. PSA's long-term growth rate is projected at 8.30%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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