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Gladstone Commercial Announces Acquisition in Newport News, Virginia

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(Neutral)

Gladstone Commercial (Nasdaq: GOOD) acquired a 153,890 square foot industrial property in Newport News, Virginia for $22.75 million. The facility is 100% leased on a long-term net lease to a subsidiary of Huntington Ingalls Industries.

The deal was funded with internally generated cash flow, with no new equity issued. According to Gladstone Commercial, the transaction enhances portfolio quality and increases industrial cash and straight-line rents, while the company retains liquidity via cash on hand and its line of credit.

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Positive

  • Acquisition of 153,890 sq. ft. Newport News industrial property for $22.75 million
  • Property 100% leased on long-term net lease to HII subsidiary
  • Funded entirely from internally generated cash flow, no new equity issuance
  • Company states ample liquidity remains via cash and line of credit
  • Management indicates transaction increases industrial cash and straight-line rents

Negative

  • None.

News Market Reaction – GOOD

+0.78%
+0.78% Session close to close

In the May 21 session, GOOD gained 0.78%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights GOOD’s continued shift toward industrial, mission-critical assets, addi...
Analysis

This announcement highlights GOOD’s continued shift toward industrial, mission-critical assets, adding a 153,890 sq ft Newport News facility for $22.75M, fully leased to an HII subsidiary on a long-term net lease. Management emphasizes funding via internally generated cash flow without new equity issuance and notes increased industrial cash and straight-line rents. In light of prior acquisitions and existing $85M senior notes, investors may watch lease terms, tenant credit, and future financing choices for this strategy.

Key Figures

Current price: $12.79 Property size: 153,890 square feet Acquisition price: $22.75 million +5 more
8 metrics
Current price $12.79 Pre-news trading level for GOOD
Property size 153,890 square feet Newport News industrial acquisition
Acquisition price $22.75 million Cost of Newport News industrial property
Occupancy 100% leased Facility leased to HII subsidiary on long-term net lease
Financing source Internally generated cash flow Transaction completed without additional equity issuance
Prior portfolio size 150+ properties Industrial and other assets as of Dec 31, 2025
Senior notes issued $85,000,000 5.99% Senior Guaranteed Notes due Dec 15, 2030
Q1 2026 Core FFO $17.0M ($0.35/share) First quarter 2026 results

Previous Acquisition Reports

5 past events · Latest: Oct 01 (Positive)
Same Type Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Oct 01 Industrial acquisition Positive -0.3% Acquisition of 693,236 sq ft industrial portfolio for $54.5M on net lease.
Jun 26 Industrial acquisition Positive +0.1% Purchase of 215,102 sq ft Michigan industrial facility at 9.59% GAAP cap rate.
May 12 Industrial acquisition Positive +1.3% Acquisition of 303,991 sq ft Class A cold-storage facility for $62.7M, 100% leased.
Mar 31 Industrial acquisition Positive +0.5% Purchase of 140,304 sq ft USDA food facility near DFW for $44M on 11.3-year NNN lease.
Feb 20 Industrial acquisition Positive -0.6% Acquisition of 215,474 sq ft Houston manufacturing facility via 10-year absolute NNN lease.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

GOOD’s prior industrial acquisitions generally saw modest price moves, with more positive than negative same-day reactions.

Recent Company History

Over the past year, Gladstone Commercial has repeatedly expanded its industrial footprint through acquisitions. Notable deals include a 693,236 sq ft portfolio for $54.5M on Oct 1, 2025, a 215,102 sq ft facility for $16.25M on Jun 26, 2025, and a 303,991 sq ft Class A facility for $62.7M on May 12, 2025. These were typically fully leased to single, creditworthy tenants on long-duration net leases. The current Newport News acquisition continues this industrial, tenant-focused strategy.

Key Terms

net lease, line of credit
2 terms
net lease financial
"leased to a subsidiary of Huntington Ingalls Industries ("HII") ... on a long-term net lease."
A net lease is a real estate lease in which the tenant pays some or all property expenses—such as taxes, insurance and maintenance—in addition to base rent, so the landlord receives a steadier stream of income with fewer variable costs. For investors, net leases can behave like a bond: they offer predictable, long-term cash flow and lower property-management risk, but the investor still faces vacancy, credit and market-value risks.
line of credit financial
"ample availability via cash on hand and its line of credit to continue pursuing"
A line of credit is a flexible borrowing arrangement that lets a company draw money up to a preset limit, repay it, and borrow again as needed—similar to a business credit card or an emergency tap on a savings account. It matters to investors because it shows how a firm manages short-term cash needs and growth funding without taking a single large loan; access, cost, and attached conditions can affect liquidity, interest expenses and financial risk.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MCLEAN, VA / ACCESS Newswire / May 21, 2026 / Gladstone Commercial Corporation (Nasdaq:GOOD) ("Gladstone Commercial") is pleased to announce the acquisition of a mission-critical 153,890 square foot industrial property in Newport News, Virginia for $22.75 million. The acquired facility is 100% leased to a subsidiary of Huntington Ingalls Industries ("HII"), America's largest shipbuilder, on a long-term net lease. The transaction was made possible through internally generated cash flow without additional equity issuances. Following the transaction, Gladstone Commercial has ample availability via cash on hand and its line of credit to continue pursuing high quality industrial assets.

"We are excited to expand our industrial portfolio with a quality asset on a long-term lease to a strong, creditworthy tenant and mission-critical to American shipbuilding and the U.S. Navy, " said Nick Lindsay, Vice President of Gladstone Commercial.

"The property's characteristics and location make it well suited for HII's Newport News Shipbuilding division, and general manufacturing operations," added Greg Yayac, Senior Vice President of Gladstone Commercial. "The asset and tenant are great additions to our industrial portfolio."

Buzz Cooper, Chief Executive Officer and President, said, "We continue to focus on well-located industrial assets supported by a disciplined underwriting process. This transaction reflects our commitment to strategically expanding our portfolio and allows us to grow through internally generated capital without external equity issuances. The transaction not only increases the quality of our portfolio but increases industrial cash and straight-line rents as well."

About Gladstone Commercial (Nasdaq:GOOD)

Gladstone Commercial is a real estate investment trust focused on acquiring, owning and operating net leased industrial and office properties across the United States. As of March 31, 2026, Gladstone Commercial's real estate portfolio consisted of 151 properties located in 27 states, totaling approximately 17.7 million square feet. For additional information, please visit www.gladstonecommercial.com.

For Broker Submittals:

Southeast/Northeast

Midwest/West

Nick Lindsay

Ryan Carter

Vice President

Executive Vice President

(703) 966-3864

(571) 451-0019

Nick.Lindsay@gladstone.com

Ryan.Carter@gladstone.com

South Central

Todd Alan McDonald

Senior Vice President

(703) 287-5895

Todd.McDonald@gladstone.com

Investor or Media Inquiries:

Buzz Cooper

Catherine Gerkis

CEO & President

Director of Investor Relations/ESG

(703) 287-5815

(703) 287-5846

Buzz.Cooper@gladstone.com

Catherine.Gerkis@gladstone.com

All statements contained in this press release, other than historical facts, may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements involve inherent risks and uncertainties as they relate to expectations, beliefs, projections, future plans and strategies, anticipated events, or trends concerning matters that are not historical facts and may ultimately prove to be incorrect or false. Forward-looking statements include information about possible or assumed future events, including, without limitation, those relating to the discussion and analysis of Gladstone Commercial's business, financial condition, results of operations, and our strategic plans and objectives. Words such as "may," "might," "believe," "will," "anticipate," "future," "could," "growth," "plan," "intend," "expect," "should," "would," "if," "seek," "possible," "potential," "likely" and variations of these words and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements contain these words. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those included within or contemplated by such statements, including, but not limited to, the description of risks and uncertainties in "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" of the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as filed with the SEC on February 18, 2026, and certain other filings made with the SEC. Gladstone Commercial cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

For further information: Gladstone Commercial Corporation, (703) 287-5893

For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstonecompanies.com.

SOURCE: Gladstone Commercial Corporation



View the original press release on ACCESS Newswire

FAQ

What property did Gladstone Commercial (GOOD) acquire in Newport News, Virginia on May 21, 2026?

Gladstone Commercial acquired a 153,890 square foot industrial property in Newport News, Virginia. According to Gladstone Commercial, the facility is a mission-critical asset for a subsidiary of Huntington Ingalls Industries and supports shipbuilding and general manufacturing operations.

How much did Gladstone Commercial (GOOD) pay for the Newport News industrial acquisition?

Gladstone Commercial paid $22.75 million for the 153,890 square foot industrial property. According to Gladstone Commercial, the asset is fully leased on a long-term net lease to a Huntington Ingalls Industries subsidiary, supporting cash flow visibility for the company’s industrial portfolio.

Who is the tenant of Gladstone Commercial’s newly acquired Newport News property (GOOD)?

The Newport News property is 100% leased to a subsidiary of Huntington Ingalls Industries. According to Gladstone Commercial, the long-term net lease with this creditworthy tenant supports mission-critical operations for American shipbuilding and the U.S. Navy, enhancing portfolio stability.

How did Gladstone Commercial (GOOD) finance its May 2026 Newport News acquisition?

Gladstone Commercial financed the acquisition using internally generated cash flow, without issuing new equity. According to Gladstone Commercial, the company still has ample availability from cash on hand and its line of credit to pursue additional high-quality industrial assets.

What does the Newport News acquisition mean for Gladstone Commercial’s (GOOD) industrial portfolio?

The acquisition adds a fully leased, mission-critical industrial asset to Gladstone Commercial’s portfolio. According to Gladstone Commercial, the transaction increases portfolio quality as well as industrial cash and straight-line rents, aligning with its focus on well-located, underwritten industrial properties.

Is the Newport News industrial property leased on a long-term basis for Gladstone Commercial (GOOD)?

Yes, the Newport News industrial facility is leased on a long-term net lease basis. According to Gladstone Commercial, the tenant is a Huntington Ingalls Industries subsidiary, providing contracted occupancy and supporting predictable rental income from this $22.75 million investment.