Gladstone Commercial Corp Stock Price, News & Analysis

Gladstone Commercial Corporation (NASDAQ:GOOD) reported its fourth quarter and year-end results for December 31, 2020. Key highlights include total operating revenue of $32.9 million, a slight decrease of 0.8% from the previous quarter. Notably, net income surged to $8.9 million, up 213.6% year-over-year. Funds from operations (FFO) available to common stockholders decreased by 4.6% to $13.0 million. The company maintained a high rent collection rate of 99% during the COVID-19 pandemic and made significant capital gains from property sales, acquiring properties worth $130 million in 2020.

Gladstone Commercial Corporation (NASDAQ:GOOD) will host its Fourth Quarter Earnings Call on February 17, 2021, at 8:30 a.m. EST. The event will be accessible via webcast and phone; details provided in the press release. A replay will be available until February 24, 2021. The company, a real estate investment trust (REIT), focuses on acquiring and operating net leased industrial and office properties across the U.S. More information can be found on their website.

Gladstone Commercial Corporation (Nasdaq:GOOD) reported significant developments amid market volatility. On January 26, 2021, the company acquired a 180,152 square foot distribution facility in Findlay, OH for $11 million, leased fully to American Plastics, with a 7.3% cap rate. Approximately 98% of January cash base rent was collected. However, one tenant at the medical office facility in Baytown, TX will cease operations, which represents 0.01% of annual base rents. The company continues to maintain a liquidity of $25 million as of January 28, 2021.

Gladstone Commercial Corporation (NASDAQ:GOOD) announced the acquisition of a 180,152 square foot distribution building in Findlay, Ohio, for $11.0 million as of January 22, 2021. The transaction features an average capitalization rate of 8.4%. The fully leased property is occupied by American Plastics under a 14-year triple net lease, serving the tenant's essential operations. This acquisition aligns with Gladstone's strategy of expanding its industrial asset portfolio in growth markets, particularly along I-75, an area with robust logistics support.

Gladstone Commercial Corporation (Nasdaq:GOOD) has declared cash distributions for January, February, and March 2021. The common stock will receive $0.12515 per share each month, totaling $0.37545 for the quarter. For senior common stock, the distribution is $0.0875 per share, summing to $0.2625 for the quarter. Series D and E Preferred Stocks will receive $0.1458333 and $0.138021 respectively each month. The company has consistently paid monthly distributions since inception. Earnings for Q4 2020 will be reported on February 16, 2021, with a conference call on February 17, 2021.

Gladstone Commercial (NASDAQ: GOOD) announced a seven-year lease extension with Diamond Technical Services Inc. for 21,000 square feet at its Bolingbrook, IL property. This extension increases the weighted lease term by over 90% and straight-line rent by more than 17%. The relationship with Diamond, which specializes in engineering consulting for multiple industries, reflects the positive management and operational synergy at the property. Gladstone's portfolio consists of 122 properties totaling approximately 14.9 million square feet across 28 states.

Gladstone Commercial Corporation (NASDAQ: GOOD) announced the acquisition of a 155,000 square foot food-grade manufacturing facility in Pittsburgh, Pennsylvania for $12.8 million on December 21, 2020. The property, leased to TruFood Mfg., features a 7.9% average capitalization rate and is critical for the tenant's operations. This acquisition aligns with Gladstone's strategy to expand its industrial assets in high-growth markets, marking its second investment in Pittsburgh.

Gladstone Commercial Corporation (NASDAQ:GOOD) announced the successful sale of a 52,000-square-foot flex office building in Austin, TX, for approximately $8.6 million on December 18. The company realized a gain of about $2.8 million, resulting in a levered internal rate of return of 13.2% over its 16-year ownership. This strategic sale allows Gladstone to redeploy funds into targeted industrial investments, enhancing its capital recycling efforts.

Gladstone Commercial announced the acquisition of a 278,000 square foot industrial facility in Huntsville, Alabama for $19.9 million, effective December 18, 2020. The property, leased to Dynetics (a subsidiary of Leidos Holdings), boasts a 6.8% initial capitalization rate and a 9.2-year lease term. This acquisition aligns with Gladstone's strategy to expand its portfolio with high-quality, mission-critical assets. The facility, located in Chase Industrial Park, was constructed in 2001 and renovated in 2019, underscoring its value as a significant addition to Gladstone's operations.