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Gladstone (GOOD) Acquires Industrial Facility in North Carolina

Gladstone's (GOOD) latest acquisition is in line with its strategy of achieving growth through purchases of high-quality industrial assets leased to tenants with solid credit profiles.

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This story originally appeared on Zacks

In an effort to expand its property base in the targeted thriving markets, Gladstone Commercial Corporation GOOD recently shelled out $12.8 million for the purchase of 161,458 square foot industrial facility in Monroe, NC. This marks the company’s third industrial acquisition in the Charlotte, NC metropolitan statistical area.

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Reflecting bullish sentiments, shares of Gladstone Commercial moved 1.5% up during the last day’s trading session.

The transaction is in line with Gladstone Commercial's strategy of achieving growth on the buyouts of functional assets at strong industrial locations leased out to tenants with strong credit profiles.

Located on 20.45 acres, the property is fully leased to Assa Abloy Entrance Systems, U.S., Inc. The lease has 7.9 years of remaining absolute NNN lease term. The property serves as Assa Abloy's North American headquarters and is used by the tenants for the manufacturing and distribution of its access or entrance products and solutions. Hence, the property will generate stable revenues for Gladstone Commercial by being mission-critical to the tenant coupled with a decent residual lease term and a strong tenant.

Per EJ Wislar, senior vice president of Gladstone Commercial, "We are excited to continue building our industrial presence in the Southeast. This facility is the North American headquarters for a strong tenant, and we are pleased to add another Charlotte-area property to the portfolio."

Moreover, Bob Cutlip, president of Gladstone Commercial, commented, "This transaction builds upon our strategy to increase our portfolio allocation to industrial buildings, and we are glad to welcome such a well-regarded tenant to our portfolio."

Previously, in August, the company spent $4.7 million onthe purchase of an 81,760-square-foot industrial facility in Peru, IL. Located on 4.1 acres, this property is fully leased to Pretium Packaging, LLC. The initial capitalization rate for the acquisition was 6.9% with an average capitalization rate of 7.6%.

Gladstone Commercial currently carries a Zacks Rank #3 (Hold). The stock has gained 25.7% compared with the industry’s rally of 22.9% so far in the year.

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The Zacks Consensus Estimate for Public Storage’s PSA current-year FFO per share has moved 1.1% up to $12.52 in the past week. The company currently carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CubeSmart’s CUBE 2021 FFO per share has moved marginally north to $2.05 over the past month. The company carries a Zacks Rank of 2, currently.

Extra Space Storage Inc. EXR carries a Zacks Rank of 2 at present. The Zacks Consensus Estimate for the ongoing year’s FFO per share has been revised marginally upward to $6.62 over the past month.

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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