Gladstone Commercial (NASDAQ:GOOD) Corporation GOOD announced a lease renewal of its Wichita, KS office building. The five-year lease extension with T-Mobile USA, Inc. through September 30, 2027, will help the REIT secure steady cash flow from the property for a decent period.
Located at 2525 North Woodlawn Avenue in Wichita, this 69,287-square-foot, one-story, build-to-suit class A office building serves as one of T-Mobile's national customer service centers. T-Mobile offers wireless voice, messaging, and data services in the United States and its territories.
Gladstone Commercial is also seeing decent demand for its industrial properties. Recently the company clinched a lease expansion and extension at an industrial property in Raleigh, NC with Sumitomo Electric Lightwave Corp.
With the lease expansion, Sumitomo, which previously occupied 93,931 square feet of space at this property, will now occupy 123,574 square feet, which represents the entire building. Also, the lease has been extended for five additional years through Dec 31, 2032. Sumitomo, which deals in optical fiber technologies, uses the property for manufacturing. Leases extensions with such credit tenants provide revenue visibility over a long term.
Moreover, Gladstone Commercial’s rent collections have also been strong. In its business update released in February, the company noted that approximately 98% of the February cash base rents and January cash base rents have been paid and collected.
Also, the company noted that on Feb 11, it added a new $65-million term loan component to its credit facility, including a $15 million delayed funding component. The company expects this to support its future portfolio expansion.
Notably, Gladstone Commercial purchased nine fully-occupied industrial properties, with a total of roughly 1.7 million square feet of rental space, for $130 million during 2020 and completed 20 lease transactions in the year.
Gladstone Commercial currently carries a Zacks Rank #3 (Hold). The stock has gained 7.6% compared with the industry’s rally of 3.4% in the past six months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Alpine Income Property Trust, Inc.’s PINE funds from operations (“FFO”) per share estimates for the current year have moved up 5.4% to $1.55 in the past month. The company sports a Zacks Rank of 1 (Strong Buy), currently.
Extra Space Storage (NYSE:EXR) Inc.’s EXR Zacks Consensus Estimate for 2021 FFO per share has moved up 3.2% to $5.84 in the past week. The company currently carries a Zacks Rank of 2 (Buy).
Global Net Lease (NYSE:GNL), Inc. GNL has a Zacks Rank of 2 at present. The Zacks Consensus Estimate for 2021 FFO per share has been revised 4% at $2.10 in a month’s time.
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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