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Gladstone Commercial (GOOD) Buys Wilmington Industrial Facility

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·3 min read
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To expand its property base in targeted thriving markets, Gladstone Commercial Corporation GOOD recently shelled out $18.8 million to purchase a 345,584-square-foot industrial manufacturing/distribution warehouse in Wilmington, NC. The move boosts Gladstone Commercial's industrial presence in the Southeast with its 10th acquisition in North Carolina.

The acquisition reflects GOOD's strategy of expanding on the buyouts of high-quality industrial assets in strong growth corridors leased to tenants with solid credit profiles.

Located on 59 acres, this property is fully leased to Pacon Manufacturing, with 13.1 years of remaining lease term. The property will generate stable revenues for Gladstone Commercial as it functions as the mission-critical manufacturing and distribution headquarters facility for Pacon, which is a contract manufacturer of household/medical cleaning supplies.

Apart from being leased to a strong tenant, this property enjoys access to I-40 and I-95, which connect the Port of Wilmington and Wilmington Terminal Railroad to key markets in North and South.

The acquisition of properties in Gladstone Commercial’s targeted growth markets augurs well for long-term growth. On May 4, 2022, GOOD acquired a 260,719-square-foot, two-property industrial portfolio, with locations in Fort Payne, AL and Cleveland, OH, for $19.3 million.

Moreover, Gladstone Commercial has been witnessing active leasing, aiding solid occupancy, healthy rental collections and ample liquidity to back its acquisitions and growth efforts. As of May 6, 2022, Gladstone Commercial’s portfolio occupancy was 97.2% due to successful leasing activities. Moreover, Gladstone Commercial collected 100% of the April cash base rent. The healthy levels of rental receipts have enabled GOOD to maintain its dividend rate.

However, shares of this Zacks Rank #3 (Hold) company have declined 11% in the past three months, wider than its industry’s fall of 3.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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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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Gladstone Commercial Corporation (GOOD) : Free Stock Analysis Report

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