Gladstone Commercial Corp
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Gladstone Commercial Corp
Gladstone Commercial Corp. is a real estate investment trust, which engages in the acquisition, managing and ownership of office and industrial properties. The company is headquartered in Mc Lean, Virginia. The company went IPO on 2003-08-13. The firm is focused on acquiring, owning and managing primarily office and industrial properties. The firm conducts its operations through a subsidiary, Gladstone Commercial Limited Partnership (Operating Partnership). Its real estate portfolio consists of approximately 129 properties totaling 16.2 million square feet of rentable space, located in over 27 states. Its portfolio consists primarily of single-tenant industrial and office real property. The firm's properties are located in various states of the United States, such as Florida, Texas, Pennsylvania, Ohio, Georgia, Utah, North Carolina, Alabama, Michigan and South Carolina. The firm's properties have tenants from various industries, such as telecommunications, diversified/conglomerate services, healthcare, automotive, banking, diversified/conglomerate manufacturing, personal, food and miscellaneous services, and information technology (IT).
Gladstone Commercial Corp. is a real estate investment trust, which engages in the acquisition, managing and ownership of office and industrial properties. The company is headquartered in Mc Lean, Virginia. The company went IPO on 2003-08-13. The firm is focused on acquiring, owning and managing primarily office and industrial properties. The firm conducts its operations through a subsidiary, Gladstone Commercial Limited Partnership (Operating Partnership). Its real estate portfolio consists of approximately 129 properties totaling 16.2 million square feet of rentable space, located in over 27 states. Its portfolio consists primarily of single-tenant industrial and office real property. The firm's properties are located in various states of the United States, such as Florida, Texas, Pennsylvania, Ohio, Georgia, Utah, North Carolina, Alabama, Michigan and South Carolina. The firm's properties have tenants from various industries, such as telecommunications, diversified/conglomerate services, healthcare, automotive, banking, diversified/conglomerate manufacturing, personal, food and miscellaneous services, and information technology (IT).
Portfolio Focus: Gladstone Commercial is increasing its industrial allocation, now at 69% of annualized straight-line rents, and expects this to continue growing beyond 70%.
Occupancy & Leasing: Portfolio occupancy reached 99.1%, the highest since Q1 2019, with successful leasing activity on 734,000 square feet and strong rent collections.
Financial Performance: Q3 operating revenues rose to $40.8 million, operating expenses dropped to $26 million, and FFO per share was $0.35, down from $0.38 a year ago.
Balance Sheet Actions: The company increased and extended its credit facility to $600 million and raised $61 million through equity issuance.
CapEx & Dividend: Elevated Q3 capital expenditures were driven by accretive leasing renewals; management remains confident in the sustainability of the $0.30 per share quarterly dividend.
Expense Headwinds: Same-property operating expenses rose over 20%, mainly due to inflation and higher insurance costs, though some costs are passed through to tenants.
Guidance & Outlook: Cap rates are expected to compress further, future CapEx is anticipated to decline, and acquisition activity will remain focused on high-quality industrial assets.