Gladstone (GOOD) Buys Industrial Property In Tennessee Market
Zacks Investment Research | Dec 17, 2019 09:25PM ET
Gladstone Commercial Corporation (NASDAQ:GOOD) recently announced the acquisition of an industrial property in Jackson, TN. The $9 million buyout is in sync with the company’s efforts to fortify its portfolio on high-quality assets in thriving markets with credit-worthy tenants.
The 241,000-square-foot industrial building is fully leased to Berry Global, Inc. It is a build-to-suit for Berry, which was completed this August. The tenant makes use of this warehouse mainly for storage and distribution of products that are manufactured at its neighboring production facility. This is likely to ensure steady returns from the property.
Gladstone Commercial has been making encouraging moves to bolster its property base in key markets, in a bid to bank on upbeat market trends. In fact, the latest acquisition marks the company’s foray into the Tennessee, and the industrial property with access to transportation routes is vital to Berry’s supply chain.
As part of its capital-recycling program, the company is aimed at selling non-core assets and use proceeds to de-lever its portfolio as well as acquire properties in the stronger target-growth markets. Gladstone Commercial’s acquisition pipeline and closings, in the year so far, look good for its industrial properties.
Last month, the company announced making moves to bolster its property base in the Indianapolis market. The company acquired a 231,509-square-foot industrial building, which marked Gladstone Commercial’s third purchase in the market, and the second industrial acquisition in Indianapolis this year.
Such portfolio-expansion efforts will likely fuel growth, as high consumer spending, e-commerce boom and a healthy job market are spurring demand for the industrial real estate category. This is highly encouraging for Gladstone Commercial, as well as other REITs, including Duke Realty Corp. (NYSE:DRE) , Prologis (NYSE:PLD) and Rexford Industrial Realty, Inc. (NYSE:REXR) .
As such for Gladstone Commercial, which is focused on investments in mission-critical facilities occupied by middle market to investment-grade businesses located in growing markets, the latest acquisition will likely be accretive to its earnings and drive long-term growth. Nevertheless, rising supply and protectionist trade policies remain concerns for the industrial real estate market.
Shares of this Rank #4 (Sell) company have declined 2.9% in the past three months. Nevertheless, it is narrower than its Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.