Recently, Zacks.com users have been paying close attention to Gladstone Commercial (GOOD). This makes it worthwhile to examine what the stock has in store.
Gladstone Commercial's strategic shift towards industrial real estate, driven by eCommerce growth, has increased industrial assets to 63% of its portfolio income by December 2024. Despite having the highest dividend payout ratio among peers, Gladstone Commercial's $0.30 per share quarterly dividend is well-covered and supported by stable core funds from operations. The REIT's low FFO multiple of 9.6x makes it a bargain compared to peers, with an implied intrinsic value between $14.00 and $15.40.
Gladstone Commercial (GOOD) closed the most recent trading day at $13.69, moving +1.94% from the previous trading session.
Gladstone Commercial's year-to-date pullback has seen its dividend yield swell to 8.8%. The REIT is covering this by 117% using fiscal 2024 fourth quarter FFO. Macro uncertainty is driving a spike in long-term U.S. Treasury yields. This might mean more downside for the preferreds.
In the latest trading session, Gladstone Commercial (GOOD) closed at $15.06, marking a -0.07% move from the previous day.
Gladstone Commercial Corporation is a net-lease REIT focused on industrial and office properties with a high occupancy rate of 98.7% and consistent monthly dividends. Despite a 12.6% annual growth in net income over five years, Gladstone struggles with sustained profitability and faces significant financial leverage risks. The company is shifting towards single-tenant industrial properties to capitalize on strong demand, but its high debt-to-equity ratio and risky dividends are concerning.
As part of its efforts to expand in strong industrial locations, GOOD acquires a food processing facility in the Dallas/Fort Worth area.
Gladstone Commercial (GOOD) reachead $14.98 at the closing of the latest trading day, reflecting a +0.54% change compared to its last close.
Gladstone Commercial (GOOD) reachead $14.90 at the closing of the latest trading day, reflecting a +1.15% change compared to its last close.
Gladstone Commercial (GOOD) closed at $15.06 in the latest trading session, marking a +0.07% move from the prior day.
Gladstone Commercial offers a 7.6% dividend yield and is undervalued with a P/FFO of 11.1, below its historical and peer averages. GOOD's portfolio transition from office to industrial properties is progressing well, with strong occupancy at 98.7% and solid rent collection. GOOD maintains a sound balance sheet with a net debt to gross assets ratio of 44% and 99% of its debt being fixed or hedged.
As part of its efforts to expand in strong industrial locations, GOOD acquires an industrial manufacturing facility in Houston, TX.