Gladstone Commercial Corporation Executes $10 million Lease Renewal at Industrial Property in Monroe, Michigan

Rhea-AI Summary

Gladstone Commercial Corporation (NASDAQ:GOOD) announced a lease renewal with Yanfeng US Automotive Interior Systems LLC for its Monroe, Michigan property, extending their tenure through August 31, 2029. The renewal includes a six-year lease for the entire 315,000 square foot property, generating over $10 million in rental revenue. This extension is part of Gladstone's strategy to retain financially robust tenants, enhancing the weighted average term of their Midwest portfolio. The company's Detroit portfolio remains fully leased, indicating sound property management amid economic challenges.

Positive

• Lease renewal with Yanfeng, ensuring over $10 million in rental revenue.
• Extension increases weighted average lease term of Midwest portfolio.
• Detroit portfolio remains 100% leased, demonstrating strong tenant retention.

Negative

• None.

MCLEAN, VA / ACCESSWIRE / June 24, 2021 / Gladstone Commercial Corporation (NASDAQ:GOOD) ("Gladstone Commercial") announced today that it signed a lease renewal with Yanfeng US Automotive Interior Systems LLC ("Yanfeng") through August 31, 2029 at its 1833 Frenchtown Center Drive industrial property in Monroe, Michigan, a suburb of Detroit. This lease renewal continues Yanfeng's existing tenancy that began in 2008.

Yanfeng is a global leader in automotive interiors with business segments including Cockpit Systems, Instrument Panels, Door Panels and Floor Consoles.

Yanfeng executed a six-year lease extension for the entire 315,000 square foot property, providing contractual rental revenue of more than $10 million during the extension term. Yanfeng also has the right to request that the building be expanded to accommodate their growing demand.

"We are happy to not only renew this important tenant, but also do so well ahead of the renewal deadline" said Todd McDonald, Senior Analyst for Gladstone Commercial. "Our Detroit portfolio remains 100% leased with untarnished collections through the pandemic, a true testament to the strength of Gladstone's underwriting, property management and focus on servicing our tenants."

"Executing this lease delivers on Gladstone Commercial's core attributes of engaging and retaining financially strong tenants. This transaction increases the weighted average term of our Midwest portfolio and is immediately accretive to FFO," Karen Priesman, Senior Vice President and Head of Asset Management for the Midwest Region for Gladstone Commercial.

About Gladstone Commercial (NASDAQ:GOOD)

Gladstone Commercial Corporation is a real estate investment trust ("REIT") focused on acquiring, owning, and operating net leased industrial and office properties across the United States. As of March 31, 2021, Gladstone Commercial's real estate portfolio consisted of 120 properties, located in 27 states, totaling approximately 15.5 million square feet. Additional information can be found at www.gladstonecommercial.com.

For Broker Submittals:

Southcentral:	Northeast/Midwest:
Buzz Cooper	Todd McDonald
Executive Vice President	Senior Analyst
(703) 287-5815	(703) 287-5895
Buzz.Cooper@gladstonecompanies.com	Todd.McDonald@gladstonecompanies.com
Southeast:	West:
EJ Wislar	Mac Dobbins
Senior Vice President	Senior Associate
(703) 462-1027	(703) 287-5845
EJ.Wislar@gladstonecompanies.com	Mac.Dobbins@gladstonecompanies.com

Investor or Media Inquiries:

Bob Cutlip
President - Gladstone Commercial Corporation
(703) 287-5878
Bob.Cutlip@gladstonecompanies.com

All statements contained in this press release, other than historical facts, may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. Readers should not rely upon forward-looking statements because the matters they describe are subject to known and unknown risks and uncertainties that could cause the Gladstone Commercial's business, financial condition, liquidity, results of operations, funds from operations or prospects to differ materially from those expressed in or implied by such statements. Such risks and uncertainties are disclosed under the caption "Risk Factors" of the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as filed with the SEC on February 16, 2021 and certain other filings we make with the SEC. Gladstone Commercial cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For further information: Gladstone Commercial Corporation, +1-703-287-5893

For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstonecompanies.com.

SOURCE: Gladstone Commercial Corporation

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FAQ

What is the significance of Gladstone Commercial's lease renewal with Yanfeng?

The lease renewal provides over $10 million in rental revenue and extends the lease through August 31, 2029.

How does the lease renewal affect Gladstone Commercial's portfolio?

It increases the weighted average lease term of the Midwest portfolio, contributing positively to financial metrics.

What is the size of the property involved in the lease renewal?

The property spans 315,000 square feet.

When did Yanfeng start its tenancy at the Monroe property?

Yanfeng has been a tenant since 2008.

What market confidence does the lease renewal indicate for Gladstone Commercial?

The full occupancy of the Detroit portfolio and strong tenant retention demonstrate effective property management and market resilience.