Gladstone Commercial Provides Summary of Key 2024 Business Developments
Gladstone Commercial (Nasdaq:GOOD) reported key business developments for 2024, highlighting significant progress in portfolio optimization and financial strengthening. The company secured a $75.0 million private placement of 6.47% senior unsecured notes due December 2029, expanding its financing options. Acquisition activity included $26.8 million in new industrial properties across seven locations, totaling 316,727 square feet with average lease terms exceeding 20 years.
The company increased its industrial portfolio concentration to 63% of annualized straight-line rent, up from 60% in 2023. Leasing activity saw renewals and extensions of 2.94 million square feet across 11 properties, generating a $3.8 million increase in GAAP rent. Property dispositions included seven non-core assets (five office and two medical office properties). Occupancy improved to 98.7% from 96.8% year-over-year, with $93.0 million in available liquidity at year-end.
Gladstone Commercial (Nasdaq:GOOD) ha riportato sviluppi aziendali chiave per il 2024, evidenziando progressi significativi nell'ottimizzazione del portafoglio e nel rafforzamento finanziario. L'azienda ha garantito un collocamento privato di $75,0 milioni di notes senior non garantiti al 6,47% in scadenza a dicembre 2029, ampliando le sue opzioni di finanziamento. L'attività di acquisizione ha incluso $26,8 milioni in nuove proprietà industriali distribuite su sette sedi, per un totale di 316.727 piedi quadrati con termini di locazione medi superiori ai 20 anni.
L'azienda ha aumentato la concentrazione del suo portafoglio industriale al 63% dell'affitto annualizzato in linea retta, rispetto al 60% del 2023. L'attività di locazione ha visto il rinnovo e l'estensione di 2,94 milioni di piedi quadrati su 11 proprietà, generando un Aumento di $3,8 milioni nell'affitto GAAP. Le cessioni immobiliari comprendevano sette beni non core (cinque uffici e due proprietà per uffici medici). L'occupazione è migliorata al 98,7% rispetto al 96,8% dell'anno precedente, con $93,0 milioni di liquidità disponibile a fine anno.
Gladstone Commercial (Nasdaq:GOOD) reportó desarrollos empresariales clave para 2024, destacando avances significativos en la optimización de su cartera y el fortalecimiento financiero. La compañía aseguró un colocación privada de $75,0 millones de notas senior no garantizadas al 6,47% con vencimiento en diciembre de 2029, ampliando sus opciones de financiamiento. La actividad de adquisiciones incluyó $26,8 millones en nuevas propiedades industriales en siete ubicaciones, totalizando 316,727 pies cuadrados con términos de arrendamiento promedio que superan los 20 años.
La empresa incrementó su concentración de cartera industrial al 63% del alquiler anualizado en línea recta, frente al 60% en 2023. La actividad de arrendamiento vio renovaciones y extensiones de 2,94 millones de pies cuadrados en 11 propiedades, generando un incremento de $3,8 millones en alquiler GAAP. Las disposiciones de propiedades incluyeron siete activos no centrales (cinco oficinas y dos propiedades médicas). La ocupación mejoró al 98,7% desde el 96,8% en comparación con el año anterior, con $93,0 millones en liquidez disponible al final del año.
Gladstone Commercial (Nasdaq:GOOD)는 2024년 주요 사업 개발 사항을 보고하며 포트폴리오 최적화 및 재무 강화에서 상당한 진전을 강조했습니다. 회사는 7500만 달러의 사모 발행을 통해 6.47%의 비보증 선순위 채권을 확보했으며, 이것의 만기는 2029년 12월입니다. 이는 자금 조달 옵션을 확장하는 데 기여했습니다. 인수 활동에는 총 316,727 제곱피트에 달하는 7개 위치의 신규 산업 부동산에 대한 2680만 달러가 포함되었습니다. 평균 임대 기간은 20년을 초과합니다.
회사는 산업 포트폴리오 집중도를 63%로 증가시켰으며, 이는 2023년의 60%에서 증가한 수치입니다. 임대 활동에서는 11개 부동산에 걸쳐 294만 제곱피트의 갱신 및 연장이 이루어져 380만 달러의 GAAP 임대 증가를 가져왔습니다. 부동산 처분에는 비핵심 자산 7개(사무실 5개와 의료 사무실 2개)가 포함되었습니다. 점유율은 지난해 96.8%에서 98.7%로 개선되었으며, 연말에는 9300만 달러의 가용 유동성이 있었습니다.
Gladstone Commercial (Nasdaq:GOOD) a rapporté des développements clés pour 2024, mettant en avant des progrès significatifs dans l'optimisation du portefeuille et le renforcement financier. La société a sécurisé une émission privée de 75,0 millions de dollars d'obligations senior non garanties à 6,47% échues en décembre 2029, élargissant ainsi ses options de financement. L'activité d'acquisition a inclus 26,8 millions de dollars de nouvelles propriétés industrielles sur sept sites, totalisant 316 727 pieds carrés avec des baux moyens dépassant 20 ans.
La société a augmenté sa concentration de portefeuille industriel à 63% des loyers annualisés linéaires, contre 60% en 2023. L'activité de location a vu des renouvellements et des extensions de 2,94 millions de pieds carrés à travers 11 propriétés, générant une augmentation de 3,8 millions de dollars des loyers GAAP. Les cessions de biens comprenaient sept actifs non essentiels (cinq bureaux et deux bureaux médicaux). Le taux d'occupation s'est amélioré à 98,7% contre 96,8% d'une année sur l'autre, avec 93,0 millions de dollars de liquidités disponibles à la fin de l'année.
Gladstone Commercial (Nasdaq:GOOD) berichtete über wichtige Geschäftsentwicklungen für 2024 und hob signifikante Fortschritte bei der Portfolio-Optimierung und finanziellen Stärkung hervor. Das Unternehmen sicherte sich eine Privatplatzierung über 75 Millionen US-Dollar von 6,47% nicht besicherten vorrangigen Anleihen, die im Dezember 2029 fällig werden, was seine Finanzierungsoptionen erweitert. Zu den Akquisitionen gehörten 26,8 Millionen Dollar für neue Industrieimmobilien an sieben Standorten, die insgesamt 316.727 Quadratfuß umfassen, mit durchschnittlichen Mietverträgen von über 20 Jahren.
Das Unternehmen erhöhte die Konzentration seines Industrieportfolios auf 63% der annualisierten geraden Miete, verglichen mit 60% im Jahr 2023. Die Vermietungsaktivitäten umfassten Erneuerungen und Verlängerungen von 2,94 Millionen Quadratfuß über 11 Immobilien und führten zu einem Anstieg von 3,8 Millionen Dollar bei der GAAP-Miete. Zu den Veräußerungen von Immobilien gehörten sieben nicht zum Kerngeschäft gehörende Objekte (fünf Büro- und zwei medizinische Büroimmobilien). Die Belegung verbesserte sich auf 98,7% von 96,8% im Jahresvergleich, mit 93,0 Millionen Dollar an liquiden Mitteln zum Jahresende.
- Secured $75.0 million in senior unsecured notes, expanding financing options
- Completed $26.8 million in industrial acquisitions with 20+ year lease terms
- Increased industrial concentration from 60% to 63% of rent
- Achieved $3.8 million increase in GAAP rent through lease renewals
- Improved occupancy rate from 96.8% to 98.7%
- Maintained strong liquidity position of $93.0 million
- None.
Insights
Gladstone Commercial's 2024 strategic developments reveal a well-executed transformation toward industrial real estate, backed by robust financial positioning. The $75 million private placement of senior unsecured notes at
The company's portfolio repositioning strategy shows excellent execution:
- Industrial concentration increased to
63% of rent (up from60% ) - Strategic acquisition of 7 industrial properties with impressive 20+ year weighted average lease terms
- Successful disposition of non-core office assets, reducing exposure to the challenged office sector
The $3.8 million increase in GAAP rent from lease renewals indicates strong pricing power and ability to capture market rate increases. The improved occupancy rate of
Liquidity position of $93 million provides ample flexibility for opportunistic acquisitions and operational needs. The company's strategic shift toward industrial properties positions it well for stable cash flows, as industrial remains one of the strongest commercial real estate sectors due to e-commerce growth and supply chain reorganization.
The strategic market selection for industrial acquisitions in southern Pennsylvania, Midland, Texas and St. Louis demonstrates astute targeting of high-growth logistics corridors and energy-driven markets. These locations offer strong fundamentals:
- Southern Pennsylvania benefits from Northeast distribution networks
- Midland capitalizes on energy sector stability
- St. Louis serves as a important Midwest logistics hub
The secured 20+ year lease terms on new acquisitions significantly exceed market averages of 5-7 years, providing exceptional cash flow visibility. The successful disposition of office assets, particularly medical office properties, indicates a disciplined approach to portfolio optimization amid office sector headwinds.
The improvement in occupancy to
MCLEAN, VA / ACCESS Newswire / January 22, 2025 / Gladstone Commercial Corporation (Nasdaq:GOOD) ("Gladstone Commercial") is pleased to report another successful year of investing, leasing, and disposition activity in the net lease space. We continue to create shareholder value by increasing our industrial exposure and disposing of non-core office assets.
Issuance of Senior Unsecured Notes:
In December 2024, we closed on a
$75.0 million private placement of6.47% senior unsecured notes due December 18, 2029. The ability to execute follow-on issuances will add a new and efficient financing source to facilitate growing our industrial portfolio.
Acquisition Activity:
We completed
$26.8 million in new acquisitions across seven industrial properties totaling 316,727 square feet. At closing, these properties had a weighted average lease term of more than 20 years. The transactions were completed in established, growing industrial markets, including southern Pennsylvania, Midland, Texas, and St. Louis, Missouri.We increased portfolio industrial concentration as a percentage of annualized straight line rent to
63% as of December 31, 2024, as compared to60% as of December 31, 2023.
Leasing and Disposition Activity:
During 2024 we renewed or extended 2,940,209 square feet of leases at 11 of our properties. These leases resulted in a
$3.8 million net increase in GAAP rent.We sold seven properties consisting of five office and two medical office properties.
We increased occupancy to
98.7% as of December 31, 2024, from96.8% as of December 31, 2023.
Additional Highlights:
As of December 31, 2024, we had
$93.0 million in available liquidity via our revolving credit facility and cash on hand.
About Gladstone Commercial (Nasdaq:GOOD)
Gladstone Commercial is a real estate investment trust focused on acquiring, owning and operating net leased industrial and office properties across the United States. As of September 30, 2024, Gladstone Commercial's real estate portfolio consisted of 135 properties located in 27 states, totaling approximately 16.8 million square feet. For additional information, please visit www.gladstonecommercial.com.
For Broker Submittals:
Midwest/West |
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Ryan Carter |
| Todd Alan McDonald |
Executive Vice President |
| Senior Vice President |
(571) 451-0019 |
| (703) 287-5895 |
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Southeast/Northeast |
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Nick Lindsay |
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Vice President |
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(703) 966-3864 |
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Asset Management:
Midwest/West |
| South Central |
Judy Carter |
| Perry Finney |
Senior Vice President |
| Senior Vice President |
(703) 4462-1024 |
| (703) 462-1028 |
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Southeast/Northeast |
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Greg Yayac |
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Senior Vice President |
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(703) 287-5912 |
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Investor or Media Inquiries:
Buzz Cooper |
| Catherine Gerkis |
President |
| Director of Investor Relations/ESG |
(703) 287-5815 |
| (703) 287-5846 |
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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 (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements involve inherent risks and uncertainties as they relate to expectations, beliefs, projections, future plans and strategies, anticipated events, or trends concerning matters that are not historical facts and may ultimately prove to be incorrect or false. Forward-looking statements include information about possible or assumed future events, including, without limitation, those relating to the discussion and analysis of Gladstone Commercial's business, financial condition, results of operations, and our strategic plans and objectives. Words such as "may," "might," "believe," "will," "anticipate," "future," "could," "growth," "plan," "intend," "expect," "should," "would," "if," "seek," "possible," "potential," "likely" and variations of these words and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements contain these words. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those included within or contemplated by such statements, including, but not limited to, the description of risks and uncertainties in "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" of the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as filed with the SEC on February 21, 2024, and certain other filings made 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, except as required by law.
For further information: Gladstone Commercial Corporation, (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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