Gladstone Commercial reports 100% rent collection, portfolio growth

Published 18/07/2025, 13:36
Gladstone Commercial reports 100% rent collection, portfolio growth

MCLEAN, VA - Gladstone Commercial Corporation (NASDAQ:GOOD), a REIT known for its impressive 8.73% dividend yield and 23-year history of consistent dividend payments according to InvestingPro, has collected 100% of cash base rents from tenants and invested $152.2 million in four industrial property acquisitions during the first half of 2025, according to a semiannual business update released Friday.

The real estate investment trust acquired 874,871 square feet of industrial space with a weighted average lease term of approximately 14.3 years and annualized GAAP rents of $13.2 million.

The company reported increasing its industrial concentration to 67% of annualized straight-line rent as of June 30, up from 62% a year earlier. Same-store lease revenue rose 6.4% compared to the same period in 2024.

Gladstone Commercial also renewed leases on 67,709 square feet of industrial space and 55,308 square feet of office space, while divesting 60,000 square feet of non-core office property and 676,031 square feet of non-core industrial property.

As of June 30, the REIT’s portfolio consisted of 17.0 million square feet across 143 properties in 27 states, with occupancy at 98.7%, slightly higher than the 98.5% reported at the same time last year.

"The team has continued to work hard in 2025 as we press forward with our growth initiatives, focusing on increasing our industrial concentration and improving the overall quality of our portfolio," said Buzz Cooper, President of Gladstone Commercial, in the press release statement.

The company indicated it is continuing its strategy of growing industrial concentration through acquisitions while selling non-core assets. According to InvestingPro analysis, the company maintains strong financial health with a current ratio of 2.53, indicating robust liquidity. For detailed insights and additional ProTips about Gladstone Commercial’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Gladstone Commercial Corporation reported its first-quarter 2025 earnings, which surpassed analyst expectations. The company achieved an earnings per share (EPS) of $0.04, exceeding the forecast of $0.03, and reported revenue of $37.5 million, slightly above the anticipated $37.29 million. This performance reflects Gladstone’s strategic focus on industrial properties, which now make up 65% of their annualized straight-line rent. The company also increased its net assets to $1.16 billion from $1.09 billion in the previous year. Looking forward, Gladstone Commercial aims to close $70 million in acquisitions in the second quarter of 2025, with an acquisition pipeline of approximately $140 million. The company is also working to increase its industrial concentration to 70%, with minimal lease expirations expected in 2025. Analysts noted the company’s disciplined approach to acquisitions, which has been a key factor in its stable financial performance.

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