Gladstone Commercial GOOD announced the acquisition of a mission-critical industrial property in Newport News, VA. The 153,890-square-foot property cost $22.75 million and is fully leased under a long-term net lease by a Huntington Ingalls Industries subsidiary, which is described as America’s largest shipbuilder.
The transaction was funded through internally generated cash flow without additional equity issuances. Following the transaction, Gladstone has ample availability via cash on hand and its line of credit to continue pursuing high-quality industrial assets.
Per Buzz Cooper, CEO and president, "We continue to focus on well-located industrial assets supported by a disciplined underwriting process. This transaction reflects our commitment to strategically expanding our portfolio and allows us to grow through internally generated capital without external equity issuances. The transaction not only increases the quality of our portfolio but also increases industrial cash and straight-line rents as well."
The company actively communicates with private equity funds, real estate brokers and other third parties to locate properties for potential acquisition or to provide mortgage financing in an effort to build its portfolio. It targets secondary growth markets that possess favorable economic growth trends, diversified industries and a growing population and employment.
In the past six months, shares of this Zacks Rank #3 (Hold) company have gained 20.4% compared with the industry's growth of 9.6%.
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Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Gladstone Land LAND and American Tower AMT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for LAND’s 2026 FFO per share is pinned at 45 cents. This indicates year-over-year growth of 15.4% for 2026.
The Zacks Consensus Estimate for AMT’s 2026 FFO per share is pegged at $10.95. This implies year-over-year growth of 1.8% for 2026.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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This article originally published on Zacks Investment Research (zacks.com).