SRC - Gladstone Commercial Fundamentally Outperforming Peers
The Buy Thesis
Gladstone Commercial (GOOD) is among the most reliable and steady REITs. Its predictable cashflows stem from long contracts with sturdy tenants. Gladstone’s specialty is credit underwriting and through their proprietary process of vetting tenants GOOD’s cashflows seem to always outperform expectations. Despite its resilience, GOOD is trading at a massive discount to peers and a double digit dividend yield. Fundamentally, GOOD is handling this crisis significantly better than its peers. We see substantial upside to fair value.
Cashflow outperformance
GOOD just released an update on its impact from COVID. Importantly,