Gladstone Commercial ( NASDAQ: GOOD ) third-quarter FFO and revenue both came in stronger than expected Monday and increased from the previous quarter in the wake of solid rent growth, occupancy and renewed leases.
Q3 FFO of $0.43, topping the average analyst estimate of $0.39, rose from $0.39 for the three months ended June 30.
Revenue of $39.83M, exceeding the $36.87M consensus, drifted up from $36.40M in Q2.
"Our same store rents, which have increased by 2% annually in recent years, should be continuing to rise as we grow and we'll continue to primarily focus on investing in our target markets, with an emphasis on industrial properties and actively managing our portfolio," said President Buzz Cooper.
Total expenses were $37.45M compared with $27.83M in the second quarter.
The REIT collected 100% of cash rents due during Q3.
It acquired four fully-occupied industrial properties for a combined $46.1M, with approximately 362,703 square feet of total rented space, at a weighted average cap rate of 7.26%. On the flip side, it sold non-core office properties as part of its capital recycling strategy for $28.0M.
The company renewed 167,566 square feet with remaining lease terms ranging from 5.3 to 6.2 years at two of its properties.
GOOD stock edged up 0.8% in extended trading.
Conference call on November 8 at 8:30 a.m. ET.
Earlier, Gladstone Commercial FFO of $0.43 beats by $0.04, revenue of $39.83M beats by $2.96M .
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Gladstone Commercial Q3 results beat, highlight solid rent growth, renewed leases