2023-06-07 10:08:58 ET
Gladstone Commercial ( NASDAQ: GOOD ) will continue to increase its industrial base as office assets have continued to put pressure on its portfolio, management said at the Nareit REITweek conference Wednesday.
The REIT has not purchased an office building since around 2018, they said, though its overall portfolio is "very well positioned" given recession-proof characteristics of its tenants.
Around 60% of Gladstone's ( GOOD ) revenues currently come from industrial, mostly comprised of middle-market single tenants, and it seeks to boost that base to 75% over the long-term, they said. In April, the company acquired a 76K square foot industrial manufacturing facility in Riverdale, Illinois at a weighted GAAP cap rate of 9.7%.
At the same time, it will look to sell a number of office assets this year and redeploy the proceeds into its target growth markets (i.e., industrial investment).
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Gladstone Commercial will keep boosting industrial base, execs say