Gladstone Commercial Provides a Business Update - Land.Net News
Gladstone Commercial Corporation (Nasdaq:GOOD) ("we" or "Gladstone Commercial") is a real estate investment trust ("REIT") focused on acquiring, owning and operating net leased industrial and office properties across the United States. We are providing the following business update regarding our portfolio performance during a time of market volatility related to, among other factors, the global COVID-19 pandemic.
100% of August cash base rents have been paid and collected. Portfolio occupancy is in excess of 96%, as of August 31, 2021.
We remain within a small subset of U.S. equity REITs that have maintained their dividend rate and payment of distributions in tandem with this high level of rental collections during the COVID-19 pandemic.
We continue to execute our growth strategy. Year-to-date, we have acquired $45.855 million of industrial properties, totaling 367,564 square feet, across eight properties, at an average GAAP capitalization rate of 7.7%, with a weighted average lease term of 15.5 years.
On August 23, 2021, we announced the acquisition of an 81,760 square foot industrial facility on 4.1 acres in Peru, Illinois for $4.7 million. The initial capitalization rate for the acquisition was 6.9% with an average capitalization rate of 7.6%. The property, acquired in a sale/leaseback transaction, is 100% leased to Pretium Packaging, LLC, with fifteen (15) years of remaining absolute NNN lease term. Pretium uses the property for manufacturing and distribution of its rigid plastic packaging products.
Since January 1, 2021, and through August 31, 2021, we have issued 1.1 million shares of common stock for net proceeds of $22.6 million.
We continue to have ample liquidity and a strong capital structure. As of August 31, 2021, our current available liquidity is approximately $30.9 million via our revolving credit facility and cash on hand.
We have experienced successful rent collection during the COVID-19 pandemic; however, we may receive additional rent relief requests as the pandemic continues to adversely affect business operations. However, we are unable to quantify the outcomes of potential future negotiation of relief packages, the success of any tenant's financial prospects or the amount of relief requests that we will ultimately receive or grant.