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Gladstone Commercial Boosts Portfolio With Dallas/Fort Worth Asset

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Gladstone Commercial Corporation (GOOD - Free Report) recently announced the acquisition of a newly constructed, 140,304-square-foot, Class A USDA food processing facility in Dallas/Fort Worth International Airport. This strategic acquisition, which was made for $44 million, aligns with Gladstone Commercial's continued focus on securing high-quality, mission-critical assets leased to tenants with solid credit profiles in thriving industrial markets.

The facility, featuring advanced cold storage capabilities, was acquired through a third-party transaction. The acquisition was completed at a weighted average GAAP capitalization rate of 8.44%, demonstrating an attractive yield for Gladstone Commercial. The facility is fully leased to Three Sons Holding Inc., DBA American Meat Companies ("AMC"), a third-generation, family-owned business. Founded nearly 50 years ago, AMC has earned its reputation for quality and safety in the meat processing industry. With the property being under an 11.3-year absolute NNN lease, the acquisition secures long-term cash flows from this asset.

This latest acquisition builds on Gladstone Commercial’s successful track record in 2024, during which the company purchased seven fully occupied properties totaling 316,727 square feet for $26.8 million at a weighted average cap rate of 10.99%. 

The company focuses on selling non-core assets and using the proceeds to de-lever its portfolio and acquire properties in its target growth markets with a focus on industrial investment opportunities. GOOD also sold seven non-core properties as part of its capital recycling strategy for $39.0 million in 2024. As of Dec. 31, 2024, the company’s portfolio included 135 properties across 27 states, encompassing approximately 16.9 million square feet.

Shares of this Zacks Rank #3 (Hold) company have rallied 11.3% in the past year, outperforming its industry’s growth of 6.2%.

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Welltower Inc. (WELL - Free Report) and Cousins Properties Incorporated (CUZ - Free Report) . Welltower and Cousins Properties each carry 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 Welltower’s 2025 FFO per share is pegged at $4.93, which indicates year-over-year growth of 14.1%.

The Zacks Consensus Estimate for Cousins’ 2025 FFO per share is pegged at $2.79, which implies a year-over-year increase of 3.7%.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.


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