Shares of Gladstone Commercial Corporation (NASDAQ:GOOD) surged around 7% on Monday, November 5th after the real estate investment trust reported better-than-expected third quarter earnings and provided an upbeat outlook for its growing industrial portfolio.
For the quarter ended September 30th, 2024, GOOD posted core funds from operations (FFO) of $0.38 per share, surpassing analysts' consensus estimate of $0.35. This marked an increase from $0.36 in the prior quarter and $0.34 in Q3 2023. Total operating revenue climbed 7.6% year-over-year to $39.2 million, also exceeding expectations of $36.9 million.
The strong results were driven in part by GOOD's strategy of shifting its property mix towards more industrial assets, which now account for 63% of annualized straight-line rent versus just 33% for office buildings. During the earnings call, President Buzz Cooper expressed optimism that "same-store rents, which have increased by 2% annually in recent years, should continue to rise as we grow, and we will continue to primarily focus on investing in our target markets, with an emphasis on industrial properties."
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.