Gladstone Commercial Prices Series G Preferred Stock offering of $100M

Real estate investment trust Gladstone Commercial (GOOD) has priced an underwritten offering of four million Series G preferred shares at $25 per share. This will help the company raise $96.7 million in net proceeds. The preferred shares with a coupon rate of 6% are estimated to be delivered on June 28.

Gladstone plans to use the funds raised to optionally redeem its outstanding 7% Series D preferred stock. Any remaining funds will be utilized towards repaying Gladstone’s credit facility and for other corporate purposes. (See Gladstone Commercial stock chart on TipRanks)

At the end of March, the company’s real estate portfolio included 120 properties across 27 states, with a total area of about 15.5 million square feet.

On June 15, B. Riley Financial analyst Craig Kucera reiterated a Buy rating on the stock and increased the price target to $25 (10.1% upside potential) from $23.

After NAREIt’s REITweek, Kucera believes as the world recovers from the COVID-19 pandemic, REITs are generally optimistic about current business and macro trends.

Based on 4 unanimous Buys, consensus on the Street is a Strong Buy. The average Gladstone Commercial analyst price target of $24 implies 5.7% upside potential. Shares are up 23% over the past year.

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