Gladstone mercial (US:GOOD)2022-02-16 15:54Financial Data and Key Metrics Changes - FFO and core FFO available to common stockholders were both $0.40 per share for Q4 2021, compared to $0.37 and $0.38 per share in Q4 2020 respectively [28] - Total operating revenues for Q4 2021 were $35.3 million, up from $32.9 million in the same period last year, while operating expenses increased to $25.4 million from $24.7 million [29] - Same-store cash rent grew by 3.2% overall in 2021 compared to 2020 [28] Business Line Data and Key Metrics Changes - The company acquired three industrial assets in Q4 2021 for a total investment of $53.8 million, focusing on industrial properties [37] - The industrial allocation in the portfolio increased from 33% to 51% since 2019, with a target of reaching 60% in the next 12 to 18 months [10] Market Data and Key Metrics Changes - Industrial vacancy rates remained low at 4% to 4.5%, with net absorption exceeding 100 million square feet per quarter in 2021 [22] - Office vacancy rates dropped to 16.6% in Q4 2021, marking the first decrease since mid-2019 [23] Company Strategy and Development Direction - The company aims to increase its industrial allocation and improve property operations while divesting non-core assets [8] - The acquisition pipeline currently stands at approximately $350 million, with a focus on industrial properties [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong performance and ability to navigate challenges posed by COVID-19 and supply chain disruptions [40] - The outlook for 2022 acquisitions is optimistic, with expectations to exceed $120 million based on current market conditions [44] Other Important Information - The company has maintained its common stock dividend at $0.3762 per share per quarter, with a distribution yield of 6.97% [35] - Institutional ownership of the stock has increased to 50.5% as of December 31 [34] Q&A Session Summary Question: What is the current acquisition pipeline? - The acquisition pipeline includes $32 million in due diligence and $100 million to $110 million in the letter of intent stage, with expectations for a significant portion to convert to contracts soon [43][44] Question: How are you thinking about dispositions this year? - The company aims to limit dispositions to $15 million to $20 million per year, but this could increase if significant capital gains opportunities arise [48] Question: What is the outlook for the Austin office asset? - The Austin asset has been refilled to over half of the building, generating approximately 90% of the previous cash flow, with ongoing interest from potential tenants [50][52] Question: What is the overall cap rate outlook for potential acquisitions? - The average cap rate for industrial properties is expected to be between 5.25% to 6%, consistent with 2021 levels [63] Question: What is the outlook for refinancing maturing debt? - Current interest rates are manageable, and refinancing is expected to be accretive given today's rates [75][77]