Gladstone Commercial Corporation
- Open
- 12.36
- Day high
- 12.39
- Day low
- 12.22
- Prev close
- 12.41
- Volume
- 294K
- Mkt cap
- $585M
- P/E (TTM)
- 27.4
- EPS (TTM)
- $0.45
- P/B
- 3.6
- P/S
- 3.5
- Yield
- 9.68%
- Per share
- $1.20
- ▲Insiders net buying $4K over the last 3 months (3 open-market buys, 0 sales)
- 🏛Institutions accumulating (13F)
Gladstone Commercial Corporation (GOOD) is a Real Estate company listed on NASDAQ. The stock is down 15% over the past year. Over the trailing 3 months, insiders filed 3 open-market buys and 0 sales (SEC Form 4).
Gladstone Commercial Corporation (GOOD) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
GOOD earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $0.07 | $0.35 | +400.0% | $42M | -2.4% |
| Feb 18, 2026 | $0.36 | $0.37 | +2.8% | $43M | +4.2% |
| Aug 6, 2025 | $0.35 | $0.35 | +0.0% | $40M | +2.0% |
| Feb 18, 2025 | $0.11 | $0.35 | +218.2% | $37M | -0.7% |
| Feb 21, 2024 | $0.34 | $0.36 | +5.9% | $36M | -2.6% |
| May 3, 2023 | $0.41 | $0.37 | -9.8% | $37M | -2.5% |
| Feb 22, 2023 | $0.39 | $0.34 | -12.8% | $37M | -4.5% |
| Aug 1, 2022 | $0.38 | $0.39 | +2.6% | $36M | +0.8% |
| May 4, 2022 | $0.40 | $0.40 | +0.0% | $36M | -1.7% |
| Feb 15, 2022 | $0.39 | $0.40 | +2.6% | $35M | -0.6% |
| Feb 16, 2021 | $0.39 | $0.38 | -2.6% | $33M | -1.2% |
| Nov 5, 2020 | $0.39 | $0.40 | +2.6% | $33M | — |
GOOD insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 1, 2026 | Carter Ryan Stuartofficer: Executive Vice President | Buy | 100 | $12.51 |
| May 4, 2026 | Carter Ryan Stuartofficer: Executive Vice President | Buy | 100 | $12.66 |
| Apr 7, 2026 | Carter Ryan Stuartofficer: Executive Vice President | Buy | 100 | $11.48 |
| Feb 26, 2026 | Gerson Garyofficer: Chief Financial Officer | Buy | 275 | $12.46 |
| Nov 14, 2025 | Gerson Garyofficer: Chief Financial Officer | Buy | 100 | $11.31 |
| Nov 12, 2025 | Gerson Garyofficer: Chief Financial Officer | Buy | 100 | $11.05 |
| Nov 12, 2025 | Gerson Garyofficer: Chief Financial Officer | Buy | 7,600 | $11.05 |
| Nov 12, 2025 | Gerson Garyofficer: Chief Financial Officer | Buy | 200 | $11.05 |
| Nov 10, 2025 | Cooper Arthur S.officer: President | Buy | 7,002 | $10.70 |
| Nov 7, 2025 | Gerson Garyofficer: Chief Financial Officer | Buy | 500 | $10.65 |
| May 13, 2025 | Gerson Garyofficer: Chief Financial Officer | Buy | 200 | $14.32 |
| Feb 25, 2025 | Gerson Garyofficer: Chief Financial Officer | Buy | 175 | $15.59 |
| Nov 12, 2024 | Gerson Garyofficer: Chief Financial Officer | Buy | 175 | $17.19 |
| Aug 9, 2024 | Gerson Garyofficer: Chief Financial Officer | Buy | 650 | $14.61 |
| Sep 18, 2023 | Gerson Garyofficer: Chief Financial Officer | Buy | 400 | $13.36 |
Source: GOOD SEC Form 4 filings, latest Jun 1, 2026. For informational purposes only — not investment advice.
See the full GOOD insider & 13F page →Gladstone Commercial Corporation company profile
Overview
Gladstone Commercial Corporation (NASDAQ:GOOD) is a real estate investment trust (REIT) founded in 2003 that specializes in acquiring, owning, and operating net leased commercial properties across the United States. The company has established a notable track record of consistent dividend payments, having paid 189 consecutive monthly cash distributions on its common stock through September 2020, along with regular distributions on its preferred stock series. Since its inception, Gladstone Commercial has never skipped, reduced, or deferred a distribution, making it an attractive option for income-focused investors seeking steady cash flow from commercial real estate investments.
Business
Gladstone Commercial operates as a net lease REIT, which means it owns commercial properties where tenants are responsible for most or all property expenses including taxes, insurance, and maintenance costs. This business model provides predictable income streams with minimal landlord responsibilities. The company's portfolio consists primarily of two property types: **Industrial Properties (65% of portfolio):** These include warehouses, distribution centers, manufacturing facilities, and light industrial buildings. Industrial real estate has become increasingly valuable due to e-commerce growth, supply chain reshoring trends, and the need for modern logistics facilities. These properties typically serve mission-critical functions for tenants' operations. **Office Properties (33% of portfolio):** Traditional office buildings leased to various businesses. The office sector has faced challenges due to remote work trends and changing workplace preferences, which is why Gladstone Commercial has been strategically reducing its office exposure. **Other Properties (2% remaining):** Small allocation to medical office and other specialized commercial properties. The company focuses on properties ranging from 50,000 to 300,000 square feet, primarily targeting middle-market tenants in business-friendly markets across the Southeast, South Central, and select Midwest regions. Gladstone Commercial maintains a portfolio occupancy rate of approximately 98.5%, indicating strong tenant retention and property desirability.
Revenue model
Gladstone Commercial generates revenue primarily through rental income from long-term net lease agreements with commercial tenants. Under net lease structures, tenants pay base rent plus most property operating expenses, providing the REIT with predictable cash flows and minimal operational responsibilities. The company's revenue streams include: **Base Rent Payments** from tenants under long-term lease agreements, typically ranging from 10-20 years with built-in rent escalations. **Percentage Rent** from certain retail tenants based on sales performance, though this represents a small portion of total income. **Lease Termination Fees** and other miscellaneous income from tenant activities. **Factors that increase margins:** Rising industrial real estate demand driven by e-commerce growth and supply chain reshoring creates opportunities for rent increases and higher occupancy rates. Interest rate declines reduce borrowing costs, improving net income margins. Successful portfolio optimization toward higher-yielding industrial properties enhances overall returns. Strong tenant credit quality reduces bad debt expenses and vacancy costs. **Factors that decrease margins:** Rising interest rates increase borrowing costs since the company uses significant leverage to finance acquisitions. Economic downturns can lead to tenant defaults, increased vacancy rates, and difficulty finding replacement tenants. Office sector weakness pressures rents and occupancy in that segment. Competition for quality industrial properties can compress acquisition cap rates, reducing future returns. Property maintenance costs and capital expenditures can increase during inflationary periods, though these are largely passed through to tenants in net lease structures. The company's customers are middle-market businesses across various industries that require commercial space for their operations. These tenants typically sign long-term leases, providing stable, predictable income for the REIT.
Competitive moat
Gladstone Commercial possesses a moderate economic moat based on several competitive advantages, though it faces significant challenges in the current market environment. The company's primary moat comes from its **specialized expertise in net lease underwriting and tenant credit analysis**, developed over two decades of operation. This proprietary knowledge helps identify attractive sale-leaseback opportunities and assess tenant creditworthiness more effectively than generalist investors. The company benefits from **high switching costs** for tenants, as businesses typically invest significantly in customizing their leased spaces for specific operational needs. Once established, tenants are reluctant to relocate due to disruption costs, business continuity concerns, and the expense of moving operations. Additionally, Gladstone Commercial's **geographic diversification** across business-friendly markets in the Southeast and South Central regions provides some protection against localized economic downturns. However, the moat faces several challenges: **Capital intensity** requirements mean the company must continuously access capital markets to fund growth, creating dependency on favorable financing conditions. The **commoditized nature** of commercial real estate means properties can be replicated, and the company faces intense competition from larger REITs, private equity firms, and institutional investors with greater financial resources. **Potential disruption** comes from several sources: Larger, better-capitalized REITs like Realty Income and W.P. Carey that can outbid Gladstone Commercial for premium assets. The ongoing **office sector decline** due to remote work trends threatens roughly one-third of the portfolio. **Interest rate sensitivity** significantly impacts both acquisition opportunities and refinancing costs. **Economic recession** could lead to tenant defaults and difficulty finding replacement tenants, particularly affecting smaller middle-market businesses that comprise Gladstone Commercial's tenant base. The company's moat is weakening due to its smaller size relative to competitors and the structural challenges facing the office real estate sector.
Risks & safety
**Overall Assessment:** Moderate to high financial risk due to high leverage and interest rate sensitivity, though consistent cash flow generation provides some stability. **Debt and Solvency:** - Debt-to-equity ratio of 4.08x indicates high leverage typical for REITs but concerning given interest rate environment - Total debt of approximately $800+ million against $1.16 billion in total assets - Available liquidity of $99 million through credit facilities and cash provides near-term flexibility - No significant debt maturities in 2024, manageable $25.5 million due in 2025 - 98% of debt is either fixed rate (45%) or hedged against rate increases (47%), limiting interest rate exposure **Valuation Metrics:** - P/E ratio of 32.5x appears elevated for a REIT, suggesting limited margin of safety - EV/EBITDA of 12.8x is reasonable for commercial real estate but not particularly cheap - Price-to-book ratio of 3.6x indicates trading above net asset value - Current FFO yield of approximately 2.5% is low compared to historical REIT yields **Other Considerations:** - Strong operational metrics with 98.4% occupancy rate and 100% rent collection - Consistent distribution history provides income reliability but limits financial flexibility - Portfolio shift toward industrial properties should improve long-term fundamentals - Exposure to office sector (33% of portfolio) creates potential asset value risk
Recent development
Over the past few years, Gladstone Commercial has executed a significant **strategic portfolio transformation** focused on shifting from office to industrial real estate. The company has systematically increased its industrial concentration from 32% in 2022 to 65% by Q1 2025, with a stated goal of reaching 70% industrial allocation in the near term. **Key strategic initiatives include:** The company has been **actively disposing of non-core office assets** while acquiring mission-critical industrial properties, completing nearly $30 million in industrial acquisitions in 2023 and additional purchases in 2024-2025. Management has focused on **sale-leaseback transactions** with middle-market companies, leveraging their proprietary credit underwriting expertise to identify attractive opportunities. **Financial restructuring efforts** have been significant, with the company reducing secured mortgage debt by over $194 million since January 2022 while increasing its unencumbered asset base by 61%. In 2024, Gladstone Commercial closed a $75 million private placement of senior unsecured notes and amended its credit facility, providing greater financial flexibility. **Geographic focus** has narrowed to business-friendly markets in the Southeast, South Central, and select Midwest regions, aligning with demographic and economic growth trends. The company has also been **proactively managing lease expirations**, successfully renewing or extending leases across millions of square feet while achieving rent increases. **Operational improvements** include maintaining 100% cash rent collection throughout challenging economic periods and achieving portfolio occupancy rates above 98%. Management has also been selectively managing its incentive fee structure, partially waiving fees in recent periods to align with shareholder interests while maintaining operational focus.
GOOD company profile · for informational purposes only — not investment advice.
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