Gladstone Commercial (GOOD) AI Stock Analysis

• Market Cap: $535.59M
• Dividend Yield: 10.68%
• Average Volume (3M): 575.96K
• Price to Earnings (P/E): 59.5
• Beta (1Y): 0.61
• Revenue Growth: 4.95%
• EPS Growth: -6.49%
• Country: US
• Employees: 69
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.02
• Shares Outstanding: 48,401,154
• 10 Day Avg. Volume: 711,655
• 30 Day Avg. Volume: 575,964
• PEG Ratio: -0.12
• Price to Book (P/B): 3.96
• Price to Sales (P/S): 4.54
• P/FCF Ratio: 11.91
• Enterprise Value/Market Cap: 2.94
• Enterprise Value/Revenue: 10.15
• Enterprise Value/Gross Profit: 15.01
• Enterprise Value/Ebitda: 14.96
• 1Y Price Target: $12.67
• Price Target Upside: 12.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.23
• Revenue Forecast (FY): $157.87M

• Rating: 59 Neutral
• Price Target: $11.50 ▲(2.31% Upside)

Gladstone Commercial's overall stock score reflects a balance of mixed financial performance, bearish technical indicators, and strategic achievements from the earnings call. While the company shows strong cash flow and strategic growth initiatives, high leverage and declining FFO are notable risks. The high dividend yield provides some appeal, but the stock's valuation and technical outlook suggest caution.

Positive Factors

High Occupancy Rates

High occupancy rates indicate strong demand for Gladstone's properties, ensuring stable rental income and enhancing cash flow predictability.

Industrial Concentration

Focusing on industrial properties aligns with market trends, offering resilience and growth potential due to high demand for logistics and manufacturing spaces.

Increased Credit Facility

The expanded credit facility enhances financial flexibility, supporting future acquisitions and strategic initiatives, reflecting lender confidence in the company's stability.

Negative Factors

Decline in FFO

Declining FFO indicates reduced profitability from operations, potentially impacting the company's ability to sustain dividends and invest in growth.

High Leverage

High leverage can strain financial resources, increasing risk during economic downturns and limiting the ability to invest in new opportunities.

Increased Operating Expenses

Rising operating expenses, driven by inflation and insurance costs, can pressure margins and reduce profitability, affecting long-term financial health.

Gladstone Commercial Business Overview & Revenue Model

Company Description

Gladstone Commercial Corporation (GOOD) is a real estate investment trust (REIT) that primarily focuses on acquiring, owning, and managing commercial properties in the United States. The company specializes in net lease properties, which are often leased to single tenants across various sectors, including industrial, office, and retail. Gladstone aims to provide attractive total returns to its investors through regular dividend distributions and capital appreciation by strategically managing its real estate portfolio.

How the Company Makes Money

Gladstone Commercial generates revenue primarily through rental income from its portfolio of net leased properties. These leases typically require tenants to cover property expenses such as taxes, insurance, and maintenance, which allows Gladstone to benefit from stable cash flows. The company also engages in property acquisitions, which can lead to capital appreciation and additional rental income. Furthermore, Gladstone may leverage financing options and partnerships to optimize its investment strategy and enhance its earnings potential. Their focus on long-term leases with creditworthy tenants also contributes to a reliable income stream.

Gladstone Commercial Financial Statement Overview

Summary

Gladstone Commercial shows a mixed financial performance. The income statement reflects moderate revenue growth and profitability, but declining margins suggest challenges. The balance sheet indicates high leverage, which could pose risks. However, strong cash flow generation is a positive aspect, providing a cushion against financial volatility.

Income Statement

The income statement shows a moderate performance with a TTM gross profit margin of 56.98% and a net profit margin of 13.59%. Revenue growth is positive at 4.5% TTM, indicating a recovery from previous declines. However, margins have decreased compared to the previous year, suggesting pressure on profitability.

Balance Sheet

The balance sheet reflects high leverage with a TTM debt-to-equity ratio of 1.98, though improved from the previous year. Return on equity is modest at 9.68% TTM, indicating moderate efficiency in generating profits from equity. The equity ratio is not provided, but the high debt levels pose a risk to financial stability.

Cash Flow

Cash flow analysis reveals strong performance with a significant free cash flow growth of 60.11% TTM. The operating cash flow to net income ratio is 0.39, and the free cash flow to net income ratio is 1.0, indicating robust cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.25M	149.39M	147.58M	148.98M	137.69M	133.15M
Gross Profit	104.93M	117.86M	115.35M	115.82M	104.71M	101.50M
EBITDA	105.32M	117.23M	100.14M	103.42M	96.97M	97.26M
Net Income	20.99M	24.00M	4.99M	10.80M	10.94M	14.94M
Balance Sheet
Total Assets	1.27B	1.09B	1.13B	1.20B	1.14B	1.10B
Cash, Cash Equivalents and Short-Term Investments	18.40M	10.96M	11.98M	11.65M	7.96M	11.02M
Total Debt	336.42M	697.45M	743.95M	754.51M	713.03M	674.38M
Total Liabilities	910.00M	923.05M	979.21M	996.94M	940.79M	881.87M
Stockholders Equity	354.87M	171.17M	153.28M	203.90M	201.30M	213.18M
Cash Flow
Free Cash Flow	131.06M	56.95M	60.37M	62.35M	64.78M	59.13M
Operating Cash Flow	131.06M	56.95M	60.37M	69.18M	70.13M	65.49M
Investing Cash Flow	-228.44M	-1.73M	1.14M	-82.51M	-94.78M	-100.26M
Financing Cash Flow	143.32M	-56.29M	-61.36M	16.15M	21.75M	39.35M

Gladstone Commercial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOOD, the sentiment is Negative. The current price of 11.24 is above the 20-day moving average (MA) of 11.24, below the 50-day MA of 11.89, and below the 200-day MA of 13.33, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 54.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GOOD.

Gladstone Commercial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTO	66 Neutral	$560.36M	―	-5.80%	8.64%	23.84%	-312.04%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
OLP	60 Neutral	$434.81M	15.57	10.91%	8.70%	7.71%	-5.37%
GOOD	59 Neutral	$535.59M	59.51	5.96%	10.68%	4.95%	-6.49%
AHH	56 Neutral	$510.58M	47.12	4.09%	9.72%	-39.94%	―
PKST	56 Neutral	$552.23M	―	-31.72%	5.42%	-16.50%	-640.43%
BRSP	52 Neutral	$704.45M	―	-3.58%	11.70%	-12.57%	70.50%

Gladstone Commercial Corporate Events

Gladstone Commercial Reports Q3 2025 Earnings and Strategic Growth

Gladstone Commercial Corporation is a real estate investment trust specializing in acquiring, owning, and operating net leased industrial and office properties across the United States.

Gladstone Commercial’s Earnings Call: Strategic Moves Amid Challenges

Gladstone Commercial’s recent earnings call painted a mixed picture, showcasing the company’s strategic achievements in industrial acquisitions and high occupancy rates, while also highlighting challenges such as declines in Funds From Operations (FFO) and increased expenses. Despite these short-term financial pressures, the company is making strategic moves aimed at future growth.

Gladstone Commercial Expands Credit Facility to $600M

On October 10, 2025, Gladstone Commercial Corporation announced an amendment and expansion of its credit facility, increasing it from $475 million to $600 million, with an option to further increase it by $250 million. This expansion, supported by a consortium of banks led by KeyBank, extends the maturity dates of various loan components and provides significant liquidity to support the company’s growth and future acquisitions.

The most recent analyst rating on (GOOD) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on Gladstone Commercial stock, see the GOOD Stock Forecast page.

Gladstone Commercial Updates Equity Offering Sales Agreement

On August 12, 2025, Gladstone Commercial Corporation and its operating partnership amended their At-the-Market Equity Offering Sales Agreement, removing Robert W. Baird & Co. as a sales agent and adding Huntington Securities. This adjustment reflects a strategic shift in their sales agent lineup, with shares continuing to be sold under the existing registration statement, which has already generated $93.5 million in gross proceeds.

The most recent analyst rating on (GOOD) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Gladstone Commercial stock, see the GOOD Stock Forecast page.

Gladstone Commercial Reports Strong Q2 2025 Performance

Gladstone Commercial Corporation is a real estate investment trust that focuses on acquiring, owning, and operating net leased industrial and office properties across the United States.

Gladstone Commercial’s Positive Q2 2025 Earnings Call

Gladstone Commercial’s recent earnings call painted a largely positive picture, underscored by strong operational metrics and strategic acquisitions. Despite a slight decline in Funds From Operations (FFO) and core FFO, the overall sentiment remained optimistic, driven by robust performance in the industrial real estate sector and high occupancy rates.