Gladstone Commercial (GOOD)
NASDAQ:GOOD
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Gladstone Commercial
(NASDAQ:GOOD)
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Rating:62Neutral
Price Target:
$13.50
▲(5.47% Upside)
Action:Reiterated
Date:06/03/26
The score is held back primarily by elevated and worsening leverage (balance-sheet risk) and mixed earnings quality signals, partly offset by strong cash generation. Technicals are moderately supportive with price above key moving averages and neutral momentum. Valuation is mixed: a very high dividend yield is attractive, but an elevated P/E reduces overall value appeal. The latest earnings call adds support via strong occupancy/collections and a clear industrial-growth plan, though refinancing and office exposure remain key risks.
Positive Factors
Strong cash generation
Stable operating cash flow (~$88M) and a marked TTM free cash flow improvement give Gladstone durable internal funding. This supports dividend coverage, capital recycling and acquisition funding, reducing near-term reliance on external markets amid upcoming maturities.
Negative Factors
Elevated and rising leverage
Leverage more than doubled to roughly 5.2x debt-to-equity, constraining financial flexibility. High indebtedness raises refinancing and covenant risk around upcoming maturities, increases interest-cost sensitivity, and amplifies downside if asset values soften.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Stable operating cash flow (~$88M) and a marked TTM free cash flow improvement give Gladstone durable internal funding. This supports dividend coverage, capital recycling and acquisition funding, reducing near-term reliance on external markets amid upcoming maturities.
Read all positive factors
Gladstone Commercial Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down where the company earns money—rental income, management fees, asset sales, and other services—highlighting which activities drive recurring cash flow versus one-time gains. Segment trends reveal what supports the dividend, which parts are most sensitive to market or tenant weakness, and where management is focusing growth efforts.
Breaks down where the company earns money—rental income, management fees, asset sales, and other services—highlighting which activities drive recurring cash flow versus one-time gains. Segment trends reveal what supports the dividend, which parts are most sensitive to market or tenant weakness, and where management is focusing growth efforts.
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The FlyGladstone Commercial (GOOD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$617.05M
Dividend Yield11.56%
Average Volume (3M)493.09K
Price to Earnings (P/E)28.3
Beta (1Y)0.68
Revenue Growth9.64%
EPS Growth-38.93%
CountryUS
Employees69
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.52
Shares Outstanding48,406,994
10 Day Avg. Volume564,144
30 Day Avg. Volume493,086
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)1.47
Price to Sales (P/S)3.12
P/FCF Ratio7.50
Enterprise Value/Market Cap2.34
Enterprise Value/Revenue8.72
Enterprise Value/Gross Profit105.62
Enterprise Value/Ebitda22.60
Forecast
1Y Price Target
$14.50Price Target Upside13.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.18
Revenue Forecast (FY)$171.32M
Gladstone Commercial Business Overview & Revenue Model
Company Description
Gladstone Commercial Corporation functions as a real estate investment trust (REIT), primarily focused on acquiring, holding, and managing industrial and office properties under net leases across the United States. The company demonstrates a stron...
How the Company Makes Money
Gladstone Commercial makes money primarily by owning commercial real estate and collecting rental income from tenants under lease agreements. Its core revenue stream is base rent paid by tenants; many of its leases are structured as net leases, me...
Gladstone Commercial Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call communicated a predominantly positive operating quarter: occupancy, collections, lease duration and top-line revenues improved, FFO per share increased modestly, and management has strong liquidity and an active acquisition pipeline focused on industrial growth. Headwinds include higher depreciation-driven expenses, upcoming debt maturities and a competitive acquisition market, plus ongoing office-market challenges and a small sequential occupancy dip. Overall the positives (high occupancy, 100% collections, revenue growth, disciplined pipeline and liquidity) outweigh the manageable risks, supporting a constructive outlook.Positive Updates
Robust Leasing Activity and Rent Growth
Leased/renewed >773,000 sq ft of industrial and 32,000 sq ft of office in Q1; resulted in an increase in straight-line rent of over $86,000 annually.
Negative Updates
Sequential Occupancy Dip (Office)
Small sequential decline in occupancy from Q4 driven by an office tenant downsizing in Pennsylvania; management expects occupancy to recover in Q3 when a new long-term tenant takes space.
Read all updates
Q1-2026 Updates
Positive
Negative
Robust Leasing Activity and Rent Growth
Leased/renewed >773,000 sq ft of industrial and 32,000 sq ft of office in Q1; resulted in an increase in straight-line rent of over $86,000 annually.
Read all positive updates
Company Guidance
Management's guidance emphasized growing industrial concentration toward a near‑term target of ~70% industrial annualized straight‑line rent in 2026 and redeploying capital into accretive industrial acquisitions (pipeline $300–$350M under review, 13 opportunities, 3 LOIs ≈ $87M, targeting mid‑6.5% going‑in caps), while opportunistically disposing noncore assets; they cited supporting Q1 metrics of 773,000 sq ft of industrial and 32,000 sq ft of office renewed/leased (adding >$86,000 annual straight‑line rent), a $1.78M parcel sale gain, 100% cash rent collection, 98.7% occupancy, 7.3‑year average remaining lease term, FFO/core FFO $0.35/sh (vs $0.34 LY), same‑store lease revenue +1%, total revenues $41.9M and operating expenses $25.2M, and balance‑sheet/liquidity stats of $7.8M cash, $34.3M revolver drawn, $77M available on the line, $17.9M of 2026 loan maturities and $35.2M due in Q1 2027, debt mix 48% fixed/48% hedged/4% floating with effective SOFR 3.68%, and a $0.30 quarterly dividend ($1.20/year).Gladstone Commercial Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
38
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 165.74M | 161.34M | 149.39M | 147.58M | 148.98M | 137.69M |
| Gross Profit | 13.69M | 9.58M | 117.86M | 115.35M | 115.82M | 104.71M |
| EBITDA | 63.96M | 119.44M | 117.23M | 100.14M | 103.42M | 96.97M |
| Net Income | 21.13M | 19.29M | 24.00M | 4.99M | 10.80M | 10.94M |
Balance Sheet | ||||||
| Total Assets | 1.23B | 1.25B | 1.09B | 1.13B | 1.20B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 7.96M | 10.81M | 10.96M | 11.98M | 11.65M | 7.96M |
| Total Debt | 843.11M | 856.39M | 697.45M | 743.95M | 754.51M | 713.03M |
| Total Liabilities | 1.07B | 905.00M | 923.05M | 979.21M | 996.94M | 940.79M |
| Stockholders Equity | 163.48M | 341.81M | 171.17M | 153.28M | 203.90M | 201.30M |
Cash Flow | ||||||
| Free Cash Flow | 89.03M | 67.17M | 56.95M | 53.69M | 62.35M | 64.78M |
| Operating Cash Flow | 88.38M | 88.15M | 56.95M | 60.37M | 69.18M | 70.13M |
| Investing Cash Flow | -144.26M | -221.38M | -1.73M | 1.24M | -82.03M | -94.78M |
| Financing Cash Flow | 54.05M | 134.74M | -56.29M | -61.47M | 15.66M | 21.75M |
Gladstone Commercial Technical Analysis
Positive
12.80
Price Trends
12.41
Positive
11.97
Positive
11.43
Positive
Market Momentum
0.07
Positive
51.97
Neutral
71.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOOD, the sentiment is Positive. The current price of 12.8 is above the 20-day moving average (MA) of 12.62, above the 50-day MA of 12.41, and above the 200-day MA of 11.43, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 51.97 is Neutral, neither overbought nor oversold. The STOCH value of 71.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GOOD.
Gladstone Commercial Risk Analysis
Gladstone Commercial disclosed 51 risk factors in its most recent earnings report. Gladstone Commercial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gladstone Commercial Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $703.71M | 47.86 | 2.49% | 8.56% | 17.17% | ― | |
66 Neutral | $534.36M | 21.43 | 8.11% | 9.03% | 10.12% | -7.92% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $617.05M | 28.27 | 9.74% | 11.56% | 9.64% | -38.93% | |
53 Neutral | $729.56M | -22.29 | -3.31% | 10.83% | -1.01% | 52.33% |
* Real Estate Sector Average
GOOD
Gladstone Commercial
12.65
-0.63
-4.76%
CTO
CTO Realty Growth
20.83
3.81
22.41%
OLP
One Liberty Properties
24.49
1.08
4.63%
BRSP
BrightSpire Capital
5.60
0.84
17.72%
Gladstone Commercial Corporate Events
Business Operations and StrategyExecutive/Board Changes
Gladstone Commercial Expands Board With New Independent Director
Positive
Jun 2, 2026
On June 1, 2026, Gladstone Commercial’s board elected George “Chip” Stelljes, III as an independent director in its 2028 class, expanding the board from seven to eight members and assigning him to the Compensation, Ethics, Nomina...
Executive/Board ChangesShareholder Meetings
Gladstone Commercial Shareholders Approve Directors and Auditor Selection
Positive
May 7, 2026
On May 7, 2026, Gladstone Commercial Corporation held its 2026 Annual Meeting of Stockholders, at which shareholders elected two directors, Michela English and Anthony Parker, to serve on the board until the 2029 annual meeting and until their suc...
Business Operations and StrategyExecutive/Board Changes
Gladstone Commercial Announces CEO Succession and Leadership Changes
Positive
Mar 23, 2026
On March 20, 2026, Gladstone Commercial executed a planned leadership transition in which founder David Gladstone stepped down as chief executive but remained chairman of the board, investment committee member, and leader of the affiliated adviser...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.