Gladstone Commercial (GOOD) AI Stock Analysis

• Market Cap: $702.52M
• Dividend Yield: 9.17%
• Average Volume (3M): 385.63K
• Price to Earnings (P/E): 36.7
• Beta (1Y): 0.64
• Revenue Growth: 5.85%
• EPS Growth: N/A
• Country: US
• Employees: 69
• Sector: Real Estate
• Sector Strength: 50
• Industry: REIT - Diversified
• EPS (TTM): 0.03
• Shares Outstanding: 52,830,627
• 10 Day Avg. Volume: 506,437
• 30 Day Avg. Volume: 385,625
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.30
• Enterprise Value/Revenue: 10.52
• Enterprise Value/Gross Profit: 13.53
• Enterprise Value/Ebitda: 13.44
• 1Y Price Target: $14.25
• Price Target Upside: 8.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 59 Neutral
• Price Target: $13.50 ▲(3.21% Upside)

Gladstone Commercial's overall score is driven by solid financial performance and a positive earnings call outlook. However, technical analysis indicates bearish trends, and the high P/E ratio suggests potential overvaluation. The attractive dividend yield provides some balance for income investors.

Positive Factors

Acquisitions

The company completed the acquisition of six properties comprising 355.8K sqft, fully occupied, for a total cost of $73.7 million, at a weighted average cap rate of 8.39%.

Earnings

The company successfully collected 100% of cash rents for the first quarter of 2025, with occupancy standing at 98.4%.

Negative Factors

Debt Levels

The company does have a slightly higher than average level of debt and preferred totaling approximately 53% to total capitalization.

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 stable revenue growth and improved cash flow generation. However, declining profit margins and operational efficiency pose challenges. The balance sheet shows reduced leverage, enhancing financial stability, but the return on equity remains moderate.

Income Statement

Gladstone Commercial shows a stable revenue growth with a TTM increase of 1.64%. The gross profit margin has decreased from 78.89% in 2024 to 57.83% in TTM, indicating potential cost pressures. Net profit margin improved slightly to 16.57% in TTM, reflecting better profitability. However, the EBIT and EBITDA margins have decreased, suggesting operational challenges.

Balance Sheet

The company's debt-to-equity ratio improved significantly from 4.37 in 2023 to 1.99 in TTM, indicating reduced leverage. However, the return on equity remains modest at 14.69% in TTM, and the equity ratio is not provided, limiting a full assessment of financial stability.

Cash Flow

Free cash flow growth is strong at 37.32% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is low at 0.14, suggesting potential cash flow management issues. The free cash flow to net income ratio remains stable at 1.0, showing consistent cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	153.64M	149.39M	147.58M	148.98M	137.69M	133.15M
Gross Profit	119.49M	117.86M	115.35M	122.15M	110.59M	101.50M
EBITDA	120.27M	117.23M	100.14M	103.42M	96.97M	97.26M
Net Income	28.63M	24.00M	4.99M	-3.04M	-4.59M	14.94M
Balance Sheet
Total Assets	1.21B	1.09B	1.13B	1.20B	1.14B	1.10B
Cash, Cash Equivalents and Short-Term Investments	11.66M	10.96M	11.98M	11.65M	7.96M	11.02M
Total Debt	338.78M	697.45M	743.95M	754.51M	713.03M	674.38M
Total Liabilities	862.63M	923.05M	809.16M	996.94M	940.79M	881.87M
Stockholders Equity	170.04M	171.17M	170.04M	202.78M	201.30M	213.18M
Cash Flow
Free Cash Flow	81.86M	56.95M	60.37M	62.35M	64.78M	59.13M
Operating Cash Flow	81.86M	56.95M	60.37M	69.18M	70.13M	65.49M
Investing Cash Flow	-163.36M	-1.73M	1.14M	-82.51M	-94.78M	-100.26M
Financing Cash Flow	82.98M	-56.29M	-61.36M	16.15M	21.75M	39.35M

Gladstone Commercial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.08
• 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 13.08 is below the 20-day moving average (MA) of 13.18, below the 50-day MA of 13.43, and below the 200-day MA of 14.39, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 44.61 is Neutral, neither overbought nor oversold. The STOCH value of 40.14 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
OLP	76 Outperform	$510.62M	18.28	9.16%	7.76%	5.57%	-14.50%
AHH	67 Neutral	$739.86M	79.35	3.55%	9.43%	-25.73%	―
GOOD	59 Neutral	$702.52M	36.70	8.51%	9.17%	5.85%	―
PKST	58 Neutral	$499.99M	―	-35.52%	6.70%	-6.69%	-118.66%
BRSP	56 Neutral	$772.16M	―	-2.41%	10.77%	-14.73%	79.63%
CTO	54 Neutral	$573.81M	36.87	-5.66%	8.85%	22.26%	-328.46%
Sector *	53 Neutral	$1.22B	2.98	-6.08%	5.74%	-8.21%	-81.31%

Gladstone Commercial Corporate Events

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.

Gladstone Commercial Secures $20 Million Term Loan

On May 30, 2025, Gladstone Commercial Limited Partnership entered into a $20 million Term Loan Agreement with KeyBank and other lenders, scheduled to mature on May 30, 2027. The unsecured loan imposes customary financial covenants and restrictions, but does not alter the company’s existing Credit Facility, potentially impacting its financial strategy and operational flexibility.