Gladstone Commercial (GOOD) AI Stock Analysis

• Market Cap: $519.01M
• Dividend Yield: 11.48%
• Average Volume (3M): 526.20K
• Price to Earnings (P/E): 56.3
• 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: 660,975
• 30 Day Avg. Volume: 526,196
• 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: 3.04
• Enterprise Value/Revenue: 10.15
• Enterprise Value/Gross Profit: 13.11
• Enterprise Value/Ebitda: 13.58
• 1Y Price Target: $12.33
• Price Target Upside: 18.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.12
• Revenue Forecast (FY): $158.94M

• Rating: 60 Neutral
• Price Target: $11.50 ▲(10.79% Upside)

Gladstone Commercial's overall stock score is driven by strong cash flow generation and strategic growth initiatives, despite high leverage and a bearish technical outlook. The high dividend yield provides some appeal, but the high P/E ratio suggests potential overvaluation. Recent corporate events enhance financial flexibility, supporting future growth.

Positive Factors

High Occupancy Rates

High occupancy rates indicate strong demand for Gladstone's properties, ensuring stable rental income and reducing vacancy risks, which supports long-term revenue stability.

Increased Industrial Concentration

Focusing on industrial properties aligns with market demand trends, enhancing portfolio resilience and potential for rental growth, benefiting long-term strategic positioning.

Expanded Credit Facility

The expanded credit facility provides significant liquidity, enabling Gladstone to pursue growth opportunities and manage debt maturities, enhancing financial flexibility.

Negative Factors

High Leverage

High leverage can strain financial resources and limit flexibility, increasing risk during economic downturns and potentially impacting long-term financial health.

Decline in FFO

Declining FFO indicates reduced profitability and cash flow generation, which can impact the company's ability to fund operations and growth initiatives over time.

Increased Operating Expenses

Rising operating expenses can erode profit margins and reduce cash flow, challenging the company's ability to maintain profitability and invest in growth.

Gladstone Commercial Business Overview & Revenue Model

Company Description

Gladstone Commercial Corporation (GOOD) is a real estate investment trust (REIT) that focuses on the acquisition, ownership, and management of net leased industrial and commercial properties across the United States. The company primarily invests in single-tenant, income-producing properties that are leased to high-quality tenants, with a particular emphasis on industrial and office sectors. By utilizing a net lease structure, Gladstone aims to provide stable income streams while delivering potential long-term value appreciation for its shareholders.

How the Company Makes Money

Gladstone Commercial generates revenue primarily through leasing its properties to tenants under long-term net lease agreements. These leases typically require tenants to cover property expenses such as maintenance, insurance, and property taxes, allowing Gladstone to maintain a more predictable and stable cash flow. The company earns rental income from its diverse portfolio, which includes industrial facilities and office spaces, thereby providing a steady stream of revenue. Additionally, Gladstone may benefit from property appreciation over time and potential sale of properties, providing further financial gains. The company's strategy is also bolstered by its focus on high-quality tenants with strong credit ratings, minimizing the risk of tenant defaults and enhancing overall profitability.

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	120.20M	117.86M	115.35M	115.82M	104.71M	101.50M
EBITDA	116.03M	117.23M	100.14M	103.42M	96.97M	97.26M
Net Income	21.09M	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	850.12M	697.45M	743.95M	754.51M	713.03M	674.38M
Total Liabilities	1.08B	923.05M	979.21M	996.94M	940.79M	881.87M
Stockholders Equity	184.83M	171.17M	153.28M	203.90M	201.30M	213.18M
Cash Flow
Free Cash Flow	77.81M	56.95M	53.69M	62.35M	64.78M	59.13M
Operating Cash Flow	95.22M	56.95M	60.37M	69.18M	70.13M	65.49M
Investing Cash Flow	-228.19M	-1.73M	1.24M	-82.03M	-94.78M	-100.28M
Financing Cash Flow	143.07M	-56.29M	-61.47M	15.66M	21.75M	39.37M

Gladstone Commercial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 10.38 is below the 20-day moving average (MA) of 10.77, below the 50-day MA of 10.89, and below the 200-day MA of 12.51, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 35.26 is Neutral, neither overbought nor oversold. The STOCH value of 6.81 is Positive, 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	71 Outperform	$436.15M	12.92	10.91%	8.93%	7.71%	-5.37%
CTO	69 Neutral	$573.64M	-13.78	-5.80%	8.58%	23.84%	-312.04%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AHH	61 Neutral	$531.42M	48.67	4.09%	9.50%	-39.94%	―
GOOD	60 Neutral	$519.01M	56.26	5.96%	11.48%	4.95%	-6.49%
BRSP	57 Neutral	$762.83M	-19.61	-3.58%	10.83%	-12.57%	70.50%
PKST	56 Neutral	$524.27M	-1.62	-31.72%	5.44%	-16.50%	-640.43%

Gladstone Commercial Corporate Events

Gladstone Commercial Secures $85M in Private Placement

On December 15, 2025, Gladstone Commercial Corporation and its majority-owned operating partnership entered into a Note Purchase Agreement with institutional investors for a private placement of $85 million in senior guaranteed notes. These notes, which mature on December 15, 2030, bear a fixed annual interest rate of 5.99% and are intended to repay borrowings under the partnership’s revolving line of credit, repay term loan debt, and support general corporate purposes. This strategic financial move is expected to enhance the company’s operational flexibility and financial stability.

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.