Gladstone Commercial (GOOD)
NASDAQ:GOOD
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Gladstone Commercial
(NASDAQ:GOOD)
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Rating:64Neutral
Price Target:
$13.50
▲(5.47% Upside)
Action:Reiterated
Date:05/09/26
The score is primarily held back by elevated and worsening leverage (debt-to-equity ~5.2x) despite solid operating and free-cash-flow generation. Technicals add support with price trading above key moving averages and positive momentum. Valuation is mixed: an attractive ~9.35% yield is offset by a mid-to-higher P/E (~19.35). Earnings-call commentary was constructive on occupancy, collections, and industrial-focused growth plans, but highlighted upcoming maturities and office-market execution risk.
Positive Factors
Cash generation / FCF
Stable operating cash flow and a material TTM improvement in free cash flow provide durable internal funding for dividends, maintenance capex and selective acquisitions. Consistent FCF above net income reduces reliance on external financing and supports payout sustainability over the next several quarters.
Negative Factors
Elevated and rising leverage
Material increase in leverage materially raises refinancing and valuation sensitivity; a thin equity base magnifies mark‑to‑market effects on NAV and increases the cost of capital. Elevated debt levels constrain agility to pursue opportunistic deals and amplify downside in stress scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation / FCF
Stable operating cash flow and a material TTM improvement in free cash flow provide durable internal funding for dividends, maintenance capex and selective acquisitions. Consistent FCF above net income reduces reliance on external financing and supports payout sustainability over the next several quarters.
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
$623.87M
Dividend Yield11.56%
Average Volume (3M)390.89K
Price to Earnings (P/E)19.4
Beta (1Y)0.70
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. Volume497,324
30 Day Avg. Volume390,895
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 Cap2.33
Enterprise Value/Revenue8.77
Enterprise Value/Gross Profit106.26
Enterprise Value/Ebitda22.74
Forecast
1Y Price Target
$13.83Price Target Upside8.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.18
Revenue Forecast (FY)$171.32M
Gladstone Commercial Business Overview & Revenue Model
Company Description
Gladstone Commercial Corporation is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States. Including payments through September 2020, Gladstone Commercial ha...
How the Company Makes Money
Gladstone Commercial makes money primarily by acquiring commercial properties and generating recurring rental income from leasing those properties to tenants. Its core revenue stream is contractual base rent collected under lease agreements, many ...
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
12.05
Positive
11.66
Positive
11.39
Positive
Market Momentum
0.10
Positive
60.27
Neutral
36.41
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 12.50, above the 50-day MA of 12.05, and above the 200-day MA of 11.39, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 60.27 is Neutral, neither overbought nor oversold. The STOCH value of 36.41 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 | $699.32M | 24.23 | 2.49% | 8.56% | 17.17% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $623.87M | 19.36 | 9.74% | 11.56% | 9.64% | -38.93% | |
63 Neutral | $506.43M | 36.73 | 8.11% | 9.03% | 10.12% | -7.92% | |
53 Neutral | $742.58M | 36.39 | -3.31% | 10.83% | -1.01% | 52.33% |
* Real Estate Sector Average
GOOD
Gladstone Commercial
12.79
0.23
1.86%
CTO
CTO Realty Growth
20.70
4.28
26.08%
OLP
One Liberty Properties
23.21
1.32
6.02%
BRSP
BrightSpire Capital
5.70
1.26
28.47%
Gladstone Commercial Corporate Events
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.