Gladstone Commercial (GOOD) AI Stock Analysis

• Market Cap: $668.62M
• Dividend Yield: 8.36%
• Average Volume (3M): 345.90K
• Price to Earnings (P/E): 49.6
• Beta (1Y): 0.71
• Revenue Growth: 3.01%
• EPS Growth: N/A
• Country: US
• Employees: 69
• Sector: Real Estate
• Sector Strength: 68
• Industry: REIT - Diversified
• EPS (TTM): 0.04
• Shares Outstanding: 46,282,864
• 10 Day Avg. Volume: 338,050
• 30 Day Avg. Volume: 345,898
• PEG Ratio: 2.81
• Price to Book (P/B): 3.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.68
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 1.68
• Enterprise Value/Gross Profit: 8.41
• Enterprise Value/Ebitda: 2.20
• 1Y Price Target: $16.00
• Price Target Upside: 11.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: $15.00 ▲(4.53%Upside)

Gladstone Commercial's overall score reflects solid financial performance and positive earnings call sentiment, particularly in industrial property management. The high dividend yield is attractive, though offset by a high P/E ratio, indicating valuation concerns. Technical analysis suggests a lack of strong momentum, adding caution. The company's high leverage and economic uncertainties pose risks, but strong operational management and strategic focus on industrial assets are positive.

Positive Factors

Earnings

Shares of Gladstone Commercial have been assigned a $16.00 Price Target, implying a 12-month price-only return of 13.64%, bringing the total return to 22.16% including the current 8.52% dividend yield.

Property Acquisition

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%.

Rent Collection

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

Negative Factors

Debt Level

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

Gladstone Commercial Business Overview & Revenue Model

Company Description

Gladstone Commercial Corporation (GOOD) is a real estate investment trust (REIT) focused on acquiring, owning, and operating net leased industrial and office properties across the United States. The company primarily invests in properties that are leased to tenants under long-term leases, providing steady and predictable income. Gladstone Commercial targets a diverse range of tenants across multiple industries, reducing risk and enhancing portfolio stability.

How the Company Makes Money

Gladstone Commercial makes money through rental income generated from its portfolio of net leased properties. The company enters into long-term lease agreements with tenants, ensuring a consistent revenue stream. Rent payments are typically structured to include fixed base amounts, and some leases may contain escalation clauses that increase rent over time, providing additional revenue growth. Additionally, Gladstone Commercial strategically acquires properties that have the potential for appreciation in value, which can contribute to its earnings through property sales or refinancing. The company's focus on maintaining a diversified tenant base across various sectors helps mitigate sector-specific risks and enhances revenue stability.

Gladstone Commercial Financial Statement Overview

Summary

Gladstone Commercial shows solid financial health with consistent revenue and profit growth. The company maintains strong operational efficiency and cash flow generation. However, its high leverage could pose a risk in volatile markets. Overall, the financials reflect a stable and growing business with good cash flow management.

Income Statement

Gladstone Commercial shows a solid upward trajectory in revenue with a TTM increase to $151.17M from $149.39M the previous year. Gross Profit Margin remains robust at 78.4%, while Net Profit Margin improved significantly, reflecting a positive shift to 16.9% from the prior year's 16.1%. The EBIT and EBITDA margins are stable at 34.8% and 78.3% respectively, indicating strong operational efficiency and cash flow generation.

Balance Sheet

The balance sheet shows moderate leverage with a Debt-to-Equity ratio of 4.08, reflecting substantial reliance on debt financing. However, Return on Equity increased to 14.0%, suggesting improved profitability. The Equity Ratio stands at 15.8%, indicating a relatively small equity base compared to total assets, which poses a risk if market conditions worsen.

Cash Flow

Operating Cash Flow to Net Income Ratio is favorable at 2.33, indicating strong cash earnings. Free Cash Flow showed a steady increase, with no capital expenditures reported, but Free Cash Flow to Net Income Ratio is high at 2.33, suggesting robust cash flow compared to net income. However, fluctuations in investing cash flows suggest some volatility in capital allocation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
151.17M	149.39M	147.58M	148.98M	137.69M	133.15M
	Gross Profit
118.59M	117.86M	115.35M	122.15M	110.59M	107.15M
	EBIT
52.66M	51.14M	50.78M	43.77M	37.75M	37.31M
	EBITDA
118.40M	117.23M	101.30M	100.86M	96.97M	90.51M
	Net Income Common Stockholders
25.61M	24.00M	4.99M	-23.18M	-19.99M	-12.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.45M	10.96M	11.98M	11.65M	7.96M	11.02M
	Total Assets
1.11B	1.09B	1.13B	1.20B	1.14B	1.10B
	Total Debt
723.60M	697.45M	743.95M	754.51M	713.03M	674.38M
	Net Debt
713.15M	686.49M	731.97M	742.86M	705.08M	663.36M
	Total Liabilities
956.91M	923.05M	809.16M	996.94M	940.79M	881.87M
	Stockholders Equity
147.31M	171.17M	170.04M	202.78M	201.30M	213.18M
Cash Flow		Free Cash Flow
59.61M	56.95M	60.37M	62.35M	64.78M	59.13M
	Operating Cash Flow
59.61M	56.95M	60.37M	69.18M	70.13M	65.49M
	Investing Cash Flow
-95.84M	-1.73M	1.14M	-82.51M	-94.78M	-100.26M
	Financing Cash Flow
36.67M	-56.29M	-61.36M	16.15M	21.75M	39.35M

Gladstone Commercial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.35
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOOD, the sentiment is Neutral. The current price of 14.35 is above the 20-day moving average (MA) of 14.06, above the 50-day MA of 14.06, and below the 200-day MA of 15.09, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 59.02 is Neutral, neither overbought nor oversold. The STOCH value of 95.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GOOD.

Gladstone Commercial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OLP	68 Neutral	$528.63M	18.10	9.57%	7.35%	1.82%	-1.03%
AHH	67 Neutral	$705.37M	122.11	3.05%	10.85%	-12.13%	-14.54%
GOOD	64 Neutral	$668.62M	49.62	7.51%	8.36%	3.01%	―
PKST	63 Neutral	$455.62M	―	-6.09%	7.26%	-8.41%	88.62%
Sector *	61 Neutral	$2.82B	10.77	0.50%	8439.01%	5.72%	-20.80%
CTO	55 Neutral	$606.66M	36.87	-1.05%	8.25%	17.48%	-172.41%
BRSP	50 Neutral	$660.14M	―	-6.29%	13.44%	-14.92%	-3.27%

Gladstone Commercial Corporate Events

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.

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.