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Gladstone Commercial
(NASDAQ:GOOD)
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Rating:59Neutral
Price Target:
$13.00
▲(0.31% Upside)
Action:Reiterated
Date:08/06/26
GOOD scores as a moderate setup driven primarily by solid cash flow and a constructive earnings outlook (FFO growth, very high occupancy/collections, and longer lease terms). The score is held back by elevated leverage on the balance sheet and weak near-term technical momentum; valuation is mixed with a very high yield but a relatively high P/E.
Positive Factors
High occupancy & long leases
Extremely high occupancy and a WALT above seven years create durable, predictable rental cash flows and low lease rollover risk. For a net-leased REIT, this reduces downtime and leasing cost volatility, supporting sustained FFO stability and easier long-term cash planning.
Negative Factors
Elevated leverage
A debt-heavy capital structure raises refinancing and liquidity vulnerability for a REIT that relies on external capital. High leverage increases sensitivity to rising rates or valuation declines, constrains balance-sheet flexibility, and can magnify earnings volatility if asset cash flows weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
High occupancy & long leases
Extremely high occupancy and a WALT above seven years create durable, predictable rental cash flows and low lease rollover risk. For a net-leased REIT, this reduces downtime and leasing cost volatility, supporting sustained FFO stability and easier long-term cash planning.
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.
Data provided by:
The Fly
The FlyGladstone Commercial (GOOD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$634.61M
Dividend Yield8.31%
Average Volume (3M)494.66K
Price to Earnings (P/E)24.9
Beta (1Y)0.65
Revenue Growth10.78%
EPS Growth-30.46%
CountryUS
Employees75
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.60
Shares Outstanding48,407,500
10 Day Avg. Volume413,568
30 Day Avg. Volume494,656
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$14.00Price Target Upside8.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.22
Revenue Forecast (FY)$170.39M
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:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call emphasized operational strength: rising FFO, very high occupancy, long lease terms, successful accretive acquisitions and active capital recycling while preserving liquidity. Management is execution-focused on increasing industrial concentration and maintaining collections. Key negatives are manageable near-term headwinds including higher operating expenses, upcoming maturities, GAAP timing from accelerated rent, pressure from an undervalued equity price that limits cheaper capital access, and selective office-market exposure. On balance, the positives (FFO growth, portfolio metrics, disciplined acquisitions and strong occupancy) materially outweigh the lowlights.Positive Updates
FFO and core FFO per share growth
FFO and core FFO per share were $0.38 in Q2 2026 versus $0.33 and $0.35 in Q2 2025 (FFO up ~15.2% YoY; core FFO up ~8.6% YoY). For the six months ended June 30, 2026 FFO and core FFO were $0.72 vs. $0.67 and $0.69 in 2025 (six-month FFO up ~7.5%; core FFO up ~4.3%).
Negative Updates
Higher operating expenses and one-time items
Operating expenses rose to $26.2M in Q2 2026 from $25.1M a year ago (+~4.4%), driven primarily by higher depreciation (larger portfolio) and payment of the majority of the incentive fee in the quarter; a $1.9M termination fee was recognized as a one‑time item.
Read all updates
Q2-2026 Updates
Positive
Negative
FFO and core FFO per share growth
FFO and core FFO per share were $0.38 in Q2 2026 versus $0.33 and $0.35 in Q2 2025 (FFO up ~15.2% YoY; core FFO up ~8.6% YoY). For the six months ended June 30, 2026 FFO and core FFO were $0.72 vs. $0.67 and $0.69 in 2025 (six-month FFO up ~7.5%; core FFO up ~4.3%).
Read all positive updates
Company Guidance
Management guidance emphasized growing industrial concentration to and past a near‑term target of 70% of annualized straight‑line rent (currently 69%), increasing portfolio WALT (now >7.1 years) and maintaining very high occupancy (portfolio 98.7% as of 6/30, industrial 99.8%; Austin expected to move from ~69% to >90%, office >95%), while driving straight‑line rent growth and FFO/core FFO expansion (Q2 FFO and core FFO of $0.38/share, six‑month $0.72 vs. 2025 Q2 $0.33/$0.35 and six‑month $0.67/$0.69), pursuing accretive industrial acquisitions (e.g., 153,890 SF Newport News for $22.75M; 146,650 SF Red Bud for ~$6.5–6.55M; LOI ~$32M; 15 deals under review), recycling capital via dispositions (sold 161,458 SF Monroe with $1.9M termination fee), targeting going‑in cap rates around 7.5%+ with long‑term averages north of 9%, limiting office growth, targeting CapEx paybacks of 6–9 months, and relying on liquidity sources ($8.4M cash, $68.8M revolver availability with $51.57M drawn, debt mix 47% fixed/47% hedged/6% floating, effective SOFR 3.68%, loan maturities $17.7M in 2026 and $51.9M through Q2 2027) while maintaining a $0.30/quarter dividend ($1.20/year, ~9.8% yield) and a payout ratio of roughly 79%.Gladstone Commercial Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
38
Negative
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 170.20M | 161.34M | 149.39M | 147.58M | 148.98M | 137.69M |
| Gross Profit | 27.04M | 9.58M | 117.86M | 115.35M | 115.82M | 104.71M |
| EBITDA | 69.71M | 119.44M | 117.23M | 100.14M | 103.42M | 96.97M |
| Net Income | 24.76M | 19.29M | 24.00M | 4.99M | 10.80M | 10.94M |
Balance Sheet | ||||||
| Total Assets | 1.24B | 1.25B | 1.09B | 1.13B | 1.20B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 10.36M | 10.81M | 10.96M | 11.98M | 11.65M | 7.96M |
| Total Debt | 858.72M | 856.39M | 697.45M | 743.95M | 754.51M | 713.03M |
| Total Liabilities | 915.44M | 905.00M | 923.05M | 979.21M | 996.94M | 940.79M |
| Stockholders Equity | 327.41M | 341.81M | 171.17M | 153.28M | 203.90M | 201.30M |
Cash Flow | ||||||
| Free Cash Flow | 75.18M | 67.17M | 44.16M | 53.69M | 62.35M | 64.78M |
| Operating Cash Flow | 70.09M | 88.15M | 56.95M | 60.37M | 69.18M | 70.13M |
| Investing Cash Flow | -76.27M | -221.38M | -1.73M | 1.24M | -82.03M | -94.78M |
| Financing Cash Flow | 6.08M | 134.74M | -56.29M | -61.47M | 15.66M | 21.75M |
Gladstone Commercial Technical Analysis
Positive
12.96
Price Trends
12.52
Positive
12.26
Positive
11.51
Positive
Market Momentum
0.11
Negative
62.16
Neutral
86.72
Negative
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 12.96 is above the 20-day moving average (MA) of 12.81, above the 50-day MA of 12.52, and above the 200-day MA of 11.51, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 62.16 is Neutral, neither overbought nor oversold. The STOCH value of 86.72 is Negative, 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $819.06M | 15.43 | 8.92% | 6.91% | 14.26% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
59 Neutral | $634.61M | 24.94 | 9.73% | 8.49% | 10.78% | -30.46% | |
58 Neutral | $522.71M | 16.75 | 10.50% | 7.16% | 9.52% | 21.63% | |
51 Neutral | $627.56M | -21.36 | -2.91% | 12.24% | -0.14% | -10.71% |
* Real Estate Sector Average
GOOD
Gladstone Commercial
13.24
1.35
11.35%
CTO
CTO Realty Growth
21.96
6.76
44.46%
OLP
One Liberty Properties
24.62
3.64
17.37%
BRSP
BrightSpire Capital
4.97
0.04
0.75%
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...
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.