Gladstone Commercial Corporation (GOOD) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 19 2026
0mins
Should l Buy GOOD?
Source: SeekingAlpha
Industrial Assets Acquired $206 million worth of industrial assets were acquired across 10 facilities totaling 1.6 million square feet with a weighted average cap rate of 8.88%. This increased the industrial concentration as a percent of annualized straight-line rent to 69% in 2025 from 63% in 2024.
Lease Renewals and Extensions $21 million was invested in renewing or extending 1.2 million square feet of leases at 18 properties, resulting in a $2.1 million net increase in GAAP rent.
Same-Store Lease Revenue Increased by 4% year-over-year in 2025 due to higher recovery revenue from property operating expenses and increased rental rates from leasing activity, partially offset by a prior period settlement related to deferred maintenance.
Operating Revenues and Expenses Operating revenues for Q4 2025 were $43.5 million, up from $37.4 million in Q4 2024, due to increased portfolio size, recovery revenues, and higher rental rates. Operating expenses were $26.4 million in Q4 2025, up from $25 million in Q4 2024, mainly due to higher depreciation from a larger portfolio.
FFO and Core FFO For Q4 2025, FFO and Core FFO per share were $0.37, up from $0.35 in Q4 2024. For the full year 2025, FFO and Core FFO per share were $1.38 and $1.40, respectively, compared to $1.41 and $1.42 in 2024. The decline for the full year was due to various factors including portfolio changes.
Debt and Credit Facility The syndicated bank credit facility was amended and extended from $505 million to $600 million. Additionally, $85 million of 5.99% senior unsecured notes were issued, maturing in December 2030.
Occupancy Rate Occupancy increased to 99.1% in 2025, reflecting the mission-critical nature of the assets and quality of tenant credits.
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Analyst Views on GOOD
Wall Street analysts forecast GOOD stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 11.320
Low
11.00
Averages
12.33
High
13.00
Current: 11.320
Low
11.00
Averages
12.33
High
13.00
About GOOD
Gladstone Commercial Corporation is a real estate investment trust. It is focused on acquiring, owning and operating net leased industrial and office properties across the United States. It conducts substantially all its business activities through an Umbrella Partnership Real Estate Investment Trust structure, by which all its properties are held, directly or indirectly, by Gladstone Commercial Limited Partnership (the Operating Partnership). Its real estate portfolio consisted of 143 properties located in 27 states, totaling over 17.0 million square feet. Its properties are geographically diversified, and its tenants cover a cross-section of business sectors and range in size from small to large private and public companies. Its properties are in various states, such as Pennsylvania, Texas, Florida, Ohio, Georgia, North Carolina, Alabama, Colorado and others. Its properties have tenants from various industries, such as telecommunications, banking, healthcare, automotive, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Gladstone Commercial Announces CEO Transition
- Executive Transition: David Gladstone, founder of Gladstone Commercial, steps down as CEO while remaining chairman, indicating stability and continuity in the company's governance structure.
- New CEO Appointment: Arthur Cooper, who has served as president since 2022 and is a founding member, is appointed CEO, expected to drive improvements in strategic direction and operational efficiency.
- Dividend Yield Expansion: Gladstone Commercial's dividend yield expands as coverage deepens, demonstrating the company's ability to attract investors even amid geopolitical uncertainties.
- Portfolio Expansion Plans: Gladstone Commercial targets exceeding 70% industrial rent concentration by 2026, aiming to enhance market competitiveness and revenue stability through optimized asset allocation.
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GLADSTONE COMMERCIAL CORP NAMES ARTHUR "BUZZ" COOPER AS CEO STARTING MARCH 20, 2026 - SEC FILING
- Appointment Announcement: Gladstone Commercial Corp has appointed Arthur "Buzz" Cooper as the new CEO, effective March 20, 2026.
- Leadership Transition: This appointment marks a significant leadership change within the company, indicating a strategic shift in management.
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David Gladstone to Remain Chairman of the Board at Gladstone Commercial Corp - SEC Filing
- Leadership Announcement: David Gladstone will continue as Chairman of the Board for Gladstone Commercial Corp.
- Board Stability: The decision reflects the company's commitment to maintaining experienced leadership within its board.
See More
David Gladstone Resigns as CEO of Gladstone Commercial Corp, Effective March 20, 2026 - SEC Filing
- Company Announcement: David Gladstone steps down as CEO of Gladstone Commercial Corporation, effective March 2, 2026.
- Leadership Transition: The transition marks a significant change in the company's leadership structure as it prepares for future developments.
See More
Analysis of Gladstone Commercial Dividend History
- Dividend Overview: Gladstone Commercial Corp recently declared a dividend of $0.125 per share, indicating a stable dividend policy that continues to provide shareholder returns despite market fluctuations.
- ETF Composition: Gladstone Commercial Corp constitutes 4.77% of the Invesco KBW Premium Yield Equity REIT ETF, highlighting its significance in yield-focused portfolios, even as the ETF trades down approximately 0.6% on the day.
- Preferred Stock Performance: In Thursday trading, Gladstone Commercial's 7.50% Series B Cumulative Redeemable Preferred Stock (GOODO) rose about 1.1%, indicating strong investor demand for preferred shares, while common shares (GOOD) fell by about 0.5%.
- Market Reaction Analysis: Despite the underperformance of common shares, the rise in preferred stock may reflect market confidence in the company's ability to maintain stable dividends, further enhancing its appeal among income-focused investors.
See More
Analysis of Invesco KBW Premium Yield REIT ETF
- Yield Advantage: The Invesco KBW Premium Yield REIT ETF currently holds over 30 REITs, with its top five holdings averaging yields exceeding the sector average of 4%, including Innovative Industrial Properties at 16.4%, providing substantial income for investors.
- Poor Market Performance: Despite the ETF's distribution yield exceeding 9%, its total return over the past year is -0.4%, with an average annual total return of only 4% since inception in 2010, significantly underperforming the S&P 500 and the overall REIT sector.
- Interest Rate Sensitivity: The REITs within this ETF are highly sensitive to interest rate changes, as higher rates increase borrowing costs, particularly for smaller REITs, which face even higher financing costs, putting pressure on their expansion plans and limiting market performance.
- Future Outlook: Should interest rates begin to decline, it could provide a significant tailwind for the Invesco KBW Premium Yield REIT ETF by lowering borrowing costs and enhancing asset values, potentially enabling it to outperform the market.
See More
Gladstone Commercial Announces CEO Transition
- Executive Transition: David Gladstone, founder of Gladstone Commercial, steps down as CEO while remaining chairman, indicating stability and continuity in the company's governance structure.
- New CEO Appointment: Arthur Cooper, who has served as president since 2022 and is a founding member, is appointed CEO, expected to drive improvements in strategic direction and operational efficiency.
- Dividend Yield Expansion: Gladstone Commercial's dividend yield expands as coverage deepens, demonstrating the company's ability to attract investors even amid geopolitical uncertainties.
- Portfolio Expansion Plans: Gladstone Commercial targets exceeding 70% industrial rent concentration by 2026, aiming to enhance market competitiveness and revenue stability through optimized asset allocation.
See More
GLADSTONE COMMERCIAL CORP NAMES ARTHUR "BUZZ" COOPER AS CEO STARTING MARCH 20, 2026 - SEC FILING
- Appointment Announcement: Gladstone Commercial Corp has appointed Arthur "Buzz" Cooper as the new CEO, effective March 20, 2026.
- Leadership Transition: This appointment marks a significant leadership change within the company, indicating a strategic shift in management.
See More
David Gladstone to Remain Chairman of the Board at Gladstone Commercial Corp - SEC Filing
- Leadership Announcement: David Gladstone will continue as Chairman of the Board for Gladstone Commercial Corp.
- Board Stability: The decision reflects the company's commitment to maintaining experienced leadership within its board.
See More
David Gladstone Resigns as CEO of Gladstone Commercial Corp, Effective March 20, 2026 - SEC Filing
- Company Announcement: David Gladstone steps down as CEO of Gladstone Commercial Corporation, effective March 2, 2026.
- Leadership Transition: The transition marks a significant change in the company's leadership structure as it prepares for future developments.
See More
Analysis of Gladstone Commercial Dividend History
- Dividend Overview: Gladstone Commercial Corp recently declared a dividend of $0.125 per share, indicating a stable dividend policy that continues to provide shareholder returns despite market fluctuations.
- ETF Composition: Gladstone Commercial Corp constitutes 4.77% of the Invesco KBW Premium Yield Equity REIT ETF, highlighting its significance in yield-focused portfolios, even as the ETF trades down approximately 0.6% on the day.
- Preferred Stock Performance: In Thursday trading, Gladstone Commercial's 7.50% Series B Cumulative Redeemable Preferred Stock (GOODO) rose about 1.1%, indicating strong investor demand for preferred shares, while common shares (GOOD) fell by about 0.5%.
- Market Reaction Analysis: Despite the underperformance of common shares, the rise in preferred stock may reflect market confidence in the company's ability to maintain stable dividends, further enhancing its appeal among income-focused investors.
See More
Analysis of Invesco KBW Premium Yield REIT ETF
- Yield Advantage: The Invesco KBW Premium Yield REIT ETF currently holds over 30 REITs, with its top five holdings averaging yields exceeding the sector average of 4%, including Innovative Industrial Properties at 16.4%, providing substantial income for investors.
- Poor Market Performance: Despite the ETF's distribution yield exceeding 9%, its total return over the past year is -0.4%, with an average annual total return of only 4% since inception in 2010, significantly underperforming the S&P 500 and the overall REIT sector.
- Interest Rate Sensitivity: The REITs within this ETF are highly sensitive to interest rate changes, as higher rates increase borrowing costs, particularly for smaller REITs, which face even higher financing costs, putting pressure on their expansion plans and limiting market performance.
- Future Outlook: Should interest rates begin to decline, it could provide a significant tailwind for the Invesco KBW Premium Yield REIT ETF by lowering borrowing costs and enhancing asset values, potentially enabling it to outperform the market.
See More
