Gladstone Commercial Corporation (NASDAQ: GOOD ) is a net-lease real estate investment trust (REIT) with a focus on buying, owning and managing industrial and office properties. The company has shown consistent occupancy and a commitment to monthly dividend distributions. Over the last five An economics graduate with a passion for financial history; I apply my knowledge to markets in an effort to hopelessly predict trends and spot value. All opinions are my own and should not be taken seriously. Analyst's D ...

The facility, featuring advanced cold storage capabilities, was acquired through a third-party transaction. The acquisition was completed at a weighted average GAAP capitalization rate of 8.44%, demonstrating an attractive yield for Gladstone Commercial. The facility is fully leased to Three Sons Holding Inc., DBA American Meat Companies ("AMC"), a third-generation, family-owned business. Founded nearly 50 years ago, AMC has earned its reputation for quality and safety in the meat processing industry. With ...

Group 1: Stock Performance - Gladstone Commercial (GOOD) closed at $14.90, with a +1.15% movement compared to the previous day, trailing the S&P 500's gain of 1.77% [1] - The stock has dropped by 6.3% in the past month, underperforming the Finance sector's loss of 1.46% and the S&P 500's loss of 5.73% [1] Group 2: Earnings Projections - The upcoming EPS for Gladstone Commercial is projected at $0.34, indicating steadiness compared to the same quarter of the previous year [2] - Quarterly revenue is estimated at $37.49 million, reflecting a 4.96% increase from the year-ago period [2] - For the entire fiscal year, earnings are predicted at $1.41 per share and revenue at $151.13 million, showing changes of -0.7% and +1.17% respectively from the previous year [3] Group 3: Analyst Estimates and Rankings - Recent adjustments to analyst estimates for Gladstone Commercial are being monitored, as upward revisions indicate analysts' positivity towards the company's operations [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Gladstone Commercial at 4 (Sell) [6] - Over the past month, there has been a 2.77% decline in the Zacks Consensus EPS estimate [6] Group 4: Valuation Metrics - Gladstone Commercial has a Forward P/E ratio of 10.48, which is a discount compared to the industry average of 11.07 [7] - The company has a PEG ratio of 1.75, while the average PEG ratio for the REIT and Equity Trust - Other industry is 2.22 [7] Group 5: Industry Context - The REIT and Equity Trust - Other industry is part of the Finance sector and currently holds a Zacks Industry Rank of 140, placing it within the bottom 45% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Gladstone Commercial (GOOD) closed at $15.06 in the latest trading session, marking a +0.07% move from the prior day. This move outpaced the S&P 500's daily loss of 1.07%. Meanwhile, the Dow experienced a drop of 0.62%, and the technology-dominated Nasdaq saw a decrease of 1.71%.Shares of the real estate investment trust have depreciated by 7.16% over the course of the past month, underperforming the Finance sector's loss of 3.42% and the S&P 500's loss of 7.03%.The investment community will be paying close ...

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The net lease space presents value opportunities in underfollowed names, with Realty Income being a notable example [2] Group 2 - The article emphasizes the importance of defensive stocks with a medium- to long-term investment horizon [2]

Core Insights - Gladstone Commercial Corporation (NASDAQ: GOOD) reported revenue of $37.4 million, FFO per share of $0.35, and AFFO per share of $0.23, which fell short of consensus estimates [1] - Core FFO decreased from $0.38 in Q3 2024 to $0.35 in Q4 2024, primarily due to a settlement received at one property [1] Financial Performance - Revenue: $37.4 million compared to estimates of $38.6 million and $38.0 million [1] - FFO per share: $0.35 against estimates of $0.34 and $0.35 [1] - AFFO per share: $0.23 compared to estimates of $0.31 and $0.28 [1] - Core FFO for the quarter was $0.35 per share, down from $0.38 in Q3 2024 [1] Operational Metrics - Liquidity position increased by 57.1% year-over-year [3] - Occupancy levels remained strong at 98.7% [3] - 100% of rents were collected year-to-date [3]

Financial Data and Key Metrics Changes - FFO and core FFO per share for Q4 2024 were both $0.35, compared to $0.36 in Q4 2023, indicating a slight decrease [20] - For the full year 2024, FFO was $1.41 and core FFO was $1.42 per share, down from $1.46 and $1.47 per share in 2023 [20] - Total operating revenues for Q4 2024 were $37.4 million, up from $35.9 million in Q4 2023, while operating expenses decreased from $28.1 million to $25 million [21][22] - Overall leverage reduced from 46.1% of gross assets in 2023 to 44.1% in 2024 [24] Business Line Data and Key Metrics Changes - Same-store rents increased by 5% in Q4 2024 compared to Q4 2023, driven by higher straight-line rent rates and recovery revenue [21] - The industrial concentration in the portfolio increased from 60% to 63% during the year [25] Market Data and Key Metrics Changes - Industrial real estate continued to outperform despite challenges, with net absorption totaling 135 million square feet in 2024 [10] - Q4 2024 industrial vacancy rose by 150 basis points to 6.7%, the slowest pace of increase in two years [10] Company Strategy and Development Direction - The company aims to increase its industrial concentration to at least 70% in the near term while maintaining strict underwriting standards [13][14] - The focus remains on acquiring quality properties and managing a disciplined approach to capital deployment [15][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's ability to generate sustainable cash flow, with over 90% occupancy as of December 31, 2024 [16] - The company is well-positioned to capitalize on opportunities regardless of the economic environment, with over $98 million available via credit lines and cash on hand [15] Other Important Information - The company sold seven properties, increasing portfolio occupancy to 98.7% as of December 31, 2024 [12] - The common stock dividend is $0.30 per share per quarter, yielding approximately 7.5% [28] Q&A Session Summary Question: What are the leverage expectations? - Management aims to reduce leverage from 44.1% to the lower 40s, focusing on decreasing secured debt [36][37] Question: What is the market depth for office assets? - The office portfolio has a 7% vacancy rate, and sales will be opportunistic, with plans to sell four or five office assets this year [46][47] Question: What are the expectations for incentive fee waivers? - Management is working towards returning to higher incentive fees but does not have a specific timeline [51][54] Question: What is the leasing activity in Q4? - Leasing activity included both office and industrial properties, with positive rent trends observed [64][65] Question: What is the timing for held-for-sale assets? - One asset is expected to close by April 1, and another in the second quarter [74] Question: What are the cap rates for acquisitions versus sales? - Cap rates for acquisitions are around 7.5% to 8%, while sales are slightly higher due to the office nature of the assets [79] Question: Are there any impacts from tariffs? - No immediate impacts from tariffs have been observed, and potential reshoring may create more industrial opportunities [81] Question: What is the expected acquisition volume? - The company aims for a more normal acquisition volume of around $100 million per year [88]

Financial Performance - Gladstone Commercial reported quarterly funds from operations (FFO) of $0.35 per share, matching the Zacks Consensus Estimate, but down from $0.36 per share a year ago [1] - The company posted revenues of $37.38 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.20%, compared to $35.91 million in the same quarter last year [2] - Over the last four quarters, Gladstone Commercial has surpassed consensus FFO estimates two times and topped consensus revenue estimates two times [2][1] Market Performance - Since the beginning of the year, Gladstone Commercial shares have lost about 0.2%, while the S&P 500 has gained 4% [3] - The stock is currently rated Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Future Outlook - The current consensus FFO estimate for the coming quarter is $0.36 on revenues of $37.75 million, and for the current fiscal year, it is $1.45 on revenues of $152.29 million [7] - The outlook for the REIT and Equity Trust - Other industry is currently in the bottom 33% of Zacks industries, which may impact the stock's performance [8]

Financial Performance - Total operating revenue for Q4 2024 was $37,375,000, a decrease of 4.7% from $39,235,000 in Q3 2024[3] - Net income for Q4 2024 was $7,193,000, down 38.6% from $11,721,000 in Q3 2024[3] - Funds from operations (FFO) available to common stockholders and Non-controlling OP Unitholders - diluted for Q4 2024 was $15,286,000, a decrease of 5.6% from $16,190,000 in Q3 2024[3] - Total operating revenue for the year ended December 31, 2024, was $149,388,000, an increase of 1.2% from $147,584,000 in 2023[7] - Net income for the year ended December 31, 2024, was $24,040,000, a significant increase of 388.4% from $4,922,000 in 2023[7] - Funds from operations (FFO) available to common stockholders and Non-controlling OP Unitholders - diluted for the year ended December 31, 2024, was $59,665,000, an increase of 0.8% from $59,214,000 in 2023[7] - Net income available to common stockholders for the year ended December 31, 2024, was $11.2 million, or $0.27 per share, compared to a net loss of $(7.8) million, or $(0.19) per share for the year ended December 31, 2023[15] - FFO available to common stockholders for the year ended December 31, 2024, was $59.7 million, a 0.8% increase compared to $59.1 million for the year ended December 31, 2023, equating to $1.41 per share[14] - Core FFO available to common stockholders for the year ended December 31, 2024, was $60.2 million, a 0.5% increase compared to $59.9 million for the year ended December 31, 2023, equating to $1.42 per share[14] Asset Valuation - Real estate, before accumulated depreciation, was valued at $1,219,918,000 as of December 31, 2024, a decrease of 1.5% from $1,238,271,000 as of September 30, 2024[4] - Total assets as of December 31, 2024, were $1,094,348,000, a slight decrease of 0.2% from $1,096,315,000 as of September 30, 2024[4] - Total assets decreased by 3.5% to $1,094.3 million as of December 31, 2024, compared to $1,133.5 million as of December 31, 2023[8] Operational Performance - Square feet leased increased to 98.7% as of December 31, 2024, compared to 98.5% as of September 30, 2024[4] - The company collected 100% of 2024 base rent throughout the year, demonstrating strong rent collection performance[11] - The company acquired seven fully-occupied properties for $26.8 million at a weighted average cap rate of 10.99% during the fiscal year 2024[11] - The company sold seven non-core properties for $39.0 million as part of its capital recycling strategy, recognizing a capital gain of $10.3 million[11][17] - The company leased 1,798,984 square feet of previously vacant space during the year, with lease terms ranging from 0.7 years to 7.2 years[11] Capital Management - The company issued $75.0 million in senior unsecured notes at a fixed interest rate of 6.47% with a maturity date of December 18, 2029[11] - The company emphasizes the importance of its ability to raise additional capital and secure financing for operations and debt refinancing[24] Market Outlook and Risks - The company anticipates continued growth in same store rents, which have increased by approximately 2% annually in recent years[17] - Gladstone Commercial's forward-looking statements regarding income stability and portfolio growth are subject to risks and uncertainties[24] - Economic downturns and tenant performance are significant factors that may impact actual results compared to forecasts[24] - Competition affects efforts to renew existing leases or re-lease space, which could influence overall performance[24] - Changes in interest rates may significantly impact the company's financial outcomes[24] - The company has filed its Form 10-K for the fiscal year ended December 31, 2024, which includes detailed risk factors[24] - Gladstone Commercial does not undertake any obligation to update or revise forward-looking statements unless required by law[25]

Table of Contents For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-33097 ____________________________________________________________________ GLADSTONE COMMERCIAL CORPORATION (Exact name of registrant as specified in its charter) ____________________________________________________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. ...