Gladstone Commercial Corporation Reports Results for the First Quarter Ended March 31, 2026
Rhea-AI Summary
Gladstone Commercial (Nasdaq:GOOD) reported Q1 2026 results: Core FFO $17.0M ($0.35/share), down 4.7% vs prior quarter, and net income available to common $3.8M ($0.08/share), up 71.5% vs prior quarter. Collected 100% of Q1 and April cash rents.
Activity: sold land for $2.0M, leased or renewed 805,622 sq ft, repaid $1.5M mortgage, extended $7.8M mortgage maturity, and declared common distributions of $0.30 per share for April–June.
AI-generated analysis. Not financial advice.
Positive
- Net income available to common +71.5% to $3.8M ($0.08 per share)
- Collected 100% of cash rents for Q1 and April 2026
- Sold portion of land for $2.0M
- Leased or renewed 805,622 sq ft across five properties
- Extended maturity on $7.8M swapped-to-fixed mortgage
Negative
- None.
News Market Reaction – GOOD
On the day this news was published, GOOD declined 3.81%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
GOOD showed a slight -0.54% move pre-release with mixed peers: CTO and OLP were down, while AHH, SAFE, and GNL were up. Only GNL appeared in momentum scans, suggesting stock-specific rather than broad sector drivers.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 18 | Q4 & FY25 earnings | Positive | +5.0% | Q4 and FY2025 FFO growth with higher operating revenue and expanded credit capacity. |
| Nov 03 | Q3 2025 earnings | Positive | -6.1% | Core FFO and FFO growth with 100% rent collection and portfolio transactions. |
| Oct 30 | Q3 call details | Neutral | +1.2% | Announcement of Q3 2025 earnings call and webcast logistics for investors. |
| Aug 06 | Q2 2025 earnings | Positive | -0.2% | Q2 Core FFO growth, acquisitions, non-core sales, and maintained 100% rent collection. |
| Aug 04 | Q2 call details | Neutral | +1.8% | Announcement of Q2 2025 earnings call schedule and access information. |
Earnings and related updates have often produced modest moves, with both positive and negative reactions even when FFO trends were generally solid.
Over the past year, Gladstone Commercial’s earnings releases have highlighted consistent rent collection, steady Core FFO around $16–18M and $0.35 per share, and active capital recycling with acquisitions and non-core asset sales. The Q4 2025 release on Feb 18, 2026 showed FFO growth and drew a +4.98% reaction, while Q3 2025 earnings on Nov 3, 2025 saw Core FFO up but the stock fell 6.14%. Today’s Q1 2026 results continue the focus on rent collection, Core FFO stability, and portfolio optimization.
Historical Comparison
In the past year, GOOD’s earnings-related items produced an average move of 0.31%, with both positive and negative reactions despite generally stable Core FFO and high rent collection.
Earnings updates show Core FFO near $16–18M and about $0.35 per share, with recurring 100% rent collection and ongoing capital recycling via acquisitions and non-core asset sales.
Market Pulse Summary
This announcement details Q1 2026 results with total operating revenue of $41,909K, diluted Core FFO of $17,013K (or $0.35 per share), and high portfolio metrics, including 98.7% leased space and 100% cash rent collection. Compared with Q4 2025, Core FFO and revenue declined slightly while net income rose. Historically, Gladstone Commercial has reported similar Core FFO levels and steady dividends, so investors may focus on rent collection, occupancy, and capital recycling activity in upcoming quarters.
Key Terms
funds from operations financial
core ffo financial
non-gaap financial
asset retirement obligation financial
interest rate hedging instruments technical
AI-generated analysis. Not financial advice.
Please note that the limited information that follows in this press release is not adequate to make an informed investment judgment.
MCLEAN, VA / ACCESS Newswire / May 5, 2026 / Gladstone Commercial Corporation (Nasdaq:GOOD) ("Gladstone Commercial" or the "Company") today reported financial results for the first quarter ended March 31, 2026. A description of funds from operations, or FFO, and Core FFO, both non-GAAP (generally accepted accounting principles in the United States) financial measures, are located at the end of this press release. All per share references are to fully-diluted weighted average shares of common stock and Non-controlling OP Units, unless otherwise noted. For further detail, please also refer to both the quarterly financial supplement and the Company's Quarterly Report on Form 10-Q, which can be retrieved from the Investors section of our website at www.gladstonecommercial.com.
Summary Information (dollars in thousands, except share and per share data):
As of and for the three months ended | ||||||||||||||||||
March 31, 2026 | December 31, 2025 | $ Change | % Change | |||||||||||||||
Operating Data: | ||||||||||||||||||
Total operating revenue | $ | 41,909 | $ | 43,461 | $ | (1,552 | ) | (3.6 | )% | |||||||||
Total operating expenses | (25,243 | ) | (26,367 | ) | 1,124 | (4.3 | )% | |||||||||||
Other expense, net | (9,694 | ) | (11,712 | ) | 2,018 | (17.2 | )% | |||||||||||
Net income | $ | 6,972 | $ | 5,382 | $ | 1,590 | 29.5 | % | ||||||||||
Less: Dividends attributable to preferred stock | (3,042 | ) | (3,048 | ) | 6 | (0.2 | )% | |||||||||||
Less: Dividends attributable to senior common stock | (98 | ) | (102 | ) | 4 | (3.9 | )% | |||||||||||
Add: Gain on extinguishment of Series F preferred stock, net | 4 | 5 | (1 | ) | (20.0 | )% | ||||||||||||
Net income available to common stockholders and Non-controlling OP Unitholders | $ | 3,836 | $ | 2,237 | $ | 1,599 | 71.5 | % | ||||||||||
Add: Real estate depreciation and amortization | 14,796 | 15,482 | (686 | ) | (4.4 | )% | ||||||||||||
Less: Gain on sale of real estate, net | (1,783 | ) | - | (1,783 | ) | (100.0 | )% | |||||||||||
Funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 16,849 | $ | 17,719 | $ | (870 | ) | (4.9 | )% | |||||||||
Add: Convertible senior common distributions | 98 | 102 | (4 | ) | (3.9 | )% | ||||||||||||
Funds from operations available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 16,947 | $ | 17,821 | $ | (874 | ) | (4.9 | )% | |||||||||
Funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 16,849 | $ | 17,719 | $ | (870 | ) | (4.9 | )% | |||||||||
Add: Asset retirement obligation expense | 37 | 36 | 1 | 2.8 | % | |||||||||||||
Add: Realized loss on interest rate hedging instruments | 29 | - | 29 | 100.0 | % | |||||||||||||
Core funds from operations available to common stockholders and Non-controlling OP Unitholders - basic | $ | 16,915 | $ | 17,755 | $ | (840 | ) | (4.7 | )% | |||||||||
Add: Convertible senior common distributions | 98 | 102 | (4 | ) | (3.9 | )% | ||||||||||||
Core funds from operations available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 17,013 | $ | 17,857 | $ | (844 | ) | (4.7 | )% | |||||||||
Share and Per Share Data: | ||||||||||||||||||
Net income available to common stockholders and Non-controlling OP Unitholders - basic and diluted | $ | 0.08 | $ | 0.05 | $ | 0.03 | 60.0 | % | ||||||||||
FFO available to common stockholders and Non-controlling OP Unitholders - basic | $ | 0.35 | $ | 0.37 | $ | (0.02 | ) | (5.4 | )% | |||||||||
FFO available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 0.35 | $ | 0.37 | $ | (0.02 | ) | (5.4 | )% | |||||||||
Core FFO available to common stockholders and Non-controlling OP Unitholders - basic | $ | 0.35 | $ | 0.37 | $ | (0.02 | ) | (5.4 | )% | |||||||||
Core FFO available to common stockholders and Non-controlling OP Unitholders - diluted | $ | 0.35 | $ | 0.37 | $ | (0.02 | ) | (5.4 | )% | |||||||||
Weighted average shares of common stock and Non-controlling OP Units outstanding - basic | 48,446,467 | 48,442,596 | 3,871 | - | % | |||||||||||||
Weighted average shares of common stock and Non-controlling OP Units outstanding - diluted | 48,768,782 | 48,764,911 | 3,871 | - | % | |||||||||||||
Cash dividends declared per common share and Non-controlling OP Unit | $ | 0.30 | $ | 0.30 | $ | - | - | % | ||||||||||
Financial Position | ||||||||||||||||||
Real estate, before accumulated depreciation | $ | 1,404,695 | (1) | $ | 1,402,640 | (2) | $ | 2,055 | 0.1 | % | ||||||||
Total assets | $ | 1,230,988 | $ | 1,246,933 | $ | (15,945 | ) | (1.3 | )% | |||||||||
Mortgage notes payable, net, borrowings under revolver, borrowings under term loan, net, and senior unsecured notes, net | $ | 836,385 | $ | 843,466 | $ | (7,081 | ) | (0.8 | )% | |||||||||
Total equity and mezzanine equity | $ | 333,633 | $ | 341,933 | $ | (8,300 | ) | (2.4 | )% | |||||||||
Properties owned | 151 | (1) | 151 | (2) | - | - | % | |||||||||||
Square feet owned | 17,675,963 | (1) | 17,675,963 | (2) | - | - | % | |||||||||||
Square feet leased | 98.7 | % | 99.1 | % | (0.4 | )% | (0.4 | )% | ||||||||||
(1) Includes one property classified as held for sale of
(2) Includes one property and a portion of a land parcel classified as held for sale of
First Quarter Activity:
Collected
100% of cash rents: Collected100% of cash rents due during January, February, and March;Sold properties: Sold a portion of a land parcel for
$2.0 million ;Completed leasing activity: Leased or renewed 805,622 square feet with remaining lease terms ranging from 0.7 years to 6.0 years at five of our properties;
Repaid debt: Repaid
$1.5 million in fixed rate mortgage debt at a weighted average interest rate of6.58% ;Extended mortgage debt maturity date: Extended the maturity date of
$7.8 million swapped to fixed rate mortgage debt with an interest rate of3.78% for an additional year; andPaid distributions: Paid monthly cash distributions for the quarter totaling
$0.30 per share on our common stock and Non-controlling OP Units,$0.414063 per share on our Series E Preferred Stock,$0.375 per share on our Series F Preferred Stock,$0.375 per share on our Series G Preferred Stock, and$0.2625 per share on our senior common stock.
First Quarter 2026 Results: Core FFO available to common shareholders and Non-controlling OP Unitholders for the three months ended March 31, 2026 was
Net income available to common stockholders and Non-controlling OP Unitholders for the three months ended March 31, 2026 was
Subsequent to the end of the quarter:
Collected
100% of April cash rents: Collected100% of cash rents due in April;Declared distributions: Declared monthly cash distributions for April, May, and June 2026, totaling
$0.30 per share on our common stock and Non-controlling OP Units,$0.414063 per share on our Series E Preferred Stock,$0.375 per share on our Series F Preferred Stock,$0.375 per share on our Series G Preferred Stock, and$0.2625 per share on our senior common stock.
Comments from Gladstone Commercial's Chief Executive Officer and President, Buzz Cooper: "Our financial results reflect consistent performance and stabilized revenues from our tremendous same store property occupancy, rent collection and growth, accretive real estate investments, and our ability to renew tenants. We plan to continue our capital recycling program, whereby we sell non-core assets and use the proceeds to de-lever our portfolio, as well as to acquire properties in our target growth markets. We will continue to opportunistically sell non-core assets and redeploy the proceeds into stronger target growth markets with a focus on industrial investment opportunities. While we expect to face challenges due to inflation, with a corresponding increase in interest rates, and various geo-political and economic issues, we feel strongly about the depth of our tenant credit underwriting. We have collected
Conference Call: Gladstone Commercial will hold a conference call on Wednesday, May 6, 2026, at 8:30 a.m. Eastern Time to discuss its earnings results. Please call (877) 407-9045 to enter the conference call. An operator will monitor the call and set a queue for questions. A conference call replay will be available beginning one hour after the call and will be accessible through May 13, 2026. To hear the replay, please dial (877) 660-6853 and use playback conference number 13759086. The live audio broadcast of the Company's quarterly conference call will also be available on the investors section of our website, www.gladstonecommercial.com.
About Gladstone Commercial: 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. Further information can be found at www.gladstonecommercial.com.
About the Gladstone Companies: Information on the business activities of the Gladstone family of funds can be found at www.gladstonecompanies.com.
Investor Relations: For Investor Relations inquiries related to any of the monthly distribution-paying Gladstone family of funds, please visit www.gladstonecompanies.com.
Non-GAAP Financial Measures:
FFO: The National Association of Real Estate Investment Trusts ("NAREIT") developed FFO as a relative non-GAAP supplemental measure of operating performance of an equity REIT to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO, as defined by NAREIT, is net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property and impairment losses on property, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. FFO does not represent cash flows from operating activities determined in accordance with GAAP and should not be considered an alternative to net income as an indication of its performance or to cash flow from operations as a measure of liquidity or ability to make distributions. The Company believes that FFO per share provides investors with an additional context for evaluating its financial performance and as a supplemental measure to compare it to other REITs; however, comparisons of its FFO to the FFO of other REITs may not necessarily be meaningful due to potential differences in the application of the NAREIT definition used by such other REITs.
Core FFO: Core FFO is FFO adjusted for certain items that are not indicative of the results provided by the Company's operating portfolio and affect the comparability of the Company's period-over-period performance. These items include the adjustment for acquisition related expenses, gains or losses from early extinguishment of debt and any other non-recurring expense adjustments. Although the Company's calculation of Core FFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs, the Company believes it is a meaningful supplemental measure of its operating performance. Accordingly, Core FFO should be considered a supplement to net income computed in accordance with GAAP as a measure of our performance.
The Company's presentation of FFO, as defined by NAREIT, or presentation of Core FFO, does not represent cash flows from operating activities determined in accordance with GAAP and should not be considered an alternative to net income as an indication of its performance or to cash flow from operations as a measure of liquidity or ability to make distributions.
The statements in this press release regarding the forecasted stability of Gladstone Commercial's income, its ability, plans or prospects to re-lease its unoccupied properties, and grow its portfolio are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on Gladstone Commercial's current plans that are believed to be reasonable as of the date of this press release. Factors that may cause actual results to differ materially from these forward-looking statements include, but are not limited to, Gladstone Commercial's ability to raise additional capital; availability and terms of capital and financing, both to fund its operations and to refinance its indebtedness as it matures; downturns in the current economic environment; the performance of its tenants; the impact of competition on its efforts to renew existing leases or re-lease space; and significant changes in interest rates. Additional factors that could cause actual results to differ materially from those stated or implied by its forward-looking statements are disclosed under the caption "Risk Factors" of its Form 10-K for the fiscal year ended December 31, 2025, as filed with the SEC on February 18, 2026, and other reports filed with the SEC. Gladstone Commercial cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Gladstone Commercial undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
CONTACT:
Gladstone Commercial Corporation
(703) 287-5893
SOURCE: Gladstone Commercial Corporation
View the original press release on ACCESS Newswire