Gladstone Commercial Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2025

Rhea-AI Summary

Gladstone Commercial (Nasdaq:GOOD) reported Q4 and full-year 2025 results on February 18, 2026. Q4 FFO was $17.8 million ($0.37/share), up 8.9% QoQ; FY2025 FFO was $64.9 million ($1.38/share), up 8.8% YoY. Total operating revenue for FY2025 was $161.3 million, a 8.0% increase versus 2024.

Key 2025 activity: 19 property acquisitions for $206.7 million, $85.0 million senior notes issued, $61.0 million net ATM proceeds, revolver and term loan upsized to $600.0 million total capacity.

Positive

• FFO +8.8% YoY to $64.9M for FY2025
• Acquisitions $206.7M (19 properties, 1.57M sq ft)
• Revolver expanded to $200M and term loans to $400M (total $600M)
• 100% rent collection for 2025 base rent

Negative

• Net income -40.9% YoY to $6.6M for FY2025
• Other expense +80.4% YoY to $40.7M for FY2025
• Interest-bearing debt +21.6% YoY to $843.5M

Key Figures

Q4 2025 operating revenue: $43,461K Q4 2025 net income: $5,382K Q4 2025 Core FFO diluted: $17,857K / $0.37 +5 more

8 metrics

Q4 2025 operating revenue $43,461K Three months ended December 31, 2025

Q4 2025 net income $5,382K Up from $4,137K in Q3 2025

Q4 2025 Core FFO diluted $17,857K / $0.37 Core FFO, three months ended December 31, 2025

FY 2025 Core FFO diluted $65,669K / $1.40 Year ended December 31, 2025

Real estate gross $1,402,640K Real estate before accumulated depreciation at December 31, 2025

Portfolio occupancy 99.1% Square feet leased at December 31, 2025

2025 acquisitions $206.7M / 19 properties 1,568,107 sq ft acquired at 8.88% cap rate in 2025

Total debt $843,466K Mortgage, revolver, term loan and senior unsecured notes at December 31, 2025

Market Reality Check

Price: $11.72 Vol: Volume 640,515 is 1.33x t...

normal vol

$11.72 Last Close

Volume Volume 640,515 is 1.33x the 20-day average of 480,015, indicating elevated interest into earnings. normal

Technical Shares trade below the 200-day MA, at $11.72 vs $12.52, despite stronger Q4/FY 2025 FFO metrics.

Peers on Argus

Among key REIT peers, SAFE (+1.77%) and CTO/OLP were higher while AHH and GNL we...

2 Up 1 Down

Among key REIT peers, SAFE (+1.77%) and CTO/OLP were higher while AHH and GNL weakened, suggesting today’s modest 0.43% move in GOOD is more stock-specific than a broad sector rotation.

Previous Earnings Reports

5 past events · Latest: Nov 03 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 03	Q3 2025 earnings	Positive	-6.1%	Core FFO and FFO grew with full rent collection and acquisitions.
Oct 30	Q3 call details	Neutral	+1.2%	Announced logistics for the Q3 2025 earnings call and webcast.
Aug 06	Q2 2025 earnings	Positive	-0.2%	Higher Core FFO with acquisitions, disposals and near-full occupancy.
Aug 04	Q2 call details	Neutral	+1.8%	Provided schedule and access info for the Q2 2025 earnings call.
May 09	Q1 2025 earnings	Positive	+2.2%	Revenue and AFFO beats with high occupancy and 100% rent collection.

Pattern Detected

Earnings releases have generally shown solid Core FFO and occupancy, but immediate price reactions have been mixed, with some positive reports met by flat to negative moves.

Recent Company History

Over the past few quarters, Gladstone Commercial has consistently highlighted strong occupancy (near 99%), full rent collection and growing industrial exposure. Prior earnings reports showed Core FFO around the mid-$16M range with incremental growth, aided by acquisitions and capital recycling. Q1 2025 results included revenue and AFFO beats, while Q2 and Q3 emphasized industrial acquisitions and strategic disposals. Today’s Q4/FY 2025 release extends this narrative with higher revenues, increased Core FFO, additional industrial assets and continued rent collection strength.

Historical Comparison

-0.3% avg move · Past earnings headlines saw an average move of -0.25%. Today’s roughly 0.43% gain is modestly strong...

earnings

-0.3%

Average Historical Move earnings

Past earnings headlines saw an average move of -0.25%. Today’s roughly 0.43% gain is modestly stronger than the usual post-earnings reaction.

Across Q1–Q3 2025, Gladstone reported steady Core FFO growth, 100% rent collection and rising industrial exposure via acquisitions, while recycling non-core assets. The current Q4/FY 2025 results continue this pattern with higher revenues, expanded real estate assets, and sustained high occupancy, reinforcing the multi-quarter trend of incremental cash flow and portfolio scale increases.

Market Pulse Summary

This announcement details Q4 and full-year 2025 results, highlighting higher operating revenue, grow...

Analysis

This announcement details Q4 and full-year 2025 results, highlighting higher operating revenue, growing Core FFO and near-full occupancy of 99.1%. Management emphasizes capital recycling, industrial acquisitions totaling $206.7M, and consistent rent collection. Historically, earnings updates have produced relatively modest price moves. Investors may focus on leverage levels, interest expense trends, and the sustainability of the $1.20 annual common distribution when assessing the implications of these results.

Key Terms

funds from operations, ffo, core ffo, non-gaap, +4 more

8 terms

funds from operations financial

"A description of funds from operations, or FFO, FFO as adjusted for comparability..."

Funds from operations (FFO) measures the cash a real estate-focused company generates from its core property operations by adjusting net income to add back non-cash expenses like building depreciation and removing one-time gains or losses from property sales. Investors use FFO like a household’s monthly take-home pay—it's a clearer view of ongoing cash available to pay dividends, maintain properties and fund growth than raw accounting profit.

ffo financial

"A description of funds from operations, or FFO, FFO as adjusted for comparability..."

Funds from operations (FFO) is a performance metric used mainly for real estate companies that measures the cash generated by their core rental and property-management activities, while removing accounting items such as building depreciation and one-time gains or losses from property sales. Investors rely on FFO to assess a real estate firm's ability to pay and sustain dividends and fund growth—similar to checking how much actual rent a landlord collects each month rather than paper profits.

core ffo financial

"and Core FFO, all three non-GAAP (generally accepted accounting principles..."

Core FFO (Core Funds From Operations) is a real estate industry measure of a property owner's recurring cash earnings calculated by starting with net income and removing non-cash accounting items and one-time gains or losses so the number reflects ongoing operating performance. Investors use it like a trimmed-down paycheck: it helps compare cash-generating ability across periods and companies by focusing on the stable, repeatable income rather than temporary or accounting-driven swings.

non-gaap financial

"Core FFO, all three non-GAAP (generally accepted accounting principles in the United States)..."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

atm program financial

"Issued common stock under ATM Program: Issued 4.4 million shares of common stock..."

An ATM program is a plan or arrangement that allows a company to sell its shares directly to investors over time, often through automated systems like online platforms. It provides a flexible way for companies to raise money gradually without needing a full public offering each time. For investors, it can offer easier access to buying or selling shares and can help companies manage their fundraising more efficiently.

cap rate financial

"for $206.7 million, at a weighted average cap rate of 8.88%;"

The cap rate is a way to estimate how much money a real estate investment might generate relative to its purchase price. Think of it as a measure of the property's annual income divided by its value, helping investors compare different properties quickly. A higher cap rate generally indicates a potentially higher return but may also come with more risk.

credit facility financial

"Amended, extended, and upsized credit facility: Increased our revolver from $155.0 million..."

A credit facility is a flexible loan arrangement that allows a borrower to access funds up to a set limit whenever needed, similar to a company having an overdraft option on a bank account. It matters to investors because it indicates how easily a business can secure cash when required, affecting its ability to manage expenses, invest, or respond to financial challenges.

senior unsecured notes financial

"Issued senior unsecured notes: Issued $85.0 million in senior unsecured notes in a private placement..."

Senior unsecured notes are a type of loan a company borrows from investors, promising to pay back with interest. They are called "unsecured" because they aren’t backed by specific assets like buildings or equipment, but "senior" because they are paid back before other debts if the company gets into trouble. Investors see them as a relatively safer way for companies to raise money.

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 / February 18, 2026 / Gladstone Commercial Corporation (Nasdaq:GOOD) ("Gladstone Commercial" or the "Company") today reported financial results for the fourth quarter and year ended December 31, 2025. A description of funds from operations, or FFO, FFO as adjusted for comparability, and Core FFO, all three 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 Annual Report on Form 10-K, which can be found on the Investors section of our website at www.gladstonecommercial.com.

Summary Information (dollars in thousands, except per share data):

		As of and for the three months ended
		December 31, 2025					September 30, 2025					$ Change				% Change
Operating Data:
Total operating revenue		$	43,461				$	40,841				$	2,620				6.4	%
Total operating expenses			(26,367	)				(26,021					(346	)			1.3	%
Other expense, net			(11,712	)				(10,683	)	(2)			(1,029	)			9.6	%
Net income		$	5,382				$	4,137				$	1,245				30.1	%
Less: Dividends attributable to preferred stock			(3,048	)				(3,058	)				10				(0.3	)%
Less: Dividends attributable to senior common stock			(102	)				(102	)				-				-	%
Add: Gain on extinguishment of Series F preferred stock, net			5					6					(1	)			(16.7	)%
Net income available to common stockholders and Non-controlling OP Unitholders		$	2,237				$	983				$	1,254				127.6	%
Add: Real estate depreciation and amortization			15,482					15,271					211				1.4	%
Add: Loss on sale of real estate, net			-					10					(10	)			(100.0	)%
Funds from operations available to common stockholders and Non-controlling OP Unitholders - basic		$	17,719				$	16,264				$	1,455				8.9	%
Add: Convertible senior common distributions			102					102					-				-	%
Funds from operations available to common stockholders and Non-controlling OP Unitholders - diluted		$	17,821				$	16,366				$	1,455				8.9	%
Funds from operations available to common stockholders and Non-controlling OP Unitholders - basic		$	17,719				$	16,264				$	1,455				8.9	%
Add: Asset retirement obligation expense			36					34					2				5.9	%
Core funds from operations available to common stockholders and Non-controlling OP Unitholders - basic		$	17,755				$	16,298				$	1,457				8.9	%
Add: Convertible senior common distributions			102					102					-				-	%
Core funds from operations available to common stockholders and Non-controlling OP Unitholders - diluted		$	17,857				$	16,400				$	1,457				8.9	%
Share and Per Share Data:
Net income available to common stockholders and Non-controlling OP Unitholders - basic and diluted			0.05					0.02					0.03				150.0	%
FFO available to common stockholders and Non-controlling OP Unitholders - basic			0.37					0.35					0.02				5.7	%
FFO available to common stockholders and Non-controlling OP Unitholders - diluted			0.37					0.35					0.02				5.7	%
Core FFO available to common stockholders and Non-controlling OP Unitholders - basic			0.37					0.35					0.02				5.7	%
Core FFO available to common stockholders and Non-controlling OP Unitholders - diluted			0.37					0.35					0.02				5.7	%
Weighted average shares of common stock and Non-controlling OP Units outstanding - basic			48,442,596					46,917,160					1,525,436				3.3	%
Weighted average shares of common stock and Non-controlling OP Units outstanding - diluted			48,764,911					47,245,719					1,519,192				3.2	%
Cash dividends declared per common share and Non-controlling OP Unit		$	0.30				$	0.30				$	-				-	%
Financial Position
Real estate, before accumulated depreciation		$	1,402,640		(1)		$	1,400,357				$	2,283				0.2	%
Total assets		$	1,246,933				$	1,265,003				$	(18,070	)			(1.4	)%
Mortgage notes payable, net, borrowings under revolver, borrowings under term loan, net, and senior unsecured notes, net		$	843,466				$	843,285				$	181				-	%
Total equity and mezzanine equity		$	341,933				$	354,999				$	(13,066	)			(3.7	)%
Properties owned			151		(1)			151					-				-	%
Square feet owned			17,675,963		(1)			17,675,963					-				-	%
Square feet leased			99.1	%				99.1	%				-	%			-	%

(1) Includes one property and a portion of a land parcel classified as held for sale of $12.2 million and 161,458 square feet, in the aggregate.
(2) Includes a $0.01 million loss on sale, net, from the sale of one property during the three months ended September 30, 2025.

		As of and for the year ended
		December 31, 2025					December 31, 2024					$ Change				% Change
Operating Data:
Total operating revenue		$	161,336				$	149,388				$	11,948				8.0	%
Total operating expenses			(101,389	)	(1)			(102,808	)	(4)			1,419				(1.4	)%
Other expense, net			(40,655	)	(2)			(22,540	)	(5)			(18,115	)			80.4	%
Net income		$	19,292				$	24,040				$	(4,748	)			(19.8	)%
Less: Dividends attributable to preferred stock			(12,299	)				(12,440	)				141				(1.1	)%
Less: Dividends attributable to senior common stock			(406	)				(420	)				14				(3.3	)%
Add/Less: Gain (loss) on extinguishment of Series F preferred stock			10					(14	)				24				(171.4	)%
Net income available to common stockholders and Non-controlling OP Unitholders		$	6,597				$	11,166				$	(4,569	)			(40.9	)%
Add: Real estate depreciation and amortization			58,245					55,786					2,459				4.4	%
Add: Impairment charge			9					6,822					(6,813	)			(99.9	)%
Less: Gain on sale of real estate, net			(367	)				(14,229	)				13,862				(97.4	)%
Less: Gain on debt extinguishment, net			-					(300	)				300				(100.0	)%
Funds from operations available to common stockholders and Non-controlling OP Unitholders - basic		$	64,484				$	59,245				$	5,239				8.8	%
Add: Convertible senior common distributions			406					420					(14	)			(3.3	)%
Funds from operations available to common stockholders and Non-controlling OP Unitholders - diluted		$	64,890				$	59,665				$	5,225				8.8	%
Funds from operations available to common stockholders and Non-controlling OP Unitholders - basic		$	64,484				$	59,245				$	5,239				8.8	%
Add: Write off shelf registration statement costs and prepaid ATM costs			-					183					(183	)			(100.0	)%
Add: Write off prepaid offering costs			305					-					305				100.0	%
Add: Asset retirement obligation expense			138					133					5				3.8	%
Add: Bad debt write off			-					64					(64	)			(100.0	)%
Add: Closing costs on sale			336					-					336				100.0	%
Add: Realized loss on interest rate hedging instruments			-					132					(132	)			(100.0	)%
Core funds from operations available to common stockholders and Non-controlling OP Unitholders - basic		$	65,263				$	59,757				$	5,506				9.2	%
Add: Convertible senior common distributions			406					420					(14	)			(3.3	)%
Core funds from operations available to common stockholders and Non-controlling OP Unitholders - diluted		$	65,669				$	60,177				$	5,492				9.1	%
Share and Per Share Data:
Net income available to common stockholders and Non-controlling OP Unitholders - basic & diluted			0.14					0.27					(0.13	)			(48.1	)%
FFO available to common stockholders and Non-controlling OP Unitholders - basic			1.38					1.41					(0.03	)			(2.1	)%
FFO available to common stockholders and Non-controlling OP Unitholders - diluted			1.38					1.41					(0.03	)			(2.1	)%
Core FFO available to common stockholders and Non-controlling OP Unitholders - basic			1.40					1.43					(0.03	)			(2.1	)%
Core FFO available to common stockholders and Non-controlling OP Unitholders - diluted			1.40					1.42					(0.02	)			(1.4	)%
Weighted average shares of common stock and Non-controlling OP Units outstanding - basic			46,577,706					41,923,423					4,654,283				11.1	%
Weighted average shares of common stock and Non-controlling OP Units outstanding - diluted			46,900,021					42,253,879					4,646,142				11.0	%
Cash dividends declared per common share and Non-controlling OP Unit		$	1.20				$	1.20				$	-				-	%
Financial Position
Real estate, before accumulated depreciation		$	1,402,640		(3)		$	1,219,918		(6)		$	182,722				15.0	%
Total assets		$	1,246,933				$	1,094,348				$	152,585				13.9	%
Mortgage notes payable, net, borrowings under revolver, borrowings under term loan, net, and senior unsecured notes, net		$	843,466				$	693,385				$	150,081				21.6	%
Total equity and mezzanine equity		$	341,933				$	341,342				$	591				0.2	%
Properties owned			151		(3)			135		(6)			16				11.9	%
Square feet owned			17,675,963		(3)			16,899,887		(6)			776,076				4.6	%
Square feet leased			99.1	%				98.7	%				0.4	%			0.4	%

(1) Includes a $0.01 million impairment charge recognized on one property during the year ended December 31, 2025.
(2) Includes a $0.4 million gain on sale, net, from two property sales during the year ended December 31, 2025.
(3) Includes one property and a portion of a land parcel classified as held for sale of $12.2 million and 161,458 square feet, in the aggregate.
(4) Includes a $6.8 million impairment charge recognized on three properties during the year ended December 31, 2024.
(5) Includes a $14.2 million gain on sale, net, from seven property sales and a selling profit from sales-type leases, and a $0.3 million gain on debt extinguishment, net, during the year ended December 31, 2024.
(6) Includes two properties classified as held for sale of $8.1 million and 736,031 square feet.

Highlights of Fiscal Year 2025:

• Acquired properties: Purchased 19 fully-occupied properties, with an aggregate of 1,568,107 square feet of rental space, for $206.7 million, at a weighted average cap rate of 8.88%;

• Sold properties: Sold two non-core properties as part of our capital recycling strategy for an aggregate of $8.0 million and completed the sale transaction on one non-core industrial property for $18.5 million;

• Collected 100% of 2025 base rent: Collected 100% of 2025 base rental charges owed to us throughout the year;

• Issued common stock under ATM Program: Issued 4.4 million shares of common stock for net proceeds of $61.0 million;

• Issued Series F Preferred Stock: Issued 15,700 shares of our 6.00% Series F Preferred Stock for net proceeds of $0.4 million;

• Amended, extended, and upsized credit facility: Increased our revolver from $155.0 million to $200.0 million and increased our aggregate outstanding term loan component from $350.0 million to $400.0 million. The revolver maturity was extended to October 2029 and Term Loan A and Term Loan B components maturity were extended to October 2029 and February 2030, respectively. In total, the credit facility increased to $600.0 million;

• Issued senior unsecured notes: Issued $85.0 million in senior unsecured notes in a private placement at a fixed interest rate of 5.99% and a maturity date of December 15, 2030;

• Repaid debt: Repaid $3.1 million in fixed rate mortgage debt, with a weighted average interest rate of 4.59%, with cash on hand and borrowings from our line of credit. Also repaid $7.2 million in variable rate mortgage debt, with a weighted average interest rate of SOFR + 2.25%, with cash on hand and borrowings from our line of credit;

• Leased vacant space: Leased 305,589 square feet of previously vacant space with lease terms ranging from 5.3 years to 11.7 years at seven of our properties;

• Renewed leases: Renewed 884,327 square feet with remaining lease terms ranging from 0.7 years to 11.3 years at 11 of our properties; and

• Paid distributions: Paid monthly cash distributions for the year totaling $1.20 per share on our common stock and Non-controlling OP Units, $1.656252 per share on our Series E Preferred Stock, $1.50 per share on our Series F Preferred Stock, $1.50 per share on our Series G Preferred Stock, and $1.05 per share on our senior common stock.

Fourth Quarter 2025 Results: FFO available to common shareholders and Non-controlling OP Unitholders for the quarter ended December 31, 2025, was $17.8 million, an 8.9% increase when compared to the quarter ended September 30, 2025, equaling $0.37 per share. Core FFO available to common shareholders and Non-controlling OP Unitholders for the quarter ended December 31, 2025, was $17.9 million, an 8.9% increase when compared to the quarter ended September 30, 2025, equaling $0.37 per share. Core FFO increased primarily due to a full quarter of rental revenue from Q3 2025 acquisitions, a lease termination fee recognized, and proceeds from an easement settlement, partially offset by a higher net incentive fee and higher interest expense associated with writing off deferred financing fees as part of the credit facility recast and interest expense from the new private placement.

Fiscal Year 2025 Results: FFO available to common stockholders and Non-controlling OP Unitholders for the year ended December 31, 2025, was $64.9 million, an 8.8% increase when compared to the year ended December 31, 2024, equaling $1.38 per share. Core FFO available to common stockholders and Non-controlling OP Unitholders for the year ended December 31, 2025, was $65.7 million, a 9.1% increase when compared to the year ended December 31, 2024, equaling $1.40 per share. Core FFO increased primarily due to leasing activity during the year with significant increases in rental revenue from 2025 acquisitions, a lower net incentive fee, and more interest revenue earned on our sales-type lease. This was partially offset by higher property operating expenses due to general cost increases and increased repair expenses, a higher base management fee, and higher interest expense associated with writing off deferred financing fees as part of the credit facility recast and interest expense from a full year of the 2024 private placement.

Net income available to common stockholders and Non-controlling OP Unitholders for the three months and year ended December 31, 2025 was $2.2 million and $6.6 million, or $0.05 and $0.14 per share, respectively, compared to net income available to common stockholders for the three months ended September 30, 2025 and year ended December 31, 2024 of $1.0 million and $11.2 million, or $0.02 and $0.27 per share, respectively. A reconciliation of Core FFO to net income for the three months ended December 31, 2025 and September 30, 2025 and the years ended December 31, 2025 and 2024, which we believe is the most directly comparable GAAP measure to Core FFO, and a computation of basic and diluted Core FFO per weighted average share of common stock and Non-controlling OP Unit and basic and diluted net income per weighted average share of common stock and Non-controlling OP Unit is set forth in the Summary Information table above.

Subsequent to the end of the quarter:

• Sold properties: Sold a portion of a land parcel for $2.0 million; and

• Declared distributions: Declared monthly cash distributions for January, February, and March 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 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 made during 2025 and 2024, and our ability to renew tenants. We believe we had an excellent 2025 by investing $206.7 million in 19 assets, all industrial, in our target markets at accretive cap rates. We have continued our capital recycling program, whereby we have sold non-core assets and used the proceeds to acquire properties in our target growth markets. We successfully exited two non-core assets during 2025, recognizing a capital gain of $0.4 million, and we have additional non-core assets we anticipate selling over the next one to two years that we believe will result in capital gains. 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 100% of 2025 cash rents. We anticipate our tenants will successfully navigate the current economic climate and will be able to continue operating successfully when economic normalcy returns fully. Despite economic uncertainty, during 2025, we were able to lease nearly 0.3 million vacant square feet with five tenants and renew 0.9 million square feet with ten tenants. We are actively marketing our remaining vacant space and currently anticipate positive outcomes. We expect to continue to have access to the debt and equity markets, as necessary, for added liquidity. We believe our same store rents, which have increased by approximately 2% or greater annually in recent years, should continue to rise as we grow, and we will continue to primarily focus on investing in our target markets, with an emphasis on industrial properties and actively managing our portfolio."

Conference Call: Gladstone Commercial will hold a conference call on Thursday, February 19, 2026, at 8:30 a.m. Eastern Time to discuss its earnings results. Please call (877) 407-9045 (or (201) 389-0934) 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 February 26, 2026. To hear the replay, please dial (877) 660-6853 (or (201) 612-7415) and use playback conference number 13757328. 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. Including payments through January 2026, Gladstone Commercial has paid 253 consecutive monthly cash distributions on its common stock. Prior to paying distributions on a monthly basis, Gladstone Commercial paid five consecutive quarterly cash distributions. Gladstone Commercial has never skipped or deferred a distribution since its inception in 2003. Further information can be found at www.gladstonecommercial.com.

About the Gladstone Companies: Information on the business activities of all 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 in order 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 and unit 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.

FFO as adjusted for comparability: FFO as adjusted for comparability 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 non-recurring expense adjustments related to the write off of offering costs pertaining to redeemed securities. Although the Company's calculation of FFO as adjusted for comparability 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, FFO as adjusted for comparability should be considered a supplement to net income computed in accordance with GAAP as a measure of our performance.

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, FFO as adjusted for comparability, 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. 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

FAQ

What were Gladstone Commercial (GOOD) Q4 2025 FFO and per-share results?

FFO for Q4 2025 was $17.8 million, or $0.37 per share. According to the company, FFO rose 8.9% versus Q3 2025 driven by recent acquisitions, a lease termination fee, and an easement settlement, partially offset by higher interest and incentive fees.

How did Gladstone Commercial (GOOD) perform for full-year 2025 versus 2024?

FY2025 FFO was $64.9 million, up 8.8% YoY; Core FFO was $65.7 million. According to the company, increases were driven by 2025 leasing and acquisitions, offset by higher operating expenses and financing costs.

What acquisitions and dispositions did Gladstone Commercial (GOOD) report in 2025?

Gladstone acquired 19 properties for $206.7 million (1.57M sq ft) and sold three non-core properties. According to the company, acquisitions were fully occupied at a weighted average cap rate of 8.88% and dispositions were part of capital recycling.

What debt and liquidity changes did Gladstone Commercial (GOOD) announce in 2025?

Total credit facility capacity increased to $600.0 million and senior unsecured notes of $85.0 million were issued. According to the company, revolver was increased to $200.0 million and term loans to $400.0 million with extended maturities.

Will Gladstone Commercial (GOOD) continue distributions after Q4 2025?

The company declared monthly cash distributions and paid $1.20 per share for 2025. According to the company, monthly distributions totaled $1.20 per common share for the year and subsequent monthly distributions were declared after quarter end.