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Gladstone Commercial (GOOD) Q1 2026 Core FFO edges down as rent stays 100% collected

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(High)
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8-K

Rhea-AI Filing Summary

Gladstone Commercial Corporation reported first quarter 2026 results showing lower revenue but higher earnings for common holders. Total operating revenue was $41,909 thousand, down 3.6% from the prior quarter, while net income rose to $6,972 thousand, a 29.5% increase.

Core FFO available to common stockholders and Non-controlling OP Unitholders was $17,013 thousand, down 4.7%, equaling $0.35 per diluted share, compared with $0.37. The company collected 100% of cash rents in the quarter and in April, maintained 98.7% leased occupancy, modestly reduced debt, and paid quarterly cash distributions of $0.30 per common share and OP Unit.

Positive

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Negative

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Insights

Revenue eased and Core FFO dipped slightly, but rent collection and occupancy remained very strong.

Gladstone Commercial posted Q1 2026 operating revenue of $41,909 thousand, down 3.6% from Q4 2025, while net income available to common holders rose to $3,836 thousand, or $0.08 per share.

Core FFO, a key REIT cash-flow proxy, was $17,013 thousand, or $0.35 per diluted share, a 4.7% decline from $0.37. Management attributes this mainly to non-recurring lease termination and easement items that benefited the prior quarter.

The company reports 100% cash rent collection for Q1 and April and 98.7% leased occupancy, along with modest debt repayment and maintained common distributions of $0.30 per share for the quarter. Subsequent filings may provide further detail on portfolio recycling and new investments mentioned by management.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Total operating revenue $41,909 thousand Three months ended March 31, 2026; down 3.6% vs. Q4 2025
Net income $6,972 thousand Three months ended March 31, 2026; up 29.5% vs. Q4 2025
Net income per share $0.08 per basic and diluted share Available to common stockholders and OP Unitholders, Q1 2026
Core FFO (diluted) $17,013 thousand Three months ended March 31, 2026; down 4.7% vs. prior quarter
Core FFO per share (diluted) $0.35 per share Q1 2026 vs. $0.37 in quarter ended December 31, 2025
Common dividends $0.30 per share Cash dividends declared per common share and OP Unit in Q1 2026
Leased occupancy 98.7% Square feet leased at March 31, 2026
Total assets $1,230,988 thousand Balance sheet as of March 31, 2026
Funds from operations financial
"A description of funds from operations, or FFO, and Core FFO, both non-GAAP..."
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.
Core FFO financial
"Core FFO available to common shareholders and Non-controlling OP Unitholders..."
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
"FFO, and Core FFO, both non-GAAP (generally accepted accounting principles in the United States) financial measures..."
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.
National Association of Real Estate Investment Trusts financial
"The National Association of Real Estate Investment Trusts (“NAREIT”) developed FFO as a relative non-GAAP supplemental measure..."
A national association of real estate investment trusts is an industry trade group that represents and supports companies that own and operate income-producing real estate through publicly traded trusts. It works like a chamber of commerce for those firms—lobbying government, producing research and standard practices, and promoting transparency—which matters to investors because its actions can affect regulations, industry reputations, access to reliable data, and therefore the risk and value of REIT investments.
net leased financial
"a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties..."
A net leased property is a real estate arrangement where the tenant not only pays rent but also covers some or all ongoing property costs like taxes, insurance, and maintenance. For investors this matters because it makes income more predictable and lowers the landlord’s operating expenses and risk—similar to renting a car where the renter also pays for fuel and upkeep, leaving the owner with steadier, more passive returns.
capital recycling program financial
"We plan to continue our capital recycling program, whereby we sell non-core assets and use the proceeds to de-lever our portfolio..."
A capital recycling program is a strategy where a company sells certain assets or investments to raise cash and then uses that money to invest in new projects or opportunities. For investors, it signals that the company is actively managing its resources to grow or improve its business, which can impact its future profitability and value.
Total operating revenue $41,909 thousand -3.6% vs. quarter ended December 31, 2025
Net income available to common and OP Unitholders $3,836 thousand +71.5% vs. quarter ended December 31, 2025
Core FFO per diluted share $0.35 -5.4% vs. $0.37 in prior quarter
Understanding 8-K Material Events →
0001234006false00012340062026-05-052026-05-050001234006us-gaap:CommonStockMember2026-05-052026-05-050001234006good:A7.00SeriesDCumulativeRedeemablePreferredStockMember2026-05-052026-05-050001234006good:A6.625SeriesECumulativeRedeemablePreferredStockMember2026-05-052026-05-05

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________
Form 8-K
_____________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): May 5, 2026  
Gladstone Commercial Corporation

(Exact Name of Registrant as Specified in Charter)
Maryland001-3309702-0681276
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification Number)
1521 Westbranch Drive, Suite 100, McLean, Virginia 22102
(Address of Principal Executive Offices) (Zip Code)
(703) 287-5800
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 ☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 ☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 ☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 ☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:


Title of each class Trading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareGOODThe Nasdaq Stock Market LLC
6.625% Series E Cumulative Redeemable Preferred Stock, par value $0.001 per shareGOODNThe Nasdaq Stock Market LLC
6.00% Series G Cumulative Redeemable Preferred Stock, par value $0.001 per shareGOODOThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐


Item 2.02 Results of Operations and Financial Condition.
On May 5, 2026, Gladstone Commercial Corporation issued a press release announcing its financial results for the first quarter ended March 31, 2026. The text of the press release is included as Exhibit 99.1 to this Current Report on Form 8-K. Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibit and the information set forth therein and herein are deemed to be furnished and shall not be deemed to be filed.

Item 9.01. Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
(d) Exhibits.
Exhibit No. Description
   
99.1 
Press release dated May 5, 2026.
104Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 Gladstone Commercial Corporation
   
  
Date:May 5, 2026By: /s/ Gary Gerson        
  Gary Gerson
  Executive Vice President and Chief Financial Officer
  



Gladstone Commercial Corporation Reports Results for the First Quarter Ended March 31, 2026

Please note that the limited information that follows in this press release is not adequate to make an informed investment judgment.

MCLEAN, VA, May 5, 2026 (ACCESSWIRE) -- 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, 2026December 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, net4 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 amortization14,796 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 distributions98 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 expense37 36 1 2.8 %
Add: Realized loss on interest rate hedging instruments29 — 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 distributions98 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 - basic48,446,467 48,442,596 3,871 — %
Weighted average shares of common stock and Non-controlling OP Units outstanding - diluted48,768,782 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 owned151 (1)151 (2)— — %
Square feet owned17,675,963 (1)17,675,963 (2)— — %
Square feet leased98.7 %99.1 %(0.4)%(0.4)%

(1)Includes one property classified as held for sale of $12.0 million and 161,458 square feet.
(2)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.

First Quarter Activity:
•Collected 100% of cash rents: Collected 100% 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 of 6.58%;
•Extended mortgage debt maturity date: Extended the maturity date of $7.8 million swapped to fixed rate mortgage debt with an interest rate of 3.78% for an additional year; and
•Paid 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 $17.0 million, a 4.7% decrease when compared to the three months ended December 31, 2025, equaling $0.35 per share. Core FFO decreased primarily due to a lease termination fee and proceeds from an easement settlement recognized in the prior period, partially offset by a lower net incentive fee in the current period and a decrease in interest expense from deferred financing fees written off in the prior period as part of the credit facility recast.

Net income available to common stockholders and Non-controlling OP Unitholders for the three months ended March 31, 2026 was $3.8 million, or $0.08 per share, compared to net income available to common stockholders and Non-controlling OP Unitholders for the three months ended December 31, 2025 of $2.2 million, or $0.05 per share. In the Summary Information table above, we provide a reconciliation of Core FFO to net income (which we believe is the most directly comparable GAAP measure to Core FFO) for the three months ended March 31, 2026 and December 31, 2025, 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.

Subsequent to the end of the quarter:
•Collected 100% of April cash rents: Collected 100% 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 100% of the first quarter's cash rents and 100% of April 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, so far during 2026, we leased or renewed 805,622 square feet with five 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 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 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: View Original Filing on SEC EDGAR

FAQ

How did Gladstone Commercial (GOOD) perform in Q1 2026?

Gladstone Commercial reported Q1 2026 operating revenue of $41,909 thousand, down 3.6% from Q4 2025. Net income available to common stockholders and OP Unitholders increased to $3,836 thousand, or $0.08 per share, from $0.05.

What was Gladstone Commercial’s Core FFO in Q1 2026?

Core FFO available to common stockholders and Non-controlling OP Unitholders was $17,013 thousand in Q1 2026. This equals $0.35 per diluted share, a 4.7% decline compared with $0.37 per diluted share in the quarter ended December 31, 2025.

What were rent collection and occupancy levels for Gladstone Commercial in Q1 2026?

Gladstone Commercial collected 100% of cash rents due during January, February, and March 2026, and also 100% of April cash rents. The company reported 98.7% square feet leased at quarter-end, reflecting a highly occupied portfolio.

What dividends did Gladstone Commercial pay on its common stock in Q1 2026?

For Q1 2026, Gladstone Commercial paid monthly cash distributions totaling $0.30 per share on its common stock and Non-controlling OP Units. It also paid stated distributions on its Series E, F, G preferred stock and senior common stock classes.

How did Gladstone Commercial’s balance sheet change in Q1 2026?

At March 31, 2026, Gladstone Commercial reported total assets of $1,230,988 thousand and debt (including mortgages, revolver, term loan, and senior notes) of $836,385 thousand. Debt declined modestly from $843,466 thousand at December 31, 2025.

What portfolio activity did Gladstone Commercial undertake in Q1 2026?

During Q1 2026, Gladstone Commercial leased or renewed 805,622 square feet across five properties, sold a portion of a land parcel for $2.0 million, repaid $1.5 million of fixed-rate mortgage debt, and extended a $7.8 million mortgage maturity by one year.

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