Gladstone Commercial Stock Earnings Reports

Gladstone Commercial reported a solid Q3 2025 driven by portfolio execution and balance-sheet actions. Key operating highlights: FFO and core FFO were $0.35 per share in Q3 (down from $0.38 a year ago); nine‑month FFO was $1.02 (vs. $1.07 prior year). Same-store lease revenue rose 3.1% year-over-year. The company completed $206M of acquisitions year-to-date, including a $54.5M, six-facility industrial sale-leaseback that increased industrial concentration to ~69% of annualized straight-line rent. Portfolio metrics are strong — 99.1% occupancy (highest since Q1 2019) and a WALT of 7.5 years (longest since Q1 2020). Leasing activity added ~$1.1M of straight-line rent and 734k SF across 14 properties. CapEx was elevated in the quarter (~$10M) driven by tenant renewals and tenant-improvement spending that management characterizes as accretive. Balance sheet and liquidity: net assets increased to $1.265B after the acquisition; the company increased and extended its credit facility (now sized at $400M term loans + $200M revolver = $600M total) and hedged its term loans to maturity (only ~13% floating rate as of today). As of the quarter end management had ~$6M cash, $145.4M revolver borrowings, and ~$63M available on the line; they raised ~$61M net via ATM sales YTD. Dividend remains $0.30 per quarter ($1.20 annual). Management remains focused on continuing to recycle capital out of noncore/office assets into industrial, keeping underwriting discipline, pursuing accretive industrial acquisitions, and reducing leverage over time by adding equity to new deals. Risks called out: continued elevated operating expenses (inflation, insurance), competitive acquisition market, and exposure to office assets in a weak office environment.