Companies /Real Estate

Gladstone Commercial Corp

NASDAQ: GOOD Reit - Diversified
$12.94
▼ $0.07 (−0.56%) today
Markets open · 2:19pm ET

Q4 2025 Earnings

Reported Feb 18, 2026, 4:05pm ET · SEC source
$0.05
Beat +150.00%
EPS · est. $0.02
$43.5M
Beat +5.41%
Revenue · est. $41.2M
+0.8%
Beating market
GOOD vs S&P since report
3 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+3%+6%Feb 18Feb 19report 4:05pm ETearnings−0.2%+4.3%
0+3%+6%Feb 18Feb 19earnings−0.2%+4.3%
GOOD +4.3%S&P 500 −0.2%
0+3%+6%Feb 18Feb 19report 4:05pm ETearnings−0.3%+4.3%
0+3%+6%Feb 18Feb 19earnings−0.3%+4.3%
GOOD +4.3%NASDAQ −0.3%
0+4%+8%+12%Feb 17Feb 26report 4:05pm ETearnings+0.5%+10.5%
0+4%+8%+12%Feb 17Feb 26earnings+0.5%+10.5%
GOOD +10.5%S&P 500 +0.5%
0+4%+8%+12%Feb 17Feb 26report 4:05pm ETearnings+0.7%+10.5%
0+4%+8%+12%Feb 17Feb 26earnings+0.7%+10.5%
GOOD +10.5%NASDAQ +0.7%
+4.98%
Day of report
+4.50%
Next session
+6.24%
One week
−3.41%
30 days

S&P 500 over the same 30 days: −4.25%.

Did GOOD Beat Earnings? Q4 2025 Results

Gladstone Commercial delivered a clean beat to close out fiscal 2025, with Q4 revenue of $43.46 million coming in 5.41% ahead of consensus estimates and climbing 16.3% year over year, as the net-lease REIT rode a full quarter of rental income from its aggressive acquisition push. The company posted GAAP earnings of $0.05 per share, while diluted FFO reached $0.37 per share on $17.82 million for the quarter, an 8.9% sequential improvement. The primary engine behind the revenue strength was a year of disciplined portfolio expansion, highlighted by the purchase of 19 fully-occupied industrial properties totaling over 1.56 million square feet for $206.70 million at a weighted average cap rate of 8.88%, alongside 100% base rent collection and a stable 99.1% occupancy rate across 151 properties. For the full year, Core FFO rose 9.1% to $1.40 per share. Management expects same-store rents to continue growing at approximately 2% or better annually, while ongoing capital recycling into industrial-focused growth markets is anticipated to generate additional gains over the next one to two years.

Key Takeaways
  • Full quarter of rental revenue from Q3 2025 acquisitions
  • Lease termination fee recognized in Q4 2025
  • Proceeds from easement settlement in Q4 2025
  • 99.1% portfolio occupancy rate
  • 100% collection of 2025 base rental charges
  • Accretive acquisitions of 19 industrial properties at 8.88% weighted average cap rate
  • Leased 305,589 square feet of previously vacant space and renewed 884,327 square feet

“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.”

Gladstone Commercial CEO, on the earnings call

Forward Guidance & Outlook

The company expects to continue its capital recycling program, selling additional non-core assets over the next one to two years that it believes will result in capital gains, and redeploying proceeds into stronger target growth markets with a focus on industrial investment opportunities. Management anticipates same store rents will continue to rise approximately 2% or greater annually. The company expects to face challenges from inflation, rising interest rates, and geopolitical/economic issues but expresses confidence in tenant credit quality and anticipates continued access to debt and equity markets for liquidity. Remaining vacant space is being actively marketed with anticipated positive outcomes.

GOOD YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$20.0M$40.0M$37.4M$43.5MRevenue$13.3M$17.1MOperating Income$7.2M$5.4MNet Income
$0$20.0M$40.0MRevenueOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.