(GOOD) Gladstone Commercial - Overview
Sector: Real Estate | Industry: REIT - Diversified | Exchange: NASDAQ (USA) | Market Cap: 619m USD | Total Return: -3.6% in 12m
Avg Turnover: 5.24M
Qual. Beats: 0
Rev. Trend: 75.3%
Qual. Beats: -1
Warnings
High Debt/EBITDA (13.2) with thin interest coverage (0.1)
Interest Coverage Ratio 0.1 is critical
Beneish M-Score 1.00 > -1.5 - likely earnings manipulation
Altman Z'' -2.67 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
Gladstone Commercial Corporation (GOOD) is a Maryland-incorporated Real Estate Investment Trust (REIT) focused on acquiring and managing a national portfolio of industrial and office properties. As of mid-2025, the firm managed approximately 17 million square feet across 143 properties, diversified across 20 industries and 27 states. The company utilizes a triple-net lease structure, which typically requires tenants to cover property taxes, insurance, and maintenance costs, reducing the landlords operational volatility.
The portfolio strategy emphasizes long-term stability through an average lease term of 7.1 years and a tenant base where 51% possess investment-grade or equivalent credit ratings. Gladstone acquires assets via third-party purchases, sale-leaseback transactions, and build-to-suit partnerships with developers. This model allows the REIT to provide capital to middle-market and investment-grade firms while securing predictable cash flows. You may find additional valuation metrics for this REIT on ValueRay.
- Industrial property acquisitions drive portfolio growth and rental revenue expansion
- High interest rates increase cost of debt for property acquisitions
- Transition from office to industrial assets improves long-term portfolio stability
- Investment grade tenant concentration mitigates rental income volatility and default risk
- Occupancy rates and lease renewals dictate core funds from operations performance
| Net Income: 21.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 2.47 > 1.0 |
| NWC/Revenue: -24.87% < 20% (prev -32.37%; Δ 7.50% < -1%) |
| CFO/TA 0.07 > 3% & CFO 88.4m > Net Income 21.1m |
| Net Debt (841.9m) to EBITDA (64.0m): 13.16 < 3 |
| Current Ratio: 0.39 > 1.5 & < 3 |
| Outstanding Shares: last quarter (47.2m) vs 12m ago 5.85% < -2% |
| Gross Margin: 8.26% > 18% (prev 0.78%; Δ 747.3% > 0.5%) |
| Asset Turnover: 13.86% > 50% (prev 13.03%; Δ 0.83% > 0%) |
| Interest Coverage Ratio: 0.09 > 6 (EBITDA TTM 64.0m / Interest Expense TTM 44.2m) |
| A: -0.03 (Total Current Assets 26.7m - Total Current Liabilities 67.9m) / Total Assets 1.23b |
| B: -0.56 (Retained Earnings -683.9m / Total Assets 1.23b) |
| C: 0.00 (EBIT TTM 4.15m / Avg Total Assets 1.20b) |
| D: -0.63 (Book Value of Equity -677.8m / Total Liabilities 1.07b) |
| Altman-Z'' = -2.67 = D |
| DSRI: 2.40 (Receivables 48.8m/18.5m, Revenue 165.7m/151.2m) |
| GMI: 9.50 (GM 8.26% / 78.45%) |
| AQI: 1.02 (AQ_t 0.97 / AQ_t-1 0.96) |
| SGI: 1.10 (Revenue 165.7m / 151.2m) |
| TATA: -0.05 (NI 21.1m - CFO 88.4m) / TA 1.23b) |
| Beneish M = 5.85 (Cap -4..+1) = D |
As of June 01, 2026, the stock is trading at USD 12.61 with a total of 715,819 shares traded.
Over the past week, the price has changed by -2.17%,
over one month by +0.81%,
over three months by +4.74% and
over the past year by -3.61%.
Gladstone Commercial has received a consensus analysts rating of 3.60. Therefore, it is recommended to hold GOOD.
- StrongBuy: 1
- Buy: 1
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 13.9 | 10.1% |
P/E Trailing = 70.4444
P/E Forward = 50.7614
P/S = 3.7353
P/B = 3.7547
P/EG = 39.8394
Revenue TTM = 165.7m USD
EBIT TTM = 4.15m USD
EBITDA TTM = 64.0m USD
Long Term Debt = 802.1m USD (from longTermDebt, last quarter)
Short Term Debt = 34.3m USD (from shortTermDebt, last quarter)
Debt = 849.8m USD (from shortLongTermDebtTotal, last quarter) + Leases 6.72m
Net Debt = 841.9m USD (calculated: Debt 849.8m - CCE 7.96m)
Enterprise Value = 1.46b USD (619.1m + Debt 849.8m - CCE 7.96m)
Interest Coverage Ratio = 0.09 (Ebit TTM 4.15m / Interest Expense TTM 44.2m)
EV/FCF = 16.41x (Enterprise Value 1.46b / FCF TTM 89.0m)
FCF Yield = 6.09% (FCF TTM 89.0m / Enterprise Value 1.46b)
FCF Margin = 53.71% (FCF TTM 89.0m / Revenue TTM 165.7m)
Net Margin = 12.75% (Net Income TTM 21.1m / Revenue TTM 165.7m)
Gross Margin = 8.26% ((Revenue TTM 165.7m - Cost of Revenue TTM 152.1m) / Revenue TTM)
Gross Margin QoQ = 79.07% (prev -188.3%)
Tobins Q-Ratio = 1.19 (Enterprise Value 1.46b / Total Assets 1.23b)
Interest Expense / Debt = 5.20% (Interest Expense 44.2m / Debt 849.8m)
Taxrate = 21.0% (US default 21%)
NOPAT = 3.28m (EBIT 4.15m * (1 - 21.00%))
Current Ratio = 0.39 (Total Current Assets 26.7m / Total Current Liabilities 67.9m)
Debt / Equity = 5.20 (Debt 849.8m / totalStockholderEquity, last quarter 163.5m)
Debt / EBITDA = 13.16 (Net Debt 841.9m / EBITDA 64.0m)
Debt / FCF = 9.46 (Net Debt 841.9m / FCF TTM 89.0m)
Total Stockholder Equity = 216.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.77% (Net Income 21.1m / Total Assets 1.23b)
RoE = 2.35% (Net Income TTM 21.1m / Total Stockholder Equity 900.7m)
RoCE = 0.24% (EBIT 4.15m / Capital Employed (Equity 900.7m + L.T.Debt 802.1m))
RoIC = 0.28% (NOPAT 3.28m / Invested Capital 1.19b)
WACC = 5.57% (E(619.1m)/V(1.47b) * Re(7.57%) + D(849.8m)/V(1.47b) * Rd(5.20%) * (1-Tc(0.21)))
Discount Rate = 7.57% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 92.01 | Cagr: 7.31%
[DCF] Terminal Value 77.97% ; FCFF base≈75.5m ; Y1≈86.6m ; Y5≈127.4m
[DCF] Fair Price = 22.22 (EV 1.92b - Net Debt 841.9m = Equity 1.08b / Shares 48.4m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.23 | # QB: 0
Revenue Correlation: 75.29 | Revenue CAGR: 3.37% | SUE: -0.97 | # QB: -1
EPS current Quarter (2026-06-30): EPS=0.04 | Chg30d=N/A | Revisions=-20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.04 | Chg30d=N/A | Revisions=-20% | Analysts=2
EPS current Year (2026-12-31): EPS=0.23 | Chg30d=+47.88% | Revisions=+0% | GrowthEPS=+61.9% | GrowthRev=+5.4%
EPS next Year (2027-12-31): EPS=0.17 | Chg30d=+65.00% | Revisions=N/A | GrowthEPS=-36.1% | GrowthRev=+3.2%
[Analyst] Revisions Ratio: -20%