Gladstone Commercial's Q3 Core FFO falls on higher expenses

Gladstone Commercial

Yesterday 21:44

Overview
US REIT's Q3 operating revenue fell 3.6% from prior quarter
Core FFO per share for Q3 declined 7.9% sequentially to $0.35
Core FFO decline driven by higher property and interest expenses, and lease termination fee

Outlook
Company plans to continue selling non-core assets and acquiring properties in target growth markets
Company expects challenges from inflation, higher interest rates, and economic uncertainty
Company anticipates same store rents to continue rising as portfolio grows

Result Drivers
HIGHER EXPENSES - Increased property and interest expenses, as well as a lease termination fee, drove Core FFO decline
IMPAIRMENT CHARGE - Co recorded a $6.5 mln impairment charge on one property in Q3

Company press release: ID:nACSl4Px0a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Core FFO Per Share  
 
$0.35
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the diversified reits peer group is "buy"
Wall Street's median 12-month price target for Gladstone Commercial Corp is $14.16, about 22.3% above its November 2 closing price of $11.58
The stock recently traded at 56 times the next 12-month earnings vs. a P/E of 58 three months ago

Reuters Recommended Reads
Nov 3 - Gladstone Commercial Q3 revenue slightly misses on higher property expenses
Nov 2 - Realty Income's Q3 revenue beats; raises 2026 AFFO per share outlook
Nov 2 - Independence Realty Trust Q3 adjusted EBITDA beats estimates; reaffirms FY guidance

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)