Gladstone Commercial Q1 revenue falls

Gladstone Commercial

05/05/2026 22:01

Overview

U.S. net lease REIT's Q1 operating revenue declined sequentially and missed analyst expectations

Q1 net income rose sharply and beat analyst estimates

Core FFO for Q1 fell 4.7%, mainly due to fewer one-time fees

Outlook

Company expects to continue capital recycling and focus on industrial property investments

Gladstone Commercial anticipates ongoing challenges from inflation and higher interest rates

Company expects same store rents to continue rising as portfolio grows

Result Drivers

ONE-TIME FEES - Core FFO declined mainly due to absence of lease termination fee and easement settlement proceeds recognized in prior period

RENT COLLECTION - Co collected 100% of cash rents due during Q1

LEASING ACTIVITY - Co leased or renewed 805,622 square feet at five properties during Q1

Company press release: ID:nACSpLGcca

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Operating Revenue
Miss
$41.91 mln
$42.94 mln (5 Analysts)
Q1 Net Income
Beat
$6.97 mln
$2.10 mln (4 Analysts)
Q1 Operating Expenses
-$25.24 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the diversified reits peer group is "hold."

Wall Street's median 12-month price target for Gladstone Commercial Corp is $13.50, about 5.6% above its May 4 closing price of $12.78

The stock recently traded at 85 times the next 12-month earnings vs. a P/E of 78 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)