Gladstone Commercial Reports Third-Quarter 2026 Results With $5.2 Million Net Loss
Gladstone Commercial reported lower third-quarter Core FFO, a net loss attributable to common stockholders and Non-controlling OP Unitholders, and continued property acquisition and leasing activity.
Gladstone Commercial Corporation (Nasdaq:GOOD) reported financial results for the third quarter ended September 30, 2026, including Core FFO of $16.9 million and a net loss attributable to common stockholders and Non-controlling OP Unitholders of $5.2 million. The company also reported a $6.5 million impairment charge during the period.
Total operating revenue was $42,419 thousand for the three months ended September 30, 2026, compared with $43,989 thousand for the three months ended June 30, 2026. Net (loss) income was $(2,063) for the latest quarter, compared with $8,270 for the previous period.
Net loss attributable to common stockholders and Non-controlling OP Unitholders was $5.2 million, or $0.11 per share. This compared with net income available to common stockholders and Non-controlling OP Unitholders of $5.1 million, or $0.11 per share, for the three months ended June 30, 2026.
Core FFO available to common shareholders and Non-controlling OP Unitholders was $16.9 million, or $0.35 per share, down 7.8% from the preceding quarter. Gladstone Commercial said the decline primarily reflected higher property expenses, increased interest expense due to a higher SOFR rate and a lease termination fee recognised on a property sold during the previous period. Lower general and administrative expenses and a lower net incentive fee partly offset those factors.
The company identifies FFO and Core FFO as non-GAAP supplemental measures. It says these measures should not be treated as alternatives to net income or cash flow from operating activities under GAAP.
Gladstone Commercial purchased one fully occupied industrial property during the quarter. The property contains 146,650 square feet of rental space and was acquired for $6.6 million at a cap rate of 9.16%.
The company leased or renewed 502,557 square feet at four properties. The remaining lease terms for that activity ranged from 5.5 years to 20.0 years.
Gladstone Commercial said it collected 100% of cash rents due during July, August and September. At September 30, 2026, the company owned 152 properties, with 17,816,521 square feet owned and 99.3% of its square feet leased.
During the quarter, Gladstone Commercial issued 168,868 shares of common stock through its at-the-market program for net proceeds of $2.2 million.
The company paid monthly cash distributions for the quarter totaling $0.30 per share on common stock and Non-controlling OP Units. Payments also included $0.414063 per share on Series E Preferred Stock, $0.375 per share on Series F Preferred Stock, $0.375 per share on Series G Preferred Stock and $0.2625 per share on senior common stock.
After the quarter ended, the company reported collecting 100% of October cash rents, renewing 522,521 square feet at three properties and repaying $10.2 million of fixed-rate mortgage debt at an interest rate of 4.25%.
Gladstone Commercial declared monthly cash distributions for October, November and December 2026. The declared amounts were $0.30 per share on common stock and Non-controlling OP Units, $0.414063 per share on Series E Preferred Stock, $0.375 per share on Series F Preferred Stock, $0.375 per share on Series G Preferred Stock and $0.2625 per share on senior common stock.
At September 30, 2026, real estate before accumulated depreciation stood at $1,427,631, while total assets were $1,245,747. Total equity and mezzanine equity was $318,104.
Mortgage notes payable, net, borrowings under the revolver, borrowings under the term loan, net, and senior unsecured notes, net totalled $858,271.
Chief Executive Officer and President Buzz Cooper said the company plans to continue selling non-core assets, using proceeds to reduce leverage and acquire properties in its target growth markets. He said the company remains focused primarily on industrial properties and active portfolio management.
Cooper also identified inflation, higher interest rates, geopolitical issues and economic issues as challenges. The company’s forward-looking statements are subject to risks including its ability to raise capital, the availability and terms of financing, tenant performance, competition affecting lease renewals or re-leasing, and significant changes in interest rates.
Gladstone Commercial is scheduled to hold its quarterly results conference call on Wednesday, November 4, 2026, at 8:30 a.m. Eastern Time. A replay is scheduled to be available beginning one hour after the call and through November 11, 2026.
Gladstone Commercial Corporation announced its financial results for the third quarter ended September 30, 2026. The company directed investors to its quarterly financial supplement and Quarterly Report on Form 10-Q for further detail, and cautioned that the limited information in the press release was not adequate to make an informed investment judgment.
Gladstone Commercial Corporation's shares trade on Nasdaq under the ticker symbol GOOD, shown in the source as Nasdaq:GOOD.
Gladstone Commercial Corporation reported total operating revenue of $42,419 thousand for the three months ended September 30, 2026, compared with $43,989 thousand for the three months ended June 30, 2026. Net loss income was $2,063 for the latest period, compared with net income of $8,270 for the previous period.
Gladstone Commercial Corporation reported a net loss attributable to common stockholders and Non-controlling OP Unitholders of $5.2 million, or $0.11 per share, for the three months ended September 30, 2026. This compared with net income available to common stockholders and Non-controlling OP Unitholders of $5.1 million, or $0.11 per share, for the three months ended June 30, 2026.
Core FFO available to common shareholders and Non-controlling OP Unitholders was $16.9 million, a 7.8% decrease compared with the three months ended June 30, 2026, and equalled $0.35 per share. The company presents Core FFO as a non-GAAP supplemental measure and says it should not be considered an alternative to net income or cash flow from operations.
Gladstone Commercial Corporation said Core FFO decreased primarily because of higher property expenses, higher interest expense due to the SOFR rate increasing, and a lease termination fee recognised on the property sold during the previous period. The decrease was partially offset by lower general and administrative expenses and a lower net incentive fee in the current period.
Gladstone Commercial Corporation purchased one fully occupied industrial property with 146,650 square feet of rental space for $6.6 million and a cap rate of 9.16%. It also leased or renewed 502,557 square feet at four properties, with remaining lease terms ranging from 5.5 years to 20.0 years.
Gladstone Commercial Corporation said it collected 100% of cash rents due during July, August and September. The company also reported that it collected 100% of cash rents due in October after the quarter ended.
Gladstone Commercial Corporation issued 168,868 shares of common stock under its at-the-market programme for net proceeds of $2.2 million during the quarter. After the quarter ended, it repaid $10.2 million in fixed-rate mortgage debt at an interest rate of 4.25%.
At September 30, 2026, Gladstone Commercial Corporation reported real estate before accumulated depreciation of $1,427,631, total assets of $1,245,747, and total equity and mezzanine equity of $318,104. Mortgage notes payable, net, borrowings under the revolver, borrowings under the term loan, net, and senior unsecured notes, net totalled $858,271.
Gladstone Commercial Corporation declared monthly cash distributions for October, November and December 2026 totalling $0.30 per share on its common stock and Non-controlling OP Units. The declared amounts were $0.414063 per share on Series E Preferred Stock, $0.375 per share on Series F Preferred Stock, $0.375 per share on Series G Preferred Stock, and $0.2625 per share on senior common stock.
Gladstone Commercial Corporation is a real estate investment trust focused on acquiring, owning and operating net leased industrial and office properties across the United States. Chief Executive Officer and President Buzz Cooper said the company would continue to focus primarily on its target markets, with an emphasis on industrial properties, while actively managing its portfolio.
Buzz Cooper said Gladstone Commercial Corporation plans to continue its capital recycling programme by selling non-core assets, using proceeds to deleverage its portfolio and acquire properties in target growth markets. He also said the company expects to continue having access to debt and equity markets as necessary for added liquidity, while noting challenges from inflation, increasing interest rates, geopolitical and economic issues, tenant performance, competition and other factors identified in the company's forward-looking statement disclosures.
Gladstone Commercial Corporation will hold its quarterly results conference call on Wednesday, November 4, 2026, at 8:30 a.m. Eastern Time. A replay will be available beginning one hour after the call and will remain accessible through November 11, 2026.