Key Highlights

  • Lease Revenue was USD 42.4 million versus 40.8 million, and Depreciation and amortization was USD 15.4 million versus 15.3 million.
  • An Impairment charge of USD 6.5 million was recorded, and total operating expenses were USD 32.9 million versus 26.0 million.
  • Interest expense was USD 11.6 million versus 10.7 million; net loss was USD 2.1 million versus income of 4.1 million.
  • Loss available to common stockholders was USD 5.2 million, or USD 0.11 per share, versus income of 0.02 per share.

Lease Revenue and Operating Expenses

Gladstone Commercial Corporation (NASDAQ:GOOD), a real estate Investment trust that acquires, owns and manages primarily industrial and office properties, filed its Quarterly Report for the period ended September 30, 2026. As of that date, the company owned 152 properties totaling 17.8 million square feet across 27 states. Lease revenue, its sole Operating Revenue line, was USD 42,419 thousand, compared with USD 40,841 thousand in the third quarter of 2025.

Depreciation and amortization was USD 15,435 thousand versus USD 15,271 thousand, and property operating expenses were USD 7,446 thousand versus USD 7,409 thousand. The base management fee was USD 1,762 thousand versus USD 1,701 thousand, the incentive fee was USD 547 thousand versus USD 709 thousand, and the administration fee was USD 653 thousand versus USD 720 thousand. General and administrative expense was USD 879 thousand versus USD 920 thousand.

The impairment charge was USD 6,518 thousand, with none in the prior-year quarter. Total Operating Expense before the incentive fee Waiver was USD 33,240 thousand versus USD 26,730 thousand, and after a waiver of USD 325 thousand, total operating expenses were USD 32,915 thousand versus USD 26,021 thousand.

Analyst estimates were EPS of USD 0.04 against reported EPS of negative USD 0.11, and revenue of USD 42.6 million against reported revenue of USD 42.4 million.

Net Loss and Per Share Results

Interest expense was USD 11,613 thousand versus USD 10,704 thousand. Total other expense, net, was USD 11,567 thousand versus USD 10,683 thousand. The net loss was USD 2,063 thousand versus Net Income of USD 4,137 thousand, and the net loss attributable to the company was USD 2,059 thousand.

Distributions attributable to Series E, F and G preferred stock were USD 3,032 thousand versus USD 3,058 thousand, and distributions attributable to senior common stock were USD 100 thousand versus USD 102 thousand. The net loss attributable to common stockholders was USD 5,189 thousand versus net income available of USD 982 thousand. Basic and diluted loss per share was USD 0.11 versus income per share of USD 0.02, on 48,468,220 weighted average shares.

For the nine months, lease revenue was USD 128,317 thousand versus USD 117,875 thousand, net income was USD 13,175 thousand versus USD 13,908 thousand, and income per share available to common stockholders was USD 0.08 versus USD 0.09. The nine-month results included a gain on sale of real estate, net, of USD 3,676 thousand.

Cash Flow and Acquisitions

Net cash provided by Operating Activities for the nine months was USD 56,392 thousand versus USD 72,430 thousand. Acquisitions of real estate and related intangible assets were USD 29,694 thousand versus USD 207,905 thousand, and improvements of existing real estate were USD 6,085 thousand versus USD 17,406 thousand.

Cash and cash equivalents were USD 10,752 thousand at September 30, 2026 versus USD 18,400 thousand a year earlier, and restricted cash was USD 6,452 thousand. The company reported a change in unrealized gain related to Interest Rate hedging instruments of USD 8,225 thousand in the quarter.

Items to Follow

Investors can follow the impairment charge of USD 6,518 thousand, interest expense of USD 11,613 thousand, and the net loss attributable to common stockholders of USD 5,189 thousand.

Other items include the company's fee arrangements with its Adviser, under which the incentive fee is 15.0% of pre-incentive fee Core FFO above the hurdle rate, and the level of Acquisition activity, which was USD 29,694 thousand in the nine months.