Gladstone Commercial is a high-quality REIT passing the Rule of 40 with strong Piotroski fundamentals, but 2 consecutive earnings misses, elevated leverage at a 2.5 debt-to-equity ratio, and a negative asymmetry gate at a reached price target temper the bull case.
Thesis pillars
- High Quality Rule Of 40 Pass→Stable
- Consecutive Earnings Misses→Stable
- Leverage Penalty Drag→Stable
- +1 more pillar — see the Why tab for full reasoning
Gladstone Commercial Corporatio (GOOD) Stock Analysis
Breakout setup
Real Estate · REIT - Diversified
Sell if holding. Analyst target reached at $12.49 — A.R:R is negative (-1.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.5): -1.5.
Gladstone Commercial Corporation is a REIT that acquires, owns, and manages primarily single-tenant industrial and office properties under long-term net leases, with 151 properties totaling 17.7 million square feet across 27 states and a 99.1% occupancy rate as of February 18,... Read more
Sell if holding. Analyst target reached at $12.49 — A.R:R is negative (-1.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.5): -1.5. Chart setup: Golden cross, above all MAs, RSI 56, MACD bullish. Score 6.1/10, moderate confidence.
Passes 6/8 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 29d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About Gladstone Commercial Corporatio
About Gladstone Commercial Corporatio
Gladstone Commercial owned 151 industrial and office properties totaling 17.7 million square feet across 27 states as of February 18, 2026, with occupancy at 99.1% and an average remaining lease term of 7.3 years. The REIT's five largest tenants accounted for approximately 17.2% of total lease revenue, and industry concentration topped out at 15.2% in Automotive, followed by 12.6% in Diversified/Conglomerate Services, 9.6% in Buildings and Real Estate, and 8.7% in Telecommunications.
Gladstone earns revenue almost entirely from net leases with terms of roughly seven to 20 years and built-in rental escalations, under which tenants pay most or all operating costs, maintenance, insurance, and real estate taxes; a majority of leases carry fixed rent escalations, with some tied to the consumer price index. The company caps any single acquisition at less than 5% of consolidated total assets and limits industry concentration to 20% without investment-committee approval, funding growth through equity (including at-the-market common and Series F preferred stock programs), a bank-syndicated Credit Facility -- $437.4 million outstanding at a 5.42% weighted average rate as of December 31, 2025 -- non-recourse mortgage debt ($250.2 million outstanding, none with recourse to the company), and a December 2025 private placement of $85.0 million in 5.99% senior unsecured notes due 2030. Gladstone is externally managed by Gladstone Management Corporation, an affiliate that also advises sister REIT and BDC entities including Gladstone Land, Gladstone Capital, and Gladstone Investment.
Show full overview
Gladstone's tenant base skews toward lower middle market companies with limited public information: as of December 31, 2025, only 35% of lease revenue came from tenants rated by a nationally recognized statistical rating organization, meaning the majority of the portfolio's credit risk rests on the Adviser's internal underwriting rather than third-party ratings. That risk concentrates further at the industry level -- Automotive alone supplied 15.2% of lease revenue, just under the company's self-imposed 20% single-industry cap that requires investment-committee approval to exceed -- so a downturn specific to auto suppliers or dealers would disproportionately hit results relative to a more evenly diversified net-lease REIT.
See also: Real Estate · REIT - Diversified
From Gladstone Commercial Corporatio's most recent 10-K filing, extracted July 6, 2026.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWTenanttop five tenants17%10-K Item 1A: 'our five largest tenants accounted for approximately 17.2% of our total lease revenue.'
- LOWTenantAutomotive industry tenants15%10-K Item 1A: 'As of December 31, 2025, 15.2% was earned from tenants in the Automotive industry'
- LOWTenantDiversified/Conglomerate Services industry tenants13%10-K Item 1A: '12.6% of our total lease revenue was earned from tenants in the Diversified/Conglomerate Services industry'
- LOWTenantBuildings and Real Estate industry tenants9.6%10-K Item 1A: '9.6% was earned from tenants in the Buildings and Real Estate industry'
- LOWTenantTelecommunications industry tenants8.7%10-K Item 1A: '8.7% was earned from tenants in the Telecommunications industry.'
Material Events(8-K, last 90d)
- 2026-06-02Item 5.02LOWGeorge 'Chip' Stelljes, III elected to the Board as an independent director effective June 1, 2026, term expiring at the 2028 annual meeting; named to the Compensation, Ethics/Nominating/Corporate Governance, and Valuation Committees. Routine board appointment; no departure.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
10 dimensions · all in-band
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $12.49 — A.R:R is negative (-1.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.5): -1.5. Chart setup: Golden cross, above all MAs, RSI 56, MACD bullish. Prior stop was $11.97. Score 6.1/10, moderate confidence.
Take-profit target: $12.64 (+1.2% upside). Prior stop was $11.97. Stop-loss: $11.97.
Analyst target reached - limited upside remaining; Leverage penalty (D/E 2.5): -1.5; Consecutive earnings misses (2).
Gladstone Commercial Corporatio trades at a P/E of 69.6 (forward 75.9). TrendMatrix value score: 5.2/10. Verdict: Sell.
10 analysts cover GOOD with a consensus score of 4.1/5. Average price target: $14.
What does Gladstone Commercial Corporatio do?Gladstone Commercial Corporation is a REIT that acquires, owns, and manages primarily single-tenant industrial and...
Gladstone Commercial Corporation is a REIT that acquires, owns, and manages primarily single-tenant industrial and office properties under long-term net leases, with 151 properties totaling 17.7 million square feet across 27 states and a 99.1% occupancy rate as of February 18, 2026. Its five largest tenants account for approximately 17.2% of total lease revenue, with industry exposure concentrated in Automotive (15.2%), Diversified/Conglomerate Services (12.6%), Buildings and Real Estate (9.6%), and Telecommunications (8.7%). Gladstone funds acquisitions through equity, a bank-syndicated Credi