Gladstone Commercial Corporation 6.625% Series E Cumulative Redeemable Preferred Stock (GOODN)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at this as a lender-like claim on a small net-lease REIT, not as a common-stock bargain. Gladstone Commercial owns 151 properties in 27 states, about 17.7 million square feet. Net leases can produce durable rent, but this is a small, diversified REIT with no obvious wide moat. The filed numbers show improvement: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $44.0M, net income $8.3M, and diluted EPS $0.11, versus fiscal Q2 2025 revenue $39.5M, net income $4.6M, and diluted EPS $0.03. Fiscal Q1 2026, the quarter ended 2026-03-31, also showed revenue $41.9M, net income $7.0M, and diluted EPS $0.08. On a full-year basis, fiscal 2025 revenue was $161.3M, net income $19.3M, and diluted EPS $0.14, after fiscal 2024 revenue $149.4M, net income $24.0M, and diluted EPS $0.27. So revenue is rising, but profit is uneven and below 2024. FairStock's Lynch category is SLOW GROWER, with profit up 5.2% a year over five years and revenue up 3.9%. Financial health is the main worry: FairStock shows D/E 2.62, Altman Z-score -0.23, ROCE 3.38%, and P/B 6.13. The Altman score signals distress risk. For a REIT, depreciation makes EPS and P/E poor guides; FFO/AFFO are not in the data. The preferred is cumulative, which helps, but there is no coverage data here. At $19.92, the close on 2026-10-13, the 7.35% dividend yield and 7.3% FCF yield look generous, but they may be compensation for leverage and slow growth. I would call it fair for income, not a bargain.

In plain English: Gladstone Commercial owns and leases out industrial and office buildings across the U.S. The business makes money but uses a lot of debt, and growth has been slow and uneven. The preferred stock pays a high income and trades near the low end of its recent range, so the price looks fair for income, though the risks are real.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer