Revenue: As of FY2026 Q1, the actual value is USD 41.91 M.

EPS: As of FY2026 Q1, the actual value is USD 0.08.

Operating Data

Total operating revenue was $41,909 thousand for the first quarter ended March 31, 2026, a decrease of 3.6% from $43,461 thousand for the three months ended December 31, 2025.Total operating expenses were -$25,243 thousand for the first quarter ended March 31, 2026, a decrease of 4.3% from -$26,367 thousand for the three months ended December 31, 2025.Other expense, net, was -$9,694 thousand for the first quarter ended March 31, 2026, a decrease of 17.2% from -$11,712 thousand for the three months ended December 31, 2025.Net income was $6,972 thousand for the first quarter ended March 31, 2026, an increase of 29.5% from $5,382 thousand for the three months ended December 31, 2025.Net income available to common stockholders and Non-controlling OP Unitholders was $3,836 thousand for the first quarter ended March 31, 2026, an increase of 71.5% from $2,237 thousand for the three months ended December 31, 2025.Real estate depreciation and amortization was $14,796 thousand for the first quarter ended March 31, 2026, a decrease of 4.4% from $15,482 thousand for the three months ended December 31, 2025.Gain on sale of real estate, net, was -$1,783 thousand for the first quarter ended March 31, 2026, compared to $0 thousand for the three months ended December 31, 2025.

Funds From Operations (FFO) and Core FFO

Funds from operations available to common stockholders and Non-controlling OP Unitholders (basic) was $16,849 thousand for the first quarter ended March 31, 2026, a decrease of 4.9% from $17,719 thousand for the three months ended December 31, 2025.Funds from operations available to common stockholders and Non-controlling OP Unitholders (diluted) was $16,947 thousand for the first quarter ended March 31, 2026, a decrease of 4.9% from $17,821 thousand for the three months ended December 31, 2025.Core funds from operations available to common stockholders and Non-controlling OP Unitholders (basic) was $16,915 thousand for the first quarter ended March 31, 2026, a decrease of 4.7% from $17,755 thousand for the three months ended December 31, 2025.Core funds from operations available to common stockholders and Non-controlling OP Unitholders (diluted) was $17,013 thousand for the first quarter ended March 31, 2026, a decrease of 4.7% from $17,857 thousand for the three months ended December 31, 2025.

Financial Position

Real estate, before accumulated depreciation, increased to $1,404,695 thousand as of March 31, 2026, from $1,402,640 thousand as of December 31, 2025.Total assets decreased by 1.3% to $1,230,988 thousand as of March 31, 2026, from $1,246,933 thousand as of December 31, 2025.Mortgage notes payable, net, borrowings under revolver, borrowings under term loan, net, and senior unsecured notes, net, decreased by 0.8% to $836,385 thousand as of March 31, 2026, from $843,466 thousand as of December 31, 2025.Total equity and mezzanine equity decreased by 2.4% to $333,633 thousand as of March 31, 2026, from $341,933 thousand as of December 31, 2025.

Operational Metrics

The company owned 151 properties totaling 17,675,963 square feet in both periods.Square feet leased decreased slightly to 98.7% as of March 31, 2026, from 99.1% as of December 31, 2025.

First Quarter Activity

Gladstone Commercial Corporation collected 100% of cash rents due during January, February, and March.The company sold a portion of a land parcel for $2.0 million.Leasing activity included leasing or renewing 805,622 square feet across five properties, with remaining lease terms ranging from 0.7 to 6.0 years.Gladstone Commercial Corporation repaid $1.5 million in fixed rate mortgage debt at a weighted average interest rate of 6.58%.The maturity date of $7.8 million swapped to fixed rate mortgage debt with an interest rate of 3.78% was extended for an additional year.Monthly cash distributions for the quarter totaled $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.

Subsequent to Quarter End

Gladstone Commercial Corporation collected 100% of cash rents due in April.Monthly cash distributions for April, May, and June 2026 were declared, totaling $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.

Outlook

Gladstone Commercial Corporation plans to continue its capital recycling program by selling non-core assets to de-lever its portfolio and acquire properties in target growth markets, focusing on industrial investment opportunities.Despite anticipated challenges from inflation, increased interest rates, and geo-political issues, the company expects its tenants to navigate the current economic climate successfully.Gladstone Commercial Corporation also anticipates continued access to debt and equity markets for liquidity and expects same-store rents, which have increased by 2% or more annually in recent years, to continue to rise.