Gladstone Commercial : Investor Presentation May 2026

Published: 2026-05-12 15:14:11 ET GOOD

Published on 05/12/2026 at 03:14 pm EDT

May 2026 | Nasdaq: GOOD

Investment Focus

Portfolio Highlights

151

Properties

$1.8 billion

Gross Assets

Single tenant or anchored multi-tenant net lease industrial assets

Long term leases (7+ years)

Strong, credit tenants

17.7 million

Square Feet

Mission-critical real estate in path of growth markets

109

Unique Tenants

Third party purchases, sale leasebacks, or build-to-suit developments

Focused on industrial portfolio growth

98.7%

Occupancy

7.3 years

Average Remaining Lease Term

Company Overview

Diverse Portfolio

Portfolio diversified across tenants, geographies, and industries

151 properties with 109 unique tenants in 27 different states with no tenant accounting for more than 6% of annualized straight-line rent

Most industrial leases have fixed annual escalations up to 3.5%, providing steady contractual revenue growth

Growing Industrial Concentration

Since 2018, GOOD has increased industrial concentration (as a % of annualized straight-line base rent) from 35% to 69%

Industrial assets continue to outperform other asset classes with long term future demand driven by numerous tailwinds including manufacturing reshoring and supply chain optimization

20+ Year History

GOOD's management has decades of combined experience investing in net lease assets and evaluating tenant credit

History of consistent and disciplined growth poised to continue in any economic environment

Mission-Critical Assets

GOOD's portfolio occupancy has never declined below 95%, and industrial and office portfolio occupancy rates were 99.8% and 91.4%, respectively, as of March 31, 2026

Tenants often have heavy fixed investment in a site, resulting in prohibitive relocation costs

More than 74% of annualized straight-line base rent expires in 2029 or later

Robust Underwriting Platform

GOOD's in-house underwriting team critically evaluates every potential new tenant's credit

In GOOD's 20+ year history spanning multiple economic cycles, only six tenants have ever defaulted

Consistently high cash rent collection - 100% of cash rents collected in 2021-2026 (through April 2026), and 99% cash rent collection in 2020 (overlapping with COVID-19 pandemic)

Conservative Balance Sheet and Capital Structure

96% of outstanding debt is fixed rate or hedged floating rate, and only 2.8% of debt matures before 2027

Since January 1, 2022, GOOD has repaid net $205.6 million of mortgage debt and grown its unencumbered asset base by over 60%

$83.3 million in available liquidity via revolving credit facility and cash on hand

Investment Highlights

By State

By Asset Class

As % of Annualized Straight-Line Base Rent As % of Annualized Straight-Line Base Rent

Office 28%

Retail 2%

Medical Office 1%

Industrial 69%

By Tenant Industry

As % of Annualized Straight-Line Base Rent

15.7 %

12.8 %

9.7 %

6.8 %

3.1 %

6.4 %

2.1 %

5.9 %

1.8 %

5.3 %

1.8 %

5.2 %

1.8 %

5.1 %

1.6 %

4.9 %

1.0 %

3.3 %

All Others

5.7 %

All 14 Others 36%

Diversified/Conglomerate Manufacturing 8%

Automotive 19%

Diversified/Conglomerate Services 11%

Beverage, Food & Tobacco 10%

Building and Real Estate 8%

Telecommunications 8%

Diverse, Stable Portfolio

The Company began a focused transition to industrial assets in 2018 (before COVID-19) and has successfully increased portfolio industrial exposure to 69% of annualized straight line rent as of Q1 2026

GOOD sees continued tailwinds (supply chain normalization, reshoring initiatives, government subsidies) and ability to leverage in-house credit-underwriting expertise for industrial assets in the foreseeable future

GOOD targets at least 70% portfolio industrial concentration in the next 12 months

Industrial assets are particularly mission-critical to tenants, as evidenced by 99.8% industrial occupancy rate

Most industrial leases have fixed annual escalations up to 3.5%, providing contractual revenue growth

Industrial demand, particularly in the manufacturing sector, is projected to continue outperforming other asset classes in the foreseeable future, driven by reshoring initiatives

Portfolio Industrial Growth

$ in Millions

Total Gross Assets

$1,358

38%

$1,209

47%

$1,456 $1,555

$1,651

63%

60%

56%

$1,601 $1,571

$1,774 $1,773

35%

51%

69%

Industrial % of Annualized Straight-line Base Rent

2018 2019 2020 2021 2022 2023 2024 2025 Q1 2026

Growing Industrial Concentration

Decades of combined management experience investing in net lease assets and evaluating tenant credit

Gross asset base of $1.8 billion as of March 31, 2026

2015 - 2025 total revenue and total gross assets growth of 93% and 78%, respectively

2022 - Q1 2026 moderate increase in gross assets driven primarily by strategic selling of non-core office assets to reinvest in new industrial assets

History of monthly dividend returns to shareholders - in 2025, distributed more than $68.6 million in dividends to

Total Revenue

$ in Millions

$149.0 $147.6 $149.4

$133.2 $137.7

$106.8

$114.4

$94.8

$161.3 $165.7

preferred, common, and senior common shareholders

2017 2018 2019 2020 2021 2022 2023 2024 2025 LTM

Q1 2026

Total Gross Assets

Funds from Operations

$ in Millions, Office & Other % of Annualized Straight-Line Rent

$1,651

$1,358

$1,456

$1,555

$1,601 $1,571

$1,209

65%

62%

53%

37%

49%

40%

44%

31%

Total Gross Assets

$1,774

$1,773

Per Share, As Adjusted For Comparability

2018 2019 2020 2021 2022 2023 2024 2025 Q1

2026

$1.54

$1.58

$1.55 $1.56

$1.60 $1.54

$1.46

$1.41

$1.38 $1.40

2017 2018 2019 2020 2021 2022 2023 2024 2025 LTM

Q1 2026

20+ Year History of Net Lease Investing

Rent Expirations by Year

GOOD portfolio occupancy has never declined below 95%

As of March 31, 2026, industrial occupancy was 99.8%, and office occupancy was 91.4%, both above national averages

Tenants often have heavy fixed machinery and equipment investment in a site, resulting in prohibitive relocation costs

Tenants are willing to sign long term leases - GOOD's average lease term is 7.3 years, and more than 74% of annualized straight-line base rent expires in 2029 or later

As % of Annualized Straight-Line Base Rent

7.1%

10.4%

7.7%

7.5%

12.2%

5.4%

49.7%

2026 2027 2028 2029 2030 3031 Thereafter

Historical Occupancy

% of Square Feet

98.8% 96.8% 99.5% 97.4% 97.9% 98.0% 99.1% 97.0% 95.3% 97.2% 96.8% 96.8% 98.7% 99.1% 98.7%

Occupancy has never declined below 95.0%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q1 2026

Note: All statistics as of March 31, 2026 unless otherwise stated. Occupancy as of December 31 of respective year.

- 8 -

Mission Critical Assets

Tenant Underwriting Analysis

A majority of GOOD's tenants are privately held

53% of GOOD tenants are investment grade rated or not

rated, investment grade equivalent

In GOOD's 20+ year history spanning multiple economic cycles, only six tenants have ever defaulted

GOOD monitors tenant financial condition post-close to proactively manage the portfolio

Consistently high cash rent collection - 100% of cash rents collected in 2021-2026 (through April 2026), and 99% cash rent collection in 2020 (overlapping with COVID-19 pandemic)

Financial Forecast

Balance Sheet Analysis

Stress Test / Downside Scenario

Leverage Analysis Industry Research

Competitor Benchmarking

Publicly-Traded vs. Privately-Held Tenants

Tenant Credit Ratings

As % of Annualized Straight-Line Base Rent As % of Annualized Straight-Line Base Rent

Not Rated,

Rated, Investment Grade

19%

Public 39%

Non-Investment Grade Equivalent 36%

Private 61%

Rated, Non-Investment Grade

11%

Rated Investment Grade and Not Rated, Investment Grade Equivalent: 53%

Not Rated, Investment Grade Equivalent

34%

Robust Underwriting Platform

Fixed vs Floating Rate Debt

Since 2015, GOOD has decreased net debt / gross assets

from 56.9% to 47.0%

In addition to the low leverage ratio, approximately 96% of outstanding debt is fixed rate or hedged floating rate -only 4% of debt is floating rate

GOOD's capital structure allows patience and flexibility

Since January 1, 2022, GOOD has repaid net $205.6 million of mortgage debt and grown its unencumbered asset base by over 60%

The Company is well-positioned for accretive industrial acquisitions with $83.3 million in available liquidity via revolving credit facility and cash on hand

Hedged Floating Rate

48%

Floating Rate 4%

Fixed Rate 48%

Scheduled Debt Maturities

20.1%

12.2%

2.8%

0.5%

1.3%

32.0% 31.1%

2026 2027 2028 2029 2030 2031 2032+

Conservative Balance Sheet

Lease term: 11.3 years

$44.0 million

Purchase:

140,304 SF

Cold storage and food processing

Facility:

Dallas Fort-Worth, TX (MSA)

Location:

American Meat Company provides a wide range of meat processing services

Tenant:

Industrial acquisition

Deal Type:

American Meat Company (Acquisition)

G&H Pets (Acquisition)

Deal Type:

Industrial acquisition

Tenant:

G&H Pets produces premium

freeze-dried raw pet food

under several brands including

Dr. Marty Pets

Location:

Milwaukee, WI (MSA)

Facility:

303,991 SF

Pet food production and cold

storage

Purchase:

$62.7 million

Lease term:

19.4 years

Yanfeng (Acquisition)

Deal Type:

Industrial acquisition

Tenant:

Yanfeng is a global leader in

automotive interior

components and safety

systems

Location:

Detroit, MI (MSA)

Facilities:

215,102 total SF

(3 properties)

Manufacturing and distribution

Purchase:

$16.3 million

Lease term:

10.0 years

Recent Case Studies (1/2)

GOOD negotiated a full building lease for an additional 11+ years with Moss (previously a subtenant in 40% of the building), continuing 100% building occupancy since acquisition in 2016

Overview:

Ft. Lauderdale, FL

Location:

Moss provides general contracting services throughout the southeast United States

Tenant:

Office direct lease

Deal Type:

Moss (Portfolio Management)

TI Automotive (Acquisition)

Deal Type:

Industrial portfolio acquisition

(sale leaseback)

Tenant:

TI Automotive is a Tier 1

automotive supplier

Locations:

Michigan

Indiana

Georgia

Facilities:

693,236 total SF

(9 properties)

Tier 1 automotive

manufacturing facilities

Purchase:

$54.5 million

Lease term:

20.0 years

W-Industries (Acquisition)

Deal Type:

Industrial portfolio acquisition

(sale leaseback)

Tenant:

CSE W-Industries

manufactures specialized

electrical and hydraulic

systems

Location:

Houston, TX

Facility:

215,474 total SF

(5 properties)

Industrial manufacturing

facility

Purchase:

$29.3 million

Lease term:

10.0 years

Recent Case Studies (2/2)

Mission-

Critical Real Estate

Long Term

Leases with Contractual Rent Growth

Proactive

Asset Management

Rigorous

Tenant Credit and Real Estate Underwriting

Accretive

Capital Structure

Path of

Growth Markets

Investment Philosophy

Appendix

Institutional stock ownership increased from 26.8% in 2013 to 51.8% as of March 31, 20261

Balance sheet remains below 50% levered

Weighted average interest rate on mortgage debt of just 4.20%

Current capital structure as of March 31, 2026 (Dollars in $000)

Common Equity2, 35.3%

Preferred Equity, 12.3%

Senior Unsecured Notes, 10.0%

Line of Credit & Term Loan, 27.3%

Net Mortgage Debt, 15.1%

$1,750,000

$1,500,000

Capital Structure Details

(Dollars in $000s, except stock price) Wtd. Average Rate 3/31/2026

Mortgage Notes Payable, Net 4.20% $ 245,991

Less: Cash & Cash Equivalents (7,964)

Net Mortgage Debt $ 238,027

Line of Credit SOFR+1.60% $ 34,270

Term Note, Net SOFR+1.55% 397,874

Line of Credit, Term Loan, Net, and Senior Unsecured Notes, Net

590,394

Senior Unsecured Notes, Net 6.22% 158,250

$1,250,000

$1,000,000

$750,000

Total Debt, Net $ 828,421

Series E - Preferred 6.625% $ 76,536

Series F - Preferred 6.00% 18,409

Series G - Preferred 6.00% 99,772

$500,000

Total Preferred Equity $ 194,717

Diluted Common Shares Outstanding 48,768,782

Implied Common Equity2 Market Capitalization $ 557,427

Stock Price $ 11.43

$250,000

Enterprise Value $ 1,580,565

1 Source: Nasdaq Online.

Total = $1,581mm

2 Common Equity is based on the closing common stock price per share as of March 31, 2026 of $11.43 and includes effect of OP units and convertible senior common stock.

Capital Structure Overview

David Gladstone

Chairman

25+ years of experience

Buzz Cooper

CEO and President

25+ years of experience

Gary Gerson

Executive Vice President, CFO, and Assistant Treasurer

25+ years of experience

Jay Beckhorn

Treasurer

25+ years of experience

Current Chairman of all five Gladstone funds, public companies #7, #8, #9 and #10 in his career

Former CEO of the Company from inception (2003) to March 2026

Former Chairman of Allied Capital Commercial (REIT), Allied Capital and American Capital

Former board member of Capital Automotive REIT

MBA from Harvard Business School, MA from American University, BA from University of Virginia

Current CEO and President of the Company; 20+ years with Gladstone

Former Principal of Allied Commercial Corporation REIT, where his responsibilities ranged from buying loans from RTC and banks to making real estate backed loans

BA from Washington and Lee University

Current Executive Vice President, CFO, and Assistant Treasurer of the Company

Former CFO of Spotted Hawk Development, LLC, an Apollo Investment Corporation portfolio company

Former Treasurer of the Gladstone Companies

Former AVP of Finance at The Bozzuto Group

Former Director of Finance at PG&E National Energy Group

MBA from Yale School of Management, BSME from the US Naval Academy

CPA in the Commonwealth of Virginia, CFA Charterholder

Current Treasurer of the Company and Gladstone Land, Assistant Treasurer of Gladstone Capital and Gladstone Investment

Former Regional Managing Director of Heavenrich & Co.

Former Senior Vice President of Sunrise Senior Living

Former Managing Director of Riggs Bank

MBA from Duke University, BA from Colgate University

Experienced Leadership Team

Ryan Carter

Executive Vice President, Head of West and Midwest Regions

25+ years of experience

Todd McDonald

Senior Vice President, South Central Region

9+ years of experience

Nick Lindsay

Vice President, Northeast and Southeast Regions

9+ years of experience

John Sateri

Chief Investment Officer

25+ years of experience

Current Executive Vice President of the Company

Manages regional acquisition and asset management activities

Former founding partner of Porthaven Partners, LLC

Former Director with Stan Johnson Company

MBA from Oklahoma State University, BSBA from the University of Tulsa

Manages regional acquisition and asset management activities

Former Credit Team Lead and member of the Wholesale Loan Group at United Bankshares

BS from Washington and Lee University

Manages regional acquisition and asset management activities

Former private equity investor with H.I.G. Capital in the LBO Fund

Former investment banking analyst and member of the Industrials group at Harris Williams

MBA from UNC Kenan-Flagler, BS from McIntire School of Commerce at the University of Virginia

Current Chief Investment Officer; 19+ years with Gladstone

Former Principal at Commercial Analytics

Former Vice President at Wachovia, a Wells Fargo Bank

Master's in Real Estate Development from the University of Maryland, BBA from University of Hawai'i at Manoa

Experienced Leadership Team

($ in thousands, except per share amounts) For the three months ended (unaudited)

3/31/2026

12/31/2025

3/31/2025

Operating revenues

Lease revenue

$ 41,909

$ 43,461

$ 37,501

Total operating revenues

$ 41,909

$ 43,461

$ 37,501

Operating expenses

Depreciation and amortization

$ 14,796

$ 15,482

$ 13,243

Property operating expenses

7,035

7,057

6,900

Base management fee

1,735

1,733

1,568

Incentive fee

597

709

640

Administration fee

671

650

622

General and administrative

1,006

836

885

Total operating expense before incentive fee waiver

$ 25,840

$ 26,467

$ 23,858

Incentive fee waiver

(597)

(100)

Total operating expenses

$ 25,243

$ 26,367

$ 23,858

Other (expense) income Interest expense

$ (11,453)

$ (12,014)

$ (9,138)

Gain on sale of real estate, net

1,783

Other (expense) income

(24)

302

631

Total other (expense) income, net

$ (9,694)

$ (11,712)

$ (8,507)

Net income

$ 6,972

$ 5,382

$ 5,136

Net income available to non-controlling interests

(3)

(2)

Net income available to the company

$ 6,969

$ 5,380

$ 5,134

Distributions attributable to Series E, F, and G preferred stock

(3,042)

(3,048)

(3,108)

Distributions attributable to senior common stock

(98)

(102)

(101)

Gain (loss) on extinguishment of Series F preferred stock

(10)

Net income available to common stockholders

$ 3,833

$ 2,235

$ 1,915

Consolidated Statements of Operations

($ in thousands, except per share amounts) For the three months ended (unaudited)

3/31/2026

12/31/2025

3/31/2025

Net income

$ 6,972

$ 5,382

$ 5,136

Less: Distributions attributable to preferred and senior common stock

(3,140)

(3,150)

(3,209)

Add/Less: Gain (loss) on extinguishment of Series F preferred stock, net

(10)

Net income available to common stockholders and Non-controlling OP Unitholders

$ 3,836

$ 2,237

$ 1,917

Adjustments:

Add: Real estate depreciation and amortization

$ 14,796

$ 15,482

$ 13,243

Less: Gain on sale of real estate, net

(1,783)

FFO available to common stockholders and Non-controlling OP Unitholders - basic

$ 16,849

$ 17,719

$ 15,160

Add: Convertible senior common distributions

102

101

FFO available to common stockholders and Non-controlling OP Unitholders - diluted

$ 16,947

$ 17,821

$ 15,261

FFO available to common stockholders and Non-controlling OP Unitholders - basic

$ 16,849

$ 17,719

$ 15,160

Add: Asset retirement obligation expense

Add: Realized loss on interest rate hedging instruments

Core FFO available to common stockholders and Non-controlling OP Unitholders - basic

$ 16,915

$ 17,755

$ 15,194

Add: Convertible senior common distributions

102

101

Core FFO available to common stockholders and Non-controlling OP Unitholders -

diluted

$ 17,013

$ 17,857

$ 15,295

Weighted average common shares outstanding and Non-controlling OP Units - basic

48,446,467

48,442,596

44,646,486

Weighted average common shares outstanding and Non-controlling OP Units - diluted

48,768,782

48,764,911

44,975,890

FFO per weighted average share of common stock and Non-controlling OP Unit - basic

$ 0.35

$ 0.37

$ 0.34

FFO per weighted average share of common stock and Non-controlling OP Unit - diluted

$ 0.35

$ 0.37

$ 0.34

Core FFO per weighted average share of common stock and Non-controlling OP Unit -

basic

$ 0.35

$ 0.37

$ 0.34

Core FFO per weighted average share of common stock and Non-controlling OP Unit -diluted

$ 0.35

$ 0.37

$ 0.34

Distributions declared per share of common stock and Non-controlling OP Unit

$ 0.30

Funds from Operations (FFO) and Core FFO

($ in thousands) 3/31/2026

12/31/2025

ASSETS

(unaudited)

Real estate, at cost

$ 1,392,680

$ 1,390,445

Less: accumulated depreciation

370,491

359,513

Total real estate, net

1,022,189

1,030,932

Lease intangibles, net

112,569

115,579

Real estate and related assets held for sale, net

11,080

11,260

Cash and cash equivalents

7,964

10,810

Restricted cash

5,566

5,781

Funds held in escrow

2,085

5,336

Right-of-use assets from operating leases

3,641

3,707

Right-of-use assets from finance leases, net

2,856

2,877

Deferred rent receivable, net

48,753

47,922

Other assets

14,285

12,729

TOTAL ASSETS

$ 1,230,988

$ 1,246,933

LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES

Mortgage notes payable, net

$ 245,991

$ 250,193

Borrowings under revolver and term loan, net

432,144

435,072

Senior unsecured notes, net

158,250

158,201

Deferred rent liability, asset retirement obligation and other liabilities, net

60,970

61,534

TOTAL LIABILITIES

$ 897,355

$ 905,000

MEZZANINE EQUITY

Series E and G redeemable preferred stock, net

$ 170,041

TOTAL MEZZANINE EQUITY

$ 170,041

STOCKHOLDERS' EQUITY

Senior common stock

$ 1

Common stock

Series F redeemable preferred stock

Additional paid in capital

841,256

841,574

Accumulated other comprehensive income

6,028

3,314

Distributions in excess of accumulated earnings

(683,857)

(673,168)

TOTAL STOCKHOLDERS' EQUITY

$ 163,477

$ 171,770

OP Units held by Non-controlling OP Unitholders

115

122

TOTAL EQUITY

$ 163,592

$ 171,892

TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY

$ 1,230,988

$ 1,246,933

Consolidated Balance Sheets

Disclaimer

Gladstone Commercial Corporation published this content on May 12, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 12, 2026 at 19:13 UTC.