Gladstone Commercial Corporation released its fourth‑quarter and full‑year 2025 financial results on February 18, 2026. The REIT reported a fund‑of‑funds operating income (FFO) of $0.37 per share, up 6.3% from the $0.35 per share posted in the same quarter a year earlier. Revenue for the quarter reached $43.46 million, up 6.3% from $40.84 million in Q3 2025 and surpassing analyst expectations.
The $0.37 FFO per share beat the consensus estimate of $0.36 by $0.01, a 2.8% beat. The increase was driven by higher industrial rents and disciplined cost management, which offset the impact of higher depreciation associated with the company’s expanding portfolio.
Revenue of $43.46 million exceeded the consensus estimate of $41.12 million, a $2.34 million or 5.7% beat. The growth was largely attributable to the continued demand for industrial assets, which now account for 69% of the company’s rental income, and to the addition of new properties that expanded the portfolio.
Occupancy remained strong at 99.1%, and the company maintained its $1.20 annual dividend, supported by an 85% core FFO payout ratio. The high occupancy and steady dividend underscore the REIT’s ability to generate cash flow and return value to shareholders.
Compared with Q3 2025, FFO per share rose from $0.35 to $0.37 and revenue grew from $40.84 million to $43.46 million. For the full year, revenue reached $161.3 million, an 8.0% increase from 2024, while full‑year FFO fell slightly to $1.38 per share from $1.41 in 2024, reflecting higher depreciation costs.
Investors reacted positively to the results, citing the earnings beat and the company’s continued focus on industrial assets. Management reiterated confidence in sustaining the dividend and maintaining the 85% payout ratio, while highlighting disciplined cost control and the ongoing capital‑recycling strategy that converts office holdings into higher‑yielding industrial properties.
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