Gladstone Commercial (GOOD) Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, February 19, 2026 astatine 8:57 AM CST 21 min read

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Feb. 19, 2026 astatine 8:30 a.m. ET

• Chairman and Chief Executive Officer — David Gladstone

• President — Buzz Cooper

• Chief Financial Officer — Gary Gerson

• Chief Investment Officer — Catherine Gerkis

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Today, we volition sermon FFO, which is funds from operations, a non-GAAP accounting word defined arsenic nett income, excluding the gains oregon losses from the merchantability of existent property and immoderate impairment losses connected property, positive depreciation and amortization of existent property assets. We whitethorn besides sermon halfway FFO, which is mostly FFO adjusted for definite different nonrecurring revenues and expenses. We judge these metrics tin beryllium a amended denotation of our operating results and let amended comparability of our period-over-period performance. Now fto america crook the presumption to Buzz Cooper, Gladstone Commercial Corporation’s President.

David Gladstone: Thank you, Catherine, and convey you each for joining today’s call. We are pleased to update you connected our results for the twelvemonth ended 12/31/2025, our existent portfolio, and our 2026 outlook. 2025 was a productive twelvemonth for our portfolio. During the year, we acquired implicit $260,000,000 of concern assets crossed 10 facilities totaling 1,600,000 quadrate feet with a weighted mean headdress complaint of 8.88%. At closing, these properties had a weighted mean lease word of 15.9 years. We accrued portfolio concern attraction arsenic a percent of annualized straight-line rent to 69% arsenic of 12/31/2025, arsenic compared to 63% astatine the aforesaid day successful 2024.

We invested $21,000,000 successful the existing portfolio towards renewing oregon extending 1,200,000 quadrate feet of leases astatine 18 of our properties. These leases resulted successful a $2,100,000 nett summation successful GAAP rent. We sold 2 properties consisting of 1 bureau and 1 concern spot and executed an statement to merchantability different concern spot successful the coming months. We amended, extended, and upsized our syndicated slope recognition from $500,000,000 to $600,000,000 and closed connected an $85,000,000 backstage placement astatine 5.99% elder unsecured notes owed 12/15/2030.

As we person discussed successful the past, we stay steadfast successful respective cardinal absorption areas: increasing our concern concentration, adding worth successful our existing portfolio done renewals, extensions, and strategical superior investments, and disposing of non-core assets and strategically redeploying those proceeds into prime concern assets. By executing connected these absorption areas, we expect to execute accrued portfolio value, beardown occupancy rates, streamlined rental maturation crossed the portfolio, proceed to delever, and alteration the outgo of capital.