Gladstone Commercial Q3 revenue slightly misses on higher property expenses

Overview

• U.S. real estate investment trust's Q3 operating revenue slightly missed analyst expectations

• Net income swung to a loss in Q3

• Core FFO fell 7.8% from prior quarter due to higher property and interest expenses

Outlook

• Company did not provide specific guidance for future quarters or the full year in its press release

Result Drivers

• HIGHER PROPERTY EXPENSES - Co said increased property expenses contributed to lower Core FFO in Q3

• HIGHER INTEREST EXPENSE - Co attributed higher interest expense to an increase in the SOFR rate

• LEASE TERMINATION FEE - Co said a lease termination fee from a property sold in the previous period reduced Core FFO

Company press release: Full Story

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the diversified reits peer group is "buy"

• Wall Street's median 12-month price target for Gladstone Commercial Corp is $14.16, about 22.3% above its November 2 closing price of $11.58

• The stock recently traded at 56 times the next 12-month earnings vs. a P/E of 58 three months ago

Reuters Recommended Reads

• Nov 2 - Realty Income's Q3 revenue beats; raises 2026 AFFO per share outlook

• Nov 2 - Independence Realty Trust Q3 adjusted EBITDA beats estimates; reaffirms FY guidance

• Nov 2 - Acadia Realty Trust Q3 revenue beats estimates, FFO rises

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)