Gladstone Commercial
Market Cap
US$607.1m
Last Updated
2020/05/30 02:54 UTC
Data Sources
Company Financials +
Executive Summary
Gladstone Commercial Corporation is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -9.9% per year for the next 3 years
Currently unprofitable and not forecast to become profitable over the next 3 years
+ 1 more risk
Snowflake Analysis
Established dividend payer with adequate balance sheet.
Share Price & News
How has Gladstone Commercial's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GOOD's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
9.1%
GOOD
5.5%
US REITs
2.7%
US Market
1 Year Return
-15.0%
GOOD
-9.8%
US REITs
9.1%
US Market
Return vs Industry: GOOD underperformed the US REITs industry which returned -9.8% over the past year.
Return vs Market: GOOD underperformed the US Market which returned 9.1% over the past year.
Shareholder returns
| GOOD | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.1% | 5.5% | 2.7% |
| 30 Day | 13.4% | 1.0% | 4.5% |
| 90 Day | -5.0% | -10.5% | 2.3% |
| 1 Year | -7.5%-15.0% | -6.0%-9.8% | 11.5%9.1% |
| 3 Year | 6.5%-15.8% | 10.3%-3.4% | 30.6%22.0% |
| 5 Year | 56.4%3.7% | 40.2%11.2% | 57.2%39.5% |
Price Volatility Vs. Market
How volatile is Gladstone Commercial's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Could Gladstone Commercial Corporation's (NASDAQ:GOOD) Investor Composition Influence The Stock Price?3 weeks ago | Simply Wall St
Industry Analysts Just Upgraded Their Gladstone Commercial Corporation (NASDAQ:GOOD) Revenue Forecasts By 11%1 month ago | Simply Wall St
Did Changing Sentiment Drive Gladstone Commercial's (NASDAQ:GOOD) Share Price Down By 37%?Valuation
Is Gladstone Commercial undervalued compared to its fair value and its price relative to the market?
32.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GOOD ($17.92) is trading below our estimate of fair value ($26.52)
Significantly Below Fair Value: GOOD is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GOOD is unprofitable, so we can't compare its PE Ratio to the REITs industry average.
PE vs Market: GOOD is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate GOOD's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: GOOD is overvalued based on its PB Ratio (2.8x) compared to the US REITs industry average (1.4x).
Next Steps
Future Growth
How is Gladstone Commercial forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
-9.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GOOD is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: GOOD is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: GOOD is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: GOOD's revenue (3.4% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: GOOD's revenue (3.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if GOOD's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Gladstone Commercial performed over the past 5 years?
-32.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GOOD is currently unprofitable.
Growing Profit Margin: GOOD is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: GOOD is unprofitable, and losses have increased over the past 5 years at a rate of -32.1% per year.
Accelerating Growth: Unable to compare GOOD's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: GOOD is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (5.3%).
Return on Equity
High ROE: GOOD has a negative Return on Equity (1.9%), as it is currently unprofitable.
Next Steps
Financial Health
How is Gladstone Commercial's financial position?
Financial Position Analysis
Short Term Liabilities: GOOD's short term assets ($58.3M) exceed its short term liabilities ($14.7M).
Long Term Liabilities: GOOD's short term assets ($58.3M) do not cover its long term liabilities ($708.4M).
Debt to Equity History and Analysis
Debt Level: GOOD's debt to equity ratio (178.3%) is considered high.
Reducing Debt: GOOD's debt to equity ratio has reduced from 241.7% to 178.3% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable GOOD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: GOOD is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 16.4% per year.
Next Steps
Dividend
What is Gladstone Commercial's current dividend yield, its reliability and sustainability?
8.38%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: GOOD's dividend (8.38%) is higher than the bottom 25% of dividend payers in the US market (1.69%).
High Dividend: GOOD's dividend (8.38%) is in the top 25% of dividend payers in the US market (4.48%)
Stability and Growth of Payments
Stable Dividend: GOOD's dividends per share have been stable in the past 10 years.
Growing Dividend: GOOD's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (124.8%), GOOD's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GOOD's dividends in 3 years are forecast to be thoroughly covered by earnings (2.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
10.3yrs
Average management tenure
CEO
David Gladstone (77yo)
17.17yrs
Tenure
US$70,898
Compensation
Mr. David John Gladstone is the Founder of The Gladstone Companies and has been its Chief Executive Officer and Chairman since inception in 2003. Mr. Gladstone founded Gladstone Commercial Corporation in 2 ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 17.17yrs | US$70.90k | 1.41% $8.6m | |
| Vice Chairman & COO | 12.83yrs | US$169.24k | no data | |
| President | 7.92yrs | no data | 0.17% $1.0m | |
| Chief Financial Officer | 3.5yrs | US$95.38k | 0.032% $192.3k | |
| Investor Relations Specialist | no data | no data | no data | |
| Chief Compliance Officer | 12.67yrs | no data | no data | |
| General Counsel & Secretary | no data | no data | 0.011% $65.0k | |
| Senior Managing Director | no data | no data | no data | |
| Senior Managing Director | no data | no data | no data | |
| Managing Director | 2.83yrs | no data | no data |
10.3yrs
Average Tenure
59yo
Average Age
Experienced Management: GOOD's management team is seasoned and experienced (10.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 17.17yrs | US$70.90k | 1.41% $8.6m | |
| Vice Chairman & COO | 12.83yrs | US$169.24k | no data | |
| Independent Director | 5.58yrs | US$37.00k | 0.026% $160.6k | |
| Independent Director | 16.75yrs | US$37.00k | 0.0052% $31.5k | |
| Independent Director | 16.75yrs | US$44.50k | 0.099% $599.7k | |
| Lead Independent Director | 16.75yrs | US$38.00k | 0.036% $215.8k | |
| Independent Director | 16.42yrs | US$48.00k | 0.0078% $47.5k | |
| Independent Director | 5.5yrs | US$37.00k | 0.0083% $50.4k |
16.6yrs
Average Tenure
74yo
Average Age
Experienced Board: GOOD's board of directors are seasoned and experienced ( 16.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GOOD insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.6%.
Top Shareholders
Company Information
Gladstone Commercial Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Gladstone Commercial Corporation
- Ticker: GOOD
- Exchange: NasdaqGS
- Founded: 2003
- Industry: Diversified REITs
- Sector: Real Estate
- Implied Market Cap: US$607.073m
- Market Cap: US$608.114m
- Shares outstanding: 34.41m
- Website: https://www.gladstonecommercial.com
Location
- Gladstone Commercial Corporation
- 1521 Westbranch Drive
- Suite 100
- McLean
- Virginia
- 22102
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GOOD | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Aug 2003 |
| GLE | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Aug 2003 |
| 0IVQ | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Aug 2003 |
| GOOD.P | NasdaqGM (Nasdaq Global Market) | PFD SER A | US | USD | Jan 2006 | |
| GOOD.O | NasdaqGM (Nasdaq Global Market) | PFD B 7.50% | US | USD | Oct 2006 | |
| GOOD.M | NasdaqGS (Nasdaq Global Select) | PFD SER D | US | USD | May 2016 | |
| GOOD.N | NasdaqGS (Nasdaq Global Select) | 6.625 SR E PFD | US | USD | Sep 2019 |
Biography
Gladstone Commercial Corporation is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States. Including payments through March 2020, Gladstone Commercial has paid 183 consecutive monthly cash distributions on its common stock. Prior to paying distributions on a monthly basis, Gladstone Commercial paid five consecutive quarterly cash distributions. The company has also 47 consecutive monthly cash distributions on its Series D Preferred Stock and six consecutive monthly cash distributions on its Series E Preferred Stock. Gladstone Commercial has never skipped, reduced or deferred a distribution since its inception in 2003.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/30 02:54 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.