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Gladstone Commercial Corporation

GOOD
64
REIT - Diversified · Real Estate
Also trades as: 0IVQ.L
Price
$12.91
-0.07 (-0.54%)
Market Cap
$624.9M
Exchange
NASDAQ
Winston Score
64
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Strong
Growth
Strong
Cash Flow
Exceptional
Stability
Weak
Valuation
Mixed

Share count rising — dilution

+29.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 36.5M (2021) → 47.2M (2025)

Winston Score History

The full picture

Gladstone Commercial Corporation is a real estate investment trust (REIT) that owns and leases office and industrial buildings across the United States. It rents these properties to a wide range of businesses, from small companies to larger corporations, under long-term lease agreements. The company focuses on single-tenant properties, meaning one business typically occupies each building it owns.

Gladstone Commercial makes money by collecting rent from its tenants, and it is required by law to pay out most of its earnings to shareholders as dividends, which is how all REITs work. It operates across roughly 25 or more states, with a portfolio of around 100 properties, giving it geographic diversity. Its long-term leases provide relatively steady income, but the company carries meaningful debt, and rising interest rates can increase borrowing costs and pressure profitability. The shift away from traditional office space remains a key risk as remote work trends continue to reshape demand.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+11.3% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+249.2% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Cash Position

Cash flow positive

$10M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Gladstone Commercial Corporation is a rare growth stock that's already generating positive cash flow while growing at 11%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
100.0%
Premium pricing power — 100.0% gross margin
Profit after running costs
Operating Margin
40.5%
Excellent — 40.5% operating margin
Return on the money invested
ROCE
4.8%
Weak — 4.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
+10.8%
Steady sales growth (+10.8% YoY)
Profit growth
EPS YoY
+20.2%
Earnings growing fast (+20.2% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is
EPS Consistency
7/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
355%
Turns 355% of profit into real cash
Spare cash per sale
FCF Margin
33.9%
Converts sales into free cash efficiently (33.9%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
7.11
Heavy debt load (7.11)
Covers its interest
Interest Cover
1.46x
Dangerous — barely covers interest (1.5x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit
P/E Ratio (TTM)
24.3x
Growth-priced — P/E 24.3

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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