Gladstone mercial (GOOD) - 2025 Q4 - Annual Results

Financial Performance - Total operating revenue for Q4 2025 was $43,461,000, an increase of 6.4% from $40,841,000 in Q3 2025[3] - Net income for Q4 2025 reached $5,382,000, representing a 30.1% increase compared to $4,137,000 in Q3 2025[3] - Funds from operations (FFO) available to common stockholders for Q4 2025 was $17,821,000, an 8.9% increase from $16,366,000 in Q3 2025[3] - Total operating revenue for the year ended December 31, 2025, was $161,336,000, an 8.0% increase from $149,388,000 in 2024[6] - Net income for the year ended December 31, 2025, was $19,292,000, a decrease of 19.8% from $24,040,000 in 2024[6] - Core funds from operations available to common stockholders for the year ended December 31, 2025, was $65,669,000, a 9.1% increase from $60,177,000 in 2024[6] - FFO available to common stockholders for FY 2025 was $64.9 million, an 8.8% increase compared to FY 2024, equating to $1.38 per share[13] - Core FFO for FY 2025 was $65.7 million, a 9.1% increase compared to FY 2024, equating to $1.40 per share[13] Asset and Equity Management - Total assets as of December 31, 2025, were $1,246,933,000, a decrease of 1.4% from $1,265,003,000 as of September 30, 2025[4] - Total equity and mezzanine equity decreased to $341,933,000, down 3.7% from $354,999,000 as of September 30, 2025[4] - Total assets increased to $1,246.9 million, a 13.9% increase from $1,094.3 million[10] Leasing and Property Management - The company maintained a square feet leased rate of 99.1% as of December 31, 2025[4] - Leased 305,589 square feet of previously vacant space with lease terms ranging from 5.3 to 11.7 years[10] - Renewed leases for 884,327 square feet with remaining terms from 0.7 to 11.3 years[10] - Collected 100% of 2025 base rent throughout the year[10] Capital and Financing Activities - Issued 4.4 million shares of common stock for net proceeds of $61.0 million under the ATM Program[10] - Increased credit facility from $155.0 million to $600.0 million, extending maturity dates to 2029 and 2030[10] - Paid monthly cash distributions totaling $1.20 per share on common stock and Non-controlling OP Units[10] Risks and Uncertainties - Gladstone Commercial's forward-looking statements regarding income stability and portfolio growth are subject to risks and uncertainties[23] - The company emphasizes the importance of its ability to raise additional capital and secure financing for operations and debt refinancing[23] - Economic downturns and tenant performance are significant factors that may impact actual results compared to forecasts[23] - Competition affects efforts to renew existing leases or re-lease space, which could influence overall performance[23] - Changes in interest rates are highlighted as a potential risk to the company's financial outlook[23]