Gladstone Commercial Reports 6.4% Increase in Same-Store Lease Revenue, Expands Industrial Portfolio

Gladstone Commercial reported a 6.4% increase in same-store lease revenue compared to the same time period in 2024. The company acquired four industrial properties totaling 874,871 square feet with a weighted average lease term of approximately 14.3 years. Occupancy remained at 98.7%, and the portfolio consisted of 17 million square feet across 143 properties in 27 states.

Gladstone Commercial Corporation (Nasdaq: GOOD), a leading real estate investment trust (REIT) focused on net leased industrial properties, has reported robust performance in its semiannual business update through June 30, 2025. The company achieved a 6.4% increase in same-store lease revenue compared to the same period in 2024, underscoring its strong operational execution and strategic focus.

During the first half of 2025, Gladstone Commercial invested $152.2 million in the acquisition of four industrial properties, totaling 874,871 square feet. These properties have a weighted average lease term of approximately 14.3 years, with annualized GAAP rents of $13.2 million. The company also renewed leases on 67,709 square feet of industrial space and 55,308 square feet of office space across its portfolio, further enhancing its rental income stability.

In line with its strategy to focus on industrial assets, Gladstone Commercial sold 60,000 square feet of non-core office property and completed the sale of 676,031 square feet of non-core industrial property. This strategic pivot has resulted in an increased industrial concentration as a percentage of annualized straight-line rent, rising to 67% from 62% in 2024. As of June 30, 2025, the company's portfolio consisted of 17.0 million square feet across 143 properties in 27 states, with occupancy remaining at 98.7%.

Gladstone Commercial's President, Buzz Cooper, commented, "The team has continued to work hard in 2025 as we press forward with our growth initiatives, focusing on increasing our industrial concentration and improving the overall quality of our portfolio. We are pleased with the results through the first half of 2025 and will continue our strategy of growing our overall industrial concentration through acquisitions and strategic selling of non-core assets" [1].

The company's Chief Financial Officer, Gary Gerson, noted, "We continue to grow the industrial portfolio with accretive real estate while recycling non-core assets and renewing leases in a volatile environment and at the same time, maintaining a strong balance sheet. This is shaping up to be an outstanding year for the company and its shareholders" [1].

Gladstone Commercial's strong performance in the first half of 2025 reflects its ability to navigate market volatility and maintain a robust financial position. The company's focus on industrial properties and strategic asset management has positioned it well for future growth and value creation for shareholders.

References:
[1] https://www.ithacajournal.com/press-release/story/2964/gladstone-commercial-corporation-provides-a-semiannual-business-update/
[2] https://www.streetinsider.com/Corporate+News/Gladstone+Commercial+invests+%24152.2+million+in+industrial+properties/25068447.html
[3] https://seekingalpha.com/news/4468857-gladstone-commercial-grows-same-store-lease-revenue-by-64-in-h1
[4] https://www.stocktitan.net/news/GOOD/gladstone-commercial-corporation-provides-a-semiannual-business-q4ar15z962cc.html