Overview

• US real estate investment trust's Q1 total operating revenue fell 3.6% from prior quarter

• Net income available to common stockholders rose 71.5% from previous quarter

• Core FFO per share fell 5.4%, mainly due to lease termination fee and prior settlement

Outlook

• Company did not provide specific financial guidance for the current quarter or full year in the press release

Result Drivers

• ABSENCE OF ONE-TIME ITEMS - Core FFO fell mainly due to a lease termination fee and easement settlement recognized in the prior quarter, not repeated in Q1

• LOWER INTEREST EXPENSE - Decrease in interest expense partially offset Core FFO decline, due to deferred financing fees written off in prior period

• STABLE RENT COLLECTION - Collected 100% of cash rents due during the quarter, supporting consistent revenue

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

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

• Wall Street's median 12-month price target for Gladstone Commercial Corp is $13.50, about 5.6% above its May 4 closing price of $12.78

• The stock recently traded at 86 times the next 12-month earnings vs. a P/E of 78 three months ago

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