Slides
Page 1
Supplemental Financial & Operating Information for the Quarter Ended September 30, 2025 | Nasdaq: GOOD
Page 2
- 2 - 1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 Legal Disclaimer Forward-Looking Statements: This presentation may include forward-looking statements within the meaning of the Securities Act of 1933 or the Securities Exchange Act of 1934. Forward-looking statements are typically identified by words such as “estimate,” “may,” “might,” “believe,” “will,” “provided,” “anticipate,” “future,” “could,” “growth,” “plan,” “project,” “intend,” “expect,” “should,” “would,” “if,” “seek,” “possible,” “potential,” “likely” or the negative or variations of such terms or comparable terminology. These forward-looking statements include comments with respect to our objectives and strategies, and the future results of our operations and our business. By their nature, these forward-looking statements involve numerous assumptions, uncertainties and descriptions of opportunities, both general and specific. The risk exists that these statements may not be fulfilled. We caution readers of this presentation not to place undue reliance on these forward- looking statements as a number of factors could cause our future results to differ materially from these statements. Any results or performance implied by forward-looking statements may be influenced by certain factors including, but not limited to, fluctuations in interest rates and stock indices, the effects of competition in the areas in which we operate, the overall impact of public health emergencies, and changes in economic, political, regulatory and technological conditions as well as those factors delineated under the caption “Risk Factors” in our Forms 10-Q and Form 10-K, and other documents we file with the SEC from time to time. Therefore, we caution that the foregoing list is not exhaustive. Investors should not rely on forward-looking statements to make decisions and should carefully consider the aforementioned factors as well as other uncertainties and events. We undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the SEC, including subsequent annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Past or Present Performance Disclaimer: This presentation includes information regarding past or present performance of the Company. Please note, past or present performance is not a guarantee of future performance or future results.
Page 3
- 3 - 1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 Table of contents About Gladstone Commercial Corporate overview Portfolio and financial overview Q3 2025 highlights (unaudited) 4 5 6 Financial overview Condensed consolidated statements of operations Funds from Operations (FFO) and core FFO Condensed consolidated balance sheets Capital structure Liquidity and debt overview Debt summary Select corporate covenants 8 9 10 11 12 13 14 Portfolio Overview Portfolio overview 16-19
Page 4
- 4 - 1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 Corporate overview About Gladstone Commercial Gladstone Commercial (Nasdaq: GOOD) is an established real estate investment trust (REIT) that invests in single tenant and anchored multi-tenant net leased assets. As of September 30, 2025 , we owned approximately 17.7 million square feet of primarily industrial and office real estate nationwide. We partner with a variety of tenants —from middle market private businesses to investment grade rated companies. We acquire properties through third party purchases, sale leaseback transactions, and by partnering with developers in build-to-suit transactions. As of September 30, 2025 , total assets were approximately $1.3 billion, representing investments in 151 properties. Our properties are leased to 110 tenants who represent 20 diversified industries across 27 states. At September 30, 2025, our leases had an average remaining term of 7.5 years. In addition, approximately 53% of our tenants have an investment grade or investment grade equivalent credit rating. Corporate Headquarters 1521 Westbranch Drive Suite 100 McLean, VA 22102 703-287-5800 www.gladstonecommercial.com Investor Relations 703-287-5893 commercial@gladstonecompanies.com Industrial building owned by Gladstone Commercial, located in Crandall, Georgia
Page 5
- 5 - 1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 Portfolio and financial overview Total assets ($mm) $ 1,265 Properties 151 Tenants 110 Industries 20 States 27 Average remaining lease term (years) 7.5 Occupancy 99.1 % Square footage owned (mm) 17.7 Common equity market capitalization2 $ 601 Preferred equity 195 Net total debt 843 Total capitalization $ 1,639 Less: Cash and cash equivalents (18) Total enterprise value $ 1,621 Top 5 tenants1 % of annualized straight line rent 5% 4% 3% 3% 2% Top 5 Tenants total 17% Top 5 Tenants average remaining lease term 7.9 years Portfolio average remaining lease term 7.5 years Net total debt / enterprise value 50.9% Net total debt + preferred / enterprise value 62.9% Net total debt / gross assets 47.4% Corporate liquidity ($mm)1 Cash and Cash Equivalents $ 18.4 Availability Under Revolving Credit Facility3 6.2 Total $ 24.6 1 As of September 30, 2025. 2 Based on the closing common stock price per share on September 30, 2025 of $12.32. Includes OP units and senior common shares convertible into shares of common stock. 3 As of November 3, 2025, approximately $63.0 million is available under the Company's revolving credit facility. Capitalization ($mm)1 Portfolio data1
Page 6
- 6 - 1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 Q3 2025 highlights (unaudited) 1 FFO is calculated as net income (computed in accordance with GAAP), excluding gains or losses from sales of property and impairment losses on property, plus depreciation and amortization of real estate assets, which we believe to be consistent with the NAREIT definition. FFO does not represent cash flows from operating activities in accordance with GAAP. FFO should not be considered an alternative to net income as an indication of our performance or to cash flows from operations as a measure of liquidity or ability to make distributions. 2Core FFO is FFO adjusted for gains from early extinguishment of debt and any other non-routine revenue or expense adjustments. 3Purchase prices do not include acquisition costs capitalized for GAAP purposes under ASU 2017-01, "Clarifying the Definition of a Business". FFO1 and Core FFO2: Acquisitions3 Dividends: Equity Issuances: Select Expenditure Activity: Generated FFO and Core FFO of $16.4 million, or $0.35 per diluted share, each. Purchased a 693,236 square foot, six-facility industrial portfolio with properties in Cartersville, Georgia; Ossian, Indiana; Ligonier, Indiana; Caro, Michigan; Chesterfield, Michigan; and Cass City, Michigan for $54.5 million, with a 20.0-year lease term. Paid monthly common stock dividends totaling $0.30 per common share for the quarter, or an annualized $1.20 per common share, as well as continued payments of monthly senior common stock dividends, Series E preferred dividends, Series F preferred dividends, and Series G preferred dividends. Issued common stock through our ATM program for net proceeds of $23.0 million. Paid $10.2 million related to capital expenditures and $0.9 million related to leasing commissions.
Page 7
1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 Financial Overview [PIC] [PIC] [PIC] [PIC] [PIC][PIC] [PIC] [PIC] [PIC] [PIC] [PIC][PIC]
Page 8
- 8 - 1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 Condensed consolidated statements of operations ($ in thousands, except per share amounts) For the three months ended (unaudited) For the nine months ended (unaudited) 9/30/2025 6/30/2025 9/30/2024 9/30/2025 9/30/2024 Operating revenues Lease revenue $ 40,841 $ 39,533 $ 39,235 $ 117,875 $ 112,013 Total operating revenues $ 40,841 $ 39,533 $ 39,235 $ 117,875 $ 112,013 Operating expenses Depreciation and amortization $ 15,271 $ 14,249 $ 13,343 $ 42,763 $ 42,683 Property operating expenses 7,409 7,258 6,681 21,568 18,373 Base management fee 1,701 1,640 1,528 4,908 4,580 Incentive fee 709 709 1,146 2,057 3,562 Administration fee 720 590 725 1,932 1,950 General and administrative 920 1,400 970 3,204 3,064 Impairment charge — 9 4,549 9 5,043 Total operating expense before incentive fee waiver $ 26,730 $ 25,855 $ 28,942 $ 76,441 $ 79,255 Incentive fee waiver (709) (709) (396) (1,417) (1,417) Total operating expenses $ 26,021 $ 25,146 $ 28,546 $ 75,024 $ 77,838 Other income (expense) Interest expense $ (10,704) $ (10,058) $ (9,299) $ (29,900) $ (28,259) (Loss) gain on sale of real estate, net (10) 377 10,319 367 10,554 Gain on debt extinguishment, net — — — — 300 Other income (expense) 31 (72) 12 590 73 Total other (expense) income, net $ (10,683) $ (9,753) $ 1,032 $ (28,943) $ (17,332) Net income $ 4,137 $ 4,634 $ 11,721 $ 13,908 $ 16,843 Net income available to non-controlling interests (1) (1) (44) (4) (35) Net income available to the company $ 4,136 $ 4,633 $ 11,677 $ 13,904 $ 16,808 Distributions attributable to Series E, F, and G preferred stock (3,058) (3,085) (3,106) (9,251) (9,334) Distributions attributable to senior common stock (102) (101) (106) (304) (317) Gain (loss) on extinguishment of Series F preferred stock 6 9 2 5 (4) Net income available to common stockholders $ 982 $ 1,456 $ 8,467 $ 4,354 $ 7,153
Page 9
- 9 - 1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 Funds from Operations (FFO) and core FFO ($ in thousands, except per share amounts) For the three months ended (unaudited) For the nine months ended (unaudited) 9/30/2025 6/30/2025 9/30/2024 9/30/2025 9/30/2024 Net income $ 4,137 $ 4,634 $ 11,721 $ 13,908 $ 16,843 Less: Distributions attributable to preferred and senior common stock (3,160) (3,186) (3,212) (9,555) (9,651) Add/Less: Gain (loss) on extinguishment of Series F preferred stock, net 6 9 2 5 (4) Net income available to common stockholders and Non-controlling OP Unitholders $ 983 $ 1,457 $ 8,511 $ 4,358 $ 7,188 Adjustments: Add: Real estate depreciation and amortization $ 15,271 $ 14,249 $ 13,343 $ 42,763 $ 42,683 Add: Impairment charge — 9 4,549 9 5,043 Add: Loss on sale of real estate, net 10 — — — — Less: Gain on sale of real estate, net — (377) (10,319) (367) (10,554) Less: Gain on debt extinguishment, net — — — — (300) FFO available to common stockholders and Non-controlling OP Unitholders - basic $ 16,264 $ 15,338 $ 16,084 $ 46,763 $ 44,060 Add: Convertible senior common distributions 102 101 106 304 317 FFO available to common stockholders and Non-controlling OP Unitholders - diluted $ 16,366 $ 15,439 $ 16,190 $ 47,067 $ 44,377 FFO available to common stockholders and Non-controlling OP Unitholders - basic $ 16,264 $ 15,338 $ 16,084 $ 46,763 $ 44,060 Add: Write off shelf registration statement costs and prepaid ATM costs — — — — 183 Add: Write off prepaid offering costs — 305 — 305 — Add: Asset retirement obligation expense 34 34 33 102 99 Add: Bad debt write off — — — — 64 Add: Closing costs on sale — 336 — 336 — Add: Realized loss on interest rate hedging instruments — — 51 — 132 Core FFO available to common stockholders and Non-controlling OP Unitholders - basic $ 16,298 $ 16,013 $ 16,168 $ 47,506 $ 44,538 Add: Convertible senior common distributions 102 101 106 304 317 Core FFO available to common stockholders and Non-controlling OP Unitholders - diluted $ 16,400 $ 16,114 $ 16,274 $ 47,810 $ 44,855 Weighted average common shares outstanding and Non-controlling OP Units - basic 46,917,160 46,259,137 42,830,159 45,949,245 41,238,296 Weighted average common shares outstanding and Non-controlling OP Units - diluted 47,245,719 46,587,696 43,169,458 46,277,804 41,577,595 FFO per weighted average share of common stock and Non-controlling OP Unit - basic $ 0.35 $ 0.33 $ 0.38 $ 1.02 $ 1.07 FFO per weighted average share of common stock and Non-controlling OP Unit - diluted $ 0.35 $ 0.33 $ 0.38 $ 1.02 $ 1.07 Core FFO per weighted average share of common stock and Non-controlling OP Unit - basic $ 0.35 $ 0.35 $ 0.38 $ 1.03 $ 1.08 Core FFO per weighted average share of common stock and Non-controlling OP Unit - diluted $ 0.35 $ 0.35 $ 0.38 $ 1.03 $ 1.08 Distributions declared per share of common stock and Non-controlling OP Unit $ 0.30 $ 0.30 $ 0.30 $ 0.90 $ 0.90
Page 10
- 10 - 1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 Condensed consolidated balance sheets ($ in thousands) 9/30/2025 (unaudited) 12/31/2024 ASSETS Real estate, at cost $ 1,400,357 $ 1,211,793 Less: accumulated depreciation 350,153 319,646 Total real estate, net 1,050,204 892,147 Lease intangibles, net 120,338 95,107 Real estate and related assets held for sale, net — 4,363 Cash and cash equivalents 18,400 10,956 Restricted cash 6,232 4,118 Funds held in escrow 5,909 5,367 Right-of-use assets from operating leases 3,772 3,961 Right-of-use assets from finance leases, net 2,897 — Deferred rent receivable, net 46,980 45,324 Sales-type lease receivable, net — 18,618 Other assets 10,271 14,387 TOTAL ASSETS $ 1,265,003 $ 1,094,348 LIABILITIES AND STOCKHOLDERS’ EQUITY LIABILITIES Mortgage notes payable, net $ 255,528 $ 269,579 Borrowings under revolver and term loan, net 493,836 349,848 Borrowings under unsecured term loan, net 19,860 — Senior unsecured notes, net 74,061 73,958 Deferred rent liability, asset retirement obligation and other liabilities, net 66,719 59,621 TOTAL LIABILITIES $ 910,004 $ 753,006 MEZZANINE EQUITY Series E and G redeemable preferred stock, net $ 170,041 $ 170,041 TOTAL MEZZANINE EQUITY $ 170,041 $ 170,041 STOCKHOLDERS’ EQUITY Senior common stock $ 1 $ 1 Common stock 48 44 Series F redeemable preferred stock 1 1 Additional paid in capital 841,960 784,389 Accumulated other comprehensive income 3,699 10,648 Distributions in excess of accumulated earnings (660,883) (623,912) TOTAL STOCKHOLDERS' EQUITY $ 184,826 $ 171,171 OP Units held by Non-controlling OP Unitholders 132 130 TOTAL EQUITY $ 184,958 $ 171,301 TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY $ 1,265,003 $ 1,094,348
Page 11
- 11 - 1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 Capital structure Current capital structure as of September 30, 2025 (Dollars in $000) $479,000 48% Total = $1,621mm$0 $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 $1,750,000 Common Equity2, 37.1% Net Mortgage Debt, 14.6% Preferred Equity, 12.0% Line of Credit & Term Loan, 30.5% (Dollars in $000s, except stock price) Wtd. Average Rate 9/30/2025 Mortgage Notes Payable, Net 4.22% $ 255,528 Less: Cash & Cash Equivalents (18,400) Net Mortgage Debt $ 237,128 Line of Credit SOFR+1.35% $ 145,370 Term Note, Net SOFR+1.30% 348,466 Unsecured Term Loan, Net SOFR+1.55% 19,860 Senior Unsecured Notes, Net 6.47% 74,061 Line of Credit, Term Loan, Net, Unsecured Term Loan, Net, and Senior Unsecured Notes, Net $ 587,757 Total Debt, Net $ 824,885 Series E - Preferred 6.625% $ 76,536 Series F - Preferred 6.00% 19,181 Series G - Preferred 6.00% 99,772 Total Preferred Equity $ 195,489 Diluted Common Shares Outstanding 48,768,782 Stock Price $ 12.32 Implied Common Equity2 Market Capitalization $ 600,831 Enterprise Value $ 1,621,205 Capital Structure Details 1 Source: Nasdaq Online. 2 Common Equity is based on the closing common stock price per share as of September 30, 2025 of $12.32 and includes effect of OP units and convertible senior common stock. • Institutional stock ownership increased from 26.8% in 2013 to 49.8% as of September 30, 20251 • Balance sheet remains below 50% levered • Weighted average interest rate on mortgage debt of just 4.22% Senior Unsecured Notes, 4.6% Unsecured Term Loan, 1.2%
Page 12
- 12 - 1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 Scheduled debt maturity1 ($000) Mortgage Maturities Line of Credit Maturity Term Loan Maturities Unsecured Term Loan Maturity Senior Unsecured Notes Maturity 2025 2026 2027 2028 2029 2030 2031+ $0 $40,000 $80,000 $120,000 $160,000 $200,000 $240,000 $280,000 32.5% Liquidity and debt overview 1 As of September 30, 2025. Fixed vs. Floating Debt1 58.1%56.9% 48.6%47.0%46.8%46.1%45.9%45.5%45.3%46.1%44.1%47.4% Net Debt/Gross Assets 20142015201620172018201920202021202220232024 Q3 2025 20% 30% 40% 50% 60% 70%Reducing Leverage1 26.0% 1.7% 22.1% 13.0% Fixed Rate 39% Hedged Floating Rate 37% Floating Rate 24% 4.0% 0.7%
Page 13
- 13 - 1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 Debt summary ($ in thousands) Principal Maturity Date Weighted Average Interest Rate as of Principal Balance Outstanding as of 9/30/2025 9/30/2025 2025 4.59% $ 3,099 2026 4.07% 28,112 2027 4.34% 96,605 2028 4.15% 36,734 2029 5.39% 35,879 2030 3.23% 37,331 2031 3.24% 4,784 2032 3.40% 9,508 2037 4.63% 5,054 Contractual Mortgage Notes Payable: 4.22% $ 257,106 Premiums (Discounts), net: 13 Total Mortgage Notes Payable: $ 257,119 Variable-Rate Line of Credit: 2026 SOFR +1.35% $ 145,370 Variable-Rate Term Loan Facility: 2027 SOFR +1.30% $ 160,000 2026 SOFR +1.30% 40,000 2028 SOFR +1.30% 150,000 Variable-Rate Unsecured Term Loan: 2027 SOFR + 1.55% $ 20,000 Senior Unsecured Notes: 2029 6.47% $ 75,000 Total Mortgage Notes Payable, Line of Credit, Term Loan Facility, Unsecured Term Loan, Senior Unsecured Notes 5.24% $ 847,489
Page 14
- 14 - 1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 Select corporate covenants ($ in thousands) Description Threshold September 30, 2025 Consolidated Tangible Net Worth > $723,214 $993,195 Leverage Ratio < 60% 46% Fixed Charge Coverage Ratio > 1.50 1.88 Maximum Dividend Payout (FFO based) < 95% 88% Secured Indebtedness < 40% 14% Note: Covenants calculated as defined by our Credit Facility, as administered by KeyBank.
Page 15
1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 [PIC] [PIC] [PIC] [PIC] [PIC][PIC] [PIC] [PIC] [PIC] [PIC] [PIC][PIC] Portfolio Overview
Page 16
- 16 - 1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 Portfolio overview • 151 properties across the U.S., located in 27 states • Focus on secondary growth markets with higher yields • Occupancy has never fallen below 95% • Current occupancy 99.1% • 9.3% of annualized straight line rents expiring through the end of 2026 • Of 100+ assets with over $1 billion invested since inception, only six tenant defaults High occupancy Tenant and property diversity • Diverse base of 20 different industries • Primarily industrial and office property types • Focus on mid-size tenants occupying properties ranging from 30-150K SF (office) and 75-500K SF (industrial) • Sell non-core assets in non-core markets • Sold 48 properties in non-core markets since mid-2016 • Re-deploy proceeds in growth markets Periodic capital recycling Note: As of September 30, 2025. Geographic diversity
Page 17
- 17 - 1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 Diversified portfolio Note: As of September 30, 2025. 151 properties spread across 27 states As % of Annualized Straight-Line Base Rent TX 15.7 % PA 12.9 % FL 9.8 % MI 6.8 % OH 6.3 % GA 5.9 % WI 5.2 % IN 5.2 % NC 5.1 % AL 5.0 % MO 3.3 % CO 3.1 % UT 2.1 % TN 1.8 % SC 1.8 % NJ 1.8 % IA 1.6 % IL 1.0 % All Others 5.6 %
Page 18
- 18 - 1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 High quality, diversified portfolio Note: As of September 30, 2025. Industry diversification (based on annualized straight line rent) Publicly-traded vs. privately-held tenants (as % of annualized straight line rent) Tenant credit ratings (as % of annualized straight line rent) Rated Investment Grade and Non-Rated Equivalent 53% Public 39% Private 61% Rated, Investment Grade 19% Not Rated, Investment Grade Equivalent 34% Rated, Non-Investment Grade 11% Not Rated, Non-Investment Grade Equivalent 36% Automotive 19% Diversified/Conglomerate Services 11% Beverage, Food & Tobacco 10% Building and Real Estate 9%Telecommunications 8% Diversified/Conglomerate Manufacturing 8% All 14 Others 35% $140M $140M $140M Property type diversification (by annualized straight line rent) Industrial 69% Office 28% Retail 2% Medical Office 1% $140M
Page 19
- 19 - 1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164 Smooth lease rollover Note: As of September 30, 2025. Year of Lease Expiration SF of Leases Expiring Number of Expiring Leases Annualized Straight Line Rent (in thousands) % of Annualized Straight Line Rent 2026 1,676,295 9 12,998 9.3 % 2027 1,136,955 13 15,515 11.1 % 2028 1,822,647 15 10,788 7.7 % 2029 1,647,579 17 10,744 7.7 % 2030 1,035,991 13 8,026 5.7 % Thereafter 10,190,180 77 82,066 58.5 % Total 17,509,647 144 $ 140,137 100.0 % 9.3% 11.1% 7.7% 7.7% 5.7% 58.5% Annualized Straight Line Rent 2026 2027 2028 2029 2030 Thereafter0.0% 25.0% 50.0% 75.0% 100.0% Rent expiring Existing portfolio - contractual expirations
Page 20
‹#› 1.87.148 210.189.154 224.224.13 200.201.204 247.82.73 200.201.204 7.161.142 114.95.164