Gladstone Commercial upsizes credit facility to $600 million

MCLEAN, VA - Gladstone Commercial Corporation (NASDAQ:GOOD), a REIT currently trading near its 52-week low of $11.26 with a notable 10.49% dividend yield, announced Tuesday it has amended, extended and upsized its syndicated revolving credit and term loan facility from $475 million to $600 million, with an option to increase the amount by up to $250 million for a potential total of $850 million. According to InvestingPro data, the company maintains strong liquidity with a healthy current ratio of 2.31.

The real estate investment trust, with a market capitalization of $533 million, expanded its term loan component by $50 million and its revolving credit facility by $75 million. The company extended the revolving credit facility maturity to October 2029, while Term Loan A and Term Loan B components will mature in October 2029 and February 2030, respectively.

The amended facility also provides an option to extend the Term Loan C component until February 2029.

Jay Beckhorn, Treasurer of Gladstone Commercial, said the transaction was executed with support from the company’s bank group, led by Key Bank as joint lead arranger and book manager, alongside Bank of America, The Huntington National Bank and Fifth Third Bank National Association as joint lead arrangers.

"The upsized facility provides us with significant liquidity and a favorable extended debt maturity profile going forward," Beckhorn stated in the press release.

Gary Gerson, Chief Financial Officer of Gladstone Commercial, noted that two new banks joined the credit facility.

Gladstone Commercial focuses on acquiring, owning and operating net leased industrial and office properties across the United States. As of June 30, 2025, the company’s real estate portfolio consisted of 143 properties located in 27 states, totaling approximately 17.0 million square feet. For deeper insights into GOOD’s financial health and growth potential, including 8 additional ProTips and comprehensive valuation metrics, visit InvestingPro.

In other recent news, Gladstone Commercial Corporation reported mixed financial results for the second quarter of 2025. The company’s earnings per share fell short of expectations, coming in at $0.03 compared to the projected $0.0775, marking a 61.29% shortfall. However, Gladstone Commercial exceeded revenue projections, reporting $39.53 million against a forecast of $38.18 million. In a significant development, the company acquired a $54.5 million industrial portfolio in Michigan, Indiana, and Georgia, totaling 693,236 square feet, leased back to TI Group Automotive Systems under a 20-year agreement. Additionally, Gladstone Commercial extended a 10-year lease with JBT Marel Corporation for its Pennsylvania property. The company also updated its at-the-market equity offering sales agreement, adding Huntington Securities, Inc. as a new sales agent and removing Robert W. Baird & Co. Incorporated. As part of this arrangement, Gladstone Commercial has sold approximately 6,271,144 shares, generating gross proceeds of about $93.5 million, with approximately $156.5 million in shares still available for sale.

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