What Gladstone Commercial Corp. told the SEC could break it.

Gladstone Commercial's revenue comes from a limited number of net-lease tenants — its five largest tenants were ~17.2% of total lease revenue across 143 leases on 151 properties — so unfavorable performance, default or non-renewal by a few tenants could materially affect returns; because many tenants are privately owned with little public financial information, it depends on its external Adviser to perform due diligence and ongoing credit assessments.

“As of December 31, 2025, we owned 151 properties and had 143 leases on these properties, and our five largest tenants accounted for approximately 17.2% of our total lease revenue.”

Gladstone Commercial funds property acquisitions with its Credit Facility, long-term private/mortgage debt and equity (a 2024 common-stock ATM raised ~$61.0M in 2025), and identifies interest-rate risk as its primary market risk — with weighted-average mortgage debt at 4.21% (2.5-year term) and senior unsecured notes at 6.22% (4.4-year term), plus leases tied to market indices; rising rates and refinancing of near-term maturities could raise borrowing costs and constrain its acquisition-driven growth.

“The primary risk that we believe we are and will be exposed to is interest rate risk. Certain of our leases contain escalations based on market indices, and the interest rate on our Credit Facility is”

Gladstone Commercial is externally managed by its Adviser and Administrator under an Advisory Agreement (including an incentive fee), and those affiliates engage in other business ventures so their resources are not dedicated exclusively to Gladstone Commercial; this external-management structure, with prohibitions on certain conflicted transactions, concentrates operational dependence on the Adviser and creates related-party conflict-of-interest risk.

“Our Adviser and Administrator also engage in other business ventures and, as a result, their resources are not dedicated exclusively to ou”

Gladstone Commercial must own and operate its properties in compliance with federal, state and local laws, and as a current/previous owner faces potential environmental-contamination liability under CERCLA and similar laws, ADA disabled-access compliance costs, and rising insurance premiums and reduced coverage availability from climate-change-driven extreme-weather risk — any of which could mean significant unplanned costs.

“Under various environmental laws, including the Comprehensive Environmental Response, Compensation and Liability Act, a current or previous owner or operator of real property may be liable for contamination resulting from the r”