Gladstone Commercial : Financial Supplement as of September 30, 2024

Supplemental Financial & Operating Information for the Quarter Ended

September 30, 2024 | Nasdaq: GOOD

Legal Disclaimer

Forward-LookingStatements: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.

- 2 -

Table of contents

About Gladstone Commercial

Corporate overview	4
Portfolio and financial overview	5
Q3 2024 highlights (unaudited)	6

Financial overview

Condensed consolidated statements of operations	8
Funds from Operations (FFO) and core FFO	9
Condensed consolidated balance sheets	10
Capital structure	11
Liquidity and debt overview	12
Debt summary	13
Select corporate covenants	14

Portfolio Overview

Portfolio overview

16-19

- 3 -

Corporate overview

Industrial building owned by Gladstone Commercial, located in

Crandall, Georgia

Corporate Headquarters	Investor Relations
1521 Westbranch Drive	703-287-5893
Suite 100	[e-mail]
McLean, VA 22102
703-287-5800
www.gladstonecommercial.com

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, 2024, we owned approximately 16.8 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, 2024, total assets were approximately $1.1 billion, representing investments in 135 properties. Our properties are leased to 107 tenants who represent 20 diversified industries across 27 states.

At September 30, 2024, our leases had an average remaining term of 7.0 years. In addition, approximately 50% of our tenants have an investment grade or investment grade equivalent credit rating.

- 4 -

Portfolio and financial overview

Portfolio data1

Total assets ($mm)	$	1,096
Properties		135
Tenants		107
Industries		20
States		27
Average remaining lease term (years)		7.0
Occupancy		98.5 %
Square footage owned (mm)		16.8

Capitalization ($mm)1

Common equity market capitalization2	$	716
Preferred equity		199
Net total debt		693
Total capitalization	$	1,608
Less: Cash and cash equivalents		(11)
Total enterprise value	$	1,597
Net total debt / enterprise value		42.7%
Net total debt + preferred / enterprise value		55.2%
Net total debt / gross assets		44.0%

Top 5 tenants1	% of annualized straight
	line rent
	5%
	4%
	3%
	2%
	2%
Top 5 Tenants total	16%
Top 5 Tenants average remaining lease term	5.1 years
Portfolio average remaining lease term	7.0 years

Corporate liquidity ($mm)1

Cash and Cash Equivalents	$	10.5
Availability Under Revolving Credit Facility3		70.2
Total	$	80.7

• As of September 30, 2024.

• Based on the closing common stock price per share on September 30, 2024 of $16.24. Includes OP units and senior common shares convertible into shares of common stock.
  3 As of November 4, 2024, approximately $73.5 million is available under the Company's revolving credit facility.

- 5 -

Q3 2024 highlights (unaudited)

FFO1 and Core FFO2:	Generated FFO and Core FFO of $16.2 million and $16.3 million, respectively, or $0.38 per diluted
	share.
Acquisitions3	Purchased a 50,102 square foot industrial property in Midland, Texas for $10.0 million, with a 15-
	year lease term.
Dividends:	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.
Equity Issuances:	Issued common stock through our ATM program for net proceeds of $38.9 million and issued Series
	F preferred stock for net proceeds of $0.1 million.
Select Expenditure Activity:	Paid $5.2 million related to capital expenditures and $3.8 million related to leasing commissions.

• 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".

- 6 -

[PIC]

Financial Overview

[PIC]

[PIC]

Condensed consolidated statements of operations

									For the nine months ended
($ in thousands, except per share amounts)		For the three months ended (unaudited)			(unaudited)
Operating revenues		9/30/2024		6/30/2024		9/30/2023			9/30/2024		9/30/2023
Lease revenue	$	39,235	$	37,057	$	36,464	$	112,013	$	111,675
Total operating revenues	$	39,235	$	37,057	$	36,464		$	112,013	$	111,675
Operating expenses
Depreciation and amortization	$	13,343	$	16,015	$	12,485	$	42,683	$	44,125
Property operating expenses		6,681		5,807		6,821			18,373		20,286
Base management fee		1,528		1,516		1,597			4,580		4,808
Incentive fee		1,146		1,245		-			3,562		-
Administration fee		725		594		624			1,950		1,734
General and administrative		970		1,046		1,306			3,064		3,437
Impairment charge		4,549		-		6,754			5,043		13,577
Total operating expense before incentive fee waiver	$	28,942	$	26,223	$	29,587		$	79,255	$	87,967
Incentive fee waiver		(396)		(250)		-			(1,417)		-
Total operating expenses	$	28,546	$	25,973	$	29,587		$	77,838	$	87,967
Other income (expense)
Interest expense	$	(9,299)	$	(9,463)	$	(9,936)	$	(28,259)	$	(27,845)
Gain (loss) on sale of real estate, net		10,319		(47)		4,696			10,554		4,245
Gain on debt extinguishment, net		-		-		-			300		-
Other income		12		26		155			73		262
Total other income (expense), net	$	1,032	$	(9,484)	$	(5,085)		$	(17,332)	$	(23,338)
Net income
$	11,721	$	1,600	$	1,792	$	16,843	$	370
Net (income) loss (available) attributable to non-controlling interests		(44)		11		(3)			(35)		78
Net income available to the company
$	11,677	$	1,611	$	1,789	$	16,808	$	448
Distributions attributable to Series E, F, and G preferred stock		(3,106)		(3,116)		(3,099)			(9,334)		(9,179)
Distributions attributable to senior common stock		(106)		(105)		(108)			(317)		(323)
Gain (loss) on extinguishment of Series F preferred stock		2		(4)		(1)			(4)		(12)
Gain on repurchase of Series G preferred stock		-		-		-			-		3
Net income (loss) available (attributable) to common stockholders	$	8,467	$	(1,614)	$	(1,419)		$	7,153	$	(9,063)

- 8 -

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)
		9/30/2024		6/30/2024		9/30/2023			9/30/2024		9/30/2023
Net income	$	11,721	$	1,600	$	1,792	$	16,843	$	370
Less: Distributions attributable to preferred and senior common stock		(3,212)		(3,221)		(3,207)			(9,651)		(9,502)
Add/Less: Gain (loss) on extinguishment of Series F preferred stock		2		(4)		(1)			(4)		(12)
Add: Gain on repurchase of Series G preferred stock		-		-		-			-		3
Net income (loss) available (attributable) to common stockholders and Non-controlling OP	$	8,511	$	(1,625)	$	(1,416)	$	7,188	$	(9,141)
Unitholders
Adjustments:
Add: Real estate depreciation and amortization	$	13,343	$	16,015	$	12,485	$	42,683	$	44,125
Add: Impairment charge		4,549		-		6,754			5,043		13,577
Add: Loss on sale of real estate, net		-		47		-			-		-
Less: Gain on sale of real estate, net		(10,319)		-		(4,696)			(10,554)		(4,245)
Less: Gain on debt extinguishment, net		-		-		-			(300)		-
FFO available to common stockholders and Non-controlling OP Unitholders - basic	$	16,084	$	14,437	$	13,127		$	44,060	$	44,316
Add: Convertible senior common distributions		106		105		108			317		323
FFO available to common stockholders and Non-controlling OP Unitholders - diluted	$	16,190	$	14,542	$	13,235		$	44,377	$	44,639
FFO available to common stockholders and Non-controlling OP Unitholders - basic	$	16,084	$	14,437	$	13,127	$	44,060	$	44,316
Add: Write off shelf registration statement costs and prepaid ATM costs		-		-		-			183		110
Add: Asset retirement obligation expense		33		33		31			99		94
Add: Bad debt write off		-		64		-			64		-
Add: Loan defeasance costs		-		-		130			-		130
Add: Realized loss on interest rate hedging instruments		51		-		326			132		326
Core FFO available to common stockholders and Non-controlling OP Unitholders - basic	$	16,168	$	14,534	$	13,614		$	44,538	$	44,976
Add: Convertible senior common distributions		106		105		108			317		323
Core FFO available to common stockholders and Non-controlling OP Unitholders - diluted	$	16,274	$	14,639	$	13,722		$	44,855	$	45,299
Weighted average common shares outstanding and Non-controlling OP Units - basic		42,830,159		40,553,113		40,309,463			41,238,296		40,331,128
Weighted average common shares outstanding and Non-controlling OP Units - diluted		43,169,458		40,895,360		40,654,595			41,577,595		40,676,260
FFO per weighted average share of common stock and Non-controlling OP Unit - basic	$	0.38	$	0.36	$	0.33	$	1.07	$	1.10
FFO per weighted average share of common stock and Non-controlling OP Unit - diluted	$	0.38	$	0.36	$	0.33		$	1.07	$	1.10
Core FFO per weighted average share of common stock and Non-controlling OP Unit -	$	0.38	$	0.36	$	0.34		$	1.08	$	1.12
basic
Core FFO per weighted average share of common stock and Non-controlling OP Unit -	$	0.38	$	0.36	$	0.34		$	1.08	$	1.11
diluted
Distributions declared per share of common stock and Non-controlling OP Unit	$	0.30	$	0.30	$	0.30		$	0.90	$	0.90

- 9 -

Condensed consolidated balance sheets

		9/30/2024
($ in thousands)		(unaudited)			12/31/2023
ASSETS
Real estate, at cost	$	1,214,288	$	1,221,364
Less: accumulated depreciation		313,730			299,662
Total real estate, net		900,558			921,702
Lease intangibles, net		97,802			101,048
Real estate and related assets held for sale, net		16,964			28,787
Cash and cash equivalents		10,531			11,985
Restricted cash		3,999			4,150
Funds held in escrow		5,673			7,515
Right-of-use assets from operating leases		4,023			4,889
Deferred rent receivable, net		44,855			41,006
Other assets		11,910			12,389
TOTAL ASSETS	$	1,096,315		$	1,133,471
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Mortgage notes payable, net	$	271,621	$	295,853
Borrowings under revolver and term loan, net		421,026			443,008
Deferred rent liability, asset retirement obligation and other liabilities, net		64,581			70,303
TOTAL LIABILITIES	$	757,228		$	809,164
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		43			40
Series F redeemable preferred stock		1			1
Additional paid in capital		780,205			730,256
Accumulated other comprehensive income		3,365			7,758
Distributions in excess of accumulated earnings		(614,698)			(584,776)
TOTAL STOCKHOLDERS' EQUITY	$	168,917		$	153,280
OP Units held by Non-controlling OP Unitholders		129			986
TOTAL EQUITY	$	169,046		$	154,266
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY	$	1,096,315	$	1,133,471

- 10 -