Terms

Series

6.00% Series G Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

6%

Rate Type

Fixed

Annual Dividend

$1.50

Payment Frequency

Monthly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

June 28, 2026

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Debt Obligations Of The Company And Its Subsidiaries, Any Capital Stock Expressly Designated As Senior To Series G Preferred Stock (None Currently Exists); Pari Passu With: Series D Preferred Stock (7.00%), Series E Preferred Stock (6.625%), Series F Preferred Stock (6.00%), Any Future Parity Capital Stock; Senior To: Common Stock, Senior Common Stock, Any Capital Stock Expressly Designated As Junior To Series G Preferred Stock

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

4,000,000

Prospectus Summary

Gladstone Commercial Corporation, a Maryland-based externally-advised REIT focused on office and industrial properties, is offering 4,000,000 shares of its 6.00% Series G Cumulative Redeemable Preferred Stock at a $25.00 liquidation preference, generating a fixed annual dividend of $1.50 per share ($0.125 per month). The shares are perpetual with no stated maturity and become callable at par on June 28, 2026. Crucially, the Series G is cumulative — meaning any unpaid dividends accrue and must be paid in full before the company can resume distributions to common or junior stockholders, providing investors meaningful protection against dividend suspension. The Series G Preferred Stock sits above common stock and the company's senior common stock in the capital stack, and ranks pari passu with the existing Series D (7.00%), Series E (6.625%), and Series F (6.00%) preferred series. It is subordinate to all of Gladstone Commercial's existing and future debt obligations (approximately $663 million as of March 2021). Because Gladstone operates as a holding company through its Operating Partnership and property-level subsidiaries, preferred holders face structural subordination — in a liquidation, all subsidiary-level liabilities must be satisfied before value flows up to the preferred. There is no regulatory capital call provision, but the issuer retains the right to redeem shares at any time prior to the first call date solely to preserve REIT status. At the $25.00 offering price, the Series G yields exactly 6.00% annually ($1.50/share), paid monthly. As a REIT, Gladstone's dividends are generally not eligible for the preferential 15%/20% qualified dividend income (QDI) rate or the corporate dividends-received deduction (DRD) — distributions are typically taxed as ordinary income, though a portion may be characterized as return of capital. Record dates are set between 10 and 35 days before each monthly payment date. The dividend stopper is meaningful: if any monthly dividend is missed, Gladstone is prohibited from paying dividends on its common stock, senior common stock, or any parity/junior capital stock until all Series G arrearages are fully paid — and after 18 consecutive months of arrears, preferred holders gain the right to elect two directors to the board.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Gladstone Commercial has not paid full cumulative dividends on the Series G Preferred Stock for all past monthly periods, it cannot pay dividends on its common stock or any junior/parity capital stock, nor can it redeem or repurchase those securities.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 57 (Average)