Gladstone Commercial: Watch The Preferreds As Treasury Yields Spike

Pacifica Yield13.9K FollowersFollow5ShareSavePlay(6min)CommentsSummaryGladstone Commercial preferreds, especially GOODN, offer a possible buy-the-dip opportunity amid recent price declines and a 7.5% current yield.GOODN trades at an 11% discount to its redemption value, with strong FFO coverage and a well-laddered debt maturity profile supporting preferred payments.Rising Treasury yields and inflation expectations pose the main risk this year, as higher rates could pressure preferred valuations and widen risk spreads.GOOD’s leverage has increased, and ongoing equity issuance supports liquidity but dilutes common shareholders; refinancing needs remain material through 2028. Art Wager/iStock via Getty Images Gladstone Commercial Corporation's (GOOD) monthly paying preferred shares have experienced falling prices as higher downstream inflation expectations see Treasury yields spike. The U.S. 10-year Treasury yield (US10Y) is up 35 basis points to 4.30% since the outbreak ofThis article was written byPacifica Yield13.9K FollowersFollowThe equity market is a powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. Pacifica Yield aims to pursue long-term wealth creation with a focus on undervalued yet high-growth companies, high-dividend tickers, REITs, and green energy firms.Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOODO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.