GOODO Gladstone Commercial Corporation

---

---

---

---

---

---

---

Gladstone Commercial Corporation is a real estate investment trust (“REIT”) that was incorporated under the General Corporation Law of the State of Maryland on February 14, 2003. We focus on acquiring, owning and managing primarily industrial and office properties. Subject to certain restrictions and limitations, our business is managed by Gladstone Management Corporation, a Delaware corporation (the “Adviser”), and administrative services are provided by Gladstone Administration, LLC, a Delaware limited liability company (the “Administrator”), each pursuant to a contractual arrangement with us. Our Adviser and Administrator collectively employ all of our personnel and pay their salaries, benefits, and other general expenses directly. Gladstone Commercial Corporation conducts substantially all of its operations through a subsidiary, Gladstone Commercial Limited Partnership, a Delaware limited partnership (the “Operating Partnership”).

All references herein to “we,” “our,” “us” and the “Company” mean Gladstone Commercial Corporation and its consolidated subsidiaries, except where it is made clear that the term means only Gladstone Commercial Corporation.

Interim Financial Information

Our interim financial statements are prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and in accordance with Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. The year-end balance sheet data presented herein was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of our management, all adjustments, consisting solely of normal recurring accruals, necessary for the fair statement of financial statements for the interim period, have been included. The interim financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 22, 2023. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year.

Revision of Previously Issued Financial Statements

In connection with the preparation of its financial statements for the second quarter of 2023, the Company identified errors in the calculation of depreciation of tenant funded improvement assets at a number of its properties. The Company had depreciated these assets through a term that was different than their useful lives, the correction of which resulted in changes to depreciation expense, a non-cash amount, and net income. The correction of these errors had an immaterial impact on the Incentive Fee for each period presented and had no impact on any other Advisory fees. The identified errors were included in the Company's previously issued 2021 quarterly and annual financial statements, 2022 quarterly and annual financial statements, and quarterly financial statements for the three months ended March 31, 2023. The Company evaluated the errors and determined that the related impact was not material to the Consolidated Statements of Operations and Comprehensive Income, Consolidated Balance Sheets, Consolidated Statements of Cash Flows or Consolidated Statements of Equity for any period impacted. The Company has revised the previously issued Condensed Consolidated Statements of Operations and Comprehensive Income, Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Cash Flows and Stockholders’ Equity tables as of and for the three and nine months ended September 30, 2022 to correct for such errors and these revisions are reflected in this Form 10-Q. The Company will also correct previously reported financial information for these errors in its future filings, as applicable. A summary of the corrections to the impacted financial statement line items to the Company’s previously issued Consolidated Statements of Operations and Comprehensive Income, Consolidated Balance Sheets, Consolidated Statements of Cash Flows and Consolidated Statements of Equity for each affected period is presented in Note 9, “Revision of Previously Issued Financial Statements.”

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Significant Accounting Policies

---

Gladstone Management and Gladstone Administration

We are externally managed pursuant to contractual arrangements with our Adviser and our Administrator, which collectively employ all of our personnel and pay their salaries, benefits, and other general expenses directly. Both our Adviser and Administrator are affiliates of ours, as their parent company is owned and controlled by Mr. David Gladstone, our chairman and chief executive officer. Two of our executive officers, Mr. Gladstone and Mr. Terry Lee Brubaker (our chief operating officer) serve as directors and executive officers of our Adviser and our Administrator. Our president, Mr. Arthur “Buzz” Cooper, is also executive vice president of commercial and industrial real estate of our Adviser. Mr. Michael LiCalsi, our general counsel and secretary, also serves as our Administrator’s president, general counsel and secretary, as well as executive vice president of administration of our Adviser. We have entered into an advisory agreement with our Adviser, as amended from time to time (the “Advisory Agreement”), and an administration agreement with our Administrator (the “Administration Agreement”). The services and fees under the Advisory Agreement and Administration Agreement are described below. As of September 30, 2023 and December 31, 2022, $2.6 million and $3.4 million, respectively, were collectively due to our Adviser and Administrator. Our entrance into the Advisory Agreement and each amendment thereto has been approved unanimously by our Board of Directors. Our Board of Directors reviews and considers renewing the agreements with our Adviser and Administrator each July. During their July 2023 meeting, our Board of Directors reviewed and renewed the Administration Agreement for an additional year, through August 31, 2024 and simultaneously entered into the Eighth Amended and Restated Investment Advisory Agreement (the “Eighth Amended Advisory Agreement”).

Base Management Fee

On July 14, 2020, we amended and restated the Advisory Agreement, which replaced the previous calculation of the base management fee with a calculation based on Gross Tangible Real Estate. The revised base management fee is payable quarterly in arrears and calculated at an annual rate of 0.425% (0.10625% per quarter) of the prior calendar quarter’s “Gross Tangible Real Estate,” defined in the Advisory Agreement as the current gross value of our property portfolio (meaning the aggregate of each property’s original acquisition price plus the cost of any subsequent capital improvements thereon). The calculation of the other fees in the Advisory Agreement was unchanged.

For the three and nine months ended September 30, 2023, we recorded a base management fee of $1.6 million and $4.8 million, respectively. For the three and nine months ended September 30, 2022, we recorded a base management fee of $1.6 million and $4.7 million, respectively.

Incentive Fee

Pursuant to the Advisory Agreement, the calculation of the incentive fee rewards the Adviser in circumstances where our quarterly Core FFO (defined at the end of this paragraph), before giving effect to any incentive fee, or pre-incentive fee Core FFO, exceeds 2.0% quarterly, or 8.0% annualized, of adjusted total stockholders’ equity (after giving effect to the base management fee but before giving effect to the incentive fee). We refer to this as the hurdle rate. The Adviser will receive 15.0% of the amount of our pre-incentive fee Core FFO that exceeds the hurdle rate. However, in no event shall the incentive fee for a particular quarter exceed by 15.0% (the cap) the average quarterly incentive fee paid by us for the previous four quarters (excluding quarters for which no incentive fee was paid). Core FFO (as defined in the Advisory Agreement) is GAAP net (loss) income (attributable) available to common stockholders, excluding the incentive fee, depreciation and amortization, any realized and unrealized gains, losses or other non-cash items recorded in net (loss) income (attributable) available to common stockholders for the period, and one-time events pursuant to changes in GAAP.

On January 10, 2023, the Company amended and restated the Advisory Agreement by entering into the Seventh Amended and Restated Investment Advisory Agreement between the Company and the Adviser (the “Seventh Amended Advisory Agreement”), as approved unanimously by our Board of Directors, including specifically, our independent directors. The

---

Seventh Amended Advisory Agreement contractually eliminated the payment of the incentive fee for the quarters ended March 31, 2023 and June 30, 2023. The calculation of the other fees was unchanged.

On July 11, 2023, the Company entered into the Eighth Amended Advisory Agreement, as approved unanimously by our Board of Directors, including specifically, our independent directors. The Eighth Amended Advisory Agreement contractually eliminated the payment of the incentive fee for the quarters ending September 30, 2023 and December 31, 2023. In addition, the Eighth Amended Advisory Agreement also clarified that for any future quarter whereby an incentive fee would exceed by greater than 15% the average quarterly incentive fee paid, the measurement would be versus the last four quarters where an incentive fee was actually paid. The calculation of the other fees remains unchanged.

For the three and nine months ended September 30, 2023, the contractually eliminated incentive fee would have been $0.9 million and $3.4 million, respectively. For the three and nine months ended September 30, 2022, we recorded an incentive fee of $1.5 million and $4.2 million, respectively. The Adviser did not waive any portion of the incentive fee for the three and nine months ended September 30, 2022.

Capital Gain Fee

Under the Advisory Agreement, we will pay to the Adviser a capital gain-based incentive fee that will be calculated and payable in arrears as of the end of each fiscal year (or upon termination of the Advisory Agreement). In determining the capital gain fee, we will calculate aggregate realized capital gains and aggregate realized capital losses for the applicable time period. For this purpose, aggregate realized capital gains and losses, if any, equals the realized gain or loss calculated by the difference between the sales price of the property, less any costs to sell the property and the current gross value of the property (equal to the property’s original acquisition price plus any subsequent non-reimbursed capital improvements) of the disposed property. At the end of the fiscal year, if this number is positive, then the capital gain fee payable for such time period shall equal 15.0% of such amount. No capital gain fee was recognized during the three and nine months ended September 30, 2023 or 2022.

Termination Fee

The Advisory Agreement includes a termination fee clause whereby, in the event of our termination of the agreement without cause (with 120 days’ prior written notice and the vote of at least two-thirds of our independent directors), a termination fee would be payable to the Adviser equal to two times the sum of the average annual base management fee and incentive fee earned by the Adviser during the 24-month period prior to such termination. A termination fee is also payable if the Adviser terminates the Advisory Agreement after we have defaulted and applicable cure periods have expired. The Advisory Agreement may also be terminated for cause by us (with 30 days’ prior written notice and the vote of at least two-thirds of our independent directors), with no termination fee payable. Cause is defined in the agreement to include if the Adviser breaches any material provisions thereof, the bankruptcy or insolvency of the Adviser, dissolution of the Adviser and fraud or misappropriation of funds.

Administration Agreement

Under the terms of the Administration Agreement, we pay separately for our allocable portion of the Administrator’s overhead expenses in performing its obligations to us including, but not limited to, rent and our allocable portion of the salaries and benefits expenses of our Administrator’s employees, including, but not limited to, our chief financial officer, treasurer, chief compliance officer, general counsel and secretary (who also serves as our Administrator’s president, general counsel and secretary), and their respective staffs. Our allocable portion of the Administrator’s expenses are generally derived by multiplying our Administrator’s total expenses by the approximate percentage of time the Administrator’s employees perform services for us in relation to their time spent performing services for all companies serviced by our Administrator under contractual agreements. We believe that the methodology of allocating the Administrator’s total expenses by approximate percentage of time services were performed among all companies serviced by our Administrator more closely approximates fees paid to actual services performed. For the three and nine months ended September 30, 2023, we recorded an administration fee of $0.6 million and $1.7 million, respectively. For the three and nine months ended September 30, 2022, we recorded an administration fee of $0.5 million and $1.3 million, respectively.

Gladstone Securities

Gladstone Securities, LLC (“Gladstone Securities”), is a privately held broker dealer registered with the Financial Industry Regulatory Authority and insured by the Securities Investor Protection Corporation. Gladstone Securities is an affiliate of ours, as its parent company is owned and controlled by David Gladstone, our chairman and chief executive officer. Mr. Gladstone also serves on the board of managers of Gladstone Securities.

---

Mortgage Financing Arrangement Agreement

We entered into an agreement with Gladstone Securities, effective June 18, 2013, for it to act as our non-exclusive agent to assist us with arranging mortgage financing for properties we own. In connection with this engagement, Gladstone Securities will, from time to time, continue to solicit the interest of various commercial real estate lenders or recommend to us third party lenders offering credit products or packages that are responsive to our needs. We pay Gladstone Securities a financing fee in connection with the services it provides to us for securing mortgage financing on any of our properties. The amount of these financing fees, which are payable upon closing of the financing, are based on a percentage of the amount of the mortgage, generally ranging from 0.15% to a maximum of 1.00% of the mortgage obtained. The amount of the financing fees may be reduced or eliminated, as determined by us and Gladstone Securities, after taking into consideration various factors, including, but not limited to, the involvement of any third-party brokers and market conditions. We paid financing fees to Gladstone Securities of $0.03 million and $0.1 million during the three and nine months ended September 30, 2023, which are included in mortgage payable, net, in the condensed consolidated balance sheets, or 0.38% and 0.29% of the mortgage principal secured. We paid financing fees to Gladstone Securities of $0.1 million and $0.3 million during the three and nine months ended September 30, 2022, which are included in mortgage payable, net, in the condensed consolidated balance sheets, or 0.29% and 0.32% of the mortgage principal secured. Our Board of Directors renewed the agreement for an additional year, through August 31, 2024, at its July 2023 meeting.

Dealer Manager Agreement

On February 20, 2020, we entered into a dealer manager agreement, as amended on February 9, 2023 (together, the “Dealer Manager Agreement”), whereby Gladstone Securities acts as the exclusive dealer manager in connection with our offering (the “Offering”) of up to (i) 20,000,000 shares of 6.00% Series F Cumulative Redeemable Preferred Stock, par value $0.001 per share (the “Series F Preferred Stock”), on a “reasonable best efforts” basis (the “Primary Offering”), and (ii) 6,000,000 shares of Series F Preferred Stock pursuant to our distribution reinvestment plan (the “DRIP”) to those holders of the Series F Preferred Stock who participate in such DRIP. The Series F Preferred Stock is registered with the SEC pursuant to an automatic registration statement on Form S-3 (File No. 333-268549), as the same may be amended and/or supplemented (the “2022 Registration Statement”), under the Securities Act of 1933, as amended, and is offered and sold pursuant to a prospectus supplement, dated February 9, 2023, and a base prospectus dated November 23, 2022 relating to the 2022 Registration Statement. During the years ended December 31, 2020, 2021 and 2022, the Series F Preferred Stock was registered with the SEC pursuant to a registration statement on Form S-3 (File No. 333-236143) (the “2020 Registration Statement”), and offered and sold pursuant to a prospectus supplement, dated February 20, 2020, and a base prospectus dated February 11, 2020.

Under the Dealer Manager Agreement, Gladstone Securities, as dealer manager, provides certain sales, promotional and marketing services to us in connection with the Offering, and we pay Gladstone Securities (i) selling commissions of 6.0% of the gross proceeds from sales of Series F Preferred Stock in the Primary Offering (the “Selling Commissions”), and (ii) a dealer manager fee of 3.0% of the gross proceeds from sales of Series F Preferred Stock in the Primary Offering (the “Dealer Manager Fee”). No Selling Commissions or Dealer Manager Fee are paid with respect to shares sold pursuant to the DRIP. Gladstone Securities may, in its sole discretion, re-allow a portion of the Dealer Manager Fee to participating broker-dealers in support of the Offering. We paid fees of $0.1 million and $0.5 million to Gladstone Securities during the three and nine months ended September 30, 2023, respectively, in connection with the Offering. We paid fees of $0.1 million and $0.4 million to Gladstone Securities during the three and nine months ended September 30, 2022, respectively, in connection with the Offering.

---

We computed basic loss per share for the three and nine months ended September 30, 2023 and 2022 using the weighted average number of shares outstanding during the respective periods. Diluted loss per share for the three and nine months ended September 30, 2023 and 2022 reflects additional shares of common stock related to our convertible senior common stock (the “Senior Common Stock”), if the effect of conversion would be dilutive, that would have been outstanding if such dilutive potential shares of common stock had been issued, as well as an adjustment to net loss attributable to common stockholders as applicable to common stockholders that would result from their assumed issuance (dollars in thousands, except per share amounts).

						For the three months ended September 30,												For the nine months ended September 30,
						2023						2022						2023						2022
Calculation of basic loss per share of common stock:
Net loss attributable to common stockholders						$	(1,419)					$	(310)					$	(9,063)					$	(1,385)
Denominator for basic weighted average shares of common stock (1)						39,917,995						39,504,734						39,939,660						38,723,581
Basic loss per share of common stock						$	(0.04)					$	(0.01)					$	(0.23)					$	(0.04)
Calculation of diluted loss per share of common stock:
Net loss attributable to common stockholders						$	(1,419)					$	(310)					$	(9,063)					$	(1,385)
Net loss attributable to common stockholders plus assumed conversions (2)						$	(1,419)					$	(310)					$	(9,063)					$	(1,385)
Denominator for basic weighted average shares of common stock (1)						39,917,995						39,504,734						39,939,660						38,723,581
Effect of convertible Senior Common Stock (2)						—						—						—						—
Denominator for diluted weighted average shares of common stock (2)						39,917,995						39,504,734						39,939,660						38,723,581
Diluted loss per share of common stock						$	(0.04)					$	(0.01)					$	(0.23)					$	(0.04)

(1)The weighted average number of OP Units held by Non-controlling OP Unitholders was 391,468 and 391,468 for the three and nine months ended September 30, 2023, respectively, and 273,072 and 262,412 for the three and nine months ended September 30, 2022, respectively.

Real Estate

The following table sets forth the components of our investments in real estate as of September 30, 2023 and December 31, 2022, respectively, excluding real estate held for sale as of September 30, 2023 and December 31, 2022 (dollars in thousands):

						September 30, 2023						December 31, 2022
Real estate:
Land (1)						$	143,815					$	152,916
Building and improvements						1,025,384						1,069,407
Tenant improvements						57,262						64,974
Accumulated depreciation						(291,986)						(286,150)
Real estate, net						$	934,475					$	1,001,147

(1)This amount includes $4,436 of land value subject to land lease agreements which we may purchase at our option for a nominal fee.

Real estate depreciation expense on building and tenant improvements was $8.9 million and $31.2 million for the three and nine months ended September 30, 2023, respectively. Real estate depreciation expense on building and tenant improvements was $10.7 million and $30.7 million for the three and nine months ended September 30, 2022, respectively.

Acquisitions

We acquired three properties during the nine months ended September 30, 2023 and acquired 11 industrial properties during the nine months ended September 30, 2022. The acquisitions are summarized below (dollars in thousands):

---

Nine Months Ended						Aggregate Square Footage						Weighted Average Lease Term						Aggregate Purchase Price						Aggregate Capitalized Acquisition Costs
September 30, 2023			(1)			183,803						18.7 years						$	17,539					$	349
September 30, 2022			(2)			1,105,006						13.8 years						$	98,276					$	776

(1)On April 14, 2023, we acquired a 76,089 square foot property in Riverdale, Illinois for $5.4 million. The property is fully leased to one tenant and had 20.0 years of remaining lease term at the time we acquired the property. On July 10, 2023, we acquired a 7,714 square foot property in Dallas-Fort Worth, Texas for $3.0 million. The property is fully leased to one tenant and had 9.9 years of remaining lease term at the time we acquired the property. On July 28, 2023, we acquired a 100,000 square foot property in Dallas-Fort Worth, Texas for $9.2 million. The property is fully leased to one tenant and had 20.0 years of remaining lease term at the time we acquired the property.

(2)On February 24, 2022, we acquired an 80,000 square foot property in Wilkesboro, North Carolina for $7.5 million. The property is fully leased to one tenant and had 12.7 years of remaining lease term at the time we acquired the property. On March 11, 2022, we acquired a 56,000 square foot property in Oklahoma City, Oklahoma for $6.0 million. The property is fully leased to one tenant and had 7.0 years of remaining lease term at the time we acquired the property. On May 4, 2022, we acquired a two-property, 260,719 square foot portfolio in Cleveland, Ohio and Fort Payne, Alabama for $19.5 million. The properties are fully leased to one tenant and had 11.4 years of remaining lease term at the time we acquired the properties. On May 12, 2022, we acquired a three-property, 345,584 square foot portfolio in Wilmington, North Carolina for $18.9 million. The properties are fully leased to one tenant and had 13.1 years of remaining lease term at the time we acquired the properties. On August 5, 2022, we acquired a two-property, 246,000 square foot portfolio in Bridgeton, New Jersey and Vineland, New Jersey for $32.7 million. The properties are fully leased to one tenant and had 15.1 years of remaining lease term at the time we acquired the properties. On September 16, 2022, we acquired a 67,328 square foot property in Jacksonville, Florida for $8.1 million. The property is fully leased to one tenant and had 20.0 years of remaining lease term at the time we acquired the property. On September 20, 2022, we acquired a 49,375 square foot property in Fort Payne, Alabama for $5.6 million. The property is fully leased to one tenant and had 14.8 years of remaining lease term at the time we acquired the property.

We determined the fair value of assets acquired and liabilities assumed related to the properties acquired during the nine months ended September 30, 2023 and 2022 as follows (dollars in thousands):

						Nine Months Ended September 30, 2023						Nine Months Ended September 30, 2022
Acquired assets and liabilities						Purchase price						Purchase price
Land						$	2,714					$	5,949
Building						11,423						77,903
Tenant Improvements						692						1,468
In-place Leases						1,001						4,907
Leasing Costs						1,270						5,387
Customer Relationships						439						2,937
Above Market Leases						—						328			(1)
Below Market Leases						—						(603)			(2)
Total Purchase Price						$	17,539					$	98,276

(1)This amount includes $9 of loans receivable included in Other assets on the condensed balance sheets.

(2)This amount includes $32 of prepaid rent included in Other liabilities on the condensed consolidated balance sheets.

Future Lease Payments

Future operating lease payments from tenants under non-cancelable leases, excluding tenant reimbursement of expenses, for the three months ending December 31, 2023 and each of the five succeeding fiscal years and thereafter is as follows, excluding real estate held for sale as of September 30, 2023 (dollars in thousands):

---

Year			Tenant Lease Payments
Three Months Ending December 31, 2023			$	28,906
2024			112,878
2025			112,342
2026			106,748
2027			90,440
2028			75,223
Thereafter			357,055

In accordance with the lease terms, substantially all operating expenses are required to be paid by the tenant directly, or reimbursed to us from the tenant; however, we would be required to pay operating expenses on the respective properties in the event the tenants fail to pay them.

Lease Revenue Reconciliation

The table below sets forth the allocation of lease revenue between fixed contractual payments and variable lease payments for the three and nine months ended September 30, 2023 and 2022, respectively (dollars in thousands):

						For the three months ended September 30,
						(Dollars in Thousands)
Lease revenue reconciliation						2023						2022						$ Change						% Change
Fixed lease payments						$	31,945					$	35,752					$	(3,807)					(10.6)		%
Variable lease payments						4,519						4,082						437						10.7		%
						$	36,464					$	39,834					$	(3,370)					(8.5)		%

						For the nine months ended September 30,
						(Dollars in Thousands)
Lease revenue reconciliation						2023						2022						$ Change						% Change
Fixed lease payments						$	98,465					$	98,961					$	(496)					(0.5)		%
Variable lease payments						13,210						12,803						407						3.2		%
						$	111,675					$	111,764					$	(89)					(0.1)		%

Intangible Assets

The following table summarizes the carrying value of intangible assets, liabilities and the accumulated amortization for each intangible asset and liability class as of September 30, 2023 and December 31, 2022, respectively, excluding real estate held for sale as of September 30, 2023 and December 31, 2022 (dollars in thousands):

						September 30, 2023												December 31, 2022
						Lease Intangibles						Accumulated Amortization						Lease Intangibles						Accumulated Amortization
In-place leases						$	98,904					$	(62,270)					$	104,394					$	(63,240)
Leasing costs						83,075						(45,170)						85,038						(45,501)
Customer relationships						63,614						(35,524)						69,586						(38,655)
						$	245,593					$	(142,964)					$	259,018					$	(147,396)
						Deferred Rent Receivable/(Liability)						Accumulated (Amortization)/Accretion						Deferred Rent Receivable/(Liability)						Accumulated (Amortization)/Accretion
Above market leases						$	13,431					$	(10,546)					$	15,371					$	(11,909)
Below market leases and deferred revenue						(60,927)						29,113						(66,138)						26,141

Total amortization expense related to in-place leases, leasing costs and customer relationship lease intangible assets was $3.6 million and $12.9 million for the three and nine months ended September 30, 2023, respectively, and $4.7 million and $14.5

---

million for the three and nine months ended September 30, 2022, respectively, and is included in depreciation and amortization expense in the condensed consolidated statements of operations and comprehensive income.

Total amortization related to above-market lease values was $0.1 million and $0.4 million for the three and nine months ended September 30, 2023, respectively, and $0.2 million and $0.6 million for the three and nine months ended September 30, 2022, respectively, and is included in lease revenue in the condensed consolidated statements of operations and comprehensive income. Total amortization related to below-market lease values was $1.8 million and $6.2 million for the three and nine months ended September 30, 2023, respectively, and $1.5 million and $3.1 million for the three and nine months ended September 30, 2022, respectively, and is included in lease revenue in the condensed consolidated statements of operations and comprehensive income.

The weighted average amortization periods in years for the intangible assets acquired and liabilities assumed during the nine months ended September 30, 2023 and 2022, were as follows:

Intangible Assets & Liabilities						September 30, 2023						September 30, 2022
In-place leases						18.0						14.2
Leasing costs						18.0						14.2
Customer relationships						22.7						20.2
Above market leases						0.0						15.7
Below market leases						0.0						13.0
All intangible assets & liabilities						19.6						15.7

Real Estate Dispositions

We sold five properties during the nine months ended September 30, 2023 and three properties during the nine months ended September 30, 2022.

During the nine months ended September 30, 2023, we continued to execute our capital recycling program, whereby we sold non-core properties and redeployed proceeds to either fund property acquisitions in our target secondary growth markets or repay outstanding debt. We expect to continue to execute our capital recycling plan and sell non-core properties as reasonable disposition opportunities become available, and use the sales proceeds to acquire properties in our target, secondary growth markets or pay down outstanding debt. During the nine months ended September 30, 2023, we sold five non-core properties, located in Baytown, Texas; Birmingham, Alabama; Pittsburgh, Pennsylvania; Eatontown, New Jersey; and Taylorsville, Utah, which are summarized in the table below (dollars in thousands):

Aggregate Square Footage Sold						Aggregate Sales Price						Aggregate Sales Costs						Aggregate Impairment Charge for the Nine Months Ended September 30, 2023						Aggregate Gain on Sale of Real Estate, net
206,278						$	23,650					$	1,476					$	3,591					$	4,245

Our dispositions during the nine months ended September 30, 2023 were not classified as discontinued operations because they did not represent a strategic shift in operations, nor will such dispositions have a major effect on our operations and financial results. Accordingly, the operating results of these properties are included within continuing operations for all periods reported.

The table below summarizes the components of operating income from real estate and related assets disposed of during the three and nine months ended September 30, 2023 and 2022 (dollars in thousands):

---

						For the three months ended September 30,												For the nine months ended September 30,
						2023						2022						2023						2022
Operating revenue						$	184					$	565					$	1,209					$	2,501
Operating expense						60						510						4,427			(2)			2,251
Other income (expense), net						4,443			(1)			(189)						3,790			(3)			(502)
Income (expense) from real estate and related assets sold						$	4,567					$	(134)					$	572					$	(252)

(1)Includes a $4.7 million gain on sale of real estate, net, on three property sales.

(2)Includes a $3.6 million impairment charge on one property.

(3)Includes a $4.2 million gain on sale of real estate, net, on five property sales.

Real Estate Held for Sale

At September 30, 2023, we had four properties classified as held for sale, located in Columbia, South Carolina; Richardson, Texas; Columbus, Ohio; and Blaine, Minnesota. We consider these assets to be non-core to our long term strategy. At December 31, 2022, we had one property classified as held for sale, located in Columbia, South Carolina.

The table below summarizes the components of the assets and liabilities held for sale at September 30, 2023 and December 31, 2022 reflected on the accompanying condensed consolidated balance sheets (dollars in thousands):

						September 30, 2023						December 31, 2022
Assets Held for Sale
Total real estate held for sale						$	28,972					$	3,293
Lease intangibles, net						369						—
Deferred rent receivable, net						9						—
Total Assets Held for Sale						$	29,350					$	3,293
Liabilities Held for Sale
Deferred rent liability, net						$	631					$	—
Total Liabilities Held for Sale						$	631					$	—

Impairment Charges

We evaluated our portfolio for triggering events to determine if any of our held and used assets were impaired during the nine months ended September 30, 2023 and identified two held and used assets, located in Columbus, Ohio and Draper, Utah, which were impaired by $9.0 million. We also recognized an impairment charge of $4.6 million on two held for sale assets, located in Richardson, Texas and Taylorsville, Utah during the nine months ended September 30, 2023. In performing our held for sale assessment, the carrying value of these assets were above the fair value, less costs of sale. As a result, we impaired these properties to equal the fair market value less costs of sale. We recognized an impairment charge of $12.1 million during the nine months ended September 30, 2022 on two held for sale assets, located in Columbia, South Carolina and Parsippany, New Jersey. In performing our held for sale assessment, the carrying value of this asset was above the fair value, less costs of sale. As a result, we impaired this property to equal the fair market value less costs of sale.

---

Our $125.0 million unsecured revolving credit facility (“Revolver”), $160.0 million term loan facility (“Term Loan A”), $60.0 million term loan facility (“Term Loan B”), and $150.0 million term loan facility (“Term Loan C”), are collectively referred to herein as the Credit Facility.

Our mortgage notes payable and Credit Facility as of September 30, 2023 and December 31, 2022 are summarized below (dollars in thousands):

						Encumbered properties at						Carrying Value at												Stated Interest Rates at						Scheduled Maturity Dates at
						September 30, 2023						September 30, 2023						December 31, 2022						September 30, 2023						September 30, 2023
Mortgage and other secured loans:
Fixed rate mortgage loans						49						$	313,400					$	362,037					(1)						(2)
Premiums and discounts, net						—						(52)						(83)						N/A						N/A
Deferred financing costs, mortgage loans, net						—						(2,374)						(2,565)						N/A						N/A
Total mortgage notes payable, net						49						$	310,974					$	359,389					(3)
Variable rate revolving credit facility						82			(6)			$	70,950					$	23,250					SOFR + 1.50%			(4)			8/18/2026
Total revolver						82						$	70,950					$	23,250
Variable rate term loan facility A						—			(6)			$	160,000					$	160,000					SOFR + 1.45%			(4)			8/18/2027
Variable rate term loan facility B						—			(6)			60,000						60,000						SOFR + 1.45%			(4)			2/11/2026
Variable rate term loan facility C						—			(6)			150,000						150,000						SOFR + 1.45%			(4)			2/18/2028
Deferred financing costs, term loan facility						—						(2,915)						(3,433)						N/A						N/A
Total term loan, net						N/A						$	367,085					$	366,567
Total mortgage notes payable and credit facility						131						$	749,009					$	749,206					(5)

(1)As of September 30, 2023, interest rates on our fixed rate mortgage notes payable varied from 2.80% to 6.63%.

(2)As of September 30, 2023, we had 43 mortgage notes payable with maturity dates ranging from January 1, 2024 through August 1, 2037.

(3)The weighted average interest rate on the mortgage notes outstanding as of September 30, 2023 was approximately 4.20%.

(4)As of September 30, 2023, Secured Overnight Financing Rate (“SOFR”) was approximately 5.31%.

(5)The weighted average interest rate on all debt outstanding as of September 30, 2023 was approximately 5.70%.

(6)The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 82 unencumbered properties as of September 30, 2023.

N/A - Not Applicable

Mortgage Notes Payable

As of September 30, 2023, we had 43 mortgage notes payable, collateralized by a total of 49 properties with a net book value of $496.5 million. We have limited recourse liabilities that could result from any one or more of the following circumstances: a borrower voluntarily filing for bankruptcy, improper conveyance of a property, fraud or material misrepresentation, misapplication or misappropriation of rents, security deposits, insurance proceeds or condemnation proceeds, or physical waste or damage to the property resulting from a borrower’s gross negligence or willful misconduct. As of September 30, 2023, we did not have any mortgages subject to recourse. We will also indemnify lenders against claims resulting from the presence of hazardous substances or activity involving hazardous substances in violation of environmental laws on a property. 

During the nine months ended September 30, 2023, we repaid four mortgages, collateralized by four properties, which are summarized in the table below (dollars in thousands):

---

Fixed Rate Debt Repaid						Interest Rate on Fixed Rate Debt Repaid
$	46,530					4.78		%

During the nine months ended September 30, 2023, we issued three mortgages, collateralized by three properties, which are summarized in the table below (dollars in thousands):

Aggregate Fixed Rate Debt Issued						Weighted Average Interest Rate on Fixed Rate Debt
$	9,000					6.10		%

During the nine months ended September 30, 2023, we extended the maturity date of one mortgage, collateralized by one property, which is summarized in the table below (dollars in thousands):

Fixed Rate Debt Extended						Interest Rate on Fixed Rate Debt Extended						Extension Term
$	8,769					6.50		%				1.0 year

We made payments of $0.3 million and $0.4 million for deferred financing costs during the three and nine months ended September 30, 2023. We made payments of $5.6 million and $6.2 million for deferred financing costs during the three and nine months ended September 30, 2022.

Scheduled principal payments of mortgage notes payable for the three months ending December 31, 2023, and each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands):

 

Year						Scheduled Principal Payments
Three Months Ending December 31, 2023						$	11,995
2024						28,400
2025						36,420
2026						35,084
2027						95,040
2028						37,116
Thereafter						69,345
Total						$	313,400		(1)

(1)This figure does not include $(0.1) million of premiums and (discounts), net, and $2.4 million of deferred financing costs, which are reflected in mortgage notes payable, net on the condensed consolidated balance sheets.

We believe we will be able to address all mortgage notes payable maturing over the next 12 months through a combination of refinancing our existing indebtedness, cash from operations, proceeds from one or more equity offerings and availability on our Credit Facility.

Interest Rate Cap and Interest Rate Swap Agreements

We have entered into interest rate cap agreements that cap the interest rate on certain of our variable-rate debt and we have assumed or entered into interest rate swap agreements in which we hedged our exposure to variable interest rates by agreeing to pay fixed interest rates to our respective counterparty. We have adopted the fair value measurement provisions for our financial instruments recorded at fair value. The fair value guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Generally, we will estimate the fair value of our interest rate caps and interest rate swaps, in the absence of observable market data, using estimates of value including estimated remaining life, counterparty credit risk, current market yield and interest rate spreads of similar securities as of the measurement date. At September 30, 2023 and December 31, 2022, our interest rate cap agreements and interest rate swaps were valued using Level 2 inputs.

---

The fair value of the interest rate cap agreements is recorded in other assets on our accompanying condensed consolidated balance sheets. We record changes in the fair value of the interest rate cap agreements quarterly based on the current market valuations at quarter end. If the interest rate cap qualifies for hedge accounting, the change in the estimated fair value is recorded to accumulated other comprehensive income to the extent that it is effective, with any ineffective portion recorded to interest expense in our condensed consolidated statements of operations and comprehensive income. If the interest rate cap does not qualify for hedge accounting, or if it is determined the hedge is ineffective, any change in the fair value is recognized in interest expense in our consolidated statements of operations and comprehensive income. During the next 12 months, we estimate that an additional $6.9 million will be reclassified out of accumulated other comprehensive income into interest expense in our condensed consolidated statements of operations and comprehensive income, as a reduction to interest expense. The following table summarizes the interest rate caps at September 30, 2023 and December 31, 2022 (dollars in thousands):

 

						September 30, 2023												December 31, 2022
Aggregate Cost						Aggregate Notional Amount						Aggregate Fair Value						Aggregate Notional Amount						Aggregate Fair Value
$	141		(1)			$	65,000					$	1,340					$	225,000					$	4,629

(1)We have entered into various interest rate cap agreements on variable rate debt with SOFR caps ranging from 1.49% to 1.75%.

We have assumed or entered into interest rate swap agreements in connection with certain of our mortgage financings and Credit Facility, whereby we will pay our counterparty a fixed rate interest rate on a monthly basis and receive payments from our counterparty equivalent to the stipulated floating rate. The fair value of our interest rate swap agreements is recorded in other assets or other liabilities on our accompanying condensed consolidated balance sheets. We have designated our interest rate swaps as cash flow hedges, and we record changes in the fair value of the interest rate swap agreement to accumulated other comprehensive income on the condensed consolidated balance sheets. We record changes in fair value on a quarterly basis, using current market valuations at quarter end. The following table summarizes our interest rate swaps at September 30, 2023 and December 31, 2022 (dollars in thousands):

September 30, 2023																		December 31, 2022
Aggregate Notional Amount						Aggregate Fair Value Asset						Aggregate Fair Value Liability						Aggregate Notional Amount						Aggregate Fair Value Asset						Aggregate Fair Value Liability
$	361,969					$	17,015					$	—					$	362,832					$	8,264					$	(897)

The following table presents the impact of our derivative instruments in the condensed consolidated financial statements (dollars in thousands):

						Amount of gain, net, recognized in Comprehensive Income
						Three Months Ended September 30,												Nine Months Ended September 30,
						2023						2022						2023						2022
Derivatives in cash flow hedging relationships
Interest rate caps						$	(654)					$	1,758					$	(2,429)					$	4,520
Interest rate swaps						5,743						5,032						9,647						9,140
Total						$	5,089					$	6,790					$	7,218					$	13,660

The following table presents the reclassifications of our derivative instruments out of accumulated other comprehensive income into interest expense in the condensed consolidated financial statements (dollars in thousands):

						Amount reclassified out of Accumulated Other Comprehensive Income
						Three Months Ended September 30,												Nine Months Ended September 30,
						2023						2022						2023						2022
Interest rate caps						$	409					$	(52)					$	937					$	(52)
Total						$	409					$	(52)					$	937					$	(52)

The following table sets forth certain information regarding our derivative instruments (dollars in thousands):

---

												Asset (Liability) Derivatives Fair Value at
Derivatives Designated as Hedging Instruments						Balance Sheet Location						September 30, 2023						December 31, 2022
Interest rate caps						Other assets						$	1,340					$	4,629
Interest rate swaps						Other assets						17,015						8,264
Interest rate swaps						Other liabilities						—						(897)
Total derivative liabilities, net												$	18,355					$	11,996

The fair value of all mortgage notes payable outstanding as of September 30, 2023 was $273.2 million, as compared to the carrying value stated above of $311.0 million. The fair value is calculated based on a discounted cash flow analysis, using management’s estimate of market interest rates on long-term debt with comparable terms and loan to value ratios. The fair value was calculated using Level 3 inputs of the hierarchy established by ASC 820, “Fair Value Measurements and Disclosures.”

Credit Facility

On August 18, 2022, we amended, extended and upsized our Credit Facility, increasing our Revolver from $100.0 million to $120.0 million (and its term to August 2026), adding the new $140.0 million Term Loan C, decreasing the principal balance of Term Loan B to $60.0 million and extending the maturity date of Term Loan A to August 2027. Term Loan C has a maturity date of February 18, 2028 and a SOFR spread ranging from 125 to 195 basis points, depending on our leverage. On September 27, 2022, we further increased the Revolver to $125.0 million and Term Loan C to $150.0 million, as permitted under the terms of the Credit Facility. We entered into multiple interest rate swap agreements on Term Loan C, which swap the interest rate to fixed rates from 3.15% to 3.75%. We incurred fees of approximately $4.2 million in connection with extending and upsizing our Credit Facility. The net proceeds of the transaction were used to repay the then-outstanding borrowings on the Revolver, pay off mortgage debt, and fund acquisitions. The Credit Facility’s current bank syndicate is comprised of KeyBank, Fifth Third Bank, The Huntington National Bank, Bank of America, Synovus Bank, United Bank, First Financial Bank, and S&T Bank.

As of September 30, 2023, there was $441.0 million outstanding under our Credit Facility, at a weighted average interest rate of approximately 6.77%, and $2.9 million outstanding under letters of credit, at a weighted average interest rate of 1.50%. As of September 30, 2023, the maximum additional amount we could draw under the Credit Facility was $44.9 million. We were in compliance with all covenants under the Credit Facility as of September 30, 2023.

The amount outstanding under the Credit Facility approximates fair value as of September 30, 2023.

Ground Leases

We are obligated as lessee under four ground leases. Future minimum rental payments due under the terms of these leases for the three months ending December 31, 2023 and each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands):

Year						Future Lease Payments Due Under Operating Leases
Three Months Ending December 31, 2023						$	124
2024						493
2025						494
2026						498
2027						506
2028						510
Thereafter						5,790
Total anticipated lease payments						$	8,415
Less: amount representing interest						(3,267)
Present value of lease payments						$	5,148

---

Rental expense incurred for properties with ground lease obligations during the three and nine months ended September 30, 2023 was $0.1 million and $0.3 million, respectively, and during the three and nine months ended September 30, 2022 was $0.1 million and $0.3 million, respectively. Our ground leases are treated as operating leases and rental expenses are reflected in property operating expenses on the condensed consolidated statements of operations and comprehensive income. Our ground leases have a weighted average remaining lease term of 17.9 years and a weighted average discount rate of 5.33%.

Letters of Credit

As of September 30, 2023, there was $2.9 million outstanding under letters of credit. These letters of credit are not reflected on our condensed consolidated balance sheets.

Stockholders’ Equity

The following table summarizes the changes in our equity for the three and nine months ended September 30, 2023 and 2022 (in thousands):

 

			Three Months Ended September 30,									Nine Months Ended September 30,
			2023			2022						2023			2022
Senior Common Stock
Balance, beginning of period			$	1		$	1					$	1		$	1
Issuance of senior common stock, net			—			—						—			—
Balance, end of period			$	1		$	1					$	1		$	1
Common Stock
Balance, beginning of period			$	39		$	39					$	39		$	37
Issuance of common stock, net			—			—						1			2
Repurchase of common stock, net			—			—						(1)			—
Balance, end of period			$	39		$	39					$	39		$	39
Series F Preferred Stock
Balance, beginning of period			$	1		$	1					$	1		$	—
Issuance of Series F preferred stock, net			—			—						—			1
Balance, end of period			$	1		$	1					$	1		$	1
Additional Paid in Capital
Balance, beginning of period			$	728,580		$	705,629					$	721,327		$	671,134
Issuance of common stock and Series F preferred stock, net			690			9,856						6,725			44,513
Repurchase of common stock, net			—			—						998			—
Redemption of Series F preferred stock, net			183			—						401			55
Retirement of senior common stock, net			—			—						52			—
Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership			(53)			1,613						(103)			1,396
Balance, end of period			$	729,400		$	717,098					$	729,400		$	717,098
Accumulated Other Comprehensive Income
Balance, beginning of period			$	14,297		$	5,524					$	11,640		$	(1,346)
Comprehensive income			5,089			6,790						7,218			13,660
Reclassification into interest expense			409			52						937			52
Balance, end of period			$	19,795		$	12,366					$	19,795		$	12,366
Distributions in Excess of Accumulated Earnings
Balance, beginning of period			$	(560,719)		$	(498,856)					$	(529,104)		$	(468,908)
Distributions declared to common, senior common, and preferred stockholders			(15,182)			(17,984)						(45,445)			(53,000)
Redemption of Series F preferred stock, net			(1)			—						(12)			(5)
Net income attributable to the Company			1,789			2,791						448			7,864
Balance, end of period			$	(574,113)		$	(514,050)					$	(574,113)		$	(514,050)
Total Stockholders' Equity

---

Balance, beginning of period			$	182,199		$	212,338					$	203,904		$	200,918
Issuance of common stock and Series F preferred stock, net			690			9,856						6,726			44,516
Repurchase of common stock, net			—			—						997			—
Redemption of Series F preferred stock, net			182			—						389			50
Retirement of senior common stock, net			—			—						52			—
Distributions declared to common, senior common, and preferred stockholders			(15,182)			(17,984)						(45,445)			(53,000)
Comprehensive income			5,089			6,790						7,218			13,660
Reclassification into interest expense			409			52						937			52
Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership			(53)			1,613						(103)			1,396
Net income attributable to the Company			1,789			2,791						448			7,864
Balance, end of period			$	175,123		$	215,455					$	175,123		$	215,455
Non-Controlling Interest
Balance, beginning of period			$	1,524		$	1,275					$	1,790		$	1,259
Distributions declared to Non-controlling OP Unit holders			(117)			(114)						(352)			(307)
Issuance of Non-controlling OP Units as consideration in real estate acquisitions, net			—			2,394						—			2,394
Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership			53			(1,613)						103			(1,396)
Net income (loss) available (attributable) to OP units held by Non-controlling OP Unitholders			3			(4)						(78)			(12)
Balance, end of period			$	1,463		$	1,938					$	1,463		$	1,938
Total Equity			$	176,586		$	217,393					$	176,586		$	217,393

Distributions

We paid the following distributions per share for the three and nine months ended September 30, 2023 and 2022:

						For the three months ended September 30,												For the nine months ended September 30,
						2023						2022						2023						2022
Common Stock and Non-controlling OP Units						$	0.30000					$	0.37620					$	0.90000					$	1.12860
Senior Common Stock						0.2625						0.2625						0.7875						0.7875
Series E Preferred Stock						0.414063						0.414063						1.242189						1.242189
Series F Preferred Stock						0.375						0.375						1.125						1.125
Series G Preferred Stock						0.375						0.375						1.125						1.125

Recent Activity

Common Stock ATM Programs

On February 22, 2022, we entered into Amendment No. 1 to the At-the-Market Equity Offering Sales Agreement, dated December 3, 2019 (together, the “Prior Common Stock Sales Agreement”). The amendment permitted shares of common stock to be issued pursuant to the Prior Common Stock Sales Agreement under the 2020 Registration Statement, and future registration statements on Form S-3 (the “Prior Common Stock ATM Program”). During the nine months ended September 30, 2023, we sold 0.2 million shares of common stock, raising approximately $4.0 million in net proceeds under our At-the-Market Equity Offering Sales Agreement with sales agents Robert W. Baird & Co. Incorporated (“Baird”), Goldman Sachs & Co. LLC (“Goldman Sachs”), Stifel, Nicolaus & Company, Incorporated, (“Stifel”) BTIG, LLC, and Fifth Third Securities, Inc. (“Fifth Third”). We terminated the Prior Common Stock Sales Agreement effective as of February 10, 2023 in connection with the expiration of the 2020 Registration Statement on February 11, 2023.

---

On March 3, 2023, we entered into an At-the-Market Equity Offering Sales Agreement (the “2023 Common Stock Sales Agreement”), with BofA Securities, Inc. (“BofA”), Goldman Sachs, Baird, KeyBanc Capital Markets Inc. (“KeyBanc”), and Fifth Third (collectively the “Common Stock Sales Agents”). In connection with the 2023 Common Stock Sales Agreement, we filed prospectus supplements dated March 3, 2023 and March 7, 2023, to the prospectus dated November 23, 2022, with the SEC, for the offer and sale of an aggregate offering amount of up to $250.0 million of common stock. During the nine months ended September 30, 2023, we did not sell any shares of common stock under the 2023 Common Stock Sales Agreement.

Common Stock Buyback Program

During the nine months ended September 30, 2023, we repurchased $1.0 million worth of our common stock through our common stock repurchase program.

Mezzanine Equity

Our 6.625% Series E Cumulative Redeemable Preferred Stock (“Series E Preferred Stock”), and our 6.00% Series G Cumulative Redeemable Preferred Stock (“Series G Preferred Stock”) are classified as mezzanine equity in our condensed consolidated balance sheets because both are redeemable at the option of the shareholder upon a change of control of greater than 50%. A change in control of our company, outside of our control, is only possible if a tender offer is accepted by over 90% of our shareholders. All other change in control situations would require input from our Board of Directors. In addition, our Series E Preferred Stock and Series G Preferred Stock are redeemable at the option of the applicable shareholder in the event a delisting event occurs. We will periodically evaluate the likelihood that a delisting event or change of control of greater than 50% will take place, and if we deem this probable, we adjust the Series E Preferred Stock, and Series G Preferred Stock presented in mezzanine equity to their redemption value, with the offset to gain (loss) on extinguishment. We currently believe the likelihood of a change of control of greater than 50%, or a delisting event, is remote.

Prior to February 10, 2023, we had an At-the-Market Equity Offering Sales Agreement (the “Series E Preferred Stock Sales Agreement”) with sales agents Baird, Goldman Sachs, Stifel, Fifth Third, and U.S. Bancorp Investments, Inc., pursuant to which we could, from time to time, offer to sell shares of our Series E Preferred Stock, in an aggregate offering price of up to $100.0 million. We did not sell any shares of our Series E Preferred Stock pursuant to the Series E Preferred Stock Sales Agreement during the nine months ended September 30, 2023. However, we terminated the agreement effective as of February 10, 2023.

Universal Shelf Registration Statements

On January 29, 2020, we filed the 2020 Registration Statement. The 2020 Registration Statement was declared effective on February 11, 2020. The 2020 Registration Statement allowed us to issue up to $800.0 million of securities. Of the $800.0 million of available capacity under our 2020 Registration Statement, approximately $636.5 million was reserved for the sale of our Series F Preferred Stock, and $63.0 million was reserved for our Prior Common Stock ATM Program. The 2020 Registration Statement expired on February 11, 2023.

On November 23, 2022, we filed the 2022 Registration Statement. There is no limit on the aggregate amount of the securities that we may offer pursuant to the 2022 Registration Statement.

Series F Preferred Stock

On February 20, 2020, we filed with the Maryland Department of Assessments and Taxation Articles Supplementary (i) setting forth the rights, preferences and terms of the Series F Preferred Stock and (ii) reclassifying and designating 26,000,000 shares of our authorized and unissued shares of common stock as shares of Series F Preferred Stock. The reclassification decreased the number of shares classified as common stock from 86,290,000 shares immediately prior to the reclassification to 60,290,000 shares immediately after the reclassification. We sold 229,677 shares of our Series F Preferred Stock, raising $5.2 million in net proceeds, during the nine months ended September 30, 2023.

Non-controlling Interest in Operating Partnership

As of September 30, 2023 and December 31, 2022, we owned approximately 99.0% and 99.0%, respectively, of the outstanding OP Units.

---

As discussed in Note 1, the Company identified errors in its calculation of the depreciation of tenant funded improvement assets at a number of its properties. A summary of the corrections to the impacted financial statement line items in the Company’s previously issued Consolidated Statements of Operations and Comprehensive Income, Consolidated Statements of Cash Flows and Consolidated Statements of Equity for the quarter ended September 30, 2022, and Consolidated Balance Sheets for the year ended December 31, 2022 included in previously filed Annual Reports on Form 10-K and Condensed Consolidated Statements of Operations and Comprehensive Income, Condensed Consolidated Statements of Cash Flows and the Stockholders’ Equity tables for periods presented below, which were presented in previously filed Quarterly Reports on Form 10-Q, is as follows:

Condensed Consolidated Statements of Operations and Comprehensive Income
						Three Months Ended September 30, 2022																		Nine Months Ended September 30, 2022
						As Previously Reported						Adjustments						As Revised						As Previously Reported						Adjustments						As Revised
Operating expenses
Depreciation and amortization						$	15,764					$	(290)					$	15,474					$	45,672					$	(393)					$	45,279
Total operating expense before incentive fee waiver						$	37,448					$	(290)					$	37,158					$	90,932					$	(393)					$	90,539
Total operating expenses						$	37,448					$	(290)					$	37,158					$	90,932					$	(393)					$	90,539
Net income						$	2,497					$	290					$	2,787					$	7,459					$	393					$	7,852
Net income available to the Company						$	2,501					$	290					$	2,791					$	7,471					$	393					$	7,864
Net loss attributable to common stockholders						$	(600)					$	290					$	(310)					$	(1,778)					$	393					$	(1,385)
Loss per weighted average share of common stock - basic & diluted
Loss attributable to common shareholders						$	(0.02)					$	0.01					$	(0.01)					$	(0.05)					$	0.01					$	(0.04)
Comprehensive income
Net income						$	2,497					$	290					$	2,787					$	7,459					$	393					$	7,852
Total comprehensive income available to the Company						$	9,291					$	290					$	9,581					$	21,131					$	393					$	21,524

Consolidated Balance Sheets
						As of December 31, 2022
						As Previously Reported						Adjustments						As Revised
ASSETS
Less: accumulated depreciation						$	286,994					$	(844)					$	286,150
Total real estate, net						$	1,000,303					$	844					$	1,001,147
Real estate and related assets held for sale						$	3,013					$	280					$	3,293
TOTAL ASSETS						$	1,201,509					$	1,124					$	1,202,633
EQUITY
Distributions in excess of accumulated earnings						$	(530,228)					$	1,124					$	(529,104)
TOTAL STOCKHOLDERS' EQUITY						$	202,780					$	1,124					$	203,904
TOTAL EQUITY						$	204,570					$	1,124					$	205,694
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY						$	1,201,509					$	1,124					$	1,202,633

---

Stockholders’ Equity
						Three Months Ended September 30, 2022																		Nine Months Ended September 30, 2022
						As Previously Reported						Adjustments						As Revised						As Previously Reported						Adjustments						As Revised
Distributions in Excess of Accumulated Earnings
Balance, beginning of period						$	(498,574)					$	(282)					$	(498,856)					$	(468,523)					$	(385)					$	(468,908)
Net income attributable to the Company						2,501						290						2,791						7,471						393						7,864
Balance, end of period						$	(514,057)					$	7					$	(514,050)					$	(514,057)					$	7					$	(514,050)
Total Stockholders' Equity
Balance, beginning of period						$	212,620					$	(282)					$	212,338					$	201,303					$	(385)					$	200,918
Net income attributable to the Company						2,501						290						2,791						7,471						393						7,864
Balance, end of period						$	215,448					$	7					$	215,455					$	215,448					$	7					$	215,455
Total Equity						$	217,386					$	7					$	217,393					$	217,386					$	7					$	217,393

Condensed Consolidated Statements of Cash Flows
						Nine Months Ended September 30, 2022
						As Previously Reported						Adjustments						As Revised
Cash flows from operating activities:
Net income						$	7,459					$	393					$	7,852
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization						45,672						(393)						45,279

Distributions

On October 10, 2023, our Board of Directors declared the following monthly distributions for the months of October, November and December of 2023:

 

Record Date						Payment Date						Common Stock and Non-controlling OP Unit Distributions per Share						Series E Preferred Distributions per Share						Series G Preferred Distributions per Share
October 20, 2023						October 31, 2023						$	0.10					$	0.138021					$	0.125
November 20, 2023						November 30, 2023						0.10						0.138021						0.125
December 18, 2023						December 29, 2023						0.10						0.138021						0.125
												$	0.30					$	0.414063					$	0.375

Senior Common Stock Distributions

Payable to the Holders of Record During the Month of:

Payment Date

Distribution per Share

October

November 3, 2023

$

0.0875

November

December 5, 2023

0.0875

December

January 5, 2024

0.0875

$

0.2625

---

Series F Preferred Stock Distributions

Record Date

Payment Date

Distribution per Share

October 25, 2023

November 3, 2023

$

0.125

November 28, 2023

December 5, 2023

0.125

December 27, 2023

January 5, 2024

0.125

$

0.375

Equity Activity

Subsequent to September 30, 2023 and through November 6, 2023, we raised $0.1 million in net proceeds from the sale of 4,318 shares of Series F Preferred Stock.

Acquisition Activity

On October 12, 2023, we purchased a 69,920 square foot industrial property in Allentown, Pennsylvania for $7.8 million. The property is fully leased to one tenant on a 20-year lease.

On November 3, 2023, we purchased a 67,709 square foot industrial property in Indianapolis, Indiana for $4.5 million. The property is fully leased to one tenant on a 20-year lease.

Sale Activity

On October 2, 2023, we sold our 146,483 square foot office property in Columbia, South Carolina for $7.0 million. We realized a $2.9 million gain on sale, net.

Financing Activity

On October 2, 2023, we repaid $9.0 million in fixed rate debt, collateralized by one property, at an interest rate of 4.04%. We realized a $2.8 million gain on debt extinguishment.

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

v3.23.3

Cover - shares	9 Months Ended
	Sep. 30, 2023	Nov. 06, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-33097
Entity Registrant Name	GLADSTONE COMMERCIAL CORP
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	02-0681276
Entity Address, Address Line One	1521 Westbranch Drive,
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	McLean,
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	22102
City Area Code	703
Local Phone Number	287-5800
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		39,948,820
Entity Central Index Key	0001234006
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	GOOD
Security Exchange Name	NASDAQ
7.00% Series D Cumulative Redeemable Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	6.625% Series E Cumulative Redeemable Preferred Stock, par value $0.001 per share
Trading Symbol	GOODN
Security Exchange Name	NASDAQ
6.625% Series E Cumulative Redeemable Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	6.00% Series G Cumulative Redeemable Preferred Stock, par value $0.001 per share
Trading Symbol	GOODO
Security Exchange Name	NASDAQ

v3.23.3

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands		Sep. 30, 2023	Dec. 31, 2022
ASSETS
Real estate, at cost		$ 1,226,461	$ 1,287,297
Less: accumulated depreciation		291,986	286,150
Total real estate, net		934,475	1,001,147
Lease intangibles, net		102,629	111,622
Real estate and related assets held for sale		29,350	3,293
Cash and cash equivalents		18,263	11,653
Restricted cash		3,811	4,339
Funds held in escrow		8,509	8,818
Right-of-use assets from operating leases		4,951	5,131
Deferred rent receivable, net		40,462	38,884
Other assets		24,706	17,746
TOTAL ASSETS		1,167,156	1,202,633
LIABILITIES
Mortgage notes payable, net	[1]	310,974	359,389
Borrowings under Revolver		70,950	23,250
Borrowings under Term Loan A, Term Loan B and Term Loan C, net		367,085	366,567
Deferred rent liability, net		31,814	39,997
Operating lease liabilities		5,148	5,308
Asset retirement obligation		4,843	4,793
Accounts payable and accrued expenses		13,583	9,606
Liabilities related to assets held for sale		631	0
TOTAL LIABILITIES		820,529	826,883
Commitments and contingencies	[2]
MEZZANINE EQUITY
Series E and G redeemable preferred stock, net, par value $0.001 per share; $25 per share liquidation preference; 10,750,886 and 10,751,486 shares authorized; and 7,052,334 and 7,052,934 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively	[3]	170,041	170,056
EQUITY
Senior common stock, par value $0.001 per share; 950,000 shares authorized; and 406,425 and 431,064 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively	[3]	1	1
Common stock, par value $0.001 per share, 62,315,414 and 62,305,727 shares authorized; and 39,917,995 and 39,744,359 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively	[3]	39	39
Series F redeemable preferred stock, par value $0.001 per share; $25 per share liquidation preference; 25,983,700 and 25,992,787 shares authorized and 860,677 and 670,895 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively	[3]	1	1
Additional paid in capital		729,400	721,327
Accumulated other comprehensive income		19,795	11,640
Distributions in excess of accumulated earnings		(574,113)	(529,104)
TOTAL STOCKHOLDERS' EQUITY		175,123	203,904
OP Units held by Non-controlling OP Unitholders	[3]	1,463	1,790
TOTAL EQUITY		176,586	205,694
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY		1,167,156	1,202,633
Related Party
LIABILITIES
Other liabilities	[1]	2,552	3,356
Nonrelated Party
LIABILITIES
Other liabilities		$ 12,949	$ 14,617
[1] Refer to Note 2 “Related-Party Transactions” [2] Refer to Note 7 “Commitments and Contingencies” [3] Refer to Note 8 “Equity and Mezzanine Equity”

v3.23.3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Senior common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Senior common stock, shares authorized (in shares)	950,000	950,000
Senior common stock, shares issued (in shares)	406,425	431,064
Senior common stock, shares outstanding (in shares)	406,425	431,064
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	62,323,441	62,305,727
Common stock, shares issued (in shares)	39,917,995	39,744,359
Common stock, shares outstanding (in shares)	39,917,995	39,744,359
Series E And G Preferred Stock
Redeemable preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Redeemable preferred stock, liquidation preference (in dollars per share)	$ 25	$ 25
Redeemable preferred stock, shares authorized (in shares)	10,750,886	10,751,486
Redeemable preferred stock, shares issued (in shares)	7,052,334	7,052,934
Redeemable preferred stock, shares outstanding (in shares)	7,052,334	7,052,934
Series F Preferred Stock
Redeemable preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Redeemable preferred stock, liquidation preference (in dollars per share)	$ 25	$ 25
Redeemable preferred stock, shares authorized (in shares)	25,975,673	25,992,787
Redeemable preferred stock, shares issued (in shares)	899,049	670,895
Redeemable preferred stock, shares outstanding (in shares)	899,049	670,895

v3.23.3

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Operating revenues
Lease revenue		$ 36,464	$ 39,834	$ 111,675	$ 111,764
Total operating revenues		36,464	39,834	111,675	111,764
Operating expenses
Depreciation and amortization		12,485	15,474	44,125	45,279
Property operating expenses		6,821	6,536	20,286	20,118
Base management fee	[1]	1,597	1,603	4,808	4,727
Incentive fee	[1]	0	1,513	0	4,193
Administrative fee	[1]	624	481	1,734	1,342
General and administrative		1,306	833	3,437	2,788
Impairment charge		6,754	10,718	13,577	12,092
Total operating expenses		29,587	37,158	87,967	90,539
Other income (expense)
Interest expense		(9,936)	(9,107)	(27,845)	(22,813)
Gain on sale of real estate, net		4,696	8,902	4,245	8,902
Other income		155	316	262	538
Total other (expense) income, net		(5,085)	111	(23,338)	(13,373)
Net income		1,792	2,787	370	7,852
Net (income) loss (available) attributable to OP Units held by Non-controlling OP Unitholders		(3)	4	78	12
Net income available to the Company		1,789	2,791	448	7,864
Distributions attributable to Series E, F, and G preferred stock		(3,099)	(2,987)	(9,179)	(8,900)
Distributions attributable to senior common stock		(108)	(114)	(323)	(344)
Loss on extinguishment of Series F preferred stock		(1)	0	(12)	(5)
Gain on repurchase of Series G preferred stock		0	0	3	0
Net loss attributable to common stockholders		$ (1,419)	$ (310)	$ (9,063)	$ (1,385)
Loss per weighted average share of common stock - basic & diluted
Loss attributable to common shareholders, Basic (in dollars per share)		$ (0.04)	$ (0.01)	$ (0.23)	$ (0.04)
Loss attributable to common shareholders, Diluted (in dollars per share)		$ (0.04)	$ (0.01)	$ (0.23)	$ (0.04)
Weighted average shares of common stock outstanding
Basic (in shares)		39,917,995	39,504,734	39,939,660	38,723,581
Diluted (in shares)		39,917,995	39,504,734	39,939,660	38,723,581
Earnings per weighted average share of senior common stock (in dollars per share)		$ 0.27	$ 0.26	$ 0.79	$ 0.78
Weighted average shares of senior common stock outstanding - basic (in shares)		406,425	431,064	411,075	438,556
Comprehensive income
Change in unrealized gain related to interest rate hedging instruments, net		$ 5,089	$ 6,790	$ 7,218	$ 13,660
Other Comprehensive gain		5,089	6,790	7,218	13,660
Net income		1,792	2,787	370	7,852
Comprehensive income		6,881	9,577	7,588	21,512
Comprehensive (income) loss (available) attributable to OP Units held by Non-controlling OP Unitholders		(3)	4	78	12
Total comprehensive income available to the Company		$ 6,878	$ 9,581	$ 7,666	$ 21,524
[1] Refer to Note 2 “Related-Party Transactions”

v3.23.3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income	$ 370	$ 7,852
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	44,125	45,279
Impairment charge	13,577	12,092
Gain on sale of real estate, net	(4,245)	(8,902)
Amortization of deferred financing costs	1,248	3,066
Amortization of deferred rent asset and liability, net	(5,772)	(2,483)
Amortization of discount and premium on assumed debt, net	31	36
Asset retirement obligation expense	94	68
Amortization of right-of-use asset from operating leases and operating lease liabilities, net	20	23
Operating changes in assets and liabilities
Decrease (increase) in other assets	2,279	(1,476)
Decrease in deferred rent receivable	(2,524)	(1,192)
Increase in accounts payable and accrued expenses	2,320	3,388
(Decrease) increase in amount due to Adviser and Administrator	(804)	273
(Decrease) increase in other liabilities	(894)	598
Leasing commissions paid	(1,336)	(1,724)
Net cash provided by operating activities	48,489	56,898
Cash flows from investing activities:
Acquisition of real estate and related intangible assets	(17,539)	(95,882)
Improvements of existing real estate	(6,369)	(2,490)
Proceeds from sale of real estate	22,174	26,847
Receipts from lenders for funds held in escrow	3,662	3,529
Payments to lenders for funds held in escrow	(3,353)	(5,689)
Receipts from tenants for reserves	352	1,513
Payments to tenants from reserves	(2,165)	(3,106)
Deposits on future acquisitions	(350)	(258)
Net cash used in investing activities	(3,588)	(75,536)
Cash flows from financing activities:
Proceeds from issuance of equity	9,775	45,232
Offering costs paid	(500)	(895)
Redemption of Series F preferred stock	(413)	(55)
Retirement of Senior Common stock	(55)	0
Repurchase of Series G preferred stock	(12)	0
Repurchase of common stock	(998)	0
Borrowings under mortgage notes payable	9,000	56,313
Payments for deferred financing costs	(375)	(5,202)
Principal repayments on mortgage notes payable	(57,637)	(138,889)
Borrowings from revolving credit facility	93,100	87,250
Repayments on revolving credit facility	(45,400)	(113,050)
Borrowings on term loan	0	150,000
Repayments on term loan	0	(5,000)
Increase in security deposits	141	464
Distributions paid for common, senior common, preferred stock and Non-controlling OP Unitholders	(45,445)	(53,022)
Net cash (used in) provided by financing activities	(38,819)	23,146
Net increase in cash, cash equivalents, and restricted cash	6,082	4,508
Cash, cash equivalents, and restricted cash at beginning of period	15,992	13,178
Cash, cash equivalents, and restricted cash at end of period	22,074	17,686
SUPPLEMENTAL AND NON-CASH INFORMATION
Tenant funded fixed asset improvements included in deferred rent liability, net	(1,312)	16,668
Unrealized gain related to interest rate hedging instruments, net	7,218	13,660
Capital improvements and leasing commissions included in accounts payable and accrued expenses	3,099	1,142
Increase in asset retirement obligation assumed in acquisition	0	718
Non-controlling OP Units issued in connection with acquisition	0	2,393
Dividends paid on Series F Preferred Stock via additional share issuances	355	284
Cash and cash equivalents	18,263	13,540
Restricted cash	3,811	4,146
Total cash, cash equivalents, and restricted cash shown in the consolidated statement of cash flows	$ 22,074	$ 17,686

v3.23.3

Organization, Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Basis of Presentation and Significant Accounting Policies	Organization, Basis of Presentation and Significant Accounting Policies Gladstone Commercial Corporation is a real estate investment trust (“REIT”) that was incorporated under the General Corporation Law of the State of Maryland on February 14, 2003. We focus on acquiring, owning and managing primarily industrial and office properties. Subject to certain restrictions and limitations, our business is managed by Gladstone Management Corporation, a Delaware corporation (the “Adviser”), and administrative services are provided by Gladstone Administration, LLC, a Delaware limited liability company (the “Administrator”), each pursuant to a contractual arrangement with us. Our Adviser and Administrator collectively employ all of our personnel and pay their salaries, benefits, and other general expenses directly. Gladstone Commercial Corporation conducts substantially all of its operations through a subsidiary, Gladstone Commercial Limited Partnership, a Delaware limited partnership (the “Operating Partnership”). All references herein to “we,” “our,” “us” and the “Company” mean Gladstone Commercial Corporation and its consolidated subsidiaries, except where it is made clear that the term means only Gladstone Commercial Corporation. Interim Financial Information Our interim financial statements are prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and in accordance with Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. The year-end balance sheet data presented herein was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of our management, all adjustments, consisting solely of normal recurring accruals, necessary for the fair statement of financial statements for the interim period, have been included. The interim financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 22, 2023. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year. Revision of Previously Issued Financial Statements In connection with the preparation of its financial statements for the second quarter of 2023, the Company identified errors in the calculation of depreciation of tenant funded improvement assets at a number of its properties. The Company had depreciated these assets through a term that was different than their useful lives, the correction of which resulted in changes to depreciation expense, a non-cash amount, and net income. The correction of these errors had an immaterial impact on the Incentive Fee for each period presented and had no impact on any other Advisory fees. The identified errors were included in the Company's previously issued 2021 quarterly and annual financial statements, 2022 quarterly and annual financial statements, and quarterly financial statements for the three months ended March 31, 2023. The Company evaluated the errors and determined that the related impact was not material to the Consolidated Statements of Operations and Comprehensive Income, Consolidated Balance Sheets, Consolidated Statements of Cash Flows or Consolidated Statements of Equity for any period impacted. The Company has revised the previously issued Condensed Consolidated Statements of Operations and Comprehensive Income, Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Cash Flows and Stockholders’ Equity tables as of and for the three and nine months ended September 30, 2022 to correct for such errors and these revisions are reflected in this Form 10-Q. The Company will also correct previously reported financial information for these errors in its future filings, as applicable. A summary of the corrections to the impacted financial statement line items to the Company’s previously issued Consolidated Statements of Operations and Comprehensive Income, Consolidated Balance Sheets, Consolidated Statements of Cash Flows and Consolidated Statements of Equity for each affected period is presented in Note 9, “Revision of Previously Issued Financial Statements.” Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Significant Accounting Policies The preparation of our financial statements in accordance with GAAP requires management to make judgments that are subjective in nature and requires management to make certain estimates and assumptions. Application of these accounting policies involves the exercise of judgment regarding the use of assumptions as to future uncertainties, and as a result, actual results could materially differ from these estimates. A summary of all of our significant accounting policies is provided in Note 1, “Organization, Basis of Presentation and Significant Accounting Policies,” to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022. There were no material changes to our critical accounting policies during the three and nine months ended September 30, 2023.

v3.23.3

Related-Party Transactions	9 Months Ended
	Sep. 30, 2023
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party Transactions Gladstone Management and Gladstone Administration We are externally managed pursuant to contractual arrangements with our Adviser and our Administrator, which collectively employ all of our personnel and pay their salaries, benefits, and other general expenses directly. Both our Adviser and Administrator are affiliates of ours, as their parent company is owned and controlled by Mr. David Gladstone, our chairman and chief executive officer. Two of our executive officers, Mr. Gladstone and Mr. Terry Lee Brubaker (our chief operating officer) serve as directors and executive officers of our Adviser and our Administrator. Our president, Mr. Arthur “Buzz” Cooper, is also executive vice president of commercial and industrial real estate of our Adviser. Mr. Michael LiCalsi, our general counsel and secretary, also serves as our Administrator’s president, general counsel and secretary, as well as executive vice president of administration of our Adviser. We have entered into an advisory agreement with our Adviser, as amended from time to time (the “Advisory Agreement”), and an administration agreement with our Administrator (the “Administration Agreement”). The services and fees under the Advisory Agreement and Administration Agreement are described below. As of September 30, 2023 and December 31, 2022, $2.6 million and $3.4 million, respectively, were collectively due to our Adviser and Administrator. Our entrance into the Advisory Agreement and each amendment thereto has been approved unanimously by our Board of Directors. Our Board of Directors reviews and considers renewing the agreements with our Adviser and Administrator each July. During their July 2023 meeting, our Board of Directors reviewed and renewed the Administration Agreement for an additional year, through August 31, 2024 and simultaneously entered into the Eighth Amended and Restated Investment Advisory Agreement (the “Eighth Amended Advisory Agreement”). Base Management Fee On July 14, 2020, we amended and restated the Advisory Agreement, which replaced the previous calculation of the base management fee with a calculation based on Gross Tangible Real Estate. The revised base management fee is payable quarterly in arrears and calculated at an annual rate of 0.425% (0.10625% per quarter) of the prior calendar quarter’s “Gross Tangible Real Estate,” defined in the Advisory Agreement as the current gross value of our property portfolio (meaning the aggregate of each property’s original acquisition price plus the cost of any subsequent capital improvements thereon). The calculation of the other fees in the Advisory Agreement was unchanged. For the three and nine months ended September 30, 2023, we recorded a base management fee of $1.6 million and $4.8 million, respectively. For the three and nine months ended September 30, 2022, we recorded a base management fee of $1.6 million and $4.7 million, respectively. Incentive Fee Pursuant to the Advisory Agreement, the calculation of the incentive fee rewards the Adviser in circumstances where our quarterly Core FFO (defined at the end of this paragraph), before giving effect to any incentive fee, or pre-incentive fee Core FFO, exceeds 2.0% quarterly, or 8.0% annualized, of adjusted total stockholders’ equity (after giving effect to the base management fee but before giving effect to the incentive fee). We refer to this as the hurdle rate. The Adviser will receive 15.0% of the amount of our pre-incentive fee Core FFO that exceeds the hurdle rate. However, in no event shall the incentive fee for a particular quarter exceed by 15.0% (the cap) the average quarterly incentive fee paid by us for the previous four quarters (excluding quarters for which no incentive fee was paid). Core FFO (as defined in the Advisory Agreement) is GAAP net (loss) income (attributable) available to common stockholders, excluding the incentive fee, depreciation and amortization, any realized and unrealized gains, losses or other non-cash items recorded in net (loss) income (attributable) available to common stockholders for the period, and one-time events pursuant to changes in GAAP. On January 10, 2023, the Company amended and restated the Advisory Agreement by entering into the Seventh Amended and Restated Investment Advisory Agreement between the Company and the Adviser (the “Seventh Amended Advisory Agreement”), as approved unanimously by our Board of Directors, including specifically, our independent directors. The Seventh Amended Advisory Agreement contractually eliminated the payment of the incentive fee for the quarters ended March 31, 2023 and June 30, 2023. The calculation of the other fees was unchanged. On July 11, 2023, the Company entered into the Eighth Amended Advisory Agreement, as approved unanimously by our Board of Directors, including specifically, our independent directors. The Eighth Amended Advisory Agreement contractually eliminated the payment of the incentive fee for the quarters ending September 30, 2023 and December 31, 2023. In addition, the Eighth Amended Advisory Agreement also clarified that for any future quarter whereby an incentive fee would exceed by greater than 15% the average quarterly incentive fee paid, the measurement would be versus the last four quarters where an incentive fee was actually paid. The calculation of the other fees remains unchanged. For the three and nine months ended September 30, 2023, the contractually eliminated incentive fee would have been $0.9 million and $3.4 million, respectively. For the three and nine months ended September 30, 2022, we recorded an incentive fee of $1.5 million and $4.2 million, respectively. The Adviser did not waive any portion of the incentive fee for the three and nine months ended September 30, 2022. Capital Gain Fee Under the Advisory Agreement, we will pay to the Adviser a capital gain-based incentive fee that will be calculated and payable in arrears as of the end of each fiscal year (or upon termination of the Advisory Agreement). In determining the capital gain fee, we will calculate aggregate realized capital gains and aggregate realized capital losses for the applicable time period. For this purpose, aggregate realized capital gains and losses, if any, equals the realized gain or loss calculated by the difference between the sales price of the property, less any costs to sell the property and the current gross value of the property (equal to the property’s original acquisition price plus any subsequent non-reimbursed capital improvements) of the disposed property. At the end of the fiscal year, if this number is positive, then the capital gain fee payable for such time period shall equal 15.0% of such amount. No capital gain fee was recognized during the three and nine months ended September 30, 2023 or 2022. Termination Fee The Advisory Agreement includes a termination fee clause whereby, in the event of our termination of the agreement without cause (with 120 days’ prior written notice and the vote of at least two-thirds of our independent directors), a termination fee would be payable to the Adviser equal to two times the sum of the average annual base management fee and incentive fee earned by the Adviser during the 24-month period prior to such termination. A termination fee is also payable if the Adviser terminates the Advisory Agreement after we have defaulted and applicable cure periods have expired. The Advisory Agreement may also be terminated for cause by us (with 30 days’ prior written notice and the vote of at least two-thirds of our independent directors), with no termination fee payable. Cause is defined in the agreement to include if the Adviser breaches any material provisions thereof, the bankruptcy or insolvency of the Adviser, dissolution of the Adviser and fraud or misappropriation of funds. Administration Agreement Under the terms of the Administration Agreement, we pay separately for our allocable portion of the Administrator’s overhead expenses in performing its obligations to us including, but not limited to, rent and our allocable portion of the salaries and benefits expenses of our Administrator’s employees, including, but not limited to, our chief financial officer, treasurer, chief compliance officer, general counsel and secretary (who also serves as our Administrator’s president, general counsel and secretary), and their respective staffs. Our allocable portion of the Administrator’s expenses are generally derived by multiplying our Administrator’s total expenses by the approximate percentage of time the Administrator’s employees perform services for us in relation to their time spent performing services for all companies serviced by our Administrator under contractual agreements. We believe that the methodology of allocating the Administrator’s total expenses by approximate percentage of time services were performed among all companies serviced by our Administrator more closely approximates fees paid to actual services performed. For the three and nine months ended September 30, 2023, we recorded an administration fee of $0.6 million and $1.7 million, respectively. For the three and nine months ended September 30, 2022, we recorded an administration fee of $0.5 million and $1.3 million, respectively. Gladstone Securities Gladstone Securities, LLC (“Gladstone Securities”), is a privately held broker dealer registered with the Financial Industry Regulatory Authority and insured by the Securities Investor Protection Corporation. Gladstone Securities is an affiliate of ours, as its parent company is owned and controlled by David Gladstone, our chairman and chief executive officer. Mr. Gladstone also serves on the board of managers of Gladstone Securities. Mortgage Financing Arrangement Agreement We entered into an agreement with Gladstone Securities, effective June 18, 2013, for it to act as our non-exclusive agent to assist us with arranging mortgage financing for properties we own. In connection with this engagement, Gladstone Securities will, from time to time, continue to solicit the interest of various commercial real estate lenders or recommend to us third party lenders offering credit products or packages that are responsive to our needs. We pay Gladstone Securities a financing fee in connection with the services it provides to us for securing mortgage financing on any of our properties. The amount of these financing fees, which are payable upon closing of the financing, are based on a percentage of the amount of the mortgage, generally ranging from 0.15% to a maximum of 1.00% of the mortgage obtained. The amount of the financing fees may be reduced or eliminated, as determined by us and Gladstone Securities, after taking into consideration various factors, including, but not limited to, the involvement of any third-party brokers and market conditions. We paid financing fees to Gladstone Securities of $0.03 million and $0.1 million during the three and nine months ended September 30, 2023, which are included in mortgage payable, net, in the condensed consolidated balance sheets, or 0.38% and 0.29% of the mortgage principal secured. We paid financing fees to Gladstone Securities of $0.1 million and $0.3 million during the three and nine months ended September 30, 2022, which are included in mortgage payable, net, in the condensed consolidated balance sheets, or 0.29% and 0.32% of the mortgage principal secured. Our Board of Directors renewed the agreement for an additional year, through August 31, 2024, at its July 2023 meeting. Dealer Manager Agreement On February 20, 2020, we entered into a dealer manager agreement, as amended on February 9, 2023 (together, the “Dealer Manager Agreement”), whereby Gladstone Securities acts as the exclusive dealer manager in connection with our offering (the “Offering”) of up to (i) 20,000,000 shares of 6.00% Series F Cumulative Redeemable Preferred Stock, par value $0.001 per share (the “Series F Preferred Stock”), on a “reasonable best efforts” basis (the “Primary Offering”), and (ii) 6,000,000 shares of Series F Preferred Stock pursuant to our distribution reinvestment plan (the “DRIP”) to those holders of the Series F Preferred Stock who participate in such DRIP. The Series F Preferred Stock is registered with the SEC pursuant to an automatic registration statement on Form S-3 (File No. 333-268549), as the same may be amended and/or supplemented (the “2022 Registration Statement”), under the Securities Act of 1933, as amended, and is offered and sold pursuant to a prospectus supplement, dated February 9, 2023, and a base prospectus dated November 23, 2022 relating to the 2022 Registration Statement. During the years ended December 31, 2020, 2021 and 2022, the Series F Preferred Stock was registered with the SEC pursuant to a registration statement on Form S-3 (File No. 333-236143) (the “2020 Registration Statement”), and offered and sold pursuant to a prospectus supplement, dated February 20, 2020, and a base prospectus dated February 11, 2020. Under the Dealer Manager Agreement, Gladstone Securities, as dealer manager, provides certain sales, promotional and marketing services to us in connection with the Offering, and we pay Gladstone Securities (i) selling commissions of 6.0% of the gross proceeds from sales of Series F Preferred Stock in the Primary Offering (the “Selling Commissions”), and (ii) a dealer manager fee of 3.0% of the gross proceeds from sales of Series F Preferred Stock in the Primary Offering (the “Dealer Manager Fee”). No Selling Commissions or Dealer Manager Fee are paid with respect to shares sold pursuant to the DRIP. Gladstone Securities may, in its sole discretion, re-allow a portion of the Dealer Manager Fee to participating broker-dealers in support of the Offering. We paid fees of $0.1 million and $0.5 million to Gladstone Securities during the three and nine months ended September 30, 2023, respectively, in connection with the Offering. We paid fees of $0.1 million and $0.4 million to Gladstone Securities during the three and nine months ended September 30, 2022, respectively, in connection with the Offering.

v3.23.3

Loss Per Share of Common Stock	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Loss Per Share of Common Stock	Loss Per Share of Common StockThe following tables set forth the computation of basic and diluted loss per share of common stock for the three and nine months ended September 30, 2023 and 2022. The operating partnership units in the Operating Partnership (“OP Units”) held by holders who do not control the Operating Partnership (“Non-controlling OP Unitholders”) (which may be redeemed for shares of common stock) have been excluded from the diluted loss per share calculations, as there would be no effect on the amounts since the Non-controlling OP Unitholders’ share of loss would also be added back to net loss. Net loss figures are presented net of such non-controlling interests in the loss per share calculation. We computed basic loss per share for the three and nine months ended September 30, 2023 and 2022 using the weighted average number of shares outstanding during the respective periods. Diluted loss per share for the three and nine months ended September 30, 2023 and 2022 reflects additional shares of common stock related to our convertible senior common stock (the “Senior Common Stock”), if the effect of conversion would be dilutive, that would have been outstanding if such dilutive potential shares of common stock had been issued, as well as an adjustment to net loss attributable to common stockholders as applicable to common stockholders that would result from their assumed issuance (dollars in thousands, except per share amounts). For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Calculation of basic loss per share of common stock: Net loss attributable to common stockholders $ (1,419) $ (310) $ (9,063) $ (1,385) Denominator for basic weighted average shares of common stock (1) 39,917,995  39,504,734  39,939,660  38,723,581  Basic loss per share of common stock $ (0.04) $ (0.01) $ (0.23) $ (0.04) Calculation of diluted loss per share of common stock: Net loss attributable to common stockholders $ (1,419) $ (310) $ (9,063) $ (1,385) Net loss attributable to common stockholders plus assumed conversions (2) $ (1,419) $ (310) $ (9,063) $ (1,385) Denominator for basic weighted average shares of common stock (1) 39,917,995  39,504,734  39,939,660  38,723,581  Effect of convertible Senior Common Stock (2) —  —  —  —  Denominator for diluted weighted average shares of common stock (2) 39,917,995  39,504,734  39,939,660  38,723,581  Diluted loss per share of common stock $ (0.04) $ (0.01) $ (0.23) $ (0.04) (1)The weighted average number of OP Units held by Non-controlling OP Unitholders was 391,468 and 391,468 for the three and nine months ended September 30, 2023, respectively, and 273,072 and 262,412 for the three and nine months ended September 30, 2022, respectively. (2)We excluded convertible shares of Senior Common Stock of 345,132 and 363,246 from the calculation of diluted earnings per share for the three and nine months ended September 30, 2023 and 2022, respectively, because they were anti-dilutive.

v3.23.3

Real Estate and Intangible Assets	9 Months Ended
	Sep. 30, 2023
Real Estate [Abstract]
Real Estate and Intangible Assets	Real Estate and Intangible Assets Real Estate The following table sets forth the components of our investments in real estate as of September 30, 2023 and December 31, 2022, respectively, excluding real estate held for sale as of September 30, 2023 and December 31, 2022 (dollars in thousands): September 30, 2023 December 31, 2022 Real estate: Land (1) $ 143,815  $ 152,916  Building and improvements 1,025,384  1,069,407  Tenant improvements 57,262  64,974  Accumulated depreciation (291,986) (286,150) Real estate, net $ 934,475  $ 1,001,147  (1)This amount includes $4,436 of land value subject to land lease agreements which we may purchase at our option for a nominal fee. Real estate depreciation expense on building and tenant improvements was $8.9 million and $31.2 million for the three and nine months ended September 30, 2023, respectively. Real estate depreciation expense on building and tenant improvements was $10.7 million and $30.7 million for the three and nine months ended September 30, 2022, respectively. Acquisitions We acquired three properties during the nine months ended September 30, 2023 and acquired 11 industrial properties during the nine months ended September 30, 2022. The acquisitions are summarized below (dollars in thousands): Nine Months Ended Aggregate Square Footage Weighted Average Lease Term Aggregate Purchase Price Aggregate Capitalized Acquisition Costs September 30, 2023 (1) 183,803  18.7 years $ 17,539  $ 349  September 30, 2022 (2) 1,105,006  13.8 years $ 98,276  $ 776  (1)On April 14, 2023, we acquired a 76,089 square foot property in Riverdale, Illinois for $5.4 million. The property is fully leased to one tenant and had 20.0 years of remaining lease term at the time we acquired the property. On July 10, 2023, we acquired a 7,714 square foot property in Dallas-Fort Worth, Texas for $3.0 million. The property is fully leased to one tenant and had 9.9 years of remaining lease term at the time we acquired the property. On July 28, 2023, we acquired a 100,000 square foot property in Dallas-Fort Worth, Texas for $9.2 million. The property is fully leased to one tenant and had 20.0 years of remaining lease term at the time we acquired the property. (2)On February 24, 2022, we acquired an 80,000 square foot property in Wilkesboro, North Carolina for $7.5 million. The property is fully leased to one tenant and had 12.7 years of remaining lease term at the time we acquired the property. On March 11, 2022, we acquired a 56,000 square foot property in Oklahoma City, Oklahoma for $6.0 million. The property is fully leased to one tenant and had 7.0 years of remaining lease term at the time we acquired the property. On May 4, 2022, we acquired a two-property, 260,719 square foot portfolio in Cleveland, Ohio and Fort Payne, Alabama for $19.5 million. The properties are fully leased to one tenant and had 11.4 years of remaining lease term at the time we acquired the properties. On May 12, 2022, we acquired a three-property, 345,584 square foot portfolio in Wilmington, North Carolina for $18.9 million. The properties are fully leased to one tenant and had 13.1 years of remaining lease term at the time we acquired the properties. On August 5, 2022, we acquired a two-property, 246,000 square foot portfolio in Bridgeton, New Jersey and Vineland, New Jersey for $32.7 million. The properties are fully leased to one tenant and had 15.1 years of remaining lease term at the time we acquired the properties. On September 16, 2022, we acquired a 67,328 square foot property in Jacksonville, Florida for $8.1 million. The property is fully leased to one tenant and had 20.0 years of remaining lease term at the time we acquired the property. On September 20, 2022, we acquired a 49,375 square foot property in Fort Payne, Alabama for $5.6 million. The property is fully leased to one tenant and had 14.8 years of remaining lease term at the time we acquired the property. We determined the fair value of assets acquired and liabilities assumed related to the properties acquired during the nine months ended September 30, 2023 and 2022 as follows (dollars in thousands): Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Acquired assets and liabilities Purchase price Purchase price Land $ 2,714  $ 5,949  Building 11,423  77,903  Tenant Improvements 692  1,468  In-place Leases 1,001  4,907  Leasing Costs 1,270  5,387  Customer Relationships 439  2,937  Above Market Leases —  328  (1) Below Market Leases —  (603) (2) Total Purchase Price $ 17,539  $ 98,276  (1)This amount includes $9 of loans receivable included in Other assets on the condensed balance sheets. (2)This amount includes $32 of prepaid rent included in Other liabilities on the condensed consolidated balance sheets. Future Lease Payments Future operating lease payments from tenants under non-cancelable leases, excluding tenant reimbursement of expenses, for the three months ending December 31, 2023 and each of the five succeeding fiscal years and thereafter is as follows, excluding real estate held for sale as of September 30, 2023 (dollars in thousands): Year Tenant Lease Payments Three Months Ending December 31, 2023 $ 28,906  2024 112,878  2025 112,342  2026 106,748  2027 90,440  2028 75,223  Thereafter 357,055  In accordance with the lease terms, substantially all operating expenses are required to be paid by the tenant directly, or reimbursed to us from the tenant; however, we would be required to pay operating expenses on the respective properties in the event the tenants fail to pay them. Lease Revenue Reconciliation The table below sets forth the allocation of lease revenue between fixed contractual payments and variable lease payments for the three and nine months ended September 30, 2023 and 2022, respectively (dollars in thousands): For the three months ended September 30, (Dollars in Thousands) Lease revenue reconciliation 2023 2022 $ Change % Change Fixed lease payments $ 31,945  $ 35,752  $ (3,807) (10.6) % Variable lease payments 4,519  4,082  437  10.7  % $ 36,464  $ 39,834  $ (3,370) (8.5) % For the nine months ended September 30, (Dollars in Thousands) Lease revenue reconciliation 2023 2022 $ Change % Change Fixed lease payments $ 98,465  $ 98,961  $ (496) (0.5) % Variable lease payments 13,210  12,803  407  3.2  % $ 111,675  $ 111,764  $ (89) (0.1) % Intangible Assets The following table summarizes the carrying value of intangible assets, liabilities and the accumulated amortization for each intangible asset and liability class as of September 30, 2023 and December 31, 2022, respectively, excluding real estate held for sale as of September 30, 2023 and December 31, 2022 (dollars in thousands): September 30, 2023 December 31, 2022 Lease Intangibles Accumulated Amortization Lease Intangibles Accumulated Amortization In-place leases $ 98,904  $ (62,270) $ 104,394  $ (63,240) Leasing costs 83,075  (45,170) 85,038  (45,501) Customer relationships 63,614  (35,524) 69,586  (38,655) $ 245,593  $ (142,964) $ 259,018  $ (147,396) Deferred Rent Receivable/(Liability) Accumulated (Amortization)/Accretion Deferred Rent Receivable/(Liability) Accumulated (Amortization)/Accretion Above market leases $ 13,431  $ (10,546) $ 15,371  $ (11,909) Below market leases and deferred revenue (60,927) 29,113  (66,138) 26,141  Total amortization expense related to in-place leases, leasing costs and customer relationship lease intangible assets was $3.6 million and $12.9 million for the three and nine months ended September 30, 2023, respectively, and $4.7 million and $14.5 million for the three and nine months ended September 30, 2022, respectively, and is included in depreciation and amortization expense in the condensed consolidated statements of operations and comprehensive income. Total amortization related to above-market lease values was $0.1 million and $0.4 million for the three and nine months ended September 30, 2023, respectively, and $0.2 million and $0.6 million for the three and nine months ended September 30, 2022, respectively, and is included in lease revenue in the condensed consolidated statements of operations and comprehensive income. Total amortization related to below-market lease values was $1.8 million and $6.2 million for the three and nine months ended September 30, 2023, respectively, and $1.5 million and $3.1 million for the three and nine months ended September 30, 2022, respectively, and is included in lease revenue in the condensed consolidated statements of operations and comprehensive income. The weighted average amortization periods in years for the intangible assets acquired and liabilities assumed during the nine months ended September 30, 2023 and 2022, were as follows: Intangible Assets & Liabilities September 30, 2023 September 30, 2022 In-place leases 18.0 14.2 Leasing costs 18.0 14.2 Customer relationships 22.7 20.2 Above market leases 0.0 15.7 Below market leases 0.0 13.0 All intangible assets & liabilities 19.6 15.7

v3.23.3

Real Estate Dispositions, Held for Sale and Impairment Charges	9 Months Ended
	Sep. 30, 2023
Real Estate [Abstract]
Real Estate Dispositions, Held for Sale and Impairment Charges	Real Estate Dispositions, Held for Sale and Impairment Charges Real Estate Dispositions We sold five properties during the nine months ended September 30, 2023 and three properties during the nine months ended September 30, 2022. During the nine months ended September 30, 2023, we continued to execute our capital recycling program, whereby we sold non-core properties and redeployed proceeds to either fund property acquisitions in our target secondary growth markets or repay outstanding debt. We expect to continue to execute our capital recycling plan and sell non-core properties as reasonable disposition opportunities become available, and use the sales proceeds to acquire properties in our target, secondary growth markets or pay down outstanding debt. During the nine months ended September 30, 2023, we sold five non-core properties, located in Baytown, Texas; Birmingham, Alabama; Pittsburgh, Pennsylvania; Eatontown, New Jersey; and Taylorsville, Utah, which are summarized in the table below (dollars in thousands): Aggregate Square Footage Sold Aggregate Sales Price Aggregate Sales Costs Aggregate Impairment Charge for the Nine Months Ended September 30, 2023 Aggregate Gain on Sale of Real Estate, net 206,278  $ 23,650  $ 1,476  $ 3,591  $ 4,245  Our dispositions during the nine months ended September 30, 2023 were not classified as discontinued operations because they did not represent a strategic shift in operations, nor will such dispositions have a major effect on our operations and financial results. Accordingly, the operating results of these properties are included within continuing operations for all periods reported. The table below summarizes the components of operating income from real estate and related assets disposed of during the three and nine months ended September 30, 2023 and 2022 (dollars in thousands): For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Operating revenue $ 184  $ 565  $ 1,209  $ 2,501  Operating expense 60  510  4,427  (2) 2,251  Other income (expense), net 4,443  (1) (189) 3,790  (3) (502) Income (expense) from real estate and related assets sold $ 4,567  $ (134) $ 572  $ (252) (1)Includes a $4.7 million gain on sale of real estate, net, on three property sales. (2)Includes a $3.6 million impairment charge on one property. (3)Includes a $4.2 million gain on sale of real estate, net, on five property sales. Real Estate Held for Sale At September 30, 2023, we had four properties classified as held for sale, located in Columbia, South Carolina; Richardson, Texas; Columbus, Ohio; and Blaine, Minnesota. We consider these assets to be non-core to our long term strategy. At December 31, 2022, we had one property classified as held for sale, located in Columbia, South Carolina. The table below summarizes the components of the assets and liabilities held for sale at September 30, 2023 and December 31, 2022 reflected on the accompanying condensed consolidated balance sheets (dollars in thousands): September 30, 2023 December 31, 2022 Assets Held for Sale Total real estate held for sale $ 28,972  $ 3,293  Lease intangibles, net 369  —  Deferred rent receivable, net 9  —  Total Assets Held for Sale $ 29,350  $ 3,293  Liabilities Held for Sale Deferred rent liability, net $ 631  $ —  Total Liabilities Held for Sale $ 631  $ —  Impairment Charges We evaluated our portfolio for triggering events to determine if any of our held and used assets were impaired during the nine months ended September 30, 2023 and identified two held and used assets, located in Columbus, Ohio and Draper, Utah, which were impaired by $9.0 million. We also recognized an impairment charge of $4.6 million on two held for sale assets, located in Richardson, Texas and Taylorsville, Utah during the nine months ended September 30, 2023. In performing our held for sale assessment, the carrying value of these assets were above the fair value, less costs of sale. As a result, we impaired these properties to equal the fair market value less costs of sale. We recognized an impairment charge of $12.1 million during the nine months ended September 30, 2022 on two held for sale assets, located in Columbia, South Carolina and Parsippany, New Jersey. In performing our held for sale assessment, the carrying value of this asset was above the fair value, less costs of sale. As a result, we impaired this property to equal the fair market value less costs of sale.

v3.23.3

Mortgage Notes Payable and Credit Facility	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Mortgage Notes Payable and Credit Facility	Mortgage Notes Payable and Credit Facility Our $125.0 million unsecured revolving credit facility (“Revolver”), $160.0 million term loan facility (“Term Loan A”), $60.0 million term loan facility (“Term Loan B”), and $150.0 million term loan facility (“Term Loan C”), are collectively referred to herein as the Credit Facility. Our mortgage notes payable and Credit Facility as of September 30, 2023 and December 31, 2022 are summarized below (dollars in thousands): Encumbered properties at Carrying Value at Stated Interest Rates at Scheduled Maturity Dates at September 30, 2023 September 30, 2023 December 31, 2022 September 30, 2023 September 30, 2023 Mortgage and other secured loans: Fixed rate mortgage loans 49  $ 313,400  $ 362,037  (1) (2) Premiums and discounts, net —  (52) (83) N/A N/A Deferred financing costs, mortgage loans, net —  (2,374) (2,565) N/A N/A Total mortgage notes payable, net 49  $ 310,974  $ 359,389  (3) Variable rate revolving credit facility 82  (6) $ 70,950  $ 23,250  SOFR + 1.50% (4) 8/18/2026 Total revolver 82  $ 70,950  $ 23,250  Variable rate term loan facility A —  (6) $ 160,000  $ 160,000  SOFR + 1.45% (4) 8/18/2027 Variable rate term loan facility B —  (6) 60,000  60,000  SOFR + 1.45% (4) 2/11/2026 Variable rate term loan facility C —  (6) 150,000  150,000  SOFR + 1.45% (4) 2/18/2028 Deferred financing costs, term loan facility —  (2,915) (3,433) N/A N/A Total term loan, net N/A $ 367,085  $ 366,567  Total mortgage notes payable and credit facility 131  $ 749,009  $ 749,206  (5) (1)As of September 30, 2023, interest rates on our fixed rate mortgage notes payable varied from 2.80% to 6.63%. (2)As of September 30, 2023, we had 43 mortgage notes payable with maturity dates ranging from January 1, 2024 through August 1, 2037. (3)The weighted average interest rate on the mortgage notes outstanding as of September 30, 2023 was approximately 4.20%. (4)As of September 30, 2023, Secured Overnight Financing Rate (“SOFR”) was approximately 5.31%. (5)The weighted average interest rate on all debt outstanding as of September 30, 2023 was approximately 5.70%. (6)The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 82 unencumbered properties as of September 30, 2023. N/A - Not Applicable Mortgage Notes Payable As of September 30, 2023, we had 43 mortgage notes payable, collateralized by a total of 49 properties with a net book value of $496.5 million. We have limited recourse liabilities that could result from any one or more of the following circumstances: a borrower voluntarily filing for bankruptcy, improper conveyance of a property, fraud or material misrepresentation, misapplication or misappropriation of rents, security deposits, insurance proceeds or condemnation proceeds, or physical waste or damage to the property resulting from a borrower’s gross negligence or willful misconduct. As of September 30, 2023, we did not have any mortgages subject to recourse. We will also indemnify lenders against claims resulting from the presence of hazardous substances or activity involving hazardous substances in violation of environmental laws on a property.  During the nine months ended September 30, 2023, we repaid four mortgages, collateralized by four properties, which are summarized in the table below (dollars in thousands): Fixed Rate Debt Repaid Interest Rate on Fixed Rate Debt Repaid $ 46,530  4.78  % During the nine months ended September 30, 2023, we issued three mortgages, collateralized by three properties, which are summarized in the table below (dollars in thousands): Aggregate Fixed Rate Debt Issued Weighted Average Interest Rate on Fixed Rate Debt $ 9,000  6.10  % During the nine months ended September 30, 2023, we extended the maturity date of one mortgage, collateralized by one property, which is summarized in the table below (dollars in thousands): Fixed Rate Debt Extended Interest Rate on Fixed Rate Debt Extended Extension Term $ 8,769  6.50  % 1.0 year We made payments of $0.3 million and $0.4 million for deferred financing costs during the three and nine months ended September 30, 2023. We made payments of $5.6 million and $6.2 million for deferred financing costs during the three and nine months ended September 30, 2022. Scheduled principal payments of mortgage notes payable for the three months ending December 31, 2023, and each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands):   Year Scheduled Principal Payments Three Months Ending December 31, 2023 $ 11,995  2024 28,400  2025 36,420  2026 35,084  2027 95,040  2028 37,116  Thereafter 69,345  Total $ 313,400  (1) (1)This figure does not include $(0.1) million of premiums and (discounts), net, and $2.4 million of deferred financing costs, which are reflected in mortgage notes payable, net on the condensed consolidated balance sheets. We believe we will be able to address all mortgage notes payable maturing over the next 12 months through a combination of refinancing our existing indebtedness, cash from operations, proceeds from one or more equity offerings and availability on our Credit Facility. Interest Rate Cap and Interest Rate Swap Agreements We have entered into interest rate cap agreements that cap the interest rate on certain of our variable-rate debt and we have assumed or entered into interest rate swap agreements in which we hedged our exposure to variable interest rates by agreeing to pay fixed interest rates to our respective counterparty. We have adopted the fair value measurement provisions for our financial instruments recorded at fair value. The fair value guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Generally, we will estimate the fair value of our interest rate caps and interest rate swaps, in the absence of observable market data, using estimates of value including estimated remaining life, counterparty credit risk, current market yield and interest rate spreads of similar securities as of the measurement date. At September 30, 2023 and December 31, 2022, our interest rate cap agreements and interest rate swaps were valued using Level 2 inputs. The fair value of the interest rate cap agreements is recorded in other assets on our accompanying condensed consolidated balance sheets. We record changes in the fair value of the interest rate cap agreements quarterly based on the current market valuations at quarter end. If the interest rate cap qualifies for hedge accounting, the change in the estimated fair value is recorded to accumulated other comprehensive income to the extent that it is effective, with any ineffective portion recorded to interest expense in our condensed consolidated statements of operations and comprehensive income. If the interest rate cap does not qualify for hedge accounting, or if it is determined the hedge is ineffective, any change in the fair value is recognized in interest expense in our consolidated statements of operations and comprehensive income. During the next 12 months, we estimate that an additional $6.9 million will be reclassified out of accumulated other comprehensive income into interest expense in our condensed consolidated statements of operations and comprehensive income, as a reduction to interest expense. The following table summarizes the interest rate caps at September 30, 2023 and December 31, 2022 (dollars in thousands):   September 30, 2023 December 31, 2022 Aggregate Cost Aggregate Notional Amount Aggregate Fair Value Aggregate Notional Amount Aggregate Fair Value $ 141  (1) $ 65,000  $ 1,340  $ 225,000  $ 4,629  (1)We have entered into various interest rate cap agreements on variable rate debt with SOFR caps ranging from 1.49% to 1.75%. We have assumed or entered into interest rate swap agreements in connection with certain of our mortgage financings and Credit Facility, whereby we will pay our counterparty a fixed rate interest rate on a monthly basis and receive payments from our counterparty equivalent to the stipulated floating rate. The fair value of our interest rate swap agreements is recorded in other assets or other liabilities on our accompanying condensed consolidated balance sheets. We have designated our interest rate swaps as cash flow hedges, and we record changes in the fair value of the interest rate swap agreement to accumulated other comprehensive income on the condensed consolidated balance sheets. We record changes in fair value on a quarterly basis, using current market valuations at quarter end. The following table summarizes our interest rate swaps at September 30, 2023 and December 31, 2022 (dollars in thousands): September 30, 2023 December 31, 2022 Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability $ 361,969  $ 17,015  $ —  $ 362,832  $ 8,264  $ (897) The following table presents the impact of our derivative instruments in the condensed consolidated financial statements (dollars in thousands): Amount of gain, net, recognized in Comprehensive Income Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Derivatives in cash flow hedging relationships Interest rate caps $ (654) $ 1,758  $ (2,429) $ 4,520  Interest rate swaps 5,743  5,032  9,647  9,140  Total $ 5,089  $ 6,790  $ 7,218  $ 13,660  The following table presents the reclassifications of our derivative instruments out of accumulated other comprehensive income into interest expense in the condensed consolidated financial statements (dollars in thousands): Amount reclassified out of Accumulated Other Comprehensive Income Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Interest rate caps $ 409  $ (52) $ 937  $ (52) Total $ 409  $ (52) $ 937  $ (52) The following table sets forth certain information regarding our derivative instruments (dollars in thousands): Asset (Liability) Derivatives Fair Value at Derivatives Designated as Hedging Instruments Balance Sheet Location September 30, 2023 December 31, 2022 Interest rate caps Other assets $ 1,340  $ 4,629  Interest rate swaps Other assets 17,015  8,264  Interest rate swaps Other liabilities —  (897) Total derivative liabilities, net $ 18,355  $ 11,996  The fair value of all mortgage notes payable outstanding as of September 30, 2023 was $273.2 million, as compared to the carrying value stated above of $311.0 million. The fair value is calculated based on a discounted cash flow analysis, using management’s estimate of market interest rates on long-term debt with comparable terms and loan to value ratios. The fair value was calculated using Level 3 inputs of the hierarchy established by ASC 820, “Fair Value Measurements and Disclosures.” Credit Facility On August 18, 2022, we amended, extended and upsized our Credit Facility, increasing our Revolver from $100.0 million to $120.0 million (and its term to August 2026), adding the new $140.0 million Term Loan C, decreasing the principal balance of Term Loan B to $60.0 million and extending the maturity date of Term Loan A to August 2027. Term Loan C has a maturity date of February 18, 2028 and a SOFR spread ranging from 125 to 195 basis points, depending on our leverage. On September 27, 2022, we further increased the Revolver to $125.0 million and Term Loan C to $150.0 million, as permitted under the terms of the Credit Facility. We entered into multiple interest rate swap agreements on Term Loan C, which swap the interest rate to fixed rates from 3.15% to 3.75%. We incurred fees of approximately $4.2 million in connection with extending and upsizing our Credit Facility. The net proceeds of the transaction were used to repay the then-outstanding borrowings on the Revolver, pay off mortgage debt, and fund acquisitions. The Credit Facility’s current bank syndicate is comprised of KeyBank, Fifth Third Bank, The Huntington National Bank, Bank of America, Synovus Bank, United Bank, First Financial Bank, and S&T Bank. As of September 30, 2023, there was $441.0 million outstanding under our Credit Facility, at a weighted average interest rate of approximately 6.77%, and $2.9 million outstanding under letters of credit, at a weighted average interest rate of 1.50%. As of September 30, 2023, the maximum additional amount we could draw under the Credit Facility was $44.9 million. We were in compliance with all covenants under the Credit Facility as of September 30, 2023. The amount outstanding under the Credit Facility approximates fair value as of September 30, 2023.

v3.23.3

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Ground Leases We are obligated as lessee under four ground leases. Future minimum rental payments due under the terms of these leases for the three months ending December 31, 2023 and each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands): Year Future Lease Payments Due Under Operating Leases Three Months Ending December 31, 2023 $ 124  2024 493  2025 494  2026 498  2027 506  2028 510  Thereafter 5,790  Total anticipated lease payments $ 8,415  Less: amount representing interest (3,267) Present value of lease payments $ 5,148  Rental expense incurred for properties with ground lease obligations during the three and nine months ended September 30, 2023 was $0.1 million and $0.3 million, respectively, and during the three and nine months ended September 30, 2022 was $0.1 million and $0.3 million, respectively. Our ground leases are treated as operating leases and rental expenses are reflected in property operating expenses on the condensed consolidated statements of operations and comprehensive income. Our ground leases have a weighted average remaining lease term of 17.9 years and a weighted average discount rate of 5.33%. Letters of Credit As of September 30, 2023, there was $2.9 million outstanding under letters of credit. These letters of credit are not reflected on our condensed consolidated balance sheets.

v3.23.3

Equity and Mezzanine Equity	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Equity and Mezzanine Equity	Equity and Mezzanine Equity Stockholders’ Equity The following table summarizes the changes in our equity for the three and nine months ended September 30, 2023 and 2022 (in thousands):   Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Senior Common Stock Balance, beginning of period $ 1  $ 1  $ 1  $ 1  Issuance of senior common stock, net —  —  —  —  Balance, end of period $ 1  $ 1  $ 1  $ 1  Common Stock Balance, beginning of period $ 39  $ 39  $ 39  $ 37  Issuance of common stock, net —  —  1  2  Repurchase of common stock, net —  —  (1) —  Balance, end of period $ 39  $ 39  $ 39  $ 39  Series F Preferred Stock Balance, beginning of period $ 1  $ 1  $ 1  $ —  Issuance of Series F preferred stock, net —  —  —  1  Balance, end of period $ 1  $ 1  $ 1  $ 1  Additional Paid in Capital Balance, beginning of period $ 728,580  $ 705,629  $ 721,327  $ 671,134  Issuance of common stock and Series F preferred stock, net 690  9,856  6,725  44,513  Repurchase of common stock, net —  —  998  —  Redemption of Series F preferred stock, net 183  —  401  55  Retirement of senior common stock, net —  —  52  —  Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership (53) 1,613  (103) 1,396  Balance, end of period $ 729,400  $ 717,098  $ 729,400  $ 717,098  Accumulated Other Comprehensive Income Balance, beginning of period $ 14,297  $ 5,524  $ 11,640  $ (1,346) Comprehensive income 5,089  6,790  7,218  13,660  Reclassification into interest expense 409  52  937  52  Balance, end of period $ 19,795  $ 12,366  $ 19,795  $ 12,366  Distributions in Excess of Accumulated Earnings Balance, beginning of period $ (560,719) $ (498,856) $ (529,104) $ (468,908) Distributions declared to common, senior common, and preferred stockholders (15,182) (17,984) (45,445) (53,000) Redemption of Series F preferred stock, net (1) —  (12) (5) Net income attributable to the Company 1,789  2,791  448  7,864  Balance, end of period $ (574,113) $ (514,050) $ (574,113) $ (514,050) Total Stockholders' Equity Balance, beginning of period $ 182,199  $ 212,338  $ 203,904  $ 200,918  Issuance of common stock and Series F preferred stock, net 690  9,856  6,726  44,516  Repurchase of common stock, net —  —  997  —  Redemption of Series F preferred stock, net 182  —  389  50  Retirement of senior common stock, net —  —  52  —  Distributions declared to common, senior common, and preferred stockholders (15,182) (17,984) (45,445) (53,000) Comprehensive income 5,089  6,790  7,218  13,660  Reclassification into interest expense 409  52  937  52  Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership (53) 1,613  (103) 1,396  Net income attributable to the Company 1,789  2,791  448  7,864  Balance, end of period $ 175,123  $ 215,455  $ 175,123  $ 215,455  Non-Controlling Interest Balance, beginning of period $ 1,524  $ 1,275  $ 1,790  $ 1,259  Distributions declared to Non-controlling OP Unit holders (117) (114) (352) (307) Issuance of Non-controlling OP Units as consideration in real estate acquisitions, net —  2,394  —  2,394  Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership 53  (1,613) 103  (1,396) Net income (loss) available (attributable) to OP units held by Non-controlling OP Unitholders 3  (4) (78) (12) Balance, end of period $ 1,463  $ 1,938  $ 1,463  $ 1,938  Total Equity $ 176,586  $ 217,393  $ 176,586  $ 217,393  Distributions We paid the following distributions per share for the three and nine months ended September 30, 2023 and 2022: For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Common Stock and Non-controlling OP Units $ 0.30000  $ 0.37620  $ 0.90000  $ 1.12860  Senior Common Stock 0.2625  0.2625  0.7875  0.7875  Series E Preferred Stock 0.414063  0.414063  1.242189  1.242189  Series F Preferred Stock 0.375  0.375  1.125  1.125  Series G Preferred Stock 0.375  0.375  1.125  1.125  Recent Activity Common Stock ATM Programs On February 22, 2022, we entered into Amendment No. 1 to the At-the-Market Equity Offering Sales Agreement, dated December 3, 2019 (together, the “Prior Common Stock Sales Agreement”). The amendment permitted shares of common stock to be issued pursuant to the Prior Common Stock Sales Agreement under the 2020 Registration Statement, and future registration statements on Form S-3 (the “Prior Common Stock ATM Program”). During the nine months ended September 30, 2023, we sold 0.2 million shares of common stock, raising approximately $4.0 million in net proceeds under our At-the-Market Equity Offering Sales Agreement with sales agents Robert W. Baird & Co. Incorporated (“Baird”), Goldman Sachs & Co. LLC (“Goldman Sachs”), Stifel, Nicolaus & Company, Incorporated, (“Stifel”) BTIG, LLC, and Fifth Third Securities, Inc. (“Fifth Third”). We terminated the Prior Common Stock Sales Agreement effective as of February 10, 2023 in connection with the expiration of the 2020 Registration Statement on February 11, 2023. On March 3, 2023, we entered into an At-the-Market Equity Offering Sales Agreement (the “2023 Common Stock Sales Agreement”), with BofA Securities, Inc. (“BofA”), Goldman Sachs, Baird, KeyBanc Capital Markets Inc. (“KeyBanc”), and Fifth Third (collectively the “Common Stock Sales Agents”). In connection with the 2023 Common Stock Sales Agreement, we filed prospectus supplements dated March 3, 2023 and March 7, 2023, to the prospectus dated November 23, 2022, with the SEC, for the offer and sale of an aggregate offering amount of up to $250.0 million of common stock. During the nine months ended September 30, 2023, we did not sell any shares of common stock under the 2023 Common Stock Sales Agreement. Common Stock Buyback Program During the nine months ended September 30, 2023, we repurchased $1.0 million worth of our common stock through our common stock repurchase program. Mezzanine Equity Our 6.625% Series E Cumulative Redeemable Preferred Stock (“Series E Preferred Stock”), and our 6.00% Series G Cumulative Redeemable Preferred Stock (“Series G Preferred Stock”) are classified as mezzanine equity in our condensed consolidated balance sheets because both are redeemable at the option of the shareholder upon a change of control of greater than 50%. A change in control of our company, outside of our control, is only possible if a tender offer is accepted by over 90% of our shareholders. All other change in control situations would require input from our Board of Directors. In addition, our Series E Preferred Stock and Series G Preferred Stock are redeemable at the option of the applicable shareholder in the event a delisting event occurs. We will periodically evaluate the likelihood that a delisting event or change of control of greater than 50% will take place, and if we deem this probable, we adjust the Series E Preferred Stock, and Series G Preferred Stock presented in mezzanine equity to their redemption value, with the offset to gain (loss) on extinguishment. We currently believe the likelihood of a change of control of greater than 50%, or a delisting event, is remote. Prior to February 10, 2023, we had an At-the-Market Equity Offering Sales Agreement (the “Series E Preferred Stock Sales Agreement”) with sales agents Baird, Goldman Sachs, Stifel, Fifth Third, and U.S. Bancorp Investments, Inc., pursuant to which we could, from time to time, offer to sell shares of our Series E Preferred Stock, in an aggregate offering price of up to $100.0 million. We did not sell any shares of our Series E Preferred Stock pursuant to the Series E Preferred Stock Sales Agreement during the nine months ended September 30, 2023. However, we terminated the agreement effective as of February 10, 2023. Universal Shelf Registration Statements On January 29, 2020, we filed the 2020 Registration Statement. The 2020 Registration Statement was declared effective on February 11, 2020. The 2020 Registration Statement allowed us to issue up to $800.0 million of securities. Of the $800.0 million of available capacity under our 2020 Registration Statement, approximately $636.5 million was reserved for the sale of our Series F Preferred Stock, and $63.0 million was reserved for our Prior Common Stock ATM Program. The 2020 Registration Statement expired on February 11, 2023. On November 23, 2022, we filed the 2022 Registration Statement. There is no limit on the aggregate amount of the securities that we may offer pursuant to the 2022 Registration Statement. Series F Preferred Stock On February 20, 2020, we filed with the Maryland Department of Assessments and Taxation Articles Supplementary (i) setting forth the rights, preferences and terms of the Series F Preferred Stock and (ii) reclassifying and designating 26,000,000 shares of our authorized and unissued shares of common stock as shares of Series F Preferred Stock. The reclassification decreased the number of shares classified as common stock from 86,290,000 shares immediately prior to the reclassification to 60,290,000 shares immediately after the reclassification. We sold 229,677 shares of our Series F Preferred Stock, raising $5.2 million in net proceeds, during the nine months ended September 30, 2023. Non-controlling Interest in Operating Partnership As of September 30, 2023 and December 31, 2022, we owned approximately 99.0% and 99.0%, respectively, of the outstanding OP Units. The Operating Partnership is required to make distributions on each OP Unit in the same amount as those paid on each share of our common stock, with the distributions on the OP Units held by us being utilized to make distributions to our common stockholders. As of September 30, 2023 and December 31, 2022, there were 391,468 and 391,468 outstanding OP Units held by Non-controlling OP Unitholders, respectively.

v3.23.3

Revision of Previously Issued Financial Statements	9 Months Ended
	Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract]
Revision of Previously Issued Financial Statements	Revision of Previously Issued Financial Statements As discussed in Note 1, the Company identified errors in its calculation of the depreciation of tenant funded improvement assets at a number of its properties. A summary of the corrections to the impacted financial statement line items in the Company’s previously issued Consolidated Statements of Operations and Comprehensive Income, Consolidated Statements of Cash Flows and Consolidated Statements of Equity for the quarter ended September 30, 2022, and Consolidated Balance Sheets for the year ended December 31, 2022 included in previously filed Annual Reports on Form 10-K and Condensed Consolidated Statements of Operations and Comprehensive Income, Condensed Consolidated Statements of Cash Flows and the Stockholders’ Equity tables for periods presented below, which were presented in previously filed Quarterly Reports on Form 10-Q, is as follows: Condensed Consolidated Statements of Operations and Comprehensive Income Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 As Previously Reported Adjustments As Revised As Previously Reported Adjustments As Revised Operating expenses Depreciation and amortization $ 15,764  $ (290) $ 15,474  $ 45,672  $ (393) $ 45,279  Total operating expense before incentive fee waiver $ 37,448  $ (290) $ 37,158  $ 90,932  $ (393) $ 90,539  Total operating expenses $ 37,448  $ (290) $ 37,158  $ 90,932  $ (393) $ 90,539  Net income $ 2,497  $ 290  $ 2,787  $ 7,459  $ 393  $ 7,852  Net income available to the Company $ 2,501  $ 290  $ 2,791  $ 7,471  $ 393  $ 7,864  Net loss attributable to common stockholders $ (600) $ 290  $ (310) $ (1,778) $ 393  $ (1,385) Loss per weighted average share of common stock - basic & diluted Loss attributable to common shareholders $ (0.02) $ 0.01  $ (0.01) $ (0.05) $ 0.01  $ (0.04) Comprehensive income Net income $ 2,497  $ 290  $ 2,787  $ 7,459  $ 393  $ 7,852  Total comprehensive income available to the Company $ 9,291  $ 290  $ 9,581  $ 21,131  $ 393  $ 21,524  Consolidated Balance Sheets As of December 31, 2022 As Previously Reported Adjustments As Revised ASSETS Less: accumulated depreciation $ 286,994  $ (844) $ 286,150  Total real estate, net $ 1,000,303  $ 844  $ 1,001,147  Real estate and related assets held for sale $ 3,013  $ 280  $ 3,293  TOTAL ASSETS $ 1,201,509  $ 1,124  $ 1,202,633  EQUITY Distributions in excess of accumulated earnings $ (530,228) $ 1,124  $ (529,104) TOTAL STOCKHOLDERS' EQUITY $ 202,780  $ 1,124  $ 203,904  TOTAL EQUITY $ 204,570  $ 1,124  $ 205,694  TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY $ 1,201,509  $ 1,124  $ 1,202,633  Stockholders’ Equity Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 As Previously Reported Adjustments As Revised As Previously Reported Adjustments As Revised Distributions in Excess of Accumulated Earnings Balance, beginning of period $ (498,574) $ (282) $ (498,856) $ (468,523) $ (385) $ (468,908) Net income attributable to the Company 2,501  290  2,791  7,471  393  7,864  Balance, end of period $ (514,057) $ 7  $ (514,050) $ (514,057) $ 7  $ (514,050) Total Stockholders' Equity Balance, beginning of period $ 212,620  $ (282) $ 212,338  $ 201,303  $ (385) $ 200,918  Net income attributable to the Company 2,501  290  2,791  7,471  393  7,864  Balance, end of period $ 215,448  $ 7  $ 215,455  $ 215,448  $ 7  $ 215,455  Total Equity $ 217,386  $ 7  $ 217,393  $ 217,386  $ 7  $ 217,393  Condensed Consolidated Statements of Cash Flows Nine Months Ended September 30, 2022 As Previously Reported Adjustments As Revised Cash flows from operating activities: Net income $ 7,459  $ 393  $ 7,852  Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 45,672  (393) 45,279

v3.23.3

Subsequent Events	9 Months Ended
	Sep. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Distributions On October 10, 2023, our Board of Directors declared the following monthly distributions for the months of October, November and December of 2023:   Record Date Payment Date Common Stock and Non-controlling OP Unit Distributions per Share Series E Preferred Distributions per Share Series G Preferred Distributions per Share October 20, 2023 October 31, 2023 $ 0.10  $ 0.138021  $ 0.125  November 20, 2023 November 30, 2023 0.10  0.138021  0.125  December 18, 2023 December 29, 2023 0.10  0.138021  0.125  $ 0.30  $ 0.414063  $ 0.375  Senior Common Stock Distributions Payable to the Holders of Record During the Month of: Payment Date Distribution per Share October November 3, 2023 $ 0.0875  November December 5, 2023 0.0875  December January 5, 2024 0.0875  $ 0.2625  Series F Preferred Stock Distributions Record Date Payment Date Distribution per Share October 25, 2023 November 3, 2023 $ 0.125  November 28, 2023 December 5, 2023 0.125  December 27, 2023 January 5, 2024 0.125  $ 0.375  Equity Activity Subsequent to September 30, 2023 and through November 6, 2023, we raised $0.1 million in net proceeds from the sale of 4,318 shares of Series F Preferred Stock. Acquisition Activity On October 12, 2023, we purchased a 69,920 square foot industrial property in Allentown, Pennsylvania for $7.8 million. The property is fully leased to one tenant on a 20-year lease. On November 3, 2023, we purchased a 67,709 square foot industrial property in Indianapolis, Indiana for $4.5 million. The property is fully leased to one tenant on a 20-year lease. Sale Activity On October 2, 2023, we sold our 146,483 square foot office property in Columbia, South Carolina for $7.0 million. We realized a $2.9 million gain on sale, net. Financing Activity On October 2, 2023, we repaid $9.0 million in fixed rate debt, collateralized by one property, at an interest rate of 4.04%. We realized a $2.8 million gain on debt extinguishment.

v3.23.3

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 1,789	$ 2,791	$ 448	$ 7,864

v3.23.3

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

v3.23.3

Organization, Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interim Financial Information	Interim Financial Information Our interim financial statements are prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and in accordance with Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. The year-end balance sheet data presented herein was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of our management, all adjustments, consisting solely of normal recurring accruals, necessary for the fair statement of financial statements for the interim period, have been included. The interim financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 22, 2023. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year.
Revision of Previously Issued Financial Statements	Revision of Previously Issued Financial Statements In connection with the preparation of its financial statements for the second quarter of 2023, the Company identified errors in the calculation of depreciation of tenant funded improvement assets at a number of its properties. The Company had depreciated these assets through a term that was different than their useful lives, the correction of which resulted in changes to depreciation expense, a non-cash amount, and net income. The correction of these errors had an immaterial impact on the Incentive Fee for each period presented and had no impact on any other Advisory fees. The identified errors were included in the Company's previously issued 2021 quarterly and annual financial statements, 2022 quarterly and annual financial statements, and quarterly financial statements for the three months ended March 31, 2023. The Company evaluated the errors and determined that the related impact was not material to the Consolidated Statements of Operations and Comprehensive Income, Consolidated Balance Sheets, Consolidated Statements of Cash Flows or Consolidated Statements of Equity for any period impacted. The Company has revised the previously issued Condensed Consolidated Statements of Operations and Comprehensive Income, Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Cash Flows and Stockholders’ Equity tables as of and for the three and nine months ended September 30, 2022 to correct for such errors and these revisions are reflected in this Form 10-Q. The Company will also correct previously reported financial information for these errors in its future filings, as applicable. A summary of the corrections to the impacted financial statement line items to the Company’s previously issued Consolidated Statements of Operations and Comprehensive Income, Consolidated Balance Sheets, Consolidated Statements of Cash Flows and Consolidated Statements of Equity for each affected period is presented in Note 9, “Revision of Previously Issued Financial Statements.”
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
Significant Accounting Policies	Significant Accounting PoliciesThe preparation of our financial statements in accordance with GAAP requires management to make judgments that are subjective in nature and requires management to make certain estimates and assumptions. Application of these accounting policies involves the exercise of judgment regarding the use of assumptions as to future uncertainties, and as a result, actual results could materially differ from these estimates. A summary of all of our significant accounting policies is provided in Note 1, “Organization, Basis of Presentation and Significant Accounting Policies,” to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022. There were no material changes to our critical accounting policies during the three and nine months ended September 30, 2023.
Interest Rate Cap and Interest Rate Swap Agreements	We have adopted the fair value measurement provisions for our financial instruments recorded at fair value. The fair value guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Generally, we will estimate the fair value of our interest rate caps and interest rate swaps, in the absence of observable market data, using estimates of value including estimated remaining life, counterparty credit risk, current market yield and interest rate spreads of similar securities as of the measurement date.

v3.23.3

Loss Per Share of Common Stock (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Loss Per Share of Common Stock	The following tables set forth the computation of basic and diluted loss per share of common stock for the three and nine months ended September 30, 2023 and 2022. The operating partnership units in the Operating Partnership (“OP Units”) held by holders who do not control the Operating Partnership (“Non-controlling OP Unitholders”) (which may be redeemed for shares of common stock) have been excluded from the diluted loss per share calculations, as there would be no effect on the amounts since the Non-controlling OP Unitholders’ share of loss would also be added back to net loss. Net loss figures are presented net of such non-controlling interests in the loss per share calculation. We computed basic loss per share for the three and nine months ended September 30, 2023 and 2022 using the weighted average number of shares outstanding during the respective periods. Diluted loss per share for the three and nine months ended September 30, 2023 and 2022 reflects additional shares of common stock related to our convertible senior common stock (the “Senior Common Stock”), if the effect of conversion would be dilutive, that would have been outstanding if such dilutive potential shares of common stock had been issued, as well as an adjustment to net loss attributable to common stockholders as applicable to common stockholders that would result from their assumed issuance (dollars in thousands, except per share amounts). For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Calculation of basic loss per share of common stock: Net loss attributable to common stockholders $ (1,419) $ (310) $ (9,063) $ (1,385) Denominator for basic weighted average shares of common stock (1) 39,917,995  39,504,734  39,939,660  38,723,581  Basic loss per share of common stock $ (0.04) $ (0.01) $ (0.23) $ (0.04) Calculation of diluted loss per share of common stock: Net loss attributable to common stockholders $ (1,419) $ (310) $ (9,063) $ (1,385) Net loss attributable to common stockholders plus assumed conversions (2) $ (1,419) $ (310) $ (9,063) $ (1,385) Denominator for basic weighted average shares of common stock (1) 39,917,995  39,504,734  39,939,660  38,723,581  Effect of convertible Senior Common Stock (2) —  —  —  —  Denominator for diluted weighted average shares of common stock (2) 39,917,995  39,504,734  39,939,660  38,723,581  Diluted loss per share of common stock $ (0.04) $ (0.01) $ (0.23) $ (0.04) (1)The weighted average number of OP Units held by Non-controlling OP Unitholders was 391,468 and 391,468 for the three and nine months ended September 30, 2023, respectively, and 273,072 and 262,412 for the three and nine months ended September 30, 2022, respectively. (2)We excluded convertible shares of Senior Common Stock of 345,132 and 363,246 from the calculation of diluted earnings per share for the three and nine months ended September 30, 2023 and 2022, respectively, because they were anti-dilutive.

v3.23.3

Real Estate and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2023
Real Estate [Abstract]
Schedule of Components of Investments in Real Estate	The following table sets forth the components of our investments in real estate as of September 30, 2023 and December 31, 2022, respectively, excluding real estate held for sale as of September 30, 2023 and December 31, 2022 (dollars in thousands): September 30, 2023 December 31, 2022 Real estate: Land (1) $ 143,815  $ 152,916  Building and improvements 1,025,384  1,069,407  Tenant improvements 57,262  64,974  Accumulated depreciation (291,986) (286,150) Real estate, net $ 934,475  $ 1,001,147  (1)This amount includes $4,436 of land value subject to land lease agreements which we may purchase at our option for a nominal fee.
Schedule of Acquisitions	We acquired three properties during the nine months ended September 30, 2023 and acquired 11 industrial properties during the nine months ended September 30, 2022. The acquisitions are summarized below (dollars in thousands): Nine Months Ended Aggregate Square Footage Weighted Average Lease Term Aggregate Purchase Price Aggregate Capitalized Acquisition Costs September 30, 2023 (1) 183,803  18.7 years $ 17,539  $ 349  September 30, 2022 (2) 1,105,006  13.8 years $ 98,276  $ 776  (1)On April 14, 2023, we acquired a 76,089 square foot property in Riverdale, Illinois for $5.4 million. The property is fully leased to one tenant and had 20.0 years of remaining lease term at the time we acquired the property. On July 10, 2023, we acquired a 7,714 square foot property in Dallas-Fort Worth, Texas for $3.0 million. The property is fully leased to one tenant and had 9.9 years of remaining lease term at the time we acquired the property. On July 28, 2023, we acquired a 100,000 square foot property in Dallas-Fort Worth, Texas for $9.2 million. The property is fully leased to one tenant and had 20.0 years of remaining lease term at the time we acquired the property. (2)On February 24, 2022, we acquired an 80,000 square foot property in Wilkesboro, North Carolina for $7.5 million. The property is fully leased to one tenant and had 12.7 years of remaining lease term at the time we acquired the property. On March 11, 2022, we acquired a 56,000 square foot property in Oklahoma City, Oklahoma for $6.0 million. The property is fully leased to one tenant and had 7.0 years of remaining lease term at the time we acquired the property. On May 4, 2022, we acquired a two-property, 260,719 square foot portfolio in Cleveland, Ohio and Fort Payne, Alabama for $19.5 million. The properties are fully leased to one tenant and had 11.4 years of remaining lease term at the time we acquired the properties. On May 12, 2022, we acquired a three-property, 345,584 square foot portfolio in Wilmington, North Carolina for $18.9 million. The properties are fully leased to one tenant and had 13.1 years of remaining lease term at the time we acquired the properties. On August 5, 2022, we acquired a two-property, 246,000 square foot portfolio in Bridgeton, New Jersey and Vineland, New Jersey for $32.7 million. The properties are fully leased to one tenant and had 15.1 years of remaining lease term at the time we acquired the properties. On September 16, 2022, we acquired a 67,328 square foot property in Jacksonville, Florida for $8.1 million. The property is fully leased to one tenant and had 20.0 years of remaining lease term at the time we acquired the property. On September 20, 2022, we acquired a 49,375 square foot property in Fort Payne, Alabama for $5.6 million. The property is fully leased to one tenant and had 14.8 years of remaining lease term at the time we acquired the property.
Schedule of Fair Value of Assets Acquired and Liabilities Assumed	We determined the fair value of assets acquired and liabilities assumed related to the properties acquired during the nine months ended September 30, 2023 and 2022 as follows (dollars in thousands): Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Acquired assets and liabilities Purchase price Purchase price Land $ 2,714  $ 5,949  Building 11,423  77,903  Tenant Improvements 692  1,468  In-place Leases 1,001  4,907  Leasing Costs 1,270  5,387  Customer Relationships 439  2,937  Above Market Leases —  328  (1) Below Market Leases —  (603) (2) Total Purchase Price $ 17,539  $ 98,276  (1)This amount includes $9 of loans receivable included in Other assets on the condensed balance sheets. (2)This amount includes $32 of prepaid rent included in Other liabilities on the condensed consolidated balance sheets.
Schedule of Future Lease Payments From Tenants	Future operating lease payments from tenants under non-cancelable leases, excluding tenant reimbursement of expenses, for the three months ending December 31, 2023 and each of the five succeeding fiscal years and thereafter is as follows, excluding real estate held for sale as of September 30, 2023 (dollars in thousands): Year Tenant Lease Payments Three Months Ending December 31, 2023 $ 28,906  2024 112,878  2025 112,342  2026 106,748  2027 90,440  2028 75,223  Thereafter 357,055
Schedule of Lease Revenue	The table below sets forth the allocation of lease revenue between fixed contractual payments and variable lease payments for the three and nine months ended September 30, 2023 and 2022, respectively (dollars in thousands): For the three months ended September 30, (Dollars in Thousands) Lease revenue reconciliation 2023 2022 $ Change % Change Fixed lease payments $ 31,945  $ 35,752  $ (3,807) (10.6) % Variable lease payments 4,519  4,082  437  10.7  % $ 36,464  $ 39,834  $ (3,370) (8.5) % For the nine months ended September 30, (Dollars in Thousands) Lease revenue reconciliation 2023 2022 $ Change % Change Fixed lease payments $ 98,465  $ 98,961  $ (496) (0.5) % Variable lease payments 13,210  12,803  407  3.2  % $ 111,675  $ 111,764  $ (89) (0.1) %
Schedule of Carrying Value of Intangible Assets and Accumulated Amortization	The following table summarizes the carrying value of intangible assets, liabilities and the accumulated amortization for each intangible asset and liability class as of September 30, 2023 and December 31, 2022, respectively, excluding real estate held for sale as of September 30, 2023 and December 31, 2022 (dollars in thousands): September 30, 2023 December 31, 2022 Lease Intangibles Accumulated Amortization Lease Intangibles Accumulated Amortization In-place leases $ 98,904  $ (62,270) $ 104,394  $ (63,240) Leasing costs 83,075  (45,170) 85,038  (45,501) Customer relationships 63,614  (35,524) 69,586  (38,655) $ 245,593  $ (142,964) $ 259,018  $ (147,396) Deferred Rent Receivable/(Liability) Accumulated (Amortization)/Accretion Deferred Rent Receivable/(Liability) Accumulated (Amortization)/Accretion Above market leases $ 13,431  $ (10,546) $ 15,371  $ (11,909) Below market leases and deferred revenue (60,927) 29,113  (66,138) 26,141
Schedule of Weighted Average Amortization Periods	The weighted average amortization periods in years for the intangible assets acquired and liabilities assumed during the nine months ended September 30, 2023 and 2022, were as follows: Intangible Assets & Liabilities September 30, 2023 September 30, 2022 In-place leases 18.0 14.2 Leasing costs 18.0 14.2 Customer relationships 22.7 20.2 Above market leases 0.0 15.7 Below market leases 0.0 13.0 All intangible assets & liabilities 19.6 15.7

v3.23.3

Real Estate Dispositions, Held for Sale and Impairment Charges (Tables)	9 Months Ended
	Sep. 30, 2023
Real Estate [Abstract]
Schedule of Sold Properties	During the nine months ended September 30, 2023, we sold five non-core properties, located in Baytown, Texas; Birmingham, Alabama; Pittsburgh, Pennsylvania; Eatontown, New Jersey; and Taylorsville, Utah, which are summarized in the table below (dollars in thousands): Aggregate Square Footage Sold Aggregate Sales Price Aggregate Sales Costs Aggregate Impairment Charge for the Nine Months Ended September 30, 2023 Aggregate Gain on Sale of Real Estate, net 206,278  $ 23,650  $ 1,476  $ 3,591  $ 4,245
Schedule of Operating Income from the Real Estate and Related Assets Disposed	The table below summarizes the components of operating income from real estate and related assets disposed of during the three and nine months ended September 30, 2023 and 2022 (dollars in thousands): For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Operating revenue $ 184  $ 565  $ 1,209  $ 2,501  Operating expense 60  510  4,427  (2) 2,251  Other income (expense), net 4,443  (1) (189) 3,790  (3) (502) Income (expense) from real estate and related assets sold $ 4,567  $ (134) $ 572  $ (252) (1)Includes a $4.7 million gain on sale of real estate, net, on three property sales. (2)Includes a $3.6 million impairment charge on one property. (3)Includes a $4.2 million gain on sale of real estate, net, on five property sales.
Schedule of Real Estate Owned Held for Sale	The table below summarizes the components of the assets and liabilities held for sale at September 30, 2023 and December 31, 2022 reflected on the accompanying condensed consolidated balance sheets (dollars in thousands): September 30, 2023 December 31, 2022 Assets Held for Sale Total real estate held for sale $ 28,972  $ 3,293  Lease intangibles, net 369  —  Deferred rent receivable, net 9  —  Total Assets Held for Sale $ 29,350  $ 3,293  Liabilities Held for Sale Deferred rent liability, net $ 631  $ —  Total Liabilities Held for Sale $ 631  $ —

v3.23.3

Mortgage Notes Payable and Credit Facility (Tables)	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Schedule of Company's Mortgage Notes Payable and Line of Credit	Our mortgage notes payable and Credit Facility as of September 30, 2023 and December 31, 2022 are summarized below (dollars in thousands): Encumbered properties at Carrying Value at Stated Interest Rates at Scheduled Maturity Dates at September 30, 2023 September 30, 2023 December 31, 2022 September 30, 2023 September 30, 2023 Mortgage and other secured loans: Fixed rate mortgage loans 49  $ 313,400  $ 362,037  (1) (2) Premiums and discounts, net —  (52) (83) N/A N/A Deferred financing costs, mortgage loans, net —  (2,374) (2,565) N/A N/A Total mortgage notes payable, net 49  $ 310,974  $ 359,389  (3) Variable rate revolving credit facility 82  (6) $ 70,950  $ 23,250  SOFR + 1.50% (4) 8/18/2026 Total revolver 82  $ 70,950  $ 23,250  Variable rate term loan facility A —  (6) $ 160,000  $ 160,000  SOFR + 1.45% (4) 8/18/2027 Variable rate term loan facility B —  (6) 60,000  60,000  SOFR + 1.45% (4) 2/11/2026 Variable rate term loan facility C —  (6) 150,000  150,000  SOFR + 1.45% (4) 2/18/2028 Deferred financing costs, term loan facility —  (2,915) (3,433) N/A N/A Total term loan, net N/A $ 367,085  $ 366,567  Total mortgage notes payable and credit facility 131  $ 749,009  $ 749,206  (5) (1)As of September 30, 2023, interest rates on our fixed rate mortgage notes payable varied from 2.80% to 6.63%. (2)As of September 30, 2023, we had 43 mortgage notes payable with maturity dates ranging from January 1, 2024 through August 1, 2037. (3)The weighted average interest rate on the mortgage notes outstanding as of September 30, 2023 was approximately 4.20%. (4)As of September 30, 2023, Secured Overnight Financing Rate (“SOFR”) was approximately 5.31%. (5)The weighted average interest rate on all debt outstanding as of September 30, 2023 was approximately 5.70%. (6)The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 82 unencumbered properties as of September 30, 2023. N/A - Not Applicable
Summary of Long-Term Mortgages	During the nine months ended September 30, 2023, we repaid four mortgages, collateralized by four properties, which are summarized in the table below (dollars in thousands): Fixed Rate Debt Repaid Interest Rate on Fixed Rate Debt Repaid $ 46,530  4.78  % During the nine months ended September 30, 2023, we issued three mortgages, collateralized by three properties, which are summarized in the table below (dollars in thousands): Aggregate Fixed Rate Debt Issued Weighted Average Interest Rate on Fixed Rate Debt $ 9,000  6.10  % During the nine months ended September 30, 2023, we extended the maturity date of one mortgage, collateralized by one property, which is summarized in the table below (dollars in thousands): Fixed Rate Debt Extended Interest Rate on Fixed Rate Debt Extended Extension Term $ 8,769  6.50  % 1.0 year
Schedule of Principal Payments of Mortgage Notes Payable	Scheduled principal payments of mortgage notes payable for the three months ending December 31, 2023, and each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands):   Year Scheduled Principal Payments Three Months Ending December 31, 2023 $ 11,995  2024 28,400  2025 36,420  2026 35,084  2027 95,040  2028 37,116  Thereafter 69,345  Total $ 313,400  (1) (1)This figure does not include $(0.1) million of premiums and (discounts), net, and $2.4 million of deferred financing costs, which are reflected in mortgage notes payable, net on the condensed consolidated balance sheets.
Summary of Interest Rate Cap Agreement	The following table summarizes the interest rate caps at September 30, 2023 and December 31, 2022 (dollars in thousands):   September 30, 2023 December 31, 2022 Aggregate Cost Aggregate Notional Amount Aggregate Fair Value Aggregate Notional Amount Aggregate Fair Value $ 141  (1) $ 65,000  $ 1,340  $ 225,000  $ 4,629  (1)We have entered into various interest rate cap agreements on variable rate debt with SOFR caps ranging from 1.49% to 1.75%. The following table summarizes our interest rate swaps at September 30, 2023 and December 31, 2022 (dollars in thousands): September 30, 2023 December 31, 2022 Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability $ 361,969  $ 17,015  $ —  $ 362,832  $ 8,264  $ (897)
Schedule of Derivative Instruments	The following table presents the impact of our derivative instruments in the condensed consolidated financial statements (dollars in thousands): Amount of gain, net, recognized in Comprehensive Income Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Derivatives in cash flow hedging relationships Interest rate caps $ (654) $ 1,758  $ (2,429) $ 4,520  Interest rate swaps 5,743  5,032  9,647  9,140  Total $ 5,089  $ 6,790  $ 7,218  $ 13,660  The following table presents the reclassifications of our derivative instruments out of accumulated other comprehensive income into interest expense in the condensed consolidated financial statements (dollars in thousands): Amount reclassified out of Accumulated Other Comprehensive Income Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Interest rate caps $ 409  $ (52) $ 937  $ (52) Total $ 409  $ (52) $ 937  $ (52) The following table sets forth certain information regarding our derivative instruments (dollars in thousands): Asset (Liability) Derivatives Fair Value at Derivatives Designated as Hedging Instruments Balance Sheet Location September 30, 2023 December 31, 2022 Interest rate caps Other assets $ 1,340  $ 4,629  Interest rate swaps Other assets 17,015  8,264  Interest rate swaps Other liabilities —  (897) Total derivative liabilities, net $ 18,355  $ 11,996

v3.23.3

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Lease Payments Due Under Operating Leases	Future minimum rental payments due under the terms of these leases for the three months ending December 31, 2023 and each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands): Year Future Lease Payments Due Under Operating Leases Three Months Ending December 31, 2023 $ 124  2024 493  2025 494  2026 498  2027 506  2028 510  Thereafter 5,790  Total anticipated lease payments $ 8,415  Less: amount representing interest (3,267) Present value of lease payments $ 5,148

v3.23.3

Equity and Mezzanine Equity (Tables)	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Schedule of Changes in Stockholders' Equity	The following table summarizes the changes in our equity for the three and nine months ended September 30, 2023 and 2022 (in thousands):   Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Senior Common Stock Balance, beginning of period $ 1  $ 1  $ 1  $ 1  Issuance of senior common stock, net —  —  —  —  Balance, end of period $ 1  $ 1  $ 1  $ 1  Common Stock Balance, beginning of period $ 39  $ 39  $ 39  $ 37  Issuance of common stock, net —  —  1  2  Repurchase of common stock, net —  —  (1) —  Balance, end of period $ 39  $ 39  $ 39  $ 39  Series F Preferred Stock Balance, beginning of period $ 1  $ 1  $ 1  $ —  Issuance of Series F preferred stock, net —  —  —  1  Balance, end of period $ 1  $ 1  $ 1  $ 1  Additional Paid in Capital Balance, beginning of period $ 728,580  $ 705,629  $ 721,327  $ 671,134  Issuance of common stock and Series F preferred stock, net 690  9,856  6,725  44,513  Repurchase of common stock, net —  —  998  —  Redemption of Series F preferred stock, net 183  —  401  55  Retirement of senior common stock, net —  —  52  —  Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership (53) 1,613  (103) 1,396  Balance, end of period $ 729,400  $ 717,098  $ 729,400  $ 717,098  Accumulated Other Comprehensive Income Balance, beginning of period $ 14,297  $ 5,524  $ 11,640  $ (1,346) Comprehensive income 5,089  6,790  7,218  13,660  Reclassification into interest expense 409  52  937  52  Balance, end of period $ 19,795  $ 12,366  $ 19,795  $ 12,366  Distributions in Excess of Accumulated Earnings Balance, beginning of period $ (560,719) $ (498,856) $ (529,104) $ (468,908) Distributions declared to common, senior common, and preferred stockholders (15,182) (17,984) (45,445) (53,000) Redemption of Series F preferred stock, net (1) —  (12) (5) Net income attributable to the Company 1,789  2,791  448  7,864  Balance, end of period $ (574,113) $ (514,050) $ (574,113) $ (514,050) Total Stockholders' Equity Balance, beginning of period $ 182,199  $ 212,338  $ 203,904  $ 200,918  Issuance of common stock and Series F preferred stock, net 690  9,856  6,726  44,516  Repurchase of common stock, net —  —  997  —  Redemption of Series F preferred stock, net 182  —  389  50  Retirement of senior common stock, net —  —  52  —  Distributions declared to common, senior common, and preferred stockholders (15,182) (17,984) (45,445) (53,000) Comprehensive income 5,089  6,790  7,218  13,660  Reclassification into interest expense 409  52  937  52  Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership (53) 1,613  (103) 1,396  Net income attributable to the Company 1,789  2,791  448  7,864  Balance, end of period $ 175,123  $ 215,455  $ 175,123  $ 215,455  Non-Controlling Interest Balance, beginning of period $ 1,524  $ 1,275  $ 1,790  $ 1,259  Distributions declared to Non-controlling OP Unit holders (117) (114) (352) (307) Issuance of Non-controlling OP Units as consideration in real estate acquisitions, net —  2,394  —  2,394  Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership 53  (1,613) 103  (1,396) Net income (loss) available (attributable) to OP units held by Non-controlling OP Unitholders 3  (4) (78) (12) Balance, end of period $ 1,463  $ 1,938  $ 1,463  $ 1,938  Total Equity $ 176,586  $ 217,393  $ 176,586  $ 217,393
Schedule of Dividends Paid	We paid the following distributions per share for the three and nine months ended September 30, 2023 and 2022: For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Common Stock and Non-controlling OP Units $ 0.30000  $ 0.37620  $ 0.90000  $ 1.12860  Senior Common Stock 0.2625  0.2625  0.7875  0.7875  Series E Preferred Stock 0.414063  0.414063  1.242189  1.242189  Series F Preferred Stock 0.375  0.375  1.125  1.125  Series G Preferred Stock 0.375  0.375  1.125  1.125

v3.23.3

Revision of Previously Issued Financial Statements (Tables)	9 Months Ended
	Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract]
Schedule of Corrections to Impacted Financial Statements	A summary of the corrections to the impacted financial statement line items in the Company’s previously issued Consolidated Statements of Operations and Comprehensive Income, Consolidated Statements of Cash Flows and Consolidated Statements of Equity for the quarter ended September 30, 2022, and Consolidated Balance Sheets for the year ended December 31, 2022 included in previously filed Annual Reports on Form 10-K and Condensed Consolidated Statements of Operations and Comprehensive Income, Condensed Consolidated Statements of Cash Flows and the Stockholders’ Equity tables for periods presented below, which were presented in previously filed Quarterly Reports on Form 10-Q, is as follows: Condensed Consolidated Statements of Operations and Comprehensive Income Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 As Previously Reported Adjustments As Revised As Previously Reported Adjustments As Revised Operating expenses Depreciation and amortization $ 15,764  $ (290) $ 15,474  $ 45,672  $ (393) $ 45,279  Total operating expense before incentive fee waiver $ 37,448  $ (290) $ 37,158  $ 90,932  $ (393) $ 90,539  Total operating expenses $ 37,448  $ (290) $ 37,158  $ 90,932  $ (393) $ 90,539  Net income $ 2,497  $ 290  $ 2,787  $ 7,459  $ 393  $ 7,852  Net income available to the Company $ 2,501  $ 290  $ 2,791  $ 7,471  $ 393  $ 7,864  Net loss attributable to common stockholders $ (600) $ 290  $ (310) $ (1,778) $ 393  $ (1,385) Loss per weighted average share of common stock - basic & diluted Loss attributable to common shareholders $ (0.02) $ 0.01  $ (0.01) $ (0.05) $ 0.01  $ (0.04) Comprehensive income Net income $ 2,497  $ 290  $ 2,787  $ 7,459  $ 393  $ 7,852  Total comprehensive income available to the Company $ 9,291  $ 290  $ 9,581  $ 21,131  $ 393  $ 21,524  Consolidated Balance Sheets As of December 31, 2022 As Previously Reported Adjustments As Revised ASSETS Less: accumulated depreciation $ 286,994  $ (844) $ 286,150  Total real estate, net $ 1,000,303  $ 844  $ 1,001,147  Real estate and related assets held for sale $ 3,013  $ 280  $ 3,293  TOTAL ASSETS $ 1,201,509  $ 1,124  $ 1,202,633  EQUITY Distributions in excess of accumulated earnings $ (530,228) $ 1,124  $ (529,104) TOTAL STOCKHOLDERS' EQUITY $ 202,780  $ 1,124  $ 203,904  TOTAL EQUITY $ 204,570  $ 1,124  $ 205,694  TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY $ 1,201,509  $ 1,124  $ 1,202,633  Stockholders’ Equity Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 As Previously Reported Adjustments As Revised As Previously Reported Adjustments As Revised Distributions in Excess of Accumulated Earnings Balance, beginning of period $ (498,574) $ (282) $ (498,856) $ (468,523) $ (385) $ (468,908) Net income attributable to the Company 2,501  290  2,791  7,471  393  7,864  Balance, end of period $ (514,057) $ 7  $ (514,050) $ (514,057) $ 7  $ (514,050) Total Stockholders' Equity Balance, beginning of period $ 212,620  $ (282) $ 212,338  $ 201,303  $ (385) $ 200,918  Net income attributable to the Company 2,501  290  2,791  7,471  393  7,864  Balance, end of period $ 215,448  $ 7  $ 215,455  $ 215,448  $ 7  $ 215,455  Total Equity $ 217,386  $ 7  $ 217,393  $ 217,386  $ 7  $ 217,393  Condensed Consolidated Statements of Cash Flows Nine Months Ended September 30, 2022 As Previously Reported Adjustments As Revised Cash flows from operating activities: Net income $ 7,459  $ 393  $ 7,852  Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 45,672  (393) 45,279

v3.23.3

Subsequent Events (Tables)	9 Months Ended
	Sep. 30, 2023
Subsequent Events [Abstract]
Schedule of Monthly Distributions Declared by Company's Board of Directors	On October 10, 2023, our Board of Directors declared the following monthly distributions for the months of October, November and December of 2023:   Record Date Payment Date Common Stock and Non-controlling OP Unit Distributions per Share Series E Preferred Distributions per Share Series G Preferred Distributions per Share October 20, 2023 October 31, 2023 $ 0.10  $ 0.138021  $ 0.125  November 20, 2023 November 30, 2023 0.10  0.138021  0.125  December 18, 2023 December 29, 2023 0.10  0.138021  0.125  $ 0.30  $ 0.414063  $ 0.375  Senior Common Stock Distributions Payable to the Holders of Record During the Month of: Payment Date Distribution per Share October November 3, 2023 $ 0.0875  November December 5, 2023 0.0875  December January 5, 2024 0.0875  $ 0.2625  Series F Preferred Stock Distributions Record Date Payment Date Distribution per Share October 25, 2023 November 3, 2023 $ 0.125  November 28, 2023 December 5, 2023 0.125  December 27, 2023 January 5, 2024 0.125  $ 0.375

v3.23.3

Related-Party Transactions (Details)					3 Months Ended		9 Months Ended
		Jul. 11, 2023	Jul. 14, 2020	Feb. 20, 2020 $ / shares shares	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) officer quarter	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Related Party Transaction [Line Items]
Number of executive officers | officer							2
Related Party
Related Party Transaction [Line Items]
Amount due to advisor and administrator	[1]				$ 2,552,000		$ 2,552,000		$ 3,356,000
Advisory Agreement
Related Party Transaction [Line Items]
Number of quarters used for the cap of average quarterly incentive fees | quarter							4
Advisory Agreement | Affiliated Entity
Related Party Transaction [Line Items]
Notice period for termination of agreement without cause							120 days
Percentage of independent directors required to terminate the amended advisory agreement							66.67%
Number of times the sum of the average annual base management fee and incentive fee earned by adviser					2		2
Period prior to termination							24 months
Notice period for termination of agreement with cause							30 days
Advisory Agreement - Base Rate, Annualized Rate | Affiliated Entity
Related Party Transaction [Line Items]
Management and service fees, base rate			0.425%
Advisory Agreement - Base Rate, Quarterly Rate | Affiliated Entity
Related Party Transaction [Line Items]
Management and service fees, base rate			0.10625%
Advisory Agreement - Base Management Fee
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction					$ 1,600,000	$ 1,600,000	$ 4,800,000	$ 4,700,000
Advisory Agreement - Incentive Rate, Quarterly Hurdle Rate | Affiliated Entity
Related Party Transaction [Line Items]
Management and service fees, incentive rate							2.00%
Advisory Agreement - Incentive Rate, Annualized Hurdle Rate | Affiliated Entity
Related Party Transaction [Line Items]
Management and service fees, incentive rate							8.00%
Advisory Agreement - Incentive Rate, Pre-Incentive Fee Net Investment Income Below Catch-Up Threshold | Affiliated Entity
Related Party Transaction [Line Items]
Management and service fees, incentive rate							15.00%
Advisory Agreement - Incentive Rate, Pre-Incentive Fee Net Investment Income Exceeds Catch-Up Threshold | Affiliated Entity
Related Party Transaction [Line Items]
Management and service fees, incentive rate							15.00%
Eight Amended Advisory Agreement | Affiliated Entity
Related Party Transaction [Line Items]
Management and service fees, incentive rate		15.00%
Advisory Agreement - Incentive Fees | Affiliated Entity
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction						1,500,000		4,200,000
Contractual fee waived					900,000		$ 3,400,000
Investment company, voluntary fee waived						0		0
Advisory Agreement - Incentive Rate, Realized Capital Gains
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction					0	0	$ 0	0
Advisory Agreement - Incentive Rate, Realized Capital Gains | Affiliated Entity
Related Party Transaction [Line Items]
Management and service fees, incentive rate							15.00%
Advisory Agreement - Termination Fee Payable as a Percentage of Management and Incentive Fees Earned by Adviser | Affiliated Entity
Related Party Transaction [Line Items]
Related party transaction, rate							200.00%
Administrative Agreement - Administrative Fee
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction					600,000	500,000	$ 1,700,000	1,300,000
Mortgage Financing Arrangement Agreement - Financing Fees | Gladstone Securities, LLC
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction					$ 30,000.00	$ 100,000	$ 100,000	$ 300,000
Mortgage Financing Arrangement Agreement - Percentage of Mortgage Principal Secured | Gladstone Securities, LLC
Related Party Transaction [Line Items]
Related party transaction, rate					0.38%	0.29%	0.29%	0.32%
Dealer Manager Agreement | Gladstone Securities, LLC
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction					$ 100,000	$ 100,000	$ 500,000	$ 400,000
Dealer Manager Agreement - Selling Commission Percentage of Gross Proceeds From Sales
Related Party Transaction [Line Items]
Related party transaction, rate				6.00%
Dealer Manager Agreement - Dealer Management Fee Percentage of Gross Proceeds from Sale of Preferred Stock in Primary Offering
Related Party Transaction [Line Items]
Related party transaction, rate				3.00%
Series F Cumulative Redeemable Preferred Stock | Preferred Stock | Dealer Manager Agreement | Affiliated Entity | Gladstone Securities, LLC
Related Party Transaction [Line Items]
Redeemable preferred stock, shares authorized (in shares) | shares				20,000,000
Redeemable preferred stock, dividend rate				6.00%
Redeemable preferred stock, par value (in dollars per share) | $ / shares				$ 0.001
Redeemable preferred stock, dividend reinvestment plan, shares authorized (in shares) | shares				6,000,000
Minimum | Mortgage Financing Arrangement Agreement - Financing Fees | Gladstone Securities, LLC
Related Party Transaction [Line Items]
Related party transaction, rate							0.15%
Maximum | Mortgage Financing Arrangement Agreement - Financing Fees | Gladstone Securities, LLC
Related Party Transaction [Line Items]
Related party transaction, rate							1.00%
[1] Refer to Note 2 “Related-Party Transactions”

v3.23.3

Loss Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Calculation of basic loss per share of common stock:
Net loss attributable to common stockholders	$ (1,419)	$ (310)	$ (9,063)	$ (1,385)
Denominator for basic weighted average shares of common stock (in shares)	39,917,995	39,504,734	39,939,660	38,723,581
Basic loss per share of common stock (in dollars per share)	$ (0.04)	$ (0.01)	$ (0.23)	$ (0.04)
Calculation of diluted loss per share of common stock:
Net loss attributable to common stockholders	$ (1,419)	$ (310)	$ (9,063)	$ (1,385)
Net loss attributable to common stockholders plus assumed conversions	$ (1,419)	$ (310)	$ (9,063)	$ (1,385)
Denominator for basic weighted average shares of common stock (in shares)	39,917,995	39,504,734	39,939,660	38,723,581
Effect of convertible Senior Common Stock (in shares)	0	0	0	0
Denominator for diluted weighted average shares of common stock (in shares)	39,917,995	39,504,734	39,939,660	38,723,581
Diluted loss per share of common stock (in dollars per share)	$ (0.04)	$ (0.01)	$ (0.23)	$ (0.04)
Weighted average number of OP Units held by Non-controlling OP Unitholders (in shares)	391,468	273,072	391,468	262,412
Senior Common Stock
Calculation of diluted loss per share of common stock:
Anti-dilutive convertible shares of senior common stock excluded from calculation of diluted earnings (in shares)	345,132	363,246	345,132	363,246

v3.23.3

Real Estate and Intangible Assets - Components of Investments in Real Estate (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Real estate:
Land	$ 143,815	$ 152,916
Building and improvements	1,025,384	1,069,407
Tenant improvements	57,262	64,974
Accumulated depreciation	(291,986)	(286,150)
Total real estate, net	934,475	1,001,147
Land value subject to land lease agreements	$ 4,436	$ 4,436

v3.23.3

Real Estate and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Real Estate Properties [Line Items]
Total amortization expense related to lease intangible assets	$ 3.6	$ 4.7	$ 12.9	$ 14.5
Amortization related to below-market lease	1.8	1.5	6.2	3.1
Above market leases
Real Estate Properties [Line Items]
Operating lease, right-of-use asset, amortization expense	0.1	0.2	0.4	0.6
Building and Tenant Improvements
Real Estate Properties [Line Items]
Real estate depreciation expense	$ 8.9	$ 10.7	$ 31.2	$ 30.7

v3.23.3

Real Estate and Intangible Assets - Schedule of Acquired Properties (Details) $ in Thousands											9 Months Ended
	Jul. 28, 2023 USD ($) ft² tenant	Jul. 10, 2023 USD ($) ft² tenant	Apr. 14, 2023 USD ($) ft² tenant	Sep. 20, 2022 USD ($) ft²	Sep. 16, 2022 USD ($) ft² tenant	Aug. 05, 2022 USD ($) ft² tenant property	May 12, 2022 USD ($) ft² tenant property	May 04, 2022 USD ($) ft² tenant property	Mar. 11, 2022 USD ($) ft² tenant	Feb. 24, 2022 USD ($) ft² tenant	Sep. 30, 2023 USD ($) ft² property	Sep. 30, 2022 USD ($) ft² property
Business Acquisition [Line Items]
Number of properties acquired | property											3	11
Aggregate Purchase Price											$ 17,539	$ 98,276
Riverdale, Illinois
Business Acquisition [Line Items]
Aggregate Square Footage | ft²			76,089
Weighted Average Lease Term			20 years
Aggregate Purchase Price			$ 5,400
Number of tenants | tenant			1
Dallas Fort Worth, Texas
Business Acquisition [Line Items]
Aggregate Square Footage | ft²	100,000	7,714
Weighted Average Lease Term	20 years	9 years 10 months 24 days
Aggregate Purchase Price	$ 9,200	$ 3,000
Number of tenants | tenant	1	1
Wilkesboro, North Carolina
Business Acquisition [Line Items]
Aggregate Square Footage | ft²										80,000
Weighted Average Lease Term										12 years 8 months 12 days
Aggregate Purchase Price										$ 7,500
Number of tenants | tenant										1
Oklahoma City, Oklahoma
Business Acquisition [Line Items]
Aggregate Square Footage | ft²									56,000
Weighted Average Lease Term									7 years
Aggregate Purchase Price									$ 6,000
Number of tenants | tenant									1
Cleveland, Ohio and Fort Payne, Alabama
Business Acquisition [Line Items]
Number of properties acquired | property								2
Aggregate Square Footage | ft²								260,719
Weighted Average Lease Term								11 years 4 months 24 days
Aggregate Purchase Price								$ 19,500
Number of tenants | tenant								1
Wilmington, North Carolina
Business Acquisition [Line Items]
Number of properties acquired | property							3
Aggregate Square Footage | ft²							345,584
Weighted Average Lease Term							13 years 1 month 6 days
Aggregate Purchase Price							$ 18,900
Number of tenants | tenant							1
Bridgeton and Vineland, New Jersey
Business Acquisition [Line Items]
Number of properties acquired | property						2
Aggregate Square Footage | ft²						246,000
Weighted Average Lease Term						15 years 1 month 6 days
Aggregate Purchase Price						$ 32,700
Number of tenants | tenant						1
Jacksonville, Florida
Business Acquisition [Line Items]
Aggregate Square Footage | ft²					67,328
Weighted Average Lease Term					20 years
Aggregate Purchase Price					$ 8,100
Number of tenants | tenant					1
Fort Payne, Alabama
Business Acquisition [Line Items]
Aggregate Square Footage | ft²				49,375
Weighted Average Lease Term				14 years 9 months 18 days
Aggregate Purchase Price				$ 5,600
Series of Property Acquisitions
Business Acquisition [Line Items]
Aggregate Square Footage | ft²											183,803	1,105,006
Weighted Average Lease Term											18 years 8 months 12 days	13 years 9 months 18 days
Aggregate Purchase Price											$ 17,539	$ 98,276
Aggregate Capitalized Acquisition Costs											$ 349	$ 776

v3.23.3

Real Estate and Intangible Assets - Business Combinations and Asset Acquisitions (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Business Acquisition [Line Items]
Total purchase price	$ 17,539	$ 98,276
Customer Relationships
Business Acquisition [Line Items]
Assets acquired	439	2,937
Above Market Leases
Business Acquisition [Line Items]
Assets acquired	0	328
Loan receivable		9
Below Market Leases
Business Acquisition [Line Items]
Liabilities assumed	0	(603)
Prepaid rent		32
Land
Business Acquisition [Line Items]
Assets acquired	2,714	5,949
Building
Business Acquisition [Line Items]
Assets acquired	11,423	77,903
Tenant Improvements
Business Acquisition [Line Items]
Assets acquired	692	1,468
In-place Leases
Business Acquisition [Line Items]
Assets acquired	1,001	4,907
Leasing Costs
Business Acquisition [Line Items]
Assets acquired	$ 1,270	$ 5,387

v3.23.3

Real Estate and Intangible Assets - Future Operating Lease Payments from Tenants under Non-Cancelable Leases (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Real Estate [Abstract]
Three Months Ending December 31, 2023	$ 28,906
2024	112,878
2025	112,342
2026	106,748
2027	90,440
2028	75,223
Thereafter	$ 357,055

v3.23.3

Real Estate and Intangible Assets - Lease Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Real Estate [Abstract]
Fixed lease payments	$ 31,945	$ 35,752	$ 98,465	$ 98,961
Variable lease payments	4,519	4,082	13,210	12,803
Total lease payments	36,464	$ 39,834	111,675	$ 111,764
Fixed lease payments, amount change	(3,807)		(496)
Variable lease payments, amount change	437		407
Lease payments, amount change	$ (3,370)		$ (89)
Fixed lease payments, percent change	(10.60%)		(0.50%)
Variable lease payments, percent change	10.70%		3.20%
Lease payments, percent change	(8.50%)		(0.10%)

v3.23.3

Real Estate and Intangible Assets - Carrying Value of Intangible Assets and Accumulated Amortization (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Below market leases and deferred revenue, lease intangibles	$ (60,927)	$ (66,138)
Below market leases and deferred revenue, accumulated amortization	29,113	26,141
Lease Intangibles
Finite-Lived Intangible Assets [Line Items]
Lease Intangibles	245,593	259,018
Accumulated Amortization	(142,964)	(147,396)
In-place leases
Finite-Lived Intangible Assets [Line Items]
Lease Intangibles	98,904	104,394
Accumulated Amortization	(62,270)	(63,240)
Leasing costs
Finite-Lived Intangible Assets [Line Items]
Lease Intangibles	83,075	85,038
Accumulated Amortization	(45,170)	(45,501)
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Lease Intangibles	63,614	69,586
Accumulated Amortization	(35,524)	(38,655)
Above market leases
Finite-Lived Intangible Assets [Line Items]
Lease Intangibles	13,431	15,371
Accumulated Amortization	$ (10,546)	$ (11,909)

v3.23.3

Real Estate and Intangible Assets - Weighted Average Amortization Period for Intangible Assets and Liabilities (Details)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period	19 years 7 months 6 days	15 years 8 months 12 days
In-place leases
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period	18 years	14 years 2 months 12 days
Leasing costs
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period	18 years	14 years 2 months 12 days
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period	22 years 8 months 12 days	20 years 2 months 12 days
Above market leases
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period	0 years	15 years 8 months 12 days
Below market leases
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period	0 years	13 years

v3.23.3

Real Estate Dispositions, Held for Sale and Impairment Charges - Additional Information (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2023 property	Sep. 30, 2023 USD ($) property	Sep. 30, 2022 USD ($) property	Dec. 31, 2022 property
Columbia, South Carolina, Richardson, Texas, Columbus, Ohio and Blaine, Minnesota
Real Estate Properties [Line Items]
Number of real estate properties, held for sale	4	4
Columbia, South Carolina
Real Estate Properties [Line Items]
Number of real estate properties, held for sale				1
Richardson, Texas and Taylorsville, Utah
Real Estate Properties [Line Items]
Number of assets held for sale		2
Impairment charge | $		$ 4.6
Columbus, Ohio
Real Estate Properties [Line Items]
Number of assets held for sale		2
Impairment charge | $		$ 9.0
Columbia, South Caroling and Parsippany, New Jersey
Real Estate Properties [Line Items]
Number of assets held for sale			2
Impairment charge | $			$ 12.1
Disposed of by Sale
Real Estate Properties [Line Items]
Number of non-core properties sold	3	5	3

v3.23.3

Real Estate Dispositions, Held for Sale and Impairment Charges - Summary of Properties Sold (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($) ft²	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) ft²	Sep. 30, 2022 USD ($)
Real Estate Properties [Line Items]
Aggregate Gain on Sale of Real Estate, net	$ 4,696	$ 8,902	$ 4,245	$ 8,902
Impairment charge	$ 6,754	$ 10,718	$ 13,577	$ 12,092
Assets disposed of by Sale
Real Estate Properties [Line Items]
Aggregate Square Footage | ft²	206,278		206,278
Aggregate Sales Price			$ 23,650
Aggregate Sales Costs			1,476
Aggregate Gain on Sale of Real Estate, net	$ 4,700		4,245
Impairment charge			$ 3,591

v3.23.3

Real Estate Dispositions, Held for Sale and Impairment Charges - Components of Operating Income from Real Estate and Related Assets Disposed (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($) property	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) property	Sep. 30, 2022 USD ($) property
Real Estate Properties [Line Items]
Gain (loss) on sale of real estate, net	$ 4,696	$ 8,902	$ 4,245	$ 8,902
Assets disposed of by Sale
Real Estate Properties [Line Items]
Operating revenue	184	565	1,209	2,501
Operating expense	60	510	4,427	2,251
Other income (expense), net	4,443	(189)	3,790	(502)
Income (expense) from real estate and related assets sold	4,567	$ (134)	572	$ (252)
Gain (loss) on sale of real estate, net	$ 4,700		$ 4,245
Number of non-core properties sold | property	3		5	3
Impairment charge			$ 3,600
Number of property impaired | property			1

v3.23.3

Real Estate Dispositions, Held for Sale and Impairment Charges - Components of Assets and Liabilities Held for Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets Held for Sale
Total Assets Held for Sale	$ 29,350	$ 3,293
Liabilities Held for Sale
Total Liabilities Held for Sale	631	0
Real Estate Held for Sale
Assets Held for Sale
Total real estate held for sale	28,972	3,293
Lease intangibles, net	369	0
Deferred rent receivable, net	9	0
Total Assets Held for Sale	29,350	3,293
Liabilities Held for Sale
Deferred rent liability, net	631	0
Total Liabilities Held for Sale	$ 631	$ 0

v3.23.3

Mortgage Notes Payable and Credit Facility - Additional Information (Details)			3 Months Ended		9 Months Ended
	Sep. 27, 2022 USD ($)	Aug. 18, 2022 USD ($)	Sep. 30, 2023 USD ($) mortgage property	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) mortgage property	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Aug. 17, 2022 USD ($)
Debt Instrument [Line Items]
Number of properties collateralized in mortgage notes payable | property			131		131
Payments of deferred financing costs					$ 375,000	$ 5,202,000
Estimated reclassification from AOCI to interest expenses					6,900,000
Carrying value			$ 749,009,000		749,009,000		$ 749,206,000
Line of credit outstanding			$ 70,950,000		$ 70,950,000		23,250,000
Weighted average interest rate on debt outstanding			4.20%		4.20%
Line of Credit
Debt Instrument [Line Items]
Line of credit outstanding			$ 441,000,000		$ 441,000,000
Weighted average interest rate			6.77%		6.77%
Letters of credit, outstanding			$ 2,900,000		$ 2,900,000
Weighted average interest rate on debt outstanding			1.50%		1.50%
Maximum additional amount that can be drawn under line of credit			$ 44,900,000		$ 44,900,000
Fixed rate mortgage loans
Debt Instrument [Line Items]
Number of properties collateralized in mortgage notes payable | property			49		49
Payments of deferred financing costs			$ 300,000	$ 5,600,000	$ 400,000	$ 6,200,000
Mortgage notes payable
Debt Instrument [Line Items]
Number of mortgage notes payable | mortgage			43		43
Number of properties collateralized in mortgage notes payable | property			49		49
Net book value of collateralized mortgage properties			$ 496,500,000		$ 496,500,000
Fair value of mortgage notes payable			273,200,000		273,200,000
Carrying value			$ 310,974,000		$ 310,974,000		$ 359,389,000
Weighted average interest rate on debt outstanding			5.70%		5.70%
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 125,000,000	$ 120,000,000	$ 125,000,000		$ 125,000,000			$ 100,000,000
Variable rate term loan facility A
Debt Instrument [Line Items]
Maximum borrowing capacity			160,000,000		160,000,000
Variable rate term loan facility B
Debt Instrument [Line Items]
Maximum borrowing capacity		60,000,000	60,000,000		60,000,000
Variable rate term loan facility C
Debt Instrument [Line Items]
Maximum borrowing capacity	150,000,000	$ 140,000,000	$ 150,000,000		$ 150,000,000
Debt instrument fees incurred	$ 4,200,000
Variable rate term loan facility C | Minimum | SOFR
Debt Instrument [Line Items]
Spread on debt	3.15%	1.25%
Variable rate term loan facility C | Maximum | SOFR
Debt Instrument [Line Items]
Spread on debt	3.75%	1.95%

v3.23.3

Mortgage Notes Payable and Credit Facility - Company's Mortgage Notes Payable and Line of Credit (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($) property mortgage	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Encumbered properties | property	131
Total	$ 749,009	$ 749,206
Weighted average interest rate on debt outstanding	4.20%
SOFR
Debt Instrument [Line Items]
Variable rate at period end	5.31%
Mortgage notes payable
Debt Instrument [Line Items]
Encumbered properties | property	49
Carrying value	$ 313,400
Premiums and discounts, net	(52)	(83)
Deferred financing costs, net	(2,374)	(2,565)
Total	$ 310,974	359,389
Number of mortgage notes payable | mortgage	43
Weighted average interest rate on debt outstanding	5.70%
Fixed rate mortgage loans
Debt Instrument [Line Items]
Encumbered properties | property	49
Carrying value	$ 313,400	362,037
Stated interest rate	4.78%
Fixed rate mortgage loans | Minimum
Debt Instrument [Line Items]
Stated interest rate	2.80%
Fixed rate mortgage loans | Maximum
Debt Instrument [Line Items]
Stated interest rate	6.63%
Variable rate revolving credit facility | Revolving Credit Facility
Debt Instrument [Line Items]
Encumbered properties | property	82
Carrying value	$ 70,950	23,250
Total	$ 70,950	23,250
Scheduled maturity dates	Aug. 18, 2026
Variable rate revolving credit facility | Revolving Credit Facility | SOFR
Debt Instrument [Line Items]
Spread on debt	1.50%
Credit Facility
Debt Instrument [Line Items]
Deferred financing costs, net	$ (2,915)	(3,433)
Total	367,085	366,567
Variable rate term loan facility A
Debt Instrument [Line Items]
Carrying value	$ 160,000	160,000
Scheduled maturity dates	Aug. 18, 2027
Variable rate term loan facility A | SOFR
Debt Instrument [Line Items]
Spread on debt	1.45%
Variable rate term loan facility B
Debt Instrument [Line Items]
Carrying value	$ 60,000	60,000
Scheduled maturity dates	Feb. 11, 2026
Variable rate term loan facility B | SOFR
Debt Instrument [Line Items]
Spread on debt	1.45%
Variable rate term loan facility C
Debt Instrument [Line Items]
Carrying value	$ 150,000	$ 150,000
Scheduled maturity dates	Feb. 18, 2028
Variable rate term loan facility C | SOFR
Debt Instrument [Line Items]
Spread on debt	1.45%

v3.23.3

Mortgage Notes Payable and Credit Facility - Mortgages Notes Payable (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($) property mortgage	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Fixed rate debt repaid	$ 57,637	$ 138,889
Weighted Average Interest Rate on Fixed Rate Debt	4.20%
Fixed rate mortgage loans
Debt Instrument [Line Items]
Number of long term mortgages repaid | mortgage	4
Number of existing encumbered propertied repaid | property	4
Fixed rate debt repaid	$ 46,530
Stated interest rate	4.78%
Fixed Rate Debt Extended	$ 313,400		$ 362,037
New Fixed Rate Mortgage Notes Payable
Debt Instrument [Line Items]
Number of long-term mortgages issued | mortgage	3
Number of properties to issue collateralized mortgage notes payable | property	3
Aggregate Fixed Rate Debt Issued	$ 9,000
Weighted Average Interest Rate on Fixed Rate Debt	6.10%
Fixed rate mortgage loans with extended maturity
Debt Instrument [Line Items]
Stated interest rate	6.50%
Number of long term mortgages, maturity date extended | mortgage	1
Number of properties used to collateralize mortgages with extended maturity | property	1
Fixed Rate Debt Extended	$ 8,769
Extension Term	1 year

v3.23.3

Mortgage Notes Payable and Credit Facility - Scheduled Principal Payments of Mortgage Notes Payable (Details) - Mortgage notes payable - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Three Months Ending December 31, 2023	$ 11,995
2024	28,400
2025	36,420
2026	35,084
2027	95,040
2028	37,116
Thereafter	69,345
Total	313,400
Premiums and discounts, net	(52)	$ (83)
Deferred financing costs, net	$ 2,374	$ 2,565

v3.23.3

Mortgage Notes Payable and Credit Facility - Interest Rate Derivatives (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Aggregate Cost	$ 141
Aggregate Notional Amount	65,000	$ 225,000
Aggregate Fair Value	$ 1,340	4,629
Minimum | SOFR
Debt Instrument [Line Items]
Interest rate	1.49%
Maximum | SOFR
Debt Instrument [Line Items]
Interest rate	1.75%
Interest rate swaps | Counterparty
Debt Instrument [Line Items]
Aggregate Notional Amount	$ 361,969	362,832
Aggregate Fair Value Asset	17,015	8,264
Aggregate Fair Value Liability	$ 0	$ (897)

v3.23.3

Mortgage Notes Payable and Credit Facility - Schedule of Derivative Instruments Impact (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain, net, recognized in Comprehensive Income	$ 5,089	$ 6,790	$ 7,218	$ 13,660
Amount reclassified out of Accumulated Other Comprehensive Income	409	(52)	937	(52)
Interest rate caps
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain, net, recognized in Comprehensive Income	(654)	1,758	(2,429)	4,520
Amount reclassified out of Accumulated Other Comprehensive Income	409	(52)	937	(52)
Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain, net, recognized in Comprehensive Income	$ 5,743	$ 5,032	$ 9,647	$ 9,140

v3.23.3

Mortgage Notes Payable and Credit Facility - Schedule of Derivative Instruments' Information (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Total derivative liabilities, net	$ 18,355	$ 11,996
Interest rate caps | Derivatives Designated as Hedging Instruments
Derivative Instruments, Gain (Loss) [Line Items]
Derivative assets	1,340	4,629
Interest rate swaps | Derivatives Designated as Hedging Instruments
Derivative Instruments, Gain (Loss) [Line Items]
Derivative assets	17,015	8,264
Derivative liabilities	$ 0	$ (897)

v3.23.3

Commitments and Contingencies - Future Lease Payments Due Under Operating Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Future Lease Payments Due Under Operating Leases
Three Months Ending December 31, 2023	$ 124
2024	493
2025	494
2026	498
2027	506
2028	510
Thereafter	5,790
Total anticipated lease payments	8,415
Less: amount representing interest	(3,267)
Present value of lease payments	$ 5,148	$ 5,308

v3.23.3

Commitments and Contingencies - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($) property	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) property	Sep. 30, 2022 USD ($)
Other Commitments [Line Items]
Number of leases | property	4		4
Rental expense	$ 31,945	$ 35,752	$ 98,465	$ 98,961
Weighted average remaining lease term	17 years 10 months 24 days		17 years 10 months 24 days
Weighted average discount rate	5.33%		5.33%
Line of Credit
Other Commitments [Line Items]
Letters of credit, outstanding	$ 2,900		$ 2,900
Property Operating Expense
Other Commitments [Line Items]
Rental expense	$ 100	$ 100	$ 300	$ 300

v3.23.3

Equity and Mezzanine Equity - Schedule of Changes in Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance			$ 203,904
Comprehensive income	$ 5,089	$ 6,790	7,218	$ 13,660
Reclassification into interest expense	(409)	52	(937)	52
Net income	1,792	2,787	370	7,852
Stockholders' equity, ending balance	175,123		175,123
Total Equity	176,586	217,393	176,586	217,393	$ 205,694
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance	39	39	39	37
Issuance of common stock and preferred stock, net	0	0	1	2
Repurchase of common stock, net	0	0	(1)	0
Stockholders' equity, ending balance	39	39	39	39
Common Stock | Senior Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance	1	1	1	1
Issuance of common stock and preferred stock, net	0	0	0	0
Stockholders' equity, ending balance	1	1	1	1
Series F Preferred Stock | Series F Preferred Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance	1	1	1	0
Issuance of common stock and preferred stock, net	0	0	0	1
Stockholders' equity, ending balance	1	1	1	1
Additional Paid in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance	728,580	705,629	721,327	671,134
Issuance of common stock and preferred stock, net	690	9,856	6,725	44,513
Repurchase of common stock, net	0	0	998	0
Redemption of Series F preferred stock, net	183	0	401	55
Retirement of senior common stock, net	0	0	52	0
Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership	(53)	1,613	(103)	1,396
Stockholders' equity, ending balance	729,400	717,098	729,400	717,098
Accumulated Other Comprehensive Income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance	14,297	5,524	11,640	(1,346)
Comprehensive income	5,089	6,790	7,218	13,660
Reclassification into interest expense	409	52	937	52
Stockholders' equity, ending balance	19,795	12,366	19,795	12,366
Distributions in Excess of Accumulated Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance	(560,719)	(498,856)	(529,104)	(468,908)
Distributions declared to common, senior common, and preferred stockholders	(15,182)	(17,984)	(45,445)	(53,000)
Net income	1,789	2,791	448	7,864
Stockholders' equity, ending balance	(574,113)	(514,050)	(574,113)	(514,050)
Distributions in Excess of Accumulated Earnings | Series F Preferred Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Redemption of Series F preferred stock, net	(1)	0	(12)	(5)
Total Stockholders' Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance	182,199	212,338	203,904	200,918
Issuance of common stock and preferred stock, net	690	9,856	6,726	44,516
Repurchase of common stock, net	0	0	997	0
Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership	(53)	1,613	(103)	1,396
Comprehensive income	5,089	6,790	7,218	13,660
Reclassification into interest expense	409	52	937	52
Distributions declared to common, senior common, and preferred stockholders	(15,182)	(17,984)	(45,445)	(53,000)
Net income	1,789	2,791	448	7,864
Stockholders' equity, ending balance	175,123	215,455	175,123	215,455
Total Stockholders' Equity | Series F Preferred Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Redemption of Series F preferred stock, net	182	0	389	50
Retirement of senior common stock, net	0	0	52	0
Non-Controlling Interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance	1,524	1,275	1,790	1,259
Adjustment to OP Units held by Non-controlling OP Unitholders resulting from changes in ownership of the Operating Partnership	53	(1,613)	103	(1,396)
Distributions declared to common, senior common, and preferred stockholders	(117)	(114)	(352)	(307)
Net income	3	(4)	(78)	(12)
Issuance of Non-controlling OP Units as consideration in real estate acquisitions, net	0	2,394	0	2,394
Stockholders' equity, ending balance	$ 1,463	$ 1,938	$ 1,463	$ 1,938

v3.23.3

Equity and Mezzanine Equity - Dividends Paid (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Senior Common Stock
Dividends Payable [Line Items]
Common Stock, dividends paid (in dollars per share)	$ 0.2625	$ 0.2625	$ 0.7875	$ 0.7875
Series E Preferred Stock
Dividends Payable [Line Items]
Preferred Stock, dividends paid (in dollars per share)	0.414063	0.414063	1.242189	1.242189
Series F Preferred Stock
Dividends Payable [Line Items]
Preferred Stock, dividends paid (in dollars per share)	0.375	0.375	1.125	1.125
Series G Preferred Stock
Dividends Payable [Line Items]
Preferred Stock, dividends paid (in dollars per share)	0.375	0.375	1.125	1.125
Common Stock and Non-controlling OP Units
Dividends Payable [Line Items]
Common Stock, dividends paid (in dollars per share)	$ 0.30000	$ 0.37620	$ 0.90000	$ 1.12860

v3.23.3

Equity and Mezzanine Equity - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Feb. 09, 2023	Feb. 20, 2020	Feb. 19, 2020	Jan. 29, 2020
Class of Stock [Line Items]
Temporary equity, contract terms, trigger change in control			50.00%
Common stock, shares outstanding (in shares)	39,917,995		39,917,995		39,744,359		60,290,000	86,290,000
Units held by noncontrolling owners (in shares)			391,468		391,468
Gladstone Commercial Limited Partnership
Class of Stock [Line Items]
Company ownership percentage of voting securities	99.00%		99.00%		99.00%
Series D Preferred Stock
Class of Stock [Line Items]
Temporary equity, contract terms, minimum vote needed to trigger change in control from tender offer	90.00%		90.00%
Common Stock
Class of Stock [Line Items]
Repurchase of common stock, net	$ 0	$ 0	$ 1	$ 0
Preferred Stock | Series E Preferred Stock
Class of Stock [Line Items]
Redeemable preferred stock, dividend rate			6.625%
Preferred Stock | Series G Preferred Stock
Class of Stock [Line Items]
Redeemable preferred stock, dividend rate			6.00%
Preferred Stock | Series F Preferred Stock
Class of Stock [Line Items]
Redeemable preferred stock, shares issued (in shares)			229,677
Consideration received			$ 5,200
Redeemable preferred stock, shares authorized (in shares)							26,000,000
Common Stock ATM Program | Common Stock
Class of Stock [Line Items]
Repurchase of common stock, net			$ 1,000
Universal registration statement, amount authorized									$ 63,000
Common Stock ATM Program | Baird, Goldman Sachs, Stifel, Fifth Third, and U.S. Bancorp Investments, Inc. | Common Stock
Class of Stock [Line Items]
Redeemable preferred stock, shares issued (in shares)			200,000
Maximum aggregate sales price of shares to be issued under open market sale agreement	$ 250,000		$ 250,000
Common Stock ATM Program | Baird, Goldman Sachs, Stifel, and Fifth Third | Common Stock
Class of Stock [Line Items]
Consideration received			$ 4,000
Maximum aggregate sales price of shares to be issued under open market sale agreement						$ 100,000
2020 Universal Shelf
Class of Stock [Line Items]
Universal registration statement, amount authorized									800,000
2020 Universal Shelf | Preferred Stock | Series F Preferred Stock
Class of Stock [Line Items]
Universal registration statement, amount authorized									$ 636,500

v3.23.3

Revision of Previously Issued Financial Statements - Operations and Comprehensive Income (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Operating expenses
Depreciation and amortization	$ 12,485	$ 15,474	$ 44,125	$ 45,279
Total operating expense before incentive fee waiver		37,158		90,539
Total operating expenses	29,587	37,158	87,967	90,539
Net income	1,792	2,787	370	7,852
Net income available to the Company	1,789	2,791	448	7,864
Net loss attributable to common stockholders	$ (1,419)	$ (310)	$ (9,063)	$ (1,385)
Loss per weighted average share of common stock - basic & diluted
Loss attributable to common shareholders, basic (in dollars per share)	$ (0.04)	$ (0.01)	$ (0.23)	$ (0.04)
Loss attributable to common shareholders, diluted (in dollars per share)	$ (0.04)	$ (0.01)	$ (0.23)	$ (0.04)
Comprehensive income
Net income	$ 1,792	$ 2,787	$ 370	$ 7,852
Total comprehensive income available to the Company	$ 6,878	9,581	$ 7,666	21,524
As Previously Reported
Operating expenses
Depreciation and amortization		15,764		45,672
Total operating expense before incentive fee waiver		37,448		90,932
Total operating expenses		37,448		90,932
Net income		2,497		7,459
Net income available to the Company		2,501		7,471
Net loss attributable to common stockholders		$ (600)		$ (1,778)
Loss per weighted average share of common stock - basic & diluted
Loss attributable to common shareholders, basic (in dollars per share)		$ (0.02)		$ (0.05)
Loss attributable to common shareholders, diluted (in dollars per share)		$ (0.02)		$ (0.05)
Comprehensive income
Net income		$ 2,497		$ 7,459
Total comprehensive income available to the Company		9,291		21,131
Adjustments
Operating expenses
Depreciation and amortization		(290)		(393)
Total operating expense before incentive fee waiver		(290)		(393)
Total operating expenses		(290)		(393)
Net income		290		393
Net income available to the Company		290		393
Net loss attributable to common stockholders		$ 290		$ 393
Loss per weighted average share of common stock - basic & diluted
Loss attributable to common shareholders, basic (in dollars per share)		$ 0.01		$ 0.01
Loss attributable to common shareholders, diluted (in dollars per share)		$ 0.01		$ 0.01
Comprehensive income
Net income		$ 290		$ 393
Total comprehensive income available to the Company		$ 290		$ 393

v3.23.3

Revision of Previously Issued Financial Statements - Balance Sheets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
ASSETS
Less: accumulated depreciation	$ 291,986	$ 286,150
Total real estate, net	934,475	1,001,147
Real estate and related assets held for sale	29,350	3,293
TOTAL ASSETS	1,167,156	1,202,633
EQUITY
Distributions in excess of accumulated earnings	(574,113)	(529,104)
TOTAL STOCKHOLDERS' EQUITY	(175,123)	(203,904)
TOTAL EQUITY	176,586	205,694	$ 217,393
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY	$ 1,167,156	1,202,633
As Previously Reported
ASSETS
Less: accumulated depreciation		286,994
Total real estate, net		1,000,303
Real estate and related assets held for sale		3,013
TOTAL ASSETS		1,201,509
EQUITY
Distributions in excess of accumulated earnings		(530,228)
TOTAL STOCKHOLDERS' EQUITY		(202,780)
TOTAL EQUITY		204,570	217,386
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY		1,201,509
Adjustments
ASSETS
Less: accumulated depreciation		(844)
Total real estate, net		844
Real estate and related assets held for sale		280
TOTAL ASSETS		1,124
EQUITY
Distributions in excess of accumulated earnings		1,124
TOTAL STOCKHOLDERS' EQUITY		(1,124)
TOTAL EQUITY		1,124	$ 7
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY		$ 1,124

v3.23.3

Revision of Previously Issued Financial Statements - Changes in Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance			$ 203,904
Stockholders' equity, beginning balance			205,694
Net income	$ 1,792	$ 2,787	370	$ 7,852
Stockholders' equity, ending balance	175,123		175,123
Stockholders' equity, ending balance	176,586	217,393	176,586	217,393
Distributions in Excess of Accumulated Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance	(560,719)	(498,856)	(529,104)	(468,908)
Net income	1,789	2,791	448	7,864
Stockholders' equity, ending balance	(574,113)	(514,050)	(574,113)	(514,050)
Total Stockholders' Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance	182,199	212,338	203,904	200,918
Net income	1,789	2,791	448	7,864
Stockholders' equity, ending balance	$ 175,123	215,455	175,123	215,455
As Previously Reported
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance			202,780
Stockholders' equity, beginning balance			204,570
Net income		2,497		7,459
Stockholders' equity, ending balance		217,386		217,386
As Previously Reported | Distributions in Excess of Accumulated Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance		(498,574)		(468,523)
Net income		2,501		7,471
Stockholders' equity, ending balance		(514,057)		(514,057)
As Previously Reported | Total Stockholders' Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance		212,620		201,303
Net income		2,501		7,471
Stockholders' equity, ending balance		215,448		215,448
Adjustments
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance			1,124
Stockholders' equity, beginning balance			$ 1,124
Net income		290		393
Stockholders' equity, ending balance		7		7
Adjustments | Distributions in Excess of Accumulated Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance		(282)		(385)
Net income		290		393
Stockholders' equity, ending balance		7		7
Adjustments | Total Stockholders' Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance		(282)		(385)
Net income		290		393
Stockholders' equity, ending balance		$ 7		$ 7

v3.23.3

Revision of Previously Issued Financial Statements - Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income	$ 1,792	$ 2,787	$ 370	$ 7,852
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	$ 12,485	15,474	$ 44,125	45,279
As Previously Reported
Cash flows from operating activities:
Net income		2,497		7,459
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		15,764		45,672
Adjustments
Cash flows from operating activities:
Net income		290		393
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		$ (290)		$ (393)

v3.23.3

Subsequent Events - Monthly Distributions Declared by Company's Board of Directors (Details) - Subsequent Event	Oct. 10, 2023 $ / shares
Series E Preferred Stock
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	$ 0.414063
Series E Preferred Stock | Dividend Declared, Period One
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.138021
Series E Preferred Stock | Dividend Declared, Period Two
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.138021
Series E Preferred Stock | Dividend Declared, Period Three
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.138021
Series G Preferred Stock
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.375
Series G Preferred Stock | Dividend Declared, Period One
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.125
Series G Preferred Stock | Dividend Declared, Period Two
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.125
Series G Preferred Stock | Dividend Declared, Period Three
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.125
Senior Common Stock
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.2625
Senior Common Stock | Dividend Declared, Period One
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.0875
Senior Common Stock | Dividend Declared, Period Two
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.0875
Senior Common Stock | Dividend Declared, Period Three
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.0875
Series F Preferred Stock
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.375
Series F Preferred Stock | Dividend Declared, Period One
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.125
Series F Preferred Stock | Dividend Declared, Period Two
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.125
Series F Preferred Stock | Dividend Declared, Period Three
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.125
Common Stock
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.30
Common Stock | Dividend Declared, Period One
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.10
Common Stock | Dividend Declared, Period Two
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	0.10
Common Stock | Dividend Declared, Period Three
Dividends Payable [Line Items]
Distribution per share (in dollars per share)	$ 0.10

v3.23.3

Subsequent Events - Additional Information (Details) $ in Thousands				1 Months Ended	3 Months Ended		9 Months Ended
	Nov. 03, 2023 USD ($) ft² tenant	Oct. 06, 2023 USD ($) ft² tenant	Oct. 02, 2023 USD ($) ft² property	Nov. 06, 2023 USD ($) shares	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) shares	Sep. 30, 2022 USD ($)
Subsequent Event [Line Items]
Gain on sale of real estate, net					$ 4,696	$ 8,902	$ 4,245	$ 8,902
Fixed rate mortgage loans
Subsequent Event [Line Items]
Stated interest rate					4.78%		4.78%
Subsequent Event
Subsequent Event [Line Items]
Number of properties | property			1
Subsequent Event | Fixed rate mortgage loans
Subsequent Event [Line Items]
Net book value of collateralized mortgage properties			$ 9,000
Stated interest rate			4.04%
Gain on extinguishment of debt			$ 2,800
Subsequent Event | Industrial Property | Allentown, Pennsylvania
Subsequent Event [Line Items]
Aggregate Square Footage | ft²		69,920
Payments to acquire real estate		$ 7,800
Number of tenants | tenant		1
Lease term (in years)		20 years
Subsequent Event | Industrial Property | Indianapolis, Indiana
Subsequent Event [Line Items]
Aggregate Square Footage | ft²	67,709
Payments to acquire real estate	$ 4,500
Number of tenants | tenant	1
Lease term (in years)	20 years
Subsequent Event | Medical Office Property | Columbia, South Carolina
Subsequent Event [Line Items]
Aggregate Square Footage | ft²			146,483
Payments to acquire real estate			$ 7,000
Gain on sale of real estate, net			$ 2,900
Series F Preferred Stock | Series A and B Preferred Stock
Subsequent Event [Line Items]
Consideration received							$ 5,200
Redeemable preferred stock, shares issued (in shares) | shares							229,677
Series F Preferred Stock | Series A and B Preferred Stock | Subsequent Event
Subsequent Event [Line Items]
Consideration received				$ 100
Redeemable preferred stock, shares issued (in shares) | shares				4,318

---