GOOD

Judge GOOD as a REIT, not on the headline 90x P/E — that ratio divides price by a $0.14 diluted EPS that is depressed by $58.2M of non-cash depreciation, the wrong lens for a net-lease landlord. On cash the picture is far better: FY2025 operating cash flow jumped 54.8% to $88.2M, revenue rose 8.0% to $161M, and the MD&A reports 99.1% occupancy across 151 properties in 27 states with 100% of 2025 base rent collected. Management's deliberate pivot to industrial is landing in a supportive tape — Cushman data cited in the filing shows a second straight quarter of >50M sq ft net absorption and the lowest new-supply deliveries in eight years — and the Fed's 75bps of Q4 cuts eases the refinancing overhang. Dividends paid of $68.2M against $88.2M of operating cash flow is roughly a 77% cash payout, and the ~$1.41/share distribution is an ~11% yield, the core reason to own this name.

The brakes are real and structural. This is a highly leveraged, externally-advised REIT: liabilities are 5.27x equity, long-term debt grew 21.6% to $843M while equity was flat, and cash is a thin $10.8M. The unsecured notes carry a 6.22% weighted rate and the mortgage book has just a 2.5-year weighted average term — meaning a chunk of debt reprices soon, and the December private placement came at 5.99%, above the old book. Growth is being funded partly by dilution: shares outstanding rose 9.5%, which is why net income fell 19.6% and EPS dropped 48% even as revenue grew. The Risk Factors dwell on tenant credit and bankruptcy exposure — sale-leaseback re-characterization, capped unsecured claims — appropriate for a landlord whose tenants are largely unrated private companies.