Property Portfolio - As of June 30, 2019, the company owned 288 properties with a total of 28.3 million rentable square feet, achieving a leasing rate of 99.6%[268] - The weighted-average remaining lease term for the properties is 8.0 years, with 57.6% located in the U.S. and 42.4% in Europe[268] - The company has a diversified portfolio primarily focused on single tenant net-leased commercial properties[267] - Total square feet of properties acquired since June 30, 2018, amounted to 28,332 thousand square feet across 288 properties[278] - The average remaining lease term for properties in the portfolio was approximately 8.0 years as of June 30, 2019[278] - The company completed multiple acquisitions, including significant properties like Contractors Steel Company with 1,392 thousand square feet[276] Financial Performance - Net income attributable to common stockholders increased to $12.6 million for Q2 2019, up from $5.3 million in Q2 2018, reflecting a significant improvement in profitability[280] - Revenue from tenants rose to $76.1 million in Q2 2019, compared to $71.0 million in Q2 2018, driven by 21 property acquisitions since June 30, 2018[281] - Property operating expenses decreased to $7.0 million in Q2 2019 from $8.2 million in Q2 2018, primarily due to lower insurance costs and real estate taxes[282] - The company recognized a bad debt expense of $0.1 million in Q2 2019, which is now recorded as a reduction to revenue from tenants[281] - Rental income rose to $141.4 million for the six months ended June 30, 2019, compared to $129.4 million in 2018, primarily due to the acquisition of 21 properties since June 30, 2018[304] - The company recognized a net income attributable to common stockholders of $18.4 million for the six months ended June 30, 2019, compared to $7.6 million in 2018[303] Expenses and Costs - Interest expense rose to $15.7 million for the three months ended June 30, 2019, compared to $14.4 million in 2018, attributed to an increase in total debt from $1.7 billion to $1.8 billion[295] - Depreciation and amortization expense increased to $31.1 million for the three months ended June 30, 2019, up from $29.8 million in 2018, mainly due to the acquisition of additional properties[294] - General and administrative expenses decreased to $2.3 million for the three months ended June 30, 2019, down from $2.6 million in 2018[287] - General and administrative expenses increased to $5.5 million for the six months ended June 30, 2019, compared to $4.6 million in the same period of 2018, primarily due to higher professional fees[310] - The company incurred acquisition, transaction, and other costs of $847,000 for the three months ended June 30, 2019, down from $1.114 million in 2018, a decrease of 24%[376] Cash Flow and Financing - Net cash provided by operating activities was $71.2 million for the six months ended June 30, 2019, compared to $71.0 million in the same period of 2018, reflecting net income of $23.6 million adjusted for non-cash items[325][326] - Net cash used in investing activities was $135.5 million for the six months ended June 30, 2019, driven by property acquisitions of $211.0 million, partially offset by net proceeds from asset dispositions of $89.9 million[327][328] - Net cash provided by financing activities was $153.1 million during the six months ended June 30, 2019, primarily from mortgage notes payable of $375.4 million and net proceeds from the issuance of Common Stock of $150.6 million[329] - The company raised $152.8 million from the sale of 7.8 million shares of Common Stock through the ATM Program in January 2019, and has a new equity distribution agreement to raise up to $250.0 million[340] Debt and Leverage - As of June 30, 2019, the company had total debt outstanding of $1.8 billion with a weighted-average interest rate of 3.0%[343] - The company’s debt leverage ratio was 49.4% as of June 30, 2019, with a weighted-average maturity of 4.6 years[347] - The company entered into a Credit Facility Amendment on August 1, 2019, increasing total commitments to $1.235 billion and lowering the interest rate[355] - Following the Credit Facility Amendment, the weighted-average effective interest rate of the Credit Facility was reduced to 2.30%[357] - The company has future scheduled principal payments on mortgage notes of $180.7 million for the year ending December 31, 2019[354] Dividends and Distributions - The company historically paid dividends at an annualized rate of $2.13 per share, changing to quarterly payments starting April 2019[378] - Dividends on Series A Preferred Stock are $0.453125 per share per quarter, equating to 7.25% of the $25.00 liquidation preference per share annually[379] - Total dividends and distributions for the three months ended March 31, 2019, amounted to $45,859,000, with cash flows from operations covering 48.6% of the dividends after preferred stock payments[384] - For the six months ended June 30, 2019, total dividends and distributions were $63,363,000, with cash flows from operations covering 62.8% of the dividends after preferred stock payments[384] Risk Factors - The company may face challenges in raising additional debt or equity financing on attractive terms, impacting future acquisitions[264] - The company is subject to risks associated with international investments, including foreign currency exchange rate fluctuations and compliance with foreign laws[264] - The company may not generate sufficient cash flows to pay dividends or fund operations, potentially leading to unfavorable borrowing[264] - The company is exposed to foreign currency fluctuations and uses derivatives to manage this risk[385] - There has been no material change in market risk exposure during the six months ended June 30, 2019[392]

Property Portfolio - As of March 31, 2019, the company owned 343 properties with a total of 27.4 million rentable square feet, which were 99.5% leased[270] - The weighted-average remaining lease term for the properties was 8.1 years[270] - 55.8% of the properties were located in the U.S. and 44.2% in Europe[270] - Total square footage of the portfolio reached 27,389 thousand square feet as of March 31, 2019[280] - The average remaining lease term across the portfolio was 8.1 years as of March 31, 2019[280] Financial Performance - Revenue from tenants increased to $75.5 million for Q1 2019, up from $68.1 million in Q1 2018, driven by net acquisitions of 16 properties[282] - Property operating expenses decreased slightly to $7.4 million in Q1 2019 from $7.5 million in Q1 2018, primarily related to insurance costs and real estate taxes[283] - Operating fees to related parties rose to $8.0 million in Q1 2019, compared to $6.8 million in Q1 2018, partly due to a $1.0 million increase in Variable Base Management Fee[285] - The company recognized a bad debt expense of $0.1 million in Q1 2019, which is now recorded as a reduction to revenue from tenants[282] - For the three months ended March 31, 2019, net income attributable to common stockholders was $5,791,000, compared to $2,361,000 for the same period in 2018[352] - FFO attributable to common stockholders for Q1 2019 was $36,202,000, an increase from $31,857,000 in Q1 2018, representing a growth of approximately 10.6%[352] - Core FFO attributable to common stockholders for Q1 2019 was $36,464,000, up from $33,103,000 in Q1 2018, indicating a year-over-year increase of about 7.1%[352] - AFFO attributable to common stockholders for Q1 2019 was $39,504,000, compared to $35,081,000 in Q1 2018, reflecting a growth of approximately 12.9%[352] Cash Flow and Dividends - Net cash provided by operating activities was $24.8 million in Q1 2019, down from $40.7 million in Q1 2018, reflecting a decrease in working capital items[302][303] - Dividends paid to common stockholders for Q1 2019 totaled $43,270,000, with cash flows from operations covering 48.6% of this amount after preferred stock dividends[359] - The company anticipates paying future dividends on a quarterly basis, maintaining an annualized rate of $2.13 per share[354] - Cash flows provided by operations for Q1 2019 were $24,751,000, with available cash on hand contributing $23,563,000 to total dividend coverage[359] - The company’s board of directors may alter or suspend dividend payments based on financial conditions and capital expenditure requirements[356] - The company utilized an exception to pay dividends between 95% and 100% of Adjusted FFO during the quarter ended March 31, 2019[357] Debt and Financing - As of March 31, 2019, the company had total debt outstanding of $1.7 billion, with a weighted-average interest rate of 3.0% per annum[319] - The company's debt leverage ratio was 45.8% as of March 31, 2019, based on total debt as a percentage of the total purchase price of real estate investments[322] - The company raised $152.8 million from the sale of 7,759,322 shares of Common Stock through the ATM Program during the three months ended March 31, 2019[316] - The company sold 68,104 shares of Series A Preferred Stock for gross proceeds of $1.7 million during the same period[317] - As of March 31, 2019, 83.7% of the company's total debt bore interest at fixed rates or was swapped to fixed rates[321] - The company has future scheduled principal payments on mortgage notes of $214.5 million for the year ending December 31, 2019, with a weighted average interest rate of 2.4% per year[326] - The company expects to borrow an aggregate of €51.5 million under a loan agreement, with proceeds used to repay outstanding mortgage indebtedness[327] - The Credit Facility had a weighted-average effective interest rate of 2.6% as of March 31, 2019, after considering interest rate swaps[333] - The company had approximately $149.2 million available for future borrowings under the Revolving Credit Facility as of March 31, 2019[335] International Operations and Risks - The company is subject to risks associated with international investments, including foreign laws and currency fluctuations[266] - The company experienced a 6.4% decrease in the average exchange rate for British Pounds Sterling to USD and a 7.6% decrease for Euros to USD compared to the same period last year[282] - The company is exposed to fluctuations in foreign currency exchange rates, particularly with GBP-USD and EUR-USD, and uses derivatives to manage this exposure[360] - International assets and operations are subject to taxation in the foreign jurisdictions where they are held or conducted[363] Advisory and Management Fees - The company may face conflicts of interest due to its executive officers being affiliated with the Advisor and AR Global Investments[266] - The company is obligated to pay substantial fees to the Advisor and its affiliates[266] - The company’s advisory agreement includes a Base Management Fee of $18.0 million per annum, with additional variable fees based on performance[286] - Property management fees increased to $1.4 million for the three months ended March 31, 2019, up from $1.2 million in the same period of 2018, primarily due to the acquisition of 16 properties[287] - General and administrative expenses rose to $3.2 million in Q1 2019 from $2.1 million in Q1 2018, mainly due to higher professional fees[289] Market and Economic Risks - Increases in interest rates could raise the company's debt payments[266] - The company may be unable to maintain or increase cash dividends over time[266] - The company may not be able to identify sufficient property acquisitions that meet its investment objectives[266] - The company may be adversely impacted by inflation on leases without indexed escalation provisions, potentially increasing operating expenses[365] - There has been no material change in the company's exposure to market risk during the three months ended March 31, 2019[368] - There are no off-balance sheet arrangements that materially affect the company's financial condition or results[367] - There were no material changes in the company's contractual obligations as of March 31, 2019, compared to the previous year[361] - The company has elected to be taxed as a REIT and must distribute at least 90% of its REIT taxable income annually to maintain this status[362]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to __________ Commission file number: 001-37390 Global Net Lease, Inc. (Exact name of registrant as specified in its charter) Maryland 45-2771978 (State ...