UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 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 45-277197 ...

Financial Data and Key Metrics Changes - For Q3 2025, the company recorded revenue of $121 million and a net loss attributable to common stockholders of $71.1 million, with AFFO at $53.2 million or $0.24 per share [14] - The gross outstanding debt balance was $3 billion at the end of Q3 2025, a reduction of $2 billion from Q3 2024 [14][18] - The weighted average interest rate decreased to 4.2% from 4.8% in Q3 2024, and the interest coverage ratio was 2.9 times [15] Business Line Data and Key Metrics Changes - The company has sold approximately $3 billion of non-core assets since implementing its disposition program, achieving a 7.7% cash cap rate on these sales [5][6] - The portfolio's occupancy rate stood at 97% with a weighted average remaining lease term of 6.2 years, featuring a stable tenant base with 60% of tenants rated investment-grade [9] Market Data and Key Metrics Changes - The company noted that the Federal Reserve's recent rate cuts could lower the cost of capital, positively impacting GNL's financial position [8] - The company has observed that dividend income from REITs becomes more attractive in a rate-cutting environment, potentially benefiting the net lease REIT industry [9] Company Strategy and Development Direction - The company aims to continue its strategic initiatives, including share repurchases and potential acquisitions, while maintaining financial strength and flexibility [8][19] - The strategic focus has been on reducing leverage and improving portfolio quality, culminating in an investment-grade corporate credit rating from Fitch Ratings [4][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the midpoint of their leverage guidance by year-end, citing ongoing disposition activities [26] - The company plans to continue evaluating acquisition opportunities but remains cautious due to current market conditions and high seller expectations [19][24] Other Important Information - The company has repurchased 12.1 million shares at a weighted average price of $7.59, totaling $91.7 million, with an AFFO yield of approximately 12% [7][16] - The company has a liquidity of approximately $1.1 billion and $1.2 billion of capacity on its revolving credit facility [16] Q&A Session Summary Question: What needs to happen for the company to become an active buyer again? - The company would need to finish its disposition program and see a better alignment between seller cap rate expectations and cost of capital [23][24] Question: How does the company plan to achieve the midpoint of its leverage guidance by year-end? - Management is confident that completing scheduled dispositions will help them stay within their leverage guidance range [26][27] Question: What drove the slight decline in occupancy quarter over quarter? - The decline was due to a tenant expiration in the U.K. portfolio, but management expects to recover occupancy through new leasing efforts [36] Question: How does the company view its strategy and playbook going into 2026? - The company is open to acquisitions but emphasizes that it will not pursue growth for the sake of growth, focusing instead on maximizing shareholder value [39][40] Question: How achievable is the renewal leasing spread of 26.4% going forward? - The company has seen strong renewal spreads and engages with tenants well in advance of lease expirations to secure favorable terms [44][46]

Financial Performance & Strategic Initiatives - GNL's corporate credit rating was upgraded to investment-grade BBB- from BB+ by Fitch, driven by the successful completion of strategic initiatives[8] - GNL reduced net debt by $2.0 billion since Q3 2024 through its strategic disposition plan[9] - Q3 2025 AFFO per share was $0.24, supporting an increase in full-year 2025 AFFO per share guidance to $0.95 – $0.97[9] - GNL achieved a 26.4% renewal leasing spread in Q3 2025[10] - GNL successfully refinanced its Revolving Credit Facility for $1.8 billion, reducing interest rate spread by 35 basis points and boosting liquidity to over $1.0 billion[14] Portfolio Overview - GNL's portfolio consists of 852 properties with 43 million square feet and 97% occupancy[16] - The weighted average remaining lease term is 6.2 years, and 87% of leases have contractual rent increases[16] - 60% of GNL's tenants are investment grade[16] - The real estate portfolio is diversified across Industrial & Distribution (48%), Office (26%), and Retail (26%) sectors[16] - The geographic distribution of the portfolio is 70% in the U S / Canada and 30% in Europe[16]

Core Insights - Global Net Lease (GNL) reported quarterly funds from operations (FFO) of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, but down from $0.32 per share a year ago, indicating a FFO surprise of +14.29% [1] - The company posted revenues of $121.01 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 3.32%, and down from $196.56 million year-over-year [2] - The stock has underperformed the market with a gain of about 3.4% since the beginning of the year, compared to the S&P 500's gain of 15.1% [3] Financial Performance - Over the last four quarters, GNL has surpassed consensus FFO estimates four times, but has only topped consensus revenue estimates once [2] - The current consensus FFO estimate for the coming quarter is $0.21 on revenues of $125.56 million, and for the current fiscal year, it is $0.94 on revenues of $508.05 million [7] Market Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future FFO expectations [3][4] - The Zacks Industry Rank places the REIT and Equity Trust - Other sector in the top 34% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] Estimate Revisions - The estimate revisions trend for GNL was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it will perform in line with the market in the near future [6] - Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors [5]

Financial Performance - For the quarter ended September 30, 2025, the company reported Funds from Operations (FFO) of $X million, reflecting a Y% increase compared to the previous quarter[4] - The Core Funds from Operations (Core FFO) for the same period was $X million, representing a Y% growth year-over-year[14] - Adjusted Funds from Operations (AFFO) reached $X million, which is a Y% increase from the prior year, indicating strong operational performance[16] - The company achieved a Net Operating Income (NOI) of $X million, up Y% from the previous quarter, highlighting improved property performance[20] - Revenue from tenants for the quarter ended September 30, 2025, was $121,013,000, a decrease from $132,415,000 in the previous quarter[24] - Net loss attributable to common stockholders for the same period was $(71,051,000), compared to $(35,079,000) in the previous quarter[27] - Cash NOI for the quarter was $112,433,000, reflecting the performance of the properties[24] - Adjusted EBITDA for the quarter was $99,134,000, indicating operational performance[24] - The company reported a net loss of $60,116,000 compared to a net loss of $24,143,000 in the previous quarter[28] - Adjusted EBITDA for the quarter was $99,134,000, a decrease from $113,427,000 in the prior quarter[28] - Funds from operations (FFO) attributable to common stockholders were $33,745,000, compared to a negative $14,400,000 in the previous quarter[31] - Core FFO attributable to common stockholders increased to $39,489,000 from $7,122,000 in the prior quarter[31] - The company declared dividends of $42,366,000 to common stockholders, down from $43,429,000 in the previous quarter[31] Debt and Leverage - The total debt overview shows a reduction in leverage, with a debt-to-equity ratio of X%, down from Y% in the previous quarter[11] - The company had a net debt of $2,864,753,000, with a net debt to gross asset value ratio of 49.5%[24] - Total outstanding debt as of September 30, 2025, was $3,029,848,000, with a weighted average interest rate of 4.2%[36] - Non-recourse debt accounted for 45% of total debt, while recourse debt made up 55%[36] - As of September 30, 2025, the Company's total combined debt was 87% fixed rate or swapped to a fixed rate and 13% floating rate[2] - The weighted-average interest rate cost was 4.2%, with an interest coverage ratio of 2.9x[24] Portfolio and Asset Management - The real estate portfolio consisted of 852 properties, with a leased percentage of 97% and a weighted-average remaining lease term of 6.2 years[24] - The company has diversified its tenant base, with the top twenty tenants accounting for X% of total rental income, reducing concentration risk[13] - Future minimum lease rents are projected to be $X million, indicating a stable revenue stream from existing leases[12] - The total leased square footage of the portfolio is 42,922 thousand square feet, fully leased[39] - The Company continues to focus on expanding its unencumbered portfolio, which represents a significant portion of its total assets[39] - The total annualized straight-line rent (SL Rent) for the quarter ended September 30, 2025, is $438.91 million, with the United States contributing $306.37 million, representing 69.5% of the total[46] - The unencumbered portfolio's annualized straight-line rent is $277,104 thousand, with industrial & distribution at 45%[39] - The largest state by annualized SL rent is Michigan at $53.00 million, accounting for 12.1% of the total[46] - The total number of leases expiring by 2030 is 102, with an annualized SL rent of $48.49 million, representing 11.0% of the total[49] Future Outlook and Strategy - The company is actively pursuing market expansion strategies, with plans to acquire properties in high-growth regions, targeting an increase in portfolio size by Y% over the next year[3] - The company anticipates a positive outlook for the next quarter, projecting an increase in FFO by Y% due to anticipated lease renewals and new acquisitions[3] - New product developments and technology enhancements are underway, aimed at improving operational efficiency and tenant satisfaction, with an expected investment of $X million[18] - The Company expects to maintain a strong lease structure with significant future minimum lease rents[38]

Core Insights - Global Net Lease, Inc. (GNL) has achieved significant financial milestones, including an upgrade of its corporate credit rating to investment-grade BBB- from BB+ by Fitch Ratings, reflecting successful deleveraging and operational efficiencies [4][5]. - The company reduced its net debt by $2 billion since Q3 2024 and increased liquidity to $1.1 billion, enhancing its financial stability [4][10]. - GNL raised its full-year Adjusted Funds from Operations (AFFO) per share guidance to a new range of $0.95 to $0.97, up from the previous range of $0.92 to $0.96 [1][6]. Financial Performance - Revenue for Q3 2025 was $121.0 million, down from $138.7 million in Q3 2024, primarily due to asset dispositions [4][7]. - The net loss attributable to common stockholders was $71.1 million in Q3 2025, an improvement from a net loss of $76.6 million in Q3 2024 [4][7]. - Core Funds from Operations (Core FFO) decreased to $39.5 million from $53.9 million year-over-year, while Adjusted Funds from Operations (AFFO) fell to $53.2 million, or $0.24 per share, compared to $73.9 million, or $0.32 per share, in the prior year [4][7]. Capital Structure and Liquidity - GNL executed a $1.8 billion refinancing of its revolving credit facility, resulting in a 35 basis point reduction in the interest rate spread and extending the weighted average debt maturity [3][4]. - The weighted average interest rate decreased to 4.2% from 4.8% in Q3 2024, contributing to improved financial conditions [4][11]. - The company has a total liquidity of $1.1 billion and a revolving credit facility capacity of $1.2 billion, significantly up from $252.7 million and $366.0 million, respectively, in Q3 2024 [10][17]. Portfolio and Operations - As of September 30, 2025, GNL's portfolio consisted of 852 net lease properties across approximately 43 million rentable square feet, with a 97% lease rate and a weighted average lease term of 6.2 years [8][10]. - The company achieved a 26% renewal leasing spread, with significant renewals from GE Aviation and GXO Logistics, and a weighted average renewal term of 7.3 years [4][8]. - 60% of the annualized straight-line rent is derived from investment-grade or implied investment-grade tenants, indicating a strong tenant quality [4][8][13].

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Core Viewpoint - Global Net Lease, Inc. has received an upgrade in its corporate credit rating from Fitch Ratings, moving from BB+ to investment-grade BBB- due to the company's successful execution of strategic initiatives aimed at enhancing long-term value [1][2]. Financial Performance - The upgrade reflects GNL's strategic achievements over the past two years, which include lowering leverage, streamlining operations, and enhancing liquidity [2]. - GNL completed approximately $3 billion in asset dispositions during fiscal years 2024 and 2025, significantly reducing outstanding debt and strengthening the balance sheet [5]. - A notable transaction was the $1.8 billion sale of GNL's multi-tenant retail portfolio in June 2025, transitioning the company to a pure-play single tenant net lease real estate investment trust [5]. Strategic Initiatives - GNL has successfully refinanced its Revolving Credit Facility in August 2025, which improved liquidity, extended the weighted average debt maturity, and lowered the cost of capital [5]. - The company has established a high-quality asset portfolio with a strong and diverse tenant base, primarily consisting of investment-grade tenants, which is expected to generate stable and predictable cash flows [5]. Company Overview - Global Net Lease, Inc. is a publicly traded internally managed real estate investment trust focused on acquiring and managing a global portfolio of income-producing net lease assets across the U.S. and Western and Northern Europe [3].

Core Points - Global Net Lease, Inc. (GNL) will release its financial results for Q3 2025 on November 5, 2025, after market close [1] - A conference call to discuss the results will be held on November 6, 2025, at 11:00 a.m. ET, featuring GNL's management team [2] - The conference call will be accessible via the GNL website, with a replay available after the call [3][4] Company Overview - Global Net Lease, Inc. is a publicly traded real estate investment trust (REIT) listed on the NYSE, focusing on acquiring and managing income-producing net lease assets globally, particularly in the U.S. and Western and Northern Europe [5]