Core Viewpoint - Global Net Lease, Inc. has received a credit rating upgrade from S&P Global, reflecting the positive impact of its recent $1.8 billion multi-tenant portfolio sale, which significantly reduced its debt [1][2][3]. Group 1: Credit Rating Upgrade - S&P Global upgraded Global Net Lease's corporate credit rating to BB+ from BB [1]. - The issue-level rating on GNL's unsecured notes was raised to investment-grade BBB- from BB+ [1]. Group 2: Portfolio and Financial Strength - The sale of the multi-tenant portfolio has resulted in a streamlined portfolio characterized by diversified, long-term triple-net leases, a broad tenant base, minimal near-term lease expirations, and high occupancy [2]. - The CEO of GNL emphasized that the credit rating upgrade validates the company's efforts to strengthen its balance sheet and portfolio through a disciplined capital strategy aimed at enhancing shareholder value [3]. Group 3: Future Commitments - The company is committed to further improving its financial position by continuing to reduce leverage and lower its cost of capital [3].

Core Insights - Global Net Lease, Inc. (GNL) has completed the final phase of its multi-tenant portfolio sale, generating approximately $313 million in gross proceeds, bringing the total to $1.8 billion [1][2] - The sale simplifies GNL's portfolio, transitioning it to a pure-play net lease owner and operator, expected to yield approximately $6.5 million in recurring annual G&A savings [2][3] - The CEO of GNL emphasized that divesting multi-tenant assets has strengthened the company's balance sheet and improved liquidity, with a focus on achieving an investment-grade credit rating [3] Financial Impact - The third phase of the portfolio sale generated $313 million, contributing to a total of $1.8 billion from the entire portfolio sale [1] - GNL plans to use the net proceeds to reduce leverage by paying down the outstanding balance on its Revolving Credit Facility [1] - The transition to a single-tenant net lease model is expected to create significant operational efficiencies and reduce annual capital expenditures [2] Strategic Focus - The completion of the multi-tenant portfolio sale marks GNL's evolution into a pure-play single-tenant net lease company, enhancing operational streamlining and portfolio quality [3] - The company aims to lower its cost of capital and increase financial stability through improved credit ratings [3] - GNL's strategic focus is on acquiring and managing income-producing net lease assets across the U.S. and Europe [4]

Core Viewpoint - Global Net Lease, Inc. (GNL) is successfully executing a multi-phase sale of its multi-tenant portfolio, with the second phase generating approximately $400 million in gross proceeds, and is on track to complete the final phase by the end of Q2 2025 [1][2][3]. Group 1: Sale Details - The second phase of the sale included 28 encumbered properties and closed on June 10, 2025, generating approximately $400 million in gross proceeds [1]. - The first phase of the multi-tenant portfolio sale was completed in March 2025, generating approximately $1.1 billion in gross proceeds [3]. Group 2: Future Plans - GNL plans to complete the third and final phase of the sale, consisting of 12 encumbered properties, by the end of Q2 2025 [2]. - The net proceeds from the final two phases are expected to be used to reduce leverage by paying down the outstanding balance on GNL's Revolving Credit Facility [2]. Group 3: Strategic Goals - The CEO of GNL emphasized that the sale is part of a strategic plan to lower leverage, transform to a dedicated single-tenant portfolio, and reinforce the company's balance sheet while maintaining strong liquidity [3]. - The company aims to leverage the financial flexibility created through these sales to support long-term growth and strengthen its capital structure [3]. Group 4: 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 [4].

Core Viewpoint - Global Net Lease, Inc. has appointed Robert Kauffman as Non-Executive Chairperson of its Board of Directors, succeeding Sue Perrotty, who will remain on the Board as an independent director [1][3]. Group 1: Leadership Changes - Robert Kauffman, a Co-Founder and former member of the Board of Directors of Fortress Investment Group, joined the GNL Board in March 2024 [2]. - Michael Weil, CEO of GNL, expressed excitement about Kauffman's appointment, highlighting his active role in strategic initiatives and extensive experience in real estate and capital markets [3]. - Kauffman acknowledged the importance of his new role and emphasized GNL's efforts to streamline its portfolio and enhance financial flexibility [4]. Group 2: Company Overview - Global Net Lease, Inc. is a publicly traded internally managed real estate investment trust focusing on acquiring and managing a global portfolio of income-producing net lease assets across the U.S. and Western and Northern Europe [4].

Property Sales and Dispositions - The company completed the sale of 59 multi-tenant retail properties for approximately $1.780 billion, with the remaining properties expected to close in two additional phases during Q2 2025[220]. - The company has entered into purchase and sale agreements and non-binding letters of intent totaling $188.8 million for property dispositions[268]. - During the three months ended March 31, 2025, the company sold 16 properties for an aggregate contract price of $24.1 million[271]. - Subsequent to March 31, 2025, the company disposed of 46 properties for an aggregate price of $96.3 million[273]. Financial Performance - For the three months ended March 31, 2025, the net loss attributable to common stockholders was $200.3 million, compared to $34.7 million for the same period in 2024[229]. - Total consolidated revenue from tenants for Q1 2025 was $132.4 million, down from $147.9 million in Q1 2024, primarily due to revenue losses from dispositions[230]. - Revenue from the Industrial & Distribution segment decreased to $58.0 million in Q1 2025 from $62.0 million in Q1 2024, attributed to a loss of approximately $3.9 million from property dispositions[231]. - Revenue from the Retail segment fell to $37.0 million in Q1 2025 from $42.6 million in Q1 2024, primarily due to a loss of approximately $4.8 million from dispositions[232]. - The Office segment saw an increase in revenue to $37.4 million in Q1 2025 from $35.1 million in Q1 2024, driven by higher revenue from properties owned in both periods[234]. Operating Expenses - Total consolidated property operating expenses for Q1 2025 were $13.9 million, down from $17.8 million in Q1 2024[235]. - Property operating expenses in the Industrial & Distribution segment increased to $5.3 million in Q1 2025 from $4.6 million in Q1 2024, while Retail segment expenses decreased to $3.9 million from $5.1 million[236][237]. - General and administrative expenses increased to $16.2 million for the three months ended March 31, 2025, up from $14.7 million in the same period of 2024[242]. - Equity-based compensation expense rose to $3.1 million for the three months ended March 31, 2025, compared to $2.0 million for the same period in 2024[243]. Impairment Charges - The company recorded an impairment charge of approximately $60.3 million for 69 properties during the three months ended March 31, 2025[239]. - The company incurred impairment charges of $60,315 thousand in Q1 2025, significantly higher than the $4,327 thousand recorded in Q1 2024[299]. Cash Flow and Financing Activities - The company reported a net cash provided by operating activities of $59.2 million for the three months ended March 31, 2025, compared to $92.2 million in 2024[261][262]. - Net cash provided by investing activities was $900.7 million for the three months ended March 31, 2025, primarily from net proceeds of $910.5 million from property dispositions[263]. - Net cash used in financing activities was $975.6 million for the three months ended March 31, 2025, resulting from net paydowns of borrowings and dividend payments[265]. - The company had outstanding borrowings under its Revolving Credit Facility of $547.4 million as of March 31, 2025, down from $1.4 billion as of December 31, 2024[282]. Debt and Leverage - As of March 31, 2025, total gross debt outstanding was $3.9 billion, with a weighted-average interest rate of 4.4%[276]. - The debt leverage ratio was 62.3% as of March 31, 2025[278]. - Interest expense decreased to $53.4 million for the three months ended March 31, 2025, down from $64.6 million in 2024, attributed to lower gross debt outstanding of $3.4 billion[249]. Dividend Information - The Board approved a reduction in the Common Stock dividend rate to an annual rate of $0.76 per share, effective from April 2025, down from $1.10 per share[305]. - Total dividends paid to common stockholders for Q1 2025 amounted to $63,942 thousand, with cash flows from operations contributing $59,167 thousand, representing 79.0% of the total[311]. - Cash generated from operations covered 79% of dividends paid during the three months ended March 31, 2025[268]. REIT Status and Taxation - The company elected to be taxed as a REIT effective for the taxable year ended December 31, 2013[313]. - To maintain REIT status, the company must distribute at least 90% of its REIT taxable income annually[313]. - The company is not subject to federal corporate income tax on distributed REIT taxable income if it continues to qualify as a REIT[313]. - The company may still be subject to certain state and local taxes on its income and properties[313]. - The company must comply with various organizational and operational requirements to maintain REIT status[313].

Financial Data and Key Metrics Changes - For Q1 2025, the company recorded revenue of $132.4 million and a net loss attributable to common stockholders of $200.3 million, which is expected to improve significantly upon closing the remainder of the multi-tenant portfolio sale [19][20] - The gross outstanding debt balance was $3.9 billion at the end of Q1 2025, down by $1.3 billion from the end of Q1 2024 [20] - The net debt to adjusted EBITDA ratio was 6.7 times at the end of Q1 2025, improved from 8.4 times at the end of Q1 2024 [21] Business Line Data and Key Metrics Changes - The company achieved a milestone with the signing of a definitive agreement for the sale of its multi-tenant portfolio, generating $1.1 billion in gross proceeds from the first phase, which included 59 unencumbered properties [8] - The portfolio's occupancy stood at 95% at the end of Q1 2025, with a weighted average remaining lease term of 6.3 years [12] - Following the departure of Contractor Steel, the company sold five vacant properties for a combined $60 million, which helped minimize vacancy downtime [13] Market Data and Key Metrics Changes - Geographically, 76% of straight-line rent is earned in North America and 24% in Europe, providing diversification across economic cycles [15] - The portfolio features a stable tenant base, with 60% of tenants receiving an investment grade or implied investment grade rating [15] Company Strategy and Development Direction - The company is focused on reducing leverage and enhancing financial flexibility, with a goal of achieving an investment grade credit rating [5][9] - A $300 million share repurchase program was approved, with 7.9 million shares repurchased at a weighted average price of $7.5, reflecting a strategic approach to capitalize on undervalued stock [11] - The company is strategically scaling back its exposure to the gas and convenience store sector, reallocating capital toward higher growth sectors [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility and highlighted the importance of a strong balance sheet for future growth [5][24] - The company reaffirmed its AFFO per share guidance range of $0.90 to $0.96 for 2025, indicating a positive outlook despite current market conditions [23] Other Important Information - The company has a closed plus disposition pipeline totaling $2.1 billion, with total asset sales expected to reach nearly $3 billion by the end of 2025 [9][10] - The weighted average interest rate on debt stood at 4.4%, with an interest coverage ratio of 2.5 times [20] Q&A Session Summary Question: Can you break down the remaining $300 million in the disposition pipeline by sector or geography? - Management indicated that the remaining pipeline consists of non-core dispositions identified since the end of 2024, continuing the deleveraging strategy [29][30] Question: How will market volatility impact asset sales and pricing? - Management believes there will still be opportunities to sell assets, leveraging relationships with local brokers to navigate the market [31][32] Question: Is the 12% AFFO yield the hurdle rate for future buybacks? - Management expressed satisfaction with the current buyback execution and indicated that they will continue to monitor AFFO accretion for future buybacks [33][34] Question: What is the capital allocation strategy regarding share buybacks versus debt repayment? - Management emphasized a focus on reducing leverage and opportunistic share buybacks, while also maintaining a disciplined approach to capital allocation [40][41] Question: Can you share insights on credit rating upgrades and potential savings? - Management noted that conversations with credit agencies are confidential but acknowledged the positive credit watch status and the long-term goal of accessing investment grade debt opportunities [46][47] Question: What types of dispositions are being targeted moving forward? - Management mentioned looking at retail opportunities and continuing to evaluate the portfolio for potential sales, particularly in the gas and convenience store sector [49][50] Question: Did Contractor Steel pay any rent in Q1? - Management confirmed that Contractor Steel did not pay any rent in Q1 [78] Question: How should investors think about the run rate for AFFO in the back half of the year? - Management explained that the income statement already accounts for discontinued operations related to the multi-tenant portfolio, and they expect a decrease in G&A expenses due to the sale [82] Question: Are there more vacant assets available for future proceeds? - Management indicated that after the completion of the multi-tenant sale, the portfolio would be nearly 98% occupied, suggesting limited future vacant asset sales [86]

Financial Data and Key Metrics Changes - For Q1 2025, the company recorded revenue of $132.4 million and a net loss attributable to common stockholders of $200.3 million, which is expected to improve significantly upon closing the remainder of the multi-tenant portfolio sale [19][20] - AFFO was reported at $66.2 million or $0.29 per share [19] - The gross outstanding debt balance decreased by $1.3 billion from Q1 2024 to $3.9 billion at the end of Q1 2025 [20] - The net debt to adjusted EBITDA ratio improved from 8.4 times in Q1 2024 to 6.7 times in Q1 2025 [20] Business Line Data and Key Metrics Changes - The company completed the first phase of the multi-tenant portfolio sale, generating $1.1 billion in gross proceeds from 59 unencumbered properties, with net proceeds used to pay down $850 million on the revolving credit facility [7][9] - The portfolio's occupancy rate was reported at 95%, with a pro forma occupancy of 98% after selling five vacant properties for $60 million [12][13] - The weighted average remaining lease term for the portfolio is 6.3 years, with an average annual rent increase of 1.5% [6][12] Market Data and Key Metrics Changes - Geographically, 76% of straight-line rent is earned in North America and 24% in Europe, providing diversification across economic cycles [14] - The tenant base is stable, with 60% of tenants receiving an investment grade or implied investment grade rating [14] Company Strategy and Development Direction - The company aims to achieve an investment grade credit rating as part of its strategy to reduce the cost of capital and enhance financial stability [8][9] - A $300 million share repurchase program was approved, with 7.9 million shares repurchased at a weighted average price of $7.5, reflecting a strategic approach to capitalize on undervalued stock [11] - The company is strategically reducing exposure to the gas and convenience store sector, reallocating capital towards higher growth sectors [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility and highlighted the importance of a strong balance sheet for future growth [5][10] - The company reaffirmed its AFFO per share guidance range of $0.90 to $0.96 for 2025, indicating a positive outlook despite current market uncertainties [22] Other Important Information - The company has a robust pipeline of non-core dispositions totaling $2.1 billion, contributing to deleveraging efforts [9] - The weighted average interest rate on debt is 4.4%, with an interest coverage ratio of 2.5 times [20] Q&A Session Summary Question: Can you break down the remaining $300 million in the disposition pipeline by sector or geography? - Management indicated that the remaining dispositions are part of ongoing efforts to reduce leverage and are identified as non-core assets [28] Question: How will market volatility impact your ability to sell or pricing? - Management believes there will continue to be opportunities to sell assets, leveraging relationships with local brokers [29][30] Question: Is the 12% AFFO yield the hurdle rate for future buybacks? - Management expressed satisfaction with the current buyback execution and indicated that they will continue to monitor AFFO accretion [31][32] Question: What is the strategy for capital allocation regarding share buybacks, debt repayment, and future asset purchases? - Management emphasized a focus on reducing leverage and opportunistic share buybacks, while being cautious about new asset purchases [37][40] Question: Can you share insights on credit rating upgrades and potential savings? - Management noted that conversations with credit agencies are confidential but acknowledged the positive credit watch status [44][45] Question: What types of dispositions are being targeted moving forward? - Management mentioned looking at retail and office opportunities for future dispositions, while maintaining a focus on long-term goals [47][48] Question: Did Contractors Steel pay any rent in Q1? - Management confirmed that Contractors Steel did not pay rent in the first quarter [71] Question: How should we think about the run rate for AFFO in the back half of the year? - Management indicated that the income statement already accounts for the multi-tenant portfolio sale and expects a decrease in G&A expenses due to the sale [75] Question: Are there more vacant assets available for future proceeds? - Management stated that after the completion of the multi-tenant sale, the portfolio will be nearly 98% occupied, indicating limited vacancy left [81]

Strategic Transaction & Portfolio Transformation - GNL successfully closed Phase I of the Multi-Tenant Portfolio Sale in Q1 2025, generating $1.1 billion from 59 unencumbered properties[39] - The Multi-Tenant Portfolio represented 28% of Total GNL SLR before the disposition[14] - The transaction transforms GNL into a pure-play net lease REIT, with a pro-forma asset diversification of 100% single-tenant properties[17] - The strategic sale is expected to reduce annual Capex from $46 million to $10 million[19] Leverage & Liquidity - The transaction is projected to reduce Net Debt / Adj EBITDA by 0.8x[23] - The transaction is projected to increase liquidity by over $1 billion[23] - GNL reduced net debt by $833 million in Q1'25, lowering Net Debt to Adjusted EBITDA to 6.7x[40] - Liquidity totaled $499 million in Q1'25[42] Portfolio Metrics & Performance - The pro-forma % Leased is expected to increase by 100 bps to 98%[19] - The pro-forma NOI Margin is expected to increase by 700 Bps to 89%[19] - 60% of SLR is derived from Investment Grade Tenants[57]

[Financial Performance & Position](index=6&type=section&id=Financial%20Performance%20%26%20Position) This section provides an overview of the company's financial results, balance sheet, and key performance indicators for the reporting period [Key Metrics](index=6&type=section&id=Key%20Metrics) The company reported a net loss and specific AFFO for Q1 2025, alongside key portfolio and leverage statistics - **Q1 2025 Key Financial and Portfolio Metrics** | Metric | Value | | :--- | :--- | | **Financial Results** | | | Revenue from tenants | $132.4 million | | Net loss attributable to common stockholders | $(200.3) million | | Basic and diluted net loss per share | $(0.87) | | AFFO attributable to common stockholders | $66.2 million | | Adjusted EBITDA | $138.4 million | | **Balance Sheet & Capitalization** | | | Gross asset value | $6.81 billion | | Net debt | $3.72 billion | | Net debt to annualized adjusted EBITDA | 6.7x | | Weighted-average interest rate cost | 4.2% | | **Real Estate Portfolio** | | | Number of properties | 1,045 | | Leased percentage | 95% | | Weighted-average remaining lease term | 6.3 years | - The quarterly dividend per share was **$0.275** for Q1 2025, with a new annualized rate of **$0.76** commencing in Q2 2025[25](index=25&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) The company's Q1 2025 financial statements reflect a significant net loss and a decrease in total assets due to impairment and discontinued operations [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) The Q1 2025 statement of operations shows a net loss primarily driven by impairment charges and discontinued operations - **Q1 2025 Statement of Operations (in thousands)** | Account | Q1 2025 | | :--- | :--- | | Revenue from tenants | $132,415 | | Total expenses | $158,611 | | *Impairment charges* | *$60,315* | | *Goodwill impairment* | *$7,134* | | Operating loss | $(27,874) | | Loss from continuing operations | $(95,168) | | Loss from discontinued operations | $(94,211) | | **Net loss** | **$(189,379)** | | **Net loss attributable to common stockholders** | **$(200,315)** | | **Net loss per share** | **$(0.87)** | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2025, indicates a reduction in total assets and liabilities, largely due to discontinued operations - **Balance Sheet Comparison (in thousands)** | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total real estate investments, net | $4,362,187 | $4,622,033 | | Assets related to discontinued operations | $670,483 | $1,816,131 | | **Total Assets** | **$5,789,334** | **$6,955,764** | | Revolving credit facility | $547,406 | $1,390,292 | | Liabilities related to discontinued operations | $495,515 | $551,818 | | **Total Liabilities** | **$3,873,782** | **$4,768,806** | | **Total Equity** | **$1,915,552** | **$2,186,958** | [Reconciliation of Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section reconciles GAAP net loss to key non-GAAP metrics, including Adjusted EBITDA, FFO, and AFFO - **Reconciliation to Adjusted EBITDA and Cash NOI (Q1 2025, in thousands)** | Metric | Amount | | :--- | :--- | | Net loss | $(189,379) | | Adjustments (Depreciation, Interest, Taxes, Impairments, etc.) | +$327,795 | | **Adjusted EBITDA** | **$138,416** | | Further Adjustments (G&A, etc.) | +$17,458 | | **NOI** | **$155,874** | | Non-cash rent adjustments | $(5,075) | | **Cash NOI** | **$150,799** | - **Reconciliation to FFO and AFFO (Q1 2025, in thousands)** | Metric | Amount | | :--- | :--- | | Net loss attributable to common stockholders | $(200,315) | | Adjustments (Depreciation, Impairments, etc.) | +$233,276 | | **FFO attributable to common stockholders** | **$32,961** | | Core Adjustments (Merger costs, etc.) | +$1,998 | | **Core FFO attributable to common stockholders** | **$34,967** | | Further Adjustments (Straight-line rent, non-cash items, etc.) | +$31,253 | | **AFFO attributable to common stockholders** | **$66,220** | [Debt & Lease Profile](index=11&type=section&id=Debt%20%26%20Lease%20Profile) This section details the company's debt structure, maturity schedule, and future minimum lease obligations [Debt Overview](index=11&type=section&id=Debt%20Overview) The company's debt profile as of March 31, 2025, includes total debt, weighted-average maturity, and interest rate characteristics - **Debt Maturity Schedule (as of March 31, 2025)** | Year of Maturity | Total Outstanding Balance (in thousands) | Percent | | :--- | :--- | :--- | | 2025 (remainder) | $458,982 | 13.5% | | 2026 | $653,020 | 19.2% | | 2027 | $663,191 | 19.5% | | 2028 | $819,505 | 24.1% | | 2029 | $663,313 | 19.5% | | Thereafter | $140,061 | 4.1% | | **Total Debt** | **$3,398,072** | **100%** | - As of March 31, 2025, **91.4%** of the company's total combined debt was fixed-rate or swapped to a fixed rate, with the remaining **8.6%** being floating rate[38](index=38&type=chunk) [Future Minimum Lease Rents](index=12&type=section&id=Future%20Minimum%20Lease%20Rents) The company's future minimum base rent payments total approximately $3.57 billion under existing lease agreements - **Future Minimum Base Rent Payments (in thousands)** | Period | Amount | | :--- | :--- | | 2025 (remainder) | $379,983 | | 2026 | $483,542 | | 2027 | $435,471 | | 2028 | $396,052 | | 2029 | $333,207 | | 2030 | $259,435 | | Thereafter | $1,280,677 | | **Total** | **$3,568,367** | [Portfolio Analysis](index=13&type=section&id=Portfolio%20Analysis) This section analyzes the company's real estate portfolio by diversification, top tenants, and lease expiration schedule [Portfolio Diversification](index=13&type=section&id=Portfolio%20Diversification) The company's portfolio exhibits diversification across property types, tenant industries, and geographic regions [Diversification by Property Type](index=13&type=section&id=Diversification%20by%20Property%20Type) The portfolio is primarily concentrated in Industrial & Distribution properties, followed by Retail and Office segments - **Portfolio by Property Type (Based on Annualized SL Rent)** | Property Type/Segment | SL Rent Percent | Sq. ft. Percent | | :--- | :--- | :--- | | Industrial & Distribution | 40% | 62% | | Retail | 25% | 14% | | Office | 22% | 13% | | Multi-Tenant Retail Portfolio | 13% | 11% | | **Total** | **100%** | **100%** | [Diversification by Tenant Industry](index=14&type=section&id=Diversification%20by%20Tenant%20Industry) The tenant base is diversified across various industries, with no single industry dominating the annualized straight-line rent - **Top 5 Tenant Industries (Based on Annualized SL Rent)** | Industry Type | SL Rent Percent | | :--- | :--- | | Financial Services | 8% | | Auto Manufacturing | 8% | | Gas/Convenience | 5% | | Healthcare | 5% | | Freight | 5% | [Diversification by Geography](index=16&type=section&id=Diversification%20by%20Geography) The portfolio's geographic exposure is concentrated in the United States, with significant international presence in the United Kingdom - **Geographic Diversification (Based on Annualized SL Rent)** | Region | SL Rent Percent | | :--- | :--- | | United States | 75.9% | | United Kingdom | 12.1% | | Netherlands | 3.2% | | Finland | 2.5% | | Germany | 1.9% | | Other | 4.4% | | **Total** | **100%** | [Top Twenty Tenants](index=15&type=section&id=Top%20Twenty%20Tenants) The top 20 tenants represent a moderate concentration of the portfolio's annualized straight-line rent - **Top 5 Tenants by Annualized SL Rent** | Tenant / Lease Guarantor | SL Rent Percent | | :--- | :--- | | FedEx | 4.3% | | Imperial Reliance, LLC | 4.2% | | McLaren | 3.7% | | Whirlpool | 2.7% | | Government Services Administration (GSA) | 2.2% | - The top 20 tenants collectively account for **38.6%** of the total portfolio's annualized straight-line rent[47](index=47&type=chunk) [Lease Expirations](index=17&type=section&id=Lease%20Expirations) The company maintains a staggered lease expiration schedule, with a weighted-average remaining lease term of 6.3 years - **Lease Expiration Schedule by Annualized SL Rent** | Year of Expiration | Annualized SL Rent Percent | | :--- | :--- | | 2025 (Remainder) | 5.6% | | 2026 | 8.1% | | 2027 | 8.1% | | 2028 | 11.0% | | 2029 | 13.3% | | 2030 | 10.7% | | Thereafter (>2030) | 43.2% | [Non-GAAP Financial Measures Definitions](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) This section defines the non-GAAP financial measures used by the company to assess its operational performance [Overview of Non-GAAP Measures](index=3&type=section&id=Overview%20of%20Non-GAAP%20Measures) The company utilizes various non-GAAP measures to provide a clearer view of operating performance, complementing GAAP results - The primary non-GAAP measures used are **Funds from Operations (FFO)**, **Core FFO**, **Adjusted Funds from Operations (AFFO)**, **Adjusted EBITDA**, **Net Operating Income (NOI)**, and **Cash NOI**[4](index=4&type=chunk) - These non-GAAP measures should not be considered more relevant than GAAP methodology, and comparability with other REITs may be limited due to differing calculations[5](index=5&type=chunk)[6](index=6&type=chunk) [FFO, Core FFO, and AFFO](index=3&type=section&id=FFO%2C%20Core%20FFO%2C%20and%20AFFO) This section details the calculation and purpose of FFO, Core FFO, and AFFO as key performance indicators - **FFO** is defined according to NAREIT standards, excluding real estate-related depreciation, amortization, and gains/losses from property sales[10](index=10&type=chunk) - **Core FFO** adjusts FFO by excluding non-core items such as merger, transaction, and debt extinguishment costs[14](index=14&type=chunk) - **AFFO** further refines Core FFO by excluding non-cash items like straight-line rent and amortization of lease intangibles to reflect recurring operational performance[16](index=16&type=chunk)[17](index=17&type=chunk) [Adjusted EBITDA, NOI, and Cash NOI](index=5&type=section&id=Adjusted%20EBITDA%2C%20NOI%2C%20and%20Cash%20NOI) This section defines Adjusted EBITDA, NOI, and Cash NOI, highlighting their roles in assessing debt service capacity and property-level performance - **Adjusted EBITDA** is used as a measure of the company's ability to incur and service debt[18](index=18&type=chunk) - **NOI** is a property-level performance measure reflecting income and expense items incurred at the property, excluding corporate-level costs[20](index=20&type=chunk) - **Cash NOI** adjusts NOI by excluding non-cash revenues such as straight-line rent adjustments and amortization of lease intangibles[21](index=21&type=chunk)

Core Insights - Global Net Lease, Inc. (GNL) successfully closed the first phase of a multi-tenant portfolio sale, generating $1.1 billion in gross proceeds and is on track to complete the remaining phases by the end of Q2 2025 [1][5] - The company reduced its net debt by $833 million in Q1 2025, improving its net debt to adjusted EBITDA ratio to 6.7x [1][9] - GNL repurchased 7.9 million shares at an average price of $7.50, totaling $59 million as of May 2, 2025 [1][18] - The company reaffirmed its 2025 guidance for adjusted funds from operations (AFFO) per share in the range of $0.90 to $0.96 and net debt to adjusted EBITDA between 6.5x and 7.1x [6] Financial Performance - Revenue for Q1 2025 was $132.4 million, down from $147.9 million in Q1 2024, primarily due to asset dispositions [5][31] - The net loss attributable to common stockholders was $200.3 million in Q1 2025, compared to a net loss of $34.7 million in Q1 2024, largely due to the timing and purchase price allocation related to the multi-tenant portfolio sale [5][31] - Core Funds from Operations (Core FFO) for Q1 2025 was $35.0 million, down from $56.6 million in Q1 2024 [5][31] - Adjusted Funds from Operations (AFFO) was $66.2 million, or $0.29 per share, compared to $75.0 million, or $0.33 per share in Q1 2024 [5][31] Portfolio and Asset Management - As of March 31, 2025, GNL's portfolio consisted of 1,045 net lease properties across ten countries, totaling 51.3 million rentable square feet [8] - The company has a closed plus disposition pipeline totaling $2.1 billion at a cash cap rate of 8.3% and a weighted average lease term of 5.2 years [5][13] - 60% of annualized straight-line rent comes from investment-grade or implied investment-grade tenants, indicating a strong tenant quality [10][5] Capital Structure and Liquidity - GNL had liquidity of $499.1 million and $1.4 billion of capacity under its revolving credit facility as of March 31, 2025 [9] - The company successfully reduced its net debt by $1.5 billion since Q1 2024, including the recent $833.2 million reduction [5][9] - The weighted average interest rate on total combined debt was 4.2%, with 91% of the debt being fixed rate [10][9]