Global Net Lease(GNL)

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Should Value Investors Buy Global Net Lease (GNL) Stock?
zacks.com· 2024-05-29 14:46
GNL is also sporting a PEG ratio of 0.90. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GNL's PEG compares to its industry's average PEG of 1.93. Over the past 52 weeks, GNL's PEG has been as high as 1.21 and as low as 0.73, with a median of 0.94. Another valuation metric that we should highlight is GNL's P/B ratio of 0.68. The P/B is a method of comparing a stock's market value to its book value, which is defined ...
Global Net Lease(GNL) - 2024 Q1 - Quarterly Report
2024-05-08 20:16
650 Fifth Ave., 30th Floor, New York, NY 10019 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 March 31, 2024 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 s ...
Global Net Lease(GNL) - 2024 Q1 - Earnings Call Transcript
2024-05-08 19:32
Global Net Lease Inc. (NYSE:GNL) Q1 2024 Results Conference Call May 8, 2024 11:00 AM ET Company Participants Jordyn Schoenfeld - CPA Michael Weil - CEO Chris Masterson - CFO Conference Call Participants Bryan Maher - B. Riley Securities Antara Nag-Chaudhuri - KeyBanc Capital Markets Mitch Germain - Citizens JMP Operator Ladies and gentlemen, good morning, and welcome to the Global Net Lease, Inc. First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief ...
Global Net Lease (GNL) Matches Q1 FFO Estimates
Zacks Investment Research· 2024-05-07 23:50
Global Net Lease (GNL) came out with quarterly funds from operations (FFO) of $0.33 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.38 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this real estate investment trust would post FFO of $0.40 per share when it actually produced FFO of $0.31, delivering a surprise of -22.50%.Over the last four quarters, the company has surpassed consensus FFO estimates just once.Globa ...
Global Net Lease(GNL) - 2024 Q1 - Quarterly Results
2024-05-07 20:19
EXHIBIT 99.2 Global Net Lease, Inc. Supplemental Information Quarter ended March 31, 2024 (unaudited) Global Net Lease, Inc. Supplemental Information Quarter ended March 31, 2024 (Unaudited) Table of Contents | Item | Page | | --- | --- | | Non-GAAP Definitions | 4 | | Key Metrics | 6 | | Consolidated Balance Sheets | 7 | | Consolidated Statements of Operations | 8 | | Non-GAAP Measures | 9 | | Debt Overview | 11 | | Future Minimum Lease Rents | 12 | | Top Twenty Tenants | 13 | | Diversification by Property ...
Global Net Lease Announces Release Date for First Quarter 2024 Results
Newsfilter· 2024-04-23 10:00
NEW YORK, April 23, 2024 (GLOBE NEWSWIRE) -- Global Net Lease, Inc. (NYSE:GNL) ("GNL" or the "Company") announced today that it will release its financial results for the first quarter ended March 31, 2024 on Tuesday, May 7, 2024 after the close of trading on the New York Stock Exchange. The Company will host a conference call and audio webcast on Wednesday, May 8, 2024, beginning at 11:00 a.m. ET, to discuss the first quarter results and provide commentary on business performance. The results will be relea ...
Global Net Lease: Declining Dividends And AFFO Per Share Impact Common Shares
Seeking Alpha· 2024-04-18 02:39
DNY59 REIT investing has been reshaped over the past five years. Looking at the era following the Great Recession, rock bottom interest rates precipitated a long-term decline in capitalization rates, which mirrored the long-term decline in treasury rates. As the ten-year treasury yield fell consistently over a period of four decades, real estate investors were supported by an extraordinary tailwind. Data by YCharts The era was essentially “easy street” for most REITs. However, as we know well, not all R ...
Global Net Lease Announces $462 Million of Dispositions Closed or Under Agreement¹ as Part of Strategic Disposition Plan
Newsfilter· 2024-04-17 10:00
Expect to achieve a 7.2% cash cap rate on occupied dispositions with a weighted average remaining lease term of 3.8 years NEW YORK, April 17, 2024 (GLOBE NEWSWIRE) -- Global Net Lease, Inc. (NYSE:GNL) ("GNL" or the "Company") today announced continued progress on its 2024 strategic disposition plan, which it first detailed in its fourth-quarter and full year earnings report in February 2024. As of April 15, 2024, GNL's strategic disposition efforts have resulted in over $462 million of transactions that are ...
Global Net Lease Announces $237 Million CMBS Re-Financing
Newsfilter· 2024-04-08 10:00
Fixed interest rate of 5.74% is 159 basis points lower than existing debt on re-financed assets Reduces annualized interest expense by over $3.5 million NEW YORK, April 08, 2024 (GLOBE NEWSWIRE) -- Global Net Lease, Inc. (NYSE:GNL) ("GNL" or the "Company") announced today that the Company completed a $237 million commercial mortgage-backed security loan (the "Loan") secured by 20 U.S. industrial properties previously secured under the Company's corporate credit facility. The lead lender for the Loan is Ban ...
Global Net Lease(GNL) - 2023 Q4 - Annual Report
2024-02-27 21:46
PART I [Business](index=5&type=section&id=Item%201.%20Business) Global Net Lease, Inc. manages a diversified global portfolio of 1,296 net lease properties, significantly expanded by the RTL acquisition and management internalization - On **September 12, 2023**, the company acquired The Necessity Retail REIT (RTL) and simultaneously internalized its advisory and property management functions, transitioning from an externally managed to an **internally managed REIT**[17](index=17&type=chunk)[38](index=38&type=chunk) Portfolio Overview as of December 31, 2023 | Metric | Value | | :--- | :--- | | **Total Properties** | 1,296 | | **Rentable Square Feet** | 66.8 million | | **Occupancy** | 96% | | **Weighted-Average Remaining Lease Term** | 6.8 years | Portfolio Composition by Segment (by Annualized Rental Income) | Segment | Percentage | | :--- | :--- | | Industrial & Distribution | 32% | | Multi-Tenant Retail | 27% | | Single-Tenant Retail | 21% | | Office | 20% | - As of December 31, 2023, **57.6%** of rental income was derived from tenants rated as **'Investment Grade'**, which includes both actual and implied investment grade ratings[21](index=21&type=chunk)[22](index=22&type=chunk) - Post-internalization, the company hired its own workforce of **77 employees** as of December 31, 2023, a significant change from having no employees (except one tax specialist in Europe) in the prior year[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) [Risk Factors](index=8&type=section&id=Item%201A.%20Risk%20Factors) The company faces material risks from RTL integration, substantial indebtedness, rising interest rates, market downturns, international investments, and REIT qualification challenges - The company may face difficulties integrating the operations of the newly acquired **RTL** and may not realize the anticipated **synergies** from the merger and internalization[44](index=44&type=chunk)[46](index=46&type=chunk) - The company has **substantial indebtedness** and may be unable to repay or refinance it as it becomes due. Increases in **interest rates** could significantly increase debt service costs[44](index=44&type=chunk)[125](index=125&type=chunk) - Market and economic challenges, including **inflation**, decreased demand for **office space**, and the shift to **online retail**, may adversely affect rental revenues and property values[44](index=44&type=chunk)[74](index=74&type=chunk)[76](index=76&type=chunk) - International investments, which account for **20%** of properties by annualized rental income, expose the company to **foreign currency exchange rate fluctuations** and differing legal and political environments[60](index=60&type=chunk) - Failure to maintain **REIT qualification** would subject the company to **U.S. federal income tax** at corporate rates, significantly reducing net earnings available for distribution[44](index=44&type=chunk)[161](index=161&type=chunk) [Unresolved Staff Comments](index=31&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[185](index=185&type=chunk) [Cybersecurity](index=31&type=section&id=Item%201C.%20Cybersecurity) The company maintains a cybersecurity risk management program overseen by the Audit Committee, with no material incidents reported - The company has a cybersecurity risk management program designed to protect critical systems and information, which is integrated into its enterprise risk management[187](index=187&type=chunk)[188](index=188&type=chunk) - The Board's Audit Committee provides oversight for the cybersecurity program, reviewing risk assessments and management's implementation of controls[189](index=189&type=chunk) - As of the report date, no known cybersecurity threats or prior incidents have had a material effect on the company's operations, strategy, or financial condition[188](index=188&type=chunk) [Properties](index=32&type=section&id=Item%202.%20Properties) The company's portfolio comprises 1,296 properties across four segments, diversified geographically and by industry, with a weighted average lease term of 6.8 years Portfolio Summary by Segment (as of December 31, 2023) | Segment | Number of Properties | Annualized Straight-Line Rent (in millions) | % of Total Rent | Occupancy | Wtd. Avg. Lease Term (Years) | | :--- | :--- | :--- | :--- | :--- | :--- | | Industrial & Distribution | 219 | $234.66 | 32% | 100% | 7.7 | | Multi-Tenant Retail | 109 | $199.70 | 27% | 88% | 5.2 | | Single-Tenant Retail | 878 | $153.54 | 21% | 98% | 8.3 | | Office | 90 | $142.97 | 20% | 94% | 5.0 | | **Total** | **1,296** | **$730.87** | **100%** | **96%** | **6.8** | Top Tenant Industries by Annualized Rent (as of Dec 31, 2023) | Industry | % of Total Rent | | :--- | :--- | | Financial Services | 6% | | Auto Manufacturing | 6% | | Healthcare | 5% | | Discount Retail | 5% | Geographic Distribution by Annualized Rent (as of Dec 31, 2023) | Country/Region | % of Total Rent | | :--- | :--- | | United States & Canada | 80% | | United Kingdom | 11% | | Other European Countries | 9% | - Lease expirations are concentrated over the next six years, with **12.1%** of annualized straight-line rent expiring in 2028 and **11.5%** in 2029[201](index=201&type=chunk) [Legal Proceedings](index=36&type=section&id=Item%203.%20Legal%20Proceedings) The company reports no material legal proceedings pending - None[205](index=205&type=chunk) [Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[206](index=206&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=37&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NYSE, with a recent dividend reduction to $1.10 annually to manage leverage - In October 2023, following the mergers, the Board set a new annual dividend rate for Common Stock at **$1.42 per share** (**$0.354 quarterly**)[216](index=216&type=chunk) - On February 26, 2024, the Board approved a policy to reduce the Common Stock dividend rate to an anticipated **$1.10 annualized** (**$0.275 quarterly**), effective with the next declaration expected in April 2024, to increase cash available to lower leverage[217](index=217&type=chunk)[390](index=390&type=chunk) - For tax purposes, **100%** of the dividends distributed for Common Stock and all series of Preferred Stock during the year ended December 31, 2023, represented a return of capital[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk) - The company has an employee and director incentive plan, the 2021 Omnibus Incentive Compensation Plan, and assumed RTL's 2018 plan in the merger. As of Dec 31, 2023, there were **1,004,160** securities to be issued upon exercise of outstanding options and rights, and **4,546,496** securities remaining available for future issuance under these plans[226](index=226&type=chunk)[228](index=228&type=chunk) [Reserved](index=39&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company's 2023 financial results were significantly impacted by the RTL merger, leading to increased revenue, a substantial net loss due to one-time costs, higher debt, and a dividend reduction strategy Key Financial Results Comparison (2023 vs. 2022) | Metric (in millions) | 2023 | 2022 | | :--- | :--- | :--- | | **Revenue from Tenants** | $515.1 | $378.9 | | **Net Loss Attributable to Common Stockholders** | $(239.3) | $(8.4) | | **Impairment Charges** | $68.7 | $21.6 | | **Merger, Transaction and Other Costs** | $54.5 | $0.2 | | **AFFO Attributable to Common Stockholders** | $199.8 | $172.9 | | **Cash Flows from Operating Activities** | $143.7 | $181.8 | - The significant increase in net loss was primarily due to one-time costs associated with the RTL merger, including transaction costs (**$54.5 million**), settlement costs (**$29.7 million**), and impairment charges (**$68.7 million**)[302](index=302&type=chunk)[304](index=304&type=chunk)[305](index=305&type=chunk) - Total gross debt increased significantly to **$5.4 billion** at year-end 2023 from **$2.4 billion** at year-end 2022, mainly due to debt assumed in the RTL merger and additional borrowings to repay RTL's credit facility[312](index=312&type=chunk)[347](index=347&type=chunk) - For the year ended December 31, 2023, cash flows from operations of **$143.7 million** funded **60.8%** of the total **$236.4 million** in dividends and distributions, with the remainder funded from available cash on hand[332](index=332&type=chunk)[394](index=394&type=chunk) - The company is actively managing its leverage, with plans to use proceeds from strategic dispositions to reduce debt. As of February 19, 2024, it had signed purchase and sale agreements and non-binding letters of intent for dispositions totaling **$147.7 million**[332](index=332&type=chunk)[338](index=338&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate and foreign currency fluctuations, with most debt fixed-rate and currency risk managed through matching and derivatives - As of December 31, 2023, **80%** of the company's **$5.4 billion** total debt was fixed-rate or effectively fixed through swaps, with a weighted-average effective interest rate of **4.1%**. The remaining **20%** was variable-rate debt with a weighted-average rate of **7.2%**[407](index=407&type=chunk) - A **1%** change in annual interest rates would increase or decrease the annual interest expense on the company's unhedged variable-rate debt by approximately **$11.1 million**[409](index=409&type=chunk) - The company manages foreign currency risk by matching debt service obligations with rental income in the same currency and using derivative instruments. It is a net receiver of EUR, GBP, and CAD, so a weaker USD is generally beneficial to its operating results[410](index=410&type=chunk) - The portfolio has geographic concentrations, with **80%** of annualized rental income from the U.S. and Canada and **11%** from the United Kingdom. Asset type concentrations include Industrial & Distribution (**32%**) and Multi-Tenant Retail (**27%**)[416](index=416&type=chunk) [Financial Statements and Supplementary Data](index=65&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates by reference the company's consolidated financial statements and supplementary data, which begin on page F-1 - The required financial statements and supplementary data are incorporated by reference and can be found starting on page F-1 of the report[417](index=417&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=65&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[418](index=418&type=chunk) [Controls and Procedures](index=65&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, confirmed by external auditors - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[419](index=419&type=chunk) - Management assessed internal control over financial reporting based on the COSO framework and concluded it was effective as of December 31, 2023. This assessment was audited and confirmed by PricewaterhouseCoopers LLP[421](index=421&type=chunk)[422](index=422&type=chunk) - There were no changes in internal control over financial reporting during the fourth quarter of 2023 that materially affected, or are reasonably likely to materially affect, internal controls[423](index=423&type=chunk) [Other Information](index=66&type=section&id=Item%209B.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 trading arrangements during Q4 2023 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading plan during the three months ended December 31, 2023[424](index=424&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=66&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[425](index=425&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=66&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the company's definitive 2024 proxy statement - Information required by this item is incorporated by reference from the registrant's definitive proxy statement for the 2024 Annual Meeting of Stockholders[427](index=427&type=chunk) [Executive Compensation](index=66&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive 2024 proxy statement - Information required by this item is incorporated by reference from the registrant's definitive proxy statement for the 2024 Annual Meeting of Stockholders[428](index=428&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=66&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Details on security ownership are incorporated by reference from the company's definitive 2024 proxy statement - Information required by this item is incorporated by reference from the registrant's definitive proxy statement for the 2024 Annual Meeting of Stockholders[429](index=429&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=66&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the company's definitive 2024 proxy statement - Information required by this item is incorporated by reference from the registrant's definitive proxy statement for the 2024 Annual Meeting of Stockholders[430](index=430&type=chunk) [Principal Accountant Fees and Services](index=66&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's definitive 2024 proxy statement - Information required by this item is incorporated by reference from the registrant's definitive proxy statement for the 2024 Annual Meeting of Stockholders[431](index=431&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=67&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section provides an index of all exhibits and references the audited consolidated financial statements and Schedule III - This section contains the index to the audited consolidated financial statements (beginning on page F-1) and includes Schedule III – Real Estate and Accumulated Depreciation[434](index=434&type=chunk) - A comprehensive list of exhibits, including articles of incorporation, bylaws, debt agreements, and material contracts, is provided, with many items incorporated by reference from previous filings[436](index=436&type=chunk)[437](index=437&type=chunk) [Form 10-K Summary](index=73&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicates that there is no Form 10-K summary - None[448](index=448&type=chunk)