Global Net Lease(US:GNL)2024-11-06 21:36Financial Performance - The company reported a net loss attributable to common stockholders of $76.6 million for the three months ended September 30, 2024, compared to a net loss of $142.5 million for the same period in 2023 [174]. - Net loss attributable to common stockholders was $157.9 million for the nine months ended September 30, 2024, compared to a net loss of $179.8 million for the same period in 2023, representing a decrease of approximately 12.5% [194]. - Net loss attributable to common stockholders for the three months ended September 30, 2024, was $(76,571) thousand, compared to $(142,488) thousand for the same period in 2023 [233]. - Core FFO attributable to common stockholders for the three months ended September 30, 2024, was $53,940 thousand, an increase from $31,542 thousand in the same period of 2023 [233]. - AFFO attributable to common stockholders for the three months ended September 30, 2024, was $73,856 thousand, compared to $46,929 thousand for the same period in 2023 [233]. Revenue Growth - Total consolidated revenue from tenants increased to $196.6 million for the three months ended September 30, 2024, up from $118.2 million in the same period in 2023 [174]. - Total consolidated revenue from tenants increased to $605.9 million for the nine months ended September 30, 2024, up from $308.3 million in 2023, reflecting a growth of approximately 96.5% [195]. - Revenue from the Industrial & Distribution segment was $59.7 million for the three months ended September 30, 2024, compared to $53.8 million for the same period in 2023 [176]. - Revenue from the Industrial & Distribution segment was $183.1 million for the nine months ended September 30, 2024, compared to $157.9 million in 2023, marking an increase of about 15.9% [196]. - Revenue from the Multi-Tenant Retail segment surged to $196.1 million in 2024 from $13.4 million in 2023, indicating a significant increase of approximately 1,462.7% [198]. Property and Portfolio Details - As of September 30, 2024, the company owned 1,223 properties with a total of 61.9 million rentable square feet, which were 96% leased, and had a weighted-average remaining lease term of 6.3 years [164]. - The portfolio composition as of September 30, 2024, included 33% Industrial & Distribution, 27% Multi-Tenant retail, 22% Single Tenant retail, and 18% Office properties [164]. - The company’s properties are primarily located in the U.S. and Canada (80%) and Europe (20%) based on annualized rental income [164]. - Approximately 60.5% of the company's rental income on an annualized straight-line basis was derived from Investment Grade rated tenants as of September 30, 2024 [164]. Expenses and Charges - Total consolidated property operating expenses rose to $33.5 million in Q3 2024 from $13.6 million in Q3 2023, reflecting a full quarterly period of expenses from properties acquired from RTL [180]. - The company recorded an impairment charge of approximately $38.6 million in Q3 2024 for 21 properties, compared to $65.7 million in Q3 2023 for four properties [186]. - General and administrative expenses increased to $12.6 million in Q3 2024 from $7.0 million in Q3 2023, mainly due to internalization of management functions [186]. - Interest expense rose to $77.1 million in Q3 2024 from $41.2 million in Q3 2023, attributed to higher non-cash amortization expenses from the REIT Merger [191]. - Depreciation and amortization expense increased to $85.4 million in Q3 2024 from $49.2 million in Q3 2023, due to the impact of the REIT Merger [188]. Cash Flow and Financing Activities - Net cash provided by operating activities was $224.7 million for the nine months ended September 30, 2024, up from $88.0 million in 2023, despite a net loss of $125.1 million [213]. - Net cash provided by investing activities was $515.3 million for the nine months ended September 30, 2024, primarily from net proceeds of $547.6 million from dispositions [214]. - Net cash used in financing activities was $730.3 million for the nine months ended September 30, 2024, driven by principal payments on mortgage notes payable of $275.2 million and dividends paid to common stockholders of $208.7 million [215]. - As of September 30, 2024, total gross debt outstanding was $5.0 billion, with a weighted-average interest rate of 4.8% [222]. - The debt leverage ratio was 64.0% as of September 30, 2024, down from 65.0% at December 31, 2023 [222]. Dividend Policy and Shareholder Returns - The Board approved a reduction in the Common Stock dividend rate to an annual rate of $1.10 per share, effective from April 2024, down from $1.60 per share in 2023 [235]. - Total dividends and distributions for the nine months ended September 30, 2024, amounted to $241,595,000, compared to $74,452,000 for the same period in 2023, reflecting a significant increase [238]. - The company intends to maintain its status as a REIT, which requires distributing at least 90% of its REIT taxable income annually [241]. Strategic Acquisitions and Internalization - The company completed the acquisition of The Necessity Retail REIT and internalized its advisory and property management functions on September 12, 2023 [165]. - The company completed the Internalization Merger, resulting in the termination of external management agreements and a shift to internal management functions [172]. Foreign Currency Exposure - The company is exposed to foreign currency exchange rate fluctuations and utilizes derivatives to manage this exposure [240]. - The company is exposed to foreign currency fluctuations and may use derivatives to manage this risk, particularly in GBP-USD and EUR-USD exchange rates [240].