Global Net Lease(GNL) - 2024 Q4 - Annual Results

Financial Performance - The quarter ended December 31, 2024, is unaudited and includes key financial metrics and performance indicators[2] - Revenue from tenants for the quarter ended December 31, 2024, was $199,115,000, representing an increase from $196,564,000 in the previous quarter[20] - Net loss attributable to common stockholders for the same quarter was $(17,458,000), compared to $(76,571,000) in the prior quarter[24] - Cash NOI for the quarter was $161,172,000, while Adjusted EBITDA was $150,260,000[20] - For the quarter ended December 31, 2024, Global Net Lease reported a net loss of $6,522,000, a significant improvement from a net loss of $65,635,000 in the previous quarter[25] - EBITDA for the same quarter was $154,694,000, compared to $98,270,000 in the prior quarter, reflecting a 57.4% increase[25] - Funds from operations (FFO) attributable to common stockholders for the quarter was $64,334,000, up from $51,722,000 in the previous quarter, representing a 24.9% increase[28] - Adjusted funds from operations (AFFO) attributable to common stockholders was $78,297,000, compared to $73,856,000 in the prior quarter, indicating a 6.2% increase[28] Non-GAAP Measures - Funds from Operations (FFO) is a critical non-GAAP measure used to evaluate the operating performance of the company, excluding depreciation and amortization related to real estate[9] - Core Funds from Operations (Core FFO) excludes non-core items such as merger and transaction costs, providing a clearer view of operational income[12] - Adjusted Funds from Operations (AFFO) further refines Core FFO by excluding certain non-cash income and expense items, reflecting ongoing operating performance[13] - The company emphasizes the importance of non-GAAP measures like FFO, Core FFO, and AFFO for a comprehensive understanding of operational performance[8] Asset and Liability Management - Total assets decreased to $6,955,764,000 from $8,098,977,000 year-over-year[23] - Total liabilities decreased to $4,768,806,000 from $5,459,828,000 year-over-year[23] - Net debt to gross asset value ratio stood at 56.1%[20] - Total outstanding debt as of December 31, 2024, was $4,713,913,000, with 91% of the debt at fixed rates or swapped to fixed rates[33][34] - The weighted average interest rate on total debt was 4.8% as of December 31, 2024[33] Portfolio Overview - The real estate portfolio had a leased square footage of 60.7 million, with a lease occupancy rate of 97%[20] - The total number of encumbered properties was 749, with a weighted average maturity of 3.0 years[33] - Total annualized straight-line rent for the portfolio as of December 31, 2024, is $656,476,000, with industrial & distribution properties contributing 34%[37] - The unencumbered portfolio's annualized straight-line rent is $350,306,000, representing 100% of the unencumbered portfolio[39] - The industrial & distribution sector occupies 53% of the total square footage, totaling 31,938,000 square feet[37] - Multi-tenant retail properties represent 28% of the total annualized straight-line rent at $181,798,000[37] - The company has diversified its portfolio across various industries, with "Other" industries making up 57% of the total annualized straight-line rent[41] Lease Expiration and Future Revenue - Lease expirations indicate that 2,197 leases are set to expire, with a total annualized SL Rent of $656,476,000, representing 100% of the portfolio[45] - The highest percentage of expiring leases occurs in 2028, with 306 leases expiring and an annualized SL Rent of $84,365,000, which is 12.9% of the total[45] - Future lease expirations are well-distributed, with no single year exceeding 13.1% of the total SL Rent, ensuring manageable turnover[45] - The company anticipates a total revenue of $4,341,176,000 over the next five years, with a significant decline projected in 2029[36] Risk Factors - The company is subject to risks and uncertainties that could affect future performance, including market conditions and capital availability[3] - The top twenty tenants and diversification by property type, tenant industry, and geography are detailed, highlighting the company's strategic positioning[13]