Global Net Lease(GNL) - 2025 Q1 - Quarterly Results

Financial Performance & Position This section provides an overview of the company's financial results, balance sheet, and key performance indicators for the reporting period Key Metrics 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] Consolidated Financial Statements 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 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 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 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 This section details the company's debt structure, maturity schedule, and future minimum lease obligations Debt Overview 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] Future Minimum Lease Rents 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 This section analyzes the company's real estate portfolio by diversification, top tenants, and lease expiration schedule Portfolio Diversification The company's portfolio exhibits diversification across property types, tenant industries, and geographic regions Diversification by Property Type 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 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 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 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] Lease Expirations 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 This section defines the non-GAAP financial measures used by the company to assess its operational performance Overview of Non-GAAP Measures 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] - 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][6] FFO, Core FFO, and AFFO 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] - Core FFO adjusts FFO by excluding non-core items such as merger, transaction, and debt extinguishment costs[14] - 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][17] Adjusted EBITDA, NOI, and Cash NOI 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] - NOI is a property-level performance measure reflecting income and expense items incurred at the property, excluding corporate-level costs[20] - Cash NOI adjusts NOI by excluding non-cash revenues such as straight-line rent adjustments and amortization of lease intangibles[21]