Global Net Lease(GNL) - 2025 Q2 - Quarterly Results

Financial Performance and Position The company's financial performance in Q2 2025 reflects a net loss and decreased assets, while non-GAAP metrics provide additional operational insights Key Metrics Global Net Lease's Q2 2025 results show $124.9 million in tenant revenue, a $35.1 million net loss, and $53.1 million in AFFO Q2 2025 Financial & Operational Highlights | Metric | Value | | :--- | :--- | | Revenue from tenants | $124.9 million | | Net loss attributable to common stockholders | $(35.1) million | | Basic and diluted net loss per share | $(0.16) | | AFFO attributable to common stockholders | $53.1 million | | Dividends per share | $0.19 | | Gross asset value | $6.04 billion | | Net debt | $2.97 billion | | Number of properties | 911 | | Leased Percentage | 98% | | Weighted-average remaining lease term | 6.2 years | Q2 2025 Capitalization Metrics | Metric | Value | | :--- | :--- | | Net debt to gross asset value | 49.2% | | Net debt to annualized adjusted EBITDA | 6.6x | | Weighted-average interest rate cost | 4.3% | | Weighted-average debt maturity | 2.9 years | | Interest Coverage Ratio | 2.7x | Consolidated Financial Statements The company's Q2 2025 consolidated balance sheet shows total assets of $5.0 billion and liabilities of $3.2 billion, reflecting asset reclassification Consolidated Balance Sheets As of June 30, 2025, total assets decreased to $4.98 billion from $6.96 billion, reflecting discontinued operations Balance Sheet Comparison (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total real estate investments, net | $4,366,367 | $4,622,033 | | Assets related to discontinued operations | $2,337 | $1,816,131 | | Total Assets | $4,984,916 | $6,955,764 | | Total Liabilities | $3,152,537 | $4,768,806 | | Total Equity | $1,832,379 | $2,186,958 | Consolidated Statements of Operations For Q2 2025, the company reported $124.9 million in tenant revenue and a net loss of $24.1 million Quarterly Operating Results (in thousands, except per share data) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | :--- | | Revenue from tenants | $124,905 | $132,415 | $137,783 | | Operating income (loss) | $42,297 | $(27,874) | $56,220 | | Net loss | $(24,143) | $(189,379) | $(6,522) | | Net loss attributable to common stockholders | $(35,079) | $(200,315) | $(17,458) | | Net loss per share | $(0.16) | $(0.87) | $(0.08) | Non-GAAP Measures Q2 2025 non-GAAP metrics show Adjusted EBITDA of $113.4 million, Cash NOI of $124.4 million, and AFFO of $53.1 million Quarterly Non-GAAP Performance (in thousands) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $113,359 | $138,416 | $150,260 | | Cash NOI | $124,366 | $150,799 | $161,172 | | FFO attributable to common stockholders | $(14,400) | $32,961 | $64,334 | | AFFO attributable to common stockholders | $53,108 | $66,220 | $78,297 | Non-GAAP Per Share Data | Metric | Q2 2025 | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | :--- | | FFO per diluted common share | $(0.06) | $0.14 | $0.28 | | Core FFO per diluted common share | $0.03 | $0.15 | $0.30 | | AFFO per diluted common share | $0.24 | $0.29 | $0.34 | Debt and Capital Structure Global Net Lease's debt as of June 30, 2025, totaled $3.12 billion, with a 4.3% interest rate and 2.9-year maturity Debt Overview As of June 30, 2025, Global Net Lease had $3.12 billion in total outstanding debt with a 4.3% weighted-average interest rate and 2.9-year weighted-average maturity Debt Summary as of June 30, 2025 | Metric | Value | | :--- | :--- | | Total Outstanding Debt | $3.12 billion | | Weighted-Average Maturity | 2.9 years | | Weighted-Average Interest Rate | 4.3% | | Recourse Debt Percentage | 56% | | Non-Recourse Debt Percentage | 44% | - The company's debt is primarily fixed-rate, with 85% of total debt being either fixed-rate or swapped to a fixed rate, mitigating interest rate risk[36] - The debt is primarily denominated in U.S. Dollars (80%), followed by Euros (19%) and Canadian Dollars (1%)[35] Portfolio Overview The company's real estate portfolio is diversified across property types, industries, and geographies, with a strong future lease income stream and staggered expirations Lease Profile The company's portfolio has over $3.1 billion in future minimum base rent payments, with a staggered lease expiration schedule Future Minimum Lease Rents As of June 30, 2025, the company has contractual future minimum base rent payments totaling approximately $3.13 billion Future Minimum Base Rent Schedule (in thousands) | Period | Future Minimum Base Rent | | :--- | :--- | | 2025 (remainder) | $226,558 | | 2026 | $437,622 | | 2027 | $391,235 | | 2028 | $356,338 | | 2029 | $302,000 | | Thereafter | $1,413,344 | | Total | $3,127,097 | Lease Expirations The portfolio's lease expirations are spread over the next decade, with 5.0% expiring in 2025 and concentrations in 2028-2030 Lease Expiration Schedule by Annualized SL Rent | Year of Expiration | Annualized SL Rent Percent Expiring | | :--- | :--- | | 2025 (Remainder) | 5.0% | | 2026 | 8.1% | | 2027 | 8.4% | | 2028 | 10.9% | | 2029 | 13.4% | | 2030 | 10.6% | | Thereafter (>2040) | 9.4% | Portfolio Diversification The company's portfolio is diversified across property types, tenant industries, and geographies Top Twenty Tenants The portfolio's top twenty tenants contribute 42.0% of annualized straight-line rent, with FedEx as the largest at 5.0% - The top 20 tenants represent 42.0% of the total annualized straight-line rent, amounting to $192.4 million[44] Top 5 Tenants by Annualized SL Rent | Tenant / Lease Guarantor | SL Rent Percent | | :--- | :--- | | FedEx | 5.0% | | McLaren | 4.6% | | Whirlpool | 3.2% | | Government Services Administration (GSA) | 2.5% | | ING Bank | 2.5% | Diversification by Property Type The portfolio is primarily weighted towards Industrial & Distribution properties, accounting for 47% of annualized straight-line rent Portfolio Breakdown by Property Type (Based on Annualized SL Rent) | Property Type/Segment | SL Rent Percent | Square Feet Percent | | :--- | :--- | :--- | | Industrial & Distribution | 47% | 69% | | Office | 27% | 15% | | Retail | 26% | 16% | Diversification by Tenant Industry The tenant base is diversified across numerous industries, with Auto Manufacturing and Financial Services as the top sectors at 10% each Top 5 Tenant Industries by Annualized SL Rent | Industry Type | SL Rent Percent | | :--- | :--- | | Auto Manufacturing | 10% | | Financial Services | 10% | | Freight | 6% | | Healthcare | 6% | | Consumer Goods | 5% | - The 'Other' category, which comprises 62 different industry types, represents 38% of the total annualized straight-line rent, indicating broad industry diversification beyond the top sectors[42][43] Diversification by Geography The company's portfolio is geographically diversified, with 69.5% of annualized rent from the United States Geographic Breakdown by Annualized SL Rent | Region | SL Rent Percent | | :--- | :--- | | United States | 69.5% | | United Kingdom | 15.5% | | Netherlands | 4.0% | | Finland | 3.2% | | Germany | 2.5% | | Other | 5.3% | Non-GAAP Definitions The company utilizes various non-GAAP financial measures, including FFO, AFFO, and Adjusted EBITDA, to supplement GAAP results and provide insights into operational performance Explanation of Non-GAAP Financial Measures The company utilizes non-GAAP financial measures like FFO, AFFO, and Adjusted EBITDA to supplement GAAP results and evaluate performance - The company uses non-GAAP measures such as FFO, Core FFO, AFFO, Adjusted EBITDA, and NOI to provide a more complete understanding of its operating performance[4][8] - FFO is calculated consistent with NAREIT's definition, starting with GAAP net income and excluding real estate-related depreciation and amortization, and gains or losses from property sales[9][10] - AFFO further adjusts Core FFO by excluding certain non-cash items (like straight-line rent and equity-based compensation) and other items not considered part of core ongoing operations to better reflect investing activities and fundamental business performance[16][17] - Adjusted EBITDA is presented as a measure of the company's ability to incur and service debt, adjusting for acquisition costs and other non-cash items[18]