Global Net Lease(US:GNL)2025-11-06 21:20Property Sales and Acquisitions - The company completed the sale of 99 multi-tenant retail properties for a total base purchase price of approximately $1.780 billion[233][234]. - The company sold 168 properties for an aggregate contract price of $283.5 million during the nine months ended September 30, 2025[322]. - The company has entered into purchase and sale agreements and non-binding letters of intent totaling $127.6 million for future dispositions[317]. Property Portfolio and Leasing - As of September 30, 2025, the company owned 852 properties with a total of 42.9 million rentable square feet, which were 97% leased[235]. - The portfolio consisted of 48% Industrial & Distribution properties, 26% Retail properties, and 26% Office properties, with a weighted-average remaining lease term of 6.2 years[235]. - Approximately 87% of the company's leases contain rent escalation provisions, with an average cumulative increase of 1.4% per year, helping to mitigate inflation impacts[365]. Revenue Performance - For the three months ended September 30, 2025, consolidated revenue from tenants was $121.0 million, down from $138.7 million in the same period of 2024[246]. - Consolidated revenue from tenants fell to $378.3 million for the nine months ended September 30, 2025, down from $432.0 million in the same period of 2024, representing a decrease of approximately 12.4%[279]. - Revenue from the Industrial & Distribution segment decreased to $56.7 million from $59.7 million year-over-year, primarily due to the loss of revenue from dispositions[247]. - Retail segment revenue fell to $30.3 million from $39.6 million, driven by a loss of approximately $8.4 million from dispositions[248]. - Office segment revenue decreased to $34.0 million from $35.0 million, with a net loss of revenue of approximately $1.6 million from dispositions[249]. Operating Expenses - Total consolidated property operating expenses were $12.7 million for the three months ended September 30, 2025, down from $15.2 million in 2024[251]. - Total consolidated property operating expenses decreased to $38.6 million for the nine months ended September 30, 2025, from $48.9 million in 2024, a reduction of approximately 21%[285]. - Property operating expenses in the Retail segment increased to $4.1 million from $2.9 million, primarily due to higher costs absorbed at one property in Europe[255]. - Property operating expenses in the Office segment decreased to $4.0 million for Q3 2025 from $5.0 million in Q3 2024, a reduction of 20%[256]. Impairment and Losses - An impairment charge of approximately $55.4 million was recorded for 10 properties in Q3 2025, compared to $38.5 million for 21 properties in Q3 2024, reflecting a significant increase in impairment[257][258]. - An impairment charge of approximately $125.6 million was recorded for 100 properties during the nine months ended September 30, 2025, compared to $70.2 million for 33 properties in the same period of 2024[290][291]. - The company recorded a net loss of $5.8 million from the sale of 58 properties in Q3 2025, compared to a net loss of $4.3 million from 20 properties sold in Q3 2024[264][265]. Financial Performance - Net loss attributable to common stockholders was $306.4 million for the nine months ended September 30, 2025, compared to a net loss of $157.9 million for the same period in 2024[278]. - For the three months ended September 30, 2025, the net loss attributable to common stockholders was $71,051,000, compared to a net loss of $76,571,000 for the same period in 2024[351]. - Funds From Operations (FFO) attributable to common stockholders for the three months ended September 30, 2025, was $33,745,000, a decrease from $51,722,000 in the prior year[351]. - Core FFO attributable to common stockholders for the three months ended September 30, 2025, was $39,489,000, down from $53,940,000 in the same period of 2024[351]. - Adjusted Funds From Operations (AFFO) attributable to common stockholders for the three months ended September 30, 2025, was $53,163,000, compared to $73,856,000 for the same period in 2024[351]. Debt and Interest Expenses - Interest expense decreased to $45.3 million in Q3 2025 from $59.5 million in Q3 2024, attributed to lower gross debt of $3.0 billion compared to $5.0 billion and a reduction in the weighted-average effective interest rate from 4.8% to 4.2%[266]. - Total gross debt outstanding was $3.0 billion, with a weighted-average interest rate of 4.2%[326]. - The debt leverage ratio was 58.8% as of September 30, 2025, down from 63.8% as of December 31, 2024[328]. - Interest expense decreased to $152.1 million for the nine months ended September 30, 2025, from $196.1 million in 2024, due to lower gross debt outstanding and a reduced weighted-average effective interest rate of 4.2%[299]. Cash Flow and Dividends - Net cash provided by operating activities was $167.2 million for the nine months ended September 30, 2025, down from $224.7 million in 2024[310][311]. - Net cash provided by investing activities increased to $1.4 billion for the nine months ended September 30, 2025, compared to $515.3 million in 2024, primarily from net proceeds of dispositions[312][313]. - Net cash used in financing activities was $1.6 billion for the nine months ended September 30, 2025, compared to $730.3 million in 2024, driven by significant paydowns of borrowings and dividend payments[314][315]. - The Board approved an annual dividend rate of $1.42 per share in October 2023, which was later reduced to $1.10 per share in February 2024[355][356]. - The quarterly dividend per share was planned to be reduced from $0.275 to $0.190, effective with the dividend declared in April 2025[357]. Ratings and Market Conditions - Fitch Ratings upgraded the company's corporate credit rating to investment-grade BBB- from BB+ on October 17, 2025[335]. - The company may face risks and uncertainties related to market conditions and capital availability that could impact future acquisitions or dispositions[230]. - The company is subject to foreign currency translation risks, as its reporting currency is USD while its foreign investments are in local currencies[362]. - The increase to the 12-month CPI for all items as of September 30, 2025, was 3.0%, which may affect leases without indexed escalation provisions[365].