Global Net Lease Reports Fourth Quarter and Full Year 2024 Results

Core Insights - The company has met and exceeded its full-year 2024 earnings guidance, indicating strong operational performance [1] - A recently announced $1.8 billion multi-tenant portfolio sale is expected to significantly reduce leverage and improve liquidity [1][3] - The proposed transaction aims to transform the company into a pure-play, single-tenant net lease entity with enhanced portfolio metrics [1][3] - The company has initiated a $300 million opportunistic share repurchase program [1] Financial Performance - Revenue for Q4 2024 was $199.1 million, down from $206.7 million in Q4 2023, primarily due to $835 million in dispositions [5][7] - The net loss attributable to common stockholders for Q4 2024 was $17.5 million, a significant improvement from a loss of $59.5 million in Q4 2023 [5][7] - Core Funds From Operations (Core FFO) for Q4 2024 was $68.5 million, or $0.30 per share, compared to $48.3 million, or $0.21 per share, in Q4 2023 [5][7] - Adjusted Funds From Operations (AFFO) for Q4 2024 was $78.3 million, or $0.34 per share, compared to $71.7 million, or $0.31 per share, in Q4 2023; full-year 2024 AFFO was $303.8 million, or $1.32 per share [5][7] Portfolio and Dispositions - The company completed $835 million in dispositions in 2024, surpassing the high end of its increased guidance, with a cash cap rate of 7.1% and a weighted average lease term of 4.9 years [4][5] - The portfolio occupancy increased from 93% at the end of Q1 2024 to 97% at the end of Q4 2024 [5] - The company leased 1.2 million square feet across its portfolio, resulting in nearly $17 million of new straight-line rent [5] Capital Structure and Liquidity - As of December 31, 2024, the company had liquidity of $492.2 million and $460 million of capacity under its revolving credit facility [8] - The company reduced net debt by $734 million in 2024, improving the Net Debt to Adjusted EBITDA ratio from 8.4x to 7.6x [4][5] - The percentage of fixed-rate debt increased to 91% as of December 31, 2024, compared to approximately 80% a year earlier [9] Future Guidance - The company has established initial 2025 guidance, which is contingent on the sale of its multi-tenant portfolio, with an AFFO per share range of $0.90 to $0.96 and a Net Debt to Adjusted EBITDA range of 6.5x to 7.1x [6][10]