Global Net Lease(US:GNL) Globenewswireยท2025-08-06 20:15Core Insights - The company has successfully completed the final phases of its multi-tenant portfolio sale, transitioning into a pure-play net lease REIT [1][3] - A significant reduction in net debt by $748 million has improved the net debt to adjusted EBITDA ratio to 6.6x [1][3] - The company has refinanced its revolving credit facility for $1.8 billion, lowering the cost of capital by 35 basis points and extending the weighted average debt maturity to 3.7 years [1][3] - The low end of the 2025 AFFO guidance has been raised to a range of $0.92 to $0.96 per share [1][4] Financial Performance - Revenue for Q2 2025 was $124.9 million, down from $145.5 million in Q2 2024, primarily due to asset dispositions [3][5] - The net loss attributable to common stockholders was $35.1 million, an improvement from a net loss of $46.6 million in Q2 2024 [3][5] - Core Funds from Operations (Core FFO) decreased to $7.1 million from $50.9 million in Q2 2024, largely due to asset sales [3][5] - Adjusted Funds from Operations (AFFO) was $53.1 million, or $0.24 per share, compared to $76.7 million, or $0.33 per share in Q2 2024 [3][5] Debt and Liquidity - The company has reduced net debt by $2.0 billion since Q2 2024, including the recent $748 million reduction [3][7] - Liquidity increased to $1.0 billion as of June 30, 2025, compared to $220 million in Q2 2024 [3][7] - The refinancing of the revolving credit facility has resulted in a weighted average interest rate of 4.3% and an interest coverage ratio of 2.7 times [8][7] Portfolio and Operations - As of June 30, 2025, the company operates a portfolio of 911 net lease properties across ten countries, totaling 44 million rentable square feet [6][9] - The portfolio is 98% leased with a remaining weighted-average lease term of 6.2 years [9] - 60% of the annualized straight-line rent comes from investment-grade or implied investment-grade tenants [9][3] Strategic Initiatives - The company has executed a share repurchase program, repurchasing 10.2 million shares at a weighted average price of $7.52, totaling $76.9 million [3][16] - The successful sale of the multi-tenant retail portfolio has led to $6.5 million in annual G&A savings and a $30 million reduction in recurring capex [3][4] - The company has received a credit rating upgrade from S&P Global to BB+ and an investment-grade rating of BBB- for its unsecured notes [3][4]