Global Net Lease(US:GNL)2021-05-06 21:08Financial Data and Key Metrics Changes - The company reported an AFFO of $0.44 per share, with cash NOI growth of 14.6% to $80.9 million compared to the first quarter of 2020 [5][11] - Adjusted EBITDA increased to $68.1 million from $60.1 million year-over-year, and revenue rose by 12.8% to $89.4 million from $79.2 million [12] - The net loss attributable to common stockholders was $832,000 for the quarter [12] Business Line Data and Key Metrics Changes - The company’s property mix is now 49% industrial and distribution, 46% office, and 5% retail, compared to 47% industrial and distribution, 48% office, and 5% retail a year ago [10] - Over 66% of straight-line rent comes from investment-grade or implied investment-grade tenants [10] Market Data and Key Metrics Changes - The company collected 100% of cash rent from its UK, European, and North American assets, highlighting the resilience of its portfolio [6] - The portfolio is nearly fully occupied at 99.7% leased, with a weighted average remaining lease term of 8.3 years [9] Company Strategy and Development Direction - The company is focused on a robust acquisition pipeline, with year-to-date closed and forward pipeline acquisitions exceeding $250 million at a going-in cap rate of 9.3% [6][16] - The acquisition of the McLaren Group's Headquarters is a significant addition, showcasing the company's ability to source large-scale global opportunities [7][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing collection of nearly 100% of rents and the strong performance of the portfolio, indicating a positive outlook for future growth [16] - The company is actively pursuing additional accretive acquisitions and believes its global portfolio will continue to contribute to growth in future quarterly results [16] Other Important Information - The company ended the quarter with net debt of $2 billion at a weighted average interest rate of 3.3%, with a net debt to adjusted EBITDA ratio of 7.4x [14] - Liquidity was approximately $350 million as of March 31, 2021, providing a strong position for future capital needs [14] Q&A Session Summary Question: Was there a fallout from the acquisition pipeline in the first quarter? - Yes, one potential acquisition did fall out [19] Question: Can you provide details on the McLaren acquisition? - The McLaren facility includes R&D, manufacturing, and office space, totaling approximately 900,000 square feet [20] Question: How was the McLaren deal sourced? - The deal was sourced through management relationships with McLaren, leading to a successful bid [23] Question: What is the company's view on capital raising and liquidity? - The company remains in a comfortable liquidity position and will consider capital raising as appropriate based on market conditions [27] Question: What are the internal discussions regarding capital recycling? - The company continuously evaluates opportunities but is currently satisfied with its well-performing portfolio [36] Question: How is the office acquisition environment perceived? - The company is comfortable with its office portfolio, particularly in secondary markets, and has not seen significant tenant requests to reduce space [38] Question: Can you clarify the refinancing language around the McLaren transaction? - If the company refinances its debt and McLaren achieves a higher credit rating, the rents will step down [44]