Financial Performance & Strategic Objectives - GNL reduced net debt by $748 million in Q2 2025, decreasing Net Debt to Adjusted EBITDA to 66x[10] - GNL increased the low end of its AFFO per Share guidance to a new range of $092 to $096[22] - GNL reaffirms its Net Debt to Adjusted EBITDA range of 65x to 71x[22] - GNL's liquidity totaled $10 billion in Q2 2025[36] Portfolio Transformation & Leasing Activity - GNL completed the final phases of the ~$18 billion Multi-Tenant Portfolio Sale, transforming into a pure-play net-lease REIT[11] - GNL achieved 60% renewal spreads and increased occupancy to 98% across the portfolio[12] - GNL's total non-core dispositions reach over $30 billion[24] - GNL repurchased 102 million shares for a total of $77 million[13] Balance Sheet & Credit Rating - S&P upgraded GNL's corporate credit rating to BB+ from BB[12] - GNL reduced net debt by $20 billion since Q2'24[13, 29] - GNL refinanced its Revolving Credit Facility, extending weighted average debt maturity to 37 years[11, 13]

Financial Performance - Global Net Lease (GNL) reported quarterly funds from operations (FFO) of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, but down from $0.33 per share a year ago, indicating a FFO surprise of +20.00% [1] - The company posted revenues of $124.91 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 18.37%, compared to $203.29 million in revenues from the same quarter last year [2] - Over the last four quarters, GNL has surpassed consensus FFO estimates three times, but has only topped consensus revenue estimates once [2] Stock Performance - GNL shares have declined approximately 5.9% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The current consensus FFO estimate for the upcoming quarter is $0.22 on revenues of $138.07 million, and for the current fiscal year, it is $0.87 on revenues of $614.37 million [7] Industry Outlook - The REIT and Equity Trust - Other industry, to which GNL belongs, is currently ranked in the top 40% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - The performance of GNL's stock may be influenced by the overall industry outlook, as empirical research indicates a strong correlation between near-term stock movements and trends in estimate revisions [5][8]

[Financial Performance and Position](index=6&type=section&id=Financial%20Performance%20and%20Position) 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](index=6&type=section&id=Key%20Metrics) 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](index=7&type=section&id=Consolidated%20Financial%20Statements) 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](index=7&type=section&id=Consolidated%20Balance%20Sheets) 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](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) 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](index=9&type=section&id=Non-GAAP%20Measures) 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](index=11&type=section&id=Debt%20and%20Capital%20Structure) 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](index=11&type=section&id=Debt%20Overview) 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](index=36&type=chunk) - The debt is primarily denominated in U.S. Dollars (**80%**), followed by Euros (**19%**) and Canadian Dollars (**1%**)[35](index=35&type=chunk) [Portfolio Overview](index=12&type=section&id=Portfolio%20Overview) 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](index=12&type=section&id=Lease%20Profile) 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](index=12&type=section&id=Future%20Minimum%20Lease%20Rents) 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](index=17&type=section&id=Lease%20Expirations) 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](index=13&type=section&id=Portfolio%20Diversification) The company's portfolio is diversified across property types, tenant industries, and geographies [Top Twenty Tenants](index=15&type=section&id=Top%20Twenty%20Tenants) 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](index=44&type=chunk) 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](index=13&type=section&id=Diversification%20by%20Property%20Type) 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](index=14&type=section&id=Diversification%20by%20Tenant%20Industry) 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](index=42&type=chunk)[43](index=43&type=chunk) [Diversification by Geography](index=16&type=section&id=Diversification%20by%20Geography) 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](index=3&type=section&id=Non-GAAP%20Definitions) 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](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) 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](index=4&type=chunk)[8](index=8&type=chunk) - 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](index=9&type=chunk)[10](index=10&type=chunk) - 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](index=16&type=chunk)[17](index=17&type=chunk) - 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](index=18&type=chunk)

Core 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]

Core Viewpoint - Global Net Lease, Inc. (GNL) is set to release its financial results for the second quarter of 2025 on August 6, 2025, after market close [1] Group 1: Financial Results Announcement - GNL will announce its second quarter financial results for the period ending June 30, 2025, on August 6, 2025 [1] - The results will be discussed in a conference call scheduled for August 7, 2025, at 11:00 a.m. ET [2] Group 2: Conference Call Details - The conference call will include a question-and-answer session following the management's prepared remarks [2] - Dial-in instructions for the conference call are provided, including toll-free and international numbers [4] Group 3: Company Overview - Global Net Lease, Inc. is a publicly traded real estate investment trust (REIT) listed on the NYSE, focusing on acquiring and managing income-producing net lease assets globally [5]

Core Viewpoint - Global Net Lease, Inc. has declared a dividend of $0.190 per share of common stock, payable on July 16, 2025, to stockholders of record as of July 11, 2025 [1]. Company Overview - Global Net Lease, Inc. is a publicly traded real estate investment trust (REIT) listed on the NYSE, focusing on acquiring and managing a global portfolio of income-producing net lease assets across the United States and Western and Northern Europe [3]. - The company pays dividends on a quarterly basis in arrears during the first month following the end of each fiscal quarter, unless otherwise specified [2].

Core Viewpoint - Global Net Lease, Inc. has received a credit rating upgrade from S&P Global, reflecting the positive impact of its recent $1.8 billion multi-tenant portfolio sale, which significantly reduced its debt [1][2][3]. Group 1: Credit Rating Upgrade - S&P Global upgraded Global Net Lease's corporate credit rating to BB+ from BB [1]. - The issue-level rating on GNL's unsecured notes was raised to investment-grade BBB- from BB+ [1]. Group 2: Portfolio and Financial Strength - The sale of the multi-tenant portfolio has resulted in a streamlined portfolio characterized by diversified, long-term triple-net leases, a broad tenant base, minimal near-term lease expirations, and high occupancy [2]. - The CEO of GNL emphasized that the credit rating upgrade validates the company's efforts to strengthen its balance sheet and portfolio through a disciplined capital strategy aimed at enhancing shareholder value [3]. Group 3: Future Commitments - The company is committed to further improving its financial position by continuing to reduce leverage and lower its cost of capital [3].

Core Insights - Global Net Lease, Inc. (GNL) has completed the final phase of its multi-tenant portfolio sale, generating approximately $313 million in gross proceeds, bringing the total to $1.8 billion [1][2] - The sale simplifies GNL's portfolio, transitioning it to a pure-play net lease owner and operator, expected to yield approximately $6.5 million in recurring annual G&A savings [2][3] - The CEO of GNL emphasized that divesting multi-tenant assets has strengthened the company's balance sheet and improved liquidity, with a focus on achieving an investment-grade credit rating [3] Financial Impact - The third phase of the portfolio sale generated $313 million, contributing to a total of $1.8 billion from the entire portfolio sale [1] - GNL plans to use the net proceeds to reduce leverage by paying down the outstanding balance on its Revolving Credit Facility [1] - The transition to a single-tenant net lease model is expected to create significant operational efficiencies and reduce annual capital expenditures [2] Strategic Focus - The completion of the multi-tenant portfolio sale marks GNL's evolution into a pure-play single-tenant net lease company, enhancing operational streamlining and portfolio quality [3] - The company aims to lower its cost of capital and increase financial stability through improved credit ratings [3] - GNL's strategic focus is on acquiring and managing income-producing net lease assets across the U.S. and Europe [4]

Core Viewpoint - Global Net Lease, Inc. (GNL) is successfully executing a multi-phase sale of its multi-tenant portfolio, with the second phase generating approximately $400 million in gross proceeds, and is on track to complete the final phase by the end of Q2 2025 [1][2][3]. Group 1: Sale Details - The second phase of the sale included 28 encumbered properties and closed on June 10, 2025, generating approximately $400 million in gross proceeds [1]. - The first phase of the multi-tenant portfolio sale was completed in March 2025, generating approximately $1.1 billion in gross proceeds [3]. Group 2: Future Plans - GNL plans to complete the third and final phase of the sale, consisting of 12 encumbered properties, by the end of Q2 2025 [2]. - The net proceeds from the final two phases are expected to be used to reduce leverage by paying down the outstanding balance on GNL's Revolving Credit Facility [2]. Group 3: Strategic Goals - The CEO of GNL emphasized that the sale is part of a strategic plan to lower leverage, transform to a dedicated single-tenant portfolio, and reinforce the company's balance sheet while maintaining strong liquidity [3]. - The company aims to leverage the financial flexibility created through these sales to support long-term growth and strengthen its capital structure [3]. Group 4: Company Overview - Global Net Lease, Inc. is a publicly traded internally managed real estate investment trust focused on acquiring and managing a global portfolio of income-producing net lease assets across the U.S. and Western and Northern Europe [4].

Core Viewpoint - Global Net Lease, Inc. has appointed Robert Kauffman as Non-Executive Chairperson of its Board of Directors, succeeding Sue Perrotty, who will remain on the Board as an independent director [1][3]. Group 1: Leadership Changes - Robert Kauffman, a Co-Founder and former member of the Board of Directors of Fortress Investment Group, joined the GNL Board in March 2024 [2]. - Michael Weil, CEO of GNL, expressed excitement about Kauffman's appointment, highlighting his active role in strategic initiatives and extensive experience in real estate and capital markets [3]. - Kauffman acknowledged the importance of his new role and emphasized GNL's efforts to streamline its portfolio and enhance financial flexibility [4]. Group 2: Company Overview - Global Net Lease, Inc. is a publicly traded internally managed real estate investment trust focusing on acquiring and managing a global portfolio of income-producing net lease assets across the U.S. and Western and Northern Europe [4].