Global Net Lease(GNL)2024-11-06 21:36Financial Performance - The company reported a net loss attributable to common stockholders of 142.5 million for the same period in 2023 [174]. - Net loss attributable to common stockholders was 179.8 million for the same period in 2023, representing a decrease of approximately 12.5% [194]. - Net loss attributable to common stockholders for the three months ended September 30, 2024, was (142,488) thousand for the same period in 2023 [233]. - Core FFO attributable to common stockholders for the three months ended September 30, 2024, was 31,542 thousand in the same period of 2023 [233]. - AFFO attributable to common stockholders for the three months ended September 30, 2024, was 46,929 thousand for the same period in 2023 [233]. Revenue Growth - Total consolidated revenue from tenants increased to 118.2 million in the same period in 2023 [174]. - Total consolidated revenue from tenants increased to 308.3 million in 2023, reflecting a growth of approximately 96.5% [195]. - Revenue from the Industrial & Distribution segment was 53.8 million for the same period in 2023 [176]. - Revenue from the Industrial & Distribution segment was 157.9 million in 2023, marking an increase of about 15.9% [196]. - Revenue from the Multi-Tenant Retail segment surged to 13.4 million in 2023, indicating a significant increase of approximately 1,462.7% [198]. Property and Portfolio Details - As of September 30, 2024, the company owned 1,223 properties with a total of 61.9 million rentable square feet, which were 96% leased, and had a weighted-average remaining lease term of 6.3 years [164]. - The portfolio composition as of September 30, 2024, included 33% Industrial & Distribution, 27% Multi-Tenant retail, 22% Single Tenant retail, and 18% Office properties [164]. - The company’s properties are primarily located in the U.S. and Canada (80%) and Europe (20%) based on annualized rental income [164]. - Approximately 60.5% of the company's rental income on an annualized straight-line basis was derived from Investment Grade rated tenants as of September 30, 2024 [164]. Expenses and Charges - Total consolidated property operating expenses rose to 13.6 million in Q3 2023, reflecting a full quarterly period of expenses from properties acquired from RTL [180]. - The company recorded an impairment charge of approximately 65.7 million in Q3 2023 for four properties [186]. - General and administrative expenses increased to 7.0 million in Q3 2023, mainly due to internalization of management functions [186]. - Interest expense rose to 41.2 million in Q3 2023, attributed to higher non-cash amortization expenses from the REIT Merger [191]. - Depreciation and amortization expense increased to 49.2 million in Q3 2023, due to the impact of the REIT Merger [188]. Cash Flow and Financing Activities - Net cash provided by operating activities was 88.0 million in 2023, despite a net loss of 515.3 million for the nine months ended September 30, 2024, primarily from net proceeds of 730.3 million for the nine months ended September 30, 2024, driven by principal payments on mortgage notes payable of 208.7 million [215]. - As of September 30, 2024, total gross debt outstanding was 1.10 per share, effective from April 2024, down from 241,595,000, compared to $74,452,000 for the same period in 2023, reflecting a significant increase [238]. - The company intends to maintain its status as a REIT, which requires distributing at least 90% of its REIT taxable income annually [241]. Strategic Acquisitions and Internalization - The company completed the acquisition of The Necessity Retail REIT and internalized its advisory and property management functions on September 12, 2023 [165]. - The company completed the Internalization Merger, resulting in the termination of external management agreements and a shift to internal management functions [172]. Foreign Currency Exposure - The company is exposed to foreign currency exchange rate fluctuations and utilizes derivatives to manage this exposure [240]. - The company is exposed to foreign currency fluctuations and may use derivatives to manage this risk, particularly in GBP-USD and EUR-USD exchange rates [240].