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Global Net Lease Announces Sale of Multi-Tenant Portfolio for Approximately $1.8 Billion
GNLGlobal Net Lease(GNL) Newsfilter·2025-02-26 11:00

Core Viewpoint - Global Net Lease, Inc. (GNL) has entered into a binding agreement to sell its multi-tenant portfolio of 100 non-core properties for approximately 1.8billion,whichwillaccelerateitsdeleveragingplanandtransformthecompanyintoapure−play,single−tenantnetleaseentity[1][2][3].Group1:TransactionDetails−Themulti−tenantportfoliosaleisexpectedtocloseinthreephases,withtheunencumberedportfolioclosingbytheendofQ12025andtheencumberedportfolioclosingintwostagesbytheendofQ22025[5].−GNLreceiveda1.8 billion, which will accelerate its deleveraging plan and transform the company into a pure-play, single-tenant net lease entity [1][2][3]. Group 1: Transaction Details - The multi-tenant portfolio sale is expected to close in three phases, with the unencumbered portfolio closing by the end of Q1 2025 and the encumbered portfolio closing in two stages by the end of Q2 2025 [5]. - GNL received a 25 million non-refundable deposit from RCG Ventures at the signing of the agreement [5]. Group 2: Financial Impact - The transaction is projected to reduce GNL's Net Debt to Adjusted EBITDA to a range of 6.5x to 7.1x post-transaction [1][6]. - GNL anticipates completing nearly 3billionindispositionsbytheendof2025sincethestartof2024,enhancingfinancialflexibilityandreducingthecostofcapital[2][6].Group3:StrategicBenefits−Thesalewillsimplifyoperationsbyeliminatingcomplexitiesassociatedwithmulti−tenantretailproperties,leadingtoapproximately3 billion in dispositions by the end of 2025 since the start of 2024, enhancing financial flexibility and reducing the cost of capital [2][6]. Group 3: Strategic Benefits - The sale will simplify operations by eliminating complexities associated with multi-tenant retail properties, leading to approximately 6.5 million in annual G&A savings and reduced capital expenditures [6]. - Key portfolio metrics are expected to improve, including an increase in occupancy to 98%, a weighted average remaining lease term of 6.4 years, and a rise in investment-grade tenants to 66% [6]. Group 4: Share Repurchase Program - Concurrently, GNL's Board of Directors has authorized a share repurchase program for up to $300 million of its outstanding common stock [2][6].