Global Net Lease

GNL

Market cap $1.98B

Not Every REIT Joined The Rally: Part 2 focuses on laggards and in-line performers - sectors where recovery timelines slipped, results underwhelmed, or elevated rates exposed lingering balance sheet issues. Weakness centered on Farmland, Commercial Mortgage, Lab Space, and Self-Storage REITs, where delayed troughs, credit provisions, book-value pressure, weak rents, and refinancing constraints persisted. Mortgage Stress Hasn't Fully Cleared: Commercial mortgage REITs still faced multifamily bridge-loan and office credit stress, while residential mortgage REITs saw book values pressured by rate volatility and uneven dividend-coverage.

REIT earnings results were considerably better than consensus expectations, with 58 REITs - or 59% - raising full-year FFO guidance, well above the typical Q1 raise rate of 40-45%. REITs have extended their year-to-date outperformance despite the recent jump in interest rates, as better earnings results and improving property-level trends helped offset renewed macro pressure. Upside standouts included Hotel, Senior Housing, Data Center, Billboard, Cold Storage, Net Lease, and Retail REITs. Residential REITs saw improving rent growth trends as supply growth finally eases.

Global Net Lease NYSE: GNL reported first-quarter 2026 results and outlined a strategic shift toward growth through industrial acquisitions and office dispositions, highlighted by its planned all-stock acquisition of Modiv Industrial.

I highlight three REITs: Gladstone Commercial, Global Net Lease, and Dynex Capital that exhibit elevated risk and 'sucker yields.' GOOD's external management, high payout ratio, and lingering office exposure undermine dividend safety and long-term value. GNL's aggressive M&A, persistent over-leverage, and unsustainable dividend coverage signal ongoing dilution and risk for shareholders.

Global Net Lease, Inc. (GNL) Q1 2026 Earnings Call Transcript

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NEW YORK & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of Modiv Industrial, Inc. (“the Company”) (NYSE: MDV) to Global Net Lease, Inc. (NYSE: GNL). Under the terms of the proposed transaction, Modiv shareholders are expected to own approximately 11% of the combined company. KSF is seeking to determine whether this consideration and the process that led to i.

Closed Plus Disposition Pipeline Totaling  $132 Million, of Which 68% Are Office Sales, Further Advancing Strategic Reduction in Office Exposure Reduced Net Debt by $1.3 Billion Year-Over-Year; Increased Liquidity to  $911 Million and Revolving Credit Facility Capacity to $1.5 Billion Decreased Annualized G&A Expense by 25% Year-Over-Year, Representing $16 Million in Savings Entered Into Definitive Merger Agreement to Acquire Modiv Industrial in $535 Million All-Stock Transaction Immediate 4% Accretion Expected to AFFO in Leverage-Neutral Transaction Reports Q1'26 AFFO Per Share of $0.21 and Reaffirms Full-Year Guidance, Including AFFO Per Share Guidance of $0.80 to $0.84 ; GNL to Update Guidance Upon Closing of Modiv Acquisition NEW YORK, May 05, 2026 (GLOBE NEWSWIRE) -- Global Net Lease, Inc. (NYSE: GNL) (“GNL” or the “Company”), a publicly traded real estate investment trust that focuses on acquiring and managing a global portfolio of income producing net lease assets across the United States, and Western and Northern Europe, announced today its financial and operating results for the quarter ended March 31, 2026. Acquisition of Modiv Industrial, Inc. GNL has entered into a definitive merger agreement to acquire Modiv Industrial, Inc. (“Modiv”) in an all-stock transaction with a fixed exchange ratio of 1.975, to lock in the 4% accretion, at an enterprise value of approximately $535 million Transaction, once closed, is expected to be immediately 4% accretive to AFFO per share, and is structured to be leverage-neutral within GNL's stated guidance range of 6.5x to 6.9x to maintain GNL's balance sheet strength and preserve financial flexibility Once closed, expected to expand GNL's exposure to high-quality industrial assets, supported by a 15.0 year weighted average lease term1, 2.4% average annual rent escalations2, and a well-recognized tenant base of leading global brands, with 45% of annual base rent derived from investment-grade tenants3 Transaction is expected to close in third quarter of 2026, subject to customary closing conditions First Quarter 2026 Highlights Revenue was $109.3 million, compared to $132.4 million in first quarter 2025, primarily reflecting the impact of asset dispositions, including the $1.8 billion multi-tenant retail portfolio sale in 2025 Net loss attributable to common stockholders was $16.0 million, compared to a net loss of $200.3 million in first quarter 2025 Adjusted Funds from Operations (“AFFO”)4 was $43.9 million, or $0.21 per share, compared to $66.2 million in first quarter 2025, or $0.29 per share Continued to use net proceeds from non-core asset sales to reduce leverage and strengthen the balance sheet; reduced net debt by $1.3 billion since first quarter of 2025 Increased liquidity to $911.1 million and Revolving Credit Facility capacity to $1.5 billion in first quarter 2026, compared to $499.1 million and $1.4 billion, respectively, in first quarter 2025 Year-to-date closed plus disposition pipeline totaling $132 million5, of which 68% is comprised of office sales, further advancing the Company's strategic initiative to reduce its office exposure; sales include $38 million of occupied assets closed or under contract at a 7.9% cash cap rate6, with the remaining dispositions primarily consisting of vacant assets that the Company expects to eliminate over $1 million of annualized NOI drag Repurchased 19.7 million shares of outstanding common stock under the Share Repurchase Program announced in February 2025, at a weighted average price of $8.05, for a total of $158.2 million as of May 1, 2026; this includes 4.2 million shares for a total of $38.4 million repurchased in first quarter 2026 Building on the successful repositioning of the portfolio, including the $1.8 billion multi-tenant retail portfolio sale, GNL lowered its annualized G&A expense by 25% year-over-year to $49 million, down from $65 million in first quarter 2025, reflecting the benefits of portfolio simplification and operational efficiencies Increased portfolio occupancy to 97% compared to 95% in first quarter 2025, with office occupancy increasing to 99% in first quarter 2026 compared to 95% in first quarter of 2025 Leased over 141,000 square feet, achieving a 5.1% renewal leasing spread and a weighted average renewal term of 5.8 years, resulting in over $1.6 million of new straight-line rent Weighted average annual rent increase of 1.5% provides organic rental growth, excluding 20.1% of the portfolio with CPI-linked leases that have historically experienced significantly higher rental increases Reduced capital expenditures to $1.6 million in the first quarter 2026 from $9.8 million in the first quarter 2025, reflecting a more streamlined portfolio and supporting enhanced cash flow Sector-leading tenant quality with 64% of annualized straight-line rent coming from investment-grade or implied investment-grade tenants7, an increase from 60% in first quarter 2025 “GNL's performance in the first quarter of 2026 builds on our accomplishments in 2025, a pivotal year in which we meaningfully reduced leverage, reinforced our credit profile, and elevated the overall quality of our portfolio,” said Michael Weil, CEO of GNL.

NEW YORK, May 04, 2026 (GLOBE NEWSWIRE) -- Class Action Attorney Juan Monteverde with Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm in the 2025 ISS Securities Class Action Services Report. The firm is headquartered at the Empire State Building in New York City and is investigating Global Net Lease, Inc. (NYSE:  GNL ) related to its merger with Modiv Industrial, Inc. Under the terms of the proposed transaction, Modiv Industrial shareholders are expected to own approximately 11% of the combined company. Is it a fair deal?

Immediate 4% Accretion to AFFO per Share in All-Stock, Leverage-Neutral Transaction Complementary High-Quality Industrial Net-Lease Assets Enhance Existing Portfolio No External Capital Required to Complete Leverage-Neutral Transaction NEW YORK and DENVER, May 04, 2026 (GLOBE NEWSWIRE) -- Global Net Lease, Inc. (NYSE: GNL) (“GNL” or the “Company”) and Modiv Industrial, Inc. (NYSE: MDV) (“Modiv” ) announced today that the two companies have entered into a definitive merger agreement under which GNL will acquire Modiv in an all-stock transaction valued at an enterprise value of approximately $535 million. The transaction, once completed, will provide GNL with an attractive portfolio of high-quality mission-critical industrial properties across the United States while also providing Modiv stockholders with an immediate 25% expected increase in annual dividends and the opportunity to participate in the future growth of the combined company.