Global Net Lease (GNL) Q2 2024 earnings summary

Executive summary

• On track to achieve or exceed 2024 business plan objectives, including leverage reduction, AFFO per share growth, and strategic asset dispositions, with $728M in closed and pipeline transactions at a 7.3% cash cap rate as of August 1.

• Raised 2024 disposition guidance to $650M–$800M, up from $400M–$600M, and addressed all 2024 debt maturities, with no maturities until July 2025.

• Achieved 99% of $75M anticipated cost synergies from merger/internalization, with full realization expected by Q3 2024.

• Portfolio consists of 1,242 properties (64.3M sq ft), 94% leased, with a 6.5-year weighted average lease term as of June 30, 2024.

• Portfolio composition: 31% Industrial & Distribution, 28% Multi-Tenant Retail, 21% Single-Tenant Retail, 20% Office; 80% in U.S./Canada, 20% in Europe.

Financial highlights

• Q2 2024 revenue was $203.3M; net loss attributable to common stockholders was $46.6M ($0.20/share); AFFO grew 2% to $76.7M ($0.33/share).

• Core FFO was $50.9M ($0.22/share); NAREIT FFO was $36.2M.

• Net debt to Adjusted EBITDA improved to 8.1x from 8.4x last quarter.

• Interest coverage ratio was 2.4x; weighted average interest rate was 4.7%.

• Liquidity of ~$220M and $214M of capacity on revolving credit facility at quarter end.

Outlook and guidance

• Reaffirmed 2024 AFFO per share guidance of $1.30–$1.40 and net debt to Adjusted EBITDA range of 7.4x–7.8x.

• Disposition guidance increased to $650M–$800M for 2024, with expected cash cap rate for dispositions at 7–8%.

• Expect continued leverage reduction and stable or growing AFFO per share in the second half of 2024.

• Management expects cash from operations and existing cash to be sufficient to fund near- and long-term dividend payments and capital expenditures.