CORPORATE OVERVIEW
Global Net Lease, Inc. (NYSE: GNL) is a publicly traded real estate investment trust listed on the NYSE focused on acquiring a global portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant, mission critical income producing net-leased assets across the United States, Western and Northern Europe, and Necessity Retail assets in strategic locations.
On September 12,2023 Global Net Lease Inc. (NYSE: GNL) ("Global Net Lease" or "GNL") and The Necessity Retail REIT Inc. (NASDAQ: RTL) ("Necessity Retail REIT" or "RTL") announced today that they have completed the previously announced merger between GNL and RTL, including the internalization of both GNL's and RTL's advisory and property management functions. Completion of the merger follows approval by the shareholders of both companies.
OUR PORTFOLIO
GNL owns over 1,300 properties, encompassing over 66 million square feet in 11 countries.
Our well-defined investment strategy and rigorous underwriting process was used to assemble a high-quality, long duration, primarily net lease portfolio of industrial and distribution, necessity retail and mission critical office properties in the U.S. and Western Europe.
OUR TENANTS INCLUDE WELL-ESTABLISHED HOUSEHOLD NAMES
Strong Acquisitions, Leasing and Asset Management Activities Drive Results
Fourth Quarter 2023 Highlights
As a direct result of the merger with The Necessity Retail REIT, Inc. (the “Merger”) and internalization of advisory and property management functions (the “Internalization”), GNL recognized $68 million of annualized synergies and is currently on track to recognize the full $75 million balance by third quarter 20242
Revenue was $206.7 million in fourth quarter 2023
Net loss was $59.5 million, or $0.26 per diluted share in fourth quarter 2023
NOI was $169.7 million in fourth quarter 2023
Core FFO was $48.3 million, or $0.21 per diluted share in fourth quarter 2023
AFFO was $71.7 million, or $0.313 per diluted share in fourth quarter 2023. In fourth quarter 2023, post-merger, GNL incurred an elevated $5.5 million European income tax expense in the quarter and $2.3 million one-time write offs primarily related to reimbursements. The Company has completed a European tax restructure that is expected to reduce income tax expense immediately beginning in first quarter 2024
Completed 70 lease renewals and new leases combining for over 2.1 million square feet across the portfolio, resulting in over $19 million of net new straight-line rent
Portfolio maintained occupancy of 96% leased with minimal near-term lease maturities and a weighted average remaining lease term of 6.8 years4
Renewal leasing spread of 6% across the entire portfolio, including an 8% renewal spread for the single-tenant portfolio and 2% renewal spread for the multi-tenant suburban portfolio
New leases that were completed in fourth quarter 2023 have a weighted average lease term of 9.2 years, while the renewals that were completed in fourth quarter 2023 have a weighted average lease term of 6.1 years
Weighted average annual cash rent increase of 1.3% provides organic rental growth
Sector-leading 58% of annualized straight-line rent comes from Investment Grade or implied Investment Grade tenants5
Portfolio is comprised of diversified and high-quality tenants with the top 10 tenants totaling 21% of the overall portfolio’s straight-line rent and the largest tenant contributing only 3.1% of total straight-line rent
Weighted-average debt maturity at the end of 2023 was 3.2 years with minimal debt maturity in 2024, and 80% fixed debt across the portfolio
In fourth quarter 2023, GNL closed on $76.1 million of vacant and near-term expiration dispositions, with the proceeds used to begin the Company’s debt paydown strategy and currently have a $148 million6 disposition pipeline that is expected to close by second quarter 2024
Asset Management and Leasing
Our asset management team’s superior execution, excellent retail leasing experience and long-standing relationships with national retailers deliver strong leasing results for GNL.
We understand the important role a great brick and mortar location has for retailers and their customers.
Our asset managers are hands-on leaders and work to ensure that our shopping centers have a complementary mix of national brand anchors and local retailers – creating a place where the community prefers to shop.