Global Net Lease, Inc. · NYSE:GNL
Global Net Lease — Investor Presentation (November 2017)
28 slides from Global Net Lease's investor presentation, Nov 13, 2017
Slide 1: Global Net Lease November 2017 Investor Presentation
GLOBAL NET LEASE November 2017 Investor Presentation N IMBLE S TORAGE – S AN J OSE , CA
Slide 2: Overview
2 OVERVIEW Long Duration Leases to Investment Grade Rated Tenants (1) Proactive Asset Management to Drive Long Term Portfolio Value High - Quality, Mission Critical, Diversified Portfolio Differentiated Strategy with International Exposure Highly Experienced Management Team Ability to Capitalize on
Slide 3: Well Balanced Portfolio
3 WELL BALANCED PORTFOLIO As of September 30, 2017 1. Me tric based on SLR. Refer to SLR definition included in the footnotes to page 4 2. Refer to Investment Grade Rating definition included in the footnotes to page 2. Credit Rating (1) Tenant Industry (1) Geography (1) Asset Type (1) (2) Not Rated
Slide 4: Portfolio Highlights
4 PORTFOLIO HIGHLIGHTS Properties 313 Square Feet (millions) 22.3 Tenants 95 Industries 40 Countries 7 Leased 99.4% Weighted Average Remaining Lease Term (1) 9.1 years % of SLR derived from Investment Grade Tenants (2)(3) 75.8% % of leases with contractual rent increases (3)(4) 94% Portfolio Overvie
Slide 5: Well Diversified Tenant Base
5 Tenant Rating Country Property Type % of SLR (1) Baa2** U.S. Distribution 5% Aaa ** U.S. Office 5% Baa3* U.K. Office 5% Baa3* GER Office 5% Baa1 NETH Office 4% Aa1** FIN Industrial 4% Ba1** U.S. Retail 3% Baa2* U.K. Distribution 3% Aa3 U.S. Office 3% Baa2 U.S. Office 3% WELL DIVERSIFIED TENANT BAS
Slide 6: Focus on High-Quality Tenants
6 Financial Service Providers Government Services Multinational Corporations FOCUS ON HIGH - QUALITY TENANTS $2.4t n Only Focused on Markets with Quality Sovereign Debt Ratings (S&P) U.S. Luxembourg Germany The Netherlands Finland U.K. France AA+ AAA AAA AAA AA+ AA AA Best - in - class portfolio lea
Slide 7: Differentiated Investment Strategy
7 DIFFERENTIATED INVESTMENT STRATEGY Geography Asset Type Property Fundamentals Credit Quality Structure and Pricing Focused on single - tenant commercial properties to generate superior risk - adjusted returns • Focus on the U.S. and strong sovereign debt rated countries in Continental Europe • Cri
Slide 8: Geographic Balance
8 GEOGRAPHIC BALANCE U.S. Number of Assets: 244 Remaining Lease Term: 8.6 years (1) % of GNL SLR: 48.4% (2) Europe Number of Assets: 69 Remaining Lease Term: 9.5 years (1) % of GNL SLR: 51.6% (2) 1. Refer to basis for metric calculation included in the footnotes to page 4. 2. Metric based on SLR. Re
Slide 9: GNL Debt Structure Progress
9 GNL DEBT STRUCTURE PROGRESS GNL continued to improve its capital structure throughout 2017 by extending debt maturities, maintaining a low cost of debt and optimizing the debt structure for continued future growth. $1,596 $1,496 $1,473 $1,473 $100 $107 $759 $773 $795 $982 $698 $722 $645 $525 $0 $5
Slide 10: Active Asset Management
10 ACTIVE ASSET MANAGEMENT Retail 15.0% 9/30/2016 (1) Retail 9.8% 9/30/2017 (1) • Active management reduces risk and curates value over the long term • Focused on acquiring office and industrial assets • Reduced retail exposure to 9.8% through the sale of 31 assets 1. Metric based on SLR. Refer to S
Slide 11: Fully Aligned Management Structure
11 Chris Masterson Chief Financial Officer, Treasurer and Secretary FULLY ALIGNED MANAGEMENT STRUCTURE Fully integrated external management team creates highly scalable platform with an acquisition pipeline generated by a proven, country - focused origination network No transactional fees allows for
Slide 12: Efficient Capital Allocation
12 EFFICIENT CAPITAL ALLOCATION Dispositions Acquisitions Tenant # of Props Asset Type Acquisition Date Purchase Price (millions) Going In Cap Rate Cott Beverages 1 Distribution 1Q 2017 $10.50 7.30% FedEx Ground 1 Distribution 1Q 2017 $6.10 7.20% FedEx Ground 1 Distribution 1Q 2017 $13.70 7.20% Brid
Slide 13: Case Study: Tokmanni Group
13 CASE STUDY: TOKMANNI GROUP Geographical Overview Tenant Outlook Pricing Value In 2014 , GNL purchased an 800 , 834 square foot logistics and office headquarters of Tokmanni Group Oy, the largest discount retailer in Finland . Since acquisition, both the tenant as well as the property have shown s
Slide 14: Improved Performance
14 $- $5 $10 $15 $20 $25 $30 $35 $40 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 IMPROVED PERFORMANCE Q3 2017 Q3 2016 % Change Total Revenue $64.9 million $53.3 million +21.8% Operating Income $18.5 million $15.2 million +21.5% AFFO (1) $34.8 million $33.1 million +5.4% W
Slide 15: Debt Overview
15 $1 $133 $290 $330 $45 $421 $227 $- $100 $200 $300 $400 $500 2017 2018 2019 2020 2021 2022 Mortgages Line of Credit Fixed Rate 77.9% Floating rate 22.1% USD 31% EUR 45% GBP 24% DEBT OVERVIEW Net Debt to Enterprise Value (1) 46.7% Net Debt to Adjusted EBITDA (annualized) (1) (2) 7.0x Interest Cover
Slide 16: Investor Inquiries
INVESTOR INQUIRIES 1 - 866 - 902 - 0063 investorrelations@globalnetlease.com www.GlobalNetLease.com
Slide 17: Forward Looking Statements
17 FORWARD LOOKING STATEMENTS This presentation contains certain statements that are the Company’s and Management’s hopes, intentions, beliefs, expectations, or projections of the future and might be considered to be forward - looking statements under Federal Securities laws . Prospective investors
Slide 18: Risk Factors
18 RISK FACTORS The following are some of the risks and uncertainties, although not all risks and uncertainties, that could cause our actual results to differ materially from those presented in our forward - looking statements . See the section entitled “Item 1 A . Risk Factors” in GNL’s Annual Repo
Slide 19: Risk Factors (Continued)
19 RISK FACTORS (CONTINUED) ▪ We may be unable to pay or maintain cash dividends on our 7 . 25 % Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”) . ▪ Our credit facility may limit our ability to pay dividends to holders of Series A Preferred Stock . ▪ We may be unable
Slide 20: Risk Factors (Continued)
20 RISK FACTORS (CONTINUED) ▪ We may be deemed to be an investment company under the Investment Company Act of 1940 , as amended (the “Investment Company Act"), and thus subject to regulation under the Investment Company Act . ▪ We may be exposed to risks due to a lack of tenant diversity, investmen
Slide 21: Projections
21 PROJECTIONS ▪ This presentation includes estimated projections of future operating results . These projections were not prepared in accordance with published guidelines of the SEC or the guidelines established by the American Institute of Certified Public Accountants for preparation and presentat
Slide 22: Definitions
22 DEFINITIONS ▪ Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts ("NAREIT"), an industry trade group, has promulgated a measure known as funds from operations ("FFO"), which we believe to be an ap
Slide 23: Definitions (Continued)
23 DEFINITIONS (CONTINUED) ▪ Changes in the accounting and reporting promulgations under GAAP (for acquisition fees and expenses from a capitalization/depreciation model to an expensed - as - incurred model) that were put into effect in 2009 and other changes to GAAP accounting for real estate subse
Slide 24: Definitions (Continued)
24 DEFINITIONS (CONTINUED) ▪ Excluding income and expense items detailed above from our calculation of AFFO provides information consistent with management's analysis of the operating performance of the Company . Additionally, fair value adjustments, which are based on the impact of current market f
Slide 25: Non-GAAP Reconciliations
25 NON – GAAP RECONCILIATIONS Three Months Ended (in thousands) September 30, 2017 September 30, 2016 Adjusted EBITDA Net income $ 2,487 $ 9,016 Depreciation and amortization 29,879 23,482 Interest expense 12,479 8,914 Income tax expense 760 448 Equity based compensation (391) 1,293 Acquisition and
Slide 26: Non-GAAP Reconciliations
26 NON – GAAP RECONCILIATIONS (in thousands) Three Months Ended September 30, 2017 June 30, 2017 March 31, 2017 Funds From Operations (FFO): Net income attributable to stockholders (in accordance with GAAP) $ 2,104 $ 5,200 $ 7,429 Depreciation and amortization 29,879 27,497 27,114 Losses (gains) on
Slide 27: Non-GAAP Reconciliations
27 NON – GAAP RECONCILIATIONS (in thousands) Three Months Ended December 31, 2016 September 30, 2016 June 30, 2016 Funds From Operations (FFO): Net income attributable to stockholders (in accordance with GAAP) $ 15,946 $ 8,943 $ 15,763 Depreciation and amortization 23,405 23,482 23,812 Losses (gains
Slide 28: Non-GAAP Reconciliations
28 NON – GAAP RECONCILIATIONS (in thousands) Three Months Ended March 31, 2016 December 31, 2015 September 30, 2015 Funds From Operations (FFO): Net income attributable to stockholders (in accordance with GAAP) $ 6,488 $ 12,312 $ 5,432 Depreciation and amortization 23,756 23,918 22,949 Proportionate
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