Global Net Lease, Inc. · NYSE:GNL
Global Net Lease — Q1 2024 Earnings Presentation
26 slides from Global Net Lease's earnings presentation, May 8, 2024
Slide 1: Global Net Lease First Quarter 2024 Investor Presentation
Global Net Lease Pictured – McLaren Campus in Woking, U.K. First Quarter 2024 Investor Presentation
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains statements that are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the intent, belief or current expectations of us, our operat
Slide 3: Projections and Credit Ratings
PROJECTIONS This presentation also includes estimated projections of future operating results. These projections are 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 presentatio
Slide 4: GNL Accomplishments
GNL ACCOMPLISHMENTS Q1’24 included 6% AFFO per share growth, strong leasing momentum, efficient balance sheet execution and continued progress on our disposition initiative Robust Leasing Activity Showcased strong asset management capabilities through robust leasing activity, including 6.1% renewal
Slide 5: First Quarter 2024 Financial Highlights
FIRST QUARTER 2024 FINANCIAL HIGHLIGHTS GNL has reaffirmed its full-year 2024 guidance, maintaining an expected AFFO per share range of $1.30 to $1.40 and a Net Debt to Adjusted EBITDA range of 7.4x to 7.8x Debt Capitalization ($mm) Q1’24 Earnings Summary ($mm) Q1’24 Total Secured Debt $2,618 Net Lo
Slide 6: Efficient Balance Sheet Execution and Strategy
EFFICIENT BALANCE SHEET EXECUTION AND STRATEGY Balance Sheet Execution Effectively Addressing Near-Term Maturities ▪ GNL effectively executed its balance sheet strategy, which involved ▪ Addressed 62% of debt that had scheduled maturities in 2024 with reducing exposure to variable rate debt and esta
Slide 7: Successfully Executing Disposition Plan
SUCCESSFULLY EXECUTING DISPOSITION PLAN Expected # of Disposition Price Cash Wtd. Avg. Lease Disposition Name Closing Properties (in mm)(1) Cap Rate(2) Term Remaining(3) Closed (As of 5/1/24): Truist Properties (ST Retail) Closed 15 $34.5 – – Shippensburg Marketplace (MT Retail) Closed 1 $6.6 – – Oc
Slide 8: Substantial Merger Synergies and Internalization Savings
SUBSTANTIAL MERGER SYNERGIES AND INTERNALIZATION SAVINGS As a direct result of the Merger, GNL has already recognized over $70 (2) million of annualized cost synergies and is on track to recognize $75 million that was estimated at transaction close(1) ($mm) Synergies Recognized in Q1 2024 (000’s)(2)
Slide 9: Portfolio Snapshot
PORTFOLIO SNAPSHOT Portfolio Overview Q1’24 Properties 1,277 Square Feet (millions) 66.9 % Leased 93% Weighted Average Remaining Lease Term (“WALT”)(1) 6.5 years % of SLR Derived from United States & Canada vs. Europe 80% | 20% Industries 94 Tenants 796 % of SLR derived from Investment Grade Tenants
Slide 10: Well Positioned Portfolio with Key Metrics
WELL POSITIONED PORTFOLIO WITH KEY METRICS Industrial & Multi-Tenant Single-Tenant Single-Tenant Total Portfolio(1) Industrial Distribution + Retail + Retail + Office Number of 1,277 218 109 861 89 Properties Square Feet 66.9 34.0 16.4 7.8 8.6 (millions) SLR $720 $231 (32%) $200 (28%) $148 (21%) $14
Slide 11: High-Quality Investment-Grade Tenants
HIGH-QUALITY INVESTMENT-GRADE TENANTS Top ten tenants represent 21.0% of SLR with no single tenant accounting for more than 3.1% Top Ten Tenants Tenant Credit Rating Country Property Type % of SLR(1) Implied: Baa2 U.S. Single-Tenant Retail 3.1% Actual: Baa2 U.S. / Canada Industrial & Distribution 2.
Slide 12: Geographically Diversified with a Global Presence
GEOGRAPHICALLY DIVERSIFIED WITH A GLOBAL PRESENCE Geographic Presence FIN NEW PACIFIC BRUNSWICK NORTHWEST NB WA MIDWEST ME NETH NORTHEAST MT ND VT NH LUX OR MA UK MN NY ID SD WI RI MI GER WY NJ CT PA IA DE MID- CI NE OH NV IL IN MD UT WV VA DC ATLANTIC CA CO NC KS MO KY FR NC TN OK SC PACIFIC AZ AR
Slide 13: Attractive Lease Maturity Schedule
ATTRACTIVE LEASE MATURITY SCHEDULE Unique investment mix of stable, long-term, single-tenant net-leased and strategically located suburban shopping centers results in a favorable lease maturity schedule and a Weighted Average Remaining Lease Term of 6.5 years (1) Multi-Tenant Retail Lease Maturity S
Slide 14: Continued Leasing Momentum Driven by Strong Asset Management
CONTINUED LEASING MOMENTUM DRIVEN BY STRONG ASSET MANAGEMENT CAPABILITIES Leasing momentum continues in Q1 2024 with 78 lease renewals and new leases, combining for nearly 1.4 million square feet and over $17 million of straight-line rent Q1 2024(1) Leasing and Renewal Activity Single-Tenant Multi-T
Slide 15: Diversified and Stable Tenant Base
DIVERSIFIED AND STABLE TENANT BASE Asset Diversification Credit Rating(1)(2) Total Portfolio Annualized SLR by Segment Not Rated Single-Tenant 6% Single-Tenant Retail Office 21% 20% Single-Tenant Non-Investment Investment Grade (2) $719.6 72% Grade 58% million 36% Multi-Tenant Industrial & Retail Di
Slide 16: Industrial & Distribution Overview
INDUSTRIAL & DISTRIBUTION OVERVIEW Segment Highlights Lease Maturity Schedule (% of Total SF) 32% 218 34.0M 7.1 Years Weighted Average Lease Term Total Portfolio(1) Properties Square Feet 31.5% 18% 94% 7.1 Years CPI Increases(1) Leased WALT 8.4% 6.6% 57% 92% 1.5% 3.0% Average Annual 0.7% 1.6% IG Ten
Slide 17: Multi-Tenant Retail Overview
MULTI-TENANT RETAIL OVERVIEW Segment Highlights Lease Maturity Schedule (% of Total SF) 5.3 Years Weighted Average Lease Term 28% 109 16.4M Total Portfolio(1) Properties Square Feet Anchor Tenants: In-Line Tenants: 5.6 Years 4.0 Years 10.9% $200M 91.1% 5.3 Years SLR Leased + Pipeline WALT 3.0% 3.6%
Slide 18: Single-Tenant Retail Overview
SINGLE-TENANT RETAIL OVERVIEW Segment Highlights Lease Maturity Schedule (% of Total SF) 21% 861 7.8M 8.1 Years Weighted Average Lease Term Total Portfolio(1) Properties Square Feet $148M 96% 8.1 Years 7.5% SLR Leased WALT 69% 85% 1.6% 1.3% 0.8% 1.0% 1.4% Average Annual 0.1% IG Tenants(1) Rent Escal
Slide 19: Single-Tenant Office Overview
SINGLE-TENANT OFFICE OVERVIEW Segment Highlights Lease Maturity Schedule (% of Total SF) 20% 89 8.6M 4.8 Years Weighted Average Lease Term Total Portfolio(1) Properties Square Feet $141M 93% 67% SLR Leased IG Tenants(1) 5.9% 1.7% 92% 69% 1.5% 1.5% 1.8% 1.1% 1.1% Average Annual Rent Escalators(1) Mis
Slide 20: Leadership Overview
LEADERSHIP OVERVIEW Management Board of Directors Michael Weil, Chief Executive Officer & President Independent Directors Previously served as CEO of The Necessity Retail REIT Sue Perrotty, Non-Executive Chairperson of the Board of Directors Currently serves as President and Chief Executive Offi
Slide 21: Appendix: Financial Definitions
APPENDIX: FINANCIAL DEFINITIONS Non-GAAP Financial Measures This section discusses non-GAAP financial measures we use to evaluate our performance, including Funds from Operations (“FFO”), Core Funds from Operations (“Core FFO”), Adjusted Funds from Operations (“AFFO”), Adjusted Earnings before Inter
Slide 22: Appendix: Financial Definitions
APPENDIX: FINANCIAL DEFINITIONS The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, and straight-line amortization of intangibles, which implies that the value of a real estate asset diminishes predictably over time. We
Slide 23: Appendix: Financial Definitions
APPENDIX: FINANCIAL DEFINITIONS Funds from Operations, Core Funds from Operations and Adjusted Funds from Operations (Cont’d) Adjusted Funds From Operations (cont’d) In calculating AFFO, we also exclude certain expenses which under GAAP are characterized as operating expenses in determining operatin
Slide 24: Appendix: Financial Definitions
APPENDIX: FINANCIAL DEFINITIONS NOI is a non-GAAP financial measure equal to net income (loss), the most directly comparable GAAP financial measure, less discontinued operations, interest, other income and income from preferred equity investments and investment securities, plus corporate general and
Slide 25: Non-GAAP Reconciliations
NON – GAAP RECONCILIATIONS (Amounts in thousands) Three Months Ended 31-Mar-24 EBITDA: Net loss $(23,751) Depreciation and amortization 92,000 Interest expense 82,753 Income tax expense 2,388 EBITDA 153,390 Impairment charges 4,327 Equity-based compensation 1,973 Merger, transaction and other costs(
Slide 26: Non-GAAP Reconciliations
NON – GAAP RECONCILIATIONS (Amounts in thousands) Three Months Ended 31-Mar-24 Funds from operations (FFO): Net loss attributable to common stockholders (in accordance with GAAP) $(34,687) Impairment charges 4,327 Depreciation and amortization 92,000 Gain on dispositions of real estate investments (