Global Net Lease, Inc. · NYSE:GNL
Global Net Lease — Q3 2024 Earnings Presentation
27 slides from Global Net Lease's earnings presentation, Nov 7, 2024
Slide 1: Global Net Lease Third Quarter 2024 Investor Presentation
Global Net Lease Pictured – McLaren Campus in Woking, U.K. Third 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 timing and consideration related to our anticipated acqu
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 Q3’24 included continued progress in GNL’s strategic disposition initiative, further leverage reduction, increased portfolio occupancy and proactive balance sheet management Robust Leasing Activity Leading to Increased Occupancy Demonstrated strong asset management capabilities t
Slide 5: Third Quarter 2024 Financial Highlights
THIRD QUARTER 2024 FINANCIAL HIGHLIGHTS GNL reaffirms its 2024 AFFO per share guidance range of $1.30 to $1.40 and maintains its Net Debt to Adjusted EBITDA target range of 7.4x to 7.8x. GNL also reaffirms its target for total disposition proceeds, aiming to generate $650 million to $800 million by
Slide 6: Efficient Balance Sheet Strategy & Execution
EFFICIENT BALANCE SHEET STRATEGY & EXECUTION Continued Balance Sheet Execution Successfully Addressed Near-Term Maturities ▪ GNL remains committed to de-risking its balance sheet by reducing ▪ Addressed 100% of the outstanding debt with scheduled maturities in Net Debt to Adjusted EBITDA, which has
Slide 7: Successfully Executing Disposition Plan & Using Net Proceeds to Reduce Leverage
SUCCESSFULLY EXECUTING DISPOSITION PLAN & USING THE NET PROCEEDS TO REDUCE LEVERAGE Closing # of Disposition Price Cash Wtd. Avg. Lease Disposition Name Date Properties (in mm) Cap Rate(1) Term Remaining(2) Closed (as of 11/1/24): Truist Properties (ST Retail) Closed: Q1’24-Q3’24 21 $51.5 – – Shippe
Slide 8: Disposition Plan (Cont'd)
SUCCESSFULLY EXECUTING DISPOSITION PLAN & USING THE NET PROCEEDS TO REDUCE LEVERAGE (CONT’D) Expected # of Disposition Price Cash Wtd. Avg. Lease Disposition Name Closing Properties (in mm)(1) Cap Rate(2) Term Remaining(3) Signed PSA: Non-Refundable Deposit Q4’24 31 $29.6 7.6% 14.3 Years In Due-Dili
Slide 9: Merger Synergies and Internalization Savings Have Exceeded Initial Projections
MERGER SYNERGIES AND INTERNALIZATION SAVINGS HAVE EXCEEDED INITIAL PROJECTIONS As a direct result of the Merger and Internalization, GNL has recognized $85 (1) million of annualized cost synergies, exceeding the initial $75 million projection set at transaction close (2) Synergies Recognized in Q3 2
Slide 10: Portfolio Snapshot
PORTFOLIO SNAPSHOT Portfolio Overview Q3’24 Properties 1,223 Square Feet (millions) 61.9 % Leased 96% Weighted Average Remaining Lease Term (“WALT”)(1) 6.3 years % of SLR Derived from United States & Canada vs. Europe 80% | 20% Industries 89 Tenants 723 % of SLR derived from Investment Grade Tenants
Slide 11: Well Positioned Portfolio with Strong Key Metrics
WELL POSITIONED PORTFOLIO WITH STRONG KEY METRICS Industrial & Multi-Tenant Single-Tenant Single-Tenant Total Portfolio Industrial Distribution + Retail + Retail + Office Number of 1,223 207 103 832 81 Properties Square Feet 61.9 32.0 15.2 7.7 6.9 (millions) SLR(1) $684 $225 (33%) $183 (27%) $151 (2
Slide 12: High-Quality Investment-Grade Tenants
HIGH-QUALITY INVESTMENT-GRADE TENANTS Top ten tenants represent 22% of SLR with no single tenant accounting for more than 3.3% Top Ten Tenants Tenant Credit Rating Country Property Type % of SLR(1) Actual: Baa2 U.S. / Canada Industrial & Distribution 3.3% Implied: Baa1 U.S. Single-Tenant Retail 3.3%
Slide 13: 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 14: 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 6.3 years(1) Multi-Tenant Retail Lease Maturity Sc
Slide 15: Continued Leasing Momentum Driven by Strong Asset Management Capabilities
CONTINUED LEASING MOMENTUM DRIVEN BY STRONG ASSET MANAGEMENT CAPABILITIES Leasing momentum continued in Q3 2024 with 79 lease renewals and new leases, representing over 1.2 million square feet and nearly $16 million of straight-line rent Q3 2024(1) Leasing and Renewal Activity Single-Tenant Multi-Te
Slide 16: 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 4% Single-Tenant Retail Office 22% 18% $684.4 Single-Tenant Non-Investment Investment Grade(2) 73% Grade 61% million 35% Multi-Tenant Retail Industrial & 27%
Slide 17: Industrial & Distribution Overview
INDUSTRIAL & DISTRIBUTION OVERVIEW Segment Highlights Lease Maturity Schedule (% of Total SF) 33% 207 32.0M 6.8 Years Weighted Average Lease Term Total Portfolio(1) Properties Square Feet 35.0% 22% 98% 6.8 Years CPI Increases(1) Leased WALT 8.8% 62% 92% 1.6% 3.1% 1.6% 4.5% Average Annual 0.0% IG Ten
Slide 18: Multi-Tenant Retail Overview
MULTI-TENANT RETAIL OVERVIEW Segment Highlights Lease Maturity Schedule (% of Total SF) 5.3 Years Weighted Average Lease Term 27% 103 15.2M Total Portfolio(1) Properties Square Feet Anchor Tenants: In-Line Tenants: 5.6 Years 4.1 Years 12.4% $183M 92.9% 5.3 Years SLR Leased + Pipeline WALT 2.8% 3.6%
Slide 19: Single-Tenant Retail Overview
SINGLE-TENANT RETAIL OVERVIEW Segment Highlights Lease Maturity Schedule (% of Total SF) 22% 832 7.7M 7.8 Years Weighted Average Lease Term Total Portfolio(1) Properties Square Feet $151M 97% 7.8 Years 8.1% SLR Leased WALT 61% 85% 1.7% 1.3% 0.8% 1.1% 1.4% Average Annual 0.0% IG Tenants(1) Rent Escal
Slide 20: Single-Tenant Office Overview
SINGLE-TENANT OFFICE OVERVIEW Segment Highlights Lease Maturity Schedule (% of Total SF) 18% 81 6.9M 4.2 Years Weighted Average Lease Term Total Portfolio(1) Properties Square Feet $125M 97% 76% SLR Leased IG Tenants(1) 4.9% 1.5% 1.9% 1.6% 91% 61% 0.6% 1.2% 1.2% Average Annual Rent Escalators(1) Mis
Slide 21: 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 22: 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 23: 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 24: 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 25: 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 26: Non-GAAP Reconciliations
NON – GAAP RECONCILIATIONS (Amounts in thousands) Three Months Ended 30-Sep-24 Net loss $(65,635) Depreciation and amortization 85,430 Interest expense 77,130 Income tax expense 1,345 EBITDA 98,270 Impairment charges 38,583 Equity-based compensation 2,309 Merger, transaction and other costs(1) 1,901
Slide 27: Non-GAAP Reconciliations
NON – GAAP RECONCILIATIONS (Amounts in thousands) Three Months Ended 30-Sep-24 Net loss attributable to common stockholders (in accordance with GAAP) $(76,571) Impairment charges 38,583 Depreciation and amortization 85,430 Gain on dispositions of real estate investments 4,280 FFO (as defined by NARE