Global Net Lease, Inc. · NYSE:GNL
Global Net Lease — Investor Presentation (November 2015)
26 slides from Global Net Lease's investor presentation, Nov 17, 2015
Slide 1: November 2015 Investor Presentation
November 2015 Investor Presentation
Slide 2: Investment Highlights
Diversified by asset type, geography, tenant and tenant industry Focus on single tenant, net lease, income producing, mission critical assets in the U.S., UK, Germany, the Netherlands and Finland 79% of NOI derived from investment grade rated or implied investment grade rated tenants (1) 11.
Slide 3: 3Q 2015 Key Highlights
Cash NOI $43.3 million AFFO $31.2 million AFFO per diluted share $0.18 Dividend Yield – annualized (1) 7.7% Net Debt / Enterprise Value (2) 43.3% Euro / GBP / US $ Exposure 41% / 38% / 21% Weighted Average Interest Rate Cost 2.5% Fixed / Floating Rate Debt 67.8% / 32.2% Interest Coverage 5.8x Weight
Slide 4: Best in Class Portfolio vs. Comps
100% 100% 100% 100% 100% 100% 100% 90% 64% 60% 10% 37% 40% 0% 20% 40% 60% 80% 100% GPT LXP NNN O SIR SRC STOR CSG WPC GNL U.S. Europe GNL U.S. Best in Class Portfolio Geographic Breakdown 6.2 8.7 8.9 9.6 10.1 10.8 11.4 11.5 11.5 15.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 CSG LXP WPC GPT O SRC SIR
Slide 5: High-Quality Portfolio Overview
Tenant Rating (1) Country Property Type % of Portfolio NOI (2) Baa1 GER Office 5.3% **BBB US Distribution 4.8% **BBB - US Retail 4.4% **Aaa FIN Industrial 4.4% AA+ US Office 4.3% BBB+ US Office 3.1% Crown Crest *A2 UK Distribution 2.9% ***AA - FIN Office 2.9% *Baa2 UK Office 2.4% Aa2 US Office 2.4%
Slide 6: Strong, Diversified Portfolio
Strong, Diversified Portfolio ___________________________ Source: All portfolio and financial information derived from company financial statements as of 9/30/2015 . Information shown based on U.S. Dollar equivalent amounts using exchange rates as of 9/30/2015 . 1. Based on annualized 2015 GAAP NOI
Slide 7: Significant Global Opportunity
Significant Global Opportunity GNL is well - positioned to capitalize on incremental investment opportunities in the U.S. and Western Europe. Sovereign Debt Ratings (S&P) U.S. AA+ UK AAA Germany AAA Netherlands AA+ Finland AA+ Belgium AA France AA Ireland A+ Poland A Spain BBB+ Italy BBB - Portugal
Slide 8: Focused Investment Strategy Creates Value
Focused Investment Strategy Creates Value U.S ., UK , Germany, Finland , Belgium, Netherlands, Luxembourg and France Tenant Credit Quality Geography Real Estate / Market Fundamentals Asset Type Investment Strategy – Key Criteria Competitive advantage analysis Business model evaluation Tenant
Slide 9: Proven Track Record
Proven Track Record Over € 25 billion (~$28 billion) Over $30 billion • Principals have combined experience of 66 years in the European real estate market • Acquired and currently manages 101 properties, $2.8 billion, 9.8 million sq. ft. across Europe since the beginning of 2013 • Among leading glob
Slide 10: Internalized Advantages Embedded in an External Structure
Internalized Advantages Embedded in an External Structure 10 Appropriate, Cost Efficient Fees Management fee capped based on AUM; cap as a percentage of AUM is reduced as GNL grows More cost efficient given GNL’s current size Long - term management agreement provides shareholders with advantages
Slide 11: Management Agreement Fee Terms
• Initial base fee of $18mm per annum (implied 0.75% of AUM) (1) • To be increased by 1.25% on new equity raised • Eliminated acquisition fees, financing fees, and reimbursement of internal acquisition expenses (2) • Incentive fee tied to Core AFFO (3) 15% of Core AFFO in excess of $0.78 per share
Slide 12: Conclusion
Assembled high - quality net lease property portfolio Originated all assets in portfolio Established local presence and expertise in our markets Designed cost - effective management structure Created in - place hedges to mitigate currency risk Pursuing pragmatic, steady growth Conclusion
Slide 13: The Platform
The Platform
Slide 14: Experienced Management Team
Experienced Management Team Executive Management Team Moor Park Capital Shemeel Khan Chief Executive Officer / Co - Founder 22 years of real estate experience Previously served as partner in the European Funds Group at Nomura Also worked in Real Estate Investment Banking at Bankers Trust Jagde
Slide 15: Strong Corporate Governance and Board of Directors
Majority independent Board of Directors , with additional oversight provided by an Audit Committee comprised solely of independent directors PricewaterhouseCoopers currently act as independent auditor of GNL Deloitte & Touche serve as the company’s internal auditors reporting directly to the A
Slide 16: Broad, Multi-Disciplinary Acquisition Footprint
Shameel Kahn CEO Gary Wilder Executive Chairman Jagdeep Kapoor CIO Moor Park Investment Committee Germany United Kingdom Nordics Benelux France Michael Glaser Illias Harcha Javier paz Valibuena Lars Von der Berg Greg Smith Veronia Baldi Diego Voss Mike Pille Jamal Dutheil Rodolphe De Clermont - Tonn
Slide 17: Superior Sourcing Network
I NSTITUTIONS A DVISORS D EVELOPERS R ELATIONSHIP B ROKERAGE F IRMS “B AD B ANK ” D EBT P OOLS Origination network targeted to transactions with advantaged position Disciplined and rigorous approach to underwriting Capacity to underwrite complexity and structure creatively Portfolios / large -
Slide 18: Vigorous Asset Management Creates Value
Vigorous Asset Management Creates Value 11 full - time asset management personnel in the U.S. and Europe Combined executive leadership with local practitioners to provide superior asset management expertise across the U.S. and Europe. 18 Checks Compliance / Negotiation Management Credit Credit
Slide 19: Legal Notices
Legal Notices
Slide 20: Forward Looking Statements
Forward Looking Statements The statements in this presentation that are not historical facts may be forward - looking statements . These forward - looking statements involve risks and uncertainties that could cause actual results or events to be materially different . Forward - looking statements ma
Slide 21: Risk Factors
Risk Factors All of our executive officers are also officers of our Advisor and other American Realty Capital - affiliated entities. As a resu lt, our executive officers, our Advisor and its affiliates face conflicts of interest, including significant conflicts created by our Advisor’s co mpensati
Slide 22: Projections
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 presentation o
Slide 23: Definitions
Definitions 23 Funds from operations (“FFO”) 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"),
Slide 24: Definitions (cont'd)
Definitions (cont’d) 24 Funds from operations (“FFO”) (Cont’d) We consider FFO, Core FFO and AFFO useful indicators of our performance . Because FFO calculations exclude such factors as depreciation and amortization of real estate assets and gains or losses from sales of operating real estate assets
Slide 25: Definitions (cont'd): AFFO
Definitions (cont’d) Adjusted funds from operations (“AFFO”) We exclude certain income or expense items from AFFO that we consider more reflective of investing activities, other non - cash income and expense items and the income and expense effects of other activities that are not a fundamental attr
Slide 26: Definitions (cont'd): Adjusted EBITDA and NOI
Definitions (cont’d) 26 Adjusted Earnings before Interest, Taxes, Depreciation and Amortization, Net Operating Income, Cash Net Operating Income and Adjusted Cash Net Operating Income . We believe that earnings before interest, taxes, depreciation and amortization adjusted for acquisition and transa
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