Global Net Lease, Inc. · NYSE:GNL
Global Net Lease — Q2 2024 Earnings Presentation
26 slides from Global Net Lease's earnings presentation, Aug 7, 2024
Slide 1: Global Net Lease Second Quarter 2024 Investor Presentation
Global Net Lease Pictured – McLaren Campus in Woking, U.K. Second 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
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 Q2’24 included increased guidance of GNL’s strategic disposition initiative, AFFO per share growth, further leverage reduction, strong leasing momentum and proactive balance sheet management Robust Leasing Activity, Leading to Increased Occupancy Showcased strong asset management
Slide 5: Second Quarter 2024 Financial Highlights
SECOND QUARTER 2024 FINANCIAL HIGHLIGHTS GNL has raised its 2024 disposition guidance range to $650 million to $800 million, up from $400 million to $600 million, while maintaining its expected stated cash cap range of 7% to 8% Debt Capitalization ($mm) Q2’24 Earnings Summary ($mm) Q2’24 Total Secur
Slide 6: Efficient Balance Sheet Strategy & Execution
EFFICIENT BALANCE SHEET STRATEGY & EXECUTION Continued Balance Sheet Execution Successfully Addressed Near-Term Maturities ▪ GNL continues to place a strong emphasis on de-risking its balance ▪ Addressed 100% of the outstanding debt with scheduled maturities in sheet, focusing on reducing Net Debt t
Slide 7: Successfully Executing Disposition Plan & Using Sale Proceeds to Reduce Leverage
SUCCESSFULLY EXECUTING DISPOSITION PLAN & USING THE SALE PROCEEDS TO REDUCE LEVERAGE Expected # of Disposition Price Cash Wtd. Avg. Lease Disposition Name Closing Properties (in mm)(1) Cap Rate(2) Term Remaining(3) Closed (as of 8/1/24): Truist Properties (ST Retail) Closed: Q1’24-Q2’24 20 $50.3 – –
Slide 8: Substantial Merger Synergies and Internalization Savings
SUBSTANTIAL MERGER SYNERGIES AND INTERNALIZATION SAVINGS As a direct result of the Merger and Internalization, GNL has already recognized over $74 (1) million of annualized cost synergies and is on track to recognize $75 million that was estimated at transaction close (2) ($mm) Synergies Recognized
Slide 9: Portfolio Snapshot
PORTFOLIO SNAPSHOT Portfolio Overview Q2’24 Properties 1,242 Square Feet (millions) 64.3 % Leased 94% Weighted Average Remaining Lease Term (“WALT”)(1) 6.5 years % of SLR Derived from United States & Canada vs. Europe 80% | 20% Industries 92 Tenants 755 % of SLR derived from Investment Grade Tenants
Slide 10: 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 1,242 207 107 840 88 Properties Square Feet 64.3 32.1 16.1 7.7 8.5 (millions) SLR(1) $703 $217 (31%) $200 (28%) $146 (2
Slide 11: High-Quality Investment-Grade Tenants
HIGH-QUALITY INVESTMENT-GRADE TENANTS Top ten tenants represent 21% of SLR with no single tenant accounting for more than 3.2% Top Ten Tenants Tenant Credit Rating Country Property Type % of SLR(1) Implied: Baa2 U.S. Single-Tenant Retail 3.2% Actual: Baa2 U.S. / Canada Industrial & Distribution 2.8%
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 Sc
Slide 14: Continued Leasing Momentum Driven by Strong Asset Management Capabilities
CONTINUED LEASING MOMENTUM DRIVEN BY STRONG ASSET MANAGEMENT CAPABILITIES Leasing momentum continued in Q2 2024 with 97 lease renewals and new leases, representing nearly 1.5 million square feet and over $17 million of straight-line rent Q2 2024(1) Leasing and Renewal Activity Single-Tenant Multi-Te
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 4% Single-Tenant Single-Tenant Retail Office 21% 20% Single-Tenant Non-Investment $702.9 72% Investment Grade (2) Grade million 37% 59% Multi-Tenant Industrial & Retail Di
Slide 16: Industrial & Distribution Overview
INDUSTRIAL & DISTRIBUTION OVERVIEW Segment Highlights Lease Maturity Schedule (% of Total SF) 31% 207 32.1M 7.1 Years Weighted Average Lease Term Total Portfolio(1) Properties Square Feet 33.1% 19% 96% 7.1 Years CPI Increases(1) Leased WALT 8.6% 59% 91% 1.5% 3.1% 1.6% 4.4% Average Annual 0.0% IG Ten
Slide 17: Multi-Tenant Retail Overview
MULTI-TENANT RETAIL OVERVIEW Segment Highlights Lease Maturity Schedule (% of Total SF) 5.4 Years Weighted Average Lease Term 28% 107 16.1M Total Portfolio(1) Properties Square Feet Anchor Tenants: In-Line Tenants: 5.8 Years 4.1 Years 12.1% $200M 91.8% 5.4 Years SLR Leased + Pipeline WALT 2.9% 3.6%
Slide 18: Single-Tenant Retail Overview
SINGLE-TENANT RETAIL OVERVIEW Segment Highlights Lease Maturity Schedule (% of Total SF) 21% 840 7.7M 8.0 Years Weighted Average Lease Term Total Portfolio(1) Properties Square Feet $146M 97% 8.0 Years 7.8% SLR Leased WALT 59% 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% 88 8.5M 4.6 Years Weighted Average Lease Term Total Portfolio(1) Properties Square Feet $141M 94% 72% SLR Leased IG Tenants(1) 6.1% 1.6% 1.5% 1.9% 1.7% 92% 70% 1.2% 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 30-Jun-24 Net loss $(35,664) Depreciation and amortization 89,493 Interest expense 89,815 Income tax expense (250) EBITDA 143,394 Impairment charges 27,402 Equity-based compensation 2,340 Merger, transaction and other costs(1) 1,57
Slide 26: Non-GAAP Reconciliations
NON – GAAP RECONCILIATIONS (Amounts in thousands) Three Months Ended 30-Jun-24 Net loss attributable to common stockholders (in accordance with GAAP) $(46,600) Impairment charges 27,402 Depreciation and amortization 89,843 Gain on dispositions of real estate investments (34,102) FFO (as defined by N