Global Net Lease, Inc. · NYSE:GNL
Global Net Lease — Q4 2019 Earnings Presentation
28 slides from Global Net Lease's earnings presentation, Feb 26, 2020
Slide 1: Global Net Lease Fourth Quarter 2019 Investor Presentation
Global Net Lease Fourth Quarter 2019 Investor Presentation
Slide 2: Overview: Differentiated Strategy with International Diversification
2 OVERVIEW Differentiated Strategy with International Diversification 1. As used herein, investment grade includes both actual investment grade ratings of the tenant or guarantor, if available, or i mpl ied investment grade. Implied investment grade may include actual ratings of tenant parent, guara
Slide 3: Portfolio Highlights
3 PORTFOLIO HIGHLIGHTS Properties 278 Square Feet (millions) 31.6 Tenants 124 Industries 45 Countries 8 Leased 99.6% Weighted - Average Remaining Lease Term (1) 8.3 years % of SLR derived from Investment Grade Tenants (2)(3) 68.2% % of leases with contractual rent increases (4) 93.2% Portfolio Overv
Slide 4: Well Balanced Portfolio
4 Non Investment Grade 32% Investment Grade 68% WELL BALANCED PORTFOLIO As of December 31, 2019 . 1. Metric based on SLR. Refer to SLR definition included in the footnotes on page 3. 2. Refer to Investment Grade Rating definition included in the footnotes on page 2. Credit Rating (1) Tenant Industry
Slide 5: Well Diversified Tenant Base: Top Ten Tenants
5 Tenant Rating Country Property Type % of SLR (1) Baa2** U.S. / Canada Distribution 5% Aaa** U.S. Office 4% Baa2* U.K. Office 4% Baa1 U.S. Industrial / Distribution 4% Aa3 NETH Office 3% Aa1** FIN Industrial 3% Baa2 U.S. Distribution 3% Ba1* U.S. Industrial 3% Aa3 U.K. Distribution 2% Aa3 U.S. Offi
Slide 6: Focus on High-Quality Tenants
6 Office Distribution Industrial FOCUS ON HIGH - QUALITY TENANTS Only Focused on Markets with Quality Sovereign Debt Ratings (S&P) U.S. Luxembourg Germany The Netherlands Canada Finland U.K. France AA+ AAA AAA AAA AAA AA+ AA AA Best - in - class portfolio leased to largely Investment Grade Rated Ten
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 • Mis
Slide 8: Acquisitions Summary
8 *Represents Moody’s Implied Rating. ** Represents Tenant or Guarantor Parent Rating even if not a guarantor on the lease. *** 54% of the Plasma 9 - Pack portfolio is implied investment grade and is weighted based on SLR. 1. Represents the contract purchase price and excludes acquisitions costs whi
Slide 9: Geographic Balance (as of December 31, 2019)
9 GEOGRAPHIC BALANCE (AS OF DECEMBER 31, 2019) 1. Refer to basis for metric calculation included in the footnotes on page 3. 2. Metric based on SLR. Refer to SLR definition included in the footnotes on page 3. U.S. and Canada Number of Assets: 215 Weighted - Average Remaining Lease Term: 8.7 years (
Slide 10: Portfolio Comparison: Q4 2019 vs Q4 2018
10 Office 49% Industrial/Distribution 46% Retail 5% PORTFOLIO COMPARISON: Q4 2019 VS Q4 2018 Continued Focus towards United States Industrial and Distribution Properties Office 53% Industrial/Distribution 39% Retail 8% United States 56% Europe 44% Property Type Concentration (1) Geographic Concentra
Slide 11: Fourth Quarter Acquisition: Whirlpool Corporation
11 Transaction Overview FOURTH QUARTER ACQUISITION: WHIRLPOOL CORPORATION Property and Tenant Overview Tenant Whirlpool Corporation Property Type Distribution/Industrial Credit Rating S&P: BBB Moody’s Baa1 Location OH and TN Square Feet 2,923,956 Lease Term (years) 12.0 Tenant • The tenant, Whirlpoo
Slide 12: Fourth Quarter Acquisition: Faurecia USA Holdings
12 1. Tenant’s implied credit rating. Refer to Investment Grade Rating definition included in the footnotes on page 2 and page 3. Transaction Overview Tenant Faurecia USA Holdings, Inc. Property Type Office Credit Rating (1) S&P: N/A Moody’s: Ba2 Location Auburn Hills, MI Square Feet 278,000 Lease T
Slide 13: Fully Aligned Management Structure
13 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 14: GNL Capital Structure
14 GNL CAPITAL STRUCTURE GNL continued to improve its capital structure during the fourth quarter of 2019 by extending debt maturities and optimizing the debt structure for continued future growth Debt Maturity and Interest Expense by Quarter (1) GNL Capital Structure by Quarter (1) (in millions) (y
Slide 15: End of Quarter and Pipeline Acquisition Impact
15 END OF QUARTER AND PIPELINE ACQUISITION IMPACT Transaction Name Closing Date Purchase (Disposition) Price ($000s) Number of Properties Annualized Straight - line Rent ($000s) Acquisitions (1) Faurecia USA 12/4/2019 $48,363 1 $3,706 Plasma (6 of 9) 12/5/2019 $24,747 6 $1,851 Plasma (3 of 9) 12/13/
Slide 16: Q4 2019 Financials: Key Takeaways
16 Q4 2019 Financials: Key Takeaways • 2019 acquisitions of $576.4 million plus Q1’2020 closings and pipeline of $273.7 million at a weighted average cap rate of 7. 83% (1) • Increased the Company's composition of industrial and distribution assets from 39% to 46% year over year • Disposed non - cor
Slide 17: Debt Overview
17 $19 $24 $20 $316 $218 $690 $199 $403 $- $100 $200 $300 $400 $500 $600 $700 $800 2020 2021 2022 2023 2024 Thereafter Mortgages Credit Facility 0.3% 1.0% 4.9% 7.4% 16.7% 10.3% 6.5% 2.5% 50.5% DEBT OVERVIEW Metric Q4’19 Q4’18 Net Debt to Enterprise Value (1) 43.7% 53.5% Net Debt to Adjusted EBITDA (
Slide 18: Comprehensive Hedging Program
18 COMPREHENSIVE HEDGING PROGRAM Hedging Foreign Currency Exchange Risk (“Cash Flow Hedging Instruments”) • Provides protection against unfavorable movements in EUR and GBP versus the U.S. Dollar (“USD”) associated with the Company’s foreign property operations Interest Rate Swaps: Fixing Interest o
Slide 19: Forward-Looking Statements
19 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 . In addition, words such as “may,” “will,” “seeks,” “ant
Slide 20: Risk Factors
20 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 . • All of our executive officers are also officers, managers, employees
Slide 21: Risk Factors (Continued)
21 RISK FACTORS (CONTINUED) • If we are not able to increase the amount of cash we have available to pay dividends, including through additional cash flows we expect to generate from completing acquisitions, we may have to reduce dividend payments or identify other financing sources to fund the paym
Slide 22: Projections
22 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 23: Definitions
23 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 24: Definitions (Continued)
24 DEFINITIONS (CONTINUED) • In calculating Core FFO, we start with FFO, then we exclude certain non - core items such as acquisition, transaction and other costs, as well as certain other costs that are considered to be non - core, such as debt extinguishment costs, fire loss and other costs relate
Slide 25: Definitions (Continued)
25 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 26: Non-GAAP Reconciliations
26 NON – GAAP RECONCILIATIONS Three Months Ended December 31, 2019 December 31, 2018 EBITDA: Net income (loss) $ 12,931 $ (4,290) Depreciation and amortization 31,989 30,078 Interest expense 17,194 15,479 Income tax expense 1,652 (366) EBITDA 63,766 40,901 Impairment charges and related lease intang
Slide 27: FFO and AFFO Reconciliations
27 FFO AND AFFO RECONCILIATIONS Three Months Ended December 31, 2019 December 31, 2018 Funds from operations (FFO): Net income (loss) attributable to common stockholders (in accordance with GAAP) $ 9,263 $ (6,744) Impairment charges — 5,000 Depreciation and amortization 31,989 30,078 (Gain) loss on
Slide 28: Investor Inquiries
INVESTOR INQUIRIES 1 - 866 - 902 - 0063 investorrelations@globalnetlease.com www.GlobalNetLease.com