Global Net Lease, Inc. · NYSE:GNL
Global Net Lease — Investor Presentation (June 2016)
27 slides from Global Net Lease's investor presentation, Jun 6, 2016
Slide 1: June 2016 Investor Presentation
June 2016 Investor Presentation
Slide 2: The GNL Advantage
The GNL Advantage Best in Class Portfolio Mission critical assets Long - term leases with investment grade tenants Differentiated Strategy Focus on high quality markets of U.S. and Western Europe Ability to play market cycles in the US & Europe Advantages of GNL U.S & Europe Market S t
Slide 3: 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., U.K., Germany, the Netherlands, and Finland 72.3% of NOI derived from investment grade rated or implied investment grade rated tenants (1
Slide 4: Portfolio Highlights Portfolio Overview
0% 0% 0% 0% 2% 2% 8% 10% 21% 57% Portfolio Highlights Portfolio Overview Source: All portfolio and financial information derived from unaudited company internal records as of M arch 31, 2016. Information shown based on USD equivalent amounts using exchange rates as of March 31, 2016. 1. Actual ratin
Slide 5: GNL vs. Peers
GNL vs. Peers 60% 100% 100% 100% 100% 100% 93% 64% 36% 0% 20% 40% 60% 80% 100% GNL LXP NNN O SIR SRC GPT WPC U.S. Europe 40% 7% Geographic Breakdown (1) 11.0 7.8 9.0 10.0 10.6 10.9 11.3 12.7 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 GNL GPT WPC O SRC SIR NNN LXP Average Remaining Lease Term (Years ) (3) 10
Slide 6: Portfolio Highlights
Portfolio Highlights ___________________________ Source: All portfolio and financial information derived from company internal records as of March 31, 2016. Information shown based on USD equivalent amounts using exchange rates as of March 31, 2016. 1. Based on annualized NOI . See the discussion un
Slide 7: Significant Global Opportunity
Significant Global Opportunity GNL is well positioned to capitalize on net lease investment opportunities in the U.S. and Western Europe. Sovereign Debt Ratings (S&P) U.S. AA+ UK AAA Germany AAA Netherlands AAA Finland AA+ Belgium AA France AA Ireland A+ Poland BBB+ Spain BBB+ Italy BBB - Portugal B
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 Business model evaluation Tenant credit review Real Estate financ
Slide 9: Balance Sheet
Balance Sheet As of March 31, 2016 (in Millions) Assets Total real estate investments, net $ 2,396.1 Cash and cash equivalents 45.8 Other Assets 59.4 Total Assets $ 2,501.3 Liabilities & Equity Gross mortgage notes payable $ 532.4 Credit facility 703.3 Total Debt ( Weighted Average Interest Rate of
Slide 10: First Quarter 2016 Key Highlights
First Quarter 2016 Key Highlights Source: All portfolio and financial information derived from company internal records as of March 31, 2016. Information shown based on USD equivalent amounts using exchange rates as of March 31, 2016 1. Effective January 1, 2016, we eliminated unrealized losses (gai
Slide 11: Strong Governance
Strong Governance Board of Directors is comprised of 75% independent directors Conflicts, audit, governance & nominating committees comprised of 100% independent directors PwC is external auditor and reports directly to audit committee Deloitte is internal auditor and reports directly to aud
Slide 12: Benefits of GNL External Management Structure
116 bps 193 bps 388 bps bps 50 bps 100 bps 150 bps 200 bps 250 bps 300 bps 350 bps 400 bps 450 bps GNL Select Peer Group Average GLPI Benefits of GNL External Management Structure 12 ___________________________ Sources: U.S. SEC Company filings as of 3/31/2016 and SNL Financial. 1. Net Property Inve
Slide 13: Management Agreement Fee Structure
Management Agreement Fee Structure • 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 Cor
Slide 14: GNL Objectives
GNL Objectives Complete asset recycling plan by year - end 2016 Secure analyst coverage for GNL by year - end 2016 Engage rating agencies with goal of securing Investment Grade rating in next 12 months Enhance debt structure A dd unsecured debt and ladder out maturities in next 12 months
Slide 15: Conclusion
Assembled high - quality net lease property portfolio Best - in - class portfolio metrics Strong balance sheet and interest coverage ratio Established local management presence and expertise in our markets Created in - place hedges to mitigate currency risk Strong governance programs in
Slide 16: The Platform
The Platform
Slide 17: GNL Board of Directors and Management Team
GNL Board of Directors Sue Perrotty Chairperson Abby Wenzel Independent Edward Rendell Independent William Kahane Director GNL Management Team / Investment Committee Scott Bowman CEO & President Tim Salvemini CFO Shared Services Support Operations Investor Relations Accounting Legal Due Diligence IT
Slide 18: 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 19: 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. Checks Compliance / Negotiation Management Credit Tenant cr
Slide 20: Legal Notices
Legal Notices
Slide 21: Forward Looking Statements
Forward Looking Statements Certain statements made in this presentation are forward - looking statements . These forward - looking statements include statements regarding our intent, belief or current expectations and are based on various assumptions . These statements involve substantial risks and
Slide 22: Risk Factors
Risk Factors All of our executive officers are also officers, managers and/or holders of a direct or indirect controlling interest in our Adv isor and other entities affiliated with AR Global Investments, LLC. As a result, our executive officers, our Advisor and its affiliates face conflict s o f
Slide 23: 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 24: Definitions
Definitions 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"), whi
Slide 25: Definitions (cont'd)
Definitions (cont’d) 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 (w
Slide 26: 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 27: Definitions (cont'd) Adjusted EBITDA and NOI
Definitions (cont’d) 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 transacti