Global Net Lease, Inc. · NYSE:GNL
Global Net Lease — Investor Presentation (November 2016)
20 slides from Global Net Lease's investor presentation, Nov 15, 2016
Slide 1: November 2016 Investor Presentation
November 2016 Investor Presentation
Slide 2: The GNL Advantage
The GNL Advantage 2 • Properties with long duration leases to largely investment grade tenants • Mission critical assets that are strategically important to tenants’ core operating businesses Best in Class Portfolio • Focus on mature markets in U.S . and Western Europe defined by high sovereign debt
Slide 3: 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 AA Germany AAA Netherlands AAA Finland AA+ Belgium AA France AA Ireland A+ Poland BBB+ Spain BBB+ Italy BBB - Portugal BB+
Slide 4: Portfolio Highlights and Overview
0% 0% 0% 2% 2% 8% 11% 21% 10% 46% Portfolio Highlights Portfolio Overview Source: All portfolio and financial information derived from unaudited company internal records as of September 30, 2016. Inf orm ation shown based on USD equivalent amounts using exchange rates as of September 30, 2016. 1. Ac
Slide 5: GNL vs. Peers
GNL vs. Peers 60% 100% 100% 100% 100% 100% 83% 63% 37% 0% 20% 40% 60% 80% 100% GNL LXP NNN O SIR SRC GPT WPC U.S. Europe 40% Geographic Breakdown (1) 11.5 10.6 10.5 10.5 9.8 9.4 8.6 7.6 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 NNN SIR GNL SRC O WPC LXP GPT Average Remaining Lease Term (Years) 100.0% 99.1%
Slide 6: Portfolio Highlights
Portfolio Highlights ___________________________ Source: All portfolio and financial information derived from company internal records as of September 30, 2016. Information s how n based on USD equivalent amounts using exchange rates as of September 30, 2016. 1. Based on annualized NOI. See the disc
Slide 7: 3rd Quarter 2016 Results
3 rd Quarter 2016 Results Earnings Q3 2016 Q3 2015 % Change Net Income Attributable to Stockholders $8.9 mm $5.4 mm +64.6% NOI $49.1 mm $46.9 mm + 4.6% AFFO (1) /Share $0.20 $0.17 + 15.7% Debt Metrics Debt - to - Enterprise Value (2) 44.8% Net Debt to EBITDA (3) 6.6 x Interest Coverage Ratio (4) 5.3
Slide 8: Balance Sheet
Balance Sheet As of September 30, 2016 (in Millions) Assets Total real estate investments, net $ 2,259.1 Cash and cash equivalents 50.3 Other Assets 96.8 Total Assets $ 2,406.2 Liabilities & Equity Mortgage notes payable, net (1) (Effective weighted - average interest rate of 3.0%) $ 502.8 Credit fa
Slide 9: GNL Merger With ARC Global Trust II
GNL Merger With ARC Global Trust II (1) 9 ▪ Enhances GNL’s Portfolio: Brings U.S. / European portfolio mix to parity, expands the high - quality tenant base, increases rent PSF, and maintains long lease terms further diversifying and differentiating the GNL portfolio ▪ Achieves Significant Scale: In
Slide 10: Geographically diverse, well-positioned portfolio of high-quality assets
Geographically diverse, well - positioned portfolio of high - quality assets in the U.S. and Europe (1) 10 __________________________ 1. Weighted by rental income on a straight - line basis as of 9/30/2016. Pro Forma Geographic Exposure GNL Asset Type Diversification USA 51% U.K. 21% Germany 8% Luxe
Slide 11: Proxy Information; Additional Information About the Proposed Transaction
Proxy Information 11 ; Additional Information About the Proposed Transaction and Where to Find It ; This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed transaction , G
Slide 12: Forward Looking Statements
Forward Looking Statements 12 ; Certain statements made in this presentation are “forward - looking statements” (as defined in Section 21E of the Exchange Act), which reflect the expectations of GNL and Global II regarding future events. The forward - looking statements involve a number of risks, un
Slide 13: Risk Factors
Risk Factors 13 ; 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. See the section entitled “Item 1A. Risk Factors” in the Company’s Annu
Slide 14: Risk Factors (Continued)
Risk Factors (Continued) 14 ; Adverse changes in exchange rates may reduce the value of our properties located outside of the United States. ; We may not generate cash flows sufficient to pay dividends to our stockholders, as such, we may be forced to borrow at unfavorable rates or depend on our Adv
Slide 15: Projections
Projections 15 ; 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 presentati
Slide 16: Definitions
Definitions 16 ; Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Es tat e Investment Trusts ("NAREIT"), an industry trade group, has promulgated a measure known as funds from operations ("FFO"), whic h w e believe to be a
Slide 17: Definitions (Continued)
Definitions (Continued) 17 ; Changes in the accounting and reporting promulgations under GAAP (for acquisition fees and expenses from a capitalization/depreciatio n model to an expensed - as - incurred model) that were put into effect in 2009 and other changes to GAAP accounting for real estate s ub
Slide 18: Definitions (Continued)
Definitions (Continued) 18 ; We believe that earnings before interest, taxes, depreciation and amortization adjusted for acquisition and transaction - related exp enses, other non - cash items and including our pro - rata share from unconsolidated joint ventures ("Adjusted EBITDA") is an appropriate
Slide 19: Non-GAAP Reconciliations
Non – GAAP Reconciliations 19 Three Months Ended Sep 30, 2016 Sep 30, 2015 EBITDA: Net income $ 9,016 $ 5,488 Depreciation and amortization 23,482 22,949 Interest expense 8,914 9,041 Income tax expense 448 703 EBITDA $ 41,860 $ 38,181 Adjusted EBITDA : Change in fair value of Listing Note $ - $ (1,0
Slide 20: Non-GAAP Reconciliations (Continued)
Non – GAAP Reconciliations (Continued) 20 Three Months Ended Sep 30, 2016 Sep 30, 2015 Funds from operations (FFO): Net income attributable to stockholders (in accordance with GAAP) $ 8,943 $ 5,432 Depreciation and amortization 23,482 22,949 Gains on dispositions of real estate investments (1,320) -
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