Global Net Lease, Inc. · NYSE:GNL
Global Net Lease — Q1 2025 Earnings Presentation
35 slides from Global Net Lease's earnings presentation, May 7, 2025
Slide 1: Global Net Lease First Quarter 2025 Investor Presentation
Global Net Lease First Quarter 2025 Investor Presentation Pictured – McLaren Campus in Woking, U.K.
Slide 2: Forward Looking Statements
1 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 timing, ability to consummate and consideration relate
Slide 3: Projections, Credit Ratings and Non-GAAP Financial Measures notices
2 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 presentation of finan
Slide 4: Update on the Strategic Sale of the Multi-Tenant Portfolio
Update on the Strategic Sale of the Multi-Tenant Portfolio Section I 3
Slide 5: Anticipated Strategic Benefits of the Transaction
4 ANTICIPATED STRATEGIC BENEFITS OF THE TRANSACTION GNL successfully closed Phase I of the Multi-Tenant Portfolio Sale in Q1 2025, underscoring progress on the transformative strategic transaction and delivering a range of benefits with a clear focus on long-term value Transforms GNL into a Pure-Pla
Slide 6: The Multi-Tenant Portfolio Disposition
5 Top 5 Tenants(1) THE MULTI-TENANT PORTFOLIO DISPOSITION NV TX NM OK KS LA MS AL FL GA SC NC VA WV MO KY MI IL IN OH PA WI NY MD MA R I A R TN Note: Portfolio metrics as of December 31, 2024. 1. As a percentage of total annualized Straight-Line Rent of the Multi-Tenant portfolio. Calculated as of D
Slide 7: Transforms GNL into a Pure-Play Net Lease REIT
Industrial & Distribution 46% Single-Tenant Retail 29% Single-Tenant Office 25% Industrial & Distribution 40% Multi-Tenant Retail 13% Single-Tenant Retail 25% Single-Tenant Office 22% Total Portfolio Annualized SLR(2) by Segment Q1’25 Asset Diversification(1) Pro-Forma Asset Diversification Total Po
Slide 8: Simplifies Operations and Enhances Portfolio Metrics
Risk Profile Improvement Higher Embedded Rent Growth Positive Impact on Operating Metrics % Leased(3) 97% 98%(8) Operations and Risk Profile Improvement Q4’24 Annualized NOI Margin(4) 82% 89% Higher SS NOI Margin % IG Rated Tenants(5)(6) 61% 62% Enhanced Credit Profile of Tenant Base Rent Escalation
Slide 9: Significantly Reduces Leverage and Improves Liquidity Position
$175M $220M $253M $492M $1B+ Q1'24 Q2'24 Q3'24 GNL Pre-Transaction GNL Pro-Forma $5.2B $5.0B $4.8B $4.6B $2.8B 8.4x 8.1x 8.0x 7.6x 6.8x Q1'24 Q2'24 Q3'24 GNL Pre-Transaction GNL Pro-Forma SIGNIFICANTLY REDUCES LEVERAGE AND IMPROVES LIQUIDITY POSITION 1. Refers to Net Debt / Adjusted EBITDA. Net Debt
Slide 10: Positions GNL for Long-Term Growth
9 POSITIONS GNL FOR LONG-TERM GROWTH Note: All figures presented on this slide reflect metrics pro-forma of the strategic sale of the multi-tenant portfolio. 1. Assumes all net proceeds from the Multi-Tenant Portfolio sale are used to pay down the Revolving Credit Facility. 2. Liquidity includes ava
Slide 11: The New GNL
$5.7B Real Estate Gross Asset Value (“RE GAV”)(1) Focused on Single-Tenant Net Lease Properties in the US and Europe 1,004 Properties 98% Leased(3) 46M Rentable Square Feet $1B+ Liquidity(2) 6.5x – 7.1x Net Debt / Q4’25E Adj. EBITDA Internally Managed and Fully Integrated THE NEW GNL Note: All figur
Slide 12: The New GNL – Optimal Size
11 $67.8B $17.8B $10.9B $9.3B $5.7B $5.7B $5.4B $5.4B $4.6B $3.4B $2.8B $2.2B $2.2B $1.6B $1.5B $0.9B $0.9B $0.6B O WPC NNN ADC GNL Pro-Forma⁽²⁾ EPRT BNL ILPT⁽³⁾ LXP FCPT PKST NTST GTY ONL GOOD FVR OLP PINE THE NEW GNL – OPTIMAL SIZE $5 - $10 Billion RE GAV(1) $10+ Billion RE GAV(1) $1 - $5 Billion
Slide 13: The New GNL – Investment Highlights
12 Well-positioned to fund future growth and drive shareholder value High quality tenant base with 62% investment-grade rated(1) tenants Objective to pursue an investment-grade credit rating in the near to medium-term THE NEW GNL – INVESTMENT HIGHLIGHTS Geographically diversified portfolio with pres
Slide 14: Q1'25 Financial Results & Portfolio Overview
Q1’25 Financial Results & Portfolio Overview Section II 13
Slide 15: First Quarter 2025 Accomplishments
14 FIRST QUARTER 2025 ACCOMPLISHMENTS Closing Phase I of Multi-Tenant Portfolio Sale GNL successfully completed Phase I of its multi-tenant portfolio sale to RCG Ventures, generating $1.1 billion from 59 unencumbered properties and using proceeds to reduce debt and strengthen the balance sheet; adva
Slide 16: First Quarter 2025 Financial Highlights
15 Earnings Summary ($mm) Q1’25 Net Loss Attributable to Common Stockholders $(200.3) NOI(6) $155.9 Cash NOI(6) $150.8 Core Funds from Operations (Core FFO)(6) $35.0 Adjusted Funds from Operations (AFFO) (6) $66.2 Core Funds from Operations (Core FFO)(6) per Share $0.15 Adjusted Funds from Operation
Slide 17: Leverage Reduction and Debt Maturities
16 8.4x 8.1x 8.0x 7.6x 6.7x $5,246 $5,005 $4,843 $4,554 $3,721 $459 $106 $163 $320 $547 $663 $140 $500 $500 2025 2026 2027 2028 2029 Thereafter Mortgage Debt Revolving Credit Facility Senior Notes ▪ Reducing leverage remains GNL’s top strategic priority, as strengthening the balance sheet is critica
Slide 18: Dispositions Summary
17 Disposition Name Expected Closing # of Properties Disposition Price (in mm) Cash Cap Rate(1) Wtd. Avg. Lease Term Remaining(2) Closed (as of 5/1/25): Pizza Hut (Retail) Closed: Q1’25 11 $14.4 – – Burger King (Retail) Closed: Q1’25 1 $0.9 – – Multi-Tenant Portfolio Sale (Phase I) Closed: Q1’25 59
Slide 19: Portfolio Overview
18 Portfolio Overview Q1’25 Properties 1,045 Square Feet (millions) 51.3 % Leased(1) 98% Weighted Average Remaining Lease Term (“WALT”)(2) 6.3 years % of SLR Derived from United States & Canada vs. Europe 76% | 24% Industries 84 Tenants 481 % of SLR derived from Investment Grade Tenants (“IG Rated”)
Slide 20: Well Positioned Portfolio with Strong Key Metrics
19 Industrial WELL POSITIONED PORTFOLIO WITH STRONG KEY METRICS Note: Portfolio metrics as of March 31, 2025. 1. Calculated as of March 31, 2025, using annualized rent (“SLR”) converted from local currency into USD as of March 31, 2025 for the in-place lease on the property on a straight-line basis,
Slide 21: Top Ten Tenants
20 1. Metric based on annualized SLR as of March 31, 2025. Refer to SLR definition included in the footnotes on slide 19. 2. McLaren’s credit rating is currently under review after the announcement that CYVN Holdings, owned by the Government of Abu Dhabi, has completed its acquisition of 100% of McL
Slide 22: Geographically Diversified with a Global Presence
21 MIDWEST NC FL GA AL MS LA TX NM AZ CA NV UT OR WA ID MT WY CO ND SD NE KS OK AR MO IA MN WI MI IL IN OH KY TN SC NC WV VA PA NY VT NH ME MA NJ CT MD DE DC RI NB PACIFIC SOUTHWEST SOUTHWEST MID-ATLANTIC NEW PACIFIC BRUNSWICK NORTHWEST SOUTH EAST AK NORTHEAST GEOGRAPHICALLY DIVERSIFIED WITH A GLOBA
Slide 23: Attractive Lease Maturity Schedule
22 6.6% 6.3% 8.9% 11.8% 15.1% 51.2% 2025 2026 2027 2028 2029 2030 + Lease Maturity Schedule by Property Type (% of Total SF) ATTRACTIVE LEASE MATURITY SCHEDULE Unique investment mix of stable, long-term, single-tenant net-leased and strategically located suburban shopping centers results in a favora
Slide 24: Continued Leasing Momentum Driven by Strong Asset Management
23 Leasing momentum continued in Q1 2025 with 13 lease renewals and new leases, representing over 826,000 square feet and over $6 million of straight-line rent Q1 2025(1) Single-Tenant Leasing and Renewal Activity Leasing / Renewal Metric Single-Tenant Portfolio New Leases + Renewals Completed 13 Q1
Slide 25: Diversified and Stable Tenant Base
24 Investment Grade 60% Non-Investment Grade 27% Not Rated 12% Financial Services, 8% Auto Manufacturing, 8% Healthcare, 5% Gas/Convenience, 5% Freight, 5% Discount Retail, 5% Consumer Goods, 4% Specialty Retail, 3% Other, 57% Industrial & Distribution 40% Multi-Tenant Retail 13% Retail 25% Single-T
Slide 26: Industrial & Distribution Overview
25 2.7% 2.0% 5.5% 7.3% 10.0% 34.2% 2025 2026 2027 2028 2029 2030 + United States 73% Europe 10% United Kingdom 16% Canada 1% Tenant Credit Rating Country % of SLR Actual: Baa2 U.S. / Canada 4.3% Actual: NR U.K. 3.7% Actual: Baa3 U.S. / Italy 2.7% Implied: Baa1 U.S. 1.9% Actual: Baa2 U.S. 1.7% Top 5
Slide 27: Retail Overview
26 1.8% 0.9% 1.4% 1.7% 1.3% 7.6% 2025 2026 2027 2028 2029 2030 + United States 87% Europe 4% United Kingdom 9% RETAIL OVERVIEW Tenant Credit Rating Country % of SLR Implied: NR U.S. 4.2% Actual: Baa3 U.S. 1.8% Actual: Baa1 U.S. 1.7% Actual: Baa3 U.S. 1.5% Actual: Ba3 U.K. 1.2% Top 5 Tenants 59.6% IG
Slide 28: Single-Tenant Office Overview
27 2.0% 2.0% 1.2% 1.5% 2.0% 4.2% 2025 2026 2027 2028 2029 2030 + SINGLE-TENANT OFFICE OVERVIEW Tenant Credit Rating Country % of SLR Actual: Aaa U.S. 2.2% Actual: Aa3 Netherlands 2.0% Implied: A Luxembourg 1.1% Actual: Ba2 U.S. 1.0% Implied: Baa2 U.S. 0.8% Top 5 Tenants 85.7% IG Rated(3)(4) 7.0% Seg
Slide 29: Leadership Overview
28 LEADERSHIP OVERVIEW Management Board of Directors Michael Weil, Director Refer to “Management” section for Michael Weil’s biography Michael Weil, Chief Executive Officer & President Previously served as CEO of The Necessity Retail REIT Member of the Board of Directors of Global Net Lease, Inc. si
Slide 30: Appendix: Financial Definitions
29 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 In
Slide 31: Funds from Operations definitions
30 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 believe that, because real es
Slide 32: Funds from Operations, Core FFO and AFFO (Cont'd)
31 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 operating net income. All paid and ac
Slide 33: Net Operating Income definitions
32 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 administrative expense, acqu
Slide 34: Non-GAAP Reconciliations
33 NON – GAAP RECONCILIATIONS 1. This is a non-cash item and is added back as it is not considered indicative of operating performance. (Amounts in thousands) Three Months Ended 31-Mar-25 Net loss $(189,379) Depreciation and amortization 56,334 Interest expense 53,437 Income tax expense 3,280 Discon
Slide 35: Non-GAAP Reconciliations (FFO, Core FFO, AFFO)
34 (Amounts in thousands) Three Months Ended 31-Mar-25 Net loss attributable to common stockholders (in accordance with GAAP) $(200,315) Impairment charges 60,315 Depreciation and amortization 56,334 Loss on dispositions of real estate investments 1,678 Discontinued operations FFO adjustments 114,94