Global Net Lease, Inc. · NYSE:GNL
Global Net Lease — Investor Presentation (February 2016)
25 slides from Global Net Lease's investor presentation, Feb 26, 2016
Slide 1: February 2016 Investor Presentation
February 2016 Investor Presentation
Slide 2: Strategic Positioning
Strategic Positioning 2 Executive Summary Financial Highlights Portfolio Overview Investment Strategy Management Team Conclusion Pure - Play Real Estate Superior Portfolio Metrics Experienced International Management Differentiated Story Focused Management Diversified Portfolio
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 72.6% of NOI derived from investment grade rated or implied investment grade rated tenants (1)
Slide 4: Fiscal Year 2015 Key Highlights
Cash NOI $45,366 $172,544 AFFO 30,664 122,905 Dividend Yield – annualized (1) 8.9% Net Debt / Enterprise Value (2) 46.8% USD / Euro / GBP 23% / 40% / 37% Weighted Average Interest Rate Cost 2.5% Fixed / Floating Rate Debt 63% / 37% Interest Coverage (3) 5.5x Weighted Average Debt Maturity (4) 2.0 ye
Slide 5: Best in Class Portfolio
Best in Class Portfolio 100% 100% 100% 100% 100% 100% 93% 64% 60% 36% 40% 0% 20% 40% 60% 80% 100% LXP NNN O SIR SRC STOR GPT WPC GNL U.S. Europe Geographic Breakdown 7.5 9.0 9.1 10.0 10.7 11.0 11.3 11.4 14.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 GPT WPC LXP O SRC SIR GNL NNN STOR Average Remaining
Slide 6: High-Quality Portfolio
Tenant Rating (1) Country Property Type % of Portfolio NOI (2) Baa2 GER Office 5% **BBB US Distribution 5% **BB US Retail 4% AA+ US Office 4% **Aaa FIN Industrial 4% BBB+ US Office 3% Crown Crest *A2 UK Distribution 3% ***AA - FIN Office 3% *Baa2 UK Office 2% Aa3 US Office 2% High - Quality Portfoli
Slide 7: Strong, Diversified Portfolio
Strong, Diversified Portfolio ___________________________ Source: All portfolio and financial information derived from unaudited company internal records as of December 31, 2015. Information shown based on U.S. Dollar equivalent amounts using exchange rates as of December 31, 2015. 1. Based on annua
Slide 8: Significant Global Opportunity
Significant Global Opportunity GNL is well - positioned to capitalize on incremental investment opportunities in the U.S. and Western Europe. Sovereign Debt Ratings (S&P) U.S. AA+ UK AAA Germany AAA Netherlands AA+ Finland AA+ Belgium AA France AA Ireland A+ Poland A Spain BBB+ Italy BBB - Portugal
Slide 9: 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 Competitive advantage analysis Business model evaluation Tenant
Slide 10: Internalized Advantages Embedded in an External Structure
Internalized Advantages Embedded in an External Structure 10 Appropriate, Cost Efficient Fees Capped management fee; cap as a percentage of AUM is reduced as GNL grows More cost efficient given GNL’s current size Long - term management agreement provides shareholders with advantages historically
Slide 11: Benefits of External Management
Benefits of External Management 11 Performance Standards The new external management contract enhances performance - based compensation Performance Alignment Reduced Fees The new management contract is projected to create meaningful savings as compared to the previous advisory agreement for shareh
Slide 12: Oversight Through Strong Governance
Oversight Through Strong Governance 12 Executive Summary Financial Highlights Portfolio Overview Investment Strategy Management Team Conclusion The Board of Directors is comprised of a majority independent directors The Audit Committee and Conflict Committee are comprised solely of independent d
Slide 13: Conclusion
Assembled high - quality net lease property portfolio Best - in - class portfolio metrics Established local presence and expertise in our markets Designed cost - effective management structure Created in - place hedges to mitigate currency risk Pursuing pragmatic, steady growth Strong
Slide 14: The Platform
The Platform
Slide 15: Management Team and Board of Directors
Shameel Kahn CEO Gary Wilder Executive Chairman Jagdeep Kapoor CIO Moor Park Investment Committee Germany United Kingdom Nordics Benelux France Michael Glaser Illias Harcha Javier paz Valibuena Lars Von der Berg Greg Smith Veronia Baldi Diego Voss Mike Pille Jamal Dutheil Rodolphe De Clermont - Tonn
Slide 16: 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 17: 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. 17 Checks Compliance / Negotiation Management Credit Tenant
Slide 18: Legal Notices
Legal Notices
Slide 19: 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 20: Risk Factors
Risk Factors Our executive officers, our Advisor and its affiliates face conflicts of interest, including significant conflicts created by our Advisor's compensation arrangements with us and other investment programs advised by American Realty Capital affiliates and conflicts in allocating tim e a
Slide 21: 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 22: Definitions
Definitions 22 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"),
Slide 23: Definitions (cont'd)
Definitions (cont’d) 23 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
Slide 24: 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 25: Definitions (cont'd): Adjusted EBITDA and NOI
Definitions (cont’d) 18 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 transa
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