Global Net Lease, Inc. · NYSE:GNL
Global Net Lease — Q4 2024 Earnings Presentation
43 slides from Global Net Lease's earnings presentation, Feb 27, 2025
Slide 1: Global Net Lease Fourth Quarter 2024 Investor Presentation
Global Net Lease Fourth Quarter 2024 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
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: Strategic Sale of Multi-Tenant Portfolio
Strategic Sale of Multi-Tenant Portfolio Section I 3
Slide 5: Anticipated Strategic Benefits of the Transaction
4 ANTICIPATED STRATEGIC BENEFITS OF THE TRANSACTION We believe the sale of the Multi-Tenant Portfolio will be a transformative strategic transaction for GNL, providing a broad range of benefits with a clear focus on long-term value Transforms GNL into a Pure-Play Net Lease REIT Simplifies Operations
Slide 6: Transaction Overview
5 TRANSACTION OVERVIEW $1.78 billion sale of GNL’s multi-tenant retail portfolio (the “Multi-Tenant Portfolio”) to RCG Ventures Holdings (the “Purchaser”) 100% cash consideration after Purchaser’s assumption of pre-existing mortgage debt Subject to post-closing adjustments related to the execution o
Slide 7: The Multi-Tenant Portfolio (Under Contract)
6 Top 5 Tenants(2) THE MULTI-TENANT PORTFOLIO (UNDER-CONTRACT) 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 AR TN 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 AR TN Note: Portfolio metrics as of September 30, 2024. 1. Metrics are pr
Slide 8: Transforms GNL into a Pure-Play Net Lease REIT
Industrial & Distribution 45% Single-Tenant Retail 30% Single-Tenant Office 25% Industrial & Distribution 33% Multi-Tenant Retail 27% Single-Tenant Retail 22% Single-Tenant Office 18% Total Portfolio Annualized SLR(2) by Segment Existing Asset Diversification(1) New Asset Diversification Total Portf
Slide 9: ... and Enhances Its Global Exposure
United States 80% United Kingdom 11% Europe 9% Canada 0.4% United States 72% United Kingdom 14% Europe 13% Canada 1% Total Portfolio Annualized SLR(2) by Region Existing Geographic Diversification(1) Pro-Forma Geographic Diversification Total Portfolio Annualized SLR(2) by Region … AND ENHANCES ITS
Slide 10: Simplifies Operations and Enhances Portfolio Metrics
Risk Profile Improvement Higher Embedded Rent Growth Positive Impact on Operating Metrics % Leased(1) 96% 98% Operations and Risk Profile Improvement Q3’24 Annualized NOI Margin(2) 83% 90% Higher SS NOI Margin % IG Rated Tenants(3)(4) 61% 66% Enhanced Credit Profile of Tenant Base Rent Escalations(4
Slide 11: Significantly Reduces Leverage and Improves Liquidity Position
$5.3B $5.2B $5.0B $4.8B $3.1B 8.4x 8.4x 8.1x 8.0x 6.8x 4Q23 1Q24 2Q24 3Q24 GNL Post-Transaction $136M $175M $220M $253M $1B+ 4Q23 1Q24 2Q24 3Q24 GNL Post-Transaction SIGNIFICANTLY REDUCES LEVERAGE AND IMPROVES LIQUIDITY POSITION 1. Refers to Net Debt / Adjusted EBITDA. Net Debt represents total debt
Slide 12: Reflects Value Embedded Within GNL
O ADC NNN EPRT FCPT GTY NTST WPC BNL LXP OLP FVR PINE PKST GOOD ONL 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x 16.0x 18.0x Price / 2025E AFFO Net Debt / Q3’24 Annualized Adj. EBITDA (Inverted) Industrial Focused Net Lease Peers Retail Focused Net Lease Peers(1) (2) Other Net
Slide 13: Positions GNL for Long-Term Growth
12 POSITIONS GNL FOR LONG-TERM GROWTH 1. Assumes all net proceeds from the Multi-Tenant Portfolio sale are used to pay down the Revolving Credit Facility. 2. Pro-forma of $267M in proceeds from dispositions during 4Q24, announced on January 8, 2025. 3. Liquidity includes availability under the Revol
Slide 14: The New GNL – Sizable Platform / Diversified Portfolio / Pure-Play Strategy
$6.1B Real Estate Gross Asset Value (“RE GAV”)(1) Focused on Single-Tenant Net Lease Properties in the US and Europe 1,021 Properties 98% Leased 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 – SIZABLE PLATFORM
Slide 15: The New GNL – Optimal Size
14 $67.4B $17.8B $10.9B $9.3B $6.1B $5.7B $5.4B $5.4B $4.6B $3.4B $2.5B $2.2B $2.1B $1.6B $1.5B $0.9B $0.8B $0.6B O WPC NNN ADC GNL Post-Transaction⁽²⁾ EPRT BNL ILPT⁽³⁾ LXP FCPT PKST GTY NTST ONL GOOD OLP FVR PINE THE NEW GNL – OPTIMAL SIZE $5 - $10 Billion RE GAV(1) $10+ Billion RE GAV(1) $1 - $5 B
Slide 16: The New GNL – Superior Operating Metrics vs. Peers
86% 90% Single-Tenant Net Lease Peer Average⁽¹⁾ GNL Single-Tenant Portfolio 92% 95% GNL Multi-Tenant Portfolio Shopping Center Peer Average⁽²⁾ 68% 71% GNL Multi-Tenant Portfolio Shopping Center Peer Average⁽²⁾ 97% 98% Single-Tenant Net Lease Peer Average⁽¹⁾ GNL Single-Tenant Portfolio Q3’24 Annualiz
Slide 17: The New GNL – Rationalized G&A
16 $67.5M $64.7M $60.8M $50.4M $43.9M 4Q23 1Q24 2Q24 3Q24 GNL Post-Transaction THE NEW GNL – RATIONALIZED G&A Annualized Quarterly G&A $6.5M
Slide 18: The New GNL – Investment Highlights
17 Well-positioned to fund future growth and drive shareholder value High quality tenant base with 66% investment-grade rated tenants Objective to pursue an investment-grade credit rating in the near to medium-term THE NEW GNL – INVESTMENT HIGHLIGHTS Geographically diversified portfolio with presenc
Slide 19: Q4'24 Financial Results & Portfolio Overview
Q4’24 Financial Results & Portfolio Overview Section II 18
Slide 20: 2024 GNL Accomplishments
19 De-risked Balance Sheet by Proactively Managing Near-Term Debt Maturities GNL has proactively managed the 2025 debt maturity, reducing the outstanding balance by approximately $250 million since original issuance; the multi-tenant portfolio sale would enable GNL to pay down the outstanding balanc
Slide 21: 2025 Initial Financial Guidance
20 2025 guidance is now introduced below, contingent on the sale of the multi-tenant portfolio 2025 INITIAL FINANCIAL GUIDANCE Financial Metric FY 2025 AFFO per Share Range $0.90 to $0.96 (1) Net Debt / Adjusted EBITDA Range 6.5x to 7.1x (1)(2) The initial guidance reflects GNL’s expectations that t
Slide 22: Fourth Quarter 2024 Financial Highlights
21 $400 $600 $650 $800 $835 Earnings Summary ($mm) Q4’24 Net Loss Attributable to Common Stockholders $(17.5) NOI $163.5 (6) Cash NOI $161.2 (6) Core Funds from Operations (Core FFO) $68.5 (6) Adjusted Funds from Operations (AFFO) $78.3 (6) Core Funds from Operations (Core FFO) $0.30 (6) per Share A
Slide 23: Debt Maturities and Balance Sheet
22 $5,288 $5,246 $5,005 $4,843 $4,554 $465 $106 $163 $530 $660 $400 $1,390 $500 $500 2025 2026 2027 2028 2029 Thereafter Mortgage Debt Revolving Credit Facility Senior Notes GNL continues to strengthen its balance sheet, reducing outstanding net debt by $734 million since Q4’23 and improving Net Deb
Slide 24: Successfully Executing Disposition Plan
23 SUCCESSFULLY EXECUTING DISPOSITION PLAN & USING NET PROCEEDS TO REDUCE LEVERAGE Wtd. Avg. Lease Term Remaining(2) Cash Cap Rate(1) Disposition Price (in mm) # of Properties Closing Date Disposition Name Closed (as of 12/31/24): Truist Properties (ST Retail) Closed: Q1’24-Q3’24 21 $51.5 – – Shippe
Slide 25: Disposition Plan Pipeline (as of 2/25/25)
24 Wtd. Avg. Lease Term Remaining(2) Cash Cap Rate(1) Disposition Price (in mm) # of Properties Expected Closing Disposition Name Closed (as of 2/25/25): Pizza Hut (ST Retail) Closed: Q1’25 11 $14.4 – – Total Occupied Assets Closed: Q1’25 11 $14.4 7.5% 14.0 Years Total Vacant Assets Closed: Q1’25 2
Slide 26: Portfolio Overview
25 Portfolio Overview Q4’24 Properties 1,121 Square Feet (millions) 60.7 % Leased 97% Weighted Average Remaining Lease Term (“WALT”) 6.2 years (1) % of SLR Derived from United States & Canada vs. Europe 80% | 20% Industries 90 Tenants 705 % of SLR derived from Investment Grade Tenants (“IG Rated”)(2
Slide 27: Well Positioned Portfolio with Strong Key Metrics
26 Industrial WELL POSITIONED PORTFOLIO WITH STRONG KEY METRICS Note: Portfolio metrics as of December 31, 2024. 1. Calculated as of December 31, 2024, using annualized rent (“SLR”) converted from local currency into USD as of December 31, 2024 for the in-place lease on the property on a straight-li
Slide 28: Top Ten Tenants
27 1. Metric based on annualized SLR as of December 31, 2024. Refer to SLR definition included in the footnotes on slide 26. 2. McLaren’s credit rating is currently under review after the announcement that CYVN Holdings, owned by the Government of Abu Dhabi has entered into a non-binding agreement t
Slide 29: Geographically Diversified with a Global Presence
28 MIDWEST NC FL GA AL MS LA TX NM AZ CA NV UT ORWA ID MTWYCO ND SDNE KSOK AR MO IA MN WI MI IL IN OH KY TN SCNC WV VA PANYVT NH ME MA NJ CT MD DEDC RI NB PACIFIC SOUTHWEST SOUTHWEST MID-ATLANTIC NEW PACIFIC BRUNSWICK NORTHWEST SOUTH EAST AK NORTHEAST GEOGRAPHICALLY DIVERSIFIED WITH A GLOBAL PRESENC
Slide 30: Attractive Lease Maturity Schedule
29 7.1% 6.6% 9.1% 15.2% 14.2% 47.8% 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 31: Continued Leasing Momentum Driven by Strong Asset Management
30 Leasing momentum continued in Q4 2024 with 72 lease renewals and new leases, representing nearly 1.2 million square feet and over $16 million of straight-line rent Q4 2024(1) Leasing and Renewal Activity Total Portfolio Multi-Tenant Retail Portfolio Single-Tenant Portfolio New Leases + Renewals C
Slide 32: Portfolio Diversification by Segment and Industry
31 Financial Services, 7% Auto Manufacturing, 6% Discount Retail, 6% Specialty Retail, 5% Healthcare, 5% Gas/Convenience, 4% Freight, 4% Consumer Goods, 3% Apparel Retail, 3% Other, 57% Industrial & Distribution 33% Multi-Tenant Retail 28% Single-Tenant Retail 21% Single-Tenant Office 18% Grocery An
Slide 33: Industrial & Distribution Overview
32 United States 74% Europe 9% United Kingdom 16% Canada 1% Tenant Credit Rating Country % of SLR Actual: Baa2 U.S. / Canada 3.5% Actual: CCC+ U.K. 2.9% Actual: Baa2 U.S. / Italy 2.2% Implied: Baa1 U.S. 1.5% Actual: Baa2 U.S. 1.4% Top 5 Tenants 74.8% IG Rated(2)(3) 11.5% Segment Highlights Lease Mat
Slide 34: Multi-Tenant Retail Overview
33 1.1% 2.6% 2.3% 3.6% 3.5% 10.1% 2025 2026 2027 2028 2029 2030 + 90.3% 91.3% Q3'24 Occupancy Q4'24 Occupancy Multi-Tenant Leasing Is Expected To Increase Occupancy to 92.5% MULTI-TENANT RETAIL OVERVIEW Tenant Credit Rating Country % of SLR Actual: B1 U.S. 1.4% Actual: Baa2 U.S. 1.2% Actual: Ba3 U.S
Slide 35: Single-Tenant Retail Overview
34 1.3% 0.7% 1.1% 1.4% 1.0% 6.6% 2025 2026 2027 2028 2029 2030 + United States 88% Europe 4% United Kingdom 8% SINGLE-TENANT RETAIL OVERVIEW Tenant Credit Rating Country % of SLR Implied: Baa1 U.S. 3.4% Actual: Baa2 U.S. 1.5% Actual: A3 U.S. 1.4% Actual: Baa3 U.S. 1.2% Actual: Ba3 U.K. 1.0% Top 5 Te
Slide 36: Single-Tenant Office Overview
35 1.8% 1.7% 1.1% 1.3% 1.7% 3.5% 2025 2026 2027 2028 2029 2030 + SINGLE-TENANT OFFICE OVERVIEW Tenant Credit Rating Country % of SLR Actual: Aaa U.S. 1.8% Actual: Aa3 Netherlands 1.5% Implied: A Luxembourg 0.8% Actual: Ba2 U.S. 0.8% Implied: Baa2 U.S. 0.7% Top 5 Tenants 85.7% IG Rated(3)(4) 5.6% Seg
Slide 37: Leadership Overview
36 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 38: Appendix: Financial Definitions
37 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 39: Funds from Operations Definitions
38 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 40: Funds from Operations, Core FFO and AFFO (Cont'd)
39 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 41: Net Operating Income Definition
40 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 42: Non-GAAP Reconciliations
41 NON – GAAP RECONCILIATIONS 1. These costs primarily consist of advisory, legal and other professional costs that were directly related to the Merger and Internalization. 2. Amounts include costs related to (i) compensation incurred for our former Co-Chief Executive Officer who retired effective M
Slide 43: Non-GAAP Reconciliations: FFO, Core FFO and AFFO
42 Three Months Ended (Amounts in thousands) 31-Dec-24 Net loss attributable to common stockholders (in accordance with GAAP) $(17,458) Impairment charges 20,098 Depreciation and amortization 83,020 Gain on dispositions of real estate investments (21,326) FFO (as defined by NAREIT) attributable to s