Global Net Lease, Inc. · NYSE:GNL
Global Net Lease — Investor Presentation (March 2017)
22 slides from Global Net Lease's investor presentation, March 2017
Slide 1: Investor Presentation March 2017
Investor Presentation March 2017
Slide 2: The GNL Advantage
The GNL Advantage Best in Class Portfolio • 310 properties with long duration leases to largely investment grade(1) tenants • Mission critical assets that are strategically important to tenants’ core operating businesses Differentiated Strategy • Focus on well-established markets in U.S. and Western
Slide 3: Real Estate Strategy – A Focus on Quality
Real Estate Strategy – A Focus on Quality GNL is focused on the continued development of its best-in-class portfolio of assets leased to largely investment grade tenants in quality markets in the U.S. and Europe, including: • Multinational corporations and their subsidiaries with long operating hist
Slide 4: Portfolio Highlights
Portfolio Highlights GNL owns a portfolio of 310 assets diversified across 7 countries, 95 tenants and 40 industries as of December 31, 2016 Portfolio Overview Top Ten Tenants Properties 310 Tenant Rating(1) Country Property Type % of Portfolio SLR (2) Total Square Feet (million) 22.0 Aaa** U.S. Off
Slide 5: Portfolio Highlights
Portfolio Highlights 72.3% of SLR(1) is derived from investment grade and implied investment grade tenants(1)(2) Credit Rating (1) (2) Geography (1) Actual U.K. Germany Not Rated Investment 21.9% 8.1% 3.4% Grade The Netherlands 32.2% 6.5% Finland Non 5.9% Investment Grade France 24.3% 4.6% Luxembour
Slide 6: GNL vs. Peers
GNL vs. Peers Geographic Breakdown(1) Average Remaining Lease Term (Years)(3) 49.0% 100.0% 100.0% 100.0% 100.0% 100.0% 1.8% 34.0% 100% 14.0 98.2% 11.6 12.0 10.7 80% Peer Average: 9.7 years 10.1 9.8 9.8 9.7 10.0 8.6 60% 66.0% 8.0 7.5 51.0% 6.0 40% 4.0 20% 2.0 0% 0.0 (2) GNL LXP NNN O SIR SRC GPT WPC
Slide 7: 2016 Accomplishments
2016 Accomplishments GNL has taken a number of positive steps throughout 2016: • Net income attributable to shareholders increased to $47.1 million in 2016 from ($2.1) million in 2015 • Completed acquisition of Global II: • Acquired $623.0 million in total assets at fair value(1) • Assumed total lia
Slide 8: 2016 Results
2016 Results Earnings Metrics FY 2016 FY 2015 Change Net Income Attributable to $47.1 million ($2.1 million) +$49.2 million Stockholders NOI(1) $195.1 million $187.1 million +4.3% AFFO(1) $127.1 million $114.1 million +11.4% Weighted Average Shares 170.2 million 174.3 million -2.4% Outstanding Debt
Slide 9: Balance Sheet
Balance Sheet As of December 31, 2016 (in Millions) Assets Total real estate investments, net $ 2,715.6 Cash and cash equivalents 69.8 Other Assets 106.1 Total Assets $ 2,891.5 Liabilities & Equity Mortgage notes payable, net(1) (Weighted-average interest rate of 2.7%) $ 749.9 Credit facility (Effec
Slide 10: GNL 4th Quarter Activity
GNL 4th Quarter Activity Global Net Lease substantially completed two significant initiatives during the 4th quarter of 2016 Acquisition of Global II Asset Recycling Program • Total Consideration: $220.9 million • GNL issued 28.7 million common shares as • Refine GNL Portfolio: GNL executed program
Slide 11: GNL Diversification
GNL Diversification The acquisition of Global ll further diversified GNL’s best-in-class portfolio GNL 3Q 2016 Geographic Exposure(1) GNL 4Q 2016 Geographic Exposure(2) U.S. 61.4% U.S. 51.0% Europe 38.9% Europe 49.0% U.K. 17.3% U.K 21.9% Germany 9.6% U.S. 51.0% Germany 8.1% U.S. The 61.4% Netherland
Slide 12: 2017 Key Initiatives
2017 Key Initiatives • Reposition capital structure • Acquire an additional $150 to $200 million of assets Initiatives • Review and potentially sell $50 to $75 million of assets • Position for ratings agency discussions • Restructure debt stack • Initiate new unsecured credit facility Capital Struct
Slide 13: Forward Looking Statements
Forward Looking Statements 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 regarding future events. The forward-looking statements involve a number of risks, uncertainties and other
Slide 14: Risk Factors
Risk Factors 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 Annual Re
Slide 15: Risk Factors (Continued)
Risk Factors (Continued) 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 the Advisor to waive reimbursement of certain expense and fees to fund our operations. There is no assurance that the Advis
Slide 16: 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
Slide 17: Definitions
Definitions 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"), which we believe to be an appro
Slide 18: Definitions (Continued)
Definitions (Continued) 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 (which can vary among owners of ident
Slide 19: Definitions (Continued)
Definitions (Continued) In calculating AFFO, we exclude certain expenses, which under GAAP are characterized as operating expenses in determining operating net income. All paid and accrued merger, acquisition and transaction related fees and certain other expenses negatively impact our operating p
Slide 20: Definitions (Continued)
Definitions (Continued) Net operating income ("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 co
Slide 21: Non – GAAP Reconciliations
Non – GAAP Reconciliations Three Months Ended (In thousands) Dec 31, 2016 Dec 31, 2015 EBITDA: Net income $ 16,071 $ 12,449 Depreciation and amortization 23,405 23,918 Interest expense 9,004 10,065 Income tax expense 2,994 2,243 EBITDA $ 51,474 $ 48,675 Adjusted EBITDA: Listing fees $ - $ 150 Change
Slide 22: Non – GAAP Reconciliations (Continued)
Non – GAAP Reconciliations (Continued) Three Months Ended (In thousands, except per share data) Dec 31, 2016 Dec 31, 2015 Funds from operations (FFO): Net income attributable to stockholders (in accordance with GAAP) $ 15,946 $ 12,312 Depreciation and amortization 23,405 23,918 Gains on dispositions
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