Global Net Lease Q2 Earnings Call Highlights

Global Net Lease reported second-quarter 2026 revenue of $112.5 million, a net loss attributable to common stockholders of $7.5 million and adjusted funds from operations (AFFO) of $45.7 million, or $0.22 per share. AFFO per share increased from $0.21 in the first quarter, while the company raised its full-year outlook following its pending acquisition of Modiv Industrial. Chief Executive Officer Michael Weil said the company expects the Modiv transaction to close in mid-August, shortly after Modiv shareholders vote on the deal at an Aug. 10 special meeting. GNL said the acquisition is expected to be approximately 4% accretive to AFFO per share and leverage neutral. Modiv’s industrial portfolio has a weighted average remaining lease term of 15 years and contractual annual rent escalations of 2.4%. Upon closing, GNL expects its portfolio weighted average lease term to rise to 6.6 years and industrial assets to account for about 50% of total straight-line rent. The company said its revised 2026 guidance includes roughly one and a half quarters of expected contribution from the Modiv acquisition. Chief Financial Officer Chris Masterson said GNL raised its full-year AFFO guidance to $0.82 to $0.85 per share from a prior range of $0.80 to $0.84. GNL also increased its gross transaction-volume guidance to $700 million to $800 million, compared with previous guidance of $250 million to $350 million. It reaffirmed its net debt-to-adjusted EBITDA target range of 6.5x to 6.9x. During the question-and-answer session, Weil said the company expects to retain most of Modiv’s industrial assets but could sell certain properties that do not fit GNL’s long-term portfolio strategy. He said there are no restrictions on GNL’s ability to sell Modiv assets after the transaction closes. GNL continued to sell non-core properties, particularly office assets. Through July 31, the company had closed and pending dispositions totaling $263 million, including $145 million of completed sales at a weighted average cash capitalization rate of 7.6% for occupied assets. Approximately 78% of the overall disposition volume consisted of office properties. The company said it remains under contract to sell a 133,000-square-foot KPN-leased office property in the Netherlands for about $18 million. Closing is scheduled to coincide with the property’s lease expiration in December 2026. GNL said it received a non-refundable deposit and expects to collect full contractual rent through the closing date. GNL also sold a 33,000-square-foot office property leased to the U.S. Gener...