Reduced Net Debt by $1.3 Billion Year-Over-Year; Increased Liquidity to $911 Million and Revolving Credit Facility Capacity to $1.5 Billion
Decreased Annualized G&A Expense by 25% Year-Over-Year, Representing $16 Million in Savings
Entered Into Definitive Merger Agreement to Acquire Modiv Industrial in $535 Million All-Stock Transaction
Immediate 4% Accretion Expected to AFFO in Leverage-Neutral Transaction
Reports Q1'26 AFFO Per Share of $0.21 and Reaffirms Full-Year Guidance, Including AFFO Per Share Guidance of $0.80 to $0.84; GNL to Update Guidance Upon Closing of Modiv Acquisition
NEW YORK, May 05, 2026 (GLOBE NEWSWIRE) -- Global Net Lease, Inc. (NYSE:GNL) ("GNL" or the "Company"), a publicly traded real estate investment trust that focuses on acquiring and managing a global portfolio of income producing net lease assets across the United States, and Western and Northern Europe, announced today its financial and operating results for the quarter ended March 31, 2026.
Acquisition of Modiv Industrial, Inc.
GNL has entered into a definitive merger agreement to acquire Modiv Industrial, Inc. ("Modiv") in an all-stock transaction with a fixed exchange ratio of 1.975, to lock in the 4% accretion, at an enterprise value of approximately $535 million
Transaction, once closed, is expected to be immediately 4% accretive to AFFO per share, and is structured to be leverage-neutral within GNL's stated guidance range of 6.5x to 6.9x to maintain GNL's balance sheet strength and preserve financial flexibility
Once closed, expected to expand GNL's exposure to high-quality industrial assets, supported by a 15.0 year weighted average lease term1, 2.4% average annual rent escalations2, and a well-recognized tenant base of leading global brands, with 45% of annual base rent derived from investment-grade tenants3
Transaction is expected to close in third quarter of 2026, subject to customary closing conditions
First Quarter 2026 Highlights
Revenue was $109.3 million, compared to $132.4 million in first quarter 2025, primarily reflecting the impact of asset dispositions, including the $1.8 billion multi-tenant retail portfolio sale in 2025
Net loss attributable to common stockholders was $16.0 million, compared to a net loss of $200.3 million in first quarter 2025
Adjusted Funds from Operations ("AFFO")4 was $43.9 million, or $0.21 per share, compared to $66.2 million in first quarter 2025, or $0.29 per share
Continued to use net proceeds from non-core asset sales to reduce leverage and strengthen the balance sheet; reduced net debt by $1.3 billion since first quarter of 2025
Increased liquidity to $911.1 million and Revolving Credit Facility capacity to $1.5 billion in first quarter 2026, compared to $499.1 million and $1.4 billion, respectively, in first quarter 2025
Year-to-date closed plus disposition pipeline totaling $132 million5, of which 68% is comprised of office sales, further advancing the Company's strategic initiative to reduce its office exposure; sales include $38 million of occupied assets closed or under contract at a 7.9% cash cap rate6, with the remaining dispositions primarily consisting of vacant assets that the Company expects to eliminate over $1 million of annualized NOI drag
Repurchased 19.7 million shares of outstanding common stock under the Share Repurchase Program announced in February 2025, at a weighted average price of $8.05, for a total of $158.2 million as of May 1, 2026; this includes 4.2 million shares for a total of $38.4 million repurchased in first quarter 2026
Building on the successful repositioning of the portfolio, including the $1.8 billion multi-tenant retail portfolio sale, GNL lowered its annualized G&A expense by 25% year-over-year to $49 million, down from $65 million in first quarter 2025, reflecting the benefits of portfolio simplification and operational efficiencies
Increased portfolio occupancy to 97% compared to 95% in first quarter 2025, with office occupancy increasing to 99% in first quarter 2026 compared to 95% in first quarter of 2025
Leased over 141,000 square feet, achieving a 5.1% renewal leasing spread and a weighted average renewal term of 5.8 years, resulting in over $1.6 million of new straight-line rent
Weighted average annual rent increase of 1.5% provides organic rental growth, excluding 20.1% of the portfolio with CPI-linked leases that have historically experienced significantly higher rental increases
Reduced capital expenditures to $1.6 million in the first quarter 2026 from $9.8 million in the first quarter 2025, reflecting a more streamlined portfolio and supporting enhanced cash flow
Sector-leading tenant quality with 64% of annualized straight-line rent coming from investment-grade or implied investment-grade tenants7, an increase from 60% in first quarter 2025
"GNL's performance in the first quarter of 2026 builds on our accomplishments in 2025, a pivotal year in which we meaningfully reduced leverage, reinforced our credit profile, and elevated the overall quality of our portfolio," said Michael Weil, CEO of GNL. "In 2026, we are focused on capitalizing on our strong foundation and positioning to advance our focus on growth through redeployment of disposition proceeds. We are already making tangible progress in selectively reducing our office exposure, including the pending sale of a GSA-leased asset at a 7.2% cash cap rate, while redeploying proceeds into single-tenant industrial and retail investments, such as a net lease industrial asset occupied by a Fortune 50 company at an 8.2% cash cap rate, that enhance the quality and earnings power of our portfolio. The Modiv transaction reflects this same disciplined approach, bringing, following the close, a high-quality industrial net lease portfolio into GNL in a transaction that is expected to be immediately accretive and structured as leverage neutral. We believe this acquisition will accelerate our transition to earnings growth in 2026, as we move beyond our deleveraging initiative while continuing to strategically reduce our office exposure."
Full Year 2026 Guidance8
GNL reaffirms its full-year 2026 guidance. This guidance excludes the anticipated benefit from the Modiv transaction, which will be addressed and updated upon closing.
Financial Metric
2026 Guidance
AFFO Per Share
$0.80 to $0.84
Net Debt to Adjusted EBITDA
6.5x to 6.9x
2026 Guidance assumes gross transaction volume, inclusive of both dispositions and acquisitions, of $250 million to $350 million. This guidance reflects GNL's focus on disposing of select office assets and redeploying capital into accretive acquisitions of single-tenant industrial and retail assets.
Summary of Results
Three Months Ended March 31,
(In thousands, except per share data)
2026
2025
Revenue from tenants
$
109,286
$
132,415
Net loss attributable to common stockholders
$
(16,014
)
$
(200,315
)
Net loss per diluted common share
$
(0.08
)
$
(0.87
)
NAREIT defined FFO attributable to common stockholders
$
28,086
$
32,961
NAREIT defined FFO per diluted common share
$
0.13
$
0.14
AFFO attributable to common stockholders
$
43,896
$
66,220
AFFO per diluted common share
$
0.21
$
0.29
Property Portfolio
As of March 31, 2026, GNL's portfolio of 809 net lease properties is comprised of approximately 40 million rentable square feet located in ten countries and territories. The Company operates in three reportable segments: (1) Industrial & Distribution, (2) Retail and (3) Office. Portfolio metrics include:
97% leased with a remaining weighted-average lease term of 5.9 years9
87% of the portfolio contains contractual rent increases based on annualized straight-line rent
64% of portfolio's annualized straight-line rent is derived from investment grade and implied investment grade rated tenants
74% U.S. and Canada, 26% Europe (based on annualized straight-line rent)
47% Industrial & Distribution, 27% Retail and 26% Office (based on an annualized straight-line rent)
Capital Structure and Liquidity Resources10
As of March 31, 2026, the Company had liquidity of $911.1 million, and $1.5 billion11 of capacity under its Revolving Credit Facility, compared to $499.1 million and $1.4 billion, respectively, as of the end of first quarter 2025. The Company had net debt of $2.4 billion12, including $1.3 billion of gross mortgage debt as of March 31, 2026 and Net Debt to Adjusted EBITDA was 7.2x.
As of March 31, 2026, the percentage of debt that is fixed rate (including variable rate debt fixed with swaps) was 99%. The Company's total combined debt had a weighted average interest rate of 4.1%, resulting in an interest coverage ratio of 3.0 times13. Weighted-average debt maturity was 2.7 years as of March 31, 202614.
Footnotes/Definitions
1 Metric based on square feet as of December 31, 2025, adjusted for Modiv's previously disclosed disposition of Northrop Grumman and Kalera.
2 Metric based on annual base rent as of December 31, 2025, adjusted for Modiv's previously disclosed disposition of Northrop Grumman and Kalera.
3 Investment Grade includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied investment grade may include actual ratings of tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant's obligation under the lease) or by using a proprietary Moody's analytical tool, which generates an implied rating by measuring a company's probability of default. The term "parent" for these purposes includes any entity, including any governmental entity, owning more than 50% of the voting stock in a tenant or a guarantor. Based on Annual Base Rent and as of December 31, 2025, Modiv's portfolio was 23% actual investment grade rated and 22% implied investment grade rated.
4 While we consider AFFO a useful indicator of our performance, we do not consider AFFO as an alternative to net income (loss) or as a measure of liquidity. Furthermore, other REITs may define AFFO differently than we do. Projected AFFO per share data included in this release is for informational purposes only and should not be relied upon as indicative of future dividends or as a measure of future liquidity.
5 Year-to-date disposition pipeline totaling $132 million as of May 1, 2026. Closed plus active disposition pipeline includes $75 million of closed sales and $57 million under signed purchase and sale agreements ("PSA"). There can be no assurances that the transactions under such PSA will be consummated on the above terms, if at all.
6 Excludes dark properties.
7 As used herein, "Investment Grade Rating" includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied Investment Grade may include actual ratings of tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant's obligation under the lease) or by using a proprietary Moody's analytical tool, which generates an implied rating by measuring a company's probability of default. The term "parent" for these purposes includes any entity, including any governmental entity, owning more than 50% of the voting stock in a tenant or a guarantor. Ratings information is as of March 31, 2026. Comprised of 33.5% leased to tenants with an actual investment grade rating and 30.9% leased to tenants with an Implied Investment Grade rating based on annualized straight-line rent as of March 31, 2026.
8 We do not provide guidance on net income. We only provide guidance on AFFO per share and our Net Debt to Adjusted EBITDA ratio and do not provide reconciliations of this forward-looking non-GAAP guidance to net income per share or our debt to net income due to the inherent difficulty in quantifying certain items necessary to provide such reconciliations as a result of their unknown effect, timing and potential significance. Examples of such items include impairment of assets, gains and losses from sales of assets, and depreciation and amortization from new acquisitions and other non-recurring expenses.
9 Weighted-average remaining lease term in years is based on square feet as of March 31, 2026.
10 During the three months ended March 31, 2026, the Company did not sell any shares of Common Stock through its Common Stock "at-the-market" program. However, as of May 1, 2026, the Company had repurchased 19.7 million shares of outstanding common stock under its Share Repurchase Program announced in February 2025 for a total of $158.2 million; this includes 4.2 million shares for a total of $38.4 million repurchased in first quarter 2026.
11 Liquidity represents the aggregate amount of cash and cash equivalents and borrowing availability under our Revolving Credit Facility, utilizing the value of our applicable assets as of March 31, 2026 for the borrowing base calculation under such facility, and capacity represents the total undrawn commitments under our Revolving Credit Facility. Liquidity includes $785.6 million of availability under the Revolving Credit Facility and $125.5 million of cash and cash equivalents as of March 31, 2026.
12 Comprised of the principal amount of GNL's outstanding debt totaling $2.6 billion less cash and cash equivalents totaling $125.5 million, as of March 31, 2026.
13 The interest coverage ratio is calculated by dividing Adjusted EBITDA for the applicable quarter by cash paid for interest (calculated based on interest expense less non-cash portion of interest expense). Management believes that Interest Coverage Ratio is a useful supplemental measure of our ability to service our debt obligations. Adjusted EBITDA and Cash Paid for Interest are Non-GAAP metrics and are reconciled below.
14 Assumes we exercise both 6-month extension options on our Revolving Credit Facility.
Conference Call
GNL Management will be participating in the Wells Fargo 29th Annual Real Estate Securities Conference in Charleston, South Carolina, on Wednesday, May 6th, where the team will spend the day meeting with various investors, and therefore GNL will host its first quarter 2026 earnings call on Thursday, May 7th.
GNL will host a webcast and conference call on May 7, 2026 at 11:00 a.m. ET to discuss its financial and operating results. To listen to the live call, please go to GNL's "Investor Relations" section of the website at least 15 minutes prior to the start of the call to register and download any necessary audio software.
Dial-in instructions for the conference call and the replay are outlined below.
Conference Call Details
Live Call
Dial-In (Toll Free): 1-877-407-0792
International Dial-In: 1-201-689-8263
Conference Replay*
For those who are not able to listen to the live broadcast, a replay will be available shortly after the call on the GNL website at www.globalnetlease.com.
Or dial in below:
Domestic Dial-In (Toll Free): 1-844-512-2921
International Dial-In: 1-412-317-6671
Conference Number: 13759488
*Available from 2:00 p.m. ET on May 7, 2026 through August 7, 2026.
Supplemental Schedules
The Company will furnish supplemental information packages with the Securities and Exchange Commission (the "SEC") to provide additional disclosure and financial information. Once posted, the supplemental package can be found under the "Presentations" tab in the Investor Relations section of GNL's website at www.globalnetlease.com and on the SEC website at www.sec.gov.
About Global Net Lease, Inc.
Global Net Lease, Inc. (NYSE:GNL) is a publicly traded real estate investment trust that focuses on acquiring and managing a global portfolio of income producing net lease assets across the United States, and Western and Northern Europe. Additional information about GNL can be found on its website at www.globalnetlease.com.
Forward-Looking Statements
The statements in this press release that are not historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks and uncertainties that could cause the outcome to be materially different. The words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "projects," "potential," "predicts," "expects," "plans," "intends," "would," "could," "should" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside of the Company's control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the risks that any potential future acquisition, including the Modiv acquisition, or disposition by the Company is subject to market conditions, capital availability and timing considerations and may not be identified or completed on favorable terms, or at all. Some of the risks and uncertainties, although not all risks and uncertainties, that could cause the Company's actual results to differ materially from those presented in its forward-looking statements are set forth in the "Risk Factors" and "Quantitative and Qualitative Disclosures about Market Risk" sections in the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and all of its other filings with the U.S. Securities and Exchange Commission, as such risks, uncertainties and other important factors may be updated from time to time in the Company's subsequent reports. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.
Contacts:
Investors and Media:Email: [email protected]Phone: (332) 265-2020
Global Net Lease, Inc.Consolidated Balance Sheets (Unaudited)(Amounts in thousands)
March 31,2026
December 31,2025
ASSETS
Real estate investments, at cost:
Land
$
648,558
$
659,086
Buildings, fixtures and improvements
3,534,839
3,592,121
Construction in progress
3,630
2,993
Acquired intangible lease assets
503,278
523,406
Total real estate investments, at cost
4,690,305
4,777,606
Less accumulated depreciation and amortization
(976,371
)
(966,982
)
Total real estate investments, net
3,713,934
3,810,624
Real estate assets held for sale
19,914
49,654
Assets related to discontinued operations
—
348
Cash and cash equivalents
125,479
180,114
Restricted cash
11,979
13,949
Derivative assets, at fair value
1,223
7
Unbilled straight-line rent
72,969
72,919
Operating lease right-of-use asset
61,868
63,362
Prepaid expenses and other assets
56,516
60,415
Multi-tenant disposition receivable, net
22,013
27,934
Deferred tax assets
5,139
5,167
Goodwill
45,628
45,898
Deferred financing costs, net
15,638
16,812
Total Assets
$
4,152,300
$
4,347,203
LIABILITIES AND EQUITY
Mortgage notes payable, net
$
1,222,275
$
1,264,604
Revolving credit facility
290,006
324,165
Senior notes, net
934,020
928,169
Acquired intangible lease liabilities, net
16,714
17,501
Derivative liabilities, at fair value
1,727
5,298
Accounts payable and accrued expenses
29,162
43,821
Operating lease liability
40,634
41,429
Prepaid rent
26,718
28,254
Deferred tax liability
17,518
17,796
Dividends payable
11,570
11,718
Real estate liabilities held for sale
64
60
