Global Net Lease, Inc. Q1 FY2025 earnings call

• Completed merger and internalization in September 2023, strengthened governance by broadening and diversifying the board. • Launched initiative to reduce leverage, with 60% of portfolio consisting of investment-grade tenants, weighted average lease term of 6.3 years, and 1.5% average annual rent increases. • Signed definitive agreement for sale of multi-tenant portfolio to RCG Ventures, first phase completed with $1.1 billion gross proceeds, paydown of $850 million on revolving credit facility. • On track to complete sale of 41 encumbered properties by end of Q2 2025. • Board approved $300 million share repurchase program, repurchased 7.9 million shares at $7.50 average price. • Portfolio had over 1,000 properties, 95% occupancy (98% pro forma after vacant property sales), 76% straight-line rent in North America, 24% in Europe. • Took steps to reduce exposure to gas and convenience store sector, monitored tenants regularly.

No specific breakdown of product segments by revenue contribution was provided in the transcript.

• Reaffirmed AFFO per share guidance range of $0.90 to $0.96. • Reaffirmed net debt to adjusted EBITDA range of 6.5 times to 7.1 times. • Intends to pay off maturing debt in Q2 2025 and warehouse balance on revolving credit facility.

• Market volatility and tariffs introducing uncertainty. • Potential impact of macroeconomic events on the portfolio. • Risks associated with tenant financial difficulties and market changes in certain sectors like gas and convenience stores.

Q: On the disposition pipeline of $2.1 billion, can you break down the remaining $300 million that's not part of the multi-tenant portfolio sale by either sector or geography?

A: In filed materials and pipeline report, it's non-core disposition pipeline ongoing since end of 2024 into 2025, related to further deleveraging.

Q: How much do you think tariffs will impact ability to sell or pricing?

A: Continue to see opportunity to sell assets to local private buyers or 1031 buyers, repositioning through developer sales still strong, relationships with brokers helpful.

Q: Is 12% AFFO yield the hurdle rate for future buybacks?

A: Pleased with buyback execution, opportunistic, will continue monitoring AFFO accretion, but aim for stock price to close gap to NAV.

Q: Strategy on capital allocation (buying shares, paying down debt, buying assets)?

A: Focused on reduction of leverage and opportunistic share buybacks, market not currently interesting for buying assets, leverage reduction to improve cost of capital and work towards investment grade rating.

Q: Breakdown of disposition pipeline beyond multi-tenant sale, strategy for C-stores and other sectors?

A: Looking at retail and office opportunities for disposition, lightening exposure to gas and convenience store sector, strategic review of sectors ongoing.

Q: Did contractors pay rent in Q1?

A: No.

Q: Thoughts on back half of year AFFO and transaction impact?

A: Income statement strips out multi-tenant, G&A expected to decrease by $6.4 million annually due to multi-tenant sale.

Q: Vacant assets and future proceeds?

A: Bulk of vacant assets handled, not much vacancy left in portfolio going forward