U.S. stocks lower as investors rotate out of tech ahead of Jackson Hole
Investing.com - KeyBanc maintained its Sector Weight rating on Global Net Lease (NYSE:GNL), a $1.63 billion market cap REIT, on Friday, highlighting the company’s successful execution following its 2023 merger with RTL. According to InvestingPro analysis, GNL appears slightly undervalued at current levels.
The investment firm noted several accomplishments by GNL, including an internalization transaction, synergy realization, leverage reduction, and strategic non-core dispositions that have transformed it into a pure-play, single-tenant Net Lease REIT. The company maintains strong liquidity with a current ratio of 1.28 and has achieved impressive revenue growth of 38.85% over the last twelve months.
GNL management outlined three key milestones it is working toward: further reducing leverage, completing strategic dispositions, and securing a credit rating upgrade, according to KeyBanc.
The firm indicated GNL appears to be positioning itself to resume growth in 2026, which could potentially help close the valuation gap compared to its Net Lease peers. Despite broader market uncertainty, Net Lease REITs and GNL have outperformed the MSCI U.S. REIT index by 1,060 basis points and 650 basis points, respectively.
KeyBanc expressed a more constructive view on the company but maintained its Sector Weight rating, suggesting challenging macroeconomic conditions may limit stock performance in the near term, with shares expected to trade in line with the sector. The stock currently offers a substantial 10.37% dividend yield, with analyst price targets ranging from $8 to $12. For deeper insights into GNL’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Global Net Lease (GNL) reported disappointing first-quarter 2025 financial results, with an earnings per share (EPS) of -$0.87, significantly missing the forecasted -$0.085. Revenue for the quarter was $132.4 million, falling short of the anticipated $190.1 million. Despite these setbacks, the company remains focused on its strategic initiatives, having completed a major property sale generating $1.1 billion in gross proceeds. JMP analysts have reiterated their Market Outperform rating for GNL, maintaining a price target of $9.00, highlighting the company’s effective de-leveraging strategy. The company’s debt to EBITDA ratio has improved, dropping to 6.7 times from its peak, and JMP sees potential for further multiple expansion. In governance news, Robert Kauffman has been appointed as the Non-Executive Chairperson of GNL’s Board of Directors, succeeding Sue Perrotty. Kauffman brings extensive experience in real estate and capital markets, which is expected to support GNL’s transition to a pure-play single-tenant net lease company. These developments are part of GNL’s broader strategic realignment, aiming to enhance shareholder value and financial flexibility.
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