Global Net Lease stock rating reiterated at Market Outperform by Citizens

Investing.com - Citizens has reiterated its Market Outperform rating and $9.00 price target on Global Net Lease (NYSE:GNL), citing the company’s successful debt reduction strategy and improved financial performance. GNL currently trades at $8.08, with analyst targets ranging from $8 to $12, suggesting potential upside of 14% based on the consensus view according to InvestingPro data.

According to Citizens analyst Mitch Germain, Global Net Lease reported AFFO/share ahead of consensus estimates and raised its guidance while continuing to reduce its debt burden. The company has redeemed approximately $2 billion of debt since implementing its deleveraging strategy, following $3 billion in asset sales. This improved financial position is reflected in the company’s solid current ratio of 2.79, indicating liquid assets comfortably exceed short-term obligations.

The debt reduction efforts have lowered GNL’s net debt/EBITDA ratio from mid-8x to low-7x, with further reductions planned. This improved leverage position has been recognized by credit rating agencies and has enabled the company to refinance its credit facility with better terms. InvestingPro data shows GNL maintains a "GOOD" overall financial health score of 2.74, with particularly strong marks in relative value and price momentum.

Citizens noted that GNL has repurchased 12 million shares ($92 million) to date at an AFFO yield of approximately 12%, which the firm describes as NAV accretive. The company has also right-sized its G&A expenses and made board changes that brought in respected executives.

Despite these positive developments, Citizens points out that GNL’s valuation remains "highly discounted," trading at 9x 2026 estimated AFFO/share compared to net-lease REIT peers at approximately 13x, supporting the maintained Market Outperform rating while increasing the target multiple from 9.5x to 10.5x. This discounted valuation is supported by GNL’s EV/EBITDA ratio of 8.33 and free cash flow yield of 11%, though InvestingPro’s Fair Value model suggests the stock is slightly overvalued at current levels. Investors seeking deeper insights can access the comprehensive Pro Research Report available for GNL and 1,400+ other US equities.

In other recent news, Global Net Lease Inc. reported its Q3 2025 earnings, revealing a net loss that fell short of analysts’ expectations. The company reported an earnings per share (EPS) of -$0.33, significantly missing the forecasted -$0.075. This resulted in a 340% negative surprise for analysts and investors. Revenue for the quarter was $121 million, slightly below the expected $123.51 million. Despite these financial misses, the company’s stock experienced a rise, as investors seemed to focus on strategic initiatives and future guidance. These developments indicate that while the immediate financial results were disappointing, there is attention on the company’s longer-term strategies.

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