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Citizens JMP analyst firm reiterated its Market Outperform rating and $9.00 price target on Global Net Lease (NYSE: NYSE:GNL) Thursday. The firm cited impressive progress on the company’s de-leveraging strategy, which has been driven by property dispositions. According to InvestingPro data, GNL maintains a healthy current ratio of 1.28, indicating strong liquidity position with assets exceeding short-term obligations.
JMP highlighted that another portion of the multi-tenant retail portfolio sale has closed, while noting that recent governance enhancements remain overlooked by the market. The firm’s $9 price target is based on 9.5 times the expected 2025 AFFO per share. With a current market capitalization of $1.71 billion and an impressive gross profit margin of 81.57%, GNL shows strong operational efficiency. For deeper insights into GNL’s financial health and valuation metrics, check out the comprehensive analysis available on InvestingPro.
The analyst firm maintains its positive view on GNL shares as management addresses key issues that previously affected the company, beginning with management internalization in the second half of 2023, followed by a focus on reducing debt. This strategy has resulted in leverage, measured by net debt to EBITDA, decreasing by almost two turns from peak levels. The company currently trades at an EV/EBITDA multiple of 8.36x and offers an attractive dividend yield of 9.9%.
GNL’s portfolio is expected to eventually derive all its rents from single-tenant assets with diversified presence across asset classes and geography. The firm expects improved metrics following completion of the remaining disposition pipeline.
From a valuation perspective, JMP noted that GNL shares currently trade at 8 times current year earnings, representing a steep discount to net-lease REITs trading at mid-13 times earnings. The firm views this discount as "highly penalizing" and sees potential for multiple expansion as management continues executing its strategic plan.
In other recent news, Global Net Lease reported its first-quarter 2025 financial results, showing a significant earnings miss with an actual earnings per share of -$0.87, well below the forecasted -$0.085. Revenue for the quarter was $132.4 million, falling short of the $190.1 million forecast. Despite these setbacks, the company successfully reduced its gross outstanding debt by $1.3 billion compared to the same period last year. Global Net Lease also completed a major property sale, generating $1.1 billion in gross proceeds, which contributed to its ongoing de-leveraging strategy. JMP analysts maintained their Market Outperform rating on Global Net Lease, citing the company’s strengthened balance sheet and improved operating metrics. The analysts noted that the company’s valuation remains discounted compared to its peers, suggesting potential for future growth. Additionally, Global Net Lease appointed Robert Kauffman as the new Non-Executive Chairperson of its Board of Directors, a move expected to support the company’s strategic initiatives. The company reaffirmed its 2025 AFFO guidance, projecting earnings of $0.90-$0.96 per share.
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