Earnings call transcript: Global Net Lease Q2 2025 misses forecasts, stock rises

Global Net Lease Inc. (GNL) reported its Q2 2025 earnings, revealing a larger-than-expected loss. The company posted an EPS of -$0.19, missing the forecast of -$0.13. Revenue also fell short, coming in at $124.9 million compared to the expected $137.77 million. Despite these misses, GNL’s stock rose by 8.12% to $6.91 in premarket trading, reflecting positive investor sentiment on strategic shifts and operational improvements. According to InvestingPro data, GNL maintains a healthy current ratio of 1.28, with liquid assets exceeding short-term obligations, and offers an attractive dividend yield of 11.09%.

Key Takeaways

• GNL reported a larger-than-expected EPS loss of -$0.19.
• Revenue fell short of forecasts by $12.87 million.
• Stock price increased by 8.12% in premarket trading.
• Raised lower end of AFFO guidance to $0.92-$0.96 per share.
• Significant debt reduction and improved financial metrics.

Company Performance

Global Net Lease’s Q2 2025 results showed a net loss attributable to common stockholders of $35.1 million. The company has made strides in deleveraging, reducing its net debt to adjusted EBITDA from 8.1x to 6.6x. This financial discipline aligns with its strategic focus on transforming into a pure-play single tenant net lease REIT, having completed a $1.8 billion sale of its multi-tenant retail portfolio. InvestingPro analysis shows the company trading at an EV/EBITDA multiple of 7.81x, with management actively buying back shares. For deeper insights into GNL’s valuation and strategic initiatives, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Financial Highlights

• Revenue: $124.9 million, down from forecasted $137.77 million.
• EPS: -$0.19, compared to forecast of -$0.13.
• AFFO: $53.1 million ($0.24 per share).
• Gross outstanding debt reduced by $2 billion from the end of 2024.
• Liquidity: Approximately $1 billion.

Earnings vs. Forecast

GNL’s EPS of -$0.19 missed the forecast by 46.15%, while revenue was 9.33% below expectations. This marks a significant miss compared to previous quarters, where the company had generally aligned closer to forecasts.

Market Reaction

Despite the earnings miss, GNL’s stock experienced an 8.12% rise to $6.91 in premarket trading. This increase may be attributed to investor confidence in the company’s strategic direction and operational improvements, such as increased portfolio occupancy and reduced debt levels. InvestingPro data indicates the stock is currently trading near its Fair Value, with a robust free cash flow yield of 13% and strong dividend payments to shareholders. Additional ProTips and detailed financial metrics are available to InvestingPro subscribers.

Outlook & Guidance

GNL has raised the lower end of its AFFO per share guidance to $0.92-$0.96, reflecting confidence in its financial trajectory. The company has no remaining debt maturities for 2025, with a focus on further deleveraging and balance sheet strengthening.

Executive Commentary

CEO Michael Weil emphasized the company’s ongoing efforts to strengthen its business: "We’re by no means finished taking the steps needed, small and large, to strengthen our overall business and maximize the value of your investment." He also noted, "We have de-risked this company," highlighting the strategic initiatives undertaken to reduce exposure to high-risk sectors.

Risks and Challenges

• Continued market volatility could impact real estate valuations.
• Interest rate fluctuations may affect debt servicing costs.
• Economic downturns in key geographies could affect tenant stability.
• Execution risks in transforming to a single tenant net lease REIT.
• Potential regulatory changes affecting real estate investment trusts.

Q&A

During the earnings call, analysts inquired about GNL’s strategic approach to its office portfolio, which currently constitutes 27% of its holdings. The company confirmed its ongoing disposition strategy and commitment to reducing leverage, while also opportunistically buying back shares. The performance of key tenants, such as McLaren, was highlighted as a positive aspect of GNL’s portfolio stability.

Full transcript - Global Net Lease Inc (GNL) Q2 2025:

Conference Operator: Good day, and welcome to Global Net Lease Inc. Second quarter twenty twenty five earnings conference call. All participants will be in the listen only mode. After today’s presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on a touch tone phone.

To withdraw your questions, please press star then 2. Please note, this event is being recorded. I would now like to turn the conference over to Jordan Schonfeld, assistant vice president at Global Net Lease. Please go ahead.

Jordan Schonfeld, Assistant Vice President, Global Net Lease Inc.: Thank you. Good morning, everyone, and thank you for joining us for GNL’s second quarter twenty twenty five earnings call. Joining me today on the call is Michael Weil, GNL’s Chief Executive Officer and Chris Masterson, GNL’s Chief Financial Officer. The following information contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Please review the forward looking and cautionary statement section at the end of our second quarter twenty twenty five earnings release for various factors that could cause actual results to differ materially from forward looking statements made during our call today.

As stated in our SEC filings, GNL disclaims any intent or obligation to update or revise these forward looking statements except as required by law. Also, during today’s call, we will discuss certain non GAAP financial measures which we believe can be useful in evaluating the company’s financial performance. Descriptions of those non GAAP financial measures that we use, such as AFFO and adjusted EBITDA, and reconciliations of these measures to our results as reported in accordance with GAAP are detailed in our earnings release and supplemental materials. I’ll now turn the call over to our Chief Executive Officer, Michael Weil. Mike?

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: Thanks, Jordan. Good morning, and thank you all for joining us today. As you know, we’ve been steadfast in our commitment to drive durable, sustainable, long term growth and value creation by optimizing our portfolio, reducing leverage and lowering our cost of capital. In the 2025, we once again delivered tangible progress towards these commitments, demonstrating the strength of our strategy and the discipline of our execution. During the 2025, we completed the $1,800,000,000 sale of our multi tenant retail portfolio to RCG Ventures, further positioning us as a pure play single tenant net lease company with streamlined operations and a higher quality portfolio.

The sale of these assets is expected to reduce annual recurring G and A by approximately $6,500,000 and generate $30,000,000 in annual capital expenditure savings. The sale also eliminates the added complexity of managing multi tenant retail assets. In addition, it delivered measurable improvements across key metrics, increasing occupancy to 98% from 97% as of year end 2024, expanding annualized NOI margin by 800 basis points, raising the percentage of leases with rent escalators to 88% from 81% and enhancing liquidity to $1,000,000,000 from $492,000,000 reflecting the terms of the recently refinanced revolving credit facility. In line with our long term debt reduction strategy, we used the net proceeds from the sale to materially reduce leverage, including a $1,100,000,000 pay down on GNL’s revolving credit facility, in addition to the disposition of $466,000,000 in secured mortgage debt that was assumed by RCG Ventures. The sale of our multi tenant retail portfolio has already benefited GNL in multiple ways.

Most notably, S and P Global upgraded our corporate credit rating to BB plus from BB and raised our issuer level rating on our unsecured notes to investment grade BBB- from BB plus These upgrades reflect the meaningful progress we’ve made in reducing leverage, enhancing liquidity and strengthening our overall credit profile. The upgrades have also had an immediate impact on our cost of capital, lowering borrowing costs and expanding opportunities to access the unsecured bond market. Building on that momentum, subsequent to the second quarter twenty twenty five, we refinanced our revolving credit facility, securing improved pricing, enhanced liquidity, an extension of our weighted average debt maturity to three point seven years from two point nine years as of 06/30/2025, and increased balance sheet flexibility. The facility was met with strong demand, including heightened interest from both existing and new institutional lenders, relationships we look forward to growing over the long term. Since the 2024, we’ve meaningfully lowered GNL’s cost of borrowing on our revolving credit facility by 70 basis points, a direct result of the strategy we put in place to lower our cost of capital through disciplined deleveraging and favorable refinancing activity.

We continue to make meaningful progress on a robust pipeline of non core asset dispositions beyond the multi tenant retail portfolio sale. In particular, we continue to strategically and opportunistically reduce our exposure to office assets that while high quality and mission critical, we believe have not been fully valued by the market. It’s important to note that our office portfolio continues to perform well with 100% rent collection from all tenants and the highest percentage of investment grade tenancy across our portfolio at 77%. Lease rollover remains minimal with expirations representing 2.5% or less of total portfolio square footage annually through 2029. We remain focused on active tenant retention, particularly within the office portfolio.

Since the start of 2024, we’ve addressed 14 near term expirations. Of these, nine were renewed, three were sold and one is in the final stages of renewal negotiations, and the last one is being finalized for sale. In total, these office renewals since the 2024 were completed with an average lease renewal spread of approximately 7%. In addition, as discussed on last quarter’s earnings call, we began proactively scaling back our exposure to the gas and convenience store sector, an industry facing structural shifts in consumer behavior, fuel demand, evolving transportation trends and inconsistent operations. As of 08/01/2025, we’ve sold approximately $108,000,000 of assets in this category, reducing our portfolio exposure to 2.1% from 5.3%.

Taking into account our disposition pipeline, we expect our exposure to this sector will be reduced to 1.4%. These actions reflect our disciplined portfolio management strategy and our continued focus on concentrating on higher growth sectors that are more closely aligned with our long term vision. They also contribute to our deleveraging efforts and help reduce net debt to adjusted EBITDA. Year to date, our closed sales plus active disposition pipeline totals $2,200,000,000 And since launching our disposition initiative in 2024, total closed sales plus our disposition pipeline has exceeded $3,000,000,000 Importantly, we continue to take deliberate steps to further strengthen our capital structure and mitigate risk. During the 2025, we fully paid off the remaining $459,000,000 of secured debt that was maturing in 2025 and warehoused the amount on our revolving credit facility.

This facility now offers enhanced pricing and significantly greater availability as well as flexibility following the substantial pay down and refinancing completed after the multi tenant retail portfolio sale. Looking ahead, we have no remaining 2025 debt maturities and $95,000,000 of debt tied to retail assets expiring in 2026. Alongside our balance sheet initiatives, we’ve continued to repurchase our stock. Through 08/01/2025, we’ve repurchased 10,200,000 shares at a weighted average price of $7.52 totaling $77,000,000 capitalizing on the compelling opportunity to buy back shares at an AFFO yield of approximately 12%. We’ve remained disciplined in balancing share repurchases with leverage reduction.

However, the lack of improvement in our share price despite meaningful progress in improving our balance sheet and extending our debt maturities has been, to say the least, disappointing and leads us to continue to evaluate multiple corporate initiatives. Turning to our portfolio. At the end of the 2025, we owned over 900 properties, spanning over 44,000,000 rentable square feet. The portfolio’s occupancy grew to 98% with a weighted average remaining lease term of six point two years. Geographically, 70% of our straight line rent is earned in North America and 30 in Europe.

Unlike many net lease peers, we believe our exposure to Europe differentiates us by providing diversification across economic cycles and the ability to capitalize on unique market opportunities not typically available in The U. S. The portfolio features a stable tenant base and a high quality of earnings with an industry leading 60% of tenants receiving an investment grade or implied investment grade rating. It has an annual contractual rental increase of 1.5%, which excludes the impact of 22.6% of the portfolio with CPI linked leases that have historically experienced significantly higher rental increases. On the leasing front, we achieved positive spreads encompassing over 200,000 square feet with attractive renewal spreads that were 6% higher than expiring rents.

New leases that were completed in the 2025 have a weighted average lease term of ten years, while renewals that were completed during this period have a weighted average lease term of five point six years. Our continued efforts to limit exposure to high risk geography, asset types, tenants and industries is a testament to our intentional diversification strategy and credit underwriting. No single tenant accounts for more than 5% of total straight line rent, and our top 10 tenants collectively contribute only 28% of total straight line rent. We carefully monitor all tenants in our portfolio and their business operations on a regular basis. I encourage everyone to look at the details of each segment of our portfolio, which can be found in our Q2 twenty twenty five investor presentation on our website.

With that, I’ll turn the call over to Chris to walk through the financial results and balance sheet matters in more detail. Chris?

Chris Masterson, Chief Financial Officer, Global Net Lease Inc.: Thanks, Mike. Please note that, as always, a reconciliation of GAAP net income to non GAAP measures can be found in our earnings release, which is posted on our website. We also want to emphasize that second quarter twenty twenty five earnings and leverage metrics reflect the full benefit of NOI from the encumbered assets sold as part of the multi tenant retail portfolio sale, consistent with what we anticipated when establishing full year guidance. For the 2025, we recorded revenue of $124,900,000 and a net loss attributable to common stockholders of 35,100,000.0 AFFO was $53,100,000 or $0.24 per share. Looking at our balance sheet, the gross outstanding debt balance was $3,100,000,000 at the end of the 2025, a reduction of $2,000,000,000 from the end of the 2024.

Our debt is comprised of $1,000,000,000 in senior notes, dollars $741,000,000 on the multi currency revolving credit facility, and $1,400,000,000 of outstanding gross mortgage debt. As of the end of the 2025, 85% of our debt is fixed, reflecting debt tied to fixed rates or debt that is swapped to fixed rates. Our weighted average interest rate stood at 4.3%, down from 4.7 in the 2024. And our interest coverage ratio was 2.7 times. At the end of the 2025, our net debt to adjusted EBITDA ratio was 6.6 times based on net debt of $3,000,000,000 significantly down from 8.1 times at the end of the 2024.

As of 06/30/2025, we had liquidity of approximately $1,000,000,000 and $1,100,000,000 of capacity on our revolving credit facility, reflecting the terms of the recently refinanced revolving credit facility. Additionally, we had approximately $221,000,000 shares of common stock outstanding and approximately $223,000,000 shares outstanding on a weighted average basis for the 2025. As of 08/01/2025, we have repurchased 10,200,000.0 shares at a weighted average price of $7.52 per share under our share repurchase program. As Mike mentioned, subsequent to quarter end, on 08/05/2025, we refinanced our revolving credit facility to $1,800,000,000 and extended the maturity date from October 2026 into 02/1930, inclusive of two six month extension options. The refinanced revolving credit facility provides enhanced benefits, most notably an immediate 35 basis point reduction in interest rate spread due to improved pricing, while also increasing liquidity and extending our weighted average debt maturity to three point seven years from two point nine years.

Turning to our outlook for the remainder of 2025, we are confident in our performance and are raising the lower end of our AFFO per share guidance to a new range of $0.92 to $0.96 We also reaffirm our stated net debt to adjusted EBITDA range of 6.5 times to 7.1 times. I’ll now turn the call back to Mike for some closing remarks.

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: Thanks, Chris. Over the past year, we’ve made meaningful progress on our strategic priorities to streamline operations, elevate portfolio quality, reduce leverage and enhance balance sheet flexibility. We’ve sold approximately $1,800,000,000 of multi tenant retail assets, transforming GNL into a pure play single tenant net lease REIT and drove total asset sales to over $3,000,000,000 We also continued executing our share repurchase program, capitalizing on the opportunity to buy back shares at an AFFO yield of approximately 12%. Since the 2024, we’ve reduced leverage by 1.5 turns, contributing to a credit rating upgrade from S and P and reflecting the tangible progress we’ve made in reducing our debt. This momentum supported the $1,800,000,000 refinancing of our revolving credit facility, which immediately lowers our interest rate spread by 35 basis points, extended our weighted average debt maturity by nearly a year and increased our liquidity to over $1,000,000,000 Quarter over quarter, beginning at the start of 2024, we’ve consistently executed major strategic initiatives that we believe should help narrow the valuation gap between GNL and our net lease peers.

We’re proud of the significant progress GNL has made. And as we move forward, everything is on the table. We’re by no means finished taking the steps needed, small and large, to strengthen our overall business and maximize the value of your investment. We’re available to answer any questions you may have after the call. Operator, please open the line for questions.

Conference Operator: Thank you. We will now begin the question and answer session. If you are using a speakerphone, please pick up your handset before pressing the case. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. The first question comes from the line of John Kim with BMO Capital Markets.

Please go ahead.

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: Good morning, John.

John Kim, Analyst, BMO Capital Markets: Thanks. Hey. Good morning. On the office sales, right now, it’s 27% of your portfolio. Where do you want this to go to and over what time frame?

And, how do you think about the dilutionary impact that that may bring?

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: So we’re gonna be very strategic in how we approach the office portfolio. As we said in the comments, it’s strong performer contributing to the overall earnings of the company. We have been very active with renewals, which positions the, properties for a more valuable potential disposition. So I’m not gonna give you an answer of, the exact percentage and timing, but it’s going to be something that we will continue to bring office properties to market at the completion of what we think are valuable renewals and extensions, and we’ll just continue to lower that percentage. But I’d just also like to point out, as we’ve talked before, this sector of our portfolio has the highest percentage of investment grade or implied investment grade tenants.

So it kind of goes opposite of some of the the general feelings about office in The United States. But we’re gonna harvest value here and then look to to use those proceeds to further delever. And when the time is right, we will start looking at acquisitions in the retail and industrial and distribution arena. So that’s about as specific as I’d like to be right now.

John Kim, Analyst, BMO Capital Markets: Okay. And so it sounds like you’re going to have further dispositions on the positive side in terms of earnings growth. You have G and A savings, improved cost of debt, you’re buying back shares. Looking at a crystal ball, when do you think earnings are going to trough and we could start to project earnings growth going forward?

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: Well, now, having just completed the second quarter, we were able to raise the lower end of our guidance to $0.92 to $0.96 and that’s where we see the year playing out from an earnings standpoint. As we get later into the year, of course, we’ll provide guidance for 2026. And as of yet, we have not done that. Right now, we’re focused on completing the initiatives that are underway, which include disposition, some further lease up, and most importantly, renewals. So we’ve got, just organic opportunities in the portfolio that will, really keep us in that stated guidance range of $0.92 to $0.96 per share.

John Kim, Analyst, BMO Capital Markets: Okay. And then I have to ask this because it seems to have impacted your share price. But Michael, last month you sold 150,000 shares, which I think is about 20% of your holdings in the company. Can you just comment on the timing of that sale and the mixed messaging it may have just given you’re selling that, in light of GNL buying back shares?

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: Yeah. I think you can look at my history of never having sold shares before and, you know, there come points in in a person’s life where they have some obligation. I needed to sell a bit of stock to take care of something that I don’t want to stammer or say anything. It just was necessary, and I don’t think it’s anything to read into. And I’ve never sold stock before, and I am very optimistic about where the company will go and the reason we’re working as hard as we are to drive it.

So, you know, don’t forget, you know, the the company does have a a published, long term incentive plan and an annual incentive plan, that does have a a significant amount of stock. So as far as my personal alignment, it’s unchanged. And I’m as on board as you can be, and that’s all I care to say.

John Kim, Analyst, BMO Capital Markets: Okay. Thank you.

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: Thanks.

Conference Operator: Thank you. Next question comes from the line of Upl Rana with KeyBanc Capital Markets. Please go ahead.

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: Good morning, Upland. Are you?

Upl Rana, Analyst, KeyBanc Capital Markets: Morning. Appreciate your comments on the company reducing exposure to gas and convenience. But the top industry within the portfolio is auto manufacturing at 10% of straight line rent. Given all the tariff announcements, I want to get your understanding how you’re looking at the industry within your portfolio and if you plan to reduce exposure there or not?

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: The assets that we have are critical assets. They are in primarily, the Detroit market, and they are, US manufacturers doing, final assembly So it’s something that we are watching, but I don’t like to be, reactionary. And I believe that these primarily, US manufactured products, will continue to, do fine. You know, all industries have ups and downs, but I don’t see this as anything too problematic.

So we’re very comfortable with what we own.

Upl Rana, Analyst, KeyBanc Capital Markets: Okay. Alright. Well, that was helpful. And then, you know, on the office assets Oh, hey.

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: Oop, if I can just go back also because I was thinking about just The US portfolio, and shame on me, because the second largest tenant in the portfolio is McLaren. So that does make up a significant amount of that 10% that you referenced. And as you’ve probably seen in the news, McLaren is financially as strong as it’s been in an incredibly long time, decades, with the investment from The UAE. They paid off all of their outstanding debt. Their race team, which generates a lot of revenue and positive marketing, is doing phenomenally well.

And the, retail sales are also very solid. So, the The US market for McLaren, is not a huge market. You know, they are a global brand. They they are a big Europe and UK as well as The Middle East. So, I think that they will also continue to perform very well and we’re very comfortable to see them as well capitalized as they are.

Upl Rana, Analyst, KeyBanc Capital Markets: Okay, great. Thanks for the added color. Just my second question on office assets. It seems like they’re starting to be a little more interest from private capital there. Have you seen any increasing interest on your office assets and where you may want to begin transacting at?

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: Yes. And as I said in the earlier question, we’ve got some very interesting renewals underway as well. So I think that, you know, all markets, ebb and flow. And two to four quarters ago, I would have to guess that office was probably as low as it could be. And, we are starting to see the the opportunity.

Good real estate always has value. And with single tenant office, a big part of the definition of good real estate is the tenant and the term. So, yeah, I I think we can drive value here, and and that is the goal. And, you know, I we don’t as as you’ve seen from our actions over the last year and a half, we don’t wanna be an outlier. We were a bit of an outlier with the shopping center portfolio, so we disposed of it.

The market is letting us know how they feel And I think continuing to lower exposure in a strategic way is valuable, and we will continue to do that. But yeah, the market is getting stronger. Our tenants are back in office, and their real estate is a valuable part of their operation.

Upl Rana, Analyst, KeyBanc Capital Markets: Okay. Got it. And then last one for me. Obviously, you got the multi tenant portfolio I guess I’m wondering what’s the pace of dispositions going forward? How much is sort of left to do?

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: I’m looking at Ori right now because he I would say that it’s about $300,000,000 in the pipeline right now. And I’ll confirm that in just a minute if that’s not accurate. But again, we’re now looking at things very strategically. I think the potential disposition of non core assets at good cap rates is a great funding source for us to continue our stock buyback, which is very valuable to the company. You know, you heard us talk about the the 12% AFFO on on shares bought back, and I think we’re at about a little under $80,000,000 so far that we have bought back.

So, you know, our $3,000,000,000 of sales since we announced the disposition initiative has been at a 7.6, 7.7 cap rate. So, using those proceeds, you know, even if we did something in the fifty-fifty range of 50% debt pay down, 50% stock buyback on future dispositions. That’s a pretty leverage neutral or even deleveraging way to really take advantage of this opportunity to buy back stock, when we see it at this price level. And frankly, I hope that we don’t see the stock buyback as such a great value over the near term. But while it is, we intend to take advantage of it.

And just to add to that, Nicole, the existing pipeline as of August 1 for 2025 is about $200,000,000 Okay,

Upl Rana, Analyst, KeyBanc Capital Markets: great. Thank you so much.

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: Thanks, Uphol.

Conference Operator: Thank you. Next question comes from the line of Michael Gorman with BTIG. Please go ahead.

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: Hey, Michael.

Michael Gorman, Analyst, BTIG: Hey, good morning, Mike. Maybe just following up on some of your comments there. Can you just talk a little bit about you’ve had a lot of success moving down the debt to EBITDA ladder there. And just how you think about the share repurchases and capital allocation. I know you talked about continuing to do it in kind of a leverage responsible way.

But does that math shift at all as you get lower on the debt to EBITDA range? And if you get lower on the leverage range, doesn’t necessarily have an impact on the valuation? Can you just kind of talk about how you’re thinking about that strategically?

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: I mean, in simple terms, and as you know, Michael, every dollar that we buy back is a dollar less that we can delever. We are, I think, at the point now where, as I just mentioned, it comes to play in the balance is something of importance. If we continue to use dispositions to fund, let me say this, if we continue to use future dispositions to fund stock buyback, we can achieve both of our goals. The investment grade rating is still a top goal of ours. But at the same time, we want to see value in the stock price.

And, you know, we’re gonna balance both of them, very smartly, very prudently. I’m not by any means saying one in lieu of the other. I’m saying approach it responsibly. And like I see asset sales, if we can continue to sell in this, call it, 7.5 cap rate range, or lower frankly for some assets, that’s an incredibly valuable tool, both to delever and buy back stock.

Michael Gorman, Analyst, BTIG: Got it. That’s helpful. And then recognizing that you just went through the large multi tenant portfolio sales, so I don’t want to make it sound like I’m asking what’s next. But you mentioned future initiatives. How do we think about that in cadence?

Like are we talking about large scale on the order of magnitude of the multi tenant sale, like whether it’s something with the European portfolio, or is this more incremental initiatives from here going forward?

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: Yeah. Sometimes the most exciting thing is mystery. And I think that we, as a management team, have really shown dedication to doing important things in a timely manner, to reposition the company, to drive value in the company. And what we’ve done in the last six quarters, I’m extremely proud of the team. It took a lot of effort, focus, call it what you want, or just call it doing our job, because that’s how I view it.

I intentionally wanted to be vague in my comments, but I also intentionally wanted to say, all things are on the table. We will evaluate different ways to close what I think of as gap to value. This company should be trading in line with our peers. We have de risked this company. Nobody’s asked, so I’ll bring it up, about how we think about the credit facility.

And the fact that we don’t have any debt maturities, any material debt maturities until 2027 now. So we may not like where we are today on a equity basis, but what really can cause massive failure for companies is when they don’t manage the debt side of their balance sheet, and we have. We have pushed out our debt maturity, to almost four years. We have opportunity now to let the global or US debt markets catch up and see what I think will be some rate cuts that are going to be helpful to us. At the same time, we’ve lowered our leverage, and we appreciate that S and P was able re rate us.

And we’ve had great conversations with Fitch. And they’re doing their work, we respect that too. But as you know, there’ll be incredible value for this company. When we do achieve those investment grade goals. And in the meantime, we’re positioned really well to drive value from our real estate and focus on the equity side because the debt side is very safe, very manageable, and really frees us up to do some important work.

Michael Gorman, Analyst, BTIG: That’s helpful. Thank you. Last one, and I apologize if I missed it, just a quick one. How much is remaining on the share repurchase authorization?

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: About $220,000,000

Michael Gorman, Analyst, BTIG: Okay. Perfect. Thank you very much.

Chris Masterson, Chief Financial Officer, Global Net Lease Inc.: Thanks, Michael.

Conference Operator: Thank you. Next question comes from the line of Craig Kucera, Lucid Capital Markets. Please go ahead.

Chris Masterson, Chief Financial Officer, Global Net Lease Inc.: Hi, Craig.

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: Yeah. Hey, guys. I actually didn’t dial in with any questions. I apologize. I was

Jordan Schonfeld, Assistant Vice President, Global Net Lease Inc.: on another call. So no questions here at the moment.

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: Okay. Alright. Thanks. Talk to you later.

Conference Operator: Thank you. This concludes our question and answer session. I would like to turn the conference back over to Michael Wilde for closing remarks.

Michael Weil, Chief Executive Officer, Global Net Lease Inc.: Great. Well, thank you. As always, I want to thank everybody for making time in their schedule to join us. Chris, Ori, and I look forward to the opportunity to answer any questions that you have, any follow-up, etcetera. We are, as I said, proud of the work that we’re done, but by no means happy yet.

We’ve got work to do. We’re going to get it done. And directionally, there’s a lot of upside in this company. And and we’ve positioned it, I think, in a way that we can start really taking advantage of that. So thanks, everybody.

Conference Operator: Thank you. The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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