GNL · Global Net Lease, Inc.

This acquisition represents a strategically significant, high-conviction expansion of GNL’s industrial net-lease platform, directly advancing its stated objective of reducing office exposure and accelerating earnings growth post-deleveraging. The $535 million enterprise value transaction is structured as an all-stock, leverage-neutral combination — meaning GNL will fully repay Modiv’s balance sheet debt and preferred stock using its existing Revolving Credit Facility and cash on hand, preserving balance sheet strength and financial flexibility without requiring new equity or debt issuance. The 4% immediate AFFO per share accretion is underpinned by both revenue synergies (a complementary, high-quality industrial portfolio with long-duration leases and investment-grade tenants) and $6 million in identified annual G&A cost synergies. Critically, the deal extends GNL’s weighted average lease term from 6.1 to 7.0 years and diversifies its tenant base, enhancing cash flow visibility and portfolio durability. The 17% premium to Modiv’s unaffected share price reflects GNL’s confidence in the strategic fit and execution capability, while the 25% increase in annual dividend income for Modiv shareholders — coupled with access to GNL’s larger, more liquid equity platform — provides compelling value realization. The transaction’s success hinges on obtaining Modiv stockholder approval and satisfying SEC registration and listing conditions, with no GNL stockholder vote required, streamlining execution risk. Management commentary emphasizes seamless integration, citing alignment in asset quality, lease structure, and long-term growth objectives — positioning the combined company for enhanced scale, institutional visibility, and lower cost of capital.