GNL · Global Net Lease, Inc.

Global Net Lease, Inc. (GNL) reported first quarter 2026 results that reflect the ongoing strategic repositioning of its portfolio. Revenue declined to $109.3 million from $132.4 million in the prior year quarter, primarily due to asset dispositions including the $1.8 billion multi-tenant retail portfolio sale in 2025. Net loss attributable to common stockholders improved significantly to $16.0 million from a loss of $200.3 million in Q1 2025, which included impairment charges. On a non-GAAP basis, AFFO per share was $0.21, down from $0.29 in the prior year, as the benefits of deleveraging and cost savings were offset by a smaller asset base. The company reaffirmed its full-year 2026 AFFO per share guidance of $0.80 to $0.84 and Net Debt to Adjusted EBITDA of 6.5x to 6.9x, excluding the anticipated Modiv acquisition.

Management highlighted continued progress in reducing office exposure, with a closed plus disposition pipeline of $132 million, 68% of which is office sales. The company also reduced net debt by $1.3 billion year-over-year and increased liquidity to $911 million. Annualized G&A expense decreased 25% year-over-year to $49 million, reflecting operational efficiencies.

The most significant event was the announcement of a definitive merger agreement to acquire Modiv Industrial in an all-stock transaction valued at approximately $535 million. The deal is expected to be immediately 4% accretive to AFFO per share and leverage-neutral within GNL's target range. The acquisition will expand GNL's industrial exposure with a high-quality portfolio featuring a 15.0-year weighted average lease term and 2.4% average annual rent escalations. The transaction is expected to close in the third quarter of 2026.

CEO Michael Weil emphasized that the Modiv transaction reflects a disciplined approach to growth and will accelerate the transition to earnings growth in 2026. The company also continued its share repurchase program, buying back 19.7 million shares at an average price of $8.05.