GNL · Global Net Lease, Inc.

Global Net Lease reported Q1 2026 results with revenue of $109.3 million but a GAAP net loss of $16.0 million, while AFFO reached $43.9 million or $0.21 per share, reflecting operational efficiencies including a 25% year-over-year reduction in annualized G&A to $49 million and lower capital expenditures of $1.6 million. Management highlighted portfolio quality improvements, with occupancy rising to 97% from 95% a year ago, driven by office occupancy at 99% after disposing of a vacant property that eliminated $1 million in negative NOI drag. The tenant base remains robust, with 64% investment-grade or implied, no tenant exceeding 6% of rent, and top 10 at 29%. Balance sheet deleveraging continued, with gross debt down $1.3 billion year-over-year to $2.6 billion at a 4.1% weighted average rate, 99% fixed, though Net Debt to Adjusted EBITDA ticked up to 7.2x due to disposition timing; liquidity stands at $911 million. Strategic capital recycling is accelerating, exemplified by the all-stock Modiv Industrial acquisition, expected to add industrial assets with 15-year leases, boost industrial exposure to 50%, extend lease term to 6.7 years, and deliver 4% AFFO accretion via synergies without new capital. Pending deals include a $13 million office sale at 7.2% cap and $14 million industrial buy at 8.2% cap. Share repurchases of 19.7 million shares at $8.05 average underscore accretive capital allocation. Full-year AFFO guidance of $0.80-$0.84 per share is reaffirmed, excluding Modiv impact, signaling confidence in execution amid a focus on industrial/retail shifts and AI-enhanced asset management.