Global Net Lease, Inc. Q2 FY2025 earnings call

• Completed $1.8 billion sale of multi-tenant retail portfolio, reducing annual recurring G&A by ~$6.5 million and capital expenditure savings by $30 million. • Used sale proceeds to reduce leverage, including $1.1 billion paydown on revolving credit facility and disposition of $466 million secured mortgage debt. • S&P upgraded credit rating to BB+ and unsecured notes to BBB-. • Refinanced revolving credit facility to $1.8 billion, extended maturity to 2030, reduced interest rate spread by 35 basis points, increased liquidity. • Repurchased 10.2 million shares at $7.52 per share. • Actively disposing of noncore assets, with closed sales plus pipeline over $3 billion since 2024. • Office portfolio performing well with 100% rent collection; gas/convenience store exposure reduced.

After completing the $1.8 billion sale of the multi-tenant retail portfolio, the single-tenant net lease portfolio saw occupancy rise to 98% from 97% as of year-end 2024, annualized NOI margin expanded by 800 basis points, the percentage of leases with rent escalators increased to 88% from 81%, and liquidity reached $1 billion. The office portfolio had 100% rent collection, 77% investment-grade tenancy, and minimal lease rollover. The gas and convenience store sector saw $108 million of assets sold, reducing exposure to 2.1% from 5.3%, expected to go to 1.4%.

• Raised lower end of AFFO per share guidance to $0.92 to $0.96. • Reaffirmed net debt to adjusted EBITDA range of 6.5x to 7.1x.

• Potential impact of industry-specific factors like tariff announcements on auto manufacturing exposure in the portfolio. • Uncertainties related to market conditions affecting office and other asset sectors.

Q: On the office sales, where do you want this to go to and over what time frame?

A: Will be strategic, continue to lower exposure through valuable renewals and extensions, no exact percentage or timing given but will lower exposure.

Q: Last month, you sold 150,000 shares. Comment on timing and mixed messaging?

A: Needed to sell for personal reasons, has no impact on personal alignment with the company, been optimistic about the company's future.

Q: Thoughts on reducing exposure to gas and convenience, and auto manufacturing exposure?

A: Gas and convenience exposure reduced, auto manufacturing assets are critical and in U.S. market, watching but not reactionary, comfortable with holdings.

Q: Pace of dispositions going forward?

A: About $300 million in pipeline as of August 1, 2025, using proceeds for stock buyback and deleveraging.

Q: Talk about share repurchases and capital allocation?

A: Balance share repurchases with leverage, $220 million remaining on share repurchase authorization