Global Net Lease, Inc. Q1 FY2026 earnings call

• Planned strategic acquisition of Motive Industrial announced. This transaction aligns with strategy to recycle capital into high-quality industrial and retail assets, expected to be immediately accretive, leverage neutral, with long-duration leases and creditworthy tenants. - Actively engaged in other transaction activity: under contract to sell an office building leased to GSA, under contract to acquire a single tenant industrial asset. - Portfolio performance: 97% occupied, office occupancy increased, 64% of tenants investment grade or implied investment grade. Delivered strong leasing results, executed leases on over 141,000 square feet, renewal spreads of ~5.1% of expiring rents. Enhanced data and technology capabilities using AI for decision-making. - Reduced annualized G&A expense by 25% year-over-year to $49 million, capital expenditures declined to $1.6 million from $9.8 million in Q1 2025. - Launched share repurchase program, repurchased 19.7 million shares for $158.2 million since 2025 through May 1, 2026.

At the end of Q1 2026, GNL owned 809 properties totaling 40 million rentable square feet, 97% occupied with a weighted average remaining lease term of 5.9 years. Office occupancy increased to 99% from 95% in Q1 2025. 64% of tenants carry investment grade or implied investment grade ratings. Revenue was $109.3 million, net loss attributable to common stockholders was $16 million, IFFO was $43.9 million or $0.21 per share. AFFO per share guidance for 2026 is $0.80 to $0.84. Net debt to adjusted EBITDA ratio at end of Q1 2026 was 7.2 times, but remains confident to stay within 6.5 - 6.9 times range. Motive transaction expected to be immediately accretive with ~4% accretion to AFFO per share, extend weighted average lease term from 5.9 to 6.7 years, increase industrial exposure from 47% to 50%, reduce office concentration from 26% to 24%.

• Reaffirms full-year AFFO per share guidance of $0.80 to $0.84. - Reaffirms net debt to adjusted EBITDA range of 6.5 times to 6.9 times. - Anticipated benefit from motive transaction to be addressed and updated upon closing, but transaction is structured to be leverage neutral with 2026 net debt to adjusted EBITDA guidance range.

Q: Regarding the Motive portfolio, are there potential candidates for sale across that portfolio?

A: Yes, Motive has a few high-quality assets outside industrial, will dispose of them at right time, one is larger.

Q: Talk about acquisitions or dispositions characteristics?

A: Intentionally looking at growth, adding Motive portfolio is big statement, continue to execute opportunistically, sold a bank branch at 6.2% cap rate, completed sale of a West Coast office property, removed about a million dollars of NOI carry.

Q: What about demand for office across Europe?

A: Office market overseas has strong redevelopment into mixed-use residential, active in Europe, will provide updates on certain assets.

Q: Walk through cap rate on Motive transaction relative to blended cost of capital and investment spreads?

A: Can't talk cap rate specifics now, but there are opportunities from Motive's pipeline, lease renewal, dispositions, and G&A savings can be squeezed more.

Q: Strategy on selecting properties/portfolios to acquire?

A: Focus on industrial side, some retail acquisition potential, look at capital use, earnings growth, leverage.

Q: MDV merger signal for strategy?

A: Yes, signals more return to growth beyond recycling out of office assets, Motive portfolio extends weighted average lease term, brings annual escalator, focus on G&A reduction.

Q: Is accretive capital redeployment out of office repeatable?

A: Don't know if can consistently hit 100 basis point spread, but goal is to sell office assets at fair value, continue to reduce office exposure.

Q: Motive portfolio tenants, open new relationships?

A: Always enhances relationships, some already have, some to develop further.

Q: Stock buyback, should we consider consistent portion?

A: Buyback is a tool in toolbox, will continue to evaluate, not given forward statements on level of use.

Q: Lease expirations during rest of 2026?

A: About 4.4% lease rollover in 2026, no material rollouts, continue to engage with tenants, expect to stay in high occupancy realm.