GNL

Strategic Acquisition Progress

• The proposed acquisition of Motive is awaiting shareholder voting, with closing expected in mid-August 2026 following the August 10 special shareholder meeting.
• The acquisition is expected to be ~4% accretive to AFFO per share, leverage-neutral, extend portfolio weighted average remaining lease term (WALT) to 6.6 years, and improve portfolio resilience via Motive's 15-year WALT, 2.4% annual contractual rent escalations, and diversified credit-worthy tenant base.

Capital Recycling and Portfolio Repositioning

• Through July 31, 2026, closed and pending dispositions total $263 million, with $145 million in closed dispositions at a weighted average 7.6% cash cap rate on occupied assets; 78% of disposition volume is office assets.
• Most office dispositions are structured to close upon lease expiration, allowing GNL to collect full remaining contractual rent while avoiding vacancy costs, capital expenditures, and occupancy risk; several additional office assets are in advanced negotiations for this structure.
• Completed non-core dispositions include a $13 million GSA-leased office property and a $48 million GE Aviation-leased office property, both at a 7.2% cash cap rate.
• GNL acquired a 100,000 square foot single-tenant industrial property in Mississippi leased to FedEx for $14 million at an 8.2% going-in cash cap rate, highlighting the value creation spread between disposition and acquisition cap rates.

Portfolio and Leasing Performance

• As of Q2 end 2026, GNL owns 798 properties totaling 40 million rentable square feet, with overall portfolio occupancy steady at 97% and WALT of 5.7 years.
• Office occupancy increased to 99% from 95% in Q2 2025, driven by disposition of a vacant asset that eliminated $1 million in annualized negative net operating income (NOI) drag; office achieves 100% rent collection and has the highest share of investment-grade tenants.
• 63% of all tenants hold an investment-grade or implied investment-grade rating (up from 60% in Q2 2025); average annual contractual rental increases are 1.4% excluding CPI-linked leases, which have historically delivered higher increases.
• Q2 2026 leasing achieved 5.6% average renewal spreads above expiring rents across 357,000 square feet, with a WALT of 8.4 years for new renewals.
• The portfolio is well-diversified: no single tenant accounts for more than 6% of total straight-line rent, and the top 10 tenants collectively contribute 29% of total straight-line rent, 80% of which are investment-grade.

Balance Sheet and Capital Management

• Gross debt was $2.5 billion at Q2 end 2026, a $621 million reduction from Q2 2025; 92% of debt is fixed-rate or swapped to fixed, with a weighted average interest rate of 4.1% (down from 4.3% year-over-year) and an interest coverage ratio of 3.2x.
• Net debt to adjusted EBITDA improved to 6.6x at Q2 end 2026, down from 7.2x at Q1 end 2026.
• Recurring capital expenditures declined sharply to $3.4 million in H1 2026 from $19.6 million in H1 2025, strengthening cash flow.
• As of Q2 end 2026, total liquidity is ~$919 million with $1.3 billion in revolving credit facility capacity.
• Through July 31 2026, GNL has repurchased 20.9 million shares under its repurchase program for $169.7 million at a weighted average price of $8.11, a discount to current share prices; activity was limited in Q2 due to the pending Motive transaction, but the program remains a valuable capital allocation tool.

• Full-year 2026 AFFO per share guidance was raised from the prior range of 80-84 cents to a new range of 82-85 cents. The upward revision reflects the expected mid-August closing of the Motive acquisition, and only includes ~1.5 quarters of contribution from Motive in 2026.
• Full-year 2026 gross transaction volume guidance was increased from the prior range of $250-$350 million to a new range of $700-$800 million, driven by the inclusion of the Motive acquisition.
• Management reaffirmed its target net debt to adjusted EBITDA range of 6.5-6.9x, consistent with the leverage-neutral structure of the Motive transaction.

Full company-level financial results are provided, with segment-specific data referenced only by portfolio exposure split rather than separate revenue performance: 1) Industrial: After close of the proposed Motive acquisition, industrial exposure will increase to approximately 50% of total straight-line rent. 2) Office: After completion of all planned office dispositions, office exposure will decrease to approximately 21% of total straight-line rent. For the full company in Q2 2026: GAAP revenue was $112.5 million, net loss attributable to common stockholders was $7.5 million, and adjusted funds from operations (AFFO) was $45.7 million ($0.22 per share), up from $0.21 per share in Q1 2026.

No specific material new risks or ongoing operational failures were discussed during the call. Management included standard forward-looking statement disclosures noting that actual results could differ materially from projected outcomes due to unidentified external factors, as detailed in the company's SEC filings.

Q: After office exposure is reduced to ~21% near-term, will future office sales continue to align with lease expiration structuring, or will the office reduction effort end? / A: GNL will continue to reduce office exposure via a mix of structures: the majority of planned sales follow the lease expiration-aligned model, which maximizes revenue by capturing all remaining contractual rent while avoiding vacancy costs. Management confirmed ongoing commitment to further reducing office exposure, with no fire sale planned, and will pursue the most efficient, value-maximizing exits rather than holding out for perfect pricing. This strategy is already proven by the rapid progress in reducing exposure to 21%.

Q: Will any of the non-industrial assets included in the Motive acquisition be sold, and are there any restrictions on sales? / A: There are no contractual restrictions on selling any assets from the Motive acquisition. The vast majority of Motive's portfolio is high-quality industrial assets that GNL plans to hold long-term. A small number of non-core assets do not fit GNL's strategic focus, and will be opportunistically sold, with proceeds used for either debt reduction or reinvestment in additional high-quality industrial assets, consistent with GNL's existing capital recycling framework.

Q: What acquisition market conditions is GNL seeing, and will it focus on smaller one-off deals or larger transformative deals like Motive going forward? / A: There is no shortage of available acquisition opportunities, but GNL maintains a disciplined underwriting funnel, approving only 3-10 out of every 100 properties evaluated based on tenant quality, credit, cap rate, geography, and industry fit. One-off smaller acquisitions remain an important part of portfolio building, and GNL is actively bidding on opportunities, but will not chase above-target pricing. GNL is focused on high-quality assets with long lease terms to drive consistent rental growth and portfolio stability, consistent with its existing strategy. The Motive acquisition was an unexpected attractive opportunity in 2026, and GNL will continue to be patient and selective with future large deals.

Q: The current spread between disposition cap rates (7.6%) and acquisition cap rates (8.2%) is accretive: will this continue, and how does GNL prioritize disposition proceeds between acquisitions, leverage reduction, and share repurchases? / A: Management expects the accretive spread from capital recycling to continue, as GNL negotiates for maximum sale prices on dispositions and minimum purchase prices on target acquisitions. Deleveraging remains the top priority for capital, followed by disciplined acquisitions that grow earnings and extend portfolio lease terms, which the Motive acquisition fulfilled for 2026. Share repurchases are a valuable third tool that GNL has executed at attractive discounted prices to date, but management would prefer to see share prices rise organically from new investor interest and would only actively repurchase when it makes strategic sense.