Global Net Lease (GNL) Q1 2026 earnings summary

Executive summary

• Announced a definitive, all-stock, leverage-neutral acquisition of Modiv Industrial valued at $535 million, expected to close in Q3 2026 and be immediately 4% accretive to AFFO per share, enhancing portfolio quality and diversification.

• Achieved significant deleveraging and portfolio optimization through $3.5 billion in asset sales, including a $1.8 billion multi-tenant retail portfolio sale, and continued disciplined capital recycling to reduce office exposure.

• Portfolio comprised 809 properties (40–40.3 million sq. ft.), 97% leased, with a 5.9-year weighted-average lease term as of March 31, 2026, and 64% of rental income from investment grade tenants.

• Board changes announced, with two members retiring after the 2026 annual meeting.

• Repurchased 19.7 million shares for $158.2 million since February 2025, including 4.2 million shares in Q1 2026.

Financial highlights

• Q1 2026 revenue was $109.3 million, down from $132.4 million year-over-year due to asset dispositions; net loss attributable to common stockholders was $16.0 million, a significant improvement from $200.3 million loss in Q1 2025.

• AFFO was $43.9 million ($0.21 per share), down from $66.2 million ($0.29 per share) year-over-year; FFO was $28.1 million, Core FFO $34.2 million.

• Annualized G&A expense reduced by 25% year-over-year to $49 million, saving $16 million.

• Capital expenditures declined to $1.6 million from $9.8 million year-over-year.

• Cash and cash equivalents at quarter-end were $125.5 million.

Outlook and guidance

• Reaffirmed full-year 2026 AFFO per share guidance of $0.80–$0.84 and net debt to adjusted EBITDA of 6.5x–6.9x; guidance excludes anticipated benefit from the Modiv transaction, which will be updated upon closing.

• Management expects cash from operations and existing cash to be sufficient for near- and long-term dividend payments and capital expenditures.

• 2026 guidance assumes $250–$350 million in gross transaction volume, focusing on office asset dispositions and redeployment into industrial and retail assets.

• Completion of the Modiv acquisition is expected in Q3 2026, subject to customary closing conditions.