Global Net Lease Shareholders Suffer 8.8% Loss Over Five Years Despite 20% Revenue Growth

Global Net Lease (NYSE:GNL) shareholders have endured a 8.8% loss from investing in the stock five years ago. Despite the company's revenue increasing by 20% per year, the share price has averaged a loss of 9% per year. However, the total shareholder return was -8.8%, boosted by dividends. The company's underlying fundamentals have been the driver of long-term performance, and investors should consider the potential for profitability.

Global Net Lease (NYSE: GNL) has experienced a challenging journey for shareholders over the past five years, with an 8.8% loss in stock price despite annual revenue growth of 20%. This discrepancy between revenue growth and share price performance highlights the importance of understanding the company's underlying fundamentals and the role of dividends in total shareholder returns.

Over the past five years, GNL's revenue has grown by an average of 20% per year, indicating strong operational performance. However, the share price has averaged a loss of 9% per year, resulting in a total shareholder return of -8.8%. This discrepancy can be attributed to several factors, including market sentiment, interest rates, and the company's balance sheet management.

One of the key drivers of long-term performance for GNL has been its commitment to dividends. Despite the stock price decline, the company has consistently paid out dividends, contributing significantly to the total shareholder return. For instance, in the second quarter of 2025, GNL declared a quarterly dividend of $0.190 per share Global Net Lease, Inc. 7.375% CUM PFD E declares $0.4609 dividend^[2]. This dividend, combined with the company's strong fundamentals, has provided investors with a source of income and a potential buffer against market volatility.

GNL's financial health has also been a key factor in its long-term performance. The company has successfully completed a series of strategic moves, including the sale of its multi-tenant portfolio and the refinancing of its Revolving Credit Facility. These moves have reduced the company's leverage and improved its credit rating, positioning GNL for future growth and profitability.

In the second quarter of 2025, GNL reported its Q2 2025 financial results, which highlighted significant strategic progress. The company completed the final phases of its multi-tenant portfolio sale, transforming into a pure-play net lease REIT. Key financial highlights include revenue of $124.9 million, AFFO of $0.24 per share, and a substantial $748 million reduction in net debt Global Net Lease Inc Stock Price, News & Analysis^[1]. Additionally, GNL successfully executed a $1.8 billion refinancing of its Revolving Credit Facility, reducing interest rate spread by 35 basis points and extending debt maturity to 3.7 years Global Net Lease Inc Stock Price, News & Analysis^[1]. These moves have strengthened GNL's financial position and lowered its cost of capital.

Looking ahead, investors should consider the potential for profitability as GNL continues to execute its strategic plan. The company's focus on single-tenant net lease properties, diversified tenant base, and strong liquidity position provide a solid foundation for future growth. Furthermore, the company's commitment to dividend payments and debt reduction indicates a focus on shareholder value.

In conclusion, while GNL shareholders have faced challenges over the past five years, the company's strong fundamentals, strategic moves, and commitment to dividends have contributed to a total shareholder return that, while negative, is not as severe as the stock price decline might suggest. As GNL continues to execute its strategic plan, investors should consider the potential for profitability and the role of dividends in long-term performance.