8.26% Yield & a Safety Net: Why Global Net Lease's Preferred Stock Might Be a Winner for Income Investors

Looking for a high-yielding investment that's backed by steady real estate income? Let's take a look at Global Net Lease, Inc.'s Series D Preferred Stock (GNL.PRD). With an 8.26% dividend yield and a price sitting below its $25 liquidation value, this stock could be a cash machine for income hunters—if you're willing to weather some volatility.

The Numbers That Grab Your Attention
First, the basics: GNL.PRD is trading at $22.69 as of June 2025, a 9.24% discount to its liquidation preference of $25. That means if Global Net Lease were to liquidate, investors would get $25 per share, a built-in safety cushion. The stock pays a 7.5% coupon rate (based on the $25 liquidation value), translating to $1.875 in annual dividends—or $0.46875 per share quarterly, with the next payment due July 15 to holders as of July 3.

Why This Preferred Stock Could Be a Steady Earnings Machine
Preferred stocks aren't for everyone, but for income-focused investors, they're a critical tool. Here's why GNL.PRD stands out:
1. Consistent Dividends: GNL has a history of paying preferred dividends, and this series is cumulative, meaning missed payments must eventually be made. That's a big deal if the company hits a rough patch.
2. Real Estate Backing: Global Net Lease owns a diversified portfolio of net lease properties—think office buildings, warehouses, and retail spaces—across 30 countries. These leases often have long terms, providing steady cash flow to fund those dividends.
3. Outperformance in 2024: Over the past year, GNL.PRD delivered a 19.83% total return, handily beating the S&P 500's 9.29%. Even YTD, it's up 1.19%, which isn't bad given the market's mixed performance.

The Risks You Can't Ignore
Nothing is risk-free. Here's what could trip up this stock:
- Interest Rate Sensitivity: Like all preferreds, GNL.PRD's price moves inversely with rates. If rates spike, its price could drop further—but the yield would rise, making it more attractive.
- Economic Downturns: Real estate can suffer if tenants default. Global Net Lease's global diversification helps, but a recession or sector-specific issues (e.g., office vacancies) could hurt cash flow.
- Call Risk: The stock was callable starting March 2024, but since the company didn't redeem it, it's now a perpetual preferred, meaning investors can hold it indefinitely.

The Bottom Line: Buy the Dip, but Stay Alert
If you're after income and can tolerate some price swings, GNL.PRD looks compelling. The $25 liquidation preference acts as a floor, and the 8.26% yield is hard to pass up in a low-interest world.

Action Plan for Investors:
- Dollar-Cost Average: Buy chunks of the stock over time to smooth out price fluctuations.
- Check the Prospectus: Review SEC filings for details on covenants and risks. The CUSIP (which you can find in disclosures) will help track it accurately.
- Hold for Dividends: Focus on the steady income, not daily price swings.

Final Take: This isn't a get-rich-quick play. But for those who need reliable payouts—and can stomach a bit of volatility—Global Net Lease's Series D preferred could be a sturdy anchor in your portfolio. Just don't forget to keep an eye on broader economic trends.

Investor Alert: Preferred stocks are less volatile than common stock but rank below bonds in priority. Always assess your risk tolerance and consult a financial advisor.