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- **Investment Grade Milestone**: Upgraded to BBB- with 7.2x net debt/EBITDA, down from 8.0x.
- **Share Buybacks**: $91.7M repurchased at 12% AFFO yield, prioritizing returns over acquisitions.
- **Lease Renewals**: 26% spread in Q3, 18.5% YTD, driven by long-term tenant relationships.
- **Debt Reduction**: $2B reduction since Q3 2024, targeting 6.5-7.1x leverage.
- **Fed Rate Impact**: 25bp cuts lower floating-rate debt costs, supporting margin expansion.

**CEO Summary Section**
- Achieved investment-grade BBB- rating from Fitch, reflecting reduced leverage (net debt down $2B since Q3 2024) and improved balance sheet flexibility.
- Sold $3B of non-core assets at 7.7% cap rate, with $1.8B from multi-tenant portfolio, driving debt reduction and liquidity growth to $1.1B.
- Completed 10-year lease renewal with GE Aviation (+37% spread) and 20-year renewal with GSA, maintaining 97% occupancy and 6.2-year WALT.
- Repurchased 12.1M shares ($91.7M) at 12% AFFO yield, prioritizing buybacks over acquisitions in current market.
- Fed rate cuts (25bp) reduced floating-rate debt costs, supporting margin expansion.

**CFO Financial Commentary**
- Q3 2025: Revenue $121M, net loss $71.1M, AFFO $53.2M ($0.24/share). Raised AFFO guidance to $0.95-$0.97 vs. prior $0.92-$0.94.
- Debt reduced to $3B (from $5B), 88% fixed-rate, 4.2% WACC (down 60bp). Net debt/EBITDA 7.2x (vs. 8.0x Q3 2024).
- Liquidity $1.1B, revolving credit capacity $1.2B (vs. $253M prior). G&A expenses down to $47M/year.

**Q&A Highlights**
- **Acquisition Strategy**: Prefers buybacks (12% AFFO yield) over acquisitions due to high seller cap rate expectations and tight market pricing. Disposition pipeline will drive further debt reduction.
- **Leverage Guidance**: Q3 leverage at high end of 6.5-7.1x range due to timing of dispositions. Q4 closings will bring ratio to midpoint.
- **Renewal Performance**: 26% spread on Q3 renewals (vs. 18.5% YTD), driven by 10+ year tenant relationships and proactive asset management.
- **Growth Outlook**: Open to acquisitions if accretive, but focused on completing disposition program and optimizing capital allocation.


Global Net Lease, Inc. (GNL) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

GNL

GNL fundamentals

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