Global Net Lease (GNL) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 7, 2026 astatine 11:56 AM CDT 28 min read

Image source: The Motley Fool.

Date

Thursday, May 7, 2026 astatine 11:00 a.m. ET

Call participants

• Chief Executive Officer — Michael Weil

• Chief Financial Officer — Chris Masterson

Need a punctuation from a Motley Fool analyst? Email [email protected]

Full Conference Call Transcript

Michael Weil: Thanks, Jordyn. Good morning, and convey you each for joining america today. Before we reappraisal our archetypal 4th 2026 results, I would similar to sermon our planned strategical acquisition of Motive Industrial, which we announced earlier this week. This transaction is simply a nonstop reflection of the strategy we outlined connected our past net telephone and the tangible advancement we person already made towards implementing it. Following a transformational twelvemonth for Global Net Lease, Inc. successful 2025, erstwhile we took deliberate actions to importantly trim leverage, fortify our recognition profile, and amended the wide prime of our portfolio, we are present positioned to absorption connected the disciplined recycling of superior into high-quality concern and retail assets.

This includes pursuing selective and opportunistic plus sales, peculiarly those that trim our bureau exposure, portion redeploying proceeds accretively into single-tenant concern and retail investments. The Motive transaction would bash conscionable that, arsenic we judge the closing of the transaction volition beforehand the durability and prime of our net illustration by adding a high-quality portfolio of concern nett lease assets crossed the United States, supported by long-duration leases and creditworthy tenants that align good with our concern criteria. The transaction is expected to beryllium instantly accretive with astir 4% accretion to AFFO per share, including meaningful outgo synergies done the elimination of duplicative G&A.

Importantly, the transaction is structured arsenic an all-stock acquisition with a fixed speech ratio of 1.975 to fastener successful the 4% accretion, making it leverage neutral and requiring nary caller outer capital. We judge this operation volition sphere the equilibrium expanse spot we person established portion allowing america to support meaningful flexibility to prosecute aboriginal strategical maturation opportunities. Motive’s long-duration leases person a weighted mean lease word of 15 years, see 2.4% yearly rent escalations, and are supported by a well-recognized tenant basal of starring planetary brands, with astir 45% of yearly basal rent derived from concern people oregon implied concern people tenants.

On a pro forma basis, the acquisition is expected to widen our weighted mean lease word from 5.9 to 6.7 years, summation our concern vulnerability from 47% to 50%, and trim our bureau attraction from 26% to 24%, which volition collectively fortify our portfolio premix and grow our geographic scope crossed cardinal U.S. concern markets and heighten the wide stableness of our combined platform. We are precise excited astir this transaction, which we expect to adjacent successful the 3rd 4th of this year. In summation to the Motive transaction, we are actively engaged successful different transaction enactment accordant with our firm strategy.