NYSE$GNL

Global Net Lease Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported an increase in revenue and AFFO per share, driven by strong portfolio performance and strategic acquisitions.

Global Net Lease reported a 6.1% increase in revenue to $82.7 million and an AFFO of $40.9 million. The company collected 97% of cash rents and completed $23.4 million in acquisitions. The portfolio remains 99.6% leased with a weighted-average remaining lease term of 8.7 years.

  • Revenue increased 6.1% to $82.7 million from third quarter 2019.
  • Net loss was $0.5 million as compared to net income of $6.9 million in third quarter 2019.
  • Collected 97% of third quarter cash rents, including 99% from Top 20 tenants.
  • Acquired three industrial and office properties for $23.4 million at a weighted-average going-in capitalization rate of 7.26%.

Headline financials

Total Revenue

$82.7M

Previous: $77.9M+6.1%
EPS (adj)

$0.39

Previous: $0.45-13.3%
Total Properties

299

No prior period
Total Square Feet

34.7M

No prior period
Capital Expenditures

-$178M

Previous: -$310M+42.5%
Free Cash Flow

-$174M

Previous: -$300M+41.9%
Net Income

$4.14M

Previous: $9.94M-58.3%
Operating Income

$26M

Previous: $24.6M+5.9%
Gross Profit

$75.2M

Previous: $69.7M+7.8%
Cash & Equivalents

$300M

No prior period
Total Assets

$3.82B

No prior period

Revenue & EPS history

Global Net Lease · Revenue · Quarterly

$82.7M

Q3 2020+6.1%vs Q3 2019
Beat estimate in 5 of 12 quarters(42%)
ActualEstimate

Revenue by segment

Global Net Lease · $52.2M total across 2 segments · Q3 2023

  • Office
    $38.8M
  • Multi-Tenant Retail
    $13.4M

Forward guidance

GNL anticipates continued portfolio performance and growth through strategic acquisitions, supported by ample liquidity and no near-term debt maturities.

Tailwinds

  • Resumed accretive acquisitions program.
  • Thoughtfully constructed pipeline will result in over $330 million of high-quality acquisitions.
  • Ample liquidity to act on this acquisitions plan.
  • No near-term debt maturities.
  • Committed to intentionally building a resilient, best-in-class portfolio of industrial, distribution and office properties.

Headwinds

  • Potential adverse effects of the ongoing global COVID-19 pandemic.
  • Acquisitions are subject to market conditions and capital availability.
  • Acquisitions may not be identified or completed on favorable terms, or at all.
  • Impact of COVID-19 pandemic on the Company’s rental revenue for the third quarter of 2020 and thereafter cannot be determined at present.
  • The ultimate impact on our future results of operations and liquidity will depend on the overall length and severity of the COVID-19 pandemic, which management is unable to predict.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.2%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.1%

Avg return

30 days after

56%

22 / 39 earnings

Positive

+6.2%

Q4 2024

Best reaction

-8.5%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.3%-0.3%+2.5%
Q4 2025-3.1%-3.2%-6.2%
Q3 2025+5.7%+5.0%+7.4%
Q1 2025+4.3%+5.6%+2.5%
Q4 2024+6.2%+9.7%+6.2%
Q3 2024+2.7%-0.4%-7.9%
Q2 2024+0.7%+0.4%+8.3%
Q1 2024-0.7%+2.5%+4.7%
Q4 2023-1.8%+0.1%+6.6%
Q3 2023-2.6%-5.1%+9.3%
Q2 2023+1.0%+5.8%+3.9%
Q1 2023-2.8%-7.5%-6.0%
Q4 2022+2.0%+1.3%-12.8%
Q3 2022+4.9%+6.8%+12.6%
Q2 2022-1.6%-0.3%-10.2%
Q1 2022-2.3%-8.1%+3.6%
Q4 2021+3.1%+0.9%+9.1%
Q3 2021-0.9%-3.7%-10.6%
Q2 2021+2.4%-0.6%-3.3%
Q1 2021+0.8%-1.3%+4.6%
Q4 2020+0.6%-3.1%-1.9%
Q3 2020-2.5%+12.7%+19.5%
Q2 2020+2.5%+6.6%+4.8%
Q1 2020+2.7%+2.1%+24.8%
Q4 2019-8.5%-8.1%-33.4%
Q3 2019+0.7%+1.2%+6.1%
Q2 2019+2.0%-0.1%-0.7%
Q1 2019+1.4%+2.6%+0.3%
Q4 2018-8.2%-5.8%-2.8%
Q3 2018+5.3%+4.3%-1.8%
Q2 2018+3.6%+2.2%-0.8%
Q1 2018+1.8%-2.2%+0.8%
Q4 2017-4.7%-3.7%+2.9%
Q3 2017-2.2%-1.7%-1.9%
Q2 2017-0.9%-2.4%+1.3%
Q1 2017-2.2%-3.5%-1.1%
Q4 2016+0.1%+0.4%-3.0%
Q3 2016+0.7%+6.5%+8.5%
Q2 2016-2.3%-0.9%-2.7%
Q4 2013
Q3 2013
Q2 2013
Q4 2012
Q3 2012
Q2 2012

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