NYSE$GNL

Global Net Lease Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Completed merger and internalization, exceeding initial synergy estimates and reporting revenue of $118.2 million.

Global Net Lease reported third quarter results reflecting 73 days of stand-alone pre-merger GNL and only 19 days of post-merger, internalized GNL and RTL results. The company completed its merger and internalization, captured $56 million of annualized synergies, and leased over 1.8 million square feet. Revenue was $118.2 million, and the net loss attributable to common stockholders was $142.5 million, which included $68.82 million of one-time expenses.

  • Completed merger with The Necessity Retail REIT and internalization of advisory and property management functions, creating the third largest publicly listed net lease REIT with a global presence
  • Captured $56 million of annualized synergies for the 19 days of combined results, exceeding the original estimate of $54 million
  • Leased over 1.8 million square feet across the portfolio, resulting in nearly $17 million of net new straight-line rent
  • Revised post Merger quarterly dividend of $0.354 per share of common stock starting in Q4 2023

Headline financials

Total Revenue

$118M

Previous: $92.6M+27.6%
EPS (adj)

$0.24

Previous: $0.47-48.9%
Total Properties

1.3K

Previous: 310+320.6%
Total Square Feet

66.8M

Previous: 39.5M+69.1%
Capital Expenditures

-$111M

Previous: -$53M-109.1%
Free Cash Flow

-$247M

Previous: -$38.2M-546.7%
Net Income

-$136M

Previous: $14.8M-1017.8%
Operating Income

-$95.6M

Previous: $29M-429.4%
Gross Profit

$105M

Previous: $84.8M+23.2%
Cash & Equivalents

$178M

Previous: $128M+39.4%
Total Assets

$8.18B

Previous: $3.97B+106.4%
Stock-Based Comp

$10.4M

Previous: $3.13M+233.5%

Revenue & EPS history

Global Net Lease · Revenue · Quarterly

$118M

Q3 2023+27.6%vs Q3 2022
Beat estimate in 6 of 14 quarters(43%)
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 expects to capture the stated $75 million worth of total synergies by Q3 2024 and expects its share price to trade more in line with its internalized net lease peers on an AFFO multiple basis.

Tailwinds

  • Expects to capture the stated $75 million worth of total synergies by Q3 2024
  • Expects its share price to trade more in line with its internalized net lease peers on an AFFO multiple basis
  • Benefits of the Merger by exceeding the projected cost synergies by $2 million
  • Focus on strategic dispositions in 2023, totaling $383 million year-to-date, with the proceeds to be used to reduce outstanding debt and general corporate purposes
  • Weighted average annual rent increase of 1.3% provides organic rental growth

Headwinds

  • Comparisons of the period to period financial information of the Company may not be meaningful.
  • Net loss attributable to common stockholders was $142.5 million
  • NAREIT defined FFO attributable to common stockholders was $(26.8) million
  • Weighted-average debt maturity was 3.4 years as of September 30, 2023 as compared to 4.2 years as of September 30, 2022
  • Historical financial information prior to September 12, 2023, represents the pre-Merger financial information of GNL on a stand-alone basis.

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 2023

Historical avgQ3 2023

+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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