NYSE$GNL

Global Net Lease Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Global Net Lease's financial performance increased in Q4 2019, marked by revenue growth, a rise in net income, and strategic acquisitions.

Global Net Lease reported a positive Q4 2019 with a revenue increase of 7.7% to $76.7 million and a net income of $9.3 million, a significant improvement from the previous year's loss. The company expanded its portfolio with 19 property acquisitions and increased its industrial/distribution concentration, while also enhancing portfolio occupancy and rent escalators. Strategic acquisitions and dispositions in Q4 2019 and early 2020 are expected to further increase annualized straight-line rent.

  • Revenue from tenants increased by 7.7% to $76.7 million compared to Q4 2018.
  • Net income attributable to common stockholders was $9.3 million, a significant improvement from the $6.7 million loss in Q4 2018.
  • Acquired 19 properties for $252.3 million with a 7.25% weighted average capitalization rate.
  • Portfolio occupancy increased to 99.6% leased, up from 99.2% in Q4 2018.

Headline financials

Total Revenue

$76.7M

Previous: $67.3M+14.0%
EPS (adj)

$0.35

Previous: $0.50-30.0%
Total Properties

278

No prior period
Capital Expenditures

$17.3M

Previous: $1.45M+1093.0%
Free Cash Flow

$30.8M

Previous: $39.7M-22.5%
Net Income

$12.9M

Previous: -$4.29M+401.4%
Operating Income

$35.1M

Previous: $2.66M+1217.9%
Gross Profit

$76.7M

Previous: $63.9M+20.0%
Cash & Equivalents

$270M

Previous: $100M+169.4%
Total Assets

$3.7B

Previous: $3.31B+11.8%
Stock-Based Comp

$2.49M

Previous: $1.45M+71.7%

Revenue & EPS history

Global Net Lease · Revenue · Quarterly

$76.7M

Q4 2019+14%vs Q4 2018
Beat estimate in 3 of 9 quarters(33%)
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

Global Net Lease anticipates continued growth and stability through strategic acquisitions and dispositions, with a focus on industrial and office properties and embedded rent growth.

Tailwinds

  • Expected increase in annualized straight-line rent by $26.9 million from Q4 2019 and Q1 2020 acquisitions.
  • Continued execution of the business plan is expected to benefit shareholders.
  • Over $270 million in Industrial and Office acquisitions in the pipeline.
  • Portfolio quality and stability due to 68.2% of annualized straight-line rent from investment-grade tenants.
  • Contractually embedded rent growth from annual rent escalators in 93.2% of leases.

Headwinds

  • Purchase and sale agreements are subject to conditions.
  • Letters of intent may not lead to a definitive agreement.
  • There is no assurance that the company will complete any of these transactions.
  • Transactions may not be completed on a timely basis.
  • Transactions may not be completed on acceptable terms and conditions, if at all.

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 Q4 2019

Historical avgQ4 2019

+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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