NYSE$GNL

Global Net Lease Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Global Net Lease reported its financial and operating results for the fourth quarter and full year ended December 31, 2024.

Global Net Lease reported a decrease in revenue for Q4 2024 compared to Q4 2023, primarily due to significant dispositions. However, the company significantly reduced its net loss and improved its Core FFO and AFFO per share. The company also announced a binding agreement to sell its multi-tenant portfolio for approximately $1.8 billion, aiming to become a pure-play, single-tenant net lease company.

  • Revenue decreased to $199.1 million in Q4 2024 from $206.7 million in Q4 2023, primarily due to $835 million in dispositions.
  • Net loss attributable to common stockholders significantly improved to $17.5 million in Q4 2024 from $59.5 million in Q4 2023.
  • Core FFO per share increased to $0.30 in Q4 2024 from $0.21 in Q4 2023, and AFFO per share increased to $0.34 from $0.31.
  • The company entered into a binding agreement to sell its multi-tenant portfolio of 100 non-core properties for approximately $1.8 billion, aiming to reduce leverage and improve liquidity.

Headline financials

Total Revenue

$199M

Previous: $207M-3.7%
EPS (adj)

$0.34

Previous: $0.21+61.9%
Investment Grade Tenants

61.0%

No prior period
Net Debt to Adj. EBITDA

7.6

No prior period
Fixed Rate Debt

91.0%

No prior period
Wtd. Avg. Interest Rate

4.8%

No prior period
Wtd. Avg. Debt Maturity

3

No prior period
Capital Expenditures

-$12.8M

No prior period
Net Income

-$17.5M

Previous: -$59.5M+70.7%
Operating Income

$63.8M

Previous: $45.3M+40.9%

Revenue & EPS history

Global Net Lease · Revenue · Quarterly

$199M

Q4 2024-3.7%vs Q4 2023
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

The company is establishing initial 2025 guidance, contingent on the sale of its multi-tenant portfolio, with a focus on AFFO and Net Debt to Adjusted EBITDA.

Tailwinds

  • Proposed multi-tenant portfolio sale would significantly reduce leverage and improve liquidity position.
  • Proposed transaction would create a pure-play, single-tenant net lease company with enhanced portfolio metrics.
  • Company initiates an opportunistic $300 million share repurchase program.
  • Reduced annual dividend to $0.190 per share of common stock beginning with the dividend expected to be declared in April 2025, which would generate $78 million in incremental annual cash flow.
  • Expected AFFO per share range of $0.90 to $0.96 for full year 2025.

Headwinds

  • Guidance is contingent on the sale of the multi-tenant portfolio, introducing uncertainty.
  • Net Debt to Adjusted EBITDA range of 6.5x to 7.1x for 2025, still indicating significant leverage.
  • The company does not provide guidance on net income, making it difficult to assess overall profitability.
  • Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially.
  • The company undertakes no obligation to update or revise any forward-looking statement unless required by law.

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 2024

Historical avgQ4 2024

+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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