Summary of Global Net Lease (GNL) Q2 2026 Earnings Call

1Key Financial Results and Metrics

Revenue: $112.5 million

Net Loss: $7.5 million attributable to common stockholders

Adjusted Funds from Operations (AFFO): $45.7 million, or $0.22 per share (up from $0.21 in Q1 2026)

Debt: Gross outstanding debt of $2.5 billion, down $621 million year-over-year

Weighted Average Interest Rate: 4.1%, improved from 4.3% in Q2 2025

Interest Coverage Ratio: 3.2 times

Net Debt to Adjusted EBITDA Ratio: Improved to 6.6x from 7.2x in Q1 2026

Portfolio Occupancy: Steady at 97%, with office occupancy increasing to 99%

Share Repurchases: 20.9 million shares repurchased since program inception at an average price of $8.11.

2Strategic Updates and Business Highlights

Acquisition of Modiv: Expected to close in mid-August 2026, enhancing GNL's portfolio with high-quality industrial assets and increasing the weighted average lease term to 6.6 years. The acquisition is projected to be 4% accretive to AFFO per share.

Capital Recycling Strategy: Continued focus on monetizing non-core assets, with $263 million in closed and pending dispositions, primarily office assets. The strategy aims to reduce office exposure to approximately 21% of straight-line rent by year-end.

Leasing Performance: Strong renewal spreads averaging 5.6% above expiring rents, with significant renewals from major tenants like Dollar General and FedEx.

Portfolio Quality: 63% of tenants are investment-grade or implied investment-grade, with 48% of straight-line rent from publicly traded tenants.

3Forward Guidance and Outlook

AFFO per Share Guidance: Increased from $0.80-$0.84 to $0.82-$0.85 for the full year 2026.

Transaction Volume Guidance: Raised from $250 million-$350 million to $700 million-$800 million, reflecting the anticipated Modiv acquisition.

Leverage Guidance: Reaffirmed net debt to adjusted EBITDA range of 6.5x to 6.9x, maintaining a leverage-neutral structure post-Modiv acquisition.

4Bad News, Challenges, or Points of Concern

Net Loss: The company reported a net loss for the quarter, which may raise concerns among investors regarding profitability.

Office Exposure: While GNL is actively reducing office asset exposure, the ongoing transition may pose risks if market conditions for office properties do not improve.

Pending Acquisition Risks: The successful completion of the Modiv acquisition is contingent on shareholder approval, and any delays or issues could impact GNL's strategic positioning.

5Notable Q&A Insights

Office Asset Sales: Management indicated that future sales of office assets will be aligned with lease expirations, but they remain open to opportunistic sales to maximize revenue.

Transaction Market: CEO Michael Weil emphasized a disciplined approach to acquisitions, focusing on quality over quantity, and indicated that they will continue to evaluate smaller acquisitions alongside larger opportunities like Modiv.

Capital Allocation Strategy: The company plans to balance capital between reducing leverage, making new acquisitions, and executing share repurchases, with a focus on maintaining a strong balance sheet and enhancing portfolio quality. This summary encapsulates GNL's financial performance, strategic initiatives, and outlook while addressing potential challenges and insights from the Q&A session.