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Global Net Lease, a prominent net lease REIT, reported a decline in its third-quarter revenue owing to recent asset dispositions, including the sale of a multi-tenant retail portfolio. Despite this, the company raised its full-year adjusted funds from operations (AFFO) per share guidance to a range of USD 0.95�0.97, up from its earlier forecast. The REIT also achieved an investment-grade credit rating of BBB-, underscoring improved financial stability, while maintaining its net debt to adjusted EBITDA guidance at 6.5x to 7.1x.
Global Net Lease (GNL) witnessed a decrease in revenue during the third quarter, largely due to asset sales, including the disposal of its multi-tenant retail portfolio. The firm reported revenue from tenants amounting to USD 121.01 million and a net loss of USD 71.05 million. Core funds from operations (FFO) stood at USD 39.49 million, while NAREIT FFO was recorded at USD 33.75 million. Adjusted FFO per share came in at USD 0.24 for the quarter. Advertisement
In response to its operational performance, the company revised its full-year AFFO per share guidance upwards to a range between USD 0.95 and USD 0.97, compared with the earlier projection of USD 0.92 to USD 0.96. Additionally, GNL maintained its net debt to adjusted EBITDA target within the range of 6.5x to 7.1x.
The REIT also executed a USD 1.8 billion refinancing of its revolving credit facility, which helped lower its cost of capital and extend the maturity profile of its debt. Furthermore, the company repurchased approximately 12.1 million shares at a weighted average price of USD 7.59, totalling USD 92 million. This move was aimed at enhancing shareholder value and leveraging its AFFO yield.
Reflecting its improved financial standing, Global Net Lease recently received an investment-grade credit rating upgrade to BBB-. Analyst sentiment toward the stock remains favourable, with four analysts rating it as a "strong buy" or "buy", three maintaining a "hold", and one suggesting a "sell". The median 12-month price target on Wall Street stands at USD 9.00, representing about a 16% premium over the company's recent closing price of USD 7.55.
Despite a decline in revenue due to asset dispositions, Global Net Lease has demonstrated strategic financial management through refinancing, share repurchases, and a revised earnings outlook. The company's investment-grade credit rating highlights growing investor confidence, while its improved AFFO per share guidance signals sustained operational resilience. With steady leverage targets and positive analyst sentiment, GNL remains well-positioned to navigate its near-term growth and capital structure goals.
Source - Reuters
5th Jun, 2025
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