AFFO Per Share Increased 6% Compared to Fourth Quarter 2023On Target to Reach High End of Disposition Guidance of $600 Million; Currently 7.2% Cash Cap Rate on Occupied DispositionsCompany Reaffirms 2024 Guidance NEW YORK, May 07, 2024 (GLOBE NEWSWIRE) -- Global Net Lease, Inc. (NYSE:GNL) ("GNL" or the "Company"), an internally managed real estate investment trust that focuses on acquiring and managing a globally diversified portfolio of strategically located commercial real estate properties, announced today its financial and operating results for the quarter ended March 31, 2024. First Quarter 2024 Highlights Revenue was $206.0 million compared to $206.7 million in fourth quarter Net loss attributable to common stockholders was $34.7 million, compared to net loss of $59.5 million in fourth quarter 2023 Core Funds from Operations ("Core FFO") increased 17% to $56.6 million, from $48.3 million in fourth quarter 2023 Adjusted Funds from Operations ("AFFO") increased 5% to $75.0 million, from $71.7 million in fourth quarter 2023 AFFO per diluted share grew 6% to $0.33 in first quarter 2024 from $0.31 in fourth quarter 20231 Closed plus disposition pipeline totals $554 million2 with a cash cap rate of 7.2% on occupied assets and a weighted average remaining lease term of 3.9 years Only 2.9% of outstanding debt is scheduled to mature during the remainder of 2024; remaining balance to be addressed through dispositions or corporate credit facility Improved percentage of debt that is fixed-rate to 84%, an increase from 81% in the fourth quarter of 2023 Subsequent to first quarter 2024, reduced annualized interest expense by $3.5 million with the completion of an interest-only $237 million CMBS re-financing at a fixed interest rate of 5.74% Reduced tax expense to $2.4 million from $5.5 million in the prior quarter, through a successful European tax restructure 1.4 million square feet of leasing activity across the portfolio, resulting in over $17 million of new straight-line rent Renewal leasing spread of 6.1% across the entire portfolio with a weighted average lease term of 5.8 years; new leases completed in the quarter had a weighted average lease term of 10.2 years Portfolio occupancy experienced a short-term decline caused by one tenant, which represented only 0.55% of total SLR and is under contract to be sold3 Weighted average annual rent increase of 1.3% provides organic rental growth Sector-leading 58% of annualized straight-line rent comes from investment-grade or implied investment-grade tenants4 "We are reaffirming our full-year 2024 guidance and are pleased with our performance in the first quarter that included 6% AFFO per share growth, strong leasing momentum, efficient balance sheet execution and continued progress on our disposition initiative," stated Michael Weil, CEO of GNL. "The 7.2% cash cap rate we are achieving on the announced occupied assets represents a significant premium compared to the implied value of this portfolio based on the current trading price. We are committed to increasing shareholder value and continuing our disposition initiative until we close the gap between the value of our real estate and our stock price. Our achievements this quarter reflect our commitment to creating shareholder value over the long-term by enhancing our balance sheet, reducing leverage and positioning GNL for sustainable growth in the future." Full Year 2024 Guidance Update5 GNL reaffirms its 2024 AFFO per share guidance range of $1.30 to $1.40 and a net debt to Adjusted EBITDA range of 7.4x to 7.8x. Summary of Results     Three Months Ended March 31,   Three Months Ended December 31, (In thousands, except per share data)     2024       2023   Revenue from tenants   $ 206,045     $ 206,726             Net loss attributable to common stockholders   $ (34,687 )   $ (59,514 ) Net loss per diluted common share   $ (0.15 )   $ (0.26 )           NAREIT defined FFO attributable to common stockholders   $ 55,773     $ 43,165   NAREIT defined FFO per diluted common share   $ 0.24     $ 0.19             Core FFO attributable to common stockholders   $ 56,592     $ 48,331   Core FFO per diluted common share   $ 0.25     $ 0.21             AFFO attributable to common stockholders   $ 74,964     $ 71,656   AFFO per diluted common share   $ 0.33     $ 0.31   Property Portfolio As of March 31, 2024, the Company's portfolio of 1,277 net lease properties is located in eleven countries and territories, and is comprised of 66.9 million rentable square feet. The Company operates in four reportable segments, consistent with its current management internal financial reporting purposes: (1) Industrial & Distribution, (2) Multi-Tenant Retail, (3) Single-Tenant Retail and (4) Office. The real estate portfolio metrics include: 93% leased with a remaining weighted-average lease term of 6.5 years6 78% of the portfolio contains contractual rent increases based on annualized straight-line rent 58% of portfolio annualized straight-line rent derived from investment grade and implied investment grade rated tenants 80% U.S. and Canada, 20% Europe (based on annualized straight-line rent) 32% Industrial & Distribution, 28% Multi-Tenant Retail, 21% Single-Tenant Retail and 19% Office (based on an annualized straight-line rent) Capital Structure and Liquidity Resources7 As of March 31, 2024, the Company had liquidity of $175.4 million and $190 million of capacity under the Company's revolving credit facility. The Company had net debt of $5.2 billion8, including $2.6 billion of mortgage debt. As of March 31, 2024, the percentage of debt that is fixed rate (including variable rate debt fixed with swaps) was 84% compared to 67% as of March 31, 2023. The Company's total combined debt had a weighted average interest rate of 4.8% resulting in an interest coverage ratio of 2.4 times9. Weighted-average debt maturity was 3.3 years as of March 31, 2024 as compared to 3.7 years as of March 31, 2023. Footnotes/Definitions 1 While we consider AFFO a useful indicator of our performance, we do not consider AFFO as an alternative to net income (loss) or as a measure of liquidity. Furthermore, other REITs may define AFFO differently than we do. Projected AFFO per share data included in this release is for informational purposes only and should not be relied upon as indicative of future dividends or as a measure of future liquidity. AFFO for the fourth quarter also contains a number of adjustments for items that the Company believes were non-recurring, one-time items including adjustments for items that were settled in cash such as merger and proxy related expenses. 2 Closed plus disposition pipeline of $554 million as of May 1, 2024. Includes $422 million of closed plus pipeline occupied dispositions at a cash cap rate of 7.2% and $132 million of closed plus pipeline vacant dispositions that is expected to reduce annualized operating expenses by $3 million. The properties included in our disposition pipeline for such purposes include those for which we have entered into purchase and sale agreements ("PSAs") or non-binding letters of intents ("LOIs"). There can be no assurance that the transactions contemplated by such PSAs or LOIs will be completed on the terms contemplated, if at all.3 Portfolio occupancy experienced a short-term impact due to the vacancy of Klaussner, a furniture manufacturing tenant that originally occupied five properties at only $2.13 of rent per square foot. We were able to re-lease two of the properties at the same rental rate with no downtime. The three remaining vacant properties previously represented only 0.55% of GNL's total SLR but caused a 2.5% short-term decline in overall occupancy given that it occupied 1.7 million square feet. Two of the properties are already under contract to sell and are expected to close in the second quarter. The last property is also on the market and we are actively engaged with potential buyers.4 As used herein, "Investment Grade Rating" includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied Investment Grade may include actual ratings of tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant's obligation under the lease) or by using a proprietary Moody's analytical tool, which generates an implied rating by measuring a company's probability of default. The term "parent" for these purposes includes any entity, including any governmental entity, owning more than 50% of the voting stock in a tenant. Ratings information is as of March 31, 2024. Comprised of 34.5% leased to tenants with an actual investment grade rating and 23.7% leased to tenants with an Implied Investment Grade rating based on annualized cash rent as of March 31, 2024.5 We do not provide guidance on net income. We only provide guidance on AFFO per share and our Net Debt to Adjusted EBITDA ratio and do not provide reconciliations of this forward-looking non-GAAP guidance to net income per share or our debt to net income due to the inherent difficulty in quantifying certain items necessary to provide such reconciliations as a result of their unknown effect, timing and potential significance. Examples of such items include impairment of assets, gains and losses from sales of assets, and depreciation and amortization from new acquisitions and other non-recurring expenses.6 Weighted-average remaining lease term in years is based on square feet as of March 31, 2024.7 During the three months ended March 31, 2024, the Company did not sell any shares of Common Stock or Series B Preferred Stock through its Common Stock or Series B Preferred Stock "at-the-market" programs.8 Comprised of the principal amount of GNL's outstanding debt totaling $5.4 billion less cash and cash equivalents totaling $131.9 million, as of March 31, 2024.9 The interest coverage ratio is calculated by dividing adjusted EBITDA for the applicable quarter by cash paid for interest (calculated based on the interest expense less non-cash portion of interest expense and amortization of mortgage (discount) premium, net). Management believes that Interest Coverage Ratio is a useful supplemental measure of our ability to service our debt obligations. Adjusted EBITDA and cash paid for interest are Non-GAAP metrics and are reconciled below. Conference Call GNL will host a webcast and conference call on May 8, 2024 at 11:00 a.m. ET to discuss its financial and operating results. To listen to the live call, please go to GNL's "Investor Relations" section of the website at least 15 minutes prior to the start of the call to register and download any necessary audio software. Dial-in instructions for the conference call and the replay are outlined below. Conference Call Details Live Call Dial-In (Toll Free): 1-877-407-0792International Dial-In: 1-201-689-8263 Conference Replay* For those who are not able to listen to the live broadcast, a replay will be available shortly after the call on the GNL website at www.globalnetlease.com  Or dial in below:Domestic Dial-In (Toll Free): 1-844-512-2921International Dial-In: 1-412-317-6671Conference Number: 13745186 *Available from 2:00 p.m. ET on May 8, 2024 through August 8, 2024. Supplemental Schedules  The Company will furnish supplemental information packages with the Securities and Exchange Commission (the "SEC") to provide additional disclosure and financial information. Once posted, the supplemental package can be found under the "Presentations" tab in the Investor Relations section of GNL's website at www.globalnetlease.com and on the SEC website at www.sec.gov.  About Global Net Lease, Inc.  Global Net Lease, Inc. is a publicly traded real estate investment trust listed on the NYSE, which focuses on acquiring and managing a global portfolio of income producing net lease assets across the United States, and Western and Northern Europe. Additional information about GNL can be found on its website at www.globalnetlease.com. Forward-Looking Statements The statements in this press release that are not historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. The words such as "may," "will," "seeks," "anticipates," "believes," "expects," "estimates," "projects," "potential," "predicts," "plans," "intends," "would," "could," "should" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside of the Company's control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the risks associated with realization of the anticipated benefits of the merger with The Necessity Retail REIT, Inc. and the internalization of the Company's property management and advisory functions; that any potential future acquisition or disposition by the Company is subject to market conditions and capital availability and may not be identified or completed on favorable terms, or at all. Some of the risks and uncertainties, although not all risks and uncertainties, that could cause the Company's actual results to differ materially from those presented in the Company's forward-looking statements are set forth in the Risk Factors and "Quantitative and Qualitative Disclosures about Market Risk" in the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and all of its other filings with the U.S. Securities and Exchange Commission, as such risks, uncertainties and other important factors may be updated from time to time in the Company's subsequent reports. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. Contacts:  Investors and Media:Email: (332) 265-2020 Global Net Lease, Inc.Consolidated Balance Sheets(In thousands)     March 31,2024   December 31,2023 ASSETS   (Unaudited)     Real estate investments, at cost:         Land   $ 1,416,109     $ 1,430,607   Buildings, fixtures and improvements     5,819,563       5,842,314   Construction in progress     1,887       23,242   Acquired intangible lease assets     1,248,937       1,359,981   Total real estate investments, at cost     8,486,496       8,656,144   Less accumulated depreciation and amortization     (1,068,106 )     (1,083,824 ) Total real estate investments, net     7,418,390       7,572,320   Assets held for sale     14,047       3,188   Cash and cash equivalents     131,880       121,566   Restricted cash     51,817       40,833   Derivative assets, at fair value     12,144       10,615   Unbilled straight-line rent     86,995       84,254   Operating lease right-of-use asset     75,475       77,008   Prepaid expenses and other assets     110,706       121,997   Deferred tax assets     4,791       4,808   Goodwill     48,540       46,976   Deferred financing costs, net     14,011       15,412   Total Assets   $ 7,968,796     $ 8,098,977             LIABILITIES AND EQUITY         Mortgage notes payable, net   $ 2,481,263     $ 2,517,868   Revolving credit facility     1,760,182       1,744,182   Senior notes, net     890,879       886,045   Acquired intangible lease liabilities, net     92,823       95,810   Derivative liabilities, at fair value     3,705       5,145   Accounts payable and accrued expenses     100,963       99,014   Operating lease liability     47,704       48,369   Prepaid rent     47,534       46,213   Deferred tax liability     5,718       6,009   Dividends payable     11,357       11,173   Total Liabilities     5,442,128       5,459,828   Commitments and contingencies