GNL - Earnings call 4 2023 | Global Net Lease, Inc.

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Operator

Good morning, everyone, and welcome to the Global Net Lease, Inc. Q4 2023 Earnings Call. [Operator Instructions] Please also note, today's event is being recorded. And at this time, I'd like to turn the floor over to Jordyn Schoenfeld of Global Net Lease. Please go ahead, sir.

Jordyn Schoenfeld

Thank you. thank Earnings joining Call. and Fourth for everyone, XXXX Quarter afternoon, you us for GNL's Good

and Chief Joining of uncertainties risks forward-looking those periodic our that you detailed Mike or factors forward-looking uncertainties. with could risk Nelson, differ all Officers; by that We Should Weil from more may Form and our today statements, for of after materialize, and date Masterson, me filed to the filings, on and to statements. more cause materially the expressed Jim actual GNL's reports the which are including the these one Co-Chief SEC results SEC risks information the or Officer. The discussion or a refer following Financial call implied XX-Ks current differences. subject are Chris contains GNL's and Executive these of

statements Any of this date of provided conference made only this as forward-looking call the during call. are

statements. Also, non-GAAP depreciation we our are earnings our result provide adjusted not Examples items net to income intent provide SEC also law. of this their be net company's release which net which projections A impairments obligation As the of any most today's Any and of sale unknown significance. and on measures, our expenses. by timing from quantifying of forward-looking for our our guidance useful stated forward-looking statements these update supplement, guidance required guidance or losses in are new that isolation Please pipeline income reconciliations acquisitions as accordance about other or income. debt these of and from only to considered per potential Mike? posted to of to we or measures in GAAP future as Weil. assets our and referring financial with share net is directly and on filings, information as well during share about the implied should in AFFO performance. our and measure Necessity debt comparable statements, substitute evaluating and as value an internalization, we in the to include of will not the inherent to the available Mike future financial our website. Please such consider in a do ratio measures following refer gains will revise can EBITDA be not in over to amortization and the or note effect, These disclaims to with functions earnings due assets, also a throughout management to giving non-GAAP and forward-looking to today's call, per call guidance investment results adjustments success for prepared reconciliations Inc., to reconciliation our certain of believe such more term to necessary Retail we Co-CEO, GNL's the do a call. I'll as financial GAAP. tenants, discuss to except provide and effect merger or REIT, advisory or GNL, also GNL merger difficulty completed in and provide items now be property internalization what recently nonrecurring including known we both the turn release RTL, RTL's any and investment-grade as We use any

Edward Weil

a and us tenant rental flexibility high and with in X.X% high-quality, rent, We total totaling The provides largest effectively to tenants. the believe for you accounts morning, GNL with top XX% diverse of largest joining income. quality our mitigating of only the focus our investment-grade the portfolio on on a within global the primarily third diversified the lease today. now capacity portfolio presence tenants portfolio. all highlights thank us GNL's the just tenants concentration features Jordyn. of XX and investment-grade the peers the compared risk portfolio, GNL numerous capitalize for and to our as stability traded and market term. XXXX governance, of opportunities, portfolio REIT aligning maximizing enhanced with shareholder internalization for Good net Thanks, transformative publicly that year net was GNL corporate peers. management of the included the over value further lease long with a its straight-line is

In momentum. XXXX strong platform internalization, also GNL's asset the highlighted leasing capabilities with merger addition and management to continued

on of merger, of in million As investor driving significant XXXX GNL variable and the down recognized our implementing as synergies, cost quarter third stated reducing to a deck, achieve its EBITDA. sheet, our has balance also we're the adjusted savings on track direct result XXXX. GNL outlined annualized deleveraging and $XX of a its is to debt rate net debt focused by its to business plan exposure currently

assets expirations. through priority noncore portfolio strategic strategically to where beneficial opportunity there near-term believe focus opportunistic Our includes lease that or debt assets We've prioritizing assets dispositions, select or divest. will have identified maturities are reviewed our reducing on we This leverage sales. near-term noncore is and and near-term

is million to peers. Selling proceeds narrow provide premium leverage measured value, clear of opportunistic net down potentially on expect This also debt adjusted drive attractive to EBITDA. value compared to rate an by shareholder will significant value cap Driving to strategic is our company enhance cap us the implied $XXX dispositions We compared will balance to derisk long-term long-term investors our approach cash assets to the and used through lower trading shareholder and basis. rates currently generating $XXX of and with create lease a the path program net where of to trading million at proper disposition proof maximize demonstrate to discount total a forward sheet to a our XXXX. dispositions for in

commitment near-term continued to company's a policy. further from reduction balance cash $X.XX strengthening $XX share, Our by amount annual the its strategic while increasing of disciplined reduce involves dividend a reflects $X.XX million approach planned of dividend to also sheet This per GNL's annualized leverage. to the maintaining

to In year-end The our measured of nearly stable had credit an properties, tenant contractual gross base spanning an a again net the we of or portfolio. average an highlighting by growth of a the with macro a America, Europe. lease tenants quality X,XXX positions earnings XX% of geography, external of approximately portfolio portfolio to X.X%. XX% lease move includes million a rent composition with term strong annual features At increase industry-leading XXXX, also of Turning perspective, investment-grade North receiving of from type, portfolio a and our rental average implied investment-grade unmatched, rating. From high I'm asset feet challenges asset diverse remaining or with renewal spreads and renewal renewals management whether is as we that capabilities weighted occupancy entire is square attractive leasing XX than and activities $X.X tenant we on The rents. were industry X.X effectively million years. we over with the comes the asset value XX% maintained and particular, as our quarter our billion. fourth navigate continue X% expiring straight-line The earned leasing across ahead. our higher portfolio in demonstrated GNL of while XX% portfolio, X.X square included leasing efforts. Geographically, feet

a renewals average X.X%, span of lease annual our term distribution leases in the the weighted largest and fourth that the rent. have million quarter in X.X-year XXXX lease X.X is rental XX.X having completed segment that the portfolio that positioning rental of fourth with were quarter weighted an over years, of the rent feet years. The of while properties million were weighted straight-line that average $XXX while portfolio lease to leases term a this portfolio increase XX% contributed completed average include XXXX square have industrial annualized average benefit of of annual X.X term. XXX New of with to from a in escalations income

rent. straight-line segment retail retail $XXX segment of single-tenant million investment-grade implied that XX% rent. with X.X-year comprised weighted feet leases properties that lease lease-up segment incremental count, and million centers, X.X multi-tenant This is with attractive leasing over and rated that suburban segment weighted consists an properties The and by XXX to grocery-anchored span feet, property average million The spreads. of single-tenant triple-net span leased. retail in XX% term. The of includes lease predominantly a XX% over has remaining tenants portfolio years potential annualized or which XXX features square Our contributed contributed term average the million of comprises square investment-grade and straight-line largest $XXX X.X is XX.X annualized are

Sunbelt favorable Additionally, of and from XX% the straight-line in portfolio markets, this comes grow which to demographic tailwinds. rent continue have

million includes properties and XX straight-line smallest X.X million span $XXX feet X-year that straight-line term. segment rent to Our and lease square weighted average annualized has contributed single-tenant a rent, office, by

facilities R&D default mission-critical investment-grade we of metrics the risk. GNL's and comprised we or differentiates our office investment-grade rent as define it's XX% One and provides XX% stability lab that that tenants, portfolio portfolio headquarters, level or low of is facilities, which with feature which believe implied of single-tenant

our Given of our amounts of office GNL's tenant contributing limiting XX the comprehensive maturities, risk. with concentration The renewals, X.X%. near-term vacancy. A largest minimizing of single-tenant risk fundamental overall just strategy annual top successful lease our combined record rent segment aspect portfolio also to track involves portfolio, includes the of lease our straight-line from limited only tenants XX%

tenant laying income, deck. Our and segment, foundation the the only also of highlighted underscore our approach ensuring of to but which X The each resilience solid not portfolio, base have longevity stability segment and offers for concentration a business future the every we tenants investor among to predictability of risk within model. in mitigating extends diversified and diversity growth. rental quality ensure top our tenants also investment-grade in reliability This our our

multi-tenant new and at the results while a single-tenant spread, XX higher of which quality our Our the consistent experiencing million positive high the showcased even to completed suburban new renewal net demand our in and for The XX rent. we're straight-line million. by segment leasing renewals assets, current X% demand segment adding demonstrating to X% strong mission-critical and nearly The resulting the completed over increased with $XX.X continue leasing in renewals, centers, renewal renewal driving leases straight-line illustrate $X shopping the rates rent spread, net assets our leases leasing environment.

were in quarter that fourth that term in of fourth leases completed a quarter weighted the New XXXX X.X have years, lease a average the XXXX average completed were years. weighted X.X of have the term while of lease renewals of

fourth to combined as pipeline in quarter of that at multi-tenant XX%. leases February occupancy bring 'XX end portfolio portfolio the from with To executed XX% will our of multi-tenant leasing our XX, perspective, in only the tenants, XX%. Our total XXXX, put Burlington, DICK'S represents our relationships of the stands with leases grocery commitment Sporting expanding and The quarter to with straight-line new and our at existing occupancy H-E-B fourth rent GNL's Goods. overall and portfolio, portfolio including XXXX in highlighted renewals XX%

opportunistic to dispositions approach adjusted us with gap pave prudent our sales, we our lease which organically strategy ahead, capital and which net should Chris deleverage lease-up reducing achieving to Looking pivotal to committed financial our call to the We provide enhancing debt balance our believe executing valuation on sheet. of reducing the to results EBITDA growth. the this and over through turn to way in this strategy A contractual involves the around more financial will net Chris? noncore initiatives peers. I'll to walk remain and while component with through objectives, systematic detail. revolve rent NOI

Christopher Masterson

Typically, Mike. would comparisons. financial we year-over-year Thanks, provide

not and recent would the merger meaningful time at However, be given this that internalization.

GNL. comparing forward, year quarters prior we begin full until have QX of internalized a Going XXXX when merged a we'll and to

$XXX.X expense quarter $X.X million an million FFO and loss million. the $X.X or incurred fourth we of share a XXXX, share. was related Core or revenue in $XX.X and $XX.X European QX to to the In per million $X.XX attributable was of AFFO tax million income $X.XX elevated we onetime primarily For $XX.X write-offs and quarter stockholders recorded XXXX, million common per reimbursements. net

will tax income restructure expect reduce beginning the company's We have tax expense XXXX. a European in completed we QX that

be website. always, a measures As the found which our of is our to on income reconciliation in release, net non-GAAP GAAP posted can earnings

does our high the of sustained noting that reduce variable on To this, that the our while XX% portion debt through rate balance rate isn't to move worth is a environment our year. at subject effect to swapped. to temporary we have rates, it's mitigate the Looking debt debt of fixed interest exposure variable or our as current we only sheet, seek

credit properties strategy our XXXX debt XXXX completed a of GNL fourth XXXX debt Nordea facility. and maturities refinancing that extended interest rate. to X.X% maturities address a million on through maturities subsequent the with these the secured in quarter, we to part Bank $XX As agreement multiple has assets at an by availability Finland to and the of plan address dispositions, to refinancing debt remaining

the present maturities to these our that maturities half continue more debt assets. will XXXX XXXX XXXX, remain beyond environment We address we of for refinance ability confident anticipate but in favorable a will second to the and

X.Xx. million XXXX to minimal due have Our debt liquidity $XXX a quarter adjusted the end X.X% capacity and with average debt weighted net was of facility. EBITDA $X.X the net maturity with billion weighted We quarter of at of ratio interest $XXX.X approximately of was at and million ended average maturity credit the fourth debt of in the years The XXXX. X.X on rate

multicurrency senior Our gross billion comprises revolving in notes, the debt credit facility $X.X $X of billion and billion outstanding mortgage $X.X on debt.

interest debt interest coverage XX% includes was floating Our with and our fixed ratio rate, which rate swaps was debt X.Xx. in-place rate

fourth outstanding. XXX.X shares the As weighted On approximately approximately of XX, XXXX. million XXXX, there million shares average a common had basis, during are of quarter outstanding December we XXX.X

objective our X.Xx. like a guidance to financial Lastly, and remarks. reflects to And some XXXX these X% our transparency X%. I'll it share back projected would sales, enhanced of initial of come cap cash range the we will to earlier XXXX per million in majority range turn call between to for the is with where mentioned guidance our adjusted opportunistic to projections. of a regarding AFFO Mike X.Xx an rate dispositions investors $X.XX will debt million. we occupied from introduce be guidance today our initial now with that to EBITDA The $X.XX, $XXX achieving net anticipate dispositions to closing assumption and range goals of therefore, The provide and $XXX

Edward Weil

Thanks, Chris.

in Nelson, his and time for Before retirement. We great I'd work like we of He's all to wishes enjoyable on take achievements And XXXX. Jim the I express for his well-deserved best contributions and throughout of a at gratitude extend Co-CEO and pride conclude, to GNL at my the company. hard President company, the friend during and our GNL entire our behalf of partner. a great

the we as to strongly remain that and global with internalization behind believe want that ourselves an a We the With merger on diversified reiterate us, investment-grade and positioning leader focused industry we portfolio. reducing to lower balance future for sheet of through to our strategic noncore we path leverage best forward position GNL company cost for growth. and enhance as capital our dispositions the is to aim

by reduce to increase dividend amount the annualized $XX further million reduction planned to expected of cash Our is leverage.

a rate proof of assumed assets cap with will our of of provide Additionally, at current disposing investment investors premium to portfolio. leading value our implied grade-worthy

range AFFO will with As goal high strategic if the approach, the to designed decrease we these future adjusted per maximizes applying we've per the $XX that value. aligns be XXx sector expectation the to a trading with exceeds GNL initiatives our and position By AFFO multiple success turn. $XX taken share, our shareholder debt of share discount, stock a that XXx price we to will reasonable net and conservative approximately at per This implied is end full our outlook to earnings narrowing achievable for EBITDA our strategy a trade guidance, believe X for deleveraging the of multiple. share neutral, by

we're you available As may have please this questions. line any the answer on the to quarter questions call. Operator, after for open always,

Operator

Instructions] Capital first Markets. from [Operator today And BMO from our John comes question Kim

John Kim

have as well from guidance I dispositions wanted realize retail higher high included to interest moving rates. some year, I that of been your realize expect it the year. AFFO synergies potentially about I thought multi-tenant for you some portfolio there's as lot a parts But items. this you to of and lower this occupancy G&A ask if and onetime would

to are growth. potential what see So that offsetting other I wanted parts just

Edward Weil

a $X.XX to regarding on reduction. today, what but now guidance know kind Well, thanks, We've John. conservative about. based -- on dispositions the the is based common you've we that of range things talked $X.XX about, rate taken the believe is view, I that we view what all the in that a interest occupancy, Yes. cetera, talked The et a

rates positive where the I not it's 'XX. we frequency environment or we unknown. able environmental we will of and being lot build will if in guidance, conservative, not accurate, this end requires clear our to overly very are to important. and size that deeper is interest the it will they is guidance, coming, change of issuer was guidance economic what expectation we're and we execute cuts. year We're a an first-time And around does sure execute to very I'm later in of with there be, on think a more didn't we want But and year, but the many can. anticipation if believe 'XX, the in when be what we them to the revise And us we're of think This on.

John Kim

Okay. rate And a with on assets? those the then specifically like could dispositions, on provide mortgage nonincome-producing how including And debt associated if you is much cap assets. maybe the blended dispositions,

Edward Weil

Well, always nonrenewal as because in the XX% NOI. of, a that's small on those portion the Again, XX% these the on this assets, in that dispose whether whatever to our had Hard has of look of they portfolio of generate assets is a a be. dispositions. The nonincome-producing we to to range. rate or assets may to case on of $XXX a cap kind it's put portfolio what don't million looking $XXX part we're leverage the typical million, at small

as will paydown that achieve these So leverage dispositions. we be the

John Kim

your is do down, program. proceeds. likely reduce your share get you question leverage you final repurchase realize I of most to my use near debt And Okay. but term, on want a have

rate. north does implied back far proceeds? sit use potential as XX% cap of trading as is buying stock shares Your Where of

Edward Weil

Yes.

guidance. think these take is included range. our that on and consideration. is a and not available stock talked something But XXXX we us share based Board is opportunity initial net guidance down As EBITDA can the into we've released per in have buyback for that that to the XXXX to we've something we as It guidance, about, cap dispositions a guidance, hit initial debt to great company AFFO rates and bring announcement

Operator

comes B. question Maher from Riley. next from Our Bryan

Bryan Maher

this for Just morning. a couple me

to longer On comfortable to X.X if do to? the where is to And guidance initial leverage, the down just want Or you're of that you not, ultimately goal? X.Xx, getting where staying for XXXX be get going is that year-end to term? kind

Edward Weil

ultimately is adjusted out. not Yes, a that the drive XXXX Bryan. you net X.X to point to as target, debt Thanks, to is we EBITDA. X.X in That intend year-end guidance where

bit to a before, very through debt As that the but in I've it I've range. thinking of doing to dispositions. a past said process, little about that And be longer it's Xx, in the clear we path that should the EBITDA net wanted make initial of ultimate spoken X.Xx

Bryan Maher

the then Okay. payout you're ratio new we look the I $X.XX. at dividend, think And when at on

Let's kind $X.XX, your that of about or take ratio. Or midpoint an where is we so hang should it's that? to the initial salvo and go of out? it take Board the XX% an a just give X%? than guidance, lower Is bit wants want little you that just think Or XX%, about payout to

Edward Weil

is to is think trade in believe reason where XX% will I this remember, Today's level. investment we you there XX% to is And if payout the any especially XX% ratio that don't this announcement at expect portfolio is this $X.XX of -- grade. another announcement XXXX. portfolio

than in of others So higher our is and high sector. earnings the quite quality

very are So comfortable. we

is nearly portfolio at The rent We XXX% are well. performing really collection.

be. we So the to intend does range like where XX% feel to XX%

Bryan Maher

XX% in the us to just little Outlook going type day last estate meaningfully more dispositions its Have a give so. color the any or given uniqueness rates that exposure me. with out, a for What's track in, European GNL is Europe. in strokes? cap I Just us for real you quarters? on of And that Europe. there? over its really And to bit increased call that's of dropped what's this on unique over given X past about Okay. can broad that, going with day X on down But and merger on market? most know don't to bit

Edward Weil

Yes.

brush. painted obviously, a So be can't in single Europe

been names consist a tends Europe Western part have think and market, the stable Europe similar we European the the tenant XX% the there, traits typically especially about European focused of that always of exposure. that U.S. market, have on So to when has to you

to focus disposition are remains our indications. reiterate, It's of the to just Europe the for is bit in more in of discuss on some strong. Europe, attractive than acquisitions. U.S. Cost in still the market little of actually targets parts Europe detail. But I strong we in very our debt a in buying and dispositions, getting a the bit active are on So not in is little 'XX, early And want

to few and relationships So on million brokers And long disclosed near-term assets of we $XXX local the have engaged with them in market and maybe our on as we are really meet think noncore active. nonstrategic that retail the any and we $XXX have a the office that assets, criteria is does dispositions. focus and million some Europe

Operator

Our Markets. Thomas from from Todd KeyBanc next comes Capital question

Todd Thomas

to a help just I a provide $X.XX. of us help the you about understand anticipating was $X.XX it than lower like seemed announced. current and wanted of you what $X.XX moving run to to to couple quarter understand rate loosely $X.XX discussed was Can relative quarters the It's when merger us AFFO quarterly pieces to ago? were guidance bridge the that, some just initially circle per back AFFO the to

Edward Weil

biggest per Yes. Thank interest expense, you, now and $X the merger up to announced quarter. it's when change was Todd. from million is The about

in. it We figured have that calculated in,

the into that the we pay that benefit disposition of earnings. of drive debt goals One and strategy down and able of -- is those that be guidance to will some drive

Chris And about a in As can also, team, was far this have detail, team that talked as the talk and European tax immediate will in benefit was the the some addressed structure tax fourth completed quarter about year-end there as little in a have restructuring Chris bit and and Chris quarter. the movement but we charge. more have with first in and European that

But biggest as the we're is far quarter, as merger fourth in items. interest I some and biggest the the think change. the of X XXXX year completion are I'll call just probably in It viewing -- what was cleanup. those activity of full way the the also guidance, So expense

Todd Thomas

I with but for on it be discuss the that to Chris, little you've you a bit. Okay. synergies guess track maybe expense are up. you straight-line mean around at I additional to the embedded cash expense interest NOI that's the is the any sounds for rent able mean guidance seem of provide like I ranges cash discussed, guidance? either to or just the further previously sort year-end G&A interest or in

Christopher Masterson

Sure. of first in to I just guess start terms the synergies.

you fully synergies. reach the target overall $XX to As in that terms million the exceed and we're on mentioned, of even

the the be NOI. just push overall quarter. go-forward, cleanup For cash of fourth not there $X in the and help as will NOI, first the to terms then mention coming expect to the quarter, that impacted of properties and I do was said, of be of to the we And negatively quarter in in, were obviously which up about in leasing items in want million sort fourth Mike type multi-tenant

Todd Thomas

investments recycling in dividend the earnings Is 'XX? then All Okay. all a is the single-digit, In And on deals curious with right. low additional here double-digit high the of at from you've proceeds reduction all in dispositions, are any from new the I'm the consideration there all or if at in but past, the consideration. focus to just dispositions at investments going curious found -- yield. some obviously, at either retained

Edward Weil

the a net is the cost capital of really and cost thing potential and this able focused think But look to ability and committed of dispositions And that XXXX is we we EBITDA, types to -- do to forward the more to generate. that. the trading at capital will acquisitions. focus understand the we EBITDA, and right improving debt our But net in as we so reasonable to important the now, company. most do And lowering take to then of future it. XXXX are our of acquisitions the drive on place, have could Todd, we been advantage plan where is of that we've I we we I lower can and results that always of that to look debt multiple those think really

Todd Thomas

which just I if lastly, a the and just to you the Board's to decision little And improve payout sort at capital. the there to at I'm all consideration Can XX% and to further, decision the curious that help range your Okay. it reduction. further talk consideration? of capital, even could, bit reduce talk reduce just could a reset dividend cost leverage about that of on $X.XX? Was reset retain more whether any about was

Edward Weil

disclose Dividend let me Well, understand. is I cut. of tough top can too a decision about -- restart nobody know discussion, around Board I an as can't really But you the importance And policy that. the much understand and dividend a making priority. announcement we

about us million is shareholders looks as for existing point shareholders earnings, $XX it's understand that, for as this It's that additional you is they retained REIT. of ratio think the payout we it's which new something place important justified. think this XX% debt. conversation pay portfolio, know, an low with cut, I we based cetera, of et this look plan. this running Board, appreciate good and come analysis for really the a out. the that think And also said, to great aspect, ability as I appreciate. on that And is the quality a undertook And meaningful. is the deep entry down of can percentage, but XXXX, to we And XXXX that Again, and a gives dividend the nobody it we I at a investment-grade

Operator

comes question BTIG. from Michael next Our from Gorman

Michael Gorman

point XXXX what bit looking NOI there down kind of occupancy the about through number? do you expectations XXX trending of looks in portfolio tick in multi-tenant NOI drove the that guidance If could a presentations, how that kind like of to see more a like portfolio into was back Just what's for some rate? you I the that? the of over run talk quarter-over-quarter. in then Maybe baked And -- basis course the XX go Todd's initial about question, just the baseline and little the it can

Edward Weil

Yes.

all, we and in So biggest what multi-tenant do uptick question. first short most every short-term for timing. the driver hi, of as from retail of by of was we third mean And quarter, year the leasing. just as The that term I an Michael. that, Thanks seasonal operators do had

we whether involved backfill quarter. a Some it's a the bit just of of is first are timing, leasing fourth quarter in or that little

trend. see activity So strong. I indication The it as any of been any don't has pipeline

more tenants at in the portfolio. regional with The the relationships anchor is is drives or tenants and increasing, national stable Our which our expanding. centers the occupancy very backfill in-line

the that positive multi-tenant multi-tenant is portfolio. just keep overall mind are to fill what The XX%, So XX% very is and see continue portfolio in very only about front, stable. and grow. And like the to overall things of on I'd you'll at

X%. You spreads the renewal saw averaged

So And and to paying real renew, is to a is to as stay, well. desirable paying very which those see estate expect positive results always we continue the sign. tenants are again, will to

Michael Gorman

Okay.

that plus So in for multi-tenant? you're and pipeline seeing the number lease of kind positive the momentum above beyond that's presentation

Edward Weil

Yes.

we about in engaged completely. regional managers multi-tenant As XXX There's are structured, the portfolio that multi-tenant the have X properties is asset portfolio.

relationships They're roughly in XX Burlington, companies Maxx, renewals, about XX like have Sporting properties responsible they're early. DICK'S with to they expanding the So that months market. cetera. They're et typically their XX Goods, national all T.J. talking for. great They're

not are pipeline our in pretty are published we've what but along, that executed. Now deals far yet

But to slice that leases and we our we're it putting drive to a the yes, LOI, of will continue there's pretty much higher. are numbers. comfortable and negotiated pipeline XX% fully So there so it's and up portfolio behind overall XX% very sheet term a that, in the moved more

Michael Gorman

noncore of property on million, there of you helpful. that among And you sense maybe disconnect you lease went be on is maybe those that the where thought maturities is and the obviously, through that the where noncore? focus sell above That's think debt you and for additional little you make kind think and the there's a the makes could more certain then million kind proceeds public consideration asset potential management maybe how Was it? would all and term valuing types analysis color And Can beyond? about lot give the how assets? breaks that some the sales. portfolio bit between a $XXX down Or $XXX it Okay. of shorter how meaningful any then the asset of there in a Obviously, types or sense. different to the team

Edward Weil

the I And $XXX is time of fact year that given million Michael, full $XXX guidance. we've that to want first to year full first, million the this respect that we've identified Well, dispositions. guidance, in

going out, to So to because We're about, we're to the to, cetera. to more AFFO don't talking this on company there's advantage beyond point I'll is drive continue going et a start take we always this the meaningful. going But X, said big and that's going full year, oh, of We're and achieve. buy-sell I the plan. what that achieve thing portfolio and life will benefit. One day arbitrage but XXXX, small, it's we're execute to and want evaluate relatively in there's we our it's

portfolio, rate. typically and Truist are us. branches average So buyers. cap Bank individuals, buyers an local far the types from the that sold working of got in are local them million We've the assets these strategy, things at brokers we we for sold this $XX Those X.X% cash of disposition XXXX

We of of estate own are real taking type to that's that spreads. market. desire that we're that And have to how really going take in individuals those advantage local their of advantage

we out the made at asset the part may last we a very focused to and decisions that The did assets. portfolio. rates remaining anticipating want the we're makes value don't it disposition what tenant this not to to really of market to also to a of bellwether, plans look good in really disposing And too is we're that had about other continue dispose information. My speaks some because certain years, be we we much if cap on just will public point now on talk for to I about we have put lease from continues But it to primarily think office harder those X overdisclose but assets time of excited very of their we've of disclose. the the assets. industrial X.X% such that's an average term retail but conversations and to that dispose early things ready about about are be branches. There been cap on with we're quite long-term bank is rates yet, the

Michael Gorman

I'm then a And and last just just maybe Okay. I guess, curious. one, Chris, mechanical one, maybe.

takes in $XX net the the what but in with kind look assets But like went curious through looks about just asset ultimately $XX million I like the in and sales, quarter. you debt fourth debt So the higher? million moving there -- I'm quarter it the when are about the sub, of with sold by up aggregate. puts in And

Christopher Masterson

pay funding net the also sales, There And fourth CMBS some the the in portion with think increased probably that period quarter the in during of what was of key early did So the debt for quarter. down debt. draw a a the is I really outstanding we purposes.

Michael Gorman

Yes. Okay.

maybe yet, we just because still up follow there with can the and that not takes. I'm So quite offline puts

Edward Weil

Michael. Thanks,

Operator

our Mitch question Citizens from gentlemen, today final and from comes JMP. Germain Ladies

Mitch Germain

some really but make well off that still progress year, to on you're you're planning like seems it Michael, deleveraging goals. good this your

be of we Is the think multiyear So should this we this? that the a kind about plan? do will way like start consider of what

Edward Weil

fair. think that's I

Mitch Germain

some as So portfolio, that consider methods going is the you'll be to more consider identify year? you're assets do to are go organic to approach do Or there you to you of through going something this kind deleveraging to XXXX? kind next of as sell,

Edward Weil

I Mitch, Well, question, appreciate a great it's and it.

We've on talk February quite thoughts dispositions the put to work As and of ahead and to really XXXX. I'm good debt we've obviously, with not end our -- EBITDA. at for the guidance of out about of XXXX, lowering what net ready got

of expect end drive and based is is lowering net and Organic levers the is before great, hope are As more XXXX dispositions execution. we us our to excited the -- that going what of into watch our about. a really and goals one have that's continue we're will we've And we and disclosed to is our for capital performance on better EBITDA, available of on execute several than debt and guidance. can you XXXX, there great, to dispositions cost to that that know, what

Mitch Germain

helpful. Okay. That's super

from credit portion of it's large debt? can't that? I or a too the of hedges is swaps prevent there Is there to redeem? touched is you or any about should of portion it? could expensive that redeeming facility, small think Is right it? now Chris, be just On that it How anything some a that that there

Christopher Masterson

portion that's of us it There restricted point. is at no this from

Mitch Germain

guys Great. percentage your feet that good portion terms I'm about And consideration And guess on ability last leasing then you pipeline. you've just the of I in of curious that, the the curious -- appreciate in last discussion. guys been color is terms terms sector guess, of seeing Okay. multi-tenant, on your over sector. the in question today? I of got seeing you I have -- for know that that conversion a What have in under sort you got the me. giving by have you've I that's been square in XXX,XXX some guys or still been state of, of What to couple quarters? this of convert I'm

Edward Weil

Mitch, our to And what percentage asking you're conversion sure understand in question, your going pipeline, make is I I execute of just our so when it? it's

Mitch Germain

Exactly.

you got So yes. --

that you're your expected, already pipeline. at then been some that that slide on is completed, some looking calling obviously, I'm of and your if some the multi-tenant, of So has of

kind between understand So over of I'm expected conversion to your have last witnessing the been I pipeline, that of quarters? of your and how just trying couple you guess

Edward Weil

Well, you. right. That's All thank a great question.

disclosure put many XXX% when it for near been pipeline. We or public as we at have, quarters, in

are yet As executed and very that is far tenant maybe that LOI. fully there There is form, that at negotiations but along, is an negotiated I not a forward. lease said a engaged are moving those lease are earlier,

we're -- very confident are in. numbers those very So

Operator

to remarks. that, And we'll back today's concluding be I'd floor turn and over closing management to with session. ladies the question-and-answer gentlemen, like for any

Edward Weil

a there add? before to that like you'd of anything closing with I remarks, couple end Great. Well, Jim, is

James Nelson

to Yes, I years. continued been of pleasure and you be It's interfacing company. a just mean this it's of there's rest and great years, great X in joining very the all a on very and your want us last to with we been with everybody for great and for the thank call. thank you team, my the Yes. lot a want for X think pleased I support leaving And things capable the almost it's the I'm with Chris of come. team. hands I firm Mike to to

So thank you.

Edward Weil

morning. to Lease Global we Great. one capable The The you, enhancement Michael a to speaking be want to commercial been to been pleased Monahan, I a up. Net Well, and very chance in hope the has very I CB and and on an that director. Jim. qualified doing announcement this came you, this thank their everybody career release by very wrap just the great it's at estate. today. press this out Board And with long successful of appreciate we joins Board behalf expanded get strong work, Chairman were see a And already Ellis, had real Vice Board here, everybody and has able board. to Richard out

have. you So to you that follow-up Please discuss to questions further. we and any time, for thank look always all may we your forward happy we reach hearing out, are and

all much. very thank you So

Operator

today's joining. Ladies thank presentation. conference call conclude we'll and and We that, gentlemen, for with you

your now lines. disconnect may You

Global Net Lease (GNL) 28 Feb 242023 Q4 Earnings call transcript