GNL - Earnings call transcript Q3 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, good morning, and welcome to the Global Net Lease, Inc.

Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jordyn Schoenfeld. Please go ahead, sir.

Jordyn Schoenfeld

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

GNL's actual materially following Joining Please Michael the Act Executive Masterson, of Weil, today meaning forward-looking and various GNL's Financial end forward-looking me on Securities Chief Officer; quarter third the of the our XXXX. and release Litigation statements contains during review forward-looking today. cautionary information for call Private is Chief the within Officer. The Reform our differ the XXXX that factors results statements made cause could of from statement section to earnings call at Chris

GNL update stated our forward-looking as these As intent law. or except disclaims or SEC revise obligation to filings, statements, in by any required

adjusted in measures debt earnings in to of will we on results our discuss measures, as use evaluating we in the quarter financial quarterly AFFO with those Form release Descriptions XXXX. in useful we are accordance as our net call, believe be company's and third financial non-GAAP report which financial these detailed the performance. our such and to for GAAP non-GAAP of XX-Q certain today's on EBITDA, and that reconciliations can measures Also reported

our I'll Mike? now CEO, over turn the call to Weil. Michael

Edward Weil

balance remain strategic all our and Thanks, internalization leverage and and of been you Good to since Jordyn. increasing synergies, to sheet. dispositions reducing morning, today. the completed and this while occupancy you. executing originally the merger communicated GNL. we for It's we time, us joining committed thank executing strategy derisking over Capturing throughout successfully X we year And

achievements this again through highlighted once results. this Our progress in has been reflected year quarter's with clearly significant

to our synergy to projected $XX that full cost XXXX stated million report of million pleased we target QX by capture pillar by in the XXXX. significantly have our was I'm first positive impact exceeded not This execute The cost synergies $XX ability strategy also but to on our of underscores continuing on has annual our of recurring our the only million projections. a in a and savings. effectiveness G&A, synergy $XX accomplishment total efforts reaching integration

the and reduced million, The strategy adjusted successfully additional We're with debt stands debt second EBITDA our million pillar proceeds XXXX, adjusted remain our earmarked reduction. outstanding encouraged by further reducing have EBITDA. anticipate the our primarily net $XXX to down net in further We net for to at net our debt reduction ratio XXXX, At an In million end progress to we with XXXX. of start of closing debt through $XXX improving of our is asset debt QX, X.Xx at including and X.Xx, in completed dispositions from $XXX leverage. net QX dispositions. of reducing leverage committed

increased to with our range $XXX of The an third is initiative, $XXX disposition up our million pillar XXXX of million. in asset $XXX $XXX million the closed initial of to dispositions, million strategy target from

assets, cap $XXX a cash an assets at dispositions occupied closed with a As as at cap This dispositions of of X, rate on of on remaining dispositions at end cash in X.X% rate executed occupied dispositions $XXX at cash pipeline assets. of position million cap cap PSA X.X% reach a we a X.X% target lease high and successfully under believe LOIs average rate of of from million of on rate years. our plus to X.X totaled assets. currently $XXX occupied occupied our closed in excellent weighted the term with we're million $XXX the in of cash includes value on November million X.X%

compared past million disposition interest per initiative, the consistent this end We an share X our in execution of relatively strategy. through has having sold implemented when November this strong achieved increase our expense through highlight AFFO we mainly X, remained to the XXXX like assets dispositions, tied the $XXX to incremental quarters, by investment-grade over the I'd with reduction demonstrates of of rate and achieved value to initiatives compared diversified X.X% lease-up debt merger significant and from We cap current NOI cash savings occupied representing realized implied and generated rate. cap internalization. dispositions believe closed a premium from our to the GNL's G&A the primarily portfolio savings and

highest earnings on disposition our component As selling our discussed which held corporate incur call, of and on last prepayment credit no penalties. assets is prioritizing the quarter's key interest strategy costs facility, a

familiar, for Another a pool ability financing gives is re-lease a Master with our Master more traditionally substitute GNL provide financings. who collateral other to Trust flexibility that aren't than the allows significant advantage for found what the of or tool assets, types those context provides ABS flexible is To some in which GNL Trust. with

potential we the dispose As basis rate X.X% U.S. flexibility credit on our from us revolving our that them and on of interest assets This our on currently assets. sit we portion. as XXX of rate capital a of carries focusing ABS, dispose floating X.X% continue interest over the we savings continue to generates currently assets of dollar with allows rate reducing to interest replaced points which cost facility,

to overall evidenced earnings. Our investment also last grade of portfolio well of as with dispositions tenants basis our This point benefit in as These the investment reduction strategic or grade leverage. the XXX our quality XX% a a quarter, increase grade in in sales. rising noncore and contributing dispositions the to strengthening by portfolio, those to of investment predictability reinforces while implied assets GNL XX%, since further enhance from portfolio, are quality term on shorter average weighted focused remaining compared opportunistic average our lease and as tenants

X were the and at value asset into property shopping Plant rating. Center include parcels, $XX Truist, subdividing Shopping Jose, remaining a secure separate properties San totaling sales X.X% premium broadened and lease cap the single-tenant multi-tenant featuring to in the parcel, $XX leased enhanced X created which net XX with an Notable approximately cash pool of Center We rate the the strategically the Shopping the over California, AX of to million a credit with center million. to for the that tenant retail by the Plant lease, sale of on an investment-grade We increase newly allowed property. X Depot, Home Its portion attractive of for every rental years. years lease an pricing ownership XX.X% is retained the single-tenant which buyer us

office on XX% office Our initiative straight-line fall has quarter, exposure. also below sector our disposition our of to projected total focused rent. we portfolio Last exposure reducing

several and occupancy to notable XXX,XXX office sale through vacancy U.K. sold Wheeler over the We Foster significant vacant also these office property exposure X term. own mitigating expired million. reduced office while the property for our lease was in the Most lease tenant's after nearly as the throughout quarter, XXX% just for foot XX%, This vacant among it risk $XX portfolio we of sales, square collecting of rent the increasing overall this levels. successfully and the years

Additionally, value cash at over Spain the the these X.X% Epredia and office the we Michigan over million, office we properties, portfolio $XX significant Texas X create. cap property for over fully sold can assets Johnson for in Kedrion our X office mission-critical occupied $X office Plasma for Controls highlighting in and $X in million We sold of million. rate, demonstrating successfully quality a

the We KPN to set the Netherlands, lease upon the have office which close property forward is December in an expiration. also reached of XXXX, agreement in a tenant's sale on

portfolio We've tenant's enhancing reducing sale limited exposure exemplifies lease rents and structured the long-term value further office this all to GNL strategy had to the term intentions. visibility returns. extracting throughout our collect and This on renewal commitment while

dispositions property transactions sales, in expenses these under are Beyond over or we to of pending the office eliminate have $XXX vacant expected million that annualized operating over agreement $X close. closed million assuming

in QX, of also our occupancy rates continue demand. not to tenant new solidifies is leasing revenue as quarters resilience we raised with a portfolio and efficiency increasing reflecting attractive centered of XX% enhances growth from XXXX, pillar This of sustained strategy positioning our and Throughout XX% meet on strong the us as on base consistently only of to occupancy first in-house fourth the portfolio, management our our The but of renewals. QX asset achievement we X strength team. for the focus

spreads On expiring renewal X.X positive X.X% than rents. spreads over were that the higher leasing an with square feet leasing front, attractive we encompassing million achieved

of that completed that X.X leases by businesses were impact renewals XXX,XXX were that the remains a a have in completed material a retail We renewal in on period term completed in which Spirit of to XX% multi-tenant in prime a the Halloween resulting segment leases square while renewals, locations. years. leases find and New segment new as highlighted compete we quarter weighted and feet, of weighted third overall spread. not XXXX during have totaling X.X% spread. rising high the for lease approximately average occupancy. rental X renewals, completed I'd like a executed single-tenant have demand new X highlight years, does leases XX our space demand this lease X.X The term short-term average resulting portfolio for QX, in Notably, renewal rates

reductions million that our the credit and XXX% have maturities through to of proactively from the million XXXX. derisking maturities. or balance proactively onto This we successfully anticipate through was XXXX to we pipeline. We're emphasizes sheet in further year, debt July currently dispositions strategy fifth by addressed pleased The debt year-end facility, of complete final in as XXXX to dispositions XXXX reduced balance and by of managing have no refinancing $XXX pillar debt our scheduled we've and $XXX mature our revolving maturity our near-term

composition over years. well is spanning average over of term to given At portfolio. GNL external of tenant across we believe positioned owned geography, square lease unmatched Turning macro asset of challenges continue lease navigate We a to quarter, our net believe type, properties, and the the we X.X to is XX our X,XXX and portfolio, remaining which industry. third diverse the million end weighted feet

across Helene recently that and severely As several devastation caused you're cities aware, Milton the all Hurricane U.S. impacted

prior portfolio Our Carolina, sustained X,XXX experienced as the are clearing storm that storms, drains, Europe, storms. We're impact. measures thoughts of affected in to damage. properties resulting our costs retention one our located minimal the palm the expected inspecting tree and and are With maintenance. United out-of-pocket that over our no located any only precautionary with extensive insurance, properties fortunate expenses. implemented to roofs our covered we're notable material Thanks Repair those be North in in Asheville, to fortunate across ponds, maintaining such States portfolio by by

only portfolio basis. our and all in tenants exposure top straight-line X% geography, to ability and to impressive diversification tenant for underwriting. and of Our types, than single to accounts industries No limit asset testament a their is high-risk rent. We tenants and operations portfolio's credit tenants total XX% our a more monitor of total contribute straight-line business rent, regular our collectively XX on carefully

X.X%, have which can our earned be implied of of The Geographically, is everyone of leases linked and rental XX% to with an portfolio XX% industry-leading a website. stable CTI annual XX% quality details high features presentation earnings at an excludes our tenants XXXX increases. encourage significantly average each rental contractual of tenant XX% investment-grade in receiving impact straight-line segment investment-grade found on a rent or I of of our Europe. North in in of experienced with QX the higher which features investor the increase of portfolio portfolio an and The the rating. portfolio, America that historically look base our

without out share, on our to approach initiatives growth. in We're of contractual per negatively leverage XXXX. building to remain organically strategic rent look and achieve QX by on committed forward through executing our reducing AFFO impacting financial XXXX increasing momentum disciplined proud this and NOI close to achievements our lease-up and and to objectives, particularly We

over Chris Chris? I'll in sheet call to and detail. to through turn results financial the more balance the walk matters

Christopher Masterson

found that, release, income earnings Mike. GAAP to our which is reconciliation be measures website. in Thanks, posted can Please always, on note of a as non-GAAP our net

in in million third to million loss $X.XX share we and million, $XX $XX recorded the XXXX, AFFO of compared third net $XXX For the of and QX quarter respectively, XXXX. or million QX or compared to common share million a $XXX per XXXX quarter $XX to million was in $X.XX stockholders attributable revenue $XX XXXX. of per

of our end QX, sheet. end at $XXX the outstanding by debt the Looking The balance million from $X balance was QX. down of billion at

the on in revolving the billion $X.X outstanding the of Our of notes, billion of no billion year. $X multicurrency debt debt with maturities mortgage and gross facility is comprised $X.X credit remainder for senior

As with debt up of floating of XX% rate QX 'XX, reflecting our from XX% QX in in-place rate XXXX, fixed, is swaps. interest debt

debt We to currently X.Xx. pipeline. At ratio Our the our in end on third net FX $XXX adjusted million our stood weighted in balance X.X% the our to was further $X.X average quarter, ratio temporary dispositions outstanding interest a reduce pound was due rate prior as net we and debt At intend billion, increase the on of interest in the our at quarter. to coverage Xx quarter end, million of of from EBITDA the of based strengthening decrease debt $XX to total led debt the a movements Europe. sharp close

have close, the weakened debt negative FX rapidly part impact our on both currencies Following of quarter levels. reversing QX

September As we approximately and of facility. XX, capacity million of liquidity our revolving $XXX $XXX have on of million credit

outstanding Additionally, shares had outstanding weighted approximately and we million shares on average XXX.X basis. approximately million $XXX.X common a

X.Xx. to share to EBITDA to range are remainder Based of on Turning to guidance and our net adjusted date, $X.XX debt XXXX. the our progress outlook of to of range AFFO for $X.XX X.Xx we per reaffirming a

of also proceeds. in million Mike mentioned, are we initiative our $XXX to disposition million As range $XXX reaffirming total

the I'll remarks. Mike for call back to now closing some turn

Edward Weil

Chris. Thanks,

maintained XX% totaling million increased XXXX million. was portfolio, our closed by third effectively $XXX our achieving this of in high of key for from with plus our as objectives, net and pipeline by quarter to our dispositions the QX reducing along $XXX period also Underscoring of in to GNL end further million with X.X% the spread reflected XX% quarter, The successful continue $XX a strength $XX portfolio. $XX we cost the million surpassing leasing synergy disposition a million, occupancy of debt X renewal initiative execute momentum across positive we target strong

per a We're to reducing to cost in our basis, strategy GNL manage consistent meet on We successfully capital is Additionally, The of maturities, look disposition year resulting by as to during near-term out balance primary We're growth-oriented share enabling of improve we July debt the of which strategy value. and executing our to $XXX in forward all our this of generate an lower shareholder no continuing help AFFO until XXXX, the minimal maturities reflected XXXX of quarter strong pursue in our no to resulting long-term positive debt the adjusted while to third EBITDA, its in commitment quarter-over-quarter. future. maturity accomplishments earnings-neutral proud the disposition our and net impact proactively on performance to closing XXXX, our focus efforts continue debt sustainable million. momentum.

into of owned a Abu Holdings, like also it announced I'd XXX% to nonbinding agreement highlight business CYVN McLaren's to a subsequent development, Dhabi, recently by the acquire entered Automotive has government of Mumtalakat. from

CPI Global Abu includes which in of S&P a rating managing annual tied holding government of bring trillion McLaren, the GNL's Dhabi transaction With years to AA to collar X%. cap largest investment-grade remaining McLaren's credit has and of enhancement this one $X.X from potentially tenants. a lease, rental significant assets, approximately a and with of escalations X.XX% would XX

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

Operator

from comes Capital from BMO Markets. line question of The first Instructions] the Kim [Operator John

John Kim

of you comment Can Netherlands assets how additional you building? the and with the some on empty to have value vacating. tenant or you plan with office the do the buyer about in on I letter just to maybe assets they office provide wanted the Michael, the and intent what ask color

Edward Weil

Yes.

and I So garbled, anything, line I If think apologize. bit everything. I but your I is miss got little -- a

described. see the occupied currently developer is buyer repositioning property as as use that a expires the the So lease The asset. an in XXXX, opportunity is we office and is they

course, they approvals, stated, with XXXX. et we we be runs can have They, have through that cetera. permitting, that work a of As lease doing

begin to the John, changed if into the but have the they time rent which is is repositioned the work And multifamily sale will the reposition being remember do through that of collect to at use. mixed and complete or into don't asset. an from are to use office the will entered arrangement we lease, full continue it's going I that with end it tenant's the we they we them So being

John Kim

renew. in expirations assets and of in as lease is future the strategy those portfolio? some kind your cases, this office with So How tenant in occur replicable doesn't

Edward Weil

We've basis. case-by-case a it It's before. done

If this We you they had did quarters office we in did expired a remember, Jose, asset Wheeler. something at quarter the where Foster San of ago, similar. we when tenant an and couple something

tenant, we they early strategically. something great look the have we to case-by-case we make that, won't basis. and the potential And that So If it's on agree work. that with at a with we engage always a It a buyer will We condition. pool. it take kind of just doesn't buyer

John Kim

continuing few pick portfolio that portfolio. Is spreads your multi-tenant to like retail overall last been On single over the side. assets... [Technical that multi-tenants seems Okay. have the the up It Difficulty] and tenant the on renewal in lease the higher you're occupancy because years, of versus the

Operator

to John. interrupt John, sorry I'm you,

in Your audio is coming clear. not

Edward Weil

you Do to in, take... back we'll dial want and John,

Operator

We KeyBanc line move the Rana on from is to our Capital next question, Markets. of which Upal from

Upal Rana

My is strategic higher around any a Or noncore assets little concentration there of? of needle? your plan Are with to WALT really the WALT vacant you there dispose that can a the you here? large move have get properties Do WALT. question are enough lower to

Edward Weil

than you getting nature our we of very what we're and dispositions back what we've complete that vacant focus which the strategic be very the continue acquisitions. been extending because will QX, WALT closely. if lease-up the that strategy. WALT focused is selling and assets at fact But I the are something ultimately, been renewals, extend we're There think what after deleveraging on, forward our go has organically our But each we ongoing part reduced look of to of strategy in the It quarter. to to WALT WALT that through shorter disposition looking some on are keeping. we're more has

hold of I the to what debt. meantime, in think in secure pattern, as focus successful the pretty we're reduction of a allowing on would us So

Upal Rana

remains Okay. year the than the less decision kind X there Got to go. to guidance, the end it. us gets end somewhat low then high wide on months AFFO to kind range? of narrow. or the what with full And And of your not it driving of Anything

Edward Weil

our We I cap and we've The had last dispositions, think average increased the quarter, the that of quarter, the able to it. We've if last initiative that that to you was success disposition we take X.X%. X.X%. momentum guidance, disposition velocity. the achieved the in initial rates we've the were into account raised rate cap and lower

as that We're expect be -- the to I I'm explain debt. you increase want it. how thinking would reduction tested So did, of -- to just on more

Of course, is to very important AFFO us.

Our look ability that wanted think to maintained range dispositions we which expedite we I can why speed at view the dispositions, AFFO at continue did. window, year consensus, you provide we will we push we increase But range, -- and and delever, we're clear AFFO the that's that for the that and as so your guidance to maintaining well. as has will a next everybody XXXX we

Upal Rana

me. it. disposition current associated then year? How That Okay. properties much help 'XX your properties. at debt debt one that the was helpful. just looking closed would your maturities, which pipeline When of XXX encumbered those for next maturities about associated reduce yet is that's Got And to last hasn't

Edward Weil

Yes.

not we time. the dispositions helpful disclose not that's general ahead detail we a It's as approach and So market. that of

ability the of lowered say, performing, will our comes of ABS So are getting are importance from in point And that opportunities to even But you a confident of the and that, million very that. assets XXXX. update execute And as it Trust, by number as primarily tell talk What beginning portfolio in disposition pipeline attractive out, and continue we that lower these you with position, closer. are we never is will early anticipate better and before we've our we will an of on retail. already they will we summer we Master year, to the it I $XXX are we've continue about would other the very has we addressed nearly that as to refinancing it believe us investors have further I XXXX, that you a closed.

Operator

Bryan of The next question B. Securities. Riley is Maher from from the line

Bryan Maher

few to extent I happened? how today. you from me synergies that Just And The million, more -- Can for what there's $XX to little a a do color any went $XX on to you million. us maybe think do? think, give

Edward Weil

then and we to was and through that which jump been I'll in and answer detail. give, exceed going Chris to post beginning the But was Bryan, he'll that the achieve the number I'm was the quarter first We've ask execution in some important on opportunity to of XXXX something felt the from plan focused XXXX. synergy merger, very late the us. if

year. I So annual an what the the think in fact million savings that we the and just testament another value it's to $XX did there's operation, recurring benefit of last

as Chris, the Bryan do help as in jump far to with you that? So details, and want

Christopher Masterson

Sure.

I say probably what there's I guess would parts to X So is answer. this

G&A quarter, this most have whether to were gone constantly obviously, question is to contracts a is are the some part reduce And XQ we and of costs. first or identifying be more work then over about forward. the evaluating. that's going that we services duplicative got and past second recurring can I of we expenses that did of place had process not be with going going we're mean, reviewing some those The as what put effectively And those the year, all And effective transition we the in areas XQ, our And really off. forward, costs, we into part towards become will much expenses rolling doing extensive and call the by always of that. we've we previous

to going trying can. to So as push we're as that we much keep

Bryan Maher

be quarters? How for of is about you stop, pause, the do going so, or number couple reassess? Michael, what Or point, that? think of you Okay. kind at At next or million-ish it to higher to asset are pipeline. thinking thing, few the sales, in closed the And as $XXX then this I on relates another you current

Edward Weil

important because to to lowering I need noncore. we ability continued EBITDA net debt and achieve we thing the think is that the as the sell most believe assets that still Bryan, to we these of the categorize it's latter,

term. on about insisted and to some we we quarter, were the noise it's think It in cetera, despite have a I'm I'm -- the I reduce want to rate a lower portfolio, long able creates better We keeping worth own stronger talking the portfolio, between disposition that cap assets do that and cautious rates, of was always et ourselves around third of the to quarter on patting the back. like market the the kind and uncertainty second the sound interest

the But asset this of Because management until the brokerage line the way to the that see our with with it the and to disposition a the value, of team, trading the of company relationships community, portfolio. mismatched are team, our do creates that and is maintained in we're value going the value. value show the properties value to the continue we lot trading portfolio

So yes, we will continue.

XXXX. I I of for would guidance. anticipate I get But think similar that don't XXXX -- ahead want to

starting carry benefit the XXXX. have We'll will pipeline were XXXX, into from of in X. -- over we With that a

we're pleased earnings taking X we're important. are So the portfolio where of with while still in things leverage maintaining because the those obviously we're very the direction

Bryan Maher

Right.

So told that ago. to get credit, great read is do Xx. to mind, into you next doing a do my segueing on that market where the So of question you you Leverage quarter, kind year you start a you everything would delivered you're right? my down

X.X, is you point the groups your past peers high the for your market that think multiple half of FFO Xs, multiple credit the starts give year? And you do I and XX.X% for yet XX.X%. EBITDA is and at you've at group At X.X. what delivering kind been to is what think the the

Edward Weil

occupancy, at right the achieving be goals. when position we're to very very going that to starts pleased that in ever point grade, because am move stock investment we're we cetera. pace it already up If hit we'd where And the doing to be the portfolio, there, tipping that at the should the I the not I'm would confident be. things. et quality it I me, So I'm the look think determine a directionally I the and of were to

they're they And like to and my going. and of not to where Chris I get the execution. value, is they're would there." such and results It's And the "Okay, proven I they be, control now I'm I that but us really and they're year-to-date. and stock third buy unfortunately. willing benefit to because get look our They've the I team, need don't directionally, dividend executing. ride guys a the that, our when these they and Ori do control can But pleased the up focus, say, I was not quarter -- with with

continue about a And about that we've to you it and be we down believe put done will. if to it's and a that. And team. to our and heads I I do have we need this there, it's quite and just execute we're an numbers And talked up. company It's every bit. exciting executing we'll do valued quarter, to But it and these put continue will good that, fairly portfolio. because And confident. say I'm us going humbly, management I do get grind

Operator

The Germain JMP. Citizens line question from the comes of from Mitch next

Mitch Germain

the has growing the the pool originally disposition demand the is iteration that market? evolved for you're as that you the where pipeline, assets sale? or of you've curious as investment of Has I'm Michael, So sales gone seeing in through identified there

Edward Weil

that in a ways dispositions, to think Well, great long-term Mitch, portfolio are trim for the opportunity we us beneficial. are

see assets, quarter, X%, X% those you've exposure X entire the to In the office pleased at seen, were rate. mentioned those as rent the assets very we cap straight-line our I of the down earlier portfolio, intentional. sold a to lowered that of we in XX% So we portion,

know all well. very So properties. them have we over X,XXX We

to I want this to be deem we we good what sell long things we because tenants, find good time, And want assets, for to we operating want a we're continue will said We earlier, don't markets. noncore as going to we the good that be portfolio hope. because

that lease end talking being So or of tenants selling in those where portfolio scramble we We're that surprised of to tough tenants the about regular the minute to asset decisions. advance we that the do basis. with We do look a lease at regular on we're not and the it talked bad on The earlier, at maturities. basis. takes a at having or hard engagement to we're last well make engage

one the closes, will I frankly, pretty value the assets. see where look portfolio, we're significant trading at I way will delta continue find it, that versus as think we And the the to we're until gap entire value between that other. selling entire and of So about company, implied or value I a the

Mitch Germain

for one Last me. Great.

down. bid obviously, I'm and more office, are that the for where less what for about kind those is of assets? is assets the demand your lease You location curious your office? Or credit tenant decisions And versus European U.S. exposure or Like it mentioned term? office going -- the

Edward Weil

A office is and stream. lease great driven we and revenue in the cap the lot in uncertainty a more of market. have opportunity rush being market I'm multifamily part in market by demand, an with If uses a with a asset X term of a lease primarily attractive. long it If opportunistically tenant investment-grade office has tenant, is not that sell renewal, range expressed that that able real shorter of a about in likelihood to dispose it's where because an is being of it tenant high an that asset will it's frankly a that has or it's we sell mixed and if to

overall. third X% executed And X.X%. quarter, dispositions we for Our X% guidance at to is

then goals can a opportunities into of fortunate and discuss -- portfolio, proceed. little that bit an a art science. me So want I'm bit can the of to a and little And the team corporate to kind of around we're have tuned how and we we identify our in great a really it's

Operator

Michael The from the next line of question Pactual. from BTG Gorman is

Michael Gorman

go to more wanted just I one on guidance. Michael, the back just time

range. there's the than lower down of less the Just the understand what wanted get the the pieces 'XX. range of of $X.XX here to totally X accelerating of you just guess from of XX to pieces that we of high a next AFFO that towards I I you've of end I'm of remain kind get months? the over end a versus put good guess $X.XX pipeline the and job curious sit these done what year. would you over lot moving moving to course the days end

Edward Weil

in high the you to cap going you almost of of selling know the we're lowering to going some little going understand that. be I the going of a of don't some at reduction bit to is to because at think I'm approach unusual end be to the assets the rate, which maybe at And high X.X% Michael, that end earnings be an don't range. we're think of I portfolio, lead billion take answering will I a AFFO. in there range to $X think

which very that we included being everything moving from synergies, that's And very think $X.XX. a a as has dividend that's leverage. to focus lowering exceeded company dispositions, important. And significant on very to stated, this comfortable of lot I had in covered. to will the We're year We we It's the internalized first the $X.XX that pieces be range we that an company.

our continue expectations So we're meet us. to operate, continue to range to in a good of investors'

think range expression, the guidance range a of amount if rate us So successfully significant to a at beginning we're that saying right to most take about relatively next look now, however or we the a we the -- that aggressive is I'm But a prepare important I XXXX I'm for it. want things to excuse time we accomplishing very we'll attractive of bastardizing amount we to allowed debt pay the at not in we earnings. the disposition another being cap that's provided fast-paced short of think without down the of tighter that guidance anticipate be in see year in as comfortable or year, very want

Michael Gorman

think billion on about just continue of million That's that's I to that for $X about and I kind target I and the midpoint totally sure is that understand. that? you make kind the looking And early that. billion, leverage we want reduction -- EBITDA? to leverage target, there it, not too should to there. like a accelerate Or between of there. the as But as get that million obviously you just guidance wasn't just think think X.X debt on to hit sales $XXX get to point something something should cadence about to missing fair. we kind call about somewhere yet, on leverage of 'XX, of Understood. of of could X.X in future $X think 'XX the a go-forward basis, as $XXX think your Yes, we then trying that how debt will how we reduction Is about targets that I'm to Or EBITDA. you if ratio

Edward Weil

a tricky ask sleep line, So earnings on think get Michael, the because always you don't it's night call, it's these a a where how it try different overshare that case-by-case to sits, little me guys always there's asset, it's sure direct depending the make to good financed, to if questions if just I I get bit. Each there's -- I scenarios. of on lot correlation. a before

you just as and some give we have could a figure that I of wish something I into that numerator know, denominator, map to account. a it's you road kind out, There's take debt-to-EBITDA. in So but net to

course pieces. A So awful team lot of soon we publish the have lot throughout and of as it. and as his it do moving work, the an Chris of we quarter.

Michael Gorman

sorry misunderstood Great. if then one one. Okay. clarifying And last just I'm it. And I

KPN is For because in is the that pipeline? pipeline asset, footnote presentation, on did pipeline the the disposition the the in not in or in I counted -- the notice that

Edward Weil

yet not it's in the pipeline. No,

Operator

line Oxford the of is Colliers. from Barry question next The from

Barry Oxford

as going I to of like. out your closer have But the assets you that comment I you're you I look comment a on you've got to based got that made don't the Michael, the know like future, lot And end to noncore my to getting be there, if to of question. to halfway kind When you think sort imagine becomes you start getting than point at about leverage stuff speak. within to should of kind -- so I sell got past of to we're driven what you point, because to ready put that of range, the believe have do you you your have down, the point the last acquisitions?

Edward Weil

about active. longingly think we we that's what to were need every But wishing doing now. I day be acquisitions that right not

touch So that's with to in But for value company stay with create right where the -- the it this not stay brokers. touch we We going now. markets. is we're in

lower drive you So acquisitions continuing to to it I'm we'll net time time on give equity a multiple. when the at not going leverage, to look multiple line. we at trade even to And know a where makes based improving going start debt-to-EBITDA I'm the sense. us when to it's

Operator

comes Pactual. BTG from from Gorman question line of Michael next the The

Michael Gorman

of taking more Barry's question there. a Michael, bit maybe from quick just approach an one little one,

go-forward here look of As you've we but or not the that approached that like come think a play monetize about and maybe conversations assets still kind for that be sure that like to the next strategic specific, had are stages, basis? could going structures like I'm on on some into see if you had we would you into something the company detail 'XX? of sheet Is options balance 'XX the in quiver JV

Edward Weil

being not not a I contemplated. I the have table, Yes. say on yes about for to own I no you, don't JVs. that's think or good that my something feelings tell me it's will definitively something to practice

can unnecessarily. they think I complicate

We have enough do. to

where question the executing on and to do. in of to And it's work. when with start more Barry's acquisition I kind we your combining get be to time have believe trading, We're line trading we question, back it. We work should

see to the Again, in sub-X. at nearly and point us easily sold we're it's the worth X,XXX-plus this assets, a X for contract portfolio In to is where sold clearly say that assets look cap, I with our arguably, the to continue think meantime, better of best this our selling easy portfolio, them. path it's $X because we under billion at have is

blanket, JV. can't focused And that opportunity as certainly won't see I that no, path. I'm a I I again, great our I on. own can But you something do we tell push that So say or super would never

Operator

over Ladies and for concludes conference the comments. our closing session. this gentlemen, his I hand would question-and-answer now Michael to

Edward Weil

Well, that with do thank the I you always work you all following spending appreciate all and Net Global Lease. time the very much. you

execute. We will continue to

at question question, the and stock trade levels We we And appropriate we answer. conversation, and look to will forward do justified is our going the to we're at update and continuing seeing you, work. look continue it we to, think to trade do but continue to earlier that to is to to the forward the

thank you very all So much.

Operator

The your participation. conference Lease Thank of you Thank concluded. has Global you. for now Net

You may lines. disconnect now your

Global Net Lease (GNL) 7 Nov 242024 Q3 Earnings call transcript