Global Net Lease (NYSE:GNL) reported second-quarter 2026 revenue of $112.5 million, a net loss attributable to common stockholders of $7.5 million and adjusted funds from operations (AFFO) of $45.7 million, or $0.22 per share. AFFO per share increased from $0.21 in the first quarter, while the company raised its full-year outlook following its pending acquisition of Modiv Industrial.
Chief Executive Officer Michael Weil said the company expects the Modiv transaction to close in mid-August, shortly after Modiv shareholders vote on the deal at an Aug. 10 special meeting. GNL said the acquisition is expected to be approximately 4% accretive to AFFO per share and leverage neutral.
Modiv Deal Would Increase Industrial Exposure
The company said its revised 2026 guidance includes roughly one and a half quarters of expected contribution from the Modiv acquisition. Chief Financial Officer Chris Masterson said GNL raised its full-year AFFO guidance to $0.82 to $0.85 per share from a prior range of $0.80 to $0.84.
GNL also increased its gross transaction-volume guidance to $700 million to $800 million, compared with previous guidance of $250 million to $350 million. It reaffirmed its net debt-to-adjusted EBITDA target range of 6.5x to 6.9x.
During the question-and-answer session, Weil said the company expects to retain most of Modiv’s industrial assets but could sell certain properties that do not fit GNL’s long-term portfolio strategy. He said there are no restrictions on GNL’s ability to sell Modiv assets after the transaction closes.
Capital Recycling Targets Office Reduction
GNL continued to sell non-core properties, particularly office assets. Through July 31, the company had closed and pending dispositions totaling $263 million, including $145 million of completed sales at a weighted average cash capitalization rate of 7.6% for occupied assets. Approximately 78% of the overall disposition volume consisted of office properties.
The company said it remains under contract to sell a 133,000-square-foot KPN-leased office property in the Netherlands for about $18 million. Closing is scheduled to coincide with the property’s lease expiration in December 2026. GNL said it received a non-refundable deposit and expects to collect full contractual rent through the closing date.
GNL also sold a 33,000-square-foot office property leased to the U.S. General Services Administration for $13 million and a 369,000-square-foot office property leased to GE Aerospace for $48 million. Both sales were completed at a 7.2% cash cap rate after lease extensions of 20 years and 10 years, respectively.
Weil said the company expects office to represent approximately 21% of straight-line rent after planned dispositions are completed. He told analysts that future office sales could include both conventional sales and transactions structured to close upon lease expiration, allowing GNL to retain rental income while avoiding costs and leasing risks associated with vacant assets.
“By no means do I want to fire sale the office assets,” Weil said, adding that the company remains active in marketing properties and does not expect the office-reduction initiative to be completed during 2026.
Industrial Purchase and Portfolio Performance
During the quarter, GNL acquired an approximately 100,000-square-foot single-tenant industrial property in Mississippi leased to FedEx for about $14 million at an 8.2% going-in cash cap rate. The lease runs through 2031, and the company said it has begun discussions with FedEx about a long-term extension.
As of June 30, GNL owned 798 properties totaling 40 million rentable square feet. Portfolio occupancy was 97%, with a weighted average remaining lease term of 5.7 years. Office occupancy increased to 99% from 95% a year earlier, primarily because GNL sold a vacant office property in the first quarter that had created more than $1 million of annualized negative net operating income drag.
The company reported renewal spreads of about 5.6% above expiring rents across more than 357,000 square feet, with a weighted average lease term of 8.4 years. Renewals included Dollar General, FedEx Freight and FedEx leases.
GNL said 63% of its tenants were investment grade or implied investment grade, up from 60% in the year-earlier period. No individual tenant represented more than 6% of straight-line rent, while the top 10 tenants accounted for 29%.
Debt, Liquidity and Repurchases
Masterson said gross outstanding debt stood at $2.5 billion at quarter-end, down $621 million from the end of the second quarter of 2025. Net debt totaled $2.3 billion, and net debt to adjusted EBITDA improved to 6.6x from 7.2x at the end of the first quarter.
GNL had 92% of its debt fixed or swapped to fixed rates, with a weighted average interest rate of 4.1% and an interest coverage ratio of 3.2x. Liquidity was approximately $919 million as of June 30, while revolving-credit-facility capacity was $1.3 billion.
The company said recurring capital expenditures fell to $3.4 million in the first half from $19.6 million in the prior-year period. Since beginning its repurchase program in 2025 through July 31, GNL repurchased 20.9 million shares for $169.7 million, at an average price of $8.11 per share. That total included about 1.2 million shares repurchased during the second quarter for $11.1 million.
About Global Net Lease (NYSE:GNL)
Global Net Lease (NYSE: GNL) is a real estate investment trust (REIT) that focuses on acquiring and managing a diversified portfolio of single-tenant, net-lease commercial properties. The company’s business model centers on establishing long-term, triple-net leases with creditworthy tenants, enabling the pass-through of property operating expenses while aiming to provide predictable rental income and stable cash flows. Global Net Lease’s portfolio spans retail, industrial, office and light-industrial assets, each selected for its strategic location and tenant credit quality.
Since launching its initial public offering in April 2016, Global Net Lease has built a presence in key markets throughout the United States and Western Europe.
