Global Net Lease (NYSE:GNL) executives used the company’s fourth-quarter earnings call to outline what Chief Executive Officer Michael Weil described as a “transformational year” in 2025, marked by major portfolio dispositions, debt reduction, and a shift to a pure-play single-tenant net lease REIT. Management also introduced initial 2026 guidance and discussed plans to transition from a disposition-led strategy toward capital recycling and selective growth.
2025 repositioning: portfolio simplification and $3.4 billion of dispositions
Weil said the centerpiece of the company’s 2025 strategy was the sale of a $1.8 billion multi-tenant retail portfolio, which he said accelerated deleveraging and completed the company’s evolution into a pure-play, single-tenant net lease REIT. He added that simplifying the portfolio reduced operational complexity and enabled lower general and administrative expenses and reduced capital expenditures.
- $995 million of occupied single-tenant, non-core assets at a 7.6% cash cap rate
- $2.0 billion of occupied multi-tenant assets at an 8.2% cash cap rate
- A December 2025 sale of the McLaren Campus for GBP 250 million (about $336 million) at a 7.4% cash cap rate
Weil said the McLaren sale produced about GBP 80 million (roughly $108 million) of value above the original acquisition price. He also said it increased the proportion of investment-grade tenants among the top 10 tenants to 80% in the fourth quarter of 2025, up from 73% in the third quarter, while reducing exposure to the automotive industry.
Deleveraging, refinancing, and credit rating changes
Management said net proceeds from the disposition program were used primarily to reduce leverage. Weil said the company reduced outstanding debt by more than $2.8 billion since the fourth quarter of 2023 and improved Net Debt to Adjusted EBITDA to 6.7x from 8.4x over the same period.
Weil also highlighted a $1.8 billion refinancing of the company’s revolving credit facility, which he said improved pricing, enhanced liquidity, and extended maturities from October 2026 to August 2030, with two additional six-month extension options.
On credit ratings, Weil said Fitch upgraded the company’s corporate credit rating to investment-grade BBB- from BB+, and S&P Global lifted the corporate rating to BB+ while upgrading the company’s bonds to investment grade.
Q4 and full-year results, balance sheet, and share repurchases
Chief Financial Officer Chris Masterson reported fourth-quarter 2025 revenue of $117 million and net income attributable to common stockholders of $37.2 million. Adjusted funds from operations (AFFO) was $48.5 million, or $0.22 per share, for the quarter. For full-year 2025, Masterson said AFFO was $0.99 per share, exceeding the revised guidance range of $0.95 to $0.97 per share.
Masterson said total outstanding debt was $2.6 billion at the end of 2025, down $2.1 billion from the end of 2024, and Net Debt to Adjusted EBITDA was 6.7x based on net debt of $2.5 billion. He said the debt mix included $1.0 billion in senior notes, $324.2 million on the multicurrency revolving credit facility, and $1.3 billion of gross mortgage debt.
Masterson said 98% of debt was effectively fixed through contractual fixed rates or swaps, and the weighted average interest rate was 4.2% at year-end 2025, down from 4.8% in the fourth quarter of 2024. He said quarterly interest expense fell 45% year over year to $42.6 million from $77.2 million, and interest coverage was 2.9 times.
On maturities and liquidity, Masterson said only $95 million of debt matures in 2026 and the company expects to address it by refinancing onto the multicurrency revolving credit facility. As of Dec. 31, 2025, he said liquidity was approximately $961.9 million and capacity on the revolving credit facility was $1.5 billion, compared to $492.2 million and $460 million, respectively, at the end of 2024.
Management also emphasized capital allocation flexibility. Weil said the company repurchased 17.2 million shares through Feb. 20, 2026 at a weighted average price of $7.88, totaling $135.9 million and implying an AFFO yield of about 12%. In the Q&A session, Weil said buybacks remain “a very important tool,” though he indicated the company will be more active in evaluating acquisitions while remaining disciplined.
Portfolio metrics and leasing update
Weil said that at the end of the fourth quarter of 2025, the company owned 820 properties spanning nearly 41 million rentable square feet. Portfolio occupancy was 97% and weighted average remaining lease term was 6.1 years.
Weil said 66% of tenants were investment grade or implied investment grade and the portfolio had average annual contractual rent increases of 1.4%, excluding CPI-linked leases representing 19.6% of the portfolio that he said have historically generated higher increases.
On leasing, Weil said the company executed leases on more than 3.7 million square feet during 2025 and achieved renewal spreads of about 12% above expiring rents. He cited lease extensions with tenants including Home Depot, GXO, and FedEx, and noted a GE Aviation extension at an office asset with a 37% renewal spread. New leases executed in 2025 had a weighted average lease term of about 5.2 years, while renewals averaged about 6.5 years.
Weil also said tenant concentration remained limited, with no single tenant accounting for more than 6% of total straight-line rent. The top 10 tenants represented 29% of straight-line rent, with 80% investment grade.
2026 guidance and strategic shift toward capital recycling
Masterson introduced initial 2026 guidance calling for AFFO of $0.80 to $0.84 per share and Net Debt to Adjusted EBITDA of 6.5x to 6.9x. The guidance assumes gross transaction volume of $250 million to $350 million, including acquisitions and dispositions. Masterson said the outlook reflects a continued focus on reducing office exposure and the “optionality” to redeploy net sale proceeds in a leverage-neutral way that management anticipates will drive earnings growth.
In the Q&A, executives discussed office dispositions at length. Weil said the McLaren sale was prompted by third-party interest and was not “a highly marketed transaction.” He also said he believes the company’s net lease office assets can achieve similar pricing and that management is marketing several office properties, with potential announcements “maybe end of first quarter, but definitely second quarter.”
Weil said the company intends to reduce office exposure intentionally but without rushing sales that could compromise value. He described net lease office as distinct from the broader office market due to investment-grade tenants, lease duration, and “mission critical” characteristics that can include R&D or light assembly components. Later in the call, he clarified that 2026 office lease maturity is about 3.1% of straight-line rent, and said renewals are expected to be successful.
On acquisitions, management did not provide cap-rate or investment-spread targets. Weil said the company’s underwriting will be driven by accretion and AFFO growth and that acquisitions would be selective, focused on duration and credit quality, and “predominantly in the industrial space,” with some retail. He said the company would consider opportunities in the U.S., the U.K., and Europe, but indicated a current lean toward U.S. markets given uncertainty in the U.K. and Europe.
Masterson also addressed a question about the 2026 AFFO outlook relative to the fourth-quarter run rate, noting the fourth quarter included tax benefits identified in the year-end process that added “a little over $0.01” in AFFO and could distort comparisons.
Weil closed by saying the company enters 2026 “from a position of strength” after simplifying the portfolio, reducing leverage, strengthening liquidity, and improving its credit profile, and that management expects to provide further updates as asset sales and investment activity progress.
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.
