Global Net Lease Narrows Loss, Raises AFFO Outlook
The landlord lifted its 2026 AFFO forecast to $0.82 to $0.85 a share.
Global Net Lease (GNL), a real estate investment trust, narrowed its second-quarter loss as debt reduction and lower interest costs partly offset weaker property-level earnings. The net loss attributable to common stockholders shrank to $7.5 million, or $0.04 a share, from $35.1 million, or $0.16 a share, a year earlier.
The quarter reflected the smaller portfolio left by earlier asset sales, including the $1.8 billion multi-tenant retail portfolio disposition completed in 2025. Revenue fell to $112.5 million from $124.9 million a year earlier, while adjusted funds from operations declined to $45.7 million, or $0.22 a share, from $53.1 million, or $0.24 a share.
Property-level results weakened across the portfolio. Revenue from tenants fell $12.4 million while property operating expenses rose to $13.4 million from $12.0 million, reducing net operating income to $99.1 million from $126.1 million. Adjusted EBITDA declined to $88.8 million from $113.4 million.
All three operating segments recorded lower NOI, led by the retail portfolio’s decline to $26.2 million from $32.4 million. Industrial and distribution NOI fell to $46.0 million from $50.8 million, while office NOI decreased to $26.9 million from $29.8 million.
Balance-sheet measures improved as Global Net Lease continued selling assets and paying down borrowings. Net debt to adjusted EBITDA declined sequentially to 6.6 times from 7.2 times after the company reduced net debt by $629.8 million since the second quarter of 2025. Its weighted-average interest rate fell to 4.1% from 4.3%, and cash interest payments dropped to $27.9 million from $42.6 million.
The disposition program remained concentrated on offices. The closed-plus-active pipeline reached $263 million as of July 31, with office properties representing 78% of the total. Office exposure declined to 25% of annualized straight-line rent from about 26% in the first quarter, while overall portfolio occupancy held at 97% and office occupancy rose to 99% from 95% a year earlier.
Leasing activity covered more than 357,000 square feet at a 5.6% renewal spread and generated more than $5.1 million of new straight-line rent. The portfolio’s weighted-average remaining lease term nevertheless shortened to 5.7 years from 5.9 years in the first quarter; the pending Modiv acquisition is expected to extend it to 6.7 years on a pro forma basis.
Global Net Lease raised its full-year AFFO guidance and increased its gross transaction-volume forecast to $700 million to $800 million from $250 million to $350 million, incorporating roughly one and a half quarters of expected Modiv contribution. The company continues to target net debt to adjusted EBITDA of 6.5 to 6.9 times. Modiv is expected to close in mid-August following an August 10 shareholder vote, with projected AFFO accretion of 4% and no change to leverage.