Global Net Lease Closes Modiv and Lifts AFFO Outlook

The Tip Desk · November 11, 2026 · 4 min read

The net-lease REIT raised full-year AFFO guidance to $0.83–$0.85 a share after closing a $535 million industrial deal and accelerating office sales.

Global Net Lease, Inc. (GNL) closed a $535 million all-stock acquisition of Modiv Industrial on August 12, 2026, and raised the low end of its full-year AFFO per share guidance to $0.83 from $0.82, while lifting the floor of its gross transaction volume outlook to $750 million from $700 million.

The publicly traded real estate investment trust, which owns net-lease assets across the United States and Western and Northern Europe, said the deal was immediately accretive and leverage-neutral within its existing 6.5x–6.9x net debt to Adjusted EBITDA range. Chief Executive Officer Michael Weil said the company raised the low end of both AFFO and transaction-volume ranges after the close.

Modiv’s 40-property portfolio carried a 15.0-year weighted-average remaining lease term and 2.4% average annual rent increases. Industrial and distribution now accounts for 51% of portfolio straight-line rent. Portfolio occupancy was 96% as of September 30, with office occupancy at 98%. The weighted-average remaining lease term rose to 6.3 years from 5.7 years at June 30.

Revenue from tenants was $112.9 million in the three months ended September 30, 2026, compared with $121.0 million a year earlier, a decline the company attributed primarily to asset dispositions. AFFO attributable to common stockholders was $48.3 million, or $0.22 a share, versus $53.2 million, or $0.24 a share, in the year-ago quarter. Net loss attributable to common stockholders was $67.1 million, or $(0.31) a diluted share.

Industrial and distribution tenant revenue was $53.8 million and NOI $47.1 million. Retail tenant revenue was $30.0 million and NOI $26.3 million. Office tenant revenue was $29.0 million and NOI $25.1 million.

Office sales represented 68% of dispositions, reducing office exposure to 23% of straight-line rent from 27% at the start of 2026. The company said further sales are expected to take that share to approximately 18%. A closed-plus-disposition pipeline totaled $391 million as of October 30, with occupied assets sold at a 7.7% cash cap rate. About $70 million of car wash and gas-and-convenience assets were under contract at a 6.5% cash cap rate, which the company described as an opportunistic source of capital supported by buyer demand for year-end bonus depreciation.

The company repurchased 6.6 million shares for $58.5 million in the third quarter at an AFFO yield of approximately 10%, bringing cumulative buybacks under the February 2025 program to 29.7 million shares for $245.8 million at a weighted-average price of $8.28 as of October 30. Weil said repurchases offered greater accretion than the acquisition opportunities the company evaluated.

Liquidity was $863.3 million and revolving-credit capacity $1.0 billion as of September 30, with no debt maturing until the fourth quarter of 2027. Net debt was $2.7 billion, including $1.0 billion of gross mortgage debt. The weighted-average interest rate was 4.1%. Quarter-end net debt to Adjusted EBITDA was not meaningful because debt reflected the full Modiv transaction while Adjusted EBITDA included only a partial quarter of acquired earnings; the company said fourth-quarter results will include a full quarter of Modiv earnings.

Annualized G&A expense was reduced by more than $2.5 million year-over-year. Weil said Modiv integration delivered anticipated G&A synergies with no increase in G&A expense in the third quarter. Recurring capital expenditures were $5.7 million for the nine months ended September 30, 2026, down from $26.2 million in the prior-year period.

The company leased more than 840,000 square feet in the third quarter, achieving a 4.9% renewal leasing spread and a 5.2-year weighted-average renewal term, resulting in more than $10.4 million of new straight-line rent. Weighted-average annual contractual rent increase was 1.5%, excluding about 20% of the portfolio with CPI-linked leases; including those leases and using historical CPI, annual rent growth is approximately 2%.