Global Net Lease Cuts Net Debt by $1.3B, Secures $535M Modiv Deal
Global Net Lease closed $132 million in dispositions, 68% office, reduced net debt by $1.3B and lifted liquidity to $911M. The company reported Q1 AFFO of $0.21 per share, cut G&A by 25% and agreed to acquire Modiv Industrial in a $535 million transaction with 4% accretion.
1. Q1 Financial Results
Global Net Lease reported revenue of $109.3 million and AFFO of $43.9 million ($0.21 per share), down from $132.4 million revenue and $66.2 million AFFO in Q1 2025. The company reaffirmed full-year AFFO guidance of $0.80 to $0.84 per share.
2. Balance Sheet and Cost Cuts
Global Net Lease reduced net debt by $1.3 billion year-over-year and increased liquidity to $911 million with a $1.5 billion revolving credit facility. The company closed $132 million of dispositions (68% office) and cut annualized G&A expense by 25%, saving $16 million.
3. Modiv Industrial Merger
Global Net Lease entered a definitive agreement to acquire Modiv Industrial in a $535 million all-stock transaction at a fixed exchange ratio of 1.975. The leverage-neutral deal is immediately 4% accretive to AFFO and adds a 15-year weighted average lease term, 2.4% annual rent escalations and 45% investment-grade tenants.
4. Operational Highlights
Portfolio occupancy rose to 97% (office 99%), driven by 141,000 square feet leased at a 5.1% renewal spread and a 5.8-year average term. The company repurchased 19.7 million shares for $158.2 million since February 2025 and reduced capital expenditures to $1.6 million in Q1.