Global Net Lease Spends $75M for Properties in Texas, Ohio
The latest purchase deals bring the REIT’s acquisitions so far this year to $236.4 million.
NEW YORK CITY—Locally based Global Net Lease Inc., reports it has acquired an office building in Allen TX and an industrial property in Akron, OH for a combined price of $75.4 million.
The latest purchase deals bring the REIT’s acquisitions so far this year to $236.4 million.
The latest deals involve the purchase of a newly constructed, 145,000 square foot, Class A office building located in Allen, TX for $54 million. The property generates an average GAAP Cap rate of 7.36% and is net leased for 12 years to a subsidiary of the guarantor, NetScout Systems, Inc. NetScout, the guarantor of the Class A office building lease, is a leading provider of application and network performance management products. NetScout has been in the network performance monitoring space for 30 years. The transaction closed on Aug. 13.
The second transaction is a $21.4-million purchase of a 669,000 square foot industrial facility leased to Rubbermaid Incorporated in Akron, OH. The building was purchased at a price equal to an average GAAP cap rate of 7.43% with a remaining lease term of 10 years. The transaction closed on July 27. The guarantor of the lease is Newell Rubbermaid, Inc.
The guarantor of the industrial lease is Newell Brands, a worldwide provider of consumer and commercial products. Newell Brands has a Standard & Poor’s credit rating of “BBB-” and a Moody’s rating of “Baa3.”
GNL states that it funded the two transactions with borrowings under its revolving credit facility.
Last week, Global Net Lease announced its second quarter revenue increased 9.2% year over year to $71.0 million and net income attributable to common stockholders increased to $5.3 million on a year over year basis up from $5.2 million. The company also reported that core funds from operations increased 20% or $0.10 per share on a year over year basis.
Its portfolio at the end of the second quarter was 99.5% leased with an 8.5 year weighted average remaining lease term. A total of 79.1% of tenants rated as investment grade or implied investment grade.
In the second quarter, the firm closed on the acquisition of seven industrial and distribution assets totaling 1.6 million square feet for $97.6 million.