Global Net Lease, Inc. (GNL) is continuing to expand on its disposition plan, as it looks to trim its debt. Through the third quarter, the New York-based company has closed $569 million deals under this category. But when including GNL's pipeline in the number, it goes up to a total of $870 million.
"The dispositions include approximately $111 million of vacant assets, eliminating their negative impact on our net operating income," Michael Weil, CEO of GNL said in a statement.
"This initiative is essential for achieving our strategic objectives of reducing our Net Debt to Adjusted EBITDA and lowering our cost of capital. By using the net sale proceeds to reduce outstanding debt, we enhance GNL's financial flexibility and position the Company for long-term growth."
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Initially, GNL set a disposition target range of target of $400-$600 million. However, for 2024, it raised the goal to between $650-$800 million thanks to its progress made through the second quarter. On average, GNL has sold its assets at a 7.2 cash cap rate, with lease terms averaging 5.3 years.
Some of its recent sales include receiving $95 million for a shopping center in San Jose for $95 million and getting $27 million for an office property in the United Kingdom, according to a September announcement.
Weil previously explained to GlobeSt. that closing the gap between the buyer and the seller, coupled with a localized approach has helped maximize the company's returns.
A little over a year ago, GNL completed a merger with Necessity Retail REIT. After setting a goal of achieving a post-merger target of $75 million in operating synergies, GSL in the second quarter hit the $74 million mark.
GNL operates more than 1,200 properties, taking up over 66 million square feet in 11 nations. The real estate trust holds $8.5 billion gross book value of assets and manages a mix of industrial, office, and retail properties.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
