Second Quarter 2026
Filed Aug 5, 2026Global Net Lease Reports Second Quarter 2026 Results; Reports Q2’26 AFFO Per Share of $0.22; Raises Full-Year AFFO Per Share Guidance to $0.82 – $0.85 and Increases Gross Transaction Volume to $700 Million – $800 Million
GNL raised full-year AFFO per share and gross transaction volume guidance, reduced net debt, increased liquidity, and improved office occupancy, but quarterly revenue, AFFO, AFFO per share, NOI, Cash NOI, and Adjusted EBITDA were lower than the prior-year period.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue from tenantsGAAP | $ 112,475 (in thousands) | – | – |
| Property operating expenseGAAP | 13,400 (in thousands) | – | – |
| Impairment chargesGAAP | 3,695 (in thousands) | – | – |
| Merger, transaction and other costsGAAP | 6,561 (in thousands) | – | – |
| General and administrativeGAAP | 11,884 (in thousands) | – | – |
| Equity-based compensationGAAP | 3,942 (in thousands) | – | – |
| Depreciation and amortizationGAAP | 41,512 (in thousands) | – | – |
| Total expensesGAAP | 80,994 (in thousands) | – | – |
| Operating income before gain on dispositions of real estate investmentsGAAP | 31,481 (in thousands) | – | – |
| Gain on dispositions of real estate investmentsGAAP | 23,250 (in thousands) | – | – |
| Operating incomeGAAP | 54,731 (in thousands) | – | – |
| Interest expenseGAAP | (38,820) (in thousands) | – | – |
| Loss on extinguishment and modification of debtGAAP | (11,911) (in thousands) | – | – |
| Loss on derivative instrumentsGAAP | (302) (in thousands) | – | – |
| Net income (loss) before income taxGAAP | 5,790 (in thousands) | – | – |
| Income tax provisionGAAP | (4,775) (in thousands) | – | – |
| Income (loss) from continuing operationsGAAP | 1,015 (in thousands) | – | – |
| Income from discontinued operationsGAAP | 2,471 (in thousands) | – | – |
| Net income (loss)GAAP | 3,486 (in thousands) | – | – |
| Net loss attributable to common stockholdersGAAP | $ (7,450) (in thousands) | – | – |
| Net loss per diluted common shareGAAP | $ (0.04) | – | – |
| Weighted average shares outstanding — Basic and DilutedGAAP | 211,339 (in thousands) | – | – |
| EBITDAnon-GAAP | 88,593 (in thousands) | – | – |
| Adjusted EBITDAnon-GAAP | 88,815 (in thousands) | – | – |
| Net Operating Incomenon-GAAP | 99,076 (in thousands) | – | – |
| Cash NOInon-GAAP | $ 100,542 (in thousands) | – | – |
| Cash paid for interestnon-GAAP | $ 27,864 (in thousands) | – | – |
| NAREIT defined FFO attributable to common stockholdersnon-GAAP | $ 13,934 (in thousands) | – | – |
| NAREIT defined FFO per diluted common sharenon-GAAP | $ 0.07 | – | – |
| Core FFO attributable to common stockholdersnon-GAAP | 32,406 (in thousands) | – | – |
| Core FFO per diluted common sharenon-GAAP | $ 0.15 | – | – |
| AFFO attributable to common stockholdersnon-GAAP | $ 45,702 (in thousands) | – | – |
| AFFO per diluted common sharenon-GAAP | $ 0.22 | – | – |
| Dividends declared to common stockholdersother | $ 40,640 (in thousands) | – | – |
| Capital expendituresother | $3.4 million for the six months ended June 30, 2026 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Industrial & DistributionNot separately stated. | $ 51,692 (in thousands) | – | – |
| RetailNot separately stated. | $ 29,995 (in thousands) | – | – |
| OfficeThe Company reported a strategic reduction in office exposure through value-maximizing dispositions. | $ 30,788 (in thousands) | – | – |
Full Year 2026 outlook
- NoteAFFO Per Share: $0.82 – $0.85
- NoteNet Debt to Adjusted EBITDA: 6.5x – 6.9x
- NoteGross Transaction Volume: $700M – $800M
- NoteThe revised guidance reflects the anticipated acquisition of Modiv and includes only approximately one and a half quarters of expected contribution from the accretive Modiv acquisition during 2026.
Capital returns
- Repurchased 20.9 million shares of outstanding common stock under the Share Repurchase Program announced in February 2025, at a weighted average price of $8.11, for a total of $169.7 million as of July 31, 2026.
- This includes 1.2 million shares for a total of $11.1 million repurchased in second quarter 2026.
- During the three months ended June 30, 2026, the Company did not sell any shares of Common Stock through its Common Stock “at-the-market” program.
- Dividends declared to common stockholders were $ 40,640 (in thousands).
What drove it
- Revenue was primarily affected by prior asset dispositions, including the $1.8 billion multi-tenant retail portfolio sale completed in 2025.
- Closed plus disposition pipeline totaled $263 million year-to-date as of July 31, 2026, with 78% consisting of office sales.
- Occupied assets were sold at a 7.6% cash cap rate; remaining dispositions primarily consist of vacant assets that the Company expects to eliminate over $1 million of annualized NOI drag.
- Portfolio occupancy remained at 97%, while office occupancy increased to 99% from 95% in second quarter 2025.
- The Company leased more than 357,000 square feet, with a 5.6% renewal leasing spread, an 8.4 year weighted average renewal term, and more than $5.1 million of new straight-line rent.
- Weighted average annual rent increase was 1.4%, excluding 20.3% of the portfolio with CPI-linked leases.
- 63% of annualized straight-line rent was derived from investment-grade or implied investment-grade tenants, up from 60% in second quarter 2025.
Concerns
- Revenue from tenants was $ 112,475 (in thousands), compared to $ 124,905 (in thousands) in second quarter 2025.
- AFFO attributable to common stockholders was $ 45,702 (in thousands), compared to $ 53,108 (in thousands) in second quarter 2025, and AFFO per diluted common share was $ 0.22 compared to $ 0.24.
- Adjusted EBITDA was 88,815 (in thousands), compared to 113,427 (in thousands), while Cash NOI was $ 100,542 (in thousands), compared to $ 124,366 (in thousands).
- Loss on extinguishment and modification of debt was (11,911) (in thousands), compared to (4,348) (in thousands).
- The Modiv acquisition is subject to customary closing conditions, including approval of Modiv’s shareholders on August 10, 2026.
- The Company stated there can be no assurances that transactions under signed purchase and sale agreements or letters of intent will be consummated on the stated terms, if at all.
What to watch
- Modiv shareholder vote scheduled for August 10, 2026 and the expected mid-August 2026 closing.
- The expected immediate 4% accretion to AFFO per share from the Modiv transaction and its leverage-neutral treatment within the 6.5x – 6.9x Net Debt to Adjusted EBITDA guidance range.
- Execution of $700M – $800M gross transaction volume guidance.
- Further office dispositions from the $263 million closed plus active disposition pipeline and the expected elimination of over $1 million of annualized NOI drag from primarily vacant assets.
- Portfolio occupancy, office occupancy, leasing spreads, and renewal terms.
- Debt reduction, liquidity, Revolving Credit Facility capacity, and the 2.7 years weighted-average debt maturity.
Balance sheet and cash flow
- Liquidity was $919.0 million as of June 30, 2026, including $765.4 million of availability under the Revolving Credit Facility and $153.6 million of cash and cash equivalents.
- Capacity under the Revolving Credit Facility was $1.3 billion as of June 30, 2026.
- Net debt was $2.3 billion, including $1.0 billion of gross mortgage debt, as of June 30, 2026.
- The principal amount of outstanding debt totaled $2.5 billion as of June 30, 2026.
- Net Debt to Adjusted EBITDA was 6.6x.
- 92% of debt was fixed rate, including variable rate debt fixed with swaps.
- The total combined debt weighted average interest rate was 4.1%, and the interest coverage ratio was 3.2 times.
- Weighted-average debt maturity was 2.7 years as of June 30, 2026.
- Cash and cash equivalents were $ 153,640 (in thousands) as of June 30, 2026, compared with $ 180,114 (in thousands) as of December 31, 2025.
- Mortgage notes payable, net were $ 986,880 (in thousands), revolving credit facility borrowings were 472,946 (in thousands), and senior notes, net were 940,019 (in thousands) as of June 30, 2026.
Analysis
Second-quarter revenue from tenants was $ 112,475 (in thousands), compared with $ 124,905 (in thousands) in second quarter 2025. The Company attributed the revenue decline primarily to prior asset dispositions, including the $1.8 billion multi-tenant retail portfolio sale completed in 2025. Industrial & Distribution revenue was $ 51,692 (in thousands), Retail revenue was $ 29,995 (in thousands), and Office revenue was $ 30,788 (in thousands). Property-level performance also declined, with NOI of 99,076 (in thousands) and Cash NOI of $ 100,542 (in thousands), compared with 126,093 (in thousands) and $ 124,366 (in thousands), respectively.
GAAP results improved despite lower revenue. Operating income was 54,731 (in thousands), compared with 42,297 (in thousands), supported by a gain on dispositions of real estate investments of 23,250 (in thousands), compared with 1,537 (in thousands). Net loss attributable to common stockholders narrowed to $ (7,450) (in thousands), or $ (0.04) per diluted common share, from $ (35,079) (in thousands), or $ (0.16). The non-GAAP operating picture was weaker year over year: Adjusted EBITDA was 88,815 (in thousands) versus 113,427 (in thousands), while AFFO attributable to common stockholders was $ 45,702 (in thousands), or $ 0.22 per diluted common share, versus $ 53,108 (in thousands), or $ 0.24.
Portfolio and capital-structure indicators reflected the stated repositioning strategy. Portfolio occupancy remained at 97%, office occupancy increased to 99% from 95%, and the Company leased more than 357,000 square feet at a 5.6% renewal leasing spread with an 8.4 year weighted average renewal term. The portfolio derived 63% of annualized straight-line rent from investment-grade or implied investment-grade tenants. GNL reported $263 million of closed plus active disposition pipeline year-to-date as of July 31, 2026, of which 78% was office sales. Net debt was $2.3 billion, Net Debt to Adjusted EBITDA was 6.6x, liquidity was $919.0 million, and Revolving Credit Facility capacity was $1.3 billion.
Capital allocation included 1.2 million shares repurchased for $11.1 million in the quarter. As of July 31, 2026, cumulative repurchases under the February 2025 program were 20.9 million shares at a weighted average price of $8.11 for $169.7 million. The Company also reported $3.4 million of capital expenditures for the six months ended June 30, 2026, down from $19.6 million for the prior-year six-month period. Dividends declared to common stockholders were $ 40,640 (in thousands), compared with $ 43,429 (in thousands).
Management raised full-year 2026 AFFO per share guidance from $0.80 – $0.84 to $0.82 – $0.85 and raised gross transaction volume guidance from $250M – $350M to $700M – $800M. Net Debt to Adjusted EBITDA guidance remained 6.5x – 6.9x. Revised guidance reflects the anticipated Modiv acquisition, expected to close in mid-August 2026 following a shareholder vote scheduled for August 10, 2026, and includes approximately one and a half quarters of expected contribution during 2026. The Company expects the transaction to be immediately 4% accretive to AFFO per share and leverage-neutral within its stated guidance range.
Management, verbatim
Through disciplined execution, we have simplified and enhanced the quality of our portfolio, materially reduced leverage, strengthened liquidity, achieved an investment-grade balance sheet, significantly increased our exposure to investment-grade tenants and made meaningful progress reducing our office exposure through value-maximizing dispositions.
Michael Weil, Chief Executive Officer of GNL
The anticipated acquisition of Modiv represents a natural next step in that strategy, further improving the quality and durability of our portfolio while remaining consistent with our disciplined approach to capital allocation and balance sheet management.
Michael Weil, Chief Executive Officer of GNL
Our increased full-year guidance reflects the momentum we've built and our confidence in the strength of our business and the opportunities ahead.
Michael Weil, Chief Executive Officer of GNL
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported quarterly metrics.
- Explicit year-over-year percentage changes for revenue, earnings, AFFO, NOI, EBITDA, and segment revenue.
- Gross margin.
- Operating cash flow.
- Free cash flow.
- Dividend per common share.
- Forward guidance for revenue, gross margin, operating expenses, and tax rate.
- A previous release outlook for comparison with actual reported results.
- Separate reported drivers for Industrial & Distribution and Retail segment revenue changes.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.