Global Net Lease Successfully Closes Third and Final Phase of Multi-Tenant Portfolio Sale

Rhea-AI Summary

Global Net Lease (NYSE: GNL) has completed the final phase of its multi-tenant portfolio sale to RCG Ventures, generating $313 million in gross proceeds from 12 properties. The total portfolio sale reached $1.8 billion, transforming GNL into a pure-play single-tenant net lease REIT. The company plans to use the proceeds to reduce leverage by paying down its Revolving Credit Facility. This strategic transition is expected to yield $6.5 million in annual G&A savings and additional capital expenditure reductions. The move simplifies GNL's operations by eliminating multi-tenant property management complexities and positions the company to pursue an investment-grade credit rating to lower its cost of capital.

Positive

• Sale of multi-tenant portfolio generated substantial proceeds of $1.8 billion total
• Expected to achieve $6.5 million in recurring annual G&A savings
• Reduction in annual capital expenditures
• Strategic transformation to pure-play single-tenant net lease REIT simplifies operations
• Strengthens balance sheet through deleveraging
• Positions company for potential investment-grade credit rating

Negative

• Significant reduction in property portfolio through $1.8 billion asset sale
• Loss of diversification benefits from multi-tenant properties

Insights

REIT Investment Strategist

GNL completes $1.8B multi-tenant property sale, accelerating deleveraging and transforming into a pure-play single-tenant net lease REIT with simplified operations.

Global Net Lease has successfully executed the final phase of its strategic multi-tenant portfolio divestiture, generating $313 million in gross proceeds from the sale of 12 properties. This completes the $1.8 billion total portfolio sale to RCG Ventures, fundamentally reshaping GNL's business model and balance sheet.

This transaction represents a significant strategic pivot for GNL, transforming it into a pure-play single-tenant net lease REIT. The completion of this portfolio sale delivers multiple benefits:

• Deleveraging acceleration - The company will use proceeds to pay down its Revolving Credit Facility, reducing leverage and improving its debt profile
• Cost structure improvement - GNL projects $6.5 million in recurring annual G&A savings
• Capital expenditure reduction - Single-tenant net lease properties typically require substantially lower capex than multi-tenant retail
• Operational simplification - Eliminating multi-tenant complexities streamlines management focus and reduces operational overhead

For investors, this transformation enhances GNL's competitive positioning within the net lease REIT sector. Single-tenant net lease properties typically feature longer lease terms, minimal landlord responsibilities, and more predictable cash flows compared to multi-tenant assets. These characteristics generally command premium valuations in the market.

The strategic shift also advances GNL's stated goal of achieving an investment-grade credit rating, which would potentially lower its cost of capital - a critical advantage in the capital-intensive REIT sector. With simplified operations, reduced leverage, and a more focused business model, GNL appears positioned to operate more efficiently in its competitive landscape.

— Sale of 12 Properties Generates Approximately $313 Million in Gross Proceeds

— Portfolio Sale Completed; Accelerates Deleveraging Plan and Transforms GNL to Single-Tenant Net Lease REIT

NEW YORK, June 23, 2025 (GLOBE NEWSWIRE) -- Global Net Lease, Inc. (NYSE: GNL) (“GNL” or the “Company”) announced that it has completed the final phase of its multi-tenant portfolio sale to RCG Ventures, LLC on June 18, 2025, including 12 encumbered properties. This third phase generated approximately $313 million in gross proceeds¹, bringing total gross proceeds from the portfolio sale to $1.8 billion². GNL plans on using the incremental net proceeds from the third phase of the multi-tenant portfolio sale to further reduce leverage by paying down the outstanding balance on GNL’s Revolving Credit Facility.

The multi-tenant portfolio sale simplifies GNL’s portfolio and sharpens its strategic focus by becoming a pure-play net lease owner and operator. This transition is expected to generate approximately $6.5 million in recurring annual G&A savings, along with additional cash savings from a substantial reduction in annual capital expenditures. GNL also believes the multi-tenant portfolio sale will create significant efficiencies in its operations by eliminating the complexities associated with managing multi-tenant retail properties.

“The completion of our multi-tenant portfolio sale marks the final step in our evolution into a pure-play single-tenant net lease company with streamlined operations and improved portfolio quality,” said Michael Weil, CEO of GNL. “Divesting these multi-tenant assets has strengthened our balance sheet by accelerating our deleveraging efforts and improving liquidity. We remain focused on achieving an investment-grade credit rating, which we believe will lower our cost of capital and increase our financial stability. We are confident that this strengthened foundation will support continued growth and value creation for our shareholders.”

About Global Net Lease, Inc.

Global Net Lease, Inc. (NYSE: GNL) is a publicly traded internally managed real estate investment trust that focuses on acquiring and managing a global portfolio of income producing net lease assets across the U.S., and Western and Northern Europe. Additional information about GNL can be found on its website at www.globalnetlease.com. 

Important Notice

The statements in this press release that are not historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. The words such as “may,” “will,” “seeks,” “anticipates,” “believes,” “expects,” “estimates,” “projects,” “potential,” “predicts,” “plans,” “intends,” “would,” “could,” “should” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the risks that any potential future acquisition or disposition by the Company is subject to market conditions, capital availability and timing considerations and may not be identified or completed on favorable terms, or at all. Some of the risks and uncertainties, although not all risks and uncertainties, that could cause the Company’s actual results to differ materially from those presented in the Company’s forward-looking statements are set forth in the “Risk Factors” and “Quantitative and Qualitative Disclosures about Market Risk” sections in the Company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and all of its other filings with the U.S. Securities and Exchange Commission, as such risks, uncertainties and other important factors may be updated from time to time in the Company’s subsequent reports. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.

Contacts:
Investor Relations
Email: investorrelations@globalnetlease.com
Phone: (332) 265-2020

Footnotes:
¹ Includes a $210 million mortgage that is being assumed by RCG Ventures, LLC.
² Includes $256 million and $210 million mortgages being assumed by RCG Ventures, LLC.

FAQ

How much did GNL receive from the final phase of its multi-tenant portfolio sale?

GNL received approximately $313 million in gross proceeds from the sale of 12 properties in the final phase of the multi-tenant portfolio sale.

What is the total value of GNL's multi-tenant portfolio sale?

The total gross proceeds from the complete multi-tenant portfolio sale reached $1.8 billion.

How much annual savings will GNL achieve from the multi-tenant portfolio sale?

GNL expects to generate approximately $6.5 million in recurring annual G&A savings, plus additional cash savings from reduced capital expenditures.

What will GNL do with the proceeds from the portfolio sale?

GNL plans to use the net proceeds to reduce leverage by paying down the outstanding balance on its Revolving Credit Facility.

How will the portfolio sale affect GNL's business strategy?

The sale transforms GNL into a pure-play single-tenant net lease REIT, simplifying operations and positioning the company to pursue an investment-grade credit rating.