Global Net Lease Q3 revenue falls, raises AFFO guidance

Reuters
Nov 06
Global Net Lease Q3 revenue falls, raises AFFO guidance 

Overview

  • Net lease REIT Global Net Lease's Q3 revenue decreased due to asset dispositions

  • Company raised full-year AFFO per share guidance to $0.95-$0.97

  • Global Net Lease's credit rating upgraded to investment-grade BBB-

Outlook

  • Company raises full-year AFFO per share guidance to $0.95-$0.97 from $0.92-$0.96

  • Company maintains Net Debt to Adjusted EBITDA guidance at 6.5x to 7.1x

Result Drivers

  • ASSET DISPOSITIONS - Revenue and AFFO decline attributed to asset dispositions, including multi-tenant retail portfolio sale

  • REFINANCING - $1.8 bln refinancing of revolving credit facility lowered cost of capital and extended debt maturity

  • SHARE REPURCHASE - Repurchased 12.1 mln shares at weighted average price of $7.59, totaling $92 mln, leveraging AFFO yield

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue From Tenants

$121.01 mln

Q3 Net Income

-$71.05 mln

Q3 Core FFO

$39.49 mln

Q3 NAREIT FFO

$33.75 mln

Q3 Adjusted FFO Per Share

$0.24

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the commercial reits peer group is "buy"

  • Wall Street's median 12-month price target for Global Net Lease Inc is $9.00, about 16.1% above its November 4 closing price of $7.55

Press Release: ID:nGNX7PYWNk

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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