Global Net Lease Reports $200.3 Million Net Loss and Revenue Decline in Latest Quarter

Global Net Lease, Inc. reported significant financial challenges in its latest quarterly filing for the period ending March 31, 2025. The company recorded a net loss attributable to common stockholders of $200.3 million, a substantial increase from a loss of $34.7 million in the same period last year. Revenue from tenants decreased to $132.4 million, down from $147.9 million in the prior year, reflecting a decline across its segments, particularly in the Retail and Industrial & Distribution categories. The company attributed these losses to impairment charges totaling $60.3 million, primarily related to 69 properties, and a loss on the sale of real estate investments.

In terms of operational changes, Global Net Lease completed the first phase of a significant strategic disposition, selling 59 multi-tenant retail properties for approximately $1.78 billion. This transaction is part of a broader plan to divest from its Multi-Tenant Retail Portfolio, which is expected to close in two additional phases during the second quarter of 2025. As of March 31, 2025, the company owned 1,045 properties, with a total of 51.3 million rentable square feet, and a leasing rate of 95%. The portfolio is geographically concentrated, with 76% of properties located in the U.S. and Canada.

The company’s financial position showed a decrease in total assets, which fell to $5.79 billion from $6.96 billion at the end of 2024. Total liabilities also decreased to $3.87 billion, down from $4.77 billion, largely due to the paydown of debt following the property sales. The company’s cash and cash equivalents stood at $147 million, a slight decline from $159.7 million at the end of the previous year. The reduction in cash flow from operations, which provided $59.2 million in the latest quarter, covered only 79% of the dividends paid, indicating a tightening liquidity position.

Looking ahead, Global Net Lease plans to continue its strategic disposition initiatives to reduce leverage and improve its financial health. The company has entered into purchase and sale agreements totaling approximately $188.8 million, excluding the remaining properties in the Multi-Tenant Retail Disposition. Additionally, the board has authorized a share repurchase program of up to $300 million, reflecting a commitment to return value to shareholders while managing its capital structure. However, the company has also announced a reduction in its quarterly dividend from $0.275 to $0.190 per share, aimed at conserving cash for operational needs and debt reduction.