- Global Net Lease (GNL, Financial) completes a $1.8 billion multi-tenant portfolio sale.
- This strategic shift transitions GNL into a pure-play single-tenant net lease REIT.
- GNL expects to achieve $6.5 million in annual savings and aims for an investment-grade credit rating.
Global Net Lease, Inc. (GNL) has successfully completed the final phase of its multi-tenant portfolio sale to RCG Ventures, generating approximately $313 million in gross proceeds from 12 properties. This transaction marks the completion of a total $1.8 billion portfolio divestment, reshaping GNL's business model as it transitions into a pure-play single-tenant net lease real estate investment trust (REIT).
With the proceeds, GNL intends to reduce its financial leverage by paying down its Revolving Credit Facility. This strategic move is anticipated to result in $6.5 million in recurring annual savings in general and administrative expenses, alongside additional reductions in capital expenditures due to the streamlined management required for single-tenant properties.
The simplification of operations post-sale positions GNL to better focus on its core business. By eliminating the complexities associated with multi-tenant property management, GNL aims to enhance its efficiency, potentially securing an investment-grade credit rating. This shift is expected to lower the company's cost of capital, thus augmenting its financial stability and competitive edge in the capital-intensive REIT sector.
Michael Weil, CEO of GNL, commented, "Completing our multi-tenant portfolio sale is a significant step forward in our evolution into a streamlined single-tenant net lease company. This move strengthens our balance sheet, accelerates deleveraging, and aligns us with our strategic goals of growth and value creation for our shareholders."
