Global Net Lease announces progress on its 2024 strategic disposition plan

Global Net Lease announced continued progress on its 2024 strategic disposition plan, which it first detailed in its Q4. As of April 15, GNL‘s strategic disposition efforts have resulted in over $462M of transactions that are either closed or under agreement and expected to close by the end of the Q3. “We are very pleased to have built a robust disposition pipeline in the early stages of our strategic disposition effort and expect to identify additional opportunities throughout the year,” said Michael Weil, CEO of GNL. “We believe the 7.2% cash cap rate on the occupied dispositions offers proof of value of our primarily investment-grade portfolio and represents a significant premium compared to where GNL is currently trading on an implied cap rate basis. Additionally, we believe that the $124M of vacant dispositions that are closed or under agreement will eliminate approximately $3M of annualized operating expenses. We plan to use the net proceeds from these dispositions to pay down existing debt, including borrowings currently at a 7.3% variable interest rate on the USD portion of our revolving credit facility, while also addressing near-term lease and debt maturities to achieve our primary objective of reducing Net Debt to Adjusted EBITDA.”