Executive Summary

Q1 2025 revenue fell to $132.4M from $147.9M YoY and $199.1M in Q4 2024, driven by asset dispositions tied to the multi-tenant portfolio sale; GAAP net loss widened on impairment and sale accounting, while AFFO per share was $0.29 .
Versus S&P Global consensus, GNL materially missed revenue ($132.4M vs $187.9M) and modestly missed Primary EPS (-$0.14 vs -$0.12); GAAP diluted EPS was -$0.87 due to non-GAAP items and discontinued operations accounting *.
Strategic execution advanced: phase 1 of the multi-tenant portfolio sale closed ($1.1B gross; $850M revolver paydown), net debt cut by $833M in Q1, Net Debt/Adj EBITDA improved to 6.7x, and guidance (AFFO $0.90–$0.96; leverage 6.5x–7.1x) was reaffirmed .
Catalysts ahead: closing remaining sale tranches by end of Q2 2025, potential ratings trajectory (Credit Watch Positive), ongoing $300M buyback deployed at ~12% AFFO yield per management commentary .

What Went Well and What Went Wrong

What Went Well
- Closed first phase (59 unencumbered properties) of multi-tenant portfolio sale on schedule, generating $1.1B gross proceeds and paying down $850M on the revolver .
- Balance sheet strengthening: net debt reduced by $833M in Q1; Net Debt/Adj EBITDA improved to 6.7x; liquidity ~$499M and 91% fixed-rate debt at ~4.2% WAC .
- Leasing execution: 826K sq ft leased; renewal spreads +8.2%; WALTs of 6.6 years for renewals and 5.0 years for new leases; investment-grade tenant exposure at 60% of annualized straight-line rent .
What Went Wrong
- Revenue decline (-10.5% YoY) and AFFO/share down to $0.29 (from $0.33 in Q1 2024) reflecting dispositions; GAAP net loss widened on $60.3M impairments and sale accounting plus $7.1M goodwill impairment .
- A large revenue miss vs consensus (actual $132.4M vs $187.9M estimate), and Primary EPS miss (-$0.14 actual vs -$0.12 estimate), underscoring near-term dilution from asset sales before G&A savings accrue *.
- Temporary occupancy impact from Contractors Steel vacancy (~1.4M sq ft, ~1% of straight-line rent); tenant did not pay Q1 rent, though assets were sold subsequently and pro forma occupancy would be ~98% .

Financial Results

Metric	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$147.9	$196.6	$199.1	$132.4
GAAP Diluted EPS ($)	-$0.15	-$0.33	-$0.08	-$0.87
NAREIT FFO per diluted share ($)	$0.24	$0.22	$0.28	$0.14
Core FFO per diluted share ($)	$0.25	$0.23	$0.30	$0.15
AFFO per diluted share ($)	$0.33	$0.32	$0.34	$0.29

Margin Metric	Q3 2024	Q4 2024	Q1 2025
EBITDA Margin %	79.26%*	73.78%*	73.54%*
Net Income Margin %	-47.33%*	-3.28%*	-143.02%*

Values retrieved from S&P Global.*

Segment operating performance (Q1 2025 vs Q1 2024):

Segment	Revenue Q1’25 ($000)	NOI Q1’25 ($000)	Revenue Q1’24 ($000)	NOI Q1’24 ($000)
Industrial & Distribution	58,009	52,752	61,994	57,350
Retail (Single-Tenant)	36,958	33,052	42,595	37,497
Office	37,448	32,658	35,096	29,838
Multi-Tenant Retail	—	—	8,195	5,399

KPIs and balance sheet:

KPI	Q4 2024	Q1 2025
Occupancy	97%	95% reported; ~98% pro forma after asset sales
Weighted Avg Lease Term	6.2 yrs	6.3 yrs
Investment-Grade Exposure	61%	60%
Liquidity ($M)	$492.2	$499.1
Net Debt ($B)	$4.6	$3.7
Net Debt / Adjusted EBITDA	7.6x	6.7x
% Fixed-Rate Debt	91%	91%
Cash NOI ($M)	$161.2	$150.8
Adjusted EBITDA ($M)	$150.3	$138.4

Non-GAAP reconciliation drivers (Q1 2025): Impairment charges $60.3M; goodwill impairment $7.1M; discontinued operations adjustments affected EBITDA/FFO/AFFO; AFFO per diluted share $0.29 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
AFFO per Share	FY 2025	$0.90–$0.96 (initiated Q4’24)	$0.90–$0.96 (reaffirmed Q1’25)	Maintained
Net Debt / Adjusted EBITDA	FY 2025	6.5x–7.1x	6.5x–7.1x	Maintained
Common Dividend (Quarterly)	Q1 2025	$0.275/share (paid Jan 16)	$0.190/share starting Q2 (declared Apr 1)	Lowered
Share Repurchase Program	2025	$300M program announced Q4’24	Active; 7.9M shares repurchased by May 2 at $7.50 avg ($59.4M)	Executing

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3’24 and Q4’24)	Current Period (Q1’25)	Trend
Deleveraging/Dispositions	Pipeline ~$950M; net debt down $445M; reaffirmed guidance	Phase 1 multi-tenant sale closed; net debt -$833M in Q1; total closed+pipeline $2.1B	Accelerating
Ratings trajectory	Noted deleveraging toward stronger credit metrics	Fitch and S&P placed GNL on Credit Watch Positive	Improving
Share repurchases	Program introduced ($300M)	7.9M shares repurchased at ~$7.50; ~12% AFFO yield emphasized	Active, accretive
Tariffs/macro volatility	Monitoring macro; hedging discussed in 2024	Management cites tariffs; robust FX hedging for 3–4 years	Risk-managed
Portfolio mix/sector exposure	Occupied office sales, reduce non-core office	Reducing C-store/gas exposure; granular office/retail dispositions ahead	Portfolio optimization
GSA/Regulatory	N/A	GSA revoked termination; lease remains in force	Positive tenant development

Management Commentary

“The first quarter of 2025 was a pivotal period… streamline our portfolio, strengthen the balance sheet, and enhance financial flexibility… We look forward to completing the final two phases of the multi-tenant portfolio sale in the second quarter” — CEO Michael/Edward Weil .
“Net proceeds were used to materially reduce leverage through a paydown of $850 million on GNL's revolving credit facility… We remain on schedule to complete the sale of the 41 encumbered properties by the end of the second quarter of 2025” — CEO .
“We intend to continue share repurchases, taking advantage of the compelling opportunity to buy back shares at an AFFO yield of approximately 12%” — CEO .
“As of the end of the first quarter of 2025, 91% of our debt is fixed… weighted average interest rate stood at 4.4%… interest coverage 2.5x” — CFO .
“Including the sale of [Contractors Steel] properties, our pro forma first quarter of 2025 occupancy would be 98%” — CEO .

Q&A Highlights

Disposition pipeline: beyond multi-tenant sale, ~$300M additional non-core dispositions across sectors/geographies; strategy consistent with 2024 efforts .
Tariff/macro impact on pricing: management expects continued sales to local private/1031 buyers; broker relationships supporting execution; pricing environment comparable to 2024 .
Buyback hurdle: opportunistic execution at ~12% AFFO yield; underscores perceived NAV discount; expectation that Q2 results and execution narrow trading gap .
Capital allocation: priority on leverage reduction and buybacks; asset acquisitions not compelling currently; reaffirmed leverage guidance .
Ratings: conversations confidential; Credit Watch Positive noted; investment-grade access seen as a longer-term 2026 lever; 2025 guidance already reflects debt costs .
Contractors Steel: tenant paid no rent in Q1; assets sold, aiding occupancy normalization .

Estimates Context

Metric	S&P Consensus (Q1 2025)	Actual (Q1 2025)	Outcome
Primary EPS ($)	-0.12	-0.14	Miss
Revenue ($USD)	187,931,800	132,415,000	Miss

Values retrieved from S&P Global. Actual revenue and EPS per company release . Note: Company-reported GAAP diluted EPS was -$0.87 due to non-GAAP adjustments and discontinued operations accounting .

Where estimates may need to adjust:

Near-term consensus likely to reflect lower revenue/FFO run-rate given asset sales and discontinued operations, with partial offset from expected G&A savings post full sale completion .
AFFO guidance reaffirmation ($0.90–$0.96) suggests back-half stabilization after Q2 closings; models should incorporate lower interest expense, lower net debt, and G&A reductions .

Key Takeaways for Investors

Disposition-led deleveraging is the core narrative: phase 1 closed, phase 2/3 expected by end-Q2; net leverage already stepped down; monitor closing execution and proceeds deployment .
Expect estimate resets near term: Q1 revenue/Primary EPS misses signal transitional dilution before full G&A savings; second-half profile should improve post closings and with lower share count * .
Buybacks at double-digit AFFO yield are accretive: $59.4M deployed; with leverage targets intact, continued repurchases can drive per-share metrics; watch authorization utilization pace .
Ratings trajectory is improving: Credit Watch Positive and reduced net debt support cost of capital tailwind; potential upgrade would be a medium-term catalyst .
Portfolio quality remains a differentiator: 60% investment-grade tenants, WALTs ~6.3 years, CPI-linked leases (~18.7%) provide embedded rent growth .
Sector mix optimization underway: proactive reduction in C-store/gas exposure, selective office sales, and leasing wins improve durability .
Trading implications: in the short term, stock may be sensitive to Q2 sale completion and visibility to G&A savings; medium-term thesis hinges on balance sheet strength, cost of capital improvement, and accretive capital returns .

Notes and Citations:

Q1 2025 press release and 8-K details including revenue, EPS, non-GAAP reconciliations, KPIs, segments, debt metrics ; .
Earnings call prepared remarks and Q&A .
Prior quarter press releases for trend (Q3/Q4 2024) ; .
Additional Q1 2025 relevant press releases (GSA lease, dividend) .
S&P Global estimates used for consensus comparison (values without citations are from S&P Global).*

Global Net Lease, Inc. (GNL)·Q1 2025 Earnings Summary