Executive Summary

Q3 2025 revenue was $121.013M and GAAP diluted EPS was -$0.32; AFFO per diluted share was $0.24. Management raised FY25 AFFO/share guidance to $0.95–$0.97 (from $0.92–$0.96), and reaffirmed Net Debt/Adj. EBITDA guidance of 6.5x–7.1x .
Balance sheet and liquidity improved materially YoY: liquidity reached $1.1B; Net Debt fell by $2.0B since Q3’24; weighted average interest rate declined to 4.2%; interest coverage rose to 2.9x .
S&P Global consensus for Q3 2025 was revenue $119.197M and Primary EPS -$0.07; actuals were $121.013M and Primary EPS -$0.0468, modest beats on both metrics (limited estimate depth: 4 revenue, 2 EPS)*. Values retrieved from S&P Global.
Catalysts: Fitch upgrade to investment-grade BBB-, $1.8B revolver refinancing (-35 bps spread), and accretive buybacks (12.1M shares YTD at ~$7.59) support cost of capital, liquidity, and AFFO/share trajectory .

What Went Well and What Went Wrong

What Went Well

Investment-grade upgrade: Fitch raised GNL to BBB- reflecting deleveraging, portfolio streamlining, and enhanced liquidity . CEO: “We are proud to have achieved a significant milestone…reflects the decisive actions we’ve taken to strengthen our balance sheet” .
Balance sheet and cost of capital: $1.8B revolver refinancing lowered spread by 35 bps and extended maturities; weighted avg interest rate declined to 4.2% (vs 4.8% in Q3’24) .
Leasing execution: >1.0M sq ft leased; renewal spread +26% (GE Aviation, GXO), with renewal WALT 7.3 years; office portfolio 100% rent collection and 77% investment-grade tenancy .

What Went Wrong

Top-line and non-GAAP compression YoY: Revenue $121.013M vs $138.666M and AFFO/share $0.24 vs $0.32, driven by asset dispositions (including the multi-tenant portfolio sale) .
GAAP loss persisted: Net loss attributable to common stockholders was -$71.051M (vs -$76.571M YoY), with $55.433M impairment charges and losses on dispositions .
Occupancy dipped to 97% (timing-related UK expiration), though management expects an uptick by year-end as leasing progresses .

Financial Results

Core P&L and Non-GAAP (All $USD unless noted)

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($M)	$138.666	$124.905	$121.013
Net Loss Attrib. to Common ($M)	$76.571	$35.079	$60.116
GAAP Diluted EPS ($)	-$0.33	-$0.16	-$0.32
AFFO per Diluted Share ($)	$0.32	$0.24	$0.24
Core FFO per Diluted Share ($)	$0.23	$0.03	$0.18
Adjusted EBITDA ($M)	$150.589	$113.427	$99.134

Margins (S&P Global)

Metric	Q1 2025	Q2 2025	Q3 2025
Net Income Margin %	-143.02%*	-19.33%*	-49.68%*
EBITDA Margin %	73.54%*	77.70%*	76.60%*

*Values retrieved from S&P Global.

Q3 2025 vs S&P Global Consensus

Metric	S&P Consensus	Actual
Revenue ($)	$119,197,250*	$121,013,000
Primary EPS ($)	-$0.07*	-$0.0468*
# of Revenue Estimates	4*	—
# of EPS Estimates	2*	—

*Values retrieved from S&P Global.

Segment Breakdown (NOI and Revenue from Tenants)

Segment	Revenue Q3 2024 ($K)	Revenue Q3 2025 ($K)	NOI Q3 2024 ($K)	NOI Q3 2025 ($K)
Industrial & Distribution	59,654	56,698	54,160	52,105
Retail (reclassified)	39,602	30,292	36,691	26,242
Office (reclassified)	35,029	34,023	30,068	29,997
Multi-Tenant Retail	4,381	—	2,583	—

KPIs and Balance Sheet Trajectory

KPI	Q1 2025	Q2 2025	Q3 2025
Occupancy (%)	95% (98% pro-forma)	98%	97%
WALT (years)	6.3	6.2	6.2
Investment-grade or implied IG (% of SL rent)	60%	60%	60%
Liquidity ($M)	$499.1	$1,000.0	$1,077.0
Revolver Capacity ($M)	$1,400	$1,100	$1,200
Net Debt ($M)	$3,700	$3,000	$2,864.8
Net Debt / Adj. EBITDA (x)	6.7x	6.6x	7.2x
Weighted Avg Interest Rate (%)	4.2%	4.3%	4.2%
Interest Coverage (x)	2.5x	2.7x	2.9x
Common Dividend / share (quarter)	—	—	$0.19
Share Repurchases (cumulative)	7.9M / $59.4M (as of 5/2)	10.2M / $76.9M (as of 8/1)	12.1M / $91.7M (as of 10/31)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
AFFO per Share	FY 2025	$0.92–$0.96 (issued Aug 6, 2025)	$0.95–$0.97	Raised
Net Debt / Adjusted EBITDA	FY 2025	6.5x–7.1x	6.5x–7.1x	Maintained

Note: Company does not provide net income guidance and does not reconcile forward-looking AFFO guidance to GAAP due to inherent difficulty quantifying certain items .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2)	Previous Mentions (Q-1)	Current Period (Q3)	Trend
Disposition program & deleveraging	Final phases of multi-tenant sale closed; Net Debt down $748M q/q; pipeline $2.2B at 8.4% cap, WALT 5 yrs	First phase closed ($1.1B); Net Debt down $833M q/q; pipeline $2.1B at 8.3% cap	~$3B cumulative sales; Net Debt down $2.0B since Q3’24; non-core single-tenant sold at 7.7% cash cap rate	Continued execution; accretive dispositions
Cost of capital & refinancing	$1.8B revolver refi; -35 bps spread; WAM to ~3.7 yrs	—	Revolver refi benefits reiterated; weighted avg rate 4.2%; coverage 2.9x	Improving
Credit rating	S&P upgrade (corp BB+, notes BBB-)	—	Fitch upgrade to BBB- (investment-grade)	Positive inflection
Share repurchases	10.2M shares, $76.9M (as of 8/1), AFFO yield-based	7.9M shares, $59.4M (as of 5/2)	12.1M shares, $91.7M (as of 10/31); ~12% AFFO yield cited	Ongoing, accretive
Leasing spreads & office	Renewal spread +6% (Q2); WALT 5.6 yrs	Renewal spread +8.2%; WALT 6.6 yrs	Renewal spread +26% (Q3); GE Aviation +37% renewal; office 100% rent collect; 77% IG	Stronger spreads
Occupancy	98%	95% headline; 98% pro-forma after vacant asset sales	97%; UK timing; expected to improve by YE	Slight dip; improving outlook
Acquisitions stance	Focus on dispositions; acquisitions less attractive vs cost of capital	Emphasis on streamlining and deleveraging	Acquisitions remain unattractive; buybacks more accretive at ~12% AFFO yield	Disciplined; opportunistic later
Macro/rates	—	—	Fed rate cuts viewed as tailwind for floating-rate revolver and REIT dividend appeal	Supportive backdrop

Management Commentary

CEO (Michael Weil): “We are particularly proud that our efforts to optimize the portfolio, lower leverage, and reduce our cost of capital has resulted in an upgrade of our corporate credit rating to investment-grade BBB-. A key driver… approximately $3 billion in sales… sold at a 7.7% cash cap rate… while reducing net debt by $2 billion since the third quarter of 2024.”
CEO on capital allocation: “We have used incremental disposition proceeds to capitalize on the opportunity to repurchase shares at an approximate 12% AFFO yield… more compelling than acquisitions in this environment.”
CFO (Chris Masterson): “AFFO was $53.2 million, or $0.24 per share… 87% of our debt is fixed… weighted average interest rate stood at 4.2%… interest coverage ratio was 2.9x… net debt to adjusted EBITDA was 7.2x.”
CEO on growth posture: “We are… preparing for the next phase of GNL… maximize value through growth… but buybacks are very accretive today.”

Q&A Highlights

Acquisitions vs. buybacks: Management reiterated acquisitions are not compelling given seller cap rate expectations vs. cost of capital; buybacks at ~12% AFFO yield are highly accretive; focus remains on completing the debt reduction program .
Leverage trajectory: Temporary uptick in Net Debt/Adj. EBITDA due to timing; confidence in ending FY within 6.5x–7.1x guidance range given pipeline closings and AFFO/share growth .
AFFO sequential bridge: Q4 midpoint implies ~$0.19/share; management attributes step-down to timing of dispositions closing through Q4 and expects to land within raised FY AFFO range .
Occupancy: Q/Q dip tied to UK expiration; active leasing expected to lift occupancy and straight-line rent by year-end .
Renewal spreads durability: Q3 renewal spread +26%; YTD ~18.5%; renewals often capture “catch-up” to market after long net-lease escalators (1–2%/yr) .
Balance sheet classification: Multi-tenant mortgage tranches tied to the disposed portfolio are no longer on balance sheet; prior quarter comparability holds .

Estimates Context

Q3 2025 beats: Revenue beat consensus by ~$1.8M ($121.013M vs $119.197M); Primary EPS beat by ~2.3 cents (-$0.0468 vs -$0.07). Limited coverage (4 revenue, 2 EPS)* suggests higher estimate dispersion risk. Values retrieved from S&P Global.
Implications: Raised FY AFFO/share guidance ($0.95–$0.97) likely drives upward revisions to AFFO models. With refinancing lowering interest costs and dispositions improving leverage, we expect analysts to recalibrate interest expense and net debt trajectory .

Key Takeaways for Investors

Execution remains the core story: ~$3B dispositions, $2B Net Debt reduction since Q3’24, investment-grade rating, and revolver refi collectively de-risk the balance sheet and support AFFO/share resilience .
Near-term modeling: Expect Q4 AFFO/share lower sequentially due to disposition timing; full-year should land in $0.95–$0.97 guided range per management .
Capital allocation: Buybacks at ~12% AFFO yield are prioritized over acquisitions; this is accretive to AFFO/share and NAV while maintaining balance sheet flexibility .
Leasing underpinning: Strong renewal spreads (+26% in Q3) and high IG tenant share (60%) bolster NOI durability amid portfolio simplification .
Rate tailwinds: Recent Fed cuts reduce floating-rate costs on the revolver; combined with investment-grade status, this should modestly improve interest expense and support liquidity .
Watch items: Impairment and disposition losses (non-cash/non-core) continue to drive GAAP volatility; focus remains on AFFO/FFO metrics for operational performance .
Potential catalysts: Further asset sales, incremental buybacks, and leasing wins (UK backfill) could tighten leverage metrics and lift investor confidence .

All document-based figures are cited; non-GAAP definitions and reconciliations are provided in company materials .
Values marked with an asterisk (*) are retrieved from S&P Global.

Global Net Lease, Inc. (GNL)·Q3 2025 Earnings Summary