Global Net Lease, Inc. (GNL) has entered into a binding agreement to sell its multi-tenant portfolio of 100 non-core properties to a subsidiary of RCG Ventures Holdings, LLC for approximately $1.8 billion. This strategic transaction is expected to accelerate GNL's deleveraging initiative, positioning the company as a pure-play, single-tenant net lease company.
Key Point: The sale of GNL's multi-tenant portfolio for $1.8 billion at an 8.4% cash cap rate will significantly reduce the company's debt, enhance financial flexibility, and lower its cost of capital.
The transaction is expected to have numerous benefits for GNL, including:
- Significant debt reduction: Expected to decrease Net Debt to Adjusted EBITDA to a range of 6.5x to 7.1x post-transaction
- Improved liquidity position: Enhancing GNL's ability to pursue an investment-grade credit rating
- Transformation into a pure-play, single-tenant net lease company: Refining GNL's strategy and generating approximately $6.5 million in recurring annual G&A savings
- Enhanced portfolio metrics: Boosting occupancy to 98%, extending weighted average remaining lease term to 6.4 years, and increasing the proportion of investment-grade tenants to 66%
The transaction is expected to close in three phases by the end of Q2 2025, pending approval of the respective loan assumptions and other customary closing conditions
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