Global Net Lease, Inc. (NYSE:GNL) Q3 2019 Earnings Conference Call - Final Transcript

Nov 08, 2019 • 11:00 am ET

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Global Net Lease, Inc. (NYSE:GNL) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] Today's first question comes from Ben Zucker of Aegis Capital. Please go ahead.

Analyst
Ben Zucker

Thanks for taking my questions and congratulations on posting some solid improvements in your core operating fundamentals. Real quickly that impairment charge of $6.5 million $6.4 million what asset or assets was that related to?

Executive
James L. Nelson

So the property Achmea in the Netherlands we actually sold it during the fourth quarter. And that was a property they were still paying rent. The lease extended for four years. But they were going to be moving out and we thought that the best option for us was to sell the property now and recycle the capital.

Analyst
Ben Zucker

Okay great. And while we're talking about the Netherlands could you just quickly give us kind of your view of the total market opportunity in the U.S. versus abroad currently? I think that your acquisitions over the first six months of the year had a strong if not exclusive bias to the U.S. But it looks like some of your 3Q and subsequent activity has picked up overseas a little bit. So just kind of wondering how you're viewing the comparative landscape right now between the 2?

Executive
Christopher Masterson

Sure. So -- I mean obviously we're still looking at both the U.S. and Europe. And as you can see what we found so far has been primarily based in the U.S. where we found better deals. But there are some European acquisitions that are popping up on the radar and it's something that we're going to keep monitoring. But as you can see we have found some opportunities in Europe and outside the U.S.

Analyst
Ben Zucker

Very helpful. And so Chris you guys are really flushed with capital at the moment and I'm trying to get a sense of what kind of full deployment looks like for you guys. So how much cash as a percentage of total company equity do you guys generally look to hold for just kind of corporate liquidity purposes? Obviously this value is pretty elevated at the end of the quarter especially with the pace and volume of the ATM program you guys were utilizing. But I'm just trying to get a feel for how kind of -- how far we can stretch portfolio growth with you guys?

Executive
Christopher Masterson

Sure. So -- I mean probably a simple way to look at it is when we acquire properties we typically look to lever them at 50%. So if you're doing modeling purposes I would say to build that in. From a cash perspective like you mentioned we obviously were elevated at quarter-end. A lot of it had to do with the timing of capital raise and then some sales. But I think probably the easiest way to look at our cash position would be maybe to go back to some previous quarters. And in general we have been pretty consistent in that ballpark of about $100 million in cash on the balance sheet. So I think the historical is probably the best way to