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
Executive
Christopher Masterson

look at it right now.

Analyst
Ben Zucker

That's helpful. And then real quickly lastly just a little bit of housekeeping. With the preferred stock sales do you have any idea kind of is the pace of sales that we saw in 3Q is that something that you would be extrapolating out as we're trying to think about how the preferred interest expense line item should be moving? Or is this something that's a little bit more intermittent than that?

Executive
Christopher Masterson

Well I'd say that's very hard to say. I mean when it comes to issuing equity it's going to be difficult to necessarily project and we're going to evaluate kind of as needed and as the market is there. [Technical Issues]

Analyst
Ben Zucker

Understood. Well, that's it for me. So thanks for taking my questions.

Executive
James L. Nelson

Thanks.

Operator
Operator

And our next question today comes from Mitch Germain of JMP Securities. please go ahead.

Analyst
Mitch Germain

Thank you, Chris obviously you've been pretty opportunistic in using the European markets for some funding. You've got about a 60-40 mix. Are you kind of tapped out? Or is that a market that is -- or do you have to add some additional assets to be able to use European debt going forward?

Executive
Christopher Masterson

Well from a European debt perspective we do have the ability to draw on the credit facility in euros and pounds but it's also something that we want to make sure that we don't go too far one direction in a currency if we don't have assets to match up with it. Right now I mean I think we're comfortable where we stand. But we do have opportunities there if we need to tap into them.

Analyst
Mitch Germain

Got you. You talked about the Family Dollar sales reducing your exposure in retail but you've still got about 5% retail and can potentially opportunistically use that retail to buy industrial. So I'm curious about your decision to conclude any sales in that segment for the time being?

Executive
Christopher Masterson

Well at this point all of the tenants that we have in the retail space are performing. We're happy with them. We're going to obviously keep evaluating them. And if anything changes then we may decide to make decisions but right now we're happy with what we have in the retail space.

Analyst
Mitch Germain

Okay. And then just curious about the competitive landscape. Obviously everybody wants industrial assets. I guess you have the ability to do a sale-leaseback deal that's a little bit unique in both U.S. and Europe. But I'm curious about your ability to source transactions? And how important are the local demographics in terms of your underwriting? Or you're really just talking -- looking more at credit lease term and other factors like that?

Executive
Christopher Masterson

Well I mean honestly we look at all of it. If any of the pieces are lacking or have problems then typically we probably wouldn't be able to close on it. So it's really -- we have to look at the full picture when we make an acquisition.

Analyst
Mitch Germain

Got you. And