Global Net Lease, Inc. (NYSE:GNL) Q4 2019 Earnings Conference Call - Final Transcript

Feb 26, 2020 • 11:00 am ET


Global Net Lease, Inc. (NYSE:GNL) Q4 2019 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Global Net Lease Fourth Quarter 2019 Earnings Conference call and Webcast. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Louisa Quarto, Executive Vice President. Please go ahead.

Louisa Hall Quarto

Thank you, operator. Good morning, everyone, and thank you for joining us for GNL's Fourth Quarter and Year-End 2019 Earnings Call. This call is being webcast in the Investor Relations section of GNL's website at Joining me today on the call to discuss the quarter's results are Jim Nelson, GNL's Chief Executive Officer; and Chris Masterson, GNL's Chief Financial Officer. The following information contains forward-looking statements, which are subject to risks and uncertainties. Should one or more of these risks or uncertainties materialize, actual results may differ materially from those expressed or implied by the forward-looking statements.

We refer all of you to our SEC filings, including the Form 10-K for the year ended December 31, 2018, filed on February 28, 2019, and all other filings with the SEC after that date for a more detailed discussion of the risk factors that could cause these differences.

Any forward-looking statements provided during this conference call are only made as of the date of this call. As stated in our SEC filings, GNL disclaims any intent or obligation to update or revise these forward-looking statements, except as required by law. Also during today's call, we will discuss non-GAAP financial measures, which we believe can be useful in evaluating the company and financial performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measures is available in our earnings release, supplement and Form 10-K, all of which are posted to our website at

I'll now turn the call over to our CEO, Jim Nelson.

James L. Nelson

Thank you, Louisa, and thanks again to everyone for joining us on today's call. 2019 was a busy year for Global Net Lease, as we acquired $576 million of high-quality real estate. We also refinanced much of our European debt at more advantageous rates, recast and upsized our corporate credit facility and continued increasing our portfolio exposure to Industrial and Distribution assets, while opportunistically accessing capital markets to fund acquisitions. We are very pleased with the acquisitions we made during the year, 65% of which were Industrial or Distribution and 35% of which were Office properties based on acquisition price. All acquired properties in 2019 were in the United States and Canada. The weighted average cap rate for these acquisitions was 7.4%, with a weighted average remaining lease term of 12.5 years at closing. The fourth quarter was particularly active as we closed $252 million worth of transactions that will eventually contribute over $18 million of annualized straight-line rent to our portfolio.

All of these acquisitions closed in December, and as a result, did not meaningfully contribute to our fourth quarter