Global Net Lease, Inc. (NYSE: GNL)

Sector: Real Estate Industry: REIT - Diversified CIK: 0001526113
Market Cap 570.02 Mn
P/B 0.43
P/E 11.86
P/S 2.57
ROIC (Qtr) 2.39
Div Yield % 22.36
Rev 1y % (Qtr) -12.73
Total Debt (Qtr) 2.93 Bn
Debt/Equity (Qtr) 1.72
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About

Global Net Lease, Inc. (GNL) is a real estate investment trust (REIT) that operates in the commercial real estate industry, specifically focusing on acquiring and managing a global portfolio of income-producing net lease assets across the United States, Western, and Northern Europe. The company's main business activities include acquiring, managing, and leasing commercial real estate properties to tenants with long-term leases. GNL's portfolio consists of a diversified range of properties, including industrial and distribution facilities, multi-tenant...

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Investment thesis

Bull case

  • Operating cash flow of 242.03M provides strong 20.51x coverage of stock compensation 11.80M, indicating sustainable incentive practices.
  • Strong operating cash flow of 242.03M provides 4.55x coverage of SG&A expenses 53.14M, showing efficient operational cost management.
  • Cash reserves of 202.61M provide ample 3.45x coverage of acquisition spending 58.76M, enabling strategic growth opportunities.
  • Strong free cash flow of 1.81B provides 30.83x coverage of acquisition spending 58.76M, indicating disciplined M&A strategy.
  • Operating cash flow of 242.03M provides strong 34.30x coverage of tax liabilities 7.06M, showing excellent fiscal position.

Bear case

  • Operating cash flow of 242.03M barely covers its investment activities of 1.63B, with a coverage ratio of 0.15, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 242.03M provides thin coverage of dividend payments of (213.50M) with a -1.13 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 1.81B provides weak coverage of capital expenditures of (1.57B), with a -1.15 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (40.51M) show weak coverage of depreciation charges of 260.86M, with a -0.16 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 260.86M relative to operating cash flow of 242.03M, which is 1.08x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the REIT - Diversified
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VICI Vici Properties Inc. 30.39 Bn 11.76 8.24 16.76 Bn
2 WPC W. P. Carey Inc. 16.39 Bn 35.15 9.55 8.72 Bn
3 BNL Broadstone Net Lease, Inc. 2.77 Bn 40.51 8.39 2.34 Bn
4 SAFE Safehold Inc. 1.15 Bn 10.07 2.99 4.59 Bn
5 AAT American Assets Trust, Inc. 1.13 Bn 20.37 2.60 1.69 Bn
6 ESRT Empire State Realty Trust, Inc. 0.91 Bn 16.82 1.33 2.06 Bn
7 CTO CTO Realty Growth, Inc. 0.60 Bn 6,383.33 35.13 0.60 Bn
8 GNL Global Net Lease, Inc. 0.57 Bn 11.86 2.57 2.93 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.40 0.68
EV to Cash from Ops. EV/CFO 16.07 -30.44
EV to Debt EV to Debt 0.65 1.31
EV to EBIT EV/EBIT 20.57 52.23
EV to EBITDA EV/EBITDA 11.93 6.51
EV to Free Cash Flow [EV/FCF] EV/FCF 9.17 21.01
EV to Market Cap EV to Market Cap 3.35 6.71
EV to Revenue EV/Rev 8.61 9.65
Price to Book Value [P/B] P/B 0.43 0.98
Price to Earnings [P/E] P/E 11.86 385.22
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -1.26 -1.16
Dividend Payout Ratio % Div Payout % (Qtr) -65.50 90.61
Dividend per Basic Share Div per Share (Qtr) 0.85 1.00
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 10.30 -0.65
Interest Coverage Int. cover (Qtr) -0.18 0.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 203.32 -246.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 12.08 49.26
Dividend Growth (1y) % Div 1y % (Qtr) -28.33 2.40
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -134.73 -20.77
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -32.04 -2.00
EBIT Growth (1y) % EBIT 1y % (Qtr) -135.25 -20.80
EBT Growth (1y) % EBT 1y % (Qtr) -63.78 -13.26
EPS Growth (1y) % EPS 1y % (Qtr) -84.42 -38.39
FCF Growth (1y) % FCF 1y % (Qtr) 127.03 -62.73
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -9.07 -1.85
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.12 0.11
Cash Payout Ratio Cash Payout (Qtr) -0.16 0.34
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 1.72 0.82
Interest Cover Ratio Int Coverage (Qtr) -0.18 0.73
Times Interest Earned Times Interest Earned (Qtr) -0.18 0.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 38.20 38.58
EBIT Margin % EBIT Margin % (Qtr) -7.01 10.26
EBT Margin % EBT Margin % (Qtr) -46.73 -13.89
Gross Margin % Gross Margin % (Qtr) 87.10 59.91
Net Profit Margin % Net Margin % (Qtr) -56.10 -17.09