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Section 1: 8-K (FORM 8-K)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported):  July 9, 2019

 

Global Net Lease, Inc.

(Exact Name of Registrant as Specified in Charter)

 

Maryland   001-37390   45-2771978

(State or other jurisdiction

of incorporation)

  (Commission File Number)  

(I.R.S. Employer

Identification No.)

 

405 Park Avenue, 3rd Floor
New York, New York 10022

(Address, including zip code, of Principal Executive Offices)

 

Registrant’s telephone number, including area code: (212) 415-6500

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

  

Securities registered pursuant to section 12(b) of the Act:
 
Title of each class   Trading Symbols   Name of each exchange on which registered
Common Stock, $0.01 par value   GNL   New York Stock Exchange
7.25% Series A Cumulative Redeemable Preferred Stock, $0.01 par value   GNL PR A   New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ¨

 

 

 

 

Item 7.01. Regulation FD Disclosure.

 

On July 9, 2019, Global Net Lease, Inc. (the “Company”) issued a press release, a copy of which is attached hereto as Exhibit 99.1. The information set forth in Item 7.01 of this Current Report on Form 8-K and in the attached Exhibit 99.1 is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information set forth in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended, regardless of any general incorporation language in such filing.

 

The statements in this Current Report on Form 8-K include statements regarding the intent, belief or current expectations of the Company and members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as “may,” “will,” “seeks,” “strives,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “should” or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements, including as a result of those factors set forth in the Risk Factors section of the Company’s Annual Report on 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. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, or revise forward-looking unless required by law.

 

Item 9.01.   Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit No.   Description
99.1   Press Release dated July 9, 2019.

  

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  GLOBAL NET LEASE, INC.  
       
       
Date: July 9, 2019 By:   /s/ James L. Nelson   
    Name:   James L. Nelson  
    Title: Chief Executive Officer and President  

 

 

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Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

 

Global Net Lease Provides Update on Acquisitions and Dispositions Closed during the Second Quarter

 

NEW YORK, July 9, 2019 /PRNewswire/– Global Net Lease, Inc. (NYSE: GNL) (“GNL” or the “Company”), a real estate investment trust focused on the acquisition of industrial, distribution and office properties leased long-term to high quality corporate tenants in select markets in the United States and Europe, today said it has closed on the acquisition of nine properties in the second quarter 2019, representing 1.6 million square feet for approximately $187.3 million.

 

The nine properties were purchased at a weighted average going-in capitalization rate1 of 7.09%, equating to a weighted average capitalization rate2 of 7.67%, with a weighted-average remaining lease term3 of 10.9 years. GNL funded the transactions with draws on its revolving credit facility, mortgage debt and net proceeds from its ATM programs.

 

During the second quarter, GNL opportunistically sold 63 properties in the United States for gross proceeds of $74.2 million, and one property in the United Kingdom for £7.2 million. The 64 properties include 62 Family Dollar retail stores and one industrial property in the United States, in addition to one office property in the United Kingdom.

 

“We are pleased to announce a very active second quarter for GNL,” said the Company’s Chief Executive Officer James Nelson. “We made a number of significant industrial, distribution and office acquisitions, all in the U.S., with a weighted average remaining lease term exceeding 10 years and all at what we believe to be favorable cap rates. At the same time, we continued to refine our mix of assets by making strategic dispositions of legacy assets and expect to use the net proceeds to acquire strategically important properties subject to long-term leases.”

 

Second Quarter Acquisitions Summary

Tenant Location Type Number of Properties

Square Feet

(in thousands)

Purchase Price4

(in millions)

Lease Term Remaining3

(in years)

Encompass Health Birmingham, AL Office 1 199 $74.5 13.7
Union Partners Aurora, IL; Dearborn, MI Industrial 2 390  $30.9 9.6
Sierra Nevada Corp. Colorado Springs, CO Industrial 1 60 $18.4 9.9
ComDoc North Canton, OH Distribution 1 108 $17.6 9.9
EQT Corporation Waynesburg, PA Industrial 1 127 $13.4 11.2
Heatcraft Tifton, GA Distribution 1 214 $11.5 9.0
Metal Technologies Bloomfield, IN Industrial 1 237 $10.9 15.0
Hanes/Leggett & Platt Calhoun, GA Distribution 1 276 $10.1 9.4
Totals/Averages     9 1,610 $187.3 10.9

 

____________________________

1Going-in capitalization rate is a rate of return on a real estate investment property based on the expected, cash rental income that the property will generate under its existing lease during the first year of the lease. Going-in capitalization rate is calculated by dividing the cash rental income the property will generate during the first year of the lease (before debt service and depreciation and after fixed costs and variable costs) and the purchase price of the property. Weighted-average going-in capitalization rate is based upon square feet as of the date of acquisition.

2 Average capitalization rate is a rate of return on a real estate investment property based on the expected, annualized straight-lined rental income that the property will generate under its existing lease. Average capitalization rate is calculated by dividing the annualized straight-lined rental income the property will generate during the first year of the lease (before debt service and depreciation and after fixed costs and variable costs) and the purchase price of the property. The weighted-average capitalization rate is based upon square feet as of the date of acquisition.

3 The weighted-average remaining lease term is based on square feet as of the date of acquisition.

4 Represents the contract purchase price and excludes capitalized acquisitions costs per GAAP.

 

 

 

 

About Global Net Lease, Inc.

 

Global Net Lease, Inc. (NYSE: GNL) is a real estate investment trust focused on the acquisition of industrial and office properties leased long-term to high quality corporate tenants in select markets in the United States and Europe. Additional information about GNL can be found on its website at www.globalnetlease.com.

 

Important Notice

 

The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to be materially different. Forward-looking statements may include, but are not limited to, statements regarding stockholder liquidity and investment value and returns. The words "anticipates," "believes," "expects," "estimates," "projects," "plans," "intends," "may," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those contemplated by such forward-looking statements, including those set forth in the Risk Factors section of GNL's most recent Annual Report on Form 10-K for the year ended December 31, 2018 filed February 28, 2019 and all other filings filed with the Securities and Exchange Commission after that date. Further, forward-looking statements speak only as of the date they are made, and GNL undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results, unless required to do so by law.

 

Contacts:

Investor Relations

[email protected]

(866) 902-0063

 

 

 

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