GNLHIGH SIGNALFINANCIAL10-K

GNL underwent a major portfolio reduction, substantially decreasing revenue and assets while interest expense grew significantly despite the smaller asset base.

The company appears to have executed a significant disposition strategy, reducing its property portfolio from global operations to a more focused U.S.-centric approach with 820 properties versus the previously mentioned 989 properties from the RTL acquisition. The disconnect between substantially lower revenues and meaningfully higher interest expense suggests either unfavorable financing terms on remaining debt or timing mismatches in the disposition process.

Comparing 2026-02-25 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

GNL's financial profile contracted meaningfully across most metrics, with revenue declining substantially while operating income fell nearly in half. Despite the smaller asset base, interest expense grew notably, creating pressure on profitability and suggesting potential refinancing challenges or debt structure issues. The company maintained slightly higher cash levels, but operating cash flow declined, indicating the downsized portfolio may be generating less efficient cash conversion than the previous larger footprint.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+84%
$97.5M→$179.4M

Interest expense surged 84% — significant debt increase or rising rates materially impacting earnings.

Operating Income
P&L
-46.3%
$206.5M→$111.0M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Total Liabilities
Balance Sheet
-43.7%
$4.8B→$2.7B

Liabilities reduced 43.7% — deleveraging improves balance sheet strength and financial flexibility.

Revenue
P&L
-38.5%
$805.0M→$495.3M

Revenue declined 38.5% — significant demand weakness or market share loss warrants investigation.

Total Assets
Balance Sheet
-37.5%
$7.0B→$4.3B

Total assets contracted 37.5% — asset sales, write-downs, or balance sheet optimization underway.

Operating Cash Flow
Cash Flow
-25.6%
$299.5M→$222.8M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Stockholders Equity
Balance Sheet
-23.9%
$2.2B→$1.7B

Equity decreased 23.9% — buybacks or losses reducing book value, monitor solvency ratios.

Cash & Equivalents
Balance Sheet
+12.8%
$159.7M→$180.1M

Cash grew 12.8% — improving liquidity position supports investment and shareholder returns.

LANGUAGE CHANGES
NEW — 2026-02-25
PRIOR — 2025-02-27
ADDED
As of February 23, 2026, the registrant had 214,186,001 shares of c ommon stock outstanding .
These risks and uncertainties include the risks that any potential future acquisition or disposition by the Company is subject to market conditions, capital availability and timing considerations and may not be identified or completed on favorable terms, or at all.
) federal income tax purposes ( REIT ) that focuses on acquiring and managing a global portfolio of income producing net lease assets across the U.S.
As of December 31, 2025, we owned 820 properties consisting of 40.7 million rentable square feet, which were 97% leased, with a weighted-average remaining lease term of 6.1 years.
Based on the percentage of annualized rental income on a straight-line basis as of December 31, 2025, approximately 74% of our properties were located in the U.S.
In addition, as of December 31, 2025, our portfolio was comprised of 46% Industrial Distribution properties, 27% Retail properties and 27% Office properties.
The Multi-Tenant Retail Disposition During the six months ended June 30, 2025, we completed the sale of 99 of our multi-tenant retail properties (the Multi-Tenant Retail Portfolio ) to RCG Venture Holdings, LLC ( RCG ) pursuant to a purchase and sale agreement, dated as of February 25, 2025 (the Multi-Tenant Retail Disposition ).
The results of operations of the Multi-Tenant Retail Portfolio are currently reported as part of discontinued operations (see Note 2 Summary of Significant Accounting Policies and Note 3 Multi-Tenant Retail Disposition to our consolidated financial statements included in this Annual Report on Form 10-K for additional information).
As of December 31, 2025, we leased space to 231 different tenants doing business across 71 different industries.
Tenants and Leasing We are focused over the long term on acquiring strategically located properties in the U.S.
REMOVED
As of February 24, 2025, the registrant had 230,783,453 shares of common stock outstanding .
These risks and uncertainties include the risks that any potential future acquisition or disposition (including the RCG Multi-Tenant Retail Disposition (as defined below)) by the Company is subject to market conditions, capital availability and timing considerations and may not be identified or completed on favorable terms, or at all.
) federal income tax purposes that focuses on acquiring and managing a global portfolio of income producing net lease assets across the U.S., and Western and Northern Europe.
Historically, we focused on acquiring and managing a globally diversified portfolio of strategically-located commercial real estate properties, which consisted primarily of mission-critical, single tenant net-lease assets.
As a result of acquiring RTL in the quarter ended September 30, 2023, we acquired a diversified portfolio of 989 properties consisting of primarily necessity-based retail single-tenant and multi-tenant properties located in the U.S.
Until September 12, 2023, we were managed by Global Net Lease Advisors, LLC (the Advisor ), who managed our day-to-day business with the assistance of the property manager, Global Net Lease Properties, LLC (the Property Manager ), who managed and leased our properties to third parties.
Prior to September 12, 2023, the former Advisor and the Property Manager were under common control with AR Global Investments, LLC ( AR Global ), and these related parties had historically received compensation and fees for various services provided to us.
On September 12, 2023, we internalized our advisory and property management functions as well as the advisory and property management functions of RTL.
For additional information on the acquisition of RTL and the internalization of our advisory and property management services and RTL s advisory and property management functions, see Note 3 The Mergers and N ote 12 Related Party Transactions to our consolidated financial statements included in this Annual Report on Form 10-K.
As of December 31, 2024, we owned 1,121 properties consisting of 60.7 million rentable square feet, which were 97% leased, with a weighted-average remaining lease term of 6.2 years.
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