Global Net Lease, Inc.

Good day and welcome to Global Net Lease Inc. Second Quarter 2025 Earnings Conference Call. All participants will be in the listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone form. To withdraw your questions, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Jordan Schoenfeld, Assistant Vice President at Global Net Lease. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining us for GNL's second quarter 2025 earnings call. Joining me today on the call is Michael Weil, GNL's Chief Executive Officer, and Chris Masterson, GNL's Chief Financial Officer. The following information contains forward-looking statements within the meaning of the Private Security Litigation and Reform Act of 1995. Please review the forward-looking and cautionary statement section at the end of our second quarter 2025 earnings release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today. As stated in our SEC filings, G&L 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 certain non-GAAP financial measures which we believe can be useful in evaluating the company's financial performance. Descriptions of those non-GAAP financial measures that we use, such as AFFO and adjusted EBITDA, and reconciliations of these measures to our results as reported in accordance with GAAP are detailed in our earnings release and supplemental materials. I'll now turn the call over to our Chief Executive Officer, Michael Weil. Mike?

Thanks, Jordan. Good morning and thank you all for joining us today. As you know, we've been steadfast in our commitment to drive durable, sustainable, long-term growth and value creation by optimizing our portfolio, reducing leverage, and lowering our cost of capital. In the second quarter of 2025, we once again delivered tangible progress towards these commitments, demonstrating the strength of our strategy and the discipline of our execution. During the second quarter of 2025, we completed the $1.8 billion sale of our multi-tenant retail portfolio to RCG Ventures, further positioning us as a pure play, single-tenant net lease company with streamlined operations and a higher quality portfolio. The sale of these assets is expected to reduce annual recurring G&A by approximately $6.5 million and generate $30 million in annual capital expenditure savings. The sale also eliminates the added complexity of managing multi-tenant retail assets. In addition, it delivered measurable improvements across key metrics, increasing occupancy to 98% from 97% as of year end 2024. expanding annualized NOI margin by 800 basis points, raising the percentage of leases with rent escalators to 88% from 81%, and enhancing liquidity to $1 billion from $492 million, reflecting the terms of the recently refinanced revolving credit facility. In line with our long-term debt reduction strategy, we used the net proceeds from the sale to materially reduce leverage, including a $1.1 billion pay down on GNL's revolving credit facility, in addition to the disposition of $466 million in secured mortgage debt that was assumed by RCG Ventures. The sale of our multi-tenant retail portfolio has already benefited GNL in multiple ways. Most notably, S&P Global upgraded our corporate credit rating to BBB+, from BBB, and raised our issuer level rating on our unsecured notes to investment grade BBB- from BBB+. These upgrades reflect the meaningful progress we've made in reducing leverage, enhancing liquidity, and strengthening our overall credit profile. The upgrades have also had an immediate impact on our cost of capital, lowering borrowing costs, and expanding opportunities to access the unsecured bond market. Building on that momentum, subsequent to the second quarter of 2025, we refinanced our revolving credit facility, securing improved pricing, enhanced liquidity, an extension of our weighted average debt maturity to 3.7 years from 2.9 years as of June 30, 2025, and increased balance sheet flexibility. The facility was met with strong demand, including heightened interest from both existing and new institutional lenders. relationships we look forward to growing over the long term. Since the third quarter of 2024, we've meaningfully lowered GNL's cost of borrowing on our revolving credit facility by 70 basis points, a direct result of the strategy we put in place to lower our cost of capital through disciplined deleveraging and favorable refinancing activity. We continue to make meaningful progress on a robust pipeline of non-core asset dispositions beyond the multi-tenant retail portfolio sale. In particular, we continue to strategically and opportunistically reduce our exposure to office assets that, while high quality and mission critical, we believe have not been fully valued by the market. It's important to note that our office portfolio continues to perform well with 100% rent collection from all tenants and the highest percentage of investment grade tenancy across our portfolio at 77%. Lease rollover remains minimal with expirations representing 2.5% or less of total portfolio square footage annually through 2029. We remain focused on active tenant retention particularly within the office portfolio. Since the start of 2024, we've addressed 14 near-term expirations. Of these, nine were renewed, three were sold, and one is in the final stages of renewal negotiations, and the last one is being finalized for sale. In total, these office renewals since the first quarter of 2024 were completed with an average lease renewal spread of approximately 7%. In addition, as discussed on last quarter's earnings call, we began proactively scaling back our exposure to the gas and convenience store sector. An industry facing structural shifts in consumer behavior, fuel demand, evolving transportation trends, and inconsistent operations. As of August 1st, 2025, we've sold approximately $108 million of assets in this category. reducing our portfolio exposure to 2.1% from 5.3%. Taking into account our disposition pipeline, we expect our exposure to this sector will be reduced to 1.4%. These actions reflect our disciplined portfolio management strategy and our continued focus on concentrating on higher growth sectors that are more closely aligned with our long-term vision. They also contribute to our deleveraging efforts and help reduce net debt to adjusted EBITDA. Year-to-date, our closed sales plus active disposition pipeline totals $2.2 billion. And since launching our disposition initiative in 2024, total closed sales plus our disposition pipeline has exceeded $3 billion. Importantly, we continue to take deliberate steps to further strengthen our capital structure and mitigate risk. During the second quarter of 2025, we fully paid off the remaining $459 million of secured debt that was maturing in 2025 and warehoused the amount on our revolving credit facility. This facility now offers enhanced pricing and significantly greater availability, as well as flexibility following the substantial pay down and refinancing completed after the multi-tenant retail portfolio sale. Looking ahead, we have no remaining 2025 debt maturities and $95 million of debt tied to retail assets expiring in 2026. Alongside our balance sheet initiatives, we've continued to repurchase our stock. Through August 1st, 2025, we've repurchased 10.2 million shares at a weighted average price of $7.52, totaling $77 million. capitalizing on the compelling opportunity to buy back shares at an AFFO yield of approximately 12%. We've remained disciplined in balancing share repurchases with leverage reduction. However, the lack of improvement in our share price, despite meaningful progress in improving our balance sheet and extending our debt maturities, has been, to say the least, disappointing and leads us to continue to evaluate multiple corporate initiatives. Turning to our portfolio, at the end of the second quarter of 2025, we owned over 900 properties, spanning over 44 million rentable square feet. The portfolio's occupancy grew to 98%, with a weighted average remaining lease term of 6.2 years. Geographically, 70% of our straight-line rent is earned in North America and 30% in Europe. Unlike many net lease peers, we believe our exposure to Europe differentiates us by providing diversification across economic cycles and the ability to capitalize on unique market opportunities not typically available in the US. The portfolio features a stable tenant base and a high quality of earnings with an industry leading 60% of tenants receiving an investment grade or implied investment grade rating. It has an annual contractual rental increase of 1.5%, which excludes the impact of 22.6% of the portfolio with CPI-linked leases that have historically experienced significantly higher rental increases. On the leasing front, we achieved positive spreads encompassing over 200,000 square feet with attractive renewal spreads that were 6% higher than expiring rents. New leases that were completed in the second quarter of 2025 have a weighted average lease term of 10 years, while renewals that were completed during this period have a weighted average lease term of 5.6 years. Our continued efforts to limit exposure to high-risk geography, asset types, tenants, and industries is a testament to our intentional diversification strategy and credit underwriting. No single tenant accounts for more than 5% of total straight-line rent and our top 10 tenants collectively contribute only 28% of total straight line rent. We carefully monitor all tenants in our portfolio and their business operations on a regular basis. I encourage everyone to look at the details of each segment of our portfolio, which can be found in our Q2 2025 investor presentation on our website. With that, I'll turn the call over to Chris to walk through the financial results and balance sheet matters in more detail.