Global Net Lease, Inc.

Greetings and welcome to the Global Net Lease, Inc. Q1 2026 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jordan Schoenfeld, Vice President of Corporate Strategy. Thank you. You may begin.

Thank you. Good morning, everyone, and thank you for joining us for GNL's first quarter 2026 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 Reform Act of 1995. Please review the forward-looking and cautionary statement section at the end of our first quarter 2026 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, 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 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. Before we review our first quarter 2026 results, I'd like to discuss our planned strategic acquisition of Motive Industrial, which we announced earlier this week. This transaction is a direct reflection of the strategy we outlined on our last earnings call and the tangible progress we've already made towards implementing it. Following a transformational year for G&L in 2025, when we took deliberate actions to significantly reduce leverage, strengthen our credit profile, and improve the overall quality of our portfolio, we are now positioned to focus on the disciplined recycling of capital into high-quality industrial and retail assets. This includes pursuing selective and opportunistic asset sales, particularly those that reduce our office exposure, while redeploying proceeds accretively into single tenant industrial and retail investments. The motive transaction would do just that, as we believe the closing of the transaction will advance the durability and quality of our earnings profile by adding a high quality portfolio of industrial net lease assets across the United States. supported by long-duration leases and creditworthy tenants line well with our investment criteria. The transaction is expected to be immediately accretive with approximately 4% accretion to AFFO per share, including meaningful cost synergies through the elimination of duplicative G&A. Importantly, the transaction is structured as an all-stock acquisition with a fixed exchange ratio of 1.975 to lock in the four percent accretion making it leverage neutral and requiring no new external capital we believe this structure will preserve the balance sheet strength we've established while allowing us to maintain meaningful flexibility to pursue future strategic growth opportunities motives long duration leases have a weighted average lease term of 15 years include 2.4 percent annual rent escalations and are supported by a well-recognized tenant base of leading global brands, with approximately 45% of annual base rent derived from investment-grade or implied investment-grade tenants. On a pro forma basis, the acquisition is expected to extend our weighted average lease term from 5.9 to 6.7 years, increase our industrial exposure from 47% to 50%, and reduce our office concentration from 26% to 24%, which will collectively strengthen our portfolio mix, expanding our geographic reach across key U.S. industrial markets, and enhancing the overall stability of our combined platform. We're very excited about this transaction, which we expect to close in the third quarter of this year. In addition to the motive transaction, we're actively engaged in other transaction activity consistent with our corporate strategy. Reflecting the mission critical nature of our office portfolio, we're under contract to sell a 33,000 square foot office building leased to the General Services Administration for $13 million at a 7.2% cash gap rate, with closing expected in the second quarter of 2026. Beyond this transaction, We currently have additional office properties in our portfolio that we believe may present a similar disposition opportunity going forward as we continue to focus on lowering our office exposure. At the same time, we're under contract to acquire an approximate 100,000 square foot single tenant industrial asset occupied by a Fortune 50 investment grade tenant for $14 million at an 8.2% cash cap rate. which would further demonstrate our ability to prudently execute our creative recycling strategy into higher quality assets that we believe will generate more compelling risk-adjusted returns. The asset features a 2031 lease maturity, and we believe our longstanding relationship with the tenant will be advantageous as we're already in simultaneous discussions regarding an early long-term lease extension. We're actively negotiating the sale of additional office assets and look forward to providing updates as transactions advance. Our pipeline of redeployment opportunities continues to grow, and we believe we're well positioned to execute on a leverage-neutral basis in a way that drives earnings growth while preserving the balance sheet quality we've established. Our acquisition approach remains disciplined and highly selective, focused on high-quality income-generating assets that align with our long-term strategy. In addition to our capital recycling strategy, we continue to evaluate the most effective uses of our disposition proceeds, including opportunistic share repurchases. Since the beginning of our share repurchase program through May 1, 2026, we've repurchased 19.7 million shares at a weighted average price of $8.05, totaling $158.2 million. We've been deliberate and opportunistic in how we've executed this program, and we remain disciplined in balancing these repurchases with our continued focus on leverage reduction and the redeployment of capital into higher quality assets. Turning to our portfolio, at the end of the first quarter of 2026, we owned 809 properties totaling 40 million rentable square feet. Our portfolio was 97% occupied, an increase from 95% in the first quarter of 2025, with a weighted average remaining lease term of 5.9 years. Specifically, our office occupancy increased to 99% from 95% in the first quarter of 2025, primarily driven by the disposition of a $45 million vacant office property, which also eliminates over $1 million of annualized negative NOI drag. Our office portfolio continues to perform well, supported by 100% rent collection and the highest proportion of investment-grade tenants within our portfolio. GNL's portfolio features a stable tenant base and high quality of earnings, with an industry-leading 64% of tenants carrying an investment grade or implied investment grade rating, up from 60% in the first quarter of 2025. Our average annual contractual rental increase is 1.5%, excluding the impact of 20.1% of the portfolio, with CPI-linked leases that have historically experienced significantly higher rental increases. On the leasing front, we delivered strong results across the portfolio during the first quarter, reflecting the quality of our asset management capabilities and tenant relationships. We executed leases on more than 141,000 square feet and achieved renewal spreads of approximately 5.1% of expiring rents. Notable activity included several renewals with nationally recognized retail tenants, such as Dollar General and Tractor Supply. as well as the renewal of a 58,000 square foot FedEx distribution facility at an approximate 9% renewal spread. We continue to engage with tenants well in advance of lease expirations to drive occupancy, retention, and rental growth while maintaining a long-term focus on portfolio stability. As we continue advancing our approach to asset management, we have meaningfully enhanced our data and technology capabilities. improving how we engage with tenants and evaluate opportunities, and ultimately, the outcomes we deliver across the portfolio. We've been leveraging artificial intelligence to enhance our decision-making on both the leasing and transaction front. Specifically, we're now able to rapidly analyze foot traffic patterns and performance analytics for our tenants, intelligence that directly informs our renewal negotiations and strengthens our underwriting when evaluating prospective transactions. This data-driven approach allows us to engage tenants from a more informed position, and we believe it's an increasingly meaningful contributor to our ability to drive favorable lease economics across the portfolio and secure advantageous terms on transactions. Perhaps most importantly, we believe it will also give us the ability to seamlessly absorb the motive portfolio and its approximately $535 million of new assets without any increase in headcount. Our continued efforts to limit exposure to high-risk geographies, asset types, tenants, and industries reflect our intentional diversification strategy and disciplined credit underwriting. No single tenant accounts for more than 6% of total straight-line rent, and our top 10 tenants collectively contribute only 29% of total straight-line rent, with 80% being investment grade. We carefully monitor all tenants in our portfolio and their business operations on a regular basis. I encourage everyone to review the details of each segment of our portfolio in our first quarter of 2026 investor presentation on our website. I'll turn the call over to Chris to walk through the financial results and balance sheet matters in more detail.