On Friday, Global Net Lease , Inc. (NYSE:GNL) maintained its Sector Weight stock rating according to KeyBanc following the company's announcement of a significant property sale. Global Net Lease disclosed the disposal of nine cold storage facilities, which were formerly leased to Americold, for a total of $170 million.
The buyer of the portfolio is reported to be Americold itself, with the transaction carrying a 7.88% cash capitalization rate, and approximately an 8.05% GAAP capitalization rate.
The properties sold are part of Global Net Lease's previously announced disposition pipeline valued at $567 million, which was updated prior to the NAREIT conference. This move is seen as a positive step for the real estate investment trust, as it has been executing transactions better than anticipated.
Currently, Global Net Lease is on track to meet or exceed its targeted disposition guidance of $400 million to $600 million, which is expected to contribute to the company's debt reduction efforts.
KeyBanc's reiteration of the Sector Weight rating for Global Net Lease reflects the latest property sale, as well as the company's first-quarter earnings for 2024 and activities following that period. The sale is part of Global Net Lease's strategy to optimize its portfolio and strengthen its financial position.
The transaction is significant for Global Net Lease as it progresses towards its disposition goals, which are instrumental in the company's broader strategy to reduce its debt levels. KeyBanc's maintained rating indicates a neutral outlook on the stock, suggesting that the firm believes Global Net Lease is fairly valued at its current market price, considering the company's recent performance and market conditions.
In other recent news, Global Net Lease (GNL) has seen significant developments in its financial performance and strategic initiatives. The company recently announced the closing of dispositions worth $170 million, a move aimed at improving the company's leverage, according to BMO Capital.
The firm maintains an Outperform rating on GNL, with a steady price target of $11.00. B.Riley, however, adjusted its outlook on GNL, reducing the price target from $12.50 to $11.00, while maintaining a Buy rating.
In the first quarter of 2024, GNL reported growth with an increase in Adjusted Funds From Operations (AFFO) per share, despite a net loss of $35 million. The company also completed a $237 million commercial mortgage-backed securities (CMBS) refinancing, reducing interest expenses and extending debt maturity.
These recent developments illustrate GNL's focus on reducing net debt and improving net operating income (NOI). The company maintains its AFFO per share guidance of $1.30 to $1.40 and a net debt to adjusted EBITDA range of 7.4x to 7.8x for 2024. Despite the challenges, GNL remains committed to its financial strategy and optimistic about meeting its financial guidance for the year.
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