Global Net Lease Inc. (NYSE:GNL) Q2 2024 Earnings Conference Call August 7, 2024 11:00 AM ET

Company Participants

Jordyn Schoenfeld - CPA
Michael Weil - Chief Executive Officer
Chris Masterson - Chief Financial Officer

Conference Call Participants

John Kim - BMO Capital Markets
Bryan Maher - B. Riley Securities
Upal Rana - KeyBanc Capital Markets
Mitch Germain - Citizens JMP

Operator

Greetings. Welcome to the Global Net Lease Second Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded.

At this time, I'll turn the conference over to Jordyn Schoenfeld. Jordyn, you may now begin.

Jordyn Schoenfeld

Thank you. Good morning, everyone, and thank you for joining us for GNL's Second Quarter 2024 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 Securities Litigation Reform Act of 1995. Please review the forward-looking and cautionary statements section at the end of our second quarter 2024 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. Description of those non-GAAP financial measures that we use, such as AFFO and net debt to adjusted EBITDA, and reconciliations of these measures to our results as reported in accordance with GAAP are detailed in our earnings release and in our quarterly report on Form 10-Q for the second quarter 2024.

I'll now turn the call over to our CEO, Michael Weil. Mike?

Michael Weil

Thanks, Jordyn. Good morning and thank you all for joining us today.

At the beginning of 2024, GNL initiated a comprehensive business plan with clear financial objectives. We're currently on track to achieve or exceed these objectives, following another successful quarter, marked by increased guidance of our strategic disposition initiative, further leverage reduction, efficient balance sheet execution, AFFO per share growth, strong leasing momentum and continued synergies and internalization-related savings.

At the start of 2024, GNL implemented an asset disposition program and provided guidance of $400 million to $600 million in total sale proceeds from dispositions to be used for debt paydown, with a cash cap rate between 7% and 8% on occupied assets. The primary objectives are to reduce our net debt to adjusted EBITDA, lower our cost of capital and align our leverage with industry peers.