Key Highlights

  • Revenue from tenants was USD 112.87 million against an estimate of USD 113.50 million and USD 121.0 million last year.
  • Loss per share from continuing operations was USD 0.32 against an estimate of USD 0.00, while total was USD 0.31.
  • Impairment charges of USD 58.2 million on five properties compare with USD 55.4 million on ten properties a year earlier.
  • Core FFO attributable to common stockholders was USD 38.3 million, and AFFO was USD 48.3 million for the quarter.

What did the Modiv Industrial Merger change about a quarter that ended with a loss? Global Net Lease, Inc. (NYSE:GNL) completed the Acquisition on August 12, 2026, and Modiv contributed USD 6.4 million of tenant Revenue to the quarter. Total revenue from tenants, which includes the Modiv contribution, was USD 112.87 million, and its loss per share from continuing operations was USD 0.32, against an estimate of USD 0.00. Net loss per share attributable to common stockholders was USD 0.31.

Revenue by Segment and the Effect of Dispositions

Revenue from tenants was USD 112.9 million against USD 121.0 million a year earlier. Industrial and Distribution revenue was USD 53.8 million against USD 57.9 million. The company linked the decline to about USD 8.7 million of lost revenue from dispositions, partly offset by USD 5.5 million from properties acquired during the quarter. Retail revenue was USD 30.0 million against USD 30.3 million, and Office revenue was USD 29.0 million against USD 32.8 million, with the Office figure including about USD 2.2 million of payments from former tenants settling Lease restoration obligations.

During the quarter the company sold four properties, which produced a loss on sale of USD 1.6 million. Over nine months it sold 26 properties, with a net gain of USD 29.5 million.

Impairments, Interest Costs and Funds From Operations

Impairment charges of USD 58.2 million covered five properties, three in the U.S., one in the U.K. and one in Europe, where estimated Fair Value was below carrying value. Net loss attributable to common stockholders was USD 67.1 million against USD 71.1 million. Interest expense was USD 38.8 million against USD 45.3 million, which the company attributed to lower gross Debt and a lower weighted-average effective interest rate. Merger, transaction and other costs were USD 5.3 million.

FFO attributable to common stockholders was USD 32.8 million against USD 33.7 million. Core FFO was USD 38.3 million against USD 39.5 million, and AFFO was USD 48.3 million against USD 53.2 million.

Capital Allocation and Balance Sheet

The portfolio stood at 835 properties with 43.5 million rentable square feet, 96% leased, and a weighted-average remaining lease term of 6.3 years. Investment grade rated tenants accounted for 62.9% of annualized straight-line rent.

Total gross debt was USD 2.9 billion against USD 2.6 billion at December 31, 2025, at a weighted-average rate of 4.1%. Of the total, 86% was fixed or swapped to fixed, 64% was unsecured, and the weighted-average Maturity was 2.6 years. The debt Leverage Ratio stood at 55.6%. Cash and cash equivalents were USD 150.7 million.

In the quarter the company bought back 6,614,347 shares for about USD 58.5 million, at an average price of USD 8.82, leaving USD 72.4 million available under its USD 300 million program. The common Dividend remains USD 0.190 per share per quarter, and preferred dividends were USD 10.9 million for the quarter.

Numbers in Context

Revenue of USD 112.87 million sits alongside a loss of USD 0.32 per share from continuing operations, and Core FFO of USD 38.3 million sits alongside Impairment charges of USD 58.2 million. Occupancy of 96% stands next to a debt leverage ratio of 55.6%.

Management stated its intention to keep paying the quarterly common dividend of USD 0.190 per share, subject to Board decisions and Credit agreement terms, and has USD 72.4 million of repurchase capacity remaining.