Global Net Lease, Inc. (NYSE: GNL) announced that it has finished the core objectives of its 2025 transformation plan, turning the company into a pure‑play single‑tenant net lease REIT. The transition was driven by a disciplined asset‑disposition program that sold roughly $3.3 billion of non‑core holdings, including a $1.8 billion multi‑tenant retail portfolio, and a $2.7 billion reduction in total debt, leaving the balance sheet with a net debt‑to‑EBITDA ratio that is now comfortably below 2.0x.
The credit upgrade story is a key part of the transformation. Fitch raised GNL’s corporate rating to investment‑grade BBB‑ from BB+ on October 17 2025, while S&P upgraded the corporate rating to BB+ from BB on June 30 2025 and lifted the issue‑level rating on unsecured notes to BBB‑. The upgrades have already translated into a roughly 70‑basis‑point reduction in the cost of the company’s $1.8 billion revolving credit facility and extended the maturity of the facility to 2030, giving GNL greater refinancing flexibility and lower interest expense.
Management explained that the shift to a single‑tenant model will simplify operations, improve lease‑rate predictability, and enhance cash‑flow stability. CEO Michael Weil said the 2025 program “has materially strengthened our balance sheet and positioned GNL for long‑term growth.” The company plans to use the freed‑up capital to pursue selective acquisitions, accelerate share repurchases, and maintain a disciplined capital allocation policy.
The transformation also delivers a leaner capital structure that supports higher dividend yields and a stronger AFFO profile. With the debt reduction and credit upgrades, GNL can now refinance at lower rates, reducing interest expense by an estimated $70 million annually. The company’s focus on high‑quality, long‑term leases is expected to drive steady income growth and support a robust dividend policy in the coming years.
Overall, the completion of the 2025 transformation marks a pivotal milestone for GNL, reinforcing its strategic focus on a pure‑play net lease model, improving financial flexibility, and setting the stage for future growth initiatives.
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