NYSE Listing
NYSE Listing Summary Global Net Lease, Inc. (“GNL”) approved to list on the New York Stock Exchange. Global Net Lease, Inc. Company Ticker NYSE: GNL Listing Date June 2, 2015 Distribution $0.71 per share annualized distribution (paid monthly) No lock-up; shares will be freely tradable No Lock-up Management will not sell shares in connection with the listing Upon listing, we expect to commence a tender offer: Tender Amount: Up to $125 million Tender Offer Tender Price: $10.50 per share Tender Period: 20 business days 1 Executive Summary Portfolio Overview Investment Strategy Management Team Financial Overview Conclusion
Investment Highlights Diversified by asset type, geography, tenant and tenant industry High-Quality, Diversified Focus on single tenant, net lease, income producing, mission critical assets in the U.S., UK, Germany, Net Lease Portfolio France, Belgium, Netherlands, Luxembourg and Finland Strong, Creditworthy Over 80% of NOI derived from investment grade rated or implied investment grade rated tenants (1) Tenant Base with Attractive 11.2 year weighted average remaining portfolio lease term provides reliable cash flows with contractual Lease Terms and indexed rent growth (2) GNL is positioned to take advantage of broad net lease opportunities in both Western Europe and the U.S. Global Investment Strategy Target markets nearly 3x the size of U.S. market with fewer competitors focused on owner-occupied real estate in Europe Proven track record across multiple economic cycles Experienced Management Externally advised by AR Capital and Moor Park, providing a highly scalable acquisition and asset Team management platform with visible acquisition pipeline from proven, country focused proprietary origination network 20-year management agreement provides GNL with a lower cost structure vs. peers Favorable Cost Structure Enhances performance-based compensation, which aligns management and shareholder interests Strong and flexible capital structure Flexible Balance Sheet Foreign exchange fluctuations hedged through asset / liability matching and quarterly rolling net income forward swaps Attractive Valuation Attractive valuation and dividend yield relative to public peers Relative to Peers Expected market support from potential index inclusions (Russell 2000, Dow Jones, RMZ, etc.) ___________________________ Source: All portfolio and financial information derived from unaudited company internal records. As of 12/31/2014 pro forma for acquisitions completed / under contract subsequent to year end as of 3/31/2015. Note: All information is shown based on U.S. Dollar equivalent. Dollar equivalent amounts based on the exchange rates as of 5/28/2015 (GBP-USD of 1.53 and EUR-USD of 1.09). Based on 2015E NOI. Estimated GAAP NOI represents an estimate and is not based on historical fact. See the discussion under the captions “Forward Looking Statements” and “Projections” in this investor 1. presentation for more information. Actual ratings reflect the tenant rating. Implied Ratings are determined using a proprietary Moody’s analytical tool, which compares the risk metrics of the non -rated company to those of a company with an Actual Rating. A tenant with a parent that has an investment grade rating is included in implied investment grade. Ratings information is as of the date the property was underwritten by the company. 2. As of 12/31/2014. 2 Executive Summary Portfolio Overview Investment Strategy Management Team Financial Overview Conclusion
Best In Class Portfolio Geographic Breakdown Average Remaining Lease Term (Years) (2) (in millions) 15.0 100% 16.0 10% Comps Average: 10.1 years 14.0 35% 12.0 38% 80% 11.2 10.8 12.0 10.8 10.2 10.0 60% 9.1 8.6 7.9 100% 100% 100% 100% 100% 100% 100% 8.0 90% 6.5 40% 6.0 65% 62% 4.0 20% 2.0 0% 0.0 (1) (3) GPT LXP NNN O SIR SRC STOR CSG WPC GNL CSG LXP GPT WPC O SIR SRC GNL NNN STOR U.S. GNL U.S. Europe Occupancy % Investment Grade 100.0% 99.2% 99.6% 100.0% 100% 70.0% Comps Average: 98.5% 81.3% incl. implied 98.3% 98.4% 98.6% 98.6% IG tenants 60.0% 55.4% 97.7% 98% 50.0% 46.9% 96.4% Comps Average: 28.0% 36.6% 37.0% 38.2% 39.4% 96% 40.0% 26.4% 30.0% 94% 20.0% 92% 10.0% N/A N/A 0.0% 90% 0.0% (4) (4) LXP SIR CSG SRC NNN WPC O GPT STOR GNL NNN SRC STOR WPC LXP GPT SIR O GNL CSG ___________________________ Source: U.S. SEC Company filings as of 12/31/2014. Note: GPT represents Gramercy Property Trust, LXP represents Lexington Realty Trust, NNN represents National Retail Properties, O represents Realty Income, SIR represents Select Income REIT, CSG represents Chambers Street Properties and WPC represents W.P. Carey. GNL’s portfolio information derived from unaudited company reports and pro forma for acquisitions completed / under contract subsequent to year end as of 3/31/2015. SIR is pro forma for the CCIT acquisition. All information based on annualized base rent, except for CSG’s geograp hic breakdown, which is based on acquisition cost. WPC’s international exposure includes less than 5% of annualized base rent derived from other non -European markets (Australia, Canada, Mexico, Thailand, Malaysia and Japan). 1. 2. LXP excludes ground leases. Lease maturity is ~12.1 years including ground leases. 3. STOR includes six ground leases with an average lease term of 75 years. 4. NNN and SRC do not disclose % investment grade. 3 Executive Summary Portfolio Overview Investment Strategy Management Team Financial Overview Conclusion
High-Quality Portfolio GNL owns a large scale portfolio of over 300 net lease assets diversified across five countries, 79 tenants and 35 industries as of 12/31/2014. Top Ten Tenants Portfolio Overview Property % of # of Properties Over 300 Tenant (4) Rating (5) NOI (2) Country Type Total Square Feet (mm) 16.5 Baa1 GER Office 5.4% Number of Tenants 79 Number of Industries 35 AA+ US Office 5.1% Countries 5 BBB- US Retail 4.8% Occupancy 100% Weighted Average Remaining Lease Term 11.2 BBB US Distribution 4.4% % of NOI from Investment Grade Tenants (1) (2) 81% BBB+ US Office 3.4% % of NOI with Contractual Rent Increases (2) (3) 87% A2 UK Distribution 3.3% Lease Expiration Schedule (2) Weighted average lease term: 11.2 years A FIN Office 3.1% 52.8% Baa2 UK Office 2.7% 21.4% 10.8% 10.7% A- US Office 2.4% 2.1% 2.3% AA- US Office 2.4% Top Ten Tenants - Subtotal 37.0% ___________________________ Source: All portfolio and financial information derived from unaudited company internal records. As of 12/31/2014 pro forma for acquisitions completed / under contract subsequent to year end as of 3/31/2015. Note: All information is shown based on U.S. Dollar equivalent. Dollar equivalent amounts based on the exchange rates as of 5/28/2015 (GBP-USD of 1.53 and EUR-USD of 1.09). Actual ratings reflect the tenant rating. Implied Ratings are determined using a proprietary Moody’s analytical tool, which c ompares the risk metrics of the non-rated company to those of a company with an Actual 1. Rating. A tenant with a parent that has an investment grade rating is included in implied investment grade. Ratings information is as of the date the property was underwritten by the company. Based on 2015E NOI. Estimated GAAP NOI represents an estimate and is not based on historical fact. See the discussion under the captions, “Forward Looking Statements” and “Projections” in this investor 2. presentation for more information. 3. 62.8% from leases with fixed rent bumps and 21.1% from leases with contractual rent increases based on CPI / RPI or similar European inflation measure. Pound Stretcher and Quest Diagnostics represent the tenant’s parent. 4. FedEx Ground and AT&T represent the tenant’s parent rating. Tokmanni received a five -year guarantee from an A Rated bank. Pound Stretcher and Fujitsu represent Implied Ratings. 5. 4 Executive Summary Portfolio Overview Investment Strategy Management Team Financial Overview Conclusion
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