Global Net Lease, Inc. announced on February 26, 2025, that it has entered into a binding agreement to sell its multi-tenant portfolio of 100 non-core properties to a subsidiary of RCG Ventures Holdings, LLC for approximately $1.8 billion. This transaction, executed at an 8.4% cash cap rate, is expected to accelerate GNL's deleveraging initiative and transform the company into a pure-play, single-tenant net lease entity.
The multi-tenant portfolio sale represents the most significant step in GNL's strategic disposition initiative, with the company expecting to complete nearly $3 billion in dispositions since the start of 2024, inclusive of properties in its pipeline. Net proceeds from the sale are intended to significantly reduce the outstanding balance on GNL's Revolving Credit Facility, which is projected to lower the Net Debt to Adjusted EBITDA ratio to a range of 6.5x to 7.1x.
Concurrently, GNL's Board of Directors authorized a share repurchase program for up to $300 million of its outstanding common stock, effective February 20, 2025. This opportunistic buyback program reflects management's belief in the company's undervalued stock price and its commitment to enhancing shareholder value.
The transaction is structured to close in three phases: the unencumbered portfolio is scheduled to close by the end of Q1 2025, with the encumbered portfolio set to close in two stages by the end of Q2 2025, subject to customary closing conditions.
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