GNL

Global Net Lease, Inc. ( GNL ) Q3 2026 Earnings Call November 5, 2026 11:00 AM EST Company Participants Jordyn Schoenfeld Edward Weil - President, CEO & Director Christopher Masterson - CFO, Treasurer & Secretary Conference Call Participants Mitch Germain - Citizens JMP Securities, LLC, Research Division Upal Rana - KeyBanc Capital Markets Inc., Research Division John Kim - BMO Capital Markets Equity Research Jay Kornreich - Cantor Fitzgerald & Co., Research Division Robert Stevenson - Huntington Securities, Inc., Research Division Michael Gorman - BTIG, LLC, Research Division Craig Kucera - Lucid Capital Markets, LLC, Research Division Presentation Operator Good morning, and welcome to the Global Net Lease Third Quarter 2026 Earnings Call. [Operator Instructions] Today's call is being recorded.

Office Properties Income Trust shareholders watched a double-digit yield turn into a bankruptcy, and five dividend payers right now share the same warning signs that preceded that collapse.

GNL continues to underperform net lease peers, facing unique balance sheet and capital structure risks despite sector-wide rate-driven volatility. GNL's high leverage (6.6x net debt/EBITDA), short debt maturities, and elevated refinancing risk threaten AFFO and dividend sustainability. The Modiv Industrial acquisition delivered modest accretion, but refinancing $1B at higher rates could create a 12% AFFO drag.

Dividend-paying stocks, especially 'LoPrice/HiYield Dividend Dogs,' are positioned for strong total returns as market sentiment shifts from growth to income. Top ten LoPrice/HiYield Dogs are projected to deliver average net gains of 51.9% by October 2027, with some individual names like BXMT estimated at 76.17%. Twenty-nine of forty-two featured stocks show 'safer' dividends, supported by positive free cash flow, but thirteen rely on borrowed funds for payouts.

Dividend cuts can turn even promising REITs into value traps. Some high-yielding REITs face growing risks from leverage and rising rates. One REIT could become a great buying opportunity after a dividend cut.

The October 2026 'Dogs of the Russell 3000' strategy highlights high-yield, fair-priced stocks with analyst-projected net gains up to 81.2% by October 2027. Top ten S-M Russell 3000 stocks offer yields from 10.1% to 19.6%, with all currently trading below projected annual dividends from $1,000 invested. Fifteen out of fifty-one S-M Russell 3000 high-yielders have negative free cash flow margins, signaling caution for dividend sustainability.

NEW YORK, Oct. 15, 2026 (GLOBE NEWSWIRE) -- Global Net Lease, Inc. (NYSE: GNL) ("GNL" or the "Company") announced today that it will release its financial results for the third quarter ended September 30, 2026 on Wednesday, November 4, 2026 after the close of trading on the New York Stock Exchange.

High-yield 'mousetrap' REITs consistently underperform, with average returns lagging the VNQ by 1090–1380 bps due to dividend cuts and price declines. Dividend Safety grades of F indicate a roughly 40% chance of a cut within 12 months, making these REITs especially risky for income-focused investors. Nine REITs, including CLPR, BDN, CHCT, GOOD, NXRT, GNL, ALX, BRT, and AFCG, currently offer yields above 6.85% but have severe Dividend Safety concerns.

A 30% yield sounds like a dream for retirees, but the cash funding that payout may not be coming from the business itself.

Global Net Lease's 9% yield is drawing income investors in, but a closer look at its cash flow numbers reveals a coverage ratio that keeps shrinking quarter by quarter, and a wall of debt maturities closing in fast.