Q1 2024 Global Net Lease Inc Earnings Call

[music].

Ladies and gentlemen, good morning, and welcome to the global net lease Inc. First quarter 'twenty 'twenty four earnings conference call.

Operator: Ladies and gentlemen, good morning and welcome to the Global Net Lease Inc. first quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jordyn Schoenfeld of GNL. Please go ahead.

Operator: At this time all participants are in a listen only mode.

Jordyn Schoenfeld: A brief question and answer session will follow the formal presentation.

Operator: If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

Operator: As a reminder, this conference is being recorded.

Jordyn Schoenfeld: It is now my pleasure to introduce your host Jordan show Unfettered of GNL. Please go ahead.

Jordyn Schoenfeld: Thank you.

Jordyn Schoenfeld: Thank you. Good morning, everyone, and thank you for joining us for G&L's first quarter 2024 earnings call. Joining me today on the call is Mike Weil, G&L's Chief Executive Officer, and Chris Masterson, G&L's Chief Financial Officer. The following information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Please review the forward-looking and cautionary statement section at the end of our first quarter 2024 earnings release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today.

Jordyn Schoenfeld: Morning, everyone and thank you for joining us for Gnl's first quarter 2024 earnings call.

Jordyn Schoenfeld: Joining me today on the call is Mike, while Gnl's, Chief Executive Officer, and Chris Masterson, Gnl's Chief Financial Officer.

Jordyn Schoenfeld: The following information contains forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.

Jordyn Schoenfeld: Please review the forward looking and cautionary statement section at the end of our first quarter 2024 earnings release for various factors that could cause actual results to differ materially from forward looking statements made during our call today.

Jordyn Schoenfeld: As stated in our SEC filings GNL disclaims any intent or obligation to update or revise these forward looking statements except as required by law.

Jordyn Schoenfeld: Also during today's call, we will discuss certain non-GAAP financial measures, which we believe can be useful in evaluating the company's financial performance descriptions of those non-GAAP financial measures that we use such as <unk> and net debt to adjusted EBITDA and a reconciliation of these measures to our results as reported.

Jordyn Schoenfeld: In accordance with GAAP are detailed in our earnings release and in our quarterly report on Form 10-Q for the first quarter 2024.

Jordyn Schoenfeld: As stated in our SEC filings, G&L disclaims any intent or obligation to update or revise these forward-looking statements except as required by law. Also, during today's call, we will discuss certain non-GAAP financial measures which we believe can be useful in evaluating the company's financial performance. Descriptions of those non-GAAP financial measures that we use, such as AFFO and Net Debt to Adjusted EBITDA, and reconciliations of these measures to our results as reported in accordance with GAAP are detailed in our earnings release and in our quarterly report on Form 10-Q for the first quarter of 2024. I'll now turn the call over to our CEO, Michael Weil, Mike.

Jordyn Schoenfeld: I'll now turn the call over to our CEO, Michael while Mike.

Michael Weil: Thanks, Jordan good morning, and thank you all for joining us today.

Michael Weil: Thanks, Jordyn. Good morning, and thank you all for joining us today. We're pleased to share with you the results of a successful first quarter that included AFFO per share growth, strong leasing momentum, efficient balance sheet execution, and continued synergies and internalization savings. As part of G&L's Q4 2023 earnings release, we shared our 2024 business strategy and full-year guidance, which we believe will increase long-term shareholder value by de-levering our balance sheet, reducing our exposure to variable rate debt, and lowering net debt to adjusted EBITDA.

Michael Weil: We're pleased to share with you the results of a successful first quarter that included a S. F O per share growth strong leasing momentum efficient balance sheet execution and continued synergies and internalization savings.

Michael Weil: As part of Gnl's Q4 of 2023 earnings release, we shared our 'twenty 'twenty four business strategy and full year guidance, which we believe will increase long term shareholder value by Delevering, our balance sheet, reducing our exposure to variable rate debt and lowering net debt to adjusted EBITDA.

Michael Weil: At the core of this strategy is an asset disposition program targeting $400 million to $600 million in total sale proceeds at a cash cap rate between 7% and 8% on occupied assets. We're excited with the significant progress we've achieved to date.

Michael Weil: At the core of this strategy is an asset disposition program targeting 400 million to $600 million in total sale proceeds at a cash cap rate between 7% and 8% on occupied assets.

Michael Weil: We're excited with the significant progress we've achieved to date as of May 1st our closed dispositions plus pipeline totaled $554 million at a cash cap rate of 7.2% occupied assets and a weighted average remaining lease term of three nine years. This includes.

Michael Weil: As of May 1st, our closed dispositions plus pipeline totals $554 million at a cash cap rate of 7.2% on occupied assets and a weighted average remaining lease term of 3.9 years. This includes $63 million of successfully closed dispositions at a cash cap rate of 6.8% on occupied assets. $482 million of dispositions currently under PSA at a cash cap rate of 7.3% on occupied assets and $9 million of dispositions with executed LOIs at a cash cap rate of 7% on occupied assets.

Michael Weil: $63 million of successfully closed dispositions at a cash cap rate of six 8% occupied assets.

Michael Weil: $482 million of dispositions currently under P. S. A at a cash cap rate of seven 3% occupied assets and $9 million of dispositions with executed LOI at a cash cap rate of 7% occupied assets.

Michael Weil: We're very pleased to have built this robust pipeline in the early stages of our strategic disposition effort and expect to identify additional opportunities throughout the year. We believe the 7.2% cash cap rate on the occupied dispositions referenced above offers proof of value for our primarily investment grade portfolio and represents a significant premium compared to where G&L is currently trading on an implied cap rate basis. It's important to note that these strategic dispositions primarily consist of non-core assets and opportunistic sales, including assets with near-term debt or lease maturity. They include the sale of 15 Truist properties totaling nearly $35 million for a cash cap rate of 6.6%.

Michael Weil: We're very pleased to have built this robust pipeline in the early stages of our strategic disposition effort and expect to identify additional opportunities throughout the year. We believe the seven 2% cash cap rate on the occupied dispositions referenced above offers proof of value of our primarily investment grade portfolio.

Michael Weil: And represents a significant premium compared to where GNL is currently trading on an implied cap rate basis.

Michael Weil: It's important to note that these strategic dispositions, primarily consist of noncore assets and opportunistic sales, including assets with near term debt or at least maturities. They include the sale of 15 truest properties totaling nearly $35 million for a cash cap rate of six 6%.

Michael Weil: Additionally, we have nearly $132 million of vacant property dispositions that are closed or under agreement that we expect will eliminate $3 million of annualized operating expenses, assuming the closing of the transactions contemplated by such agreement. In addition to the significant progress we achieved in our disposition program, we're also pleased to deliver a 6% growth in AFFO per share this quarter compared to last quarter. We'll continue focusing on earnings growth in addition to our disposition program, which is expected to be earnings-neutral.

Michael Weil: Additionally, we have nearly $132 million of vacant property dispositions that are closed or under agreement at least.

Michael Weil: Back to eliminate $3 million of annualized operating expenses, assuming closing of the transactions contemplated by such agreements.

Michael Weil: In addition to the significant progress we achieved in our disposition program. We're also pleased to deliver a 6% growth in <unk> per share this quarter compared to last quarter.

Michael Weil: We'll continue focusing on earnings growth. In addition to our disposition program, which is expected to be earnings neutral.

Michael Weil: We've also achieved significant progress on the Capital Markets Fund, completing a $237 million CMVS refinancing in April, secured by 20 U.S. industrial properties previously financed under the company's corporate credit facility. This is a great accomplishment in the current real estate capital markets environment that we believe reflects G&L's strong and diversified portfolio. The financing is interest-only at a fixed all-in interest rate of 5.74%, representing a substantial 159 basis points reduction compared to the current floating interest rate on the U.S. dollar portion of the company's corporate credit facility.

Michael Weil: We've also achieved significant progress on the capital markets front.

Michael Weil: Completing a $237 million C. N V S refinancing in April secured by 20 U S. Industrial properties previously financed under the company's corporate credit facility.

Michael Weil: This is a great accomplishment in the current real estate capital markets environment that we believe reflects gnl's strong and diversified portfolio.

Michael Weil: The financing is interest only at a fixed all in interest rate of 574%, representing a substantial 159 basis points reduction compared to the current floating interest rate on the U S. Dollar portion of the company's corporate credit facility. It results in a reduction of over three and a half.

Michael Weil: It results in a reduction of over $3.5 million in annualized interest expenses, which will begin to benefit us in Q2 2024 and notably extends our weighted average debt maturity while increasing our exposure to fixed-rate debt. This attractively priced financing also addresses our near-term debt maturities by proactively increasing flexibility and capacity on our corporate credit facilities. As of May 1, we've already addressed 62% of the debt that has scheduled maturities in 2024.

Michael Weil: In annualized interest expense, which will begin to benefit us in Q2, 2024, and notably extends our weighted average debt maturity, while increasing our exposure to fixed rate debt.

Michael Weil: This attractively priced financing also addresses our near term debt maturities by proactively increasing flexibility and capacity on our corporate credit facility.

Michael Weil: As of May 1st we've already addressed 62% of the debt that have scheduled maturities in 2024.

Michael Weil: Specifically, we refinanced two mortgages onto our credit facility, including our $129 million McLaren headquarters mortgage that matured in April, as well as $25 million of multi-tenant mortgage debt. As mentioned on our fourth-quarter 2023 earnings call, we recently completed an $80 million refinancing agreement with Nordea Bank, secured by multiple properties in Finland that extends the debt maturities of these assets to 2029 at a 5.1% interest rate We expect that the remaining $155 million of debt maturing in 2024 will be addressed through our disposition strategy or placed on our credit facility.

Michael Weil: Specifically, we refinanced two mortgages onto our credit facility, including our $129 million Mclaren headquarters mortgage that matured in April as well as $25 million of multi tenant mortgage debt.

Michael Weil: As mentioned on our fourth quarter 2023 earnings call. We recently completed an $80 million refinancing agreement with Nordea bank secured by multiple properties in Finland that extends debt maturities of these assets to 2029 at a five 1% interest rate.

Michael Weil: We expect that the remaining $155 million of debt maturing in 2024 will be addressed through our disposition strategy were placed onto our credit facility.

Michael Weil: As for 2025 maturities no debt is maturing until the third quarter of next year, and we intend on addressing it through disposition proceeds permanent refinancing bonds and or availability on our corporate credit facility in the later part of 2024 or early 2025, anticipating a slightly more.

Michael Weil: As for 2025 maturities, no debt is maturing until the third quarter of next year, and we intend on addressing it through disposition proceeds, permanent refinancing, bonds, or availability on the corporate credit facility in the later part of 2024 or early 2025, anticipating a slightly more favorable environment.

Michael Weil: <unk> environment.

Michael Weil: During the first quarter of 2024, we also showcased our strong asset management capabilities through robust leasing activity and positive leasing spreads, encompassing nearly 1.4 million square feet with attractive renewal spreads that were 6.1% higher than expiring rent. New leases that were completed in the first quarter of 2024 had a weighted average lease term of 10.2 years, while the renewals that were completed in the first quarter of 2024 had a weighted average lease term of 5.8 years.

Michael Weil: During the first quarter of 2024, we also showcased our strong asset management capabilities through robust leasing activity and positive leasing spreads encompassing nearly one 4 million square feet with attractive renewal spreads that were six 1% higher than expiring rents.

Michael Weil: New leases that were completed in the first quarter of 2024 have a weighted average lease term of 10.2 years, while the renewals that were completed in the first quarter of 2024 have a weighted average lease term of five eight years.

Michael Weil: Notably the single tenant segment completed 13, new leases and renewals highlighted by an 11% renewal leasing spread demonstrating the strong renewal demand for our mission critical assets, while adding $6 $9 million in straight line rent.

Michael Weil: Notably, the single tenant segment completed 13 new leases and renewals, highlighted by an 11% renewal leasing spread, demonstrating the strong renewal demand for our mission critical assets while adding $6.9 million in straight line rent. The multi-tenant segment completed 65 new leases and renewals, resulting in a 2% renewal spread, consistent with the high demand we're experiencing at our suburban shopping centers, which increased straight-line rent by $10.4 million. Turning to our portfolio, as of the end of the first quarter, we owned 1,277 properties spanning nearly 67 million square feet with a gross asset value of $9 billion.

Michael Weil: The multi tenant segment completed 65, new leases and renewals, resulting in a 2% renewal spreads consistent with the high demand we're experiencing at our suburban shopping centers, which increased straight line rent by $10 $4 million.

Michael Weil: Turning to our portfolio as of the end of the first quarter. We owned 277 properties spanning nearly 67 million square feet with a gross asset value of $9 billion.

Michael Weil: We believe the diverse composition of our net lease portfolio is unmatched across geography, asset type, tenant, and industry and positions G&L to effectively navigate external macro challenges as we move ahead. The portfolio's occupancy stands at 93% with a weighted average remaining lease term of 6.5 years. I want to note that our portfolio occupancy experienced a short-term impact due to the vacancy of Klausner, a furniture manufacturing tenant that originally occupied five properties at only $2.13 per square foot.

Michael Weil: We believe the diverse composition of our net lease portfolio is unmatched across geography.

Michael Weil: Type dependent and industry and positions GNL to effectively navigate external macro challenges as we move ahead.

Michael Weil: The portfolio's occupancy stands at 93% with a weighted average remaining lease term of six five years.

Michael Weil: I want to note that our portfolio occupancy experienced a short term impact due to the vacancy of klausner of furniture manufacturing tenant that originally occupied five properties and only $2.13 of rent per square foot.

Michael Weil: We were able to release two of the properties at the same rental rate with no downtime. The three remaining vacant properties previously represented only 55 basis points of GML's total straight-line rent but caused a 2.5% short-term decline in overall occupancy, given that they occupied 1.7 million square feet. Two of the properties are already under contract to sell and are expected to close in the second quarter. The last property is also on the market, and we're actively engaged with potential buyers.

Michael Weil: We were able to re lease to the properties at the same rental rate with no downtime. The three remaining vacant properties. Previously represented only 55 basis points of Gnl's total straight line rent, but caused a 2.5% short term decline in overall occupancy given that unoccupied one 7 million square feet.

Michael Weil: Two of the properties are already under contract to sell and are expected to close in the second quarter. The last property is also on the market and we're actively engaged with potential buyers I want to reiterate the minimal impact. This has on our straight line rent further illustrating our highly diversified portfolio with little.

Michael Weil: I want to reiterate the minimal impact this has on our straight-line rent, further illustrating our highly diversified portfolio with a low concentration rate. Additionally, given the public disclosures regarding Family Dollar's intention to close some stores in 2024, I'd like to share that G&L's exposure to Family Dollar represents only 0.09% of SLR. We have not received any indication that any of the stores they currently lease from us are part of the early store closure.

Michael Weil: Concentration risks.

Michael Weil: Additionally, given the public disclosures regarding family dollar's intention to close some stores in 2024, I'd like to share that gnl's exposure to family dollar represents only 0.09% of F. L. R.

Michael Weil: We have not received any indication that any of the stores. They currently lease from US are part of the early store closures.

Michael Weil: This exposure is limited after GNL proactively disposed of $112 million of its family dollar holdings in 2019, as we anticipated potential headwinds for this tenant. Furthermore, given the recent developments regarding Red Lobster's financial troubles, we're pleased to announce that G&L has no exposure to Red Lobster.

Michael Weil: This exposure is limited after GNL proactively disposed of $112 million of its family dollar holdings in 2019, as we anticipated potential headwinds for this tenant.

Michael Weil: Furthermore, given the recent developments regarding Red Lobster's financial troubles, we're pleased to announce the GNL has no exposure to red lobster.

Michael Weil: We continue to monitor all of our tenants and their business operations on a regular basis. The minimal exposure to these retailers showcases the diversification of our portfolio and our strong underwriting, which we believe limits our credit and concentration rates. Geographically, 80% of our straight-line rent is earned in North America and 20% from Europe.

Michael Weil: We continue to monitor all of our tenants and their business operations on a regular basis.

Michael Weil: Minimal exposure to these retailers showcases the diversification of our portfolio and our strong underwriting, which we believe limits our credit and concentration risk.

Michael Weil: Geographically, 80% of our straight line rent is earned in North America, and 20% from Europe.

Michael Weil: The portfolio also features a stable tenant base and a high quality of earnings, with an industry-leading 58% of tenants receiving an investment grade or implied investment grade rating. From a growth perspective, the portfolio includes an average annual contractual rental increase of 1.3%. I'd encourage everyone to look at our first quarter 2024 investor presentation on our website for more details on each segment of our portfolio. I'd like to take a moment to highlight the addition of two independent and highly distinguished board members during the first quarter, Michael J.U.

Michael Weil: The portfolio also features a stable tenant base and a high quality of earnings with an industry, leading 58% of tenants receiving an investment grade or implied investment grade rating.

Michael Weil: From a growth perspective, the portfolio includes an average annual contractual rental increase of one 3%.

Michael Weil: I'd encourage everyone to look at our first quarter 2024, investor presentation on our website for more details on each segment of our portfolio.

Michael Weil: I'd like to take a moment to highlight the addition of two independent and highly distinguished Board members during the first quarter, Michael J, you Monahan and Rob Kauffman.

Michael Weil: Monaghan and Rob Coffrey. Mike currently serves as a CBRE Vice Chair and brings extensive real estate expertise. And Rob, a co-founder of Fortress Investment Group, possesses a wealth of relevant capital market knowledge. Both have already brought invaluable insight and perspective to the board, and we look forward to their continued contributions in shaping G&L's future. Looking ahead, we remain committed to executing on our systematic and prudent approach to achieving our financial objectives, which revolve around reducing our net debt to adjusted EBITDA ratio while organically enhancing NOI through lease-up initiatives and contractual rent growth.

Michael Weil: <unk> currently serves as the CBRE Vice chair and brings extensive real estate expertise and Rob a cofounder of fortress investment group possesses a wealth of relevant capital market knowledge.

Michael Weil: Both have already brought invaluable insight and perspective to the board and we look forward to their continued contributions in shaping gnl's future.

Michael Weil: Looking ahead, we remain committed to executing on our systematic and prudent approach to achieving our financial objectives, which revolve around reducing our net debt to adjusted EBITDA ratio, while organically enhancing NOI through lease up initiatives and contractual rent growth.

Michael Weil: Our Asset Disposition Program, of which we've made significant progress, is a pivotal component of this strategy and should provide us with incremental capital to de-leverage our balance. I'll turn the call over to Chris to walk through the financial results and balance sheet matters in more detail. Chris? Thanks.

Michael Weil: Our asset disposition program in which we've made significant progress is a pivotal component of this strategy and should provide us with incremental capital to deleverage our balance sheet alter.

Michael Weil: I will turn the call over to Chris to walk through the financial results and balance sheet matters in more detail Chris.

Chris: Thanks, Mike. Please note that as always a reconciliation of GAAP net income to the non-GAAP measures can be found in our earnings release, which is posted on our website.

Christopher J. Masterson: Thanks, Mike. Please note that, as always, a reconciliation of GAAP net income to non-GAAP measures can be found in our earnings release, which is posted on our website. For the first quarter of 2024, we recorded revenue of $206 million and a net loss attributable to common stockholders of $35 million, compared to $207 million and $60 million in Q4 2023. Regards.

Christopher J. Masterson: For the first quarter 2024, we recorded revenue of $206 million and a net loss attributable to common stockholders of $35 million compared to $207 million and $60 million in Q4 2023, respectively.

Christopher J. Masterson: Core FFO was up 17% to $57 million, or $0.25 per share, in Q1 2024 compared to $48 million, or $0.21 per share, in Q4 2020. ASFO increased 5% to $75 million, or $0.33 per share, in the first quarter of 2024 compared to $72 million, or $0.31 per share, in Q4 2023, representing a 6% ASFO per share increase from the previous quarter. As discussed last quarter, following the successful completion of the European tax restructuring, we have seen a reduction in income tax expense from $5.5 million in Q4 2023 to $2.4 million in Q1 2020.

Christopher J. Masterson: <unk> was up 17% to 57 million or <unk> 25 per share in Q1, 2024 compared to $48 million or 21 cents per share in Q4 2023.

Christopher J. Masterson: <unk> increased 5% to $75 million or 33 cents per share in the first quarter of 2024 compared to $72 million or 31 per share in Q4 of 2023, representing a 6% <unk> per share increase from last quarter.

Christopher J. Masterson: As discussed last quarter. Following the successful completion of a European tax restructuring, we have seen a reduction in income tax expense from $5 5 million in Q4 of 2023 to $2 4 million in Q1 2024.

Christopher J. Masterson: Looking at our balance sheet, it's important to note that even though 84% of our debt is subject to fixed rates.

Christopher J. Masterson: Looking at our balance sheet, it's important to note that even though 84% of our debt is subject to fixed rates, the current sustained high interest rate environment does have a temporary effect on the portion of our debt that isn't fixed or swapped. To mitigate this, we have reduced our exposures to variable rate debt through our new $237 million CMBS refinancing, while also extending our weighted average debt. Further, we increase our level of fixed-rate debt and lower our cost of capital.

Christopher J. Masterson: The current sustained high interest rate environment does have a temporary effect on a portion of our debt that is in fixed or swapped.

Christopher J. Masterson: To mitigate that we have reduced our exposure to variable rate that through our new 237 million C. M D. As refinancing while also extending our weighted average debt maturity.

Christopher J. Masterson: Further increased our level of fixed rate debt and lower our cost of capital. We have also taken the proactive approach of swapping $300 million of the U S. Dollar portion of our corporate credit facility at an interest rate that is 120 basis points lower than the current floating interest rate.

Christopher J. Masterson: We have also taken the proactive approach of swapping 300 million of the U.S. dollar portion of our corporate credit facility at an interest rate that is 120 basis points lower than the current floating rate. This swap was effective as of April 1st, 2024, and is expected to reduce our annualized interest expense by 3.6%. Additionally, we entered into 200 million GBP swaps on March 18, 2024, that are approximately 90 basis points lower than the one-month SONIA and are expected to decrease annualized interest expense by 2.2 million. We expect to realize the full benefit of these actions beginning in Q2 2020.

Christopher J. Masterson: This swap was effective as of April one 2024 and is expected to reduce our annualized interest expense by $3 6 million.

Christopher J. Masterson: Additionally, we entered into 200 million of DVT swaps on March 18, 2024 that are approximately 90 basis points lower than the one month, Sonia and I expect it to decrease annualized interest expense by $2 2 million.

Christopher J. Masterson: We expect to realize the full benefit of these actions beginning in Q2 'twenty 'twenty four.

Christopher J. Masterson: At the end of the first quarter, our net debt to adjusted EBITDA ratio was 8.4 times based on net debt of $5 2 billion.

Christopher J. Masterson: At the end of the first quarter, our net debt to adjusted EBITDA ratio was 8.4 times based on net debt of $5.2 billion. As expected, net debt to adjusted EBITDA remains unchanged from the prior quarter. As a previous announced dividend reduction, which increases incremental cash used to lower debt, only occurred in April, as well as the majority of our announced dispositions will close in Q2 or Q3 of 2024. Our weighted average interest rate was 4.8%, and we had liquidity of approximately $175 million and $190 million of capacity on our credit facility.

Christopher J. Masterson: As expected net debt to adjusted EBITDA remains unchanged from the prior quarter as the previous announced dividend reduction, which increases incremental cash used to lower that only occurred in April as well as the majority of our announced dispositions will close in Q2 or Q3 of 'twenty 'twenty four.

Christopher J. Masterson: Our weighted average interest rate was four 8% and we had liquidity of approximately $175 million and $190 million of capacity on our credit facility.

Christopher J. Masterson: Our debt comprises 1 billion in senior notes $1 8 billion on the multi currency revolving corporate credit facility and $2 6 billion of outstanding gross mortgage debt.

Christopher J. Masterson: Our debt comprises $1 billion in senior notes, $1.8 billion in the multi-currency revolving corporate credit facility, and $2.6 billion of outstanding gross mortgage debt. Our debt is 84% fixed rate, which includes floating rate debt with in-place interest rate swaps, and our interest coverage ratio was 2.4 times. As of March 31st, 2024, we have approximately 230.8 million common shares. On a weighted average basis, there were approximately 230.3 million shares outstanding during the first quarter of 2024.

Christopher J. Masterson: Our debt was 84% fixed rate, which includes floating rate debt with in place interest rate swaps and our interest coverage ratio was 2.4 times.

Christopher J. Masterson: As of March 31, 2024, we had approximately $230 8 million common shares outstanding.

Christopher J. Masterson: On a weighted average basis, there were approximately 233 million shares outstanding during the first quarter of 2024.

Christopher J. Masterson: Turning to our outlook for the balance of 'twenty 'twenty four based on progress to date, we are reaffirming our <unk> per share guidance range of $1 30 to $1 45.

Christopher J. Masterson: Turning to our outlook for the balance of 2024, based on progress to date, we are reaffirming our AFFO per share guidance range of $1.30 to $1.40 and a net debt to adjusted EBITDA range of 7.4 times to 7.8 times. I'll now turn the call back to Mike for some closing remarks.

Mike: And a net debt to adjusted EBITDA range of 7.4 times to seven eight times.

Christopher J. Masterson: I'll now turn the call back to Mike for some closing remarks.

Mike: Thanks, Chris.

Michael Weil: GNL executed well on our near-term strategic objectives in the first quarter of 2024. We made significant progress on our strategic disposition plan, building a robust $554 million closed plus disposition pipeline. The 7.2% cash cap rate we're achieving on the announced occupied assets represents a significant premium compared to the implied value of this portfolio based on the current trading price. We're committed to increasing shareholder value and continuing this disposition initiative until we close the gap between the value of our real estate and our stock price.

Mike: <unk> executed well on our near term strategic objectives in the first quarter of 2024, we made significant progress on our strategic disposition plan building, a robust $554 million closed plus disposition pipeline.

Michael Weil: The seven 2% cash cap rate, we're achieving on the announced occupied assets represents a significant premiums compared to the implied value of this portfolio based on the current trading price, we're committed to increasing shareholder value and continuing this disposition initiatives until we close the gap between the value of our real estate.

Michael Weil: And our stock price I want to reiterate that we plan on using the net proceeds received from these incremental dispositions to continue lowering our net debt to adjusted EBITDA, bringing it more in line with our peers.

Michael Weil: I want to reiterate that we plan on using the net proceeds received from these incremental dispositions to continue lowering our net debt to adjusted EBITDA, bringing it more in line with our peers. In addition to our disposition program, we continue to benefit from GNA synergies as a direct result of the merger and internalization. Through Q1 2024, we've realized over $70 million in synergies, and we remain on track to achieve the full $75 million annualized cost savings by Q3 2024. Additionally, we will also benefit from the $3 million reduction in annualized operating expenses through the sale of vacant assets.

Michael Weil: In addition to our disposition program, we continue to benefit from G&A synergies as a direct result of the merger and internalization.

Michael Weil: Through Q1, 2024, we've realized over $70 million of synergies and we remain on track to achieve the full $75 million annualized cost savings by Q3 2024.

Michael Weil: We will also benefit from the $3 million reduction in annualized operating expenses through the sale of vacant assets.

Michael Weil: $3.5 million of annualized interest savings from our CMBS refinance and $5.8 million of annualized interest savings from our corporate credit facility swap. The AFFO per share growth, continued leasing momentum, strong portfolio performance, and significant disposition progress we've achieved this quarter reflects our commitment to enhancing our balance sheet, reducing leverage, and positioning G&L for sustainable growth in the future, ultimately creating shareholder value over the long term. As always, we're available to answer any questions you may have about this quarter after the call. Operator, please open the line for questions.

Michael Weil: $3 $5 million of annualized interest savings from our C. N V S refinance and $5 $8 million of annualized interest savings from our corporate credit facility swaps.

Michael Weil: The <unk> per share growth continued leasing momentum strong portfolio performance and significant disposition progress. We've achieved this quarter reflects our commitment to enhancing our balance sheet, reducing leverage and positioning GNL for sustainable growth in the future ultimately creating shareholder value.

Michael Weil: Over the long term.

Michael Weil: As always we're available to answer any questions you may have on this quarter after the call.

Michael Weil: Operator, please open the line for questions.

Speaker Change: Thank you Les.

Operator: Ladies and gentlemen, we will now be conducting a question and answer session. If you would like to ask a question, please press star and 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start key.

Speaker Change: Ladies and gentlemen, we will now be conducting a question and answer session.

Operator: If you'd like to ask a question. Please press star and one on your telephone keypad.

Operator: A confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue.

Operator: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the stock east.

Operator: Ladies and gentlemen, we will wait for a moment, while we poll for questions.

Operator: Once again, ladies and gentlemen, if you wish to ask a question. Please press star and one.

Operator: Ladies and gentlemen, we will wait for a moment while we poll for questions. Once again, ladies and gentlemen, if you wish to ask a question, please press star and one. Our first question is from the line of Bryan Maher with B. Reilly Securities. Please go ahead. Good morning, Bryan.

Operator: Yeah.

Operator: My first question is from the line of Bryan Maher with B Riley Securities. Please go ahead.

Bryan Anthony Maher: Well good morning, Brian.

Michael Weil: Good morning, Michael and Chris. Thanks for taking my questions. Just a couple for me this morning. You know, sticking with the retail landscape for a minute. Is there any timing that you can share on the closing of those two properties? And do you guys have any exposure to the Route 21 situation?

Bryan Anthony Maher: Good morning, Mike and Chris Thanks for taking my questions. Just a couple from me this morning.

Michael Weil: Sticking with the retail landscape for a minute.

Michael Weil: Is there any timing that you can share on the closing of those two properties and you guys have any exposure to the route 21 situation.

Michael Weil:

Michael Weil: Ryan, the closing of the two properties, I believe, and I will confirm this is the beginning of the third quarter. Um, but it is an executed contract, and we're moving forward. So we feel very good about that.

Speaker Change: Brian the closing of the two properties I believe and I will confirm this is the beginning of the third quarter.

Speaker Change: But it is a.

Michael Weil: Executed contract and we're moving forward. So we feel very good about that.

Michael Weil: Route 21 is.

Michael Weil: RU21 is a very small tenant in our multi-tenant portfolio, and they represent.12% of straight line rent, so we will anticipate backfilling those with moderately sized stores without any problem. And, you know, we were very pleased with the leasing in the quarter 1.4 million square feet of leasing in the portfolio this quarter. So we have no reason to believe that that small tenant is even going to show up in any kind of material way.

Michael Weil: A very small tenant in our multi tenant portfolio and they represent them.

Michael Weil: 21, 2% of straight line rent, so we will anticipate back filling those.

Michael Weil: Moderately sized stores without any problem.

Michael Weil: And you know as we were very pleased with the.

Michael Weil: Leasing in the quarter $1 4 million square feet of leasing in the portfolio. This quarter. So we have no reason to believe that that small tenant is even going to show up in any kind of material way.

Speaker Change: Okay, and then when we think about your disposition pipeline kind of two questions here. How long do you think takes until you complete that in its entirety and are there any industrial or office assets in the sales mix.

Michael Weil: Okay, and then when we think about your disposition pipeline, there are two questions here. How long do you think it will take until you complete that in its entirety? And are there any industrial or office assets in the sales?

Speaker Change: Yes. It there it was a wholesome fulsome review of the portfolio and we looked for what we deem to be non core assets and one of those definitions first of all.

Michael Weil: Yes, it was a wholesome, fulsome review of the portfolio, and we looked for what we deemed to be non-core assets, and one of those definitions, first of all, we are... Very much looking forward to lowering our exposure to single-tenant office. So, there are office properties in the pipeline, and then there are just a few industrial properties where, through conversations with tenants and different information that we had, the remaining lease term was rather short, and we saw great opportunistic opportunities there.

Michael Weil:

Michael Weil: Very much looking forward to lowering our exposure to single tenant office.

Michael Weil: So there are office properties in in the pipeline.

Michael Weil: And then there are <unk>.

Michael Weil: Just a few.

Michael Weil: Industrial properties, where two conversations with tenants and different information that we had.

Michael Weil: The remaining lease term was rather short and we saw great opportunistic dispositions. There are more details will be provided.

Michael Weil: More details will be provided as we close on those assets, and I think that you and others are going to be very impressed. The average cap rate of dispositions is 7.2%, and I do think that when we're looking at assets that have remaining lease terms of, on average, less than four years, we can still get those types of cap rates. It just highlights... This 1300 property portfolio really is composed of valuable real estate, and the disparity between these values and where we're trading, we're really focused on closing that gap because this company should be trading at a much higher multiple, there's no doubt.

Michael Weil: As we close on those assets and I think that you and others.

Michael Weil: We're going to be very impressed with the decisions to dispose and the value of.

Michael Weil: That we received for these assets and I just wanted to touch again on the.

Michael Weil: The average cap rate of dispositions of seven 2% and I do think that when when we're looking at assets that have remaining lease term of on average less than four years, and we can still get those types of cap rates.

Michael Weil: It just highlights.

Michael Weil: This 1300 property portfolio really is consisting of valuable real estate.

Michael Weil: And the disparity between these values and where we're trading we're really focused on closing that gap because this company should be trading at a much higher multiple there's no doubt.

Speaker Change: Okay, and just lastly is it safe to say that given where you're trying to get to on the leverage front that acquisitions really aren't top of mind anytime soon.

Michael Weil: Okay, and just lastly, is it safe to say that given where you're trying to get to on the leverage front, that acquisitions really aren't top of mind anytime soon? That is accurate.

Michael Weil: That is accurate. As I've said in my prepared comments, the velocity that we're executing on our 2024 guidance metrics is very encouraging. We'll prove to be very valuable in what you see in the second quarter and the third quarter. I'm comfortable anticipating that. And real estate. This portfolio is a little bit like a big aircraft carrier.

Speaker Change: That is accurate.

Michael Weil: As I've said in my prepared comments.

Michael Weil: The velocity that we're executing on our 2024 guidance metrics.

Michael Weil: Is very encouraging the results will prove to be very valuable and what you see in the second quarter in the third quarter I'm comfortable anticipating that and real estate. These this portfolio is a little bit like a a big aircraft carrier.

Michael Weil: We've put in all of the appropriate steps and we're executing and what we expect to see through the balance of 'twenty 'twenty. Four is really exciting I was happy to see the <unk> growth of 6% per share in the quarter.

Michael Weil: We've put in all of the appropriate steps, and we're executing. And what we expect to see through the balance of 2024 is really exciting. I was happy to see the AFFO growth of 6% per share in the quarter, and that's before a lot of the impact of the things that we achieved because, you know, obviously, this is a first quarter earnings call, and we'll talk about the second quarter in, I don't know, six or eight weeks. So, very strong progress, and I anticipate results that you and others are going to be pleased with.

Michael Weil: And that's before a lot of the impact of the things that we achieved because obviously this is a first quarter earnings call and we will talk about the second quarter.

Michael Weil: I don't know six or eight weeks, so very strong.

Michael Weil: Grass and I anticipate results that you and others are going to be.

Michael Weil: He used with.

Speaker Change: Okay. Thank you.

Speaker Change: Thanks, Brian.

Michael Weil: Thank you our.

Operator: Thank you. Our next question is from the line of Todd Thomas with KeyBank Capital Markets. Please go ahead.

Michael Weil: Next question is from the line of thought Thomas with Keybanc capital markets. Please go ahead.

Todd Michael Thomas: Good morning, Todd.

Intara Naktadjouri: Hi, good morning. This is Intara Naktadjouri on behalf of Todd Thomas. I was just wondering if you could talk about your plans to continue recycling capital in 2025. So as you execute on this year's disposition plans and look to reduce leverage further beyond your current leverage range, should we assume another year of 400 to 600 million in dispositions?

Jewelry: Hi, Good morning, this is intolerant actually jewelry on for Todd Thomas.

Intara Naktadjouri: Just wondering if you could talk about your plans to continue recycling capital in 2025, So as you execute on this year's decision disposition plans and looking to reduce leverage further beyond your current leverage range should we assume another year of 400 to 600 million of dispositions.

Michael Weil: It's a little bit early to put a number on it like that because we have not put out 2025 guidance yet, as you know. But I think it's fair to say that being at approximately $550 million of dispositions, either closed or under contract, when we put out full year disposition guidance of $400 to $600 million leads one to draw the conclusion that we very well may dispose of more in 2024. And I think I alluded in my closing comments that... As we see the value, when we can sell these assets at an average of the low seven cap rate on a cash basis, the value in continuing to lower net debt to EBITDA to generate the proceeds from these dispositions and close the gap between the implied value of where we're trading versus the actual value of these assets, I'm very comfortable in telling you that we will continue to have conversations with our This is a very slow and steady business.

Speaker Change: It's a little bit early to put a number on it like that because we have not put out 2025 guidance yet as you know I think it's fair to say that being at approximately $550 million of dispositions either closed or under contract.

Michael Weil: When we put out full year disposition guidance of $400 million to $600 million.

Michael Weil: Leads one to draw the conclusion that we very well may dispose of more in 2024, and I think I alluded in my closing comments.

Michael Weil: Debt.

Michael Weil: As we and as we see the value when we can sell these assets had an average in the low seven cap rate on a cash basis.

Michael Weil: The the value in continuing to lower net debt to EBITDA to generate the proceeds from these dispositions and close the gap between the implied value of where we're trading versus the the actual value of these assets I'm very comfortable in telling you that we will continue to have.

Michael Weil: Conversations with our board and as appropriate we will look forward to either revising 2020 for disposition guidance.

Michael Weil: Or putting out 2025, but I'm, having just completed the first quarter I don't want to get too far ahead. You know this is a very slow and steady business.

Michael Weil: We will execute. I think that you can take away from what we've done in the first quarter the commitment and focus that we have and the ability to execute on what we've said to the market. So please. Take the first quarter as a sign of what's to come, and we will continue to really look to drive value in this company.

Michael Weil: We'll execute I think that you can take away from what we've done in the first quarter the commitment and focus that we have and the ability to execute on what we said into the market. So please.

Michael Weil: Ill take the first quarter as a sign of what's to come and we will continue.

Michael Weil: To really look to drive value in this company.

Michael Weil: Got it. And so you mentioned that the cap rate range on dispositions is 78% that you're targeting, and you're doing better than that so far, but has there been any change in cap rates as you continue having conversations with potential buyers and work through additional dispositions given the recent increase in interest rates?

Speaker Change: Got it and so you mentioned that the cap rate range on dispositions is 7% to 8% that you're targeting and you're doing better than that so far but has there been any change in cap rates as you continue having conversations with potential buyers and work through additional dispose given the recent increase in interest rates.

Michael Weil: So as I said earlier, our guidance for 2024 is $400 million to $600 million of dispositions and you're correct that we targeted 7% to 8%. We're at seven 2% to $550 million and again, we think that the value of the real estate.

Michael Weil: So, as I said earlier, our guidance for 2024 is $400 million to $600 million of dispositions, and you're correct that we targeted 7% to 8%. We're at 7.2% through $550 million. And again, we think that the value of the real estate, the value of the tenants that occupy the real estate, the type of real estate, will continue to see these types of disposition results.

Michael Weil: The value of the tenants that occupy the real estate the type of real estate will continue.

Michael Weil: To see these types of disposition results.

Michael Weil: I think that, you know, we've seen in the last couple of weeks a very slight release of pressure on the 10-year. It's actually been coming down, and now I see it at about 4.5 percent, which is, you know, a relief to many. We started to get close to that 5 percent, but we were executing at 7.2 in that range. So, you know, not being able to tell what the Fed steps are in 2024, I'd like to believe that we still have one to three rate cuts ahead for 2024, which will further strengthen our ability to execute on what we've laid out. So I think that we've got the wind at our backs, and we're pushing forward, and we will continue to execute and deliver results that meet or exceed the market's expectations.

Michael Weil: I think that we've seen in the last couple of weeks a very slight.

Intara Naktadjouri: Okay, I got it. Thank you.

Michael Weil: Release of pressure on the tenure, it's actually been coming down and now I see it at about four 5% which is a.

Intara Naktadjouri: Relief to many we started to get close to that 5%.

Intara Naktadjouri: But we were executing at 7.2 in that range. So you know not being able to tell what the fed steps are in 2024 I'd like to believe that we still have.

Intara Naktadjouri: One to three rate cuts ahead for 2024, which will further strengthen our ability to execute on.

Intara Naktadjouri: And what we've laid out so I think that we've got winded our back and we're pushing forward and we will continue to execute and deliver results that meet or exceed the market's expectations.

Speaker Change: Okay got it thank you.

Intara Naktadjouri: Yeah.

Speaker Change: Thank you ladies.

Operator: Thank you. Ladies and gentlemen, we take our last question from the line of Mitch Germain with Citizens JMP. Please go ahead.

Speaker Change: Ladies and gentlemen, we take our last question from the line of Mitch jump on but citizens D. M. B. Please go ahead.

Mitchell Bradley Germain: Yeah, Thanks, a lot.

Mitchell Bradley Germain: Yeah, thanks a lot. Thank you so much for taking the time to answer my question.

Mitchell Bradley Germain: So unless youre, taking my question.

Mitchell Bradley Germain: I'm trying to understand the situation with.

Michael Weil: You know, I'm trying to understand the situation with Clousner. I think I'm saying it right. So it seems like some of the issues that they were experiencing began in the middle part of last year. Were they on your watch list, or is this something that is this kind of aligned with what you expected, or did the situation get worse than you anticipated?

Mitchell Bradley Germain: Klausner, I think I'm, saying the right so yes.

Speaker Change: Okay great.

Michael Weil: So it seems like some of the issues that they were experiencing again.

Michael Weil: Middle part of last year.

Michael Weil: Are they on your watch list or is it something that is just kind of aligned with what you expected the situation get worse than you anticipated.

Michael Weil: No, this was all, we were very aware that this was, you know, something that we were monitoring, we were in talks with them, you know, it was a manufacturing industrial type facility, so I think that when you take into account the situation, I think that we've managed to have a good outcome. They're taking, as we said in the call, two of the buildings they've released back at the exact same rate.

Michael Weil: No. This was that we were very aware this was.

Michael Weil: You know something that we were monitoring were in talks with them.

Michael Weil: You know it was a.

Michael Weil: Manufacturing industrial type facility so.

Michael Weil: Think that is.

Michael Weil: When you take into account the situation I think that we've managed to have a good outcome.

Michael Weil: They're taking as as we said in the call two of the buildings they've released back with the exact same rate two of the properties are already under contract to sell and and most importantly, Mitch is as you know being an industrial tenant there rent per square foot was.

Michael Weil: Two of the properties are already under contract to sell. And most importantly, Mitch, as you know, being an industrial tenant, their rent per square foot was very low. So although it had kind of a headline impact on occupancy, it really had a very de minimis impact on earnings. And we're going to see both recover in the second quarter.

Michael Weil: Very low so although it had a.

Michael Weil: Kind of a headline impact on occupancy it really had very de Minimis impact on earnings and we're going to see both recover in the second quarter. So I am very pleased and again I do think that the strength of our asset management platform and team.

Michael Weil: So I'm very pleased. And again, I do think that the strength of our asset management platform and team, being able to release the two properties, sell two properties that quickly, I think is validation that we were not caught flat footed. Nobody ever likes to see a bankruptcy. But if I can switch the page on a little bit, I do want to highlight

Michael Weil: You know being able to re lease the two property sell two properties that quickly I think is is validation that we were not caught flat footed nobody ever likes to see a bankruptcy, but if I can switch the page on a little bit you know I I do want to.

Michael Weil: I like.

Michael Weil: Back in 2019, again, looking at our asset management performance, we saw the Family Dollar, and Dollar Tree Merger and frankly didn't think that it made a whole lot of sense. We owned Family Dollar stores, and we sold them in 2019 at a very attractive $7.20 cap rate. So avoiding essentially this repositioning that they're going to be undertaking in 2024 and 2025. So, you know, the focus on the portfolio on a daily basis is really important, and we never want to be caught flat-footed. I don't want to say we're perfect, but being able to proactively manage this 1,300-property portfolio is really beneficial in the short term and long term.

Michael Weil: Back in 2019 again looking at our asset management performance.

Michael Weil: We saw the the family dollar.

Michael Weil: Dollar tree merger, and frankly didn't think that it made a whole lot of sense.

Michael Weil: We owned family dollar stores, and we sold them in 2019 at a very attractive 720 cap rate.

Michael Weil:

Michael Weil: So avoiding essentially this repositioning that theyre going to be undertaking in 2024 and 2025.

Michael Weil:

Michael Weil: So.

Michael Weil: The focus on the portfolio on a daily basis.

Michael Weil: It is really important and we never want to be caught flat footed I don't want to say we're perfect.

Michael Weil: But being able to proactively manage this 1300 property portfolio.

Michael Weil: Is really beneficial.

Michael Weil: In the short term and long term.

Michael Weil: Great, that's super helpful, and I know that we mentioned Roo and you mentioned Family Dollar, and I guess are there any other Klausner or other situations that exist in the portfolio that we need to be aware of, i.e., is there something on your watch list that might be more actionable, you know, versus something that you're just kind of looking for potentially?

Speaker Change: Great. That's super helpful and I know that you mentioned grew and you mentioned family dollar and.

Michael Weil: I guess is there any other klausner or other situations that exist in the portfolio that you know kind of we need to be aware of I E.

Michael Weil: Is there something on your watch list that might be more actionable versus something that you're just kind of looking for.

Michael Weil: Yeah.

Michael Weil: Yeah, so the short answer is no. And, you know, the longer answer is that we have a very close hold on this portfolio. And we've taken all that into consideration when we gave guidance for 2024 that we're very confident in achieving, both on an earnings per share basis and a lowering of net debt to EBITDA. So, you know, there can be things that happen in the portfolio, but I don't anticipate anything material.

Speaker Change: Yeah. So the short answer is no and the longer answer is.

Michael Weil: We have a very close hold on this portfolio and we've taken all that into consideration when we gave guidance for 2024 that we're very confident in.

Michael Weil: Achieving.

Michael Weil: Both on an earnings per share basis, and in a lowering of net debt to EBITDA.

Michael Weil: You know there.

Michael Weil: There can be things that happen in the portfolio, but I don't anticipate anything material and I think that as <unk>.

Michael Weil: And I think that we're, as I said earlier, really excited. I don't remember being this excited talking about first quarter results and thinking about the remainder of the year for how we're positioned and what's to come. And you know, I'm very pleased with our execution. I maybe shouldn't say it that way.

Michael Weil: I said earlier I'm really excited I don't remember being this excited talking about first quarter results and thinking about the remainder of the year for how we're positioned and what's to come.

Michael Weil: And you know I'm very pleased with our execution, maybe you shouldn't say it that way I Hope you all are pleased with our execution in the first quarter because I think it shows the path and these results in the first quarter don't take into account the things that we finished in the first quarter.

Michael Weil: I hope you all are pleased with our execution in the first quarter because I think it shows the path. And these results in the first quarter don't take into account the things that we finished in the first quarter that are going to have a positive impact on not only the second quarter but the remainder of 2024. So you know, this is really momentum that I feel is positive, velocity that I think is incredibly valuable, and a business plan that we're going to be able to execute on because of how well we know our portfolio and all of the aspects of it, including refinancing debt, lowering interest rates, and lowering net debt to EBITDA. So we're just going to keep pushing forward in this consistent way.

Michael Weil: They're going to have a positive impact on not only the second quarter, but the remainder of 2024. So this is really <unk>.

Michael Weil: Momentum that I feel is positive velocity that I think is incredibly valuable.

Michael Weil: The business plan that we're going to be able to execute on because of how well we know our portfolio and in all of the aspects of it including refinancing debt.

Michael Weil: Lowering interest rates lowering net debt to EBITDA. So we're just going to keep pushing forward and this consistent way.

Mitchell Bradley Germain: Great, last one for me, and thanks for everyone's time. Just Chris, just confirming that hedge, the rate hedge, that that goes right to the bottom line. Is that the way to model it, or there's some sort of accounting intricacies that we need to be aware of? It goes right to the bottom line.

Speaker Change: Great last one for me and thanks for everyone's time.

Mitchell Bradley Germain: Just Chris just confirming that hedge.

Mitchell Bradley Germain: The rate hedge that is that goes right to the bottom line is that the way to model it or is there some sort of accounting intricacies that we'd need to be aware of.

Christopher J. Masterson: It goes right to the bottom line.

Mitchell Bradley Germain: It goes right to the bottom line.

Speaker Change: Thank you everyone.

Speaker Change: Thanks Mitch.

Speaker Change: Thank you.

Operator: Thank you. Ladies and gentlemen, this concludes our question and answer session. I would now hand the conference over to the management for closing comments.

Speaker Change: Ladies and gentlemen, this concludes our question and answer session I would now have the constant silver to the management for closing comments.

Speaker Change: Great. Thank you operator, well I think I've said a lot in the Q&A and in my prepared comments so.

Michael Weil: Thank you, operator. Well, I think I've said a lot in the Q&A and in my prepared comments. So I appreciate everybody taking the time. We're very excited about, directionally, where G&L is headed. And we think that we've done the work, we're showing the results, and we look forward to seeing you at conferences, taking any calls that you may have, and continuing the conversation. We believe that this is a terrific company and portfolio, and we look forward to seeing the response to this work. So, thank you all very much. Thank you. The conference of Global Net Lease has now concluded.

Operator: Thank you. The Global Net Lease conference has now concluded. Thank you for your participation. You may now disconnect your line.

Operator: I appreciate everybody taking the time, we're very excited about Directionally, where GNL is headed and we think that that where we've done the work we're showing the results and we look forward to seeing you at conferences, taking any calls that you may have and continuing the conversation. We believe that this is.

Operator: A terrific company and portfolio and we look forward to seeing.

Operator: The the response of this work so thank you all very much.

Operator: Thank you the conference of Global net lease has now concluded. Thank you for your participation you may now disconnect your lines.

Operator: Okay.

Operator: Okay.

Operator: Yeah.

Operator: Yeah.

Operator: Yeah.

Operator: Yeah.

Operator: Yeah.

Operator: Okay.

Operator: [music].

Operator: Yeah.