Q4 2024 Global Net Lease Inc Earnings Call
Greetings and welcome to the Global Net Lease fourth quarter and full year 2024 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad.
As a reminder, this conference is being recorded. I would now like to turn the call over to Jordyn Schoenfeld, Associate at Global Net Lease.
Please go ahead.
Thank you. Good morning, everyone, and thank you for joining us for G&L's fourth quarter and full year 2024 earnings call. Joining me today on the call is Michael 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 Security Litigation Reform Acts of 1995.
Please review the forward-looking and cautionary statements section at the end of our fourth quarter 2024 earnings release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today.
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 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 annual report on Form 10-K for the year ended December 31st, 2024, which was filed on February 27th, 2025. I'll now turn the call over to our Chief Executive Officer, Michael Weil. Mike?
Michael Weil: Thanks Jordyn. Good morning and thank you all for joining us today. 2024 was a remarkable year for G&L, marked by the achievement of all of the financial objectives we outlined at the time of the merger and internalization and at the start of the year.
Michael Weil: One of the most exciting highlights was meeting and exceeding our full year guidance completing $835 million in dispositions during the year at a cash cap rate of seven 1% occupied assets with a weighted average remaining lease term of only 4.9 years.
Michael Weil: This total surpassed the high end of our revised guidance range of $650 million to $800 million and exceeded the original high end projection by $235 million.
Michael Weil: The proceeds from these transactions were used to reduce outstanding net debt by $734 million lowering our net debt to adjusted EBITDA ratio from 8.4 times at the start of the year to seven six times at the end of the year we.
Michael Weil: We believe these strategic sales enhance the overall quality of our portfolio and position GNL for long term growth reinforcing our commitment to delivering value to our shareholders. Despite the significant volume of dispositions, including selling $63 million in annual base rent are 2024 a M.
Michael Weil: F O per share totaled $1.32.
Michael Weil: Within our original guidance range of $1 30 to $1 40 fence, highlighting the strength of our strategy and disciplined execution.
Michael Weil: An additional highlight was delivering $85 million in annual recurring savings as of third quarter of 2024 as a result of the merger and internalization with the necessity retail REIT exceeding our initial target of $75 million of cost synergies.
Michael Weil: This accomplishment underscores the strength of our integration efforts and our ability to unlock value from strategic initiatives.
Michael Weil: Another area of focus in 'twenty, 'twenty, four with increasing portfolio occupancy, particularly through new leasing activity and attractive renewals.
Michael Weil: We raised the occupancy rates from 93% as of the end of the first quarter of 2024% to 97% as of the end of the fourth quarter 2024, reflecting the strength and efficiency of our in house asset management team.
Michael Weil: This achievement not only enhances our revenue base, but also solidifies the resilience of our portfolio positioning us for sustained growth as we continued to meet tenant demand.
Michael Weil: On the leasing front, we achieved positive leasing spreads encompassing nearly 1.2 million square feet with attractive renewal spreads that were six 8% higher than the expiring rents.
Michael Weil: New leases that were completed in the fourth quarter of 2024 have a weighted average lease term of 9.7 years, while renewals that were completed during this period have a weighted average lease term of six five years.
Michael Weil: Notably the single tenant segment completed 14, new leases and renewals highlighted by a six 5% renewal spread and the multi tenant segment completed 58, new leases and renewals, resulting in a 7.1% renewal spread.
Michael Weil: Last our 2024 financial strategy, Besides derisking, our balance sheet by proactively managing near term debt maturities. We successfully paid off all of the debt that was scheduled to mature in 2024 through dispositions or refinancing onto our revolving credit facility.
We have no debt maturities until August 2025, and have proactively redo the start 2025 debt maturity balanced from the $715 million at original issuance to $465 million.
We believe we will have several strategic options to address that balance, including refinancing through the revolving credit facility and ABS transaction or an unsecured bond offering.
Michael Weil: We're excited about our recently announced transaction that we believe is in the best long term interest of GNL shareholders and continues the momentum we achieved in 2024.
Michael Weil: We have entered into a binding agreement to sell 100 noncore multi tenant properties to our C. G ventures holdings for approximately $1 $8 billion at a cash cap rate of eight 4%.
Michael Weil: This cap rate is based on the trailing 12 months of cash NOI as of Q3 'twenty four.
Michael Weil: The <unk> transaction would represent the most significant step in our strategic disposition initiative and it's expected to deliver a wide range of benefits from a clear focus on long term value.
Michael Weil: We believe the transaction is a disciplined and prudent approach to accelerating our debt reduction efforts and would result in a substantial decrease in net debt to adjusted EBITDA, which post transaction, we expect to be in the range of six five times to 7.1 times.
Michael Weil: This meaningful improvement will enhance our ability to secure an investment grade credit rating, which we expect will lower our cost of capital and provide financial flexibility to fuel long term growth.
Michael Weil: The buyer agreed to assume the two multi tenant mortgage loans and we expect to use the net proceeds to repay most of the outstanding balance on our revolving credit facility, leaving it largely undrawn and enhancing financial flexibility.
Michael Weil: The resulting lower leverage is expected to increase the potential multiple expansion.
Michael Weil: As the valuation gap with our net lease peers and generate additional interest from institutional investors.
Michael Weil: The <unk> transaction would transform GNL into a pure play single tenant net lease company without the operational complexities G&A expenses and capital expenditures associated with multi tenant retail properties.
Michael Weil: We expect that it will enhance key portfolio and financial metrics by reducing G&A by $6 $5 million annually boosting occupancy to 98% and extending wall to 6.4 years. Please.
Michael Weil: Please refer to our Investor presentation, we recently filed for additional information.
Michael Weil: As mentioned, we're taking this important step because we believe it's long term benefits far exceed some of the near term effects.
Michael Weil: Given that the transaction would impact earnings the board plans to reduce our quarterly dividend per share of common stock from 27, and a half cents to <unk> 19 per share beginning with the dividend expected to be declared in April of 2025.
Michael Weil: We believe the dividend reset aligns well with our long term strategy of reducing leverage and increasing liquidity as it will generate $78 million in incremental cash flow.
Michael Weil: We're also pleased to announce that in addition to the <unk> transaction. The board has also approved a share repurchase program.
Michael Weil: Horizon, the company to Opportunistically repurchase up to $300 million of its outstanding common stock.
Michael Weil: As I mentioned this transaction has enabled us to deleverage at an accelerated pace, creating the flexibility to consider share repurchases and option that while possible without a sale would be impractical, given our previous leverage levels. Our board of directors believes the stock buyback presents a more.
Michael Weil: Compelling and accretive opportunity for GNL compared to the real estate assets currently available in the market.
Michael Weil: In addition to the RCD transaction during 2025, we expect to sell several non core properties in our single tenant portfolio.
Michael Weil: Through February 25, 2025, this pipeline, which includes transactions that are closed under PSA and under LOI.
Michael Weil: <unk> $2 $1 billion at a cash cap rate of eight 5% occupied assets and a weighted average remaining lease term of five six years.
Michael Weil: Including both 2020 four dispositions and the 2025 pipeline, we anticipate completing nearly $3 billion in dispositions by the end of year, while still retaining appropriate scale to operate efficiently with approximately $6 billion of real estate assets.
Michael Weil: Turning to our portfolio at the end of the fourth quarter, we owned over 1100 properties spanning over 60 million rentable square feet at a weighted average remaining lease term of six two years.
Michael Weil: Our continued ability to limit exposure to high risk geography asset types tenants and industries is a testament to our portfolio's impressive diversification and credit underwriting.
Michael Weil: No single tenant accounts for more than three 5% of total straight line rent and our top 10 tenants collectively contribute only 21% of total straight line rent.
Michael Weil: We carefully monitor all tenants in our portfolio and their business operations on a regular basis.
Geographically, 80% of our straight line rent is earned in North America and 20% in Europe.
Michael Weil: We expect to shift to 72% and 28% respectively. Upon completing the multi tenant portfolio sale.
Michael Weil: The portfolio features a stable tenant base and a high quality of earnings with an industry, leading 61% of tenants receiving an investment grade or implied investment grade rating. The portfolio features and average annual contractual rental increase of one 3%, which excludes the impact of 14, 8% of.
Michael Weil: The portfolio with CPI linked leases that have historically experienced significantly higher rental increases.
Michael Weil: Courage, everyone to look at the details of each segment of our portfolio, which can be found in our Q4 2024 investor presentation on our website.
Michael Weil: We're pleased to have delivered on all of the financial objectives, we set for 2024, reflecting a year of strong performance and disciplined execution. Looking ahead, we're excited about gnl's future and the opportunities that lie ahead in particular, the sale of our multi tenant portfolio would represent a pivotal step forward.
Michael Weil: Unlocking key levers to drive long term growth, while enabling us to sharpen our focus as a pure pet pure play net lease company.
Michael Weil: I'll turn the call over to Chris to walk through the financial results and balance sheet matters in more detail Chris.
Chris 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.
Chris Masterson: For the fourth quarter 2024, we recorded revenue of $199 1 million and a net loss attributable to common stockholders of $17 5 million compared to $206 7 million and $59 5 million respectively in the fourth quarter of 2023.
Chris Masterson: <unk> was $78 3 million or <unk> 34 per share in the fourth quarter of 2024 compared to $71 7 million or <unk> 31 per share in the fourth quarter of 2023.
<unk> in the fourth quarter of 2024 includes funds collected from children of America, a tenant that had not paid rent for the past two years, leading to a switch to cash basis accounting in 2023.
Chris Masterson: Through persistent negotiations and the unwavering dedication of our team, we successfully collected $4 $5 million and pass through overhead positively impacting <unk> and adjusted EBITDA in the quarter.
Chris Masterson: Shortly after the startup of the new year, we completed the disposition of children America office asset as part of our strategy to reduce exposure to office properties.
Chris Masterson: Looking at our balance sheet. The gross outstanding debt balance was $4 7 billion at the end of the fourth quarter of 2024 down by $256 4 million from the end of the third quarter.
Chris Masterson: Our debt is comprised of $1 billion in senior notes $1 4 billion on the multi currency revolving credit facility and $2 3 billion of outstanding gross mortgage debt.
Chris Masterson: As of the end of the fourth quarter of 2024, 91% of our data is fixed up from 80% as of December 31, 2023, reflecting debt tied to fixed rates or debt is swapped to fixed rates.
Chris Masterson: Our weighted average interest rate stood at four 8% and our interest coverage ratio was two five times.
Chris Masterson: At the end of the fourth quarter 2024, our net debt to adjusted EBITDA ratio was seven six times based on net debt of $4 6 billion.
Chris Masterson: As a reminder, our net debt to adjusted EBITDA was eight four times at the start of 2024.
Chris Masterson: As of December 31, 2024, we have liquidity of approximately $492 2 million and $460 million of capacity on our revolving credit facility.
Chris Masterson: Additionally, we had approximately $231 1 million shares of common stock outstanding and approximately $230 6 million shares outstanding on a weighted average basis for the fourth quarter of 2024.
Chris Masterson: We are pleased to introduce initial 2025 guidance, which is contingent on the sale of our multi tenant portfolio.
Chris Masterson: We project, an <unk> per share guidance range of 90.
Chris Masterson: To 96.
Chris Masterson: And a net debt to adjusted EBITDA range of six five times to seven one times.
Speaker Change: Additionally, as Mike mentioned, we expect the board will reduce our quarterly dividends per share of common stock from $27.05 per share to 19.
Beginning with the dividend expected to be cleared in April 2025.
Mike: I'll now turn the call back to Mike for some closing remarks.
Chris Masterson: Thanks, Chris.
Chris Masterson: <unk> year 2024, it was a highly productive period for GNL as we successfully executed our key financial objectives, we laid out at the start of <unk>.
Chris Masterson: We exceeded the high end of our disposition target with $835 million in closed sales.
Chris Masterson: Further reduced net debt by $734 million and surpassed our $75 million cost synergy goal by achieving $85 million $10 million above our original estimate.
Chris Masterson: Demonstrating the resilience and quality of our portfolio, we maintained strong leasing momentum throughout the year, increasing occupancy from 93% as of the end of the first quarter of 2024 to <unk>, 97% by year end <unk>.
Chris Masterson: Complimented by a positive renewal spread of six 8% across the portfolio.
Chris Masterson: Lastly, we proactively manage near term debt maturities successfully reducing the 2025 maturity balance by $250 million since the original issuance strengthening our flexibility with multiple refinancing options.
Chris Masterson: The sale of the multi tenant portfolio it would mark transformative step for GNL, allowing us to accelerate our deleveraging plan and clear a path for sustained growth.
Chris Masterson: By reducing leverage and strengthening our financial foundation, we believe will position ourselves to potentially secure an investment grade credit rating.
Chris Masterson: Milestone that would significantly lower our cost of capital and borrowing costs, while enhancing financial flexibility.
Chris Masterson: Beyond the financial benefits. This proposed transaction would simplify and refine our portfolio aligning it with our strategic vision of becoming a pure play net lease owner and operator.
Chris Masterson: The transaction is not merely a tactical move, but a strategic one and we expect would reset the company to thrive over the long term it would strengthen portfolio metrics bolster our balance sheet and increase gnl's overall financial stability and flexibility.
Chris Masterson: We view this transaction as a deliberate forward looking decision that prioritizes what is best for GNL over the long term.
Chris Masterson: This comprehensive perspective is integral to our strategy and underscores our commitment to delivering sustainable growth and value for shareholders.
Chris Masterson: Available to answer any questions you may have after the call operator, please open the line for questions.
Chris Masterson: Thank you we will now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.
A confirmation tone will indicate your line is in the question queue.
Chris Masterson: Star <unk> you'd like to remove your question from the queue for participants using speaker equipment may be necessary to pick up your handset before pressing the star keys.
Chris Masterson: Please poll for questions.
Speaker Change: Thank you. Our first question is from <unk> Rana with Keybanc capital markets. Please proceed with your question.
Rana: Alright, Thank you for taking my question.
Speaker Change: Hi, good morning.
Speaker Change: Good morning, Congrats on the deal.
Speaker Change: I'm just curious on the pricing of the portfolio.
Do you expect it to shake out or any other color there would be helpful. Thank you.
Speaker Change: Sure.
Speaker Change: I think that the way we thought about it was.
Speaker Change: <unk>.
Speaker Change: This is a 100 property portfolio.
Speaker Change: Great portfolio of shopping centers, we engaged with bank of America.
Speaker Change: And.
Speaker Change: <unk>.
Speaker Change: Look for the best buyer and <unk> brought to the table a lot of different things there.
Speaker Change: Price is one important factor, but not the only important factor we felt that their ability to execute.
Speaker Change: The way they approach the asset underwriting.
Speaker Change: And what it accomplished for US remember, we we really had talked about.
Speaker Change: Multiyear deleveraging strategy and I'm, not saying, we're finish deleveraging, but I am saying this accelerates.
Speaker Change: The deleveraging in a way that has so many benefits not.
Speaker Change: Not only from the G&A side of things, but just importantly this.
Speaker Change: Our singular focus on single tenant asset so we feel that it's a good price.
There aren't a lot of we'll call it a $1 8 billion dollar transaction in the market.
Evaluate against.
Speaker Change: We were very satisfied we appreciated their timing their speed there and their ability to underwrite and this is going to be a great transaction long term for our shareholders. So we made the decision to go ahead.
Speaker Change: Okay. Great. That's helpful. And then just on <unk>, you talked about a little bit about them already but you have no reservations on them potentially making it inefficient finish line and closing the deal correct.
Speaker Change: No. We don't we have known <unk> for a number of years and a much smaller relationship in this.
Speaker Change: But we certainly know the EMS professionals very capable of performing.
Speaker Change: And frankly, they may be a little bit on the unknown side of things, but very sophisticated basket.
Speaker Change: And we have no reservations, coupled with the fact that we have a 25 million dollar nonrefundable deposit and I know how motivated they are and we're making great progress for the first closing.
Speaker Change: Okay, Great and then just last one for me would be you rightsize the dividend again, which certainly makes sense, but you are on any further dispositions, especially in the office portfolio should we assume there could be more right sizing the dividend again in the future once the office portfolio was addressed.
Speaker Change: Yes.
Speaker Change: We never wanted to.
Speaker Change: Speculate far into the future, but I have to say we took a very.
Speaker Change: Fulsome approach to how we were going to issue guidance for 25.
Speaker Change: We looked at everything we looked at where we were we looked at the pipeline and we looked at our goals for further leverage reduction and we feel that this is a an appropriate and prudent reduction in dividend.
Speaker Change: One that gives us the safety of a strong payout ratio.
Speaker Change:
Speaker Change: So we're very comfortable and confident where we are today.
Speaker Change: And I just would add on to that without kind of over answering if you can all just think about.
Speaker Change: Between 2024, and when we close this deal with RSC G. The company will have sold about $3 billion of assets in that period.
Speaker Change: And that is over $200 million of NOI.
Speaker Change: I think it's reasonable to understand nobody likes a dividend cut and we certainly didn't discuss it and approach it with the board in a in any kind of casual way and the board certainly didn't approach it casually.
Speaker Change: But this is an appropriate reset of the dividend based on the fact that we're now a single focused single tenant portfolio or we will be upon closing.
Speaker Change:
That's about $6 billion of assets down from roughly $9 billion.
Speaker Change: So I do think that.
Speaker Change: The logic of the reduction is there and frankly something that a number of analysts and investors have asked us about.
Speaker Change:
Speaker Change: And I'll.
Speaker Change: I will just end by saying I do think it's appropriate and I think we're well positioned for go forward.
Speaker Change: Okay, Great that was helpful. That's it for me. Thank you and I'm also going to just ask you to remember the fact that this is about $80 million of.
Speaker Change: Recurring free cash flow.
Speaker Change: Which is just again another important and strong thing for the company.
Speaker Change: Yeah.
Speaker Change: Great. Thank you.
Speaker Change: Oh.
Speaker Change: As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad.
Speaker Change: Our next question is from Eric <unk> with BMO capital markets.
Speaker Change: Good morning, Eric.
Speaker Change: Hey, good morning, I just had a question on the portfolio sale was there a write down associated with that sale just correct me if I'm wrong.
Speaker Change: I remember it was valued at around $2 7 billion versus the $1 7 billion of proceeds expected today. So just curious if you could provide any color there on what the Delta is I know there was some asset sales last year that may contribute to it but if there's anything else that you could provide that would be helpful.
Speaker Change: Chris you want to take would you like yes, I'd like to think so just the first the $2 7 billion that goes back to gross asset values that were previously on the RTL books as opposed to what came over on GNL and where they stood on RV.
Speaker Change: <unk>.
Speaker Change: And at this point.
Speaker Change: We did not take a write down we actually do expect when the transaction fully closes that will be in a position, where we have a realized gain.
Speaker Change: Okay. That's helpful and then on the annual Capex side, the reduction from 44 to 10.
Definitely helpful in terms of to the bottom line, but.
Speaker Change: I would've thought it would've been just a little bit lower given your net lease.
Speaker Change: Our business model, so just anything.
Speaker Change: Incremental there would be helpful. Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Like.
Speaker Change: Just about every net lease REIT theres, a theres a mix of triple net and double net and as a proactive landlord.
Speaker Change: <unk> <unk>.
Certain work that needs to be done that we bought before.
Speaker Change: Okay.
Speaker Change: And then how should we think about the use of proceeds in terms of a pecking order.
Speaker Change: What is most.
Speaker Change: What is what is their number one priority today.
Speaker Change: In terms of a potential share repurchase continuing to delever and acquisitions.
Speaker Change: Okay.
Speaker Change: I will without hesitation tell you acquisitions as number three least important.
Speaker Change: I can't prioritize.
Speaker Change: Definitively.
Speaker Change: Leverage reduction with stock buyback because stock buyback the board approved a $300 million stock buyback and we will use it opportunistically and strategically.
Speaker Change: But in the overall scheme of things of course, the majority of the proceeds will be used for leverage reduction.
Speaker Change: Chris.
Chris Masterson: And I are very excited about seeing our balance on our credit facility essentially taken to zero.
Speaker Change: The <unk> transaction they are assuming.
Speaker Change: Little over $400 million of see MBS.
Speaker Change: So it's just going to change our leverage profile of the company and just as important it's also going to change our liquidity profile.
Speaker Change: So I would.
Speaker Change: Look very much forward to the to the time that acquisitions are interesting to us, but frankly, I'm a little under underwhelmed with what's in the market from an acquisition standpoint.
Speaker Change: I see.
Speaker Change: See cap rates and cost of debt and I don't see.
Speaker Change: The same opportunities that I would have said existed probably five years ago three years ago.
Speaker Change: So this is very interesting and.
Speaker Change: Fortunate timing for us because we're able to reshape the company at a time, where being out of the acquisition market for the near term.
Speaker Change: Is actually a benefit.
Speaker Change: And we're really going to take advantage of that and be positioned when when markets.
Speaker Change: Present opportunities that are that are worth.
Speaker Change: Acquiring and seeing the accretion will be in a good position to participate in that but I don't think thats.
Speaker Change: Near term.
Speaker Change: Well, thank you very much I'll leave it there.
Eric: Thanks, Eric.
Speaker Change: Thank you our final question will come from Mitch Germain with citizens JMP.
Speaker Change: Good morning, Thank you Michael.
Speaker Change: Please don't say that word Atlas.
Speaker Change: Kidding.
No.
Speaker Change: You did so much right 3 billion ish give or take.
Speaker Change: And while you probably want to.
Speaker Change: At least for us a little.
Speaker Change: Ask the question what's next right. So obviously, you've mentioned and office exit.
Speaker Change: It's certainly something that you are.
Speaker Change: Potentially going to pursue.
Speaker Change: Are there any barriers because of you've got some debt.
Speaker Change: Outside the U S are there any barriers or covenants that prevent you from doing something similar transaction in the office sector.
Speaker Change: Well first of all we've known each other a long time Mitch So there's no time for rest we're ready to go.
Speaker Change: We work very hard.
To get the <unk> deal to a point, where we felt that it should be announced and had the deposit nonrefundable.
Speaker Change: And then we turned right obviously to today.
Speaker Change: I want to point out that.
Speaker Change: The <unk> transaction.
Speaker Change: <unk>.
Speaker Change: Closing in three tranches the first at the end of the first quarter the end of March.
Speaker Change: Next to towards the end of June so we're going to be very busy.
Making sure that everything is moving along loan assumptions transfers et cetera.
Speaker Change: I would like to point out.
Speaker Change: Closing of the <unk> transaction GNL, 75% of our straight line rent is going to come from single tenant net lease retail industrial and distribution.
Speaker Change: Yes.
Speaker Change: Prior that was only 55% so we will be predominantly retail industrial and distribution, which I think is a very valuable mix.
Speaker Change: We will and have already spoken about opportunistic dispositions that we will continue to look at.
Speaker Change: We have certain office properties that.
Speaker Change: Our long term leases with great tenants that we feel very good about.
Speaker Change: And we have others that we feel might be categorized or are categorized as non core that we will look to continue doing what I think we've shown the market, we do really well which is strategic disposition.
Speaker Change: Of non core assets so.
Speaker Change: We've put out full year guidance for 2025.
Speaker Change: And we've taken into account some additional.
Speaker Change: Noncore asset.
Speaker Change: Dispositions, so I think 2025 is.
Speaker Change: Pretty clearly designated and we're looking forward to the execution again, something that I think we've shown the market. We can do well we do execute just like we do we exceeded our $75 million of deal synergies, we achieved $85 million.
Speaker Change: We're going to just the pins are set up we're going to knock them down.
Speaker Change: We're going to enjoy the deleveraging.
Speaker Change: Getting in that sub seven times. This quickly you know you and I've talked about it.
Speaker Change: If we hadn't announced the <unk> deal I think we were probably one five to two years to achieve what we announced.
Speaker Change: 2025 guidance.
Speaker Change: So great team, we worked really hard.
Speaker Change: But theres still a lot that we're excited to CBA comp 25.
Speaker Change: So is there any other sales over.
Speaker Change: The $2, one give or take 1 billion that you have on the slide deck and in your Investor presentation is there anything else assumed on top of that or is that what's in your guidance today.
If.
Speaker Change: I have a slide in the deck that I want to reference.
Speaker Change: It talks about our pipeline.
Speaker Change: And it's.
Okay.
Speaker Change: Successfully executing disposition plan as the slide Mitch we can talk about it later today.
Speaker Change: It's it's two 2 billion and almost $2 1 billion Scott stuff, that's under PSA LOI, I guess and I recognize some of its closed also I recognize all of that is what right now is under contemplation I'm curious does guidance assume anything on top of that right.
Speaker Change: Because I would assume the bulk of this will be done by the end of the second quarter. So we still have six months after that left in the year. So should we be thinking about other dispositions on top of the whats.
Speaker Change: A reference on the slide right now.
Speaker Change: I think that you should rely on the guidance that we put out for 2025.
Speaker Change: Yes.
Speaker Change: The.
Speaker Change: <unk> per share and the net debt to EBITDA. It takes into account what we're looking at for full year 'twenty five as far as additional opportunistic dispositions.
Speaker Change: Okay. That's helpful. Can you just talk a little bit about the bidding process I mean, I recognize I think you mentioned bank of America, helping out.
Speaker Change: <unk> relationship with <unk>, but.
Speaker Change: <unk>.
Speaker Change: Was this.
How many parties I know that.
Speaker Change: They want to be careful what you share, but I'm, just curious more or less kind of what how the process played out.
Speaker Change: So I am going to be careful because I will only talk to what we've disclosed publicly.
Speaker Change: We did engage bank of America.
Speaker Change: To run the process.
Speaker Change: It was a multi party.
Speaker Change: Process.
Speaker Change: There were several bidders that were full portfolio bidders there were a number of bidders that we're looking at breaking up the portfolio.
Speaker Change: But when we took into account <unk> interest in the full portfolio their timing and ability to execute.
Speaker Change: There were a lot of factors that went into the evaluation.
Speaker Change: We're clearly.
Speaker Change: The best buyer for this portfolio and that's how the Decisioning game debate.
Speaker Change: Great last one for me I just.
Speaker Change: Circling back to that $4 5 million. So that's just a one timer right, Chris we should remove that from the run rate and it's sitting in.
Speaker Change: Operating restaurant now.
Speaker Change: Correct.
Speaker Change: Okay, great. Thank you congrats alright, thanks, Nick.
Speaker Change: Thank you.
Speaker Change: Thank you there are no further questions at this time I'd like to hand, the floor back over to management for any closing remarks.
Speaker Change: Great well, thanks, everybody as always we appreciate you, giving us some time to discuss what we think.
Speaker Change: It was really important news for global net lease.
Speaker Change: We continue to be available we look forward to talking to anybody that has questions.
Speaker Change: And we will continue to update you on the progress and success.
Speaker Change: And this is a great way for us to finish up 2024 and kick off 2025. So thanks again.
Speaker Change: Okay.
Speaker Change: This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.