Global Net Lease, Inc 10-Q for FY2021 Q3

Global Net Lease, Inc. (GNL)

10-Q 2021-11-04 For: 2021-09-30

Added on April 08, 2026

About this 10-Q

Global Net Lease, Inc filed this 10-Q on November 4, 2021, covering the quarter ended September 30, 2021 (FY2021 Q3).

Headline figures

Quarter ended September 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $95.76M; up 15.8% from $82.71M a year earlier
Net income: $7.39M; up 78.4% from net income of $4.14M a year earlier
Diluted EPS: $0.02; compared with -$0.01 a year earlier

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			Page
PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020			2
Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2021 and 2020			3
Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended September 30, 2021 and 2020			4
Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2021			5
Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2020			6
Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2021 and 2020			7
Notes to Consolidated Financial Statements			9

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			41

Item 3. Quantitative and Qualitative Disclosures About Market Risk			65

Item 4. Controls and Procedures			65

PART II - OTHER INFORMATION

Item 1. Legal Proceedings			66

Item 1A. Risk Factors			66

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds of Registered Securities			66

Item 3. Defaults Upon Senior Securities			66

Item 4. Mine Safety Disclosures			66

Item 5. Other Information			66

Item 6. Exhibits			66

Signatures			68


	September 30, 2021		December 31, 2020
ASSETS
Real estate investments, at cost (Note 3):
Land	$	503,145	$	476,599
Buildings, fixtures and improvements	3,343,308		3,124,884
Construction in progress	6,076		5,486
Acquired intangible lease assets	731,002		711,985
Total real estate investments, at cost	4,583,531		4,318,954
Less accumulated depreciation and amortization	(782,025)		(675,200)
Total real estate investments, net	3,801,506		3,643,754
Assets held for sale	10,433		—
Cash and cash equivalents	176,393		124,245
Restricted cash	2,666		1,448
Derivative assets, at fair value (Note 8)	2,648		525
Unbilled straight-line rent	66,526		61,007
Operating lease right-of-use asset (Note 10)	54,241		58,395
Prepaid expenses and other assets	58,092		43,929
Due from related parties	181		377
Deferred tax assets	2,320		2,367
Goodwill and other intangible assets, net	22,336		23,089
Deferred financing costs, net	5,712		7,878
Total Assets	$	4,203,054	$	3,967,014

LIABILITIES AND EQUITY
Mortgage notes payable, net (Note 4)	$	1,484,890	$	1,363,698
Revolving credit facility (Note 5)	118,676		111,132
Term loan, net (Note 5)	284,342		300,154
Senior notes, net (Note 6)	491,386		490,345
Acquired intangible lease liabilities, net	30,714		32,970
Derivative liabilities, at fair value (Note 8)	8,729		19,984
Due to related parties	—		2,002
Accounts payable and accrued expenses	36,503		28,310
Operating lease liability (Note 10)	23,436		25,350
Prepaid rent	39,225		21,481
Deferred tax liability	11,357		12,157

Dividends payable	5,394		5,152
Total Liabilities	2,534,652		2,412,735
Commitments and contingencies (Note 10)	—		—
Stockholders’ Equity (Note 9):
7.25% Series A cumulative redeemable preferred stock, $0.01 par value, liquidation preference $25.00 per share, 9,959,650 shares authorized, 6,799,467 shares issued and outstanding as of September 30, 2021 and December 31, 2020	68		68
6.875% Series B cumulative redeemable perpetual preferred stock, $0.01 par value, liquidation preference $25.00 per share, 11,450,000 shares authorized, 4,503,893 and 3,861,953 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively	45		39
Common Stock, $0.01 par value, 250,000,000 shares authorized, 103,900,452 and 89,614,601 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively	2,369		2,227
Additional paid-in capital	2,674,710		2,418,659
Accumulated other comprehensive income	10,527		8,073
Accumulated deficit	(1,022,986)		(896,547)
Total Stockholders’ Equity	1,664,733		1,532,519
Non-controlling interest	3,669		21,760
Total Equity	1,668,402		1,554,279
Total Liabilities and Equity	$	4,203,054	$	3,967,014


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenue from tenants	$	95,758	$	82,711	$	284,712	$	243,062

Expenses:
Property operating	6,747		7,525		21,784		22,737
Operating fees to related parties	9,880		8,939		28,998		26,607
Impairment charges	1,199		—		7,906		—
Acquisition, transaction and other costs	54		75		99		388
General and administrative	3,911		2,641		12,240		9,014
Equity-based compensation	2,721		2,479		8,305		7,480
Depreciation and amortization	41,665		35,049		121,051		102,566
Total expenses	66,177		56,708		200,383		168,792
Operating income before gain (loss) on dispositions of real estate investments	29,581		26,003		84,329		74,270
Gain (loss) on dispositions of real estate investments	1,195		—		1,188		(153)
Operating income	30,776		26,003		85,517		74,117
Other income (expense):
Interest expense	(24,858)		(18,677)		(70,244)		(52,646)
Loss on extinguishment of debt	—		—		—		(309)
Gain (loss) on derivative instruments	3,560		(2,464)		4,888		362

Other (expense) income	(158)		142		(59)		261
Total other expense, net	(21,456)		(20,999)		(65,415)		(52,332)
Net income before income tax	9,320		5,004		20,102		21,785
Income tax expense	(1,930)		(862)		(5,940)		(2,512)
Net income	7,390		4,142		14,162		19,273

Preferred stock dividends	(5,016)		(4,644)		(15,048)		(13,771)
Net income (loss) attributable to common stockholders	$	2,374	$	(502)	$	(886)	$	5,502

Basic and Diluted Earnings (Loss) Per Share:
Net income (loss) per share attributable to common stockholders — Basic and Diluted	$	0.02	$	(0.01)	$	(0.12)	$	0.06
Weighted average common shares outstanding:
Weighted average shares outstanding — Basic	101,477,699		89,482,577		96,498,748		89,470,525
Weighted average shares outstanding — Diluted	101,477,699		89,482,577		96,498,748		89,470,525


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net income	$	7,390	$	4,142	$	14,162	$	19,273

Other comprehensive income (loss)
Cumulative translation adjustment	(9,759)		(245)		(5,858)		(15,322)
Designated derivatives, fair value adjustments	2,983		36		8,312		(10,503)
Other comprehensive (loss) income	(6,776)		(209)		2,454		(25,825)

Comprehensive income (loss)	614		3,933		16,616		(6,552)






Preferred Stock dividends	(5,016)		(4,644)		(15,048)		(13,771)

Comprehensive (loss) income attributable to common stockholders	$	(4,402)	$	(711)	$	1,568	$	(20,323)


	Nine Months Ended September 30, 2021
	Series A Preferred Stock			Series B Preferred Stock			Common Stock
	Number of Shares	Par Value		Number of Shares	Par Value		Number of Shares	Par Value		Additional Paid-in Capital		Accumulated Other Comprehensive Income		Accumulated Deficit		Total Stockholders’ Equity		Non-controlling interest		Total Equity
Balance, December 31, 2020	6,799,467	$	68	3,861,953	$	39	89,614,601	$	2,227	$	2,418,659	$	8,073	$	(896,547)	$	1,532,519	$	21,760	$	1,554,279
Issuance of Common Stock, net	—	—		—	—		11,935,349	119		213,962		—		—		214,081		—		214,081
Issuance of Series B Preferred Stock, net	—	—		641,940	6		—	—		15,872		—		—		15,878		—		15,878
Dividends declared:
Common Stock, $0.80 per share	—	—		—	—		—	—		—		—		(114,654)		(114,654)		—		(114,654)
Series A Preferred Stock, $0.90 per share	—	—		—	—		—	—		—		—		(9,243)		(9,243)		—		(9,243)
Series B Preferred Stock, $0.86 per share	—	—		—	—		—	—		—		—		(5,805)		(5,805)		—		(5,805)
Redemption of OP Units	—	—		—	—		2,135,496	21		25,276		—		—		25,297		(25,297)		—
Equity-based compensation, net of forfeitures	—	—		—	—		224,365	2		1,097		—		—		1,099		7,206		8,305
Common shares repurchased upon vesting of restricted stock	—	—		—	—		(9,359)	—		(156)		—		—		(156)		—		(156)
Distributions to non-controlling interest holders	—	—		—	—		—	—		—		—		(10,899)		(10,899)		—		(10,899)
Net Income	—	—		—	—		—	—		—		—		14,162		14,162		—		14,162
Cumulative translation adjustment	—	—		—	—		—	—		—		(5,858)		—		(5,858)		—		(5,858)
Designated derivatives, fair value adjustments	—	—		—	—		—	—		—		8,312		—		8,312		—		8,312
Balance, September 30, 2021	6,799,467	$	68	4,503,893	$	45	103,900,452	$	2,369	$	2,674,710	$	10,527	$	(1,022,986)	$	1,664,733	$	3,669	$	1,668,402


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


			OR
☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended September 30, 2021
	Series A Preferred Stock			Series B Preferred Stock			Common Stock
	Number of Shares	Par Value		Number of Shares	Par Value		Number of Shares	Par Value		Additional Paid-in Capital		Accumulated Other Comprehensive Income		Accumulated Deficit		Total Stockholders’ Equity		Non-controlling interest		Total Equity
Balance, June 30, 2021	6,799,467	$	68	4,503,893	$	45	100,469,583	$	2,335	$	2,616,383	$	17,303	$	(984,958)	$	1,651,176	$	1,423	$	1,652,599
Issuance of Common Stock, net	—	—		—	—		3,441,853	34		58,038		—		—		58,072		—		58,072
Issuance of Series B Preferred Stock, net	—	—		—	—		—	—		(30)		—		—		(30)		—		(30)
Dividends declared:																—				—
Common Stock, $0.40 per share	—	—		—	—		—	—		—		—		(40,302)		(40,302)		—		(40,302)
Series A Preferred Stock, $0.45 per share	—	—		—	—		—	—		—		—		(3,081)		(3,081)		—		(3,081)
Series B Preferred Stock,$0.43 per share	—	—		—	—		—	—		—		—		(1,935)		(1,935)		—		(1,935)
Redemption of OP Units	—	—		—	—		—	—		—		—		—		—		—		—
Equity-based compensation, net of forfeitures	—	—		—	—		(1,625)	—		475		—		—		475		2,246		2,721
Common shares repurchased upon vesting of restricted stock	—	—		—	—		(9,359)	—		(156)		—		—		(156)		—		(156)
Distributions to non-controlling interest holders	—	—		—	—		—	—		—		—		(100)		(100)		—		(100)
Net Income	—	—		—	—		—	—		—		—		7,390		7,390		—		7,390
Cumulative translation adjustment	—	—		—	—		—	—		—		(9,759)		—		(9,759)		—		(9,759)
Designated derivatives, fair value adjustments	—	—		—	—		—	—		—		2,983		—		2,983		—		2,983
Balance, September 30, 2021	6,799,467	$	68	4,503,893	$	45	103,900,452	$	2,369	$	2,674,710	$	10,527	$	(1,022,986)	$	1,664,733	$	3,669	$	1,668,402


	Nine Months Ended September 30, 2020
	Series A Preferred Stock			Series B Preferred Stock			Common Stock
	Number of Shares	Par Value		Number of Shares	Par Value		Number of Shares	Par Value		Additional Paid-in Capital		Accumulated Other Comprehensive (Loss) Income		Accumulated Deficit		Total Stockholders’ Equity		Non-controlling interest		Total Equity
Balance, December 31, 2019	6,799,467	$	68	3,450,000	$	35	89,458,752	$	2,225	$	2,408,353	$	20,195	$	(733,245)	$	1,697,631	$	12,327	$	1,709,958
Issuance of Common Stock, net	—	—		—	—		—	—		(58)		—		—		(58)		—		(58)
Issuance of Series A Preferred Stock, net	—	—		185,128	2		—	—		4,419		—		—		4,421		—		4,421
Dividends declared:																—				—
Common Stock, $1.33 per share	—	—		—	—		—	—		—		—		(119,242)		(119,242)		—		(119,242)
Series A Preferred Stock, $1.35 per share	—	—		—	—		—	—		—		—		(9,244)		(9,244)		—		(9,244)
Series B Preferred Stock, $1.29 per share	—	—		—	—		—	—		—		—		(4,527)		(4,527)		—		(4,527)
Equity-based compensation	—	—		—	—		155,849	2		403		—		—		405		7,075		7,480
Distributions to non-controlling interest holders	—	—		—	—		—	—		—		—		(337)		(337)		—		(337)
Net Income	—	—		—	—		—	—		—		—		19,273		19,273		—		19,273
Cumulative translation adjustment	—	—		—	—		—	—		—		(15,322)		—		(15,322)		—		(15,322)
Designated derivatives, fair value adjustments	—	—		—	—		—	—		—		(10,503)		—		(10,503)		—		(10,503)
Balance, September 30, 2020	6,799,467	$	68	3,635,128	$	37	89,614,601	$	2,227	$	2,413,117	$	(5,630)	$	(847,322)	$	1,562,497	$	19,402	$	1,581,899


	Three Months Ended September 30, 2020
	Series A Preferred Stock			Series B Preferred Stock			Common Stock
	Number of Shares	Par Value		Number of Shares	Par Value		Number of Shares	Par Value		Additional Paid-in Capital		Accumulated Other Comprehensive (Loss) Income		Accumulated Deficit		Total Stockholders’ Equity		Non-controlling interest		Total Equity
Balance, June 30, 2020	6,799,467	$	68	3,450,000	$	35	89,482,576	$	2,225	$	2,408,527	$	(5,421)	$	(810,923)	$	1,594,511	$	17,044	$	1,611,555
Issuance of Common Stock, net	—	—		—	—		—	—		(51)		—		—		(51)		—		(51)
Issuance of Series A Preferred Stock, net	—	—		185,128	2		—	—		4,522		—		—		4,524		—		4,524
Dividends declared:
Common Stock, $0.40 per share	—	—		—	—		—	—		—		—		(35,794)		(35,794)		—		(35,794)
Series A Preferred Stock, $0.45 per share	—	—		—	—		—	—		—		—		(3,081)		(3,081)		—		(3,081)
Series B Preferred Stock, $0.43 per share	—	—		—	—		—	—		—		—		(1,563)		(1,563)		—		(1,563)
Equity-based compensation	—	—		—	—		132,025	2		119		—		—		121		2,358		2,479
Distributions to non-controlling interest holders	—	—		—	—		—	—		—		—		(103)		(103)		—		(103)
Net Income	—	—		—	—		—	—		—		—		4,142		4,142		—		4,142
Cumulative translation adjustment	—	—		—	—		—	—		—		(245)		—		(245)		—		(245)
Designated derivatives, fair value adjustments	—	—		—	—		—	—		—		36		—		36		—		36
Balance, September 30, 2020	6,799,467	$	68	3,635,128	$	37	89,614,601	$	2,227	$	2,413,117	$	(5,630)	$	(847,322)	$	1,562,497	$	19,402	$	1,581,899


	Nine Months Ended September 30,
(Dollar amounts in thousands)	2021		2020
Real estate investments, at cost:
Land	$	37,126	$	28,622
Buildings, fixtures and improvements	273,065		121,311
Total tangible assets	310,191		149,933
Acquired intangible lease assets:
In-place leases	32,577		16,842
Above-market lease assets	216		53
Below-market lease liabilities	(1,434)		(1,040)
Total intangible assets	31,359		15,855
ROU asset	—		5,022
Mortgage note payable	(38,562)		—
Cash paid for acquired real estate investments	$	302,988	$	170,810
Number of properties purchased	6		21


Property Type	Number of Properties	Square Feet (unaudited)
Properties Acquired in 2021:
Office	1	113,713
Industrial	5	977,192
Distribution	—	—
Retail	—	—
	6	1,090,905
Properties Acquired in 2020:
Office	10	358,455
Industrial	8	2,105,007
Distribution	3	601,851
Retail	—	—
	21	3,065,313


	September 30,
(Dollar amounts in thousands)	2021
Real estate investments held for sale, at cost:
Land	$	3,200
Buildings, fixtures and improvements	10,372
Acquired intangible lease assets	3,611
Total real estate assets held for sale, at cost	17,183
Less accumulated depreciation and amortization	(6,544)
Less additional selling costs	(206)
Total real estate investments held for sale, net	$	10,433


Country / U.S. State	September 30, 2021	December 31, 2020
United States	59.0%	63.2%
Michigan	13.7%	15.3%
United Kingdom	21.5%	16.8%


		Encumbered Properties	Outstanding Loan Amount (1)				Effective Interest Rate		Interest Rate
Country	Portfolio		September 30, 2021		December 31, 2020					Maturity
			(In thousands)		(In thousands)
Finland:	Finland Properties	5	$	85,762	$	90,760	1.7%	(2)	Fixed/Variable	Feb. 2024

France:	French Properties	7	81,128		85,854		2.5%	(3)	Fixed/Variable	May 2025

Germany:	Germany Properties	5	59,686		63,165		1.8%	(4)	Fixed/Variable	Jun. 2023

Luxembourg/ The Netherlands:	Benelux Properties	3	139,074		147,178		1.4%		Fixed	Jun. 2024
	Total EUR denominated	20	365,650		386,957

United Kingdom:	McLaren Loan	3	135,939		—		6.1%		Fixed	Apr. 2024
	Trafalgar Court	1	37,687		—		2.1%		Variable	Sep. 2022
	United Kingdom Properties - Bulk Loan	42	272,024		301,979		3.1%	(5)	Fixed/Variable	Aug. 2023
	Total GBP denominated	46	445,650		301,979

United States:	Penske Logistics	1	70,000		70,000		4.7%	(6)	Fixed	Nov. 2028
	Multi-Tenant Mortgage Loan I	12	187,000		187,000		4.4%	(6)	Fixed	Nov. 2027
	Multi-Tenant Mortgage Loan II	8	32,750		32,750		4.4%	(6)	Fixed	Feb. 2028
	Multi-Tenant Mortgage Loan III	7	98,500		98,500		4.9%	(6)	Fixed	Dec. 2028
	Multi-Tenant Mortgage Loan IV	16	97,500		97,500		4.6%	(6)	Fixed	May 2029
	Multi-Tenant Mortgage Loan V	12	204,000		204,000		3.7%	(6)	Fixed	Oct. 2029
	Total USD denominated	56	689,750		689,750
	Gross mortgage notes payable	122	1,501,050		1,378,686		3.6%
	Mortgage discount		(2,622)		—
	Deferred financing costs, net of accumulated amortization (7)		(13,538)		(14,988)
	Mortgage notes payable, net	122	$	1,484,890	$	1,363,698	3.6%


(In thousands)	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total
September 30, 2021

Foreign currency forwards, net (GBP & EUR)	$	—	$	983	$	—	$	983
Interest rate swaps, net (USD,GBP & EUR)	$	—	$	(7,064)	$	—	$	(7,064)

December 31, 2020

Foreign currency forwards, net (GBP & EUR)	$	—	$	(4,025)	$	—	$	(4,025)
Interest rate swaps, net (USD,GBP & EUR)	$	—	$	(15,434)	$	—	$	(15,434)


(In thousands)	Balance Sheet Location	September 30, 2021		December 31, 2020
Derivatives designated as hedging instruments:




Interest rate “pay-fixed” swaps (USD)	Derivative liabilities, at fair value	$	(1,018)	$	(3,829)
Interest rate “pay-fixed” swaps (GBP)	Derivative assets, at fair value	1		—
Interest rate “pay-fixed” swaps (GBP)	Derivative liabilities, at fair value	(3,304)		(9,000)

Interest rate “pay-fixed” swaps (EUR)	Derivative liabilities, at fair value	(1,507)		(2,605)
Total		$	(5,828)	$	(15,434)
Derivatives not designated as hedging instruments:
Foreign currency forwards (GBP-USD)	Derivative assets, at fair value	$	1,609	$	198
Foreign currency forwards (GBP-USD)	Derivative liabilities, at fair value	(1,446)		(2,714)
Foreign currency forwards (EUR-USD)	Derivative assets, at fair value	1,038		327
Foreign currency forwards (EUR-USD)	Derivative liabilities, at fair value	(218)		(1,836)

Interest rate swaps (EUR)	Derivative liabilities, at fair value	(212)		—
Interest rate swaps (USD)	Derivative liabilities, at fair value	(1,024)		—
Total		$	(253)	$	(4,025)


	September 30, 2021			December 31, 2020
Derivatives	Number of Instruments	Notional Amount		Number of Instruments	Notional Amount
		(In thousands)			(In thousands)
Interest rate “pay-fixed” swaps (GBP)	49	$	297,001	49	$	301,210
Interest rate “pay-fixed” swaps (EUR)	15	533,061		22	641,394
Interest rate “pay-fixed” swaps (USD)	1	75,000		3	150,000
Total	65	$	905,062	74	$	1,092,604


	September 30, 2021			December 31, 2020
Derivatives	Number of Instruments	Notional Amount		Number of Instruments	Notional Amount
		(In thousands)			(In thousands)
Foreign currency forwards (GBP-USD)	43	$	68,643	41	$	41,633
Foreign currency forwards (EUR-USD)	52	50,994		40	38,634
Interest rate swaps (EUR)	7	73,014		—	—
Interest rate swaps (USD)	2	75,000		—	—



Total	104	$	267,651	81	$	80,267


(In thousands)	Future Principal Payments (1)
2021 (remainder)	$	5,047
2022	57,875
2023	306,475
2024	360,776
2025	81,127
2026	—
Thereafter	689,750
Total	$	1,501,050


									Gross Amounts Not Offset on the Balance Sheet
(In thousands)	Gross Amounts of Recognized Assets		Gross Amounts of Recognized (Liabilities)		Gross Amounts Offset on the Balance Sheet		Net Amounts of (Liabilities) Assets presented on the Balance Sheet		Financial Instruments		Cash Collateral Received (Posted)		Net Amount
September 30, 2021	$	2,648	$	(8,729)	$	—	$	(6,081)	$	—	$	—	$	(6,081)
December 31, 2020	$	525	$	(19,984)	$	—	$	(19,459)	$	—	$	—	$	(19,459)


(In thousands)	Future Base Rent Payments (1)
2021 (remainder)	$	366
2022	1,464
2023	1,464
2024	1,468
2025	1,473
2026	1,474
Thereafter	39,480
Total minimum lease payments (2)	47,189
Less: Effects of discounting	(23,753)
Total present value of lease payments	$	23,436


	Number of RSUs	Weighted-Average Issue Price
Unvested, December 31, 2020	44,949	$	15.35
Vested	(20,615)	16.22
Granted	20,176	18.71

Unvested, September 30, 2021	44,510	16.47


	Number of RSUs	Weighted-Average Issue Price
Unvested, December 31, 2019	40,541	$	20.47
Vested	(23,824)	21.71
Granted	28,232	13.37

Unvested, September 30, 2020	44,949	15.35


	Number of Restricted Shares	Weighted-Average Issue Price
Unvested, December 31, 2020	132,025	$	17.41
Vested	(30,668)	17.41
Granted	213,125	19.41
Forfeitures	(9,375)	17.41
Unvested, September 30, 2021	305,107	18.81


							Number of LTIP Units Earned
Performance Level (% of LTIP Units Earned)			Absolute TSR					2021 OPP
Below Threshold	0	%	Less than	24	%			0
Threshold	25	%		24	%			312,500
Target	50	%		30	%			625,000
Maximum	100	%		36	%	or higher		1,250,000


						Number of LTIP Units Earned
Performance Level (% of LTIP Units Earned)			Relative TSR Excess				2021 OPP
Below Threshold	0	%	Less than	-600	basis points		0
Threshold	25	%		-600	basis points		312,500
Target	50	%		0	basis points		625,000
Maximum	100	%		600	basis points		1,250,000


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except share and per share data)	2021		2020		2021		2020
Net income (loss) attributable to common stockholders	$	2,374	$	(502)	$	(886)	$	5,502
Adjustments to net income (loss) attributable to common stockholders for common share equivalents (a)	(233)		(102)		(11,130)		(366)
Adjusted net (loss) income attributable to common stockholders	$	2,141	$	(604)	$	(12,016)	$	5,136


Weighted average common shares outstanding — Basic and Diluted	101,477,699		89,482,577		96,498,748		89,470,525
Net (loss) income per share attributable to common stockholders — Basic and Diluted	$	0.02	$	(0.01)	$	(0.12)	$	0.06


Portfolio	Acquisition Date	Country	Number of Properties	Square Feet (in thousands) (1)	Average Remaining Lease Term (2)
McDonald's	Oct. 2012	UK	1	9	2.5
Wickes Building Supplies I	May 2013	UK	1	30	3.0
Everything Everywhere	Jun. 2013	UK	1	65	5.8
Thames Water	Jul. 2013	UK	1	79	3.9
Wickes Building Supplies II	Jul. 2013	UK	1	29	5.2
PPD Global Labs	Aug. 2013	US	1	77	3.2
Northern Rock	Sep. 2013	UK	2	86	1.9
Wickes Building Supplies III	Nov. 2013	UK	1	28	7.2
XPO Logistics	Nov. 2013	US	7	105	2.2
Wolverine	Dec. 2013	US	1	469	1.3
Encanto	Dec. 2013	PR	18	65	3.8
Rheinmetall	Jan. 2014	GER	1	320	2.3
GE Aviation	Jan. 2014	US	1	369	4.3
Provident Financial	Feb. 2014	UK	1	117	14.1
Crown Crest	Feb. 2014	UK	1	806	17.4
Trane	Feb. 2014	US	1	25	2.2
Aviva	Mar. 2014	UK	1	132	7.7
DFS Trading I	Mar. 2014	UK	5	240	8.5
GSA I	Mar. 2014	US	1	135	0.9
National Oilwell Varco I	Mar. 2014	US	1	24	1.8
GSA II	Apr. 2014	US	2	25	1.4
OBI DIY	Apr. 2014	GER	1	144	2.3
DFS Trading II	Apr. 2014	UK	2	39	8.5
GSA III	Apr. 2014	US	2	28	1.2
GSA IV	May 2014	US	1	33	3.8
Indiana Department of Revenue	May 2014	US	1	99	1.3
National Oilwell Varco II	May 2014	US	1	23	8.4
Nissan	May 2014	US	1	462	7.0
GSA V	Jun. 2014	US	1	27	1.5
Lippert Components	Jun. 2014	US	1	539	4.9
Select Energy Services I	Jun. 2014	US	3	136	5.1
Bell Supply Co I	Jun. 2014	US	6	80	7.3
Axon Energy Products (3)	Jun. 2014	US	3	214	3.6
Lhoist	Jun. 2014	US	1	23	11.3
GE Oil & Gas	Jun. 2014	US	2	70	3.8
Select Energy Services II	Jun. 2014	US	4	143	5.1
Bell Supply Co II	Jun. 2014	US	2	19	7.3
Superior Energy Services	Jun. 2014	US	2	42	2.5
Amcor Packaging	Jun. 2014	UK	7	295	3.2
GSA VI	Jun. 2014	US	1	7	2.5
Nimble Storage	Jun. 2014	US	1	165	0.1
FedEx -3-Pack	Jul. 2014	US	3	339	1.3
Sandoz, Inc.	Jul. 2014	US	1	154	4.8
Wyndham	Jul. 2014	US	1	32	3.6
Valassis	Jul. 2014	US	1	101	1.6
GSA VII	Jul. 2014	US	1	26	3.1


	Three Months Ended												Nine Months Ended September 30, 2021
	March 31, 2021				June 30, 2021				September 30, 2021
(In thousands)			Percentage of Dividends				Percentage of Dividends				Percentage of Dividends					Percentage of Dividends
Dividends and Distributions:
Dividends to holders of Common Stock	$	36,213			$	38,139			$	40,302			$	114,654
Dividends to holders of Series A Preferred Stock	3,081				3,081				3,081				9,243
Dividends to holders of Series B Preferred Stock	1,701				1,935				1,936				5,572
Distributions to holders of LTIP Units	103				10,696				100				10,899
Total dividends and distributions	$	41,098			$	53,851			$	45,419			$	140,368

Source of dividend and distribution coverage:
Cash flows provided by operations	$	41,098	100.0	%	$	4,678	8.7	%	$	45,419	100.0	%	$	140,368	(1)	100.0	%
Available cash on hand	—		—	%	49,173		91.3	%	—		—	%	—		(1)	—	%
Total sources of dividend and distribution coverage	$	41,098	100.0	%	$	53,851	100.0	%	$	45,419	100.0	%	$	140,368		100.0	%

Cash flows provided by operations (GAAP basis)	$	53,220			$	4,678			$	100,165			$	158,063

Net (loss) income attributable to common stockholders (in accordance with GAAP)	$	(832)			$	(2,428)			$	2,374			$	(886)


	Number of Shares Repurchased	Average Price Per Share		Total Number of Shares Purchased as Part of Publically Announced Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Plans or Programs
July 1 through July 31	—	$	—	—	—
August 1 through August 31	—	$	—	—	—
September 1 through September 30	9,359	$	16.64	—	—


Exhibit No.						Description
3.1 (1)						Articles of Restatement of Global Net Lease, Inc., effective February 24, 2021.
3.2 (2)						Amended and Restated Bylaws of Global Net Lease, Inc.
3.3 (3)						Amendment to Amended and Restated Bylaws of Global Net Lease, Inc.
10.1 (4)						Supplemental Agreement dated July 8, 2021, to Investment Facility Agreement, dated August 13, 2018, as amended, among the borrower and guarantor entities thereto and Lloyds Bank PLC.
10.2 (4)						Ninth Amendment dated August 6, 2021, to Second Amended and Restated Agreement of Limited Partnership of Global Net Lease Operating Partnership, L.P., dated June 2, 2015.
10.3 (5)						Amendment No. 1, dated as of August 6, 2021, to Equity Distribution Agreement, dated December 13, 2019, by and among Global Net Lease, Inc., Global Net Lease Operating Partnership, L.P., B. Riley Securities, Inc., KeyBanc Capital Markets Inc., BMO Capital Markets Corp., Ladenburg Thalmann & Co. Inc. and Barclays Capital Inc.
31.1 *						Certification of the Principal Executive Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 *						Certification of the Principal Financial Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32 *						Written statements of the Principal Executive Officer and Principal Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS *						Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH *						Inline XBRL Taxonomy Extension Schema Document.
101.CAL *						Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF *						Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB *						Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE *						Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104 *						Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.


			Global Net Lease, Inc.
			By:			/s/ James L. Nelson
						James L. Nelson
						Chief Executive Officer and President (Principal Executive Officer)

			By:			/s/ Christopher J. Masterson
						Christopher J. Masterson
						Chief Financial Officer, Treasurer, and Secretary (Principal Financial Officer and Principal Accounting Officer)