Exhibit 99.2

 

Global Net Lease, Inc.

Supplemental Information

Quarter ended March 31, 2017 (unaudited)

 

 

Global Net Lease, Inc.
Supplemental Information
Quarter ended March 31, 2017 (unaudited)

 

Table of Contents

 

Item		Page
Non-GAAP Definitions		3
Key Metrics		7
Consolidated Balance Sheets		8
Consolidated Statements of Operations		9
Non-GAAP Measures		10
Debt Overview		12
Future Minimum Lease Rents		13
Top Ten Tenants		14
Diversification by Property Type		15
Diversification by Tenant Industry		16
Diversification by Geography		17
Lease Expirations		18

 

Please note that totals may not add due to rounding.

 

Forward-looking Statements:

 

This supplemental package includes “forward looking statements”. Forward-looking statements may be identified by the use of words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates,” “contemplates,” “aims,” “continues,” “would” or “anticipates” or the negative of these words and phrases or similar words or phrases. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: the factors included in (i) the Annual Report on Form 10-K for the year ended December 31, 2016 of Global Net Lease, Inc. (the “Company”) filed on February 28, 2017, including those set forth under the headings “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Business,” (ii) the Quarterly Reports on Form 10-Q for the quarters ended March 31, 2016, June 30, 2016, and September 30, 2016, filed on May 6, 2016, August 8, 2016, and November 9, 2016, respectively and (iii) in future periodic reports filed by the Company under the Securities Exchange Act of 1934, as amended. While forward-looking statements reflect the Company’s good faith beliefs, they are not guarantees of future performance. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. For a further discussion of these and other factors that could impact the Company’s future results, performance or transactions, see the section entitled “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2016 filed on February 28, 2017, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Prospective investors should not place undue reliance on any forward-looking statements, which are based only on information currently available to the Company (or to third parties making the forward-looking statements).

 

  

Global Net Lease, Inc.

Supplemental Information

Quarter ended March 31, 2017 (unaudited)

 

Non-GAAP Definitions

 

This section includes non-GAAP financial measures, including Funds from Operations, Core Funds from Operations and Adjusted Funds from Operations. A description of these non-GAAP measures and reconciliations to the most directly comparable GAAP measure, which is net income, is provided below.

 

Funds from Operations, Core Funds from Operations and Adjusted Funds from Operations

 

Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts ("NAREIT"), an industry trade group, has promulgated a measure known as funds from operations ("FFO"), which we believe to be an appropriate supplemental measure to reflect the operating performance of a REIT. The use of FFO is recommended by the REIT industry as a supplemental performance measure. FFO is not equivalent to net income or loss as determined under accounting principles generally accepted in the United States ("GAAP").

 

We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as revised in February 2004 (the "White Paper"). The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from sales of property but including asset impairment write-downs, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO. Our FFO calculation complies with NAREIT's definition.

 

The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, and straight-line amortization of intangibles, which implies that the value of a real estate asset diminishes predictably over time, especially if not adequately maintained or repaired and renovated as required by relevant circumstances or as requested or required by lessees for operational purposes in order to maintain the value disclosed. We believe that, because real estate values historically rise and fall with market conditions, including inflation, interest rates, unemployment and consumer spending, presentations of operating results for a REIT using historical accounting for depreciation and certain other items may be less informative. Historical accounting for real estate involves the use of GAAP. Any other method of accounting for real estate such as the fair value method cannot be construed to be any more accurate or relevant than the comparable methodologies of real estate valuation found in GAAP. Nevertheless, we believe that the use of FFO, which excludes the impact of real estate related depreciation and amortization, among other things, provides a more complete understanding of our performance to investors and to management, and when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income. However, FFO, core funds from operations ("Core FFO") and adjusted funds from operations (“AFFO”), as described below, should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income or in its applicability in evaluating our operating performance. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP FFO, Core FFO and AFFO measures and the adjustments to GAAP in calculating FFO, Core FFO and AFFO. Other REITs may not define FFO in accordance with the current NAREIT definition (as we do) or may interpret the current NAREIT definition differently than we do or calculate Core FFO or AFFO differently than we do. Consequently, our presentation of FFO, Core FFO and AFFO may not be comparable to other similarly titled measures presented by other REITs.

 

 

Global Net Lease, Inc.

Supplemental Information

Quarter ended March 31, 2017 (unaudited)

 

Non-GAAP Definitions

 

We consider FFO, Core FFO and AFFO useful indicators of our performance. Because FFO calculations exclude such factors as depreciation and amortization of real estate assets and gains or losses from sales of operating real estate assets (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), FFO facilitates comparisons of operating performance between periods and between other REITs in our peer group.

 

Changes in the accounting and reporting promulgations under GAAP (for acquisition fees and expenses from a capitalization/depreciation model to an expensed-as-incurred model) that were put into effect in 2009 and other changes to GAAP accounting for real estate subsequent to the establishment of NAREIT's definition of FFO have prompted an increase in cash-settled expenses, specifically acquisition fees and expenses for all industries as items that are expensed under GAAP.

 

Core FFO is FFO, excluding acquisition and transaction related costs as well as certain other costs that are considered to be non-core, such as charges relating to the Listing Note and listing related fees. The purchase of properties, and the corresponding expenses associated with that process, is a key operational feature of our business plan to generate operational income and cash flows in order to make dividend payments to stockholders. In evaluating investments in real estate, we differentiate the costs to acquire the investment from the operations derived from the investment. By excluding expensed acquisition and transaction related costs as well as non-core costs, we believe Core FFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management's analysis of the investing and operating performance of our properties.

 

We exclude certain income or expense items from AFFO that we consider more reflective of investing activities, other non-cash income and expense items and the income and expense effects of other activities that are not a fundamental attribute of our business plan. These items include early extinguishment of debt and unrealized gains and losses, which may not ultimately be realized, such as gains or losses on derivative instruments, gains and losses on foreign currency transactions, and gains and losses on investments. In addition, by excluding non-cash income and expense items such as amortization of above-market and below-market leases intangibles, amortization of deferred financing costs, straight-line rent and equity-based compensation from AFFO, we believe we provide useful information regarding income and expense items which have a direct impact on our ongoing operating performance. We also include the realized gains or losses on foreign currency exchange contracts for AFFO as such items are part of our ongoing operations and affect the current operating performance of the Company. By providing AFFO, we believe we are presenting useful information that assists investors and analysts to better assess the sustainability of our ongoing operating performance without the impacts of transactions that are not related to the ongoing profitability of our portfolio of properties. We also believe that AFFO is a recognized measure of sustainable operating performance by the REIT industry. Further, we believe AFFO is useful in comparing the sustainability of our operating performance with the sustainability of the operating performance of other real estate companies. However, AFFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. Investors are cautioned that AFFO should only be used to assess the sustainability of our operating performance excluding these activities, as it excludes certain costs that have a negative effect on our operating performance during the periods in which these costs are incurred.

 

 

Global Net Lease, Inc.

Supplemental Information

Quarter ended March 31, 2017 (unaudited)

 

Non-GAAP Definitions

 

In calculating AFFO, we exclude certain expenses, which under GAAP are characterized as operating expenses in determining operating net income. All paid and accrued merger, acquisition and transaction related fees and certain other expenses negatively impact our operating performance during the period in which expenses are incurred or properties are acquired will also have negative effects on returns to investors, but are not reflective of our on-going performance. AFFO that excludes such costs and expenses would only be comparable to companies that did not have such activities. Further, under GAAP, certain contemplated non-cash fair value and other non-cash adjustments are considered operating non-cash adjustments to net income. In addition, as discussed above, we view gains and losses from fair value adjustments as items which are unrealized and may not ultimately be realized and not reflective of ongoing operations and are therefore typically adjusted for when assessing operating performance. Excluding income and expense items detailed above from our calculation of AFFO provides information consistent with management's analysis of the operating performance of the Company. Additionally, fair value adjustments, which are based on the impact of current market fluctuations and underlying assessments of general market conditions, but can also result from operational factors such as rental and occupancy rates, may not be directly related or attributable to our current operating performance. By excluding such changes that may reflect anticipated and unrealized gains or losses, we believe AFFO provides useful supplemental information.

 

As a result, we believe that the use of FFO, Core FFO and AFFO, together with the required GAAP presentations, provide a more complete understanding of our performance including relative to our peers and a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities.

 

  

Global Net Lease, Inc.

Supplemental Information

Quarter ended March 31, 2017 (unaudited)

 

Non-GAAP Definitions

 

Adjusted Earnings before Interest, Taxes, Depreciation and Amortization, Net Operating Income, Cash Net Operating Income and Adjusted Cash Net Operating Income.

 

We believe that earnings before interest, taxes, depreciation and amortization adjusted for acquisition and transaction-related expenses, other non-cash items and including our pro-rata share from unconsolidated joint ventures ("Adjusted EBITDA") is an appropriate measure of our ability to incur and service debt. Adjusted EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other REITs may calculate Adjusted EBITDA differently and our calculation should not be compared to that of other REITs.

 

Net operating income ("NOI") is a non-GAAP financial measure equal to net income (loss), the most directly comparable GAAP financial measure, less discontinued operations, interest, other income and income from preferred equity investments and investment securities, plus corporate general and administrative expense, acquisition and transaction-related expenses, depreciation and amortization, other non-cash expenses and interest expense. NOI is adjusted to include our pro rata share of NOI from unconsolidated joint ventures. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Therefore, we believe NOI is a useful measure for evaluating the operating performance of our real estate assets and to make decisions about resource allocations. Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition activity on an unlevered basis, providing perspective not immediately apparent from net income. NOI excludes certain components from net income in order to provide results that are more closely related to a property's results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income (loss) as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income (loss) as an indication of our performance or to cash flows as a measure of our liquidity.

 

Cash net operating income, or Cash NOI, is a non-GAAP financial measure that is intended to reflect the performance of our properties. We define Cash NOI as net operating income (which is separately defined herein) excluding amortization of above/below market lease intangibles and straight-line adjustments that are included in GAAP lease revenues. We believe that Cash NOI is a helpful measure that both investors and management can use to evaluate the current financial performance of our properties and it allows for comparison of our operating performance between periods and to other REITs. Cash NOI should not be considered as an alternative to net income, as an indication of our financial performance, or to cash flows as a measure of liquidity or our ability to fund all needs. The method by which we calculate and present Cash NOI may not be directly comparable to the way other REITs present Cash NOI.

 

  

Global Net Lease, Inc.

Supplemental Information

Quarter ended March 31, 2017 (unaudited)

 

Key Metrics

As of and for the three months ended March 31, 2017

Amounts in thousands, except per share data, ratios and percentages

 

Financial Results
Rental income		$	58,492
Net income attributable to stockholders			7,429
Basic and diluted net income per share attributable to stockholders [1]		$	0.11
Cash NOI			52,127
Adjusted EBITDA			48,101
AFFO attributable to stockholders			34,457
Dividends paid per share - first quarter			0.53
Dividend yield - annualized, based on quarter end share price of $24.08			8.8	%
Dividend payout ratio - first quarter			102.4	%

 

Balance Sheet and Capitalization
Equity market capitalization - based on quarter end share price of $24.08		$	1,595,763
Net debt [5] [6]			1,389,185
Enterprise value			2,984,948
Total capitalization			3,057,302
Total consolidated debt [6]			1,461,539
Total assets			2,897,636
Liquidity			105,478
Common shares outstanding as of Mar 31, 2017 (thousands)			66,269
Share price, end of quarter		$	24.08
Net debt to enterprise value			46.5	%
Net debt to adjusted EBITDA (annualized)			7.2	x
Weighted-average interest rate cost [7]			2.7	%
Weighted-average debt maturity (years)[2] [8]			1.6
Interest Coverage Ratio [3]			4.6	x

 

Real Estate Portfolio
Number of properties			312
Number of tenants			94
Square footage (millions)			22.2
Leased			100.0	%
Weighted-average remaining lease term (years) [4]			9.5

 

Footnotes:

[1] Adjusted for net income (loss) attributable to stockholders for common share equivalents.

[2] On July 25, 2016, the company extended the credit facility maturity date to July 25, 2017, with an additional one-year extension option remaining, subject to certain conditions.

[3] The interest coverage ratio is calculated by dividing adjusted EBITDA by cash paid for interest (interest expense less non-cash portion of interest expense including amortization of mortgage (discount) premium, net and mezzanine discount) for the quarter ended March 31, 2017.

[4] The weighted-average remaining lease term (years) is based on square feet.

[5] Includes the effect of cash and cash equivalents.

[6] Excludes the effect of deferred financing costs, net and mortgage (discount) premium, net

[7] The weighted average interest rate cost is based on the outstanding principal balance of the debt.

[8] The weighted average debt maturity is based on the outstanding principal balance of the debt.

 

 

Global Net Lease, Inc.

Supplemental Information

Quarter ended March 31, 2017 (unaudited)

 

Consolidated Balance Sheets

Amounts in thousands

  

		Mar 31, 2017				Dec 31, 2016
Assets
Real estate investments, at cost:
Land		$	382,010			$	376,704
Buildings, fixtures and improvements			1,989,383				1,967,930
Acquired intangible lease assets			594,319				587,061
Total real estate investments, at cost			2,965,712				2,931,695
Less accumulated depreciation and amortization			(242,508	)			(216,055	)
Total real estate investments, net			2,723,204				2,715,640
Cash and cash equivalents			72,354				69,831
Restricted cash			5,149				7,497
Derivatives, at fair value			24,292				28,700
Unbilled straight line rent			34,206				30,459
Prepaid expenses and other assets			19,579				17,577
Related party notes receivable acquired in Merger			3,211				5,138
Due from related parties			16				16
Deferred tax assets			1,591				1,586
Goodwill and other intangible assets, net			13,408				13,931
Deferred financing costs, net			626				1,092
Total assets		$	2,897,636			$	2,891,467
Liabilities and Equity
Mortgage notes payable, net of deferred financing costs		$	758,610			$	749,884
Mortgage (discount) premium, net			(2,400	)			(2,503	)
Credit facility			698,203				616,614
Mezzanine facility, net of discount			-				55,383
Below-market lease liabilities, net			30,901				33,041
Derivatives, at fair value			13,508				15,457
Due to related parties			1,348				2,162
Accounts payable and accrued expenses			22,581				22,861
Prepaid rent			20,476				18,429
Deferred tax liability			15,670				15,065
Taxes payable			7,492				9,059
Dividends payable			29				34
Total liabilities			1,566,418				1,535,486
Common stock			1,990				1,990
Additional paid-in capital			1,708,870				1,708,541
Accumulated other comprehensive loss			(13,388	)			(16,689	)
Accumulated deficit			(373,917	)			(346,058	)
Total stockholders' equity			1,323,555				1,347,784
Non-controlling interest			7,663				8,197
Total equity			1,331,218				1,355,981
Total liabilities and equity		$	2,897,636			$	2,891,467

 

  

Global Net Lease, Inc.

Supplemental Information

Quarter ended March 31, 2017 (unaudited)

 

Consolidated Statements of Operations

Amounts in thousands, except per share data

 

		Three Months Ended
		Mar 31, 2017					Dec 31, 2016					Sep 30, 2016					Jun 30, 2016
Revenues:
Rental income		$	58,492				$	50,046				$	50,756				$	51,736
Operating expense reimbursements			4,345					2,727					2,495					1,460
Total revenues			62,837					52,773					53,251					53,196
Expenses:
Property operating			7,236					5,648					4,201					3,542
Operating fees to related parties			5,730					5,113					4,862					4,959
Acquisition and transaction related			696					7,415					2,479					27
General and administrative			1,770					1,810					1,714					1,880
Equity based compensation			16					1,341					1,293					70
Depreciation and amortization			27,114					23,405					23,482					23,812
Total expenses			42,562					44,732					38,031					34,290
Operating income			20,275					8,041					15,220					18,906
Other income (expense):
Interest expense			(11,531	)				(9,004	)				(8,914	)				(10,634	)
Gains on dispositions of real estate investments			957					12,021					1,320					-
Gains (losses) on derivative instruments			(470	)				3,512					375					3,830
Unrealized gains (losses) on undesignated foreign currency advances and other hedge ineffectiveness			(882	)				4,496					1,459					4,252
Other income (expense)			7					(1	)				4					8
Total other expense, net			(11,919	)				11,024					(5,756	)				(2,544	)
Net income before income taxes			8,356					19,065					9,464					16,362
Income tax expense			(906	)				(2,994	)				(448	)				(430	)
Net income			7,450					16,071					9,016					15,932
Non-controlling interest			(21	)				(125	)				(73	)				(169	)
Net income attributable to stockholders		$	7,429				$	15,946				$	8,943				$	15,763
Basic and Diluted Earnings Per Share:
Basic and diluted net income per share attributable to stockholders		$	0.11				$	0.27				$	0.16				$	0.28
Basic and diluted weighted average shares outstanding			66,271					57,781					56,463					56,316

 

  

Global Net Lease, Inc.

Supplemental Information

Quarter ended March 31, 2017 (unaudited)

 

Non-GAAP Measures

Amounts in thousands, except per share data

 

		Three Months Ended
		Mar 31, 2017					Dec 31, 2016					Sep 30, 2016					Jun 30, 2016
EBITDA:
Net income		$	7,450				$	16,071				$	9,016				$	15,932
Depreciation and amortization			27,114					23,405					23,482					23,812
Interest expense			11,531					9,004					8,914					10,634
Income tax expense			906					2,994					448					430
EBITDA		$	47,001				$	51,474				$	41,860				$	50,808
Adjusted EBITDA:
Equity based compension		$	16				$	1,341				$	1,293				$	70
Acquisition and transaction related			696					7,415					2,479					27
Gains on dispositions of real estate investments			(957	)				(12,021	)				(1,320	)				-
(Gains) losses on derivative instruments			470					(3,512	)				(375	)				(3,830	)
Unrealized (gains) losses on undesignated foreign currency advances and other hedge ineffectiveness			882					(4,496	)				(1,459	)				(4,252	)
Other (income) expense			(7	)				1					(4	)				(8	)
Adjusted EBITDA		$	48,101				$	40,202				$	42,474				$	42,815
Net Operating Income (NOI):
Operating fees to related parties		$	5,730				$	5,113				$	4,862				$	4,959
General and administrative			1,770					1,810					1,714					1,880
NOI		$	55,601				$	47,125				$	49,050				$	49,654
Cash Net Operating Income (Cash NOI):
Amortization of above- and below- market leases and ground lease assets and liabilities, net		$	404				$	28				$	(58	)			$	(27	)
Straight-line rent			(3,878	)				(2,554	)				(2,536	)				(2,722	)
Cash NOI		$	52,127				$	44,599				$	46,456				$	46,905

 

 

Global Net Lease, Inc.

Supplemental Information

Quarter ended March 31, 2017 (unaudited)

 

Non-GAAP Measures

Amounts in thousands, except per share data

 

		Three Months Ended
		Mar 31, 2017					Dec 31, 2016					Sep 30, 2016					Jun 30, 2016
Funds from operations (FFO):
Net income attributable to stockholders (in accordance with GAAP)		$	7,429				$	15,946				$	8,943				$	15,763
Depreciation and amortization			27,114					23,405					23,482					23,812
Gains on dispositions of real estate investments [1]			(957	)				(10,521	)				(1,320	)				-
Proportionate share of adjustments for non-controlling interest to arrive at FFO			(71	)				17					(182	)				(252	)
FFO (as defined by NAREIT) attributable to stockholders		$	33,515				$	28,847				$	30,923				$	39,323
Acquisition and transaction fees [2]			696					7,415					2,479					27
Proportionate share of adjustments for non-controlling interest to arrive at Core FFO			(2	)				(60	)				(20	)				-
Core FFO attributable to stockholders		$	34,209				$	36,202				$	33,382				$	39,350
Non-cash equity based compensation			16					1,341					1,293					70
Non-cash portion of interest expense			880					929					951					2,400
Amortization of above and below-market leases and ground lease assets and liabilities, net			404					28					(58	)				(27	)
Straight-line rent			(3,878	)				(2,554	)				(2,536	)				(2,722	)
Unrealized (gains) losses on undesignated foreign currency advances and other hedge ineffectiveness			882					(4,496	)				(1,459	)				(4,252	)
Eliminate unrealized losses (gains) on foreign currency transactions [3]			1,792					(2,140	)				1,606					(2,347	)
Amortization of mortgage (discount) premium, net and mezzanine discount			153					(76	)				(121	)				(119	)
Proportionate share of adjustments for non-controlling interest to arrive at AFFO			(1	)				38					3					74
Adjusted funds from operations (AFFO) attributable to stockholders		$	34,457				$	29,272				$	33,061				$	32,427
Weighted average common shares outstanding			66,271					57,781					56,463					56,316
FFO per share		$	0.51				$	0.50				$	0.54				$	0.70
Core FFO per share			0.52					0.63					0.59					0.70
Dividends declared [4]		$	35,288				$	30,250				$	30,097				$	30,019

 

Footnotes:

 

[1] For the three months ended December 31, 2016, the gains on dispositions of real estate investments is net of $1.5 million of tax recognized (presented within income tax expense) on the sale of Hotel Winston, The Netherlands property.

 

[2] Includes merger related costs.

 

[3] For the three months ended March 31, 2017, losses on foreign currency transactions were $0.5 million, which were compromised of unrealized losses of $1.8 million offset by realized gains of $1.3 million. For the three months ended December 31, 2016, gains on foreign currency transactions were $3.5 million which were comprised of unrealized gains of $2.2 million and realized gains of $1.3 million. For the three months ended September 30, 2016, gains on foreign currency transactions were $0.4 million, which were compromised of unrealized losses of $1.6 million offset by realized gains of $2.0 million. For the three months ended June 30, 2016, gains on foreign currency transactions were $3.8 million which were comprised of unrealized gains of $2.3 million and realized gains of $1.5 million. For AFFO purposes, we add back unrealized losses (gains).

 

[4] Dividends declared to common stockholders only, and do not include distributions to non-controlling interest holders.

 

  

Global Net Lease, Inc.

Supplemental Information

Quarter ended March 31, 2017 (unaudited)

Debt Overview

As of March 31, 2017

Amounts in thousands, except ratios and percentages

 

Year of Maturity		Number of Encumbered Properties				Weighted- Average Debt Maturity (Years)				Weighted- Average Interest Rate[2]				Total Outstanding Balance[3]				Percent
Non-Recourse Debt
Remaining 2017			19				0.2				6.3	%		$	22,423
2018			9				1.5				3.0	%			127,783
2019			14				2.4				2.5	%			264,860
2020			40				3.4				2.5	%			304,904
2021			6				4.3				3.7	%			43,365
2022			-				-				-				-
2023			-				-				-				-
Total Non-Recourse Debt			88				2.7				2.8	%		$	763,336				52	%
Recourse Debt
Senior Unsecured Credit Facility[1]							0.3				2.6	%		$	698,203
Total Recourse Debt							0.3				2.6	%		$	698,203				48	%
Total Debt							1.6				2.7	%		$	1,461,539				100	%
Total Debt by Currency															Percent
USD															19	%
EUR															47	%
GBP															34	%
Total															100	%

 

Footnotes:

 

[1] On July 25, 2016, the Company extended the credit facility maturity date to July 25, 2017, with an additional one-year extension option remaining, subject to certain conditions.

 

[2] As of March 31, 2017, the Company’s total combined debt was 76.4% fixed rate or swapped to a fixed rate and 23.6% floating rate.

 

[3] Excludes the effect of deferred financing costs, net and mortgage (discount) premium, net. Current balances as of March 31, 2017 are shown in the year the loan matures.

 

 

Global Net Lease, Inc.

Supplemental Information

Quarter ended March 31, 2017 (unaudited)

 

Future Minimum Lease Rents

As of March 31, 2017

Amounts in thousands

 

		Future Minimum Base Rent Payments [1]
2017		$	171,422
2018			232,008
2019			234,884
2020			237,695
2021			235,617
2022			226,038
Thereafter			805,696
		$	2,143,360

 

Footnotes:

 

[1] Base rent is based on foreign currency exchange rates as of March 31, 2017.

 

  

Global Net Lease, Inc.

Supplemental Information

Quarter ended March 31, 2017 (unaudited)

Top Ten Tenants

As of March 31, 2017

Amounts in thousands, except percentages

 

Tenant / Lease Guarantor		Property Type		Tenant Industry		Annualized SL Rent[1]				SL Rent Percent
FedEx		Distribution		Freight		$	12,328				5	%
Government Services Administration (GSA)		Office		Government			11,620				5	%
Foster Wheeler		Office		Engineering			10,609				4	%
RWE AG		Office		Utilities			10,182				4	%
Finnair		Industrial		Aerospace			8,387				4	%
ING Bank		Office		Financial Services			8,348				4	%
Family Dollar		Retail		Discount Retail			8,050				3	%
Trinity Health		Office		Healthcare			6,584				3	%
Harper Collins		Distribution		Publishing			6,409				3	%
Quest Diagnostics, Inc.		Office		Healthcare			6,308				3	%
Subtotal						$	88,825				38	%
Remaining portfolio							147,927				62	%
Total Portfolio						$	236,752				100	%

 

Footnotes:

 

[1] SL Rent (Straight-line rent) is on an annualized basis and is based on foreign currency exchange rates as of March 31, 2017.

 

  

Global Net Lease, Inc.

Supplemental Information

Quarter ended March 31, 2017 (unaudited)

Diversification by Property Type

As of March 31, 2017

Amounts in thousands, except percentages

 

		Total Portfolio																	Unencumbered Portfolio
Property Type		Annualized SL Rent[1]				SL Rent Percent				Square Feet				Sq. ft. Percent					Annualized SL Rent[1]				SL Rent Percent				Square Feet				Sq. ft. Percent
Office		$	139,987				59	%			8,682				39	%			$	55,122				50	%			3,339				30	%
Industrial			42,096				18	%			6,408				29	%				25,966				24	%			3,671				33	%
Distribution			31,367				13	%			5,044				23	%				18,270				17	%			3,120				28	%
Retail			23,302				10	%			2,110				9	%				9,901				9	%			985				9	%
Total		$	236,752				100	%			22,244				100	%			$	109,260				100	%			11,116				100	%

 

Footnotes:

 

[1] SL Rent (Straight-line rent) is on an annualized basis and is based on foreign currency exchange rates as of March 31, 2017.

 

  

Global Net Lease, Inc.

Supplemental Information

Quarter ended March 31, 2017 (unaudited)

Diversification by Tenant Industry

As of March 31, 2017

Amounts in thousands, except percentages

 

		Total Portfolio																	Unencumbered Portfolio
Industry Type		Annualized SL Rent[1]				SL Rent Percent				Square Feet				Sq. ft. Percent					Annualized SL Rent[1]				SL Rent Percent				Square Feet				Sq. ft. Percent
Financial Services		$	31,648				13	%			2,316				10	%			$	5,003				5	%			559				5	%
Technology			15,852				7	%			1,047				5	%				4,170				4	%			165				1	%
Discount Retail			15,403				7	%			1,786				8	%				9,901				9	%			985				9	%
Aerospace			14,164				6	%			1,258				6	%				5,777				5	%			602				5	%
Government			13,821				6	%			510				2	%				12,513				11	%			432				4	%
Telecommunications			13,755				6	%			913				4	%				2,121				2	%			133				1	%
Healthcare			13,680				6	%			647				3	%				7,372				7	%			423				4	%
Freight			13,267				6	%			1,391				6	%				12,507				11	%			1,322				12	%
Energy			12,863				5	%			1,043				5	%				12,863				12	%			1,043				9	%
Utilities			11,778				5	%			673				3	%				-				-				-				-
Engineering			10,609				4	%			366				2	%				-				-				-				-
Pharmaceuticals			9,789				4	%			390				2	%				9,789				9	%			390				4	%
Retail Food Distribution			7,081				3	%			1,128				5	%				825				1	%			170				2	%
Auto Manufacturing			6,611				3	%			1,940				9	%				6,611				6	%			1,940				17	%
Publishing			6,409				3	%			873				4	%				-				-				-				-
Restaurant - Quick Service			3,387				1	%			74				0	%				-				-				-				-
Automotive Parts Supplier			3,337				1	%			411				2	%				1,311				1	%			91				1	%
Logistics			2,988				1	%			1,273				6	%				-				-				-				-
Metal Processing			2,862				1	%			448				2	%				2,862				3	%			448				4	%
Specialty Retail			2,860				1	%			280				1	%				-				-				-				-
Other			24,591				10	%			3,476				16	%				15,636				14	%			2,413				22	%
Total		$	236,752				100	%			22,244				100	%			$	109,260				100	%			11,116				100	%

 

Footnotes:

 

[1] SL Rent (Straight-line rent) is on an annualized basis and is based on foreign currency exchange rates as of March 31, 2017.

 

[2] Other includes 20 industry types as of March 31, 2017.

 

  

Global Net Lease, Inc.

Supplemental Information

Quarter ended March 31, 2017 (unaudited)

Diversification by Geography

As of March 31, 2017

Amounts in thousands, except percentages

 

		Total Portfolio																	Unencumbered Portfolio
Region		Annualized SL Rent[1]				SL Rent Percent				Square Feet				Sq. ft. Percent					Annualized SL Rent[1]				SL Rent Percent				Square Feet				Sq. ft. Percent
United States		$	116,635				49.3	%			11,637				52.3	%			$	102,097				93.4	%			10,586				95.2	%
Texas			21,595				9.1	%			1,870				8.4	%				17,107				15.7	%			1,468				13.2	%
Michigan			17,904				7.6	%			2,296				10.3	%				17,904				16.4	%			2,296				20.7	%
California			12,890				5.4	%			675				3.0	%				4,170				3.8	%			165				1.5	%
New Jersey			8,505				3.6	%			349				1.6	%				8,505				7.8	%			349				3.1	%
Tennessee			7,076				3.0	%			789				3.5	%				7,076				6.5	%			789				7.1	%
Indiana			4,490				1.9	%			1,114				5.0	%				4,490				4.1	%			1,114				10.0	%
Ohio			4,216				1.8	%			521				2.3	%				3,646				3.3	%			451				4.1	%
Missouri			3,428				1.4	%			309				1.4	%				3,428				3.1	%			309				2.8	%
South Carolina			3,274				1.4	%			414				1.9	%				3,274				3.0	%			414				3.7	%
Kentucky			2,753				1.2	%			355				1.6	%				2,753				2.5	%			355				3.2	%
Florida			2,646				1.1	%			180				0.8	%				2,646				2.4	%			180				1.6	%
Illinois			2,629				1.1	%			571				2.6	%				2,629				2.4	%			571				5.1	%
New York			2,398				1.0	%			221				1.0	%				2,398				2.2	%			221				2.0	%
Minnesota			2,135				0.9	%			150				0.7	%				2,135				2.0	%			150				1.3	%
Pennsylvania			1,952				0.8	%			234				1.1	%				1,952				1.8	%			234				2.1	%
Maine			1,877				0.8	%			50				0.2	%				1,877				1.7	%			50				0.4	%
Massachusetts			1,772				0.7	%			127				0.6	%				1,772				1.6	%			127				1.1	%
North Carolina			1,539				0.7	%			192				0.9	%				779				0.7	%			123				1.1	%
South Dakota			1,284				0.5	%			54				0.2	%				1,284				1.2	%			54				0.5	%
Kansas			1,275				0.5	%			179				0.8	%				1,275				1.2	%			179				1.6	%
Louisiana			1,260				0.5	%			137				0.6	%				1,260				1.2	%			137				1.2	%
Colorado			1,088				0.5	%			27				0.1	%				1,088				1.0	%			27				0.2	%
West Virginia			980				0.4	%			104				0.5	%				980				0.9	%			104				0.9	%
North Dakota			884				0.4	%			47				0.2	%				884				0.8	%			47				0.4	%
Oklahoma			825				0.3	%			89				0.4	%				825				0.8	%			89				0.8	%
Mississippi			800				0.3	%			81				0.4	%				800				0.7	%			81				0.7	%
Alabama			791				0.3	%			74				0.3	%				791				0.7	%			74				0.7	%
Maryland			785				0.3	%			120				0.5	%				785				0.7	%			120				1.1	%
Nebraska			564				0.2	%			58				0.3	%				564				0.5	%			58				0.5	%
New Mexico			556				0.2	%			46				0.2	%				556				0.5	%			46				0.4	%
Georgia			449				0.2	%			41				0.2	%				449				0.4	%			41				0.4	%
Montana			441				0.2	%			54				0.2	%				441				0.4	%			54				0.5	%
Utah			395				0.2	%			20				0.1	%				395				0.4	%			20				0.2	%
Delaware			360				0.2	%			10				0.0	%				360				0.3	%			10				0.1	%
Iowa			296				0.1	%			32				0.1	%				296				0.3	%			32				0.3	%
Idaho			201				0.1	%			16				0.1	%				201				0.2	%			16				0.1	%
Arizona			156				0.1	%			16				0.1	%				156				0.1	%			16				0.1	%
Arkansas			89				0.0	%			8				0.0	%				89				0.1	%			8				0.1	%
Virginia			76				0.0	%			8				0.0	%				76				0.1	%			8				0.1	%
United Kingdom			51,714				21.8	%			4,080				18.3	%				-				-				-				-
Germany			19,297				8.2	%			2,178				9.8	%				-				-				-				-
The Netherlands			15,511				6.6	%			1,039				4.7	%				7,163				6.6	%			530				4.8	%
Finland			13,889				5.9	%			1,457				6.6	%				-				-				-				-
France			11,791				5.0	%			1,632				7.3	%				-				-				-				-
Luxembourg			4,703				2.0	%			156				0.7	%				-				-				-				-
US Province			3,212				1.4	%			65				0.3	%				-				-				-				-
Total		$	236,752				100	%			22,244				100	%			$	109,260				100	%			11,116				100	%

 

Footnotes:

 

[1] SL Rent (Straight-line rent) is on an annualized basis and is based on foreign currency exchange rates as of March 31, 2017.

 

  

Global Net Lease, Inc.

Supplemental Information

Quarter ended March 31, 2017 (unaudited)

Lease Expirations

As of March 31, 2017

Amounts in thousands, except lease count and percentages

 

Year of Expiration		Number of Leases Expiring				Annualized SL Rent[1]				SL Rent Percent				Leased Rentable Square Feet				Percent of Rentable Square Feet Expiring
Remaining 2017			-			$	-				-				-				-
2018			-				-				-				-				-
2019			-				-				-				-				-
2020			2				3,482				1.5	%			386				1.7	%
2021			2				5,003				2.1	%			323				1.5	%
2022			16				23,613				10.0	%			1,553				7.0	%
2023			31				27,361				11.6	%			2,554				11.5	%
2024			45				65,245				27.6	%			5,869				26.4	%
2025			38				35,698				15.1	%			3,211				14.4	%
2026			15				20,351				8.6	%			1,940				8.7	%
2027			10				2,931				1.2	%			324				1.5	%
2028			29				7,135				3.0	%			885				4.0	%
2029			105				20,899				8.8	%			2,079				9.3	%
2030			10				7,332				3.1	%			458				2.1	%
2031			-				-				-				-				-
2032			-				-				-				-				-
Thereafter (>2032)			9				17,702				7.5	%			2,661				11.9	%
Total			312			$	236,752				100	%			22,244				100	%

 

 

 

Footnotes:

 

[1] SL Rent (Straight-line rent) is on an annualized basis and is based on foreign currency exchange rates as of March 31, 2017.