Global Net Lease Reports Fourth Quarter And Full Year 2017 Results

NEW YORK, Feb. 27, 2018

Fourth Quarter 2017 Highlights

• Revenue of $66.6 million up 26% over fourth quarter 2016 revenue of $52.8 million
• Net income attributable to common stockholders was $6.0 million
• Adjusted Funds from Operations ("AFFO") improved 20% to $35.2 million versus $29.3 million in fourth quarter 2016
• Acquired seven industrial/distribution properties and one office property for approximately $61.0 million
• Subsequent to quarter's end, the Company closed an $18.6 million acquisition of a distribution property and signed six definitive agreements to acquire $274 million of primarily net lease industrial and distribution properties, all located in the United States

Full Year 2017 Highlights

• Revenue of $259.3 million up 21% over revenue of $214.2 million in prior year
• Net income attributable to common stockholders was $20.7 million
• Adjusted Funds from Operations ("AFFO") grew 10.7% to $140.7 million versus $127.1 in prior year
• 99.5% leased property portfolio with 8.8 years weighted average lease term remaining at year-end
• Acquired 12 properties for $98.8 million
• Raised $130.4 million net proceeds through issuance of 5.41 million shares, of 7.25% Series A Cumulative Redeemable Preferred Stock
• Executed a new commercial mortgage-backed facility, yielding gross proceeds of $187 million, carrying a fixed interest rate of 4.37% and a 10-year maturity, encumbering 12 U.S.-based assets
• Closed a new five-year credit facility comprised of a $500.0 million Senior Unsecured Multicurrency Revolving Credit Facility and a €194.6 million Senior Unsecured Term Loan
• Completed a 1-for-3 reverse stock split of the Company's common stock

For the three months ended December 31, 2017, GNL reported $66.6 million in total revenue and net income of $6.0 million, or $0.09 per common share, compared with $52.8 million in total revenue and net income of $15.9 million, or $0.27 per common share, during the comparable year-ago quarter. Adjusted Funds from Operations was $35.2 million in the fourth quarter versus $29.3 million in the fourth quarter of 2016.

"GNL made significant progress in several key areas," commented chief executive officer James Nelson. "During the fourth quarter 2017, we were successful securing accretive acquisitions that resulted in revenue growth of 26% over the fourth quarter 2016. On a sequential basis, we increased our quarterly funds from operations and adjusted funds from operations as compared to the third quarter 2017.

"We're also proud that, in 2017, Global Net Lease demonstrated a clear ability to both access the capital markets on attractive terms through our $130 million in aggregate preferred stock offerings and execute on our plans to transform the composition of the Company's portfolio by adding over $98 million of net new assets. We also continued our disciplined hedging strategy of layering hedges against the British Pound and the Euro over upcoming quarters to manage our exposure to both currencies. These actions, coupled with our ability to close new loans and credit facilities, enhanced our liquidity and capital structure. We exited the year better positioned to build upon these efforts as we entered 2018."

Mr. Nelson concluded, "Looking forward, we project that, with new leadership, a stronger balance sheet and a great start to the year with pending and closed acquisitions of nearly $300 million we have further scaled and diversified our portfolio in an accretive manner. Our focus will remain on increasing our industrial and distribution exposure in the U.S. while maintaining our strong presence in Europe as we build stronger cash flows in order to drive long-term value for our shareholders."