Modiv Inc

Global Net Lease closed its acquisition of Modiv Industrial on August 12, adding a $535 million portfolio of primarily industrial properties. Management priced the deal at a 7.6% cash cap rate and an 8.7% GAAP cap rate, structuring it to be immediately 4% accretive to Adjusted Funds From Operations per share without increasing overall balance sheet leverage. The all-stock transaction issued 1.975 GNL shares for each Modiv share and pushes industrial exposure to roughly 50% of total straight-line rent, with the acquired properties carrying a weighted average remaining lease term of 15.0 years versus GNL's standalone 5.7-year average as of June 30. Investment-grade and implied investment-grade tenants rose to 63% of annualized straight-line rent in the second quarter of 2026 from 60% a year prior. GNL also reduced net debt by $629.8 million from the second quarter of 2025, bringing Net Debt to Adjusted EBITDA down to 6.6x from 7.2x, while second-quarter 2026 revenue fell to $112.5 million from $124.9 million and AFFO per share softened to $0.22 from $0.24. Management raised full-year 2026 AFFO per share guidance to a range of $0.82 to $0.85, reflecting only about one and a half quarters of Modiv contribution.

Modiv Industrial stockholders approved the proposed merger with GNL Motion Merger Sub at a special meeting. The merger proposal, along with a non-binding advisory vote on executive compensation and an adjournment proposal, all received preliminary approval. The merger required approval by a majority of outstanding common shares, and the adjournment proposal was not needed because the merger itself passed. Final vote totals will be filed in the meeting minutes and disclosed in a Form 8-K submitted to the SEC.

Global Net Lease has sold $74 million of assets since the first quarter of 2026, including $66 million of occupied properties at a 7.2% cash cap rate, with office assets accounting for $61 million or 93% of occupied sales. The company also sold $8 million of vacant assets, eliminating negative net operating income drag and improving portfolio occupancy. Year-to-date, GNL has closed approximately $145 million of dispositions at a 7.5% cash cap rate on occupied assets. The sold occupied office assets include a building leased to the U.S. General Services Administration for $13 million and a building leased to GE Aviation for $48 million, both following lease extensions. GNL also has a Netherlands office asset under contract for sale for approximately $18 million upon lease expiration in December 2026, and is under contract to acquire a $14 million industrial property at an 8.2% cash cap rate. The pending $535 million acquisition of Modiv Industrial remains on track for a third quarter 2026 closing, expected to be immediately 4% accretive to AFFO per share and leverage neutral.