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Date

Thursday, May 7, 2026 at 11:00 a.m. ET

Call participants

  • Chief Executive Officer — Michael Weil
  • Chief Financial Officer — Chris Masterson

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Takeaways

  • Motive Industrial acquisition -- Announced all-stock, leverage-neutral deal with a fixed 1.975 exchange ratio, expected to deliver 4% accretion to AFFO per share and approximately $6 million in corporate G&A savings, with closing targeted for the third quarter.
  • Pro forma portfolio impact -- On expected closing, industrial exposure rises from 47% to 50%, office concentration decreases from 26% to 24%, and weighted average lease term extends from 5.9 to 6.7 years, supported by Motive's 15-year average lease duration and 2.4% annual rent escalators.
  • Quarterly revenue -- Reported $109.3 million, with a net loss attributable to common stockholders of $16 million.
  • AFFO -- Generated $43.9 million AFFO, or $0.21 per share, for the quarter.
  • Share repurchases -- Cumulative 19.7 million shares repurchased since program inception at an average price of $8.05, totaling $158.2 million, with 4.2 million shares bought in 2026 at $9.07 average, and the current share price has appreciated approximately 18% since those purchases were made.
  • Portfolio occupancy -- Occupancy rose to 97%, from 95% in 2025, with office occupancy rising to 99% from 95%, attributed to the sale of a $45 million vacant property that eliminated $1 million in negative NOI drag.
  • Portfolio metrics -- Ended the quarter with 809 properties totaling 40 million square feet, featuring 64% investment grade or implied investment grade tenants, up from 60% in 2025, and a 1.5% average annual contractual rent increase, excluding 20.1% of portfolio leases linked to CPI.
  • Leasing activity -- Executed leases on over 141,000 square feet, achieving renewal spreads of 5.1% above expiring rents; highlights include Dollar General, Tractor Supply, and a FedEx facility renewal with a 9% spread.
  • Debt and capital structure -- Total debt at $2.6 billion (comprised of $1 billion senior notes, $290 million revolver, $1.3 billion mortgage debt), with 99% fixed or swapped to fixed rates; average interest rate at 4.1% and interest coverage ratio at 3.0x.
  • Net debt to adjusted EBITDA -- Ended quarter at 7.2x, up from 6.7x at year-end 2025, attributed to disposition timing, with guidance reaffirmed at 6.5x to 6.9x.
  • Liquidity position -- Closed quarter with $911 million in liquidity and $1.5 billion available on the revolving credit facility.
  • G&A expense and capital expenditures -- G&A reduced 25% year over year to $49 million (from $65 million), capital expenditures declined to $1.6 million (from $9.8 million in 2025).
  • Full-year guidance -- AFFO per share guidance reaffirmed at $0.80 to $0.84 and targeted net debt to adjusted EBITDA range of 6.5x to 6.9x, not including Motive's benefits.
  • Advanced technology use -- Management reported leveraging artificial intelligence to analyze tenant foot traffic and performance, informing renewal negotiations and underwriting decisions.
  • Tenant concentration -- No tenant exceeds 6% of total straight-line rent; top 10 tenants contribute 29% combined, with 80% of top 10 being investment grade.
  • Share count -- Approximately 212 million common shares outstanding; 214 million weighted average shares for the quarter.
  • Lease rollover -- 4.4% of leases roll in 2026, with management stating no material move-outs are expected during the year.
  • Disposition and acquisition pipeline -- Executed a vacant office sale (West Coast) at near original purchase price, eliminated $1 million negative NOI, and under contract for $13 million GSA-leased office sale and $14 million acquisition of a single-tenant industrial facility at an 8.2% cap rate.

Summary

Global Net Lease (GNL +1.00%) announced the all-stock acquisition of Motive Industrial, which is expected to immediately accrete AFFO per share, improve portfolio diversification, and extend lease durations while maintaining leverage neutrality. Management targeted continued capital recycling out of office exposure into higher-quality industrial and retail assets, with current pipeline activity supporting these objectives. During the quarter, substantial operational efficiencies were realized through reductions in both annualized G&A expense and capital expenditures, with opportunistic share repurchases executed at a material discount to current market price.

  • Management reaffirmed full-year AFFO per share and net debt to adjusted EBITDA guidance, stating that Motive's projected benefit will be incorporated after transaction closing.
  • Leasing performance included renewal spreads above expiring rents and high occupancy, while AI-driven analytics began supporting underwriting and negotiations.
  • Tenant risk remained highly diversified, and no exposure to a single tenant exceeded 6% of portfolio rent, further supporting income stability.
  • CFO Chris Masterson reported capital structure improvements and increased available liquidity, positioning the company for selective future acquisitions or further share repurchases.
  • CEO Michael Weil directly referenced future intentions to monetize select Motive non-industrial assets rapidly after closing.

Industry glossary

  • AFFO: Adjusted Funds from Operations, reflecting core cash flow by excluding certain non-cash and recurring capital items.
  • WALT: Weighted Average Lease Term, representing the average remaining term across leases, weighted by income or area.
  • Cap rate: Capitalization Rate, calculated as net operating income divided by property value or purchase price, indicating investment yield.
  • G&A expense: General & Administrative Expense, covering ongoing corporate operating costs excluding interest, depreciation, and property-level expenses.

Full Conference Call Transcript

Michael Weil: Thanks, Jordyn. Good morning, and thank you all for joining us today. Before we review our first quarter 2026 results, I would like to discuss our planned strategic acquisition of Motive Industrial, which we announced earlier this week. This transaction is a direct reflection of the strategy we outlined on our last earnings call and the tangible progress we have already made towards implementing it. Following a transformational year for Global Net Lease, Inc. in 2025, when we took deliberate actions to significantly reduce leverage, strengthen our credit profile, and improve the overall quality of our portfolio, we are now positioned to focus on the disciplined recycling of capital into high-quality industrial and retail assets.

This includes pursuing selective and opportunistic asset sales, particularly those that reduce our office exposure, while redeploying proceeds accretively into single-tenant industrial and retail investments. The Motive transaction would do just that, as we believe the closing of the transaction will advance the durability and quality of our earnings profile by adding a high-quality portfolio of industrial net lease assets across the United States, supported by long-duration leases and creditworthy tenants that align well with our investment criteria. The transaction is expected to be immediately accretive with approximately 4% accretion to AFFO per share, including meaningful cost synergies through the elimination of duplicative G&A.

Importantly, the transaction is structured as an all-stock acquisition with a fixed exchange ratio of 1.975 to lock in the 4% accretion, making it leverage neutral and requiring no new external capital. We believe this structure will preserve the balance sheet strength we have established while allowing us to maintain meaningful flexibility to pursue future strategic growth opportunities. Motive’s long-duration leases have a weighted average lease term of 15 years, include 2.4% annual rent escalations, and are supported by a well-recognized tenant base of leading global brands, with approximately 45% of annual base rent derived from investment grade or implied investment grade tenants.

On a pro forma basis, the acquisition is expected to extend our weighted average lease term from 5.9 to 6.7 years, increase our industrial exposure from 47% to 50%, and reduce our office concentration from 26% to 24%, which will collectively strengthen our portfolio mix and expand our geographic reach across key U.S. industrial markets and enhance the overall stability of our combined platform. We are very excited about this transaction, which we expect to close in the third quarter of this year. In addition to the Motive transaction, we are actively engaged in other transaction activity consistent with our corporate strategy.

Reflecting the mission-critical nature of our office portfolio, we are under contract to sell a 33 thousand square-foot office building leased to the General Services Administration for $13 million at a 7.2% cash cap rate, with closing expected in 2026. Beyond this transaction, we currently have additional office properties in our portfolio that we believe may present a similar disposition opportunity going forward as we continue to focus on lowering our office exposure.

At the same time, we are under contract to acquire a 100 thousand square-foot single-tenant industrial asset occupied by a Fortune 50 investment grade tenant for $14 million at an 8.2% cash cap rate, which would further demonstrate our ability to prudently execute our accretive recycling strategy into higher-quality assets that we believe will generate more compelling risk-adjusted returns. The asset features a 2031 lease maturity, and we believe our longstanding relationship with the tenant will be advantageous as we are already in simultaneous discussions regarding an early long-term lease extension. We are actively negotiating the sale of additional office assets and look forward to providing updates as transactions advance.

Our pipeline of redeployment opportunities continues to grow, and we believe we are well positioned to execute on a leverage-neutral basis in a way that drives earnings growth while preserving the balance sheet quality we have established. Our acquisition approach remains disciplined and highly selective, focused on high-quality, income-generating assets that align with our long-term strategy. In addition to our capital recycling strategy, we continue to evaluate the most effective uses of our disposition proceeds, including opportunistic share repurchases. Since the beginning of our share repurchase program through 05/01/2026, we have repurchased 19.7 million shares at a weighted average price of $8.05, totaling $158.2 million.

We have been deliberate and opportunistic in how we have executed this program, and we remain disciplined in balancing these repurchases with our continued focus on leverage reduction and the redeployment of capital into higher-quality assets. Turning to our portfolio, at the end of 2026 Q1, we owned 809 properties totaling 40 million rentable square feet. Our portfolio was 97% occupied, an increase from 95% in 2025, with a weighted average remaining lease term of 5.9 years. Specifically, our office occupancy increased to 99% from 95% in 2025, primarily driven by the disposition of a $45 million vacant office property, which also eliminates over $1 million of annualized negative NOI drag.

Our office portfolio continues to perform well, supported by 100% rent collection and the highest proportion of investment grade tenants within our portfolio. Global Net Lease, Inc.’s portfolio features a stable tenant base and high quality of earnings, with an industry-leading 64% of tenants carrying an investment grade or implied investment grade rating, up from 60% in 2025. Our average annual contractual rental increase is 1.5%, excluding the impact of 20.1% of the portfolio with CPI-linked leases that have historically experienced significantly higher rental increases. On the leasing front, we delivered strong results across the portfolio during the first quarter, reflecting the quality of our asset management capabilities and tenant relationships.

We executed leases on more than 141 thousand square feet and achieved renewal spreads of approximately 5.1% above expiring rents. Notable activity included several renewals with nationally recognized retail tenants such as Dollar General and Tractor Supply, as well as the renewal of a 58 thousand square-foot FedEx distribution facility at an approximate 9% renewal spread. We continue to engage with tenants well in advance of lease expirations to drive occupancy retention and rental growth, while maintaining a long-term focus on portfolio stability. As we continue advancing our approach to asset management, we have meaningfully enhanced our data and technology capabilities, improving how we engage with tenants and evaluate opportunities and ultimately the outcomes we deliver across the portfolio.

We have been leveraging artificial intelligence to enhance our decision making on both the leasing and transaction front. Specifically, we are now able to rapidly analyze foot traffic patterns and performance analytics for our tenants, intelligence that directly informs our renewal negotiations and strengthens our underwriting when evaluating prospective transactions. This data-driven approach allows us to engage tenants from a more informed position, and we believe it is an increasingly meaningful contributor to our ability to drive favorable lease economics across the portfolio and secure advantageous terms on transactions. Perhaps most importantly, we believe it will also give us the ability to seamlessly absorb the Motive portfolio and its approximately $535 million of new assets without any increase in headcount.

Our continued efforts to limit exposure to high-risk geographies, asset types, tenants, and industries reflect our intentional diversification strategy and disciplined credit underwriting. No single tenant accounts for more than 6% of total straight-line rent, and our top 10 tenants collectively contribute only 29% of total straight-line rent, with 80% being investment grade. We carefully monitor all tenants in our portfolio and their business operations on a regular basis. I encourage everyone to review the details of each segment of our portfolio in our 2026 investor presentation on our website. I will now 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. For 2026 Q1, we recorded revenue of $109.3 million and a net loss attributable to common stockholders of $16 million. AFFO was $43.9 million, or $0.21 per share. Following the successful repositioning of our portfolio over the past several quarters, including the $1.8 billion multi-tenant retail portfolio sale, we have reduced annualized G&A expense by 25% year-over-year to $49 million from $65 million in 2025, driven by operational efficiencies. Additionally, capital expenditures declined to $1.6 million from $9.8 million in 2025, supporting improved cash flow through a more streamlined portfolio.

Looking at our balance sheet, the gross outstanding debt balance was $2.6 billion at the end of 2026 Q1, a reduction of $1.3 billion from the end of 2025. Our debt is comprised of $1 billion of senior notes, $290 million on the multicurrency revolving credit facility, and $1.3 billion of outstanding gross mortgage debt. As of the end of 2026 Q1, 99% of our debt is tied to fixed rates or debt that is swapped to fixed rates. Our weighted average interest rate stood at 4.1%, down from 4.2% in 2025, and our interest coverage ratio was 3.0x.

At the end of 2026 Q1, our net debt to Adjusted EBITDA ratio was 7.2x, based on net debt of $2.4 billion, compared to 6.7x at the end of 2025. While the ratio this quarter was higher than the end of 2025 due to timing of disposition, we are confident that we will remain within our stated net debt to Adjusted EBITDA 2026 guidance range of 6.5x to 6.9x. As of 03/31/2026, we had liquidity of approximately $911 million and $1.5 billion of capacity on our revolving credit facility, compared to $499 million and $1.4 billion, respectively, as of the end of 2025.

Additionally, we had approximately 212 million shares of common stock outstanding, and approximately 214 million shares outstanding on a weighted average basis for 2026 Q1. Since launching our share repurchase program in 2025 and through 05/01/2026, we have repurchased 19.7 million shares for a total of $158.2 million. This includes approximately 4.2 million shares repurchased in 2026 for $38.4 million at a weighted average price of $9.07. Since inception, total repurchases under this program have been executed at a weighted average price of $8.05, a meaningful discount to the current share price, which has appreciated approximately 18% since those purchases were made.

We believe this program has been a highly accretive use of capital and has generated tangible value for our shareholders. Turning to our outlook for 2026, we are confident in our performance and reaffirm our full-year AFFO per share guidance of $0.80 to $0.84. We also reaffirm our stated net debt to Adjusted EBITDA range of 6.5x to 6.9x. This guidance excludes the anticipated benefit from the Motive transaction, which we plan to address and update upon closing, although we believe it is worth emphasizing that the acquisition is structured to be leverage neutral within our 2026 net debt to Adjusted EBITDA guidance range of 6.5x to 6.9x.

I will now turn the call back to Mike for some closing remarks.

Michael Weil: Thanks, Chris. As we begin this next phase of Global Net Lease, Inc.’s evolution, we do so from a position of strength, focused on strategically reducing our office exposure while redeploying capital into higher-quality, higher-yielding assets. The foundation we built in 2025—a stronger balance sheet, an improved credit profile, and a more focused portfolio—gives us flexibility and confidence to execute this strategy on our own terms, remaining patient and selective as we identify the right opportunities. We will not rush to deploy capital for the sake of it, pursuing only those opportunities that we believe genuinely enhance the quality and earnings of our portfolio.

We expect this capital recycling activity to be a meaningful contributor to earnings growth over the course of 2026 and beyond. The Motive transaction is a tangible demonstration of that approach. We identified a high-quality portfolio of industrial net lease assets that we believe will enhance the earnings power and long-term durability of our platform, and we structured a transaction that is expected to be immediately accretive, leverage neutral, and requires no external capital. We look forward to building on the strong foundation Motive has established as part of the combined Global Net Lease, Inc. platform.

Before taking your questions, I would like to note that, subsequent to the first quarter, two members of our board, Sue Parati and Governor Rendell, announced their intention to retire following the 2026 annual meeting of stockholders. We thank Sue and the Governor for their years of dedicated service and meaningful contributions to Global Net Lease, Inc., and remain confident that our board's composition is well calibrated to provide effective oversight and support efficient decision making. We will now open the call for questions. Operator, please open the line for questions.

Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press 2 if you would like to remove your question from the queue. A moment please while we poll for your questions. Our first question comes from the line of Mitch Germain with Citizens. Please proceed with your question.

Mitch Germain: Good morning. Thanks for taking my question, and congrats on the Motive deal. Starting with Motive, Mike, 40 assets, I think about 20% or so of them reside outside of the industrial sector, so I am curious, are there any potential candidates for sale across that portfolio?

Michael Weil: First of all, great question. Thank you. Yes, there are. Our primary focus is on retaining the industrial assets. Motive does have a few very high-quality assets that are outside of what we would consider industrial, and we will, at the right time and working with Motive, look to dispose of those assets very quickly after closing. It will not be many; one of them is on the larger side. It will have some meaningful impact, and I think that it will also have overall value as we evaluate the acquisition as well.

Mitch Germain: Got you. So lower cap rate versus what you are buying it at. Okay. And then can you talk a little bit about dispositions that either were completed or planned to be completed? It seems like activity is somewhat across each sector. We saw a change in number of assets across industrial, retail, and office. So maybe just talk about what some of the characteristics were. I think you mentioned a vacant office, a GSA-leased office. Maybe some of the characteristics of some of the other properties that were sold would be helpful.

Michael Weil: As we talked about last quarter, we were going to be switching to more of a strategic disposition strategy. Where we had opportunity to dispose of some assets that maybe were not just in the office portfolio, we did so at very aggressive cap rates, and that is an ongoing part of our strategy. We are intentionally looking at growth, and adding the high-quality portfolio of Motive is a big statement of that. But we will continue to execute opportunistically. As an 800-plus property portfolio, it is not uncommon for people to call us when they see an asset that we own that they have an interest in.

We always take the call, we always negotiate the deal, and then we decide if we have an opportunity to redeploy those proceeds in a more accretive way. But we are very thoughtful in not wanting to sell what is significant and core to the overall portfolio. I can give you an example. We sold a bank branch in the quarter at a 6.2% cap rate. The buyer wanted to own it, and at that cap rate, we were a happy seller. Those are the type of opportunistic dispositions, in addition to what we are going to continue to do evaluating the opportunities to reduce office.

If I can just add one thing to that, because we have been talking for a good part of 2025 about an asset that we had under contract to sell. It was an office property on the West Coast. We completed the sale in the quarter, and we sold it vacant, but we sold it for just about what we paid for it when we initially owned the property, and in addition to that, it does remove about $1 million of NOI carry. So we are really looking at everything in a very deep analytical way. And not only do we value getting the proceeds from the disposition, but removing that drag to NOI, of course, is extremely valuable.

Mitch Germain: Gotcha. Last one for me. When you are considering some of these office dispositions in particular, about half of your portfolio resides outside the U.S. I am curious what sort of demand you are seeing across Europe for office. Obviously, we are seeing improving fundamentals here in the U.S. Lenders are a bit more prone to lend in that sector today than they were previously. Are you seeing similar trends emerging across Europe, and does that give you an opportunity to maybe start culling some of those assets as well?

Michael Weil: As you probably know, we are a little more than 25% Europe and UK, and about half of the NOI comes from office. What we have been seeing in the office market overseas is a lot of redevelopment into mixed-use residential as well if a tenant is not renewing; there is a lot of redevelopment going on. The market is very strong. We are very active, and I think as we move through 2026, you will hear more updates from us on certain assets that will be positive to the portfolio.

Mitch Germain: Thank you.

Michael Weil: Thanks, Mitch.

Operator: Our next question comes from the line of Upal Dhananjay Rana with KeyBanc Capital Markets.

Upal Dhananjay Rana: Good morning.

Michael Weil: Good morning.

Upal Dhananjay Rana: Mike, on the Motive transaction, maybe you could walk us through the cap rate there relative to the blended cost of capital that you will be using and then the resulting investment spreads, and also, you mentioned selling a few of those assets already once you are closed. But any other opportunities within that portfolio that could potentially drive the yield higher?

Michael Weil: I am not able at this time to talk cap rate specifics. That will come out as we get further along. We are working really closely with Motive, who has just been a great partner in this transaction. They will be putting out their proxy, and it will have all those details in it, as you will understand. What I would say is that there are a lot of opportunities, some of which were already in the works on the Motive side that will transfer to us to continue—both from an origination pipeline standpoint, a lease renewal standpoint, and also some work that they were doing on dispositions.

I think that they were operating their portfolio at a very high level, maximizing the performance of their portfolio, etc. So it is going to be very exciting for us to integrate that into our portfolio and continue the work that they have been doing. We have talked about the roughly $6 million of G&A savings. I think that, when we close on that, we will probably be able to squeeze more out of that. I do not know the exact number yet; we are continuing to evaluate that.

But there is just a lot of upside, as we have disclosed in our press release, and the portfolio itself is performing at a very stable level, so there are not a lot of things that we would have to do to achieve these stated goals. I am looking forward to closing as early in the year as we can. We are targeting third quarter. If we can do it early in the third quarter, the earlier, the better, so that we can start to see the benefits to the portfolio. Then we will disclose our plans for the few assets that we are evaluating for disposition.

I also want to say, in case we have any Motive investors on the line listening to the call today, we are very excited to have them join the Global Net Lease, Inc. investor community. They have been great shareholders for Motive, and we look forward to welcoming them into the Global Net Lease, Inc. family, and it is just a great opportunity for all of us.

Upal Dhananjay Rana: Great. Thank you for that. And then maybe could you talk about what you are seeing in the market for future acquisitions? You talked about it a bit in your prepared remarks already, but maybe you could walk us through your strategy on selecting which properties and portfolios to acquire and how you are thinking about your leverage and industry exposure when you make that consideration?

Michael Weil: Thank you. First of all, I think us announcing roughly a $550 million acquisition in the first quarter probably was not expected by the market, and it really gets us excited about what we can do in 2026. It was a very opportunistic situation, and it really penciled out well, and it is something that is going to pay dividends for a long time in the Global Net Lease, Inc. portfolio. I cannot tell you that there will be other large portfolio acquisitions in 2026. Obviously, we take things as they come, and we look to how we can best use our capital and how we can grow earnings, etc.

What we are looking at as we are developing a review of the market and a potential pipeline is we are really focusing on the industrial side of the business. We are also seeing some retail-type acquisition potential, not as much as we have seen in the past. I think the markets are a little bit in flux, and we are looking at everything not from just dollars spent acquiring properties, but meaningful opportunity for accretion in the portfolio from an earnings standpoint. As far as your question about debt, we continue to think that is one of the most important things that we will continue to work on. Chris reaffirmed our 2026 guidance of 6.5x to 6.9x.

We are very excited that the Motive transaction is leverage neutral in how we were able to structure it, so the additional opportunity to grow the EBITDA side of the formula is one of the things that I am very excited about. Nothing has changed from what we have communicated to the market, and we will continue to drive that important metric further down.

Upal Dhananjay Rana: Okay. Great. Thank you so much.

Michael Weil: Thank you.

Operator: Thank you. Our next question comes from the line of Jay Kornridge with Cantor Fitzgerald. Please proceed with your question.

Jay Kornridge: Thanks so much. Thinking bigger picture about the Motive merger, I wonder what that could signal for your strategy going forward. You recently completed the robust disposition program, and I am wondering if this merger signals maybe a return to growth for the company beyond just recycling out of office assets.

Michael Weil: My short answer is yes, it does. I said on our last earnings call that was an important goal of ours. The disposition program was extremely successful. It achieved a lot of our important goals, primarily lowering net debt to EBITDA in a meaningful way and in a relatively quick way. The fact that we have the opportunity with the Motive portfolio to move forward in this leverage neutral way but still have a positive increase to earnings, I think, does give you some insight into how we are thinking about things.

Again, it is not just about dollars out the door and how much you can buy in a year; it is about what is the impact of those acquisitions long term on the portfolio and on earnings. We are very excited about the fact that the WALT of the Motive portfolio at 15 years extends the WALT of Global Net Lease, Inc. by almost one full year, taking us to just under seven years. The 2.5% annual escalator that their portfolio brings to us is also meaningful, and as that 15-year WALT continues and we see the NOI in that portfolio growing at that 2.5%, it is very meaningful.

One other thing that we are really focused on is the G&A reduction and how we can better operate this larger portfolio. We decreased G&A expense by 25% year-over-year. We continue to focus on that. That 25% represents a $16 million annual savings, and that is very important. You want to grow earnings, and you want to reduce expenses. That is the formula for ultimate success, and we look at both sides of that equation.

Jay Kornridge: Thanks, appreciate all that commentary. You highlighted an office asset sale and capital recycling into an industrial asset at a 100-basis-point cap rate premium. Do you feel this type of accretive capital redeployment out of office is repeatable as you lower office exposure, and do you have any timeline goals for where you want to get office exposure overall down to?

Michael Weil: I do not know that we can consistently every time hit that 100-basis-point type spread. That is certainly the goal, and we feel that we have very high-quality office assets, net lease. About 80% of our portfolio is investment grade, as you know. As we look to lower our exposure to office, we certainly think that we should be able to sell them at a fair value. We talked this quarter about the GSA asset at a 7.2% cap rate. I think that, as we look at the rest of the portfolio opportunity, we see it in that range. I have always talked about our office being worth in a 7% to 8% cap rate range in our minds.

We never wanted to just package it all up and sell at any price because it is performing very well. As we look to reduce our exposure, it is important to us that we find fair value for this portfolio. Because it continues to perform, we will take a disciplined and strategic approach to how we reduce our exposure. We have not said anything specific about target allocation. As we finished this quarter, we are about 24%. We will continue to drive it down, but what we are most excited about is that with the Motive acquisition we are going to be 75% retail and industrial, which is important. Over 50% of that is on the industrial side.

We will be a predominantly net lease industrial portfolio, with long-duration leases and really high-quality tenants.

Jay Kornridge: Great. Thanks for that. That is it for me.

Michael Weil: Thank you, Jay.

Operator: Thank you. May be necessary to pick up your handset before pressing the star key. Our next question comes from the line of Craig Gerald Kucera with Lucid Capital Markets. Please proceed with your question.

Craig Gerald Kucera: Good morning. A lot of the Motive portfolio tenants are owned by PE firms with manufacturing backgrounds. Does the acquisition potentially open up any new relationships for you for future growth, or are you already pretty familiar with most of them?

Michael Weil: It always enhances relationships—some of which we already have, some of which we are happy to get to know and develop further. It is one of the things that Aaron Halfacre and I continue to talk about—making those introductions—and there may be ongoing benefit from those relationships for sure.

Craig Gerald Kucera: Got it. Changing gears, given the stock price, it seems that selling assets and buying back stock still makes sense. I think you are about halfway through that $300 million authorization. Should we consider that as a consistent portion of your business model for the remainder of the year as far as acquiring, call it, $30 million to $40 million a quarter?

Michael Weil: You are right that we are about halfway through that. We have bought back about $158 million since we announced. The average buyback price was $8.05. It is another tool in the toolbox that we will continue to evaluate. As we look at stock buyback, reducing the net debt to EBITDA, and acquisitions, those are all three very important things to us and tools that I think we have shown we can use effectively. We will continue to evaluate them.

We have not given any forward statements on how we will, and at what level we will, use the buyback, but it is something that we are very happy to have in place and something that we do find good use for.

Craig Gerald Kucera: Got it. Looking to your lease expirations during the rest of the year, are there any known large move-outs during the remainder of 2026?

Michael Weil: Craig, we have—if I am remembering correctly, and Mori will correct me if I am wrong; he is in my office with me—about 6% lease rollover in 2026. 4.4. I was high. 4.4% in 2026. So we do not have any material rollovers in 2026. We continue to engage with tenants. We have not given any specifics on move-outs. We continue to think that there are opportunities to either renew the existing tenants or re-tenant, and if we do not feel that is an opportunity, we will be marketing an asset well in advance of expiration. We feel that we have a very tight handle on the portfolio. We had occupancy overall increase in the quarter.

We continue to see that as a positive trend. A net lease company is typically in that 98% to 100% occupancy realm, and I am happy to say that is where we are now, and we expect to continue to stay there. We always look to push that up as high as we can, but the portfolio continues to be well tenanted, and the tenants operate out of these properties no matter what the sector. So we feel very confident about the remainder of 2026.

Craig Gerald Kucera: Okay. That is helpful. Thank you.

Michael Weil: Thanks.

Operator: Thank you. We have reached the end of our question-and-answer session. I would like to turn the call back over to management for any closing remarks.

Michael Weil: Thank you all for joining us today. I think you heard a lot of exciting news about Global Net Lease, Inc. We thought we were well positioned for 2026 before the announcement of Motive. We are even more excited to integrate that high-quality portfolio into ours and continue with this strategy for growth. We look forward to talking to any of you after today's call if you have questions, or we will be seeing you at conferences. Thanks for your time, and we will talk soon.

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.