KeyBanc Upgrades Global Net Lease (GNL) to Overweight

KeyBanc analyst Upal Rana upgraded Global Net Lease (NYSE: GNL) from Sector Weight to Overweight with a price target of $9.00.

The analyst comments: "Since GNL’s merger with RTL in September 2023, the Company has exceeded expectations on its internalization and capital recycling strategy. From the start of 1Q24 through this year, GNL has sold $3B of non-core assets, including its $1.8B multi-tenant portfolio sale announced earlier this year. As a result, the Company has materially improved its underlying portfolio metrics, including increasing its leased percentage to 98% (96% in 4Q23), improving NOI margins to 90% (82% pre-multi-tenant transaction), and increasing rent escalators to 88% of SLR (78% in 4Q23). We recognize additional progress is needed as the Company’s Office exposure (27% of SLR) is relatively high compared to peers; however, we do not anticipate this segment of the portfolio to negatively impact earnings; given management's desire to reduce office exposure over time, we suspect a portfolio sale could be an option to the extent an opportunity surfaces. Overall, GNL’s portfolio now classifies it as a pure-play single-tenant Net Lease REIT, aligning more closely with its Net Lease peers."

For an analyst ratings summary and ratings history on Global Net Lease click here. For more ratings news on Global Net Lease click here.

Shares of Global Net Lease closed at $7.48 yesterday.

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