Global Net Lease CEO Says Quality of Tenants is Most Important During Volatile Times, Global Net Leases Diverse Portfolio Playing Large Role in Successful Rent Collection. However, scoring and qualitative assessments can be updated more frequently due to events assessment changes and corporate governance assessment changes, which are updated according to more frequent and different update cycles. GNL's price dropped by 27 percent and 36 percent over the period of past three and five years respectively. The company is forecast to post earnings per share of US$0.085 next year compared to a net loss per share of US$0.20 last year. Nareits REITworks is an educational conference where industry professionals will have the opportunity to learn about the latest ESG developments impacting the real estate sector. I am not receiving compensation for it (other than from Seeking Alpha). Quality Earnings: GNL is currently unprofitable. Which metric is best to use when looking at relative valuation for GNL? GNL ($14.96) is trading below our estimate of. I have no business relationship with any company whose stock is mentioned in this article. Global Net Lease has performed poorly since it was listed in June 2015. When assessing the outlook for REITs and commercial real estate in 2022 and beyond, it is helpful to distinguish between impermanent or cyclical effects and the longer-term structural changes that result from changes in behavior. GNL's retail tenants provide services which have shown to be e-commerce resistant. Long Term Liabilities: GNL's short term assets ($266.0M) do not cover its long term liabilities ($2.5B). Learn more, See historical performance and comparison. Please disable your ad-blocker and refresh. Weve recently updated our valuation analysis. GNL has only been paying a dividend for 7 years, and since then payments have fallen. Focus on office and industrial properties, strong tenant base, consistently high occupancy levels, and long lease terms ensure steady earnings for GNL. The company is engaged in the ownership, management, operating, lease, acquisition, investment, and sale of the portfolio assets. For investors requiring hands-on support, our in-house experts go through our tools and find the best investible stocks, complete with buy/sell strategies and alerts. GNL is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (69.5%). At the Total Pharma Tracker, we offer the following:-. All rights reserved. GNL's shares are constituents of quite a few highly rated exchange traded funds (ETFs), such as iShares Core S&P Small-Cap ETF (IJR), iShares S&P Small-Cap 600 Value ETF (IJS), Vanguard Tax-Managed Small Cap Fund Admiral Shares Inst (VTMSX), SPDR S&P 600 Small Cap Value ETF (SLYV), DFA Real Estate Securities (DFGEX), etc. is 10.95 percent. The remaining 5 percent is invested in retail properties. (84.9%), GNL's dividend payments are covered by cash flows. Further, low Price/Cash Flow (7.39), and Price/Rental Revenue (2.67) may mean there is a skepticism regarding the company's ability to continue the current revenue and earnings performance. Almost all its properties are occupied. These products and services are usually sold through license agreements or subscriptions. Global Net Lease, Inc. is a REIT focused on the acquisition, ownership, and management of a high-quality, mission critical, diversified portfolio of primarily industrial and office properties net-leased on a long-term basis to investment grade and creditworthy tenants located in the U.S. and Western Europe. How we use your information depends on the product and service that you use and your relationship with us. Banks and lenders can use our ESG Risk Ratings and data as a part of a broader analysis of their clients as well as for innovative product solutions such as sustainability linked loans. A high concentration in office and industrial real estate properties, strong tenant base, consistently high occupancy levels, and long lease terms will thus drive long-term value for GNL's shareholders. Unable to compare GNL's earnings growth over the past year to its 5-year average as it is currently unprofitable. So, I would buy or hold equity shares of Global Net lease with adequate hedging. However, investors have to be content with the yield, and forget about price growth. My suggestion will be to buy a October 21 (five month forward) put option at an exercise price of $12.5. Mr. James Larry Nelson, also known as Jim, has been an Independent Director at Chewy, Inc. since July 19, 2021. Cash Flow Coverage: At its current cash payout ratio (84.9%), GNL's dividend payments are covered by cash flows. Stable Share Price: GNL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week. A few probable reasons might be the skepticism in investing in small sized office and industrial focused REIT in uncertain economic scenarios, not retaining enough earnings for reinvesting it for future growth, and a declining FFO in between 2018 and 2020. 1-800-3-NAREIT However, in my opinion, the price performance is not truly reflecting the operational growth of this diversified REIT. Global Net Lease Inc's Management of ESG Material Risk is Average.
The company is engaged in the ownership, management, operating, lease, acquisition, investment, and sale of the portfolio assets. He has served as an Director at Xerox Corporation since 2021. Experienced Management: GNL's management team is considered experienced (4.7 years average tenure). GNL's retail portfolio includes specialty retail, malls, casual dining, etc. Copyright Nareit 2022.
Analyst Forecast: Target price is less than 20% higher than the current share price. Gear advertisements and other marketing efforts towards your interests. Nonetheless, it is easy to say that the Price/FFO is also quite low at 8.1. Global Net Lease has recorded a revenue growth of 11.3 percent and 12.4 percent over the period of three years and five years respectively.
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Is GNL undervalued compared to its fair value, analyst forecasts and its price relative to the market? Stable Dividend: GNL has been paying a dividend for less than 10 years and during this time payments have been volatile. Click here for more on how to use these ratings. Being a small-cap diversified REIT with a market capitalization of only $1.42 billion, it does cause concern over its long-term sustainability due to its limitation in raising external debts. Global Net Lease, Inc. intends to continue to pay dividends on its shares of common stock at an annualized rate of $1.60 per share or $0.40 per share on a quarterly basis. CEO James Nelson says REIT remains acquisitive but is taking a cautious approach.
Earnings Trend: GNL is unprofitable, and losses have increased over the past 5 years at a rate of 52.7% per year. Price-To-Sales vs Fair Ratio: GNL is good value based on its Price-To-Sales Ratio (3.9x) compared to the estimated Fair Price-To-Sales Ratio (8.8x). GNL is unprofitable, and losses have increased over the past 5 years at a rate of 52.7% per year. Below Fair Value: GNL ($14.96) is trading below our estimate of fair value ($44.83). Payable July 15; for shareholders of record July 11; ex-div July 8. However, the majority of this price loss occurred in the past 12 months, as it lost 24.2 percent of value during this period. I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Quarterly FFO declined from $0.54 to $0.29 during this period.
GNL's dividend (10.7%) is in the top 25% of dividend payers in the US market (4.31%), GNL has been paying a dividend for less than 10 years and during this time payments have been. Prior to that, the company used to pay monthly dividends, and that was quite strong and steady too. Management refers to how well a company is managing its relevant ESG issues. He serves as an Independent Dir Show more. Our Android app and website features a set of tools for DIY investors, including a work-in-progress software where you can enter any ticker and get extensive curated research material. Other financial metrics that can be useful for relative valuation. Usage as a credit rating or as a benchmark is not permitted. REITworks will be held Sept. 12-13 in La Quinta, California. GNL is trading below fair value by more than 20%. New York, NY 10019 How does GNL's PS Ratio compare to its peers? GNL has been paying regular quarterly dividends since the third quarter of 2019, and its. What is the Fair Price of GNL when looking at its future cash flows? Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We may use it to: To learn more about how we handle and protect your data, visit our privacy center. High Dividend: GNL's dividend (10.7%) is in the top 25% of dividend payers in the US market (4.31%). We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. Almost all its properties are occupied. Unless otherwise explicitly agreed in writing, usage for products and services, index creation, derivative work, portfolio or fund management, or any other usage are not permitted. In my opinion, Global Net Lease will suffer further price loss as indicated by its simple moving averages ((SMAs)). How has Global Net Lease performed over the past 5 years? Copyright 2022 Sustainalytics. Jim Nelson says REIT is carefully watching the markets and deploying capital selectively. High Growth Earnings: GNL is expected to become profitable in the next 3 years. in the past year, with total shares outstanding growing by 5.4%. At present, this company has a client base of more than 100 clients, with long-term lease agreements. The three big asset management firms namely BlackRock Inc, Vanguard Group Inc, and State Street Corporation own almost 40 percent of GNL. Growing Profit Margin: GNL is currently unprofitable. Upgrade Your Profile and unlock all your annual reports. Down from US$19.50, the current price target is an average from 6 analysts. He serves as an Independent Dir. For this estimate we use a Discounted Cash Flow model. Unless specified all financial data is based on a yearly period but updated quarterly. However, it has a very high pay-out of 90 percent. Cautious, low key, disciplined investing in biopharma stocks. The May/June issue of REIT magazine features a roundtable discussion with IR executives on key issues for 2022, a look at pension funds are deploying more capital to REITs, REIT support for LGBTQ+ employees, and much more. By way of exception, usage is permitted only to the rated company, limited to a single reference of its own information in annual reporting and sustainability website, mentioning Sustainalytics as a source. GNL's revenue (5.2% per year) is forecast to grow slower than 20% per year. Companies withratings are not formally covered by a Morningstar analyst, but are
You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. In the past three years, net income has recorded a positive growth. However, there has been a steady decline of FFO in between 2018 and 2020. The ESG Risk Ratings can help investors to identify, understand and manage ESG risks at the security and portfolio level with the aim of improving the long-term performance of their equity and fixed income securities. However, the payout ratio has been quite high, around 90 percent, which may suggest that the company is not very much keen on its expansion. Debt Coverage: GNL's debt is not well covered by operating cash flow (8.3%). The service offers end-to-end research on both investing and trading ideas everyday, and includes a 150-stock watchlist and two 40-stock model portfolios that are continuously tracked. GNL's office properties are net leased to single tenant occupants located at central business districts (CBD). See GNL Dividend Scorecard, Yield Chart, & Dividend Growth. than 75% of US stocks over the past 3 months. 30th Floor GNL's dividend (10.7%) is higher than the bottom 25% of dividend payers in the US market (1.61%). Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. Accordingly, GNL declared a dividend of $0.40 per share of common stock payable on July 15, 2022 to common stock holders of record at the close of business on July 11, 2022. Price-To-Sales vs Industry: GNL is good value based on its Price-To-Sales Ratio (3.9x) compared to the US REITs industry average (5.8x). Target price is less than 20% higher than the current share price. Provide specific products and services to you, such as portfolio management or data aggregation. I am not receiving compensation for it (other than from Seeking Alpha). High Growth Revenue: GNL's revenue (5.2% per year) is forecast to grow slower than 20% per year. Global Net Lease is generating good revenue and earnings, and is thus paying 10+ percent dividend. have bought more shares than they have sold in the past 3 months. Global Net Lease, Inc.'s employee growth, exchange listings and data sources. Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months. Institutional investors hold 73.5 percent shares of Global Net Lease.
Develop and improve features of our offerings. (102.5%), GNL's dividend payments are not well covered by earnings.
New target price is 27% above last closing price of US$14.13. Earnings vs Savings Rate: GNL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%). Unless specified all financial data is based on a yearly period but updated quarterly. To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research. Maintaining independence and editorial freedom is essential to our mission of empowering investor success. Report Locked.
Return vs Market: GNL underperformed the US Market which returned -17.2% over the past year. GNL is forecast to become profitable over the next 3 years, which is considered faster growth than the. GNLs price multiples also indicate an undervaluation. 200 days SMA (15.44) is placed 5 percent higher than 100 days SMA (14.67). Please read our Financial Services Guide before deciding whether to obtain financial services from us. Growing Dividend: GNL has only been paying a dividend for 7 years, and since then payments have fallen. Copyright 2022 Morningstar, Inc. All rights reserved. GNL's revenue (5.2% per year) is forecast to grow slower than the US market (7.7% per year). 650 Fifth Avenue I wrote this article myself, and it expresses my own opinions.
GNLs investors have to forget about price growth, and need to be happy only with the high yield, sustainability of which is again questionable in the long run. What is GNL's PS Ratio compared to its Fair PS Ratio? GNLs investors have to forget about price growth, and need to be happy only with the high yield, sustainability of which is again questionable in the long run. Stock is down 30% over the past year. But an epic gamble by its founder Lim Oon Kuin left the company badly exposed, eventually leading to its collapse. Thanks for reading. What is Global Net Lease current dividend yield, its reliability and sustainability? We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. Exposure refers to the extent to which a company is exposed to different material ESG issues. This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors. Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.4%. Nareitis the worldwide representative voice for REITs and publicly traded real estate companies with an interest in U.S. real estate and capital markets. Nareit's members are REITs and other businesses throughout the world that own, operate, and finance income-producing real estate, as well as those firms and individuals who advise, study, and service those businesses. Global Net Lease Inc is a real estate investment trust that manages a globally diversified portfolio of commercial real estate properties. This site is protected by reCAPTCHA and the Google I have no business relationship with any company whose stock is mentioned in this article. GNL is expensive based on its Price-To-Sales Ratio (3.9x) compared to the peer average (3.4x). Get them exclusively at The Total Pharma Tracker. And the long-term sustainability of this high yield is also questionable. I am of the view that Global Net Lease is moving in the right direction. Sign up now for our free trial, request access to our tools, and find out, at no cost to you, what we can do for you.
The ESG Risk Ratings measure a company's exposure to industry-specific material ESG risks and how well a company is managing those risks. The portfolio assets include office, industrial and distribution, retail, and other, with office buildings representing more than half of the properties. statistically matched to analyst-rated companies, allowing our models to calculate a quantitative moat, Touch device users, explore by touch or with swipe gestures. These insights can be used to identify areas of ESG improvement to help inform future management decisions that align with your organization's sustainability goals. However, that price loss might be minor. Morningstar Quantitative ratings for equities (denoted on this page by) are generated using an algorithm that compares companies that are not under analyst coverage to GNL generated sufficient earnings to pay consistent monthly or quarterly dividends with an average year-end yield of more than 10.5 percent over the past five years. Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. This is managed by Dr Asok Dutta, BVScAH and Dr Udaya Kumar Maiya, MD Oncologist. He has served as an Director at Xerox Corporation since 2021. Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. GNL has been paying regular quarterly dividends since the third quarter of 2019, and its current yield is 10.95 percent. The bid-ask range of $12.5 October 21 put option is $0.1 to $0.7.
Our exposure score takes into consideration subindustry and company-specific factors such as its business model. Earnings Coverage: With its high payout ratio (102.5%), GNL's dividend payments are not well covered by earnings. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. REITs invest in the majority of real estate property types, including offices, apartment buildings, warehouses, retail centers, medical facilities, data centers, cell towers, infrastructure and hotels. Bloomberg Markets is focused on bringing you the most important global business and breaking markets news and information as it happens. Short Term Liabilities: GNL's short term assets ($266.0M) exceed its short term liabilities ($36.7M). Also 50 days SMA (14.74) is 9 percent higher than the 10 days SMA (13.53). 2022 Outlook for the Economy, Commercial Real Estate and REITs. Notice: The information provided is for informational, non-commercial purposes only, does not constitute investment advice and is subject to conditions available in our Legal Disclaimer. Focus on office and industrial properties, strong tenant base, consistently high occupancy levels, and long lease terms ensure steady earnings for GNL. Trading at 66.6% below our estimate of its fair value, Earnings are forecast to grow 67.51% per year, Interest payments are not well covered by earnings, Dividend of 10.7% is not well covered by earnings, Shareholders have been diluted in the past year, Global Net Lease, Inc. announced that they will report Q2, 2022 results Pre-Market on Aug 04, 2022. How experienced are the management team and are they aligned to shareholders interests? Earnings vs Industry: GNL is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (69.5%). peer companies that do receive analyst-driven ratings. National Association of Real Estate Investment Trusts and Nareit are registered trademarks of the National Association of Real Estate Investment Trusts (Nareit). Bloomberg: Balance of Power focuses on the politics and policies being shaped by the agenda of President Biden's administration. Global Net Lease (NYSE:GNL) declares $0.40/share quarterly dividend, in line with previous. Earnings vs Market: GNL is forecast to become profitable over the next 3 years, which is considered above average market growth. Its strong operating performance has enabled the REIT to record a five-year average dividend yield of more than 10.5 percent. Future ROE: Insufficient data to determine if GNL's Return on Equity is forecast to be high in 3 years time. Most of these lease contracts come with a clause of committed rent increments. GNL generated sufficient earnings to pay consistent monthly or quarterly dividends with an average year-end yield of more than 10.5 percent over the past five years. 1-202-739-9400 What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target? Mr. James Larry Nelson, also known as Jim, has been an Independent Director at Chewy, Inc. since July 19, 2021. Global Net Lease Inc is a real estate investment trust that manages a globally diversified portfolio of commercial real estate properties. I cross-checked the pay-outs with corresponding FFO in the previous quarter, and found that it has been able to generate sufficient funds, and did not pay any dividend out of its capital. But, since the share split, its price has dropped by almost 43 percent in the past 63 months. Reducing Debt: GNL's debt to equity ratio has increased from 110.5% to 152% over the past 5 years. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. For 60 years, Nareit has led the U.S. REIT industry by ensuring its members best interests are promoted by providing unparalleled advocacy, investor outreach, continuing education and networking.
Sustainalytics' Peer Performance Insights gives an in-depth analysis of your company's ESG strengths and weaknesses compared to your competitors and industry performance. Looking for more investing ideas like this one? Click here for more on how to use these ratings. fair value, and uncertainty rating. 1-202-739-9401 (fax).