Income Taxes

The components of income tax expense for the periods presented are as follows:


	Year Ended December 31,
(In thousands)	2025		2024		2023
Net (Loss) Income Before Income Tax:
Domestic	$	(177,115)	$	(70,977)	$	(97,755)
Foreign	63,169		(3,939)		(78,988)
Net loss before income tax	(113,946)		(74,916)		(176,743)
Loss from discontinued operations	(89,710)		(52,211)		(20,692)
Total net loss before income tax:	$	(203,656)	$	(127,127)	$	(197,435)

Income Taxes:
Current:
State and Local	$	300	$	134	$	199
Foreign	9,761		4,569		16,656
Total income taxes, current	10,061		4,703		16,855
Deferred:
State and Local	—		—		—
Foreign	11,740		(258)		(2,380)
Total income taxes, deferred	11,740		(258)		(2,380)
Total Income Tax Expense	$	21,801	$	4,445	$	14,475

The components of cash paid for income taxes for the year ended December 31, 2025 were as follows:


	Year Ended December 31,
(In thousands)	2025
United States	$	785
United Kingdom	7,389
Netherlands	2,113
All other jurisdictions	211
Total cash paid for income taxes	$	10,498

A reconciliation of effective income tax for the year ended December 31, 2025 is as follows:


	Year Ended December 31,
(In thousands)	2025
	Amount		%
U.S. Federal Statutory Tax Rate	(42,767)		21.0	%
State and Local Income Taxes, Net of Federal Income Tax Effect	300		(0.1)	%
Foreign Tax effects:
United Kingdom
Statutory tax rate difference between United Kingdom and United States	(7,194)		3.5	%
Foreign financing activities	1,847		(0.9)	%
Change in valuation allowance	1,033		(0.5)	%
Other	2,994		(1.5)	%
Netherlands
Statutory tax rate difference between Netherlands and United States	116		(0.1)	%
Foreign financing activities	179		(0.1)	%
Change in valuation allowance	4,798		(2.4)	%
Other	1,525		(0.7)	%
Other Foreign Jurisdictions
Statutory tax rate difference between other foreign jurisdictions and United States	235		(0.1)	%
Foreign financing activities	2,715		(1.3)	%
Change in valuation allowance	(702)		0.3	%
Other	862		(0.4)	%
Nontaxable or Nondeductible Items
Other	(173)		0.1	%
Other Adjustments
Tax adjustments related to REIT	56,033		(27.5)	%
Effective Tax Rate	$	21,801	(10.7)	%

A reconciliation of effective income tax for the years ended December 31, 2024 and 2023 is as follows:


	Year Ended December 31,
(In thousands)	2024		2023
Tax benefit at statutory rates	$	(26,651)	$	(41,461)
Foreign rate differential	(295)		1,139
Foreign financing activities	7,721		11,047
Tax adjustments related to REIT	25,871		24,874
Deferred tax assets generated in the current year added to valuation allowance	(1,388)		5,949
Other	(813)		12,927
Total income tax expense	$	4,445	$	14,475

Deferred Income Taxes

Deferred income taxes as of the periods presented consists of the following:


	December 31,
(In thousands)	2025		2024
Deferred Tax Assets
Basis differences	$	15,498	$	14,924
Net operating loss carryforwards	8,061		3,205
Total deferred tax assets	23,559		18,129
Valuation allowance	(18,392)		(13,263)
Net deferred tax assets	5,167		4,866
Deferred Tax Liabilities
Basis differences	(16,381)		(4,170)
Straight-line rent	(1,415)		(1,307)
Total deferred tax liabilities	(17,796)		(5,477)
Net Deferred Tax Liability	$	(12,629)	$	(611)

The Company’s deferred tax assets and liabilities are primarily the result of temporary differences related to the following:

•Basis differences between tax and GAAP for certain international real estate investments. For income tax purposes, in certain acquisitions, the Company assumes the seller’s basis, or the carry-over basis, in the acquired assets. The carry-over basis is typically lower than the purchase price, or the GAAP basis, resulting in a deferred tax liability with an offsetting increase to goodwill or the acquired tangible or intangible assets;

•Timing differences generated by differences in the GAAP basis and the tax basis of assets such as those related to capitalized acquisition costs and depreciation expense; and

•Tax net operating losses in certain subsidiaries, including those domiciled in foreign jurisdictions that may be realized in future periods if the respective subsidiary generates sufficient taxable income.

As of December 31, 2025, foreign net operating loss carryforwards were $40.4 million, which will begin to expire in 2028.

Historical Timeline

Fiscal Year	Filed
2025	Feb 25, 2026	Showing above
2024	Feb 27, 2025

2023	Feb 27, 2024

2022	Feb 23, 2023

2021	Feb 24, 2022

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.

Global Net Lease, Inc. Income Taxes Disclosure

Historical Timeline

About Income Taxes Disclosures

Other Available Disclosures