Global Net Lease, Inc.GNL
Global Net Lease, Inc. Segments Disclosure
Segment Reporting
________
As a result of the agreement to sell 100 of the 101 properties in its Multi-Tenant Retail segment in connection with the Multi-Tenant Retail Disposition, the Company determined, during the first quarter of 2025, that it has three remaining reportable segments based on property type: (1) Industrial & Distribution, (2) Retail and (3) Office. Previously, as of the years ended December 31, 2024 and 2023, the Company concluded it was operating in four segments.
The Company evaluates performance and makes resource allocations based on its three business segments. The Company is reporting its business segments using the “management approach” model for segment reporting, whereby the Company determines its reportable business segments based on the way the chief operating decision maker organizes business segments within the Company for making operating decisions and assessing financial performance. The Company’s chief operating decision maker, who is the Company’s Chief Executive Officer and President, receives and reviews financial information based on the Company's three segments. The Company evaluates business segment performance based upon net operating income, which is defined as total revenues from tenants, less property operating costs. The segments are managed separately due to the property type and the accounting policies are consistent across each segment. See below for a description of net operating income.
Net Operating Income
The Company evaluates the performance of the combined properties in each segment based on total revenues from tenants, less property operating costs. As such, this excludes all other items of expense and income included in the financial statements in calculating net income (loss). The Company uses net operating income at the segment level to assess and compare property level performance and to make decisions concerning the operation of the properties. The Company believes that the net operating income of each segment is useful as a performance measure because, when compared across periods, the net operating income of each segment reflects the impact on operations from trends in occupancy rates, rental rates, operating expenses and acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net income (loss).
The net operating income of each segment excludes certain components from net income (loss) in order to provide results that are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. The net operating income of the Company’s segments presented by the Company may not be comparable to similar measures reported by other REITs that define net operating income differently.
The following table provides operating financial information for the Company’s three reportable segments:
| Year Ended December 31, | ||||||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Industrial & Distribution: | ||||||||||||||||||||
| Revenue from tenants | $ | 225,665 | $ | 237,645 | $ | 220,102 | ||||||||||||||
| Property operating expense | 18,990 | 21,820 | 15,457 | |||||||||||||||||
| Net Operating Income | $ | 206,675 | $ | 215,825 | $ | 204,645 | ||||||||||||||
Retail (1) : | ||||||||||||||||||||
| Revenue from tenants | $ | 132,783 | $ | 165,595 | $ | 65,836 | ||||||||||||||
| Property operating expense | 14,763 | 16,095 | 6,173 | |||||||||||||||||
| Net Operating Income | $ | 118,020 | $ | 149,500 | $ | 59,663 | ||||||||||||||
| Office: | ||||||||||||||||||||
| Revenue from tenants | $ | 136,838 | $ | 143,571 | $ | 149,691 | ||||||||||||||
| Property operating expense | 17,453 | 18,865 | 19,386 | |||||||||||||||||
| Net Operating Income | $ | 119,385 | $ | 124,706 | $ | 130,305 | ||||||||||||||
Multi-Tenant Retail (2) : | ||||||||||||||||||||
| Revenue from tenants | $ | — | $ | 22,982 | $ | 10,132 | ||||||||||||||
| Property operating expense | — | 7,544 | 3,405 | |||||||||||||||||
| Net Operating Income | $ | — | $ | 15,438 | $ | 6,727 | ||||||||||||||
________
(1) Amounts in the Retail segment reflect the reclassification and inclusion of one property that was previously part of the Multi-Tenant Retail segment, which was not included in the Multi-Tenant Retail Disposition.
(2) Reflects former Multi-Tenant Retail properties that were sold individually prior to December 31, 2024. Does not include the Multi-Tenant Retail Portfolio which is presented as a discontinued operation (see Note 3 — Multi-Tenant Retail Disposition for additional information).
Reconciliation to Consolidated Financial Information
A reconciliation of the total reportable segment's revenue from tenants to consolidated revenue from tenants and the total reportable segment’s income to consolidated net (loss) income attributable to common stockholders is as follows:
| Year Ended December 31, | ||||||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Revenue From Tenants: | ||||||||||||||||||||
| Industrial & Distribution | $ | 225,665 | $ | 237,645 | $ | 220,102 | ||||||||||||||
Retail (1) | 132,783 | 165,595 | 65,836 | |||||||||||||||||
| Office | 136,838 | 143,571 | 149,691 | |||||||||||||||||
Multi-Tenant Retail (2) | — | 22,982 | 10,132 | |||||||||||||||||
| Total Consolidated Revenue From Tenants | $ | 495,286 | $ | 569,793 | $ | 445,761 | ||||||||||||||
| Net loss before income tax and net loss attributable to common stockholders: | ||||||||||||||||||||
| Net Operating Income: | ||||||||||||||||||||
| Industrial & Distribution | $ | 206,675 | $ | 215,825 | $ | 204,645 | ||||||||||||||
Retail (1) | 118,020 | 149,500 | 59,663 | |||||||||||||||||
| Office | 119,385 | 124,706 | 130,305 | |||||||||||||||||
Multi-Tenant Retail (2) | — | 15,438 | 6,727 | |||||||||||||||||
| Total net operating income | 444,080 | 505,469 | 401,340 | |||||||||||||||||
| Operating fees to related parties | — | — | (28,283) | |||||||||||||||||
| Impairment charges | (157,532) | (90,310) | (68,684) | |||||||||||||||||
| Merger, transaction and other costs | (6,662) | (6,022) | (54,417) | |||||||||||||||||
| Settlement costs | — | — | (29,727) | |||||||||||||||||
| General and administrative | (52,753) | (52,358) | (37,202) | |||||||||||||||||
| Equity-based compensation | (12,514) | (8,931) | (17,297) | |||||||||||||||||
| Depreciation and amortization | (191,189) | (216,820) | (179,351) | |||||||||||||||||
| Goodwill impairment | (7,134) | — | — | |||||||||||||||||
| Gain (loss) on dispositions of real estate investments | 94,687 | 57,091 | (1,672) | |||||||||||||||||
| Interest expense | (194,718) | (255,685) | (158,347) | |||||||||||||||||
| Loss on extinguishment and modification of debt | (11,222) | (15,877) | (1,221) | |||||||||||||||||
| (Loss) gain on derivative instruments | (10,676) | 4,203 | (3,691) | |||||||||||||||||
| Unrealized (losses) gains on undesignated foreign currency advances and other hedge ineffectiveness | (12,644) | 3,249 | — | |||||||||||||||||
| Other income | 4,331 | 1,075 | 1,809 | |||||||||||||||||
| Net loss before income tax | (113,946) | (74,916) | (176,743) | |||||||||||||||||
| Income tax expense | (21,801) | (4,445) | (14,475) | |||||||||||||||||
| Loss from continuing operations | (135,747) | (79,361) | (191,218) | |||||||||||||||||
| Loss from discontinued operations | (89,710) | (52,211) | (20,692) | |||||||||||||||||
| Net loss | (225,457) | (131,572) | (211,910) | |||||||||||||||||
| Preferred stock dividends | (43,743) | (43,744) | (27,438) | |||||||||||||||||
| Net loss attributable to common stockholders | $ | (269,200) | $ | (175,316) | $ | (239,348) | ||||||||||||||
(1) Amounts in the Retail segment reflect the reclassification and inclusion of one property that was previously part of the Multi-Tenant Retail segment, which was not included in the Multi-Tenant Retail Disposition.
(2) Reflects former Multi-Tenant Retail properties that were sold individually prior to December 31, 2024. Does not include the Multi-Tenant Retail Portfolio which is presented as a discontinued operation (see Note 3 — Multi-Tenant Retail Disposition for additional information).
The following table reconciles real estate investments, net by segment to consolidated total assets as of the periods presented:
| December 31, | ||||||||||||||
| (In thousands) | 2025 (1) | 2024 (1) | ||||||||||||
| Investments in real estate, net: | ||||||||||||||
| Industrial & Distribution | $ | 1,792,235 | $ | 2,180,309 | ||||||||||
Retail (2) | 1,142,964 | 1,402,600 | ||||||||||||
| Office | 875,425 | 1,039,124 | ||||||||||||
| Total investments in real estate, net | 3,810,624 | 4,622,033 | ||||||||||||
| Real estate assets held for sale | 49,654 | 17,406 | ||||||||||||
| Assets of discontinued operations | 348 | 1,816,131 | ||||||||||||
| Cash and cash equivalents | 180,114 | 159,698 | ||||||||||||
| Restricted cash | 13,949 | 64,510 | ||||||||||||
| Derivative assets, at fair value | 7 | 2,471 | ||||||||||||
| Unbilled straight line rent | 72,919 | 89,804 | ||||||||||||
| Operating lease right-of-use asset | 63,362 | 66,163 | ||||||||||||
| Prepaid expenses and other assets | 60,415 | 51,504 | ||||||||||||
| Multi-tenant disposition receivable, net | 27,934 | — | ||||||||||||
| Deferred tax assets | 5,167 | 4,866 | ||||||||||||
Goodwill (3) | 45,898 | 51,370 | ||||||||||||
| Deferred financing costs, net | 16,812 | 9,808 | ||||||||||||
| Total assets | $ | 4,347,203 | $ | 6,955,764 | ||||||||||
________
(1) Amounts reflect the presentation of the Multi-Tenant Retail Portfolio as a discontinued operation (see Note 3 — Multi-Tenant Retail Disposition for additional information).
(2) Amounts in the Retail segment reflect the reclassification and inclusion of one property that was previously part of the Multi-Tenant Retail segment, which was not included in the Multi-Tenant Retail Disposition.
(2) In connection with the Company’s conclusion that it now operates in three reportable segments, the Company’s goodwill allocation by segment is as follows as of December 31, 2025: (1) Industrial & Distribution: $25.8 million; (2) Single-Tenant Retail: $8.2 million; and (3) Office: $11.8 million.
Geographic Information
Other than the U.S. and United Kingdom, no country or tenant individually comprised more than 10% of the Company’s annualized revenue from tenants on a straight-line basis, or total long-lived assets at December 31, 2025. The following tables present the geographic information for Revenue from tenants and Investments in real estate:
| Year Ended December 31, | ||||||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Revenue from tenants: | ||||||||||||||||||||
| United States | $ | 341,643 | $ | 420,616 | $ | 295,784 | ||||||||||||||
| United Kingdom | 84,718 | 84,678 | 86,916 | |||||||||||||||||
| Europe | 65,810 | 61,322 | 59,823 | |||||||||||||||||
| Canada | 3,115 | 3,177 | 3,238 | |||||||||||||||||
| Total | $ | 495,286 | $ | 569,793 | $ | 445,761 | ||||||||||||||
| December 31, | ||||||||||||||
| (In thousands) | 2025 | 2024 | ||||||||||||
| Investments in real estate, gross: | ||||||||||||||
| United States | $ | 3,629,799 | $ | 4,231,893 | ||||||||||
| United Kingdom | 554,792 | 799,624 | ||||||||||||
| Europe | 554,965 | 554,133 | ||||||||||||
| Canada | 38,050 | 36,292 | ||||||||||||
| Total | $ | 4,777,606 | $ | 5,621,942 | ||||||||||
| Acquired Intangible Liabilities, Gross | ||||||||||||||
| United States | $ | 24,808 | $ | 30,983 | ||||||||||
| United Kingdom | 5,565 | 5,279 | ||||||||||||
| Europe | 6,200 | 10,669 | ||||||||||||
| Canada | 20 | 19 | ||||||||||||
| Total | $ | 36,593 | $ | 46,950 | ||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 27, 2024 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.