Frequently Asked Questions

REITs, in general

Real estate investment trusts or REITs are companies that own or finance income-producing real estate in a range of property sectors. These companies have to meet a number of requirements to qualify as REITs. Most REITs trade on major stock exchanges, and they offer a number of benefits to investors. REITs are a practical way for all investors to invest in large-scale, income-producing, professionally managed companies that own commercial real estate such as office, industrial / distribution, warehouse, healthcare and retail properties. Some REITs invest throughout the country or, in some cases, throughout the world. Others specialize in one region or even a single metropolitan area.

REITs are real estate working for you. Through the diverse array of properties they own, finance and operate, REITs help provide the essential real estate we need to live, work and play. REITs of all types collectively own more than $3 trillion in gross assets across the U.S., with stock-exchange listed REITs owning approximately $2 trillion in assets. U.S. listed REITs have an equity market capitalization of more than $1 trillion. In addition, more than 80 million Americans invest in REIT stocks through their 401(k) and other investment funds. REITs are total return investments as they typically a) offer current income through the distributions they pay and b) offer the potential for moderate, long term capital appreciation. Here are answers to fundamental questions about REITs.

REIT Basics

  • A REIT is a company dedicated to owning, and in most cases, operating income-producing commercial real estate such as office, industrial / distribution, warehouse, healthcare and retail properties. Some REITs also engage in financing real estate.
  • An estimated 80 million Americans own REIT shares directly or through their mutual fund investments.
  • To qualify as a REIT a company must:
    • Invest at least 75 percent of its total assets in real estate, cash, and government securities
    • Derive at least 75 percent of its gross income from rents from real property, interest on mortgages financing real property or from sales of real estate
    • Pay at least 90 percent of its taxable income in the form of shareholder dividends each year
    • Have a minimum of 100 shareholders
    • Have no more than 50 percent of its shares held by five or fewer individuals

    REITs generally pay little or no U.S. corporate income taxes because they are able to deduct dividends they pay from their taxable earnings.

  • For REITs, dividend distributions for tax purposes are allocated to ordinary income, capital gains and return of capital, each of which may be taxed at a different rate. Currently, the maximum capital gains tax rate of 20 percent applies generally to the sale of REIT stock. All public companies, including REITs, are required early in the year to provide shareholders with information clarifying how the prior year's dividends should be allocated for tax purposes.

    Tax information is reported on Form 1099-DIV. Shareholders should contact a tax professional for tax-related questions.

Commonly Used REIT Terms

  • In commercial real estate, a net lease is a lease in which in addition to rent the tenant is required to pay a portion, or all, of the taxes, insurance and maintenance costs for a property during the lease term:

    Property Taxes Property Insurance Property Maintenance and Repairs
    Single Net Lease Tenant Responsibility
    Double Net or NN Lease Tenant Responsibility Tenant Responsibility
    Triple Net or NNN Lease Tenant Responsibility Tenant Responsibility Tenant Responsibility

    GNL owns and invests in commercial properties, principally in the U.S., United Kingdom, and Western Europe, that are net leased to the tenant.

  • Real estate companies such as REITs "straight line" rents because generally accepted accounting principles require it. Straight-lining averages the tenant's rent payments over the life of the lease.
  • Earnings Before Interest, Taxes, Depreciation and Amortization.
  • The capitalization rate is the rate of return on an investment property. It is calculated as the net operating income earned on a property divided by the purchase price of the property.
  • The initial capitalization rate is the rate of return generated by a newly acquired investment property at the time of acquisition. The initial capitalization rate does not take into account future factors such as rent escalators.
  • An average GAAP capitalization rate is a rate of return on a real estate investment property based on the expected, annualized straight lined rent that the property will generate under its existing lease. A GAAP capitalization rate is calculated by dividing the annualized straight lined rent the property will generate (before debt service and depreciation and after fixed costs and variable costs) and the purchase price of the property

Questions Specific to GNL and its Business

  • GNL’s fiscal year ends on December 31st.
  • GNL’s SEC filings can be viewed within the “Investor Relations” section of this website under “Filings and Financials” or on the SEC’s website at www.SEC.gov.
  • GNL’s Investor Presentations can be found within the “Investor Relations” section of this website under “News and Events.” Please click here: GNL Investor Presentations. GNL also generally furnishes all Investor Presentations as exhibits to SEC filings, which are available as described above.
  • Board of Directors
    Name Role Bio
    P. Sue Perrotty Non-Executive Chair / Independent Director GNL Board Members - Summary Bios
    Edward G. Rendell Independent Director
    Abby M. Wenzel Independent Director
    Lee M Elman Independent Director
    James L. Nelson Director
    Michael Weil Director
    Leadership Team
    Name Role Bio
    James L. Nelson Chief Executive Officer, President and Director James Nelson Bio
    Christopher Masterson Chief Financial Officer, Treasurer and Secretary Chris Masterson Bio
    GNL Leadership Team Team Bios
  • GNL trades on the New York Stock Exchange and has two classes of publicly traded shares:

    a. Common stock: NYSE: GNL
    b. Series A preferred stock: NYSE: GNL.PRA
  • a. GNL’s common stock listed on the NYSE on June 2, 2015.
    b. GNL’s Series A preferred stock listed on the NYSE on September 7, 2017.
  • The CUSIP for GNL’s common stock is 379378201
    The CUSIP for GNL’s Series A preferred stock is 379378300
  • Please contact your financial advisor or broker to discuss investing in GNL. Shares must be purchased through a registered broker-dealer.
  • Yes. GNL pays dividends on both classes of stock. Please see below for details:

    Type Dividend Frequency Rate (period) Rate (annualized)
    Common (NYSE:GNL) Monthly $0.1775 per share $2.13 per share
    Series A Preferred (NYSE:GNL.PRA) Quarterly $0.453125 per share $1.8125 per share

    Dividends on the Common Stock paid on a monthly basis on the 15th day of each month (or, if not a business day, the next succeeding business day) to Common Stock holders of record on the applicable date each month. Dividend payments are dependent on the availability of funds. GNL’s board of directors may alter the amount of dividends paid or suspend dividend payments at any time and therefore dividend payments are not assured. There is no assurance that GNL will continue to declare and pay dividends at the current rates.

    To view GNL’s current and historical dividends on its common stock, please click GNL Common Stock Dividend History.

    Dividends on the Series A preferred stock are payable quarterly in arrears to Series A preferred stock holders of record at the close of business on the applicable record date and payable on the 15th day of the first month of each fiscal quarter (or, if not a business day, the next succeeding business day).

  • If you hold your shares in your own name through GNL's transfer agent, American Stock Transfer, you will receive payment each month or quarter, as applicable, directly from AST. Checks are mailed to the address of record.

    If you hold your shares in a brokerage account, your dividend will be deposited directly into your account by that brokerage firm.

  • GNL does not have a dividend reinvestment program. Please contact your broker directly to inquire whether your brokerage firm can facilitate a program whereby you can invest your dividends automatically in additional GNL shares.

Questions Specific to Tax documents, investor accounts and investor relations

  • Shareholders who own GNL shares in a brokerage account should contact that brokerage firm to request a Form 1099-DIV copy.

    Shareholders whose shares are held on the books of GNL's transfer agent, American Stock Transfer ('AST'), may contact AST to request a Form 1099-DIV.

    Website: www.amstock.com
    E-mail: help@astfinancial.com
    Telephone: (866) 822-1236
    Written Inquiries: Global Net Lease c/o American Stock Transfer & Trust Co
    6201 15th Ave
    Brooklyn, NY 11219
  • GNL's transfer agent is American Stock Transfer (AST). Shareholders who hold shares directly on AST's books may contact AST as follows:

    Website: www.amstock.com
    E-mail: help@astfinancial.com
    Telephone: (866) 822-1236
    Written Inquiries: Global Net Lease c/o American Stock Transfer & Trust Co
    6201 15th Ave
    Brooklyn, NY 11219
  • Please click here to set your GNL E-Mail Notification Options to receive periodic communications and filing alerts from GNL via e-mail.

    These notifications include including press releases, investor presentations, quarterly Forms 10-Q and annual Forms 10-K filings as well as quarterly earnings call announcements.

  • You may reach GNL's investor relations department as follows:

    E-mail: investorrelations@globalnetlease.com
    Telephone: (917) 475-2153
    Mailing Address: 405 Park Avenue, 3rd Floor
    New York, NY 10022