In a recent transaction, an insider at Global Net Lease , Inc. (NYSE:GNL), a real estate investment trust, has sold a significant number of shares in the company. The insider, Nicholas S. Schorsch, through Bellevue Capital Partners, LLC, of which he is the sole managing member, completed the sale of Global Net Lease common stock over a span of three days.
The transactions, which took place between June 24 and June 26, involved the sale of 400,000 shares at prices that varied from day to day. On June 24, 150,000 shares were sold at an average price of $7.19 per share. The following day saw another 150,000 shares sold at an average price of $7.08, and on June 26, the final batch of 100,000 shares was sold at an average price of $7.02.
These sales resulted in a total of approximately $2.84 million. The reported prices reflect a weighted average, as the shares were sold in multiple transactions at varying prices within the specified ranges. For the June 24 sale, the prices ranged from $7.17 to $7.25, while on June 25, they ranged from $7.06 to $7.12, and on June 26, the shares were sold at prices between $7.02 to $7.08.
The SEC filing indicated that these shares were sold for tax planning purposes. Following these transactions, Schorsch's indirectly held position in the company, through Bellevue Capital Partners and other associated entities, remains substantial.
Investors often monitor insider transactions as they can provide insights into an insider’s perspective on the value of the company's stock. However, it is important to note that there can be many reasons for insiders to sell shares, and such transactions do not always reflect their outlook on the company’s future performance.
Global Net Lease, Inc. specializes in acquiring and managing a diversified global portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant net-leased commercial properties. The company has a broad presence and operates with a strategy focused on long-term, stable cash flows.
As with any insider transaction, the details have been made public in accordance with SEC regulations to maintain transparency and ensure fair trading practices in the market.
In other recent news, B.Riley has adjusted its outlook on Global Net Lease (GNL), reducing the price target to $11.00 from the previous $12.50, while still recommending a Buy rating for the stock. This adjustment is a result of a slight decrease in the forecasted Adjusted Funds From Operations (AFFO) per share for fiscal year 2024, and a revision in the expected Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). GNL has reported growth in AFFO per share and active leasing, despite a net loss, and completed a significant commercial mortgage-backed securities (CMBS) refinancing.
The company's asset disposition program is on track, with $554 million in sales proceeds already achieved out of a targeted $400 to $600 million. B.Riley anticipates that approximately 70% of the planned asset sales will be finalized in the second half of 2024. These sales are part of the management's strategy to reduce the company's leverage, aiming to lower the net debt-to-EBITDA ratio from the current 8.4 times to a target range of 7.4 to 7.8 times by the end of 2024.
As Global Net Lease's leverage diminishes, its valuation multiple is expected to align more closely with those of other net lease Real Estate Investment Trusts (REITs). GNL maintains its AFFO per share guidance of $1.30 to $1.40 and a net debt to adjusted EBITDA range of 7.4x to 7.8x for 2024. These are the recent developments for Global Net Lease.
InvestingPro Insights
Following the insider sale activity at Global Net Lease, Inc. (NYSE:GNL), current and prospective investors may find it beneficial to consider additional data and insights. According to InvestingPro, while analysts forecast a surge in the company's sales for the current year, they are less optimistic about its profitability, not expecting GNL to be profitable this year. This aligns with the company's performance over the last twelve months, where it has not been profitable. Moreover, the company pays a significant dividend to shareholders, with a notable dividend yield recorded at 15.67% as of the latest available data.
InvestingPro Data further reveals that Global Net Lease has a market capitalization of $1.61 billion and has experienced a considerable revenue growth of 66.67% over the last twelve months as of Q1 2024. Despite this growth, the company's performance in the stock market has been underwhelming, with a 6-month price total return of -25.02%, indicating that the stock has indeed taken a significant hit over the last six months.
Investors considering GNL should also be aware that the company is trading at a high EBIT valuation multiple, which could be a point of analysis for those evaluating the company's stock value in relation to its earnings before interest and taxes. For a deeper analysis and more InvestingPro Tips, visit https://www.investing.com/pro/GNL where an additional 5 tips are available. To enhance your investing strategy with these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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