Global Net Lease, Inc. (NYSE: GNL), a real estate investment trust that focuses on acquiring and managing a globally diversified portfolio of strategically-located commercial real estate properties, announced today its financial and operating results for the quarter and year ended December 31, 2020.

Full Year 2020 Highlights

• Revenue from tenants increased 7.8% to $330.1 million from $306.2 million in prior year
• Net loss attributable to common stockholders was $7.8 million, or $0.09 per diluted share compared to net income of $34.5 million or $0.39 per diluted share in 2019
• Net Operating Income ("NOI") grew 7.1% to $297.7 million compared to $277.9 million in the prior year
• Core Funds from Operations ("Core FFO") of $135.2 million, or $1.51 per diluted share
• Adjusted Funds from Operations ("AFFO") was $160.5 million compared to $159.7 million in the prior year
• Dividends paid to common stockholders were $155.1 million, or $1.73 per share
• AFFO per diluted share was $1.79, as compared to $1.85 in 2019
• Portfolio 99.7% leased with 8.5 years of weighted average remaining lease term1, up from 8.3 years in prior year
• Properties located in ten countries, up from eight, with expansion into Italy and Spain
• Acquired 28 properties for an aggregate contract purchase price of $461.2 million2 at a weighted-average going-in capitalization rate3 of 6.8% and a weighted-average capitalization rate4 of 7.9%, with 14.5 years of weighted-average remaining lease term5
• Completed 12 lease renewals for a weighted-average of 10.8 years of lease extensions on 1.6 million square feet, or 4.3% of the portfolio
• Portfolio of high quality tenants with 67% of annualized straight-line rent derived from investment grade or implied investment grade6 tenants, including nine out of the top ten tenants
• Increased industrial/distribution assets by 3% year over year based on annualized straight-line rent and added two new industrial, investment-grade tenants to Top 10 Tenants
• Annual rent escalators in 93.9% of leases as of December 31, 2020 provide contractually embedded rent growth7
• Completed $500 million senior unsecured note offering with a 3.75% coupon
• Ample Liquidity of $218.8 million8

Fourth Quarter 2020 Highlights

• Revenue from tenants grew 13.5% to $87.0 million from $76.7 million in fourth quarter 2019
• Net loss attributable to common stockholders was $13.3 million, or $0.15 per diluted share compared to net income of $9.3 million, or $0.10 per diluted share in fourth quarter 2019
• Core FFO of $26.3 million, or $0.29 per diluted share
• NOI rose by 9.0% to $77.4 million as compared to $71.0 million in the fourth quarter 2019
• AFFO was $40.1 million, compared to $39.9 million in the prior year fourth quarter
• AFFO per diluted share was $0.45, compared to $0.44 per diluted share in fourth quarter 2019
• Collected 99% of fourth quarter cash rents, including 100% from Top 20 tenants, as of February 22, 20219
• Acquired seven properties for an aggregate contract purchase price of $292.8 million at a 6.5% weighted-average going-in capitalization rate and at a weighted average capitalization rate of 7.2%, with a weighted-average remaining lease term of 9.6 years

"I am extremely proud of how GNL has performed throughout the last year of unprecedented disruption caused by the global pandemic," commented James Nelson, Chief Executive Officer of GNL. "Our resilience is a testament to the strength of our strategy, including the deliberate construction of our portfolio and our focus on mission-critical industrial, distribution and office properties. We also closed on our inaugural notes offering at a time of historically low interest rates and sourced and closed on over 460 million dollars of accretive acquisitions. We further enhanced GNL's already high-quality portfolio through lease extensions, expansion into Italy and Spain with Investment Grade tenants, and the collection of substantially all of the cash rent owed to GNL. Each lease set to expire in 2020 was extended and we also signed early, long-term lease extensions with 12 tenants. The early extensions give us significant momentum headed into 2021, and are a true testament to our proactive asset management, our tenants' commitment to space that is important to their business and the relationships we have built. We are emboldened by the outstanding performance of our institutional-grade portfolio and are poised to continue building our success in the coming year and beyond."

Property Portfolio

At December 31, 2020, the Company's portfolio consisted of 306 net lease properties located in ten countries and comprised 37.2 million rentable square feet substantially all of which was net leased to 130 tenants across 48 industries. The real estate portfolio metrics include:

• 99.7% leased with a remaining weighted-average lease term of 8.5 years
• 93.9% of the portfolio contains contractual rent increases based on square footage
• 67% of portfolio annualized straight-line rent derived from investment grade and implied investment grade rated tenants
• 64% U.S. and 36% Europe (based on annualized straight-line rent)
• 46% Office, 49% Industrial / Distribution and 5% Retail (based on an annualized straight-line rent)

Rent Collection

The Company collected 99% of cash rents that were payable in the fourth quarter of 2020 as of February 22, 2021, including 100% of the cash rent payable from the top 20 tenants in the portfolio (measured based on annualized cash rent as of December 31, 2020), which represent 49% of GNL's fourth quarter cash rent. On a geographic basis, GNL collected 99% of the cash rent payable from U.K. based assets, 100% from European tenants and 98% of tenants located in the U.S.

Acquisition Activity

During the fourth quarter, the Company acquired seven net leased assets for an aggregate contract purchase price of approximately $292.8 million. These assets were purchased at a weighted-average going-in capitalization rate of 6.5%, and an overall weighted average going-in capitalization rate of 7.2%, with a weighted-average remaining lease term of 9.6 years. Approximately $140.0 million of these acquisitions closed in the latter half of December. During the year, the Company acquired 28 net leased assets for a contract sales price of approximately $461.2 million. These assets were purchased at a weighted-average going in capitalization rate of 6.8%, and an overall weighted-average capitalization rate of 7.9%, with a weighted average remaining lease term of 14.5 years.

Capital Structure and Liquidity Resources

On December 16, 2020, the Company completed a private placement of $500.0 million aggregate principal amount of 3.75% senior notes. The senior notes are guaranteed by certain of our subsidiaries, were issued at par and mature on December 15, 2027.

As of December 31, 2020, the Company had $124.2 million of cash and cash equivalents. The Company's net debt to enterprise value was 54.5% with an enterprise value of $4.0 billion based on the December 31, 2020 closing share price of $17.14 for common stock, $26.16 for the Series A preferred stock and $25.40 for the Series B preferred stock, with net debt10 of $2.2 billion, including $1.4 billion of mortgage debt.

As of December 31, 2020, the percentage of fixed rate debt (including variable rate debt fixed with swaps) increased to 95.8% from 88.2% as of December 31, 2019. The Company's total combined debt had a weighted average interest rate cost of 3.3% resulting in an interest coverage ratio of 3.7 times11. Debt maturity was 5.4 years as of December 31, 2020 as compared to 5.8 years at the end of the fourth quarter 2019.

Footnotes/Definitions

1 Weighted-average remaining lease term in years is based on square feet as of December 31, 2020.

2 Represents the contract purchase price and excludes acquisition costs which are capitalized per GAAP.

3 Going-in capitalization rate is a rate of return on a real estate investment property based on the expected, cash rental income that the property will generate under its existing lease during the first year of the lease. Going-in capitalization rate is calculated by dividing the cash rental income the property will generate during the first year of the lease (before debt service and depreciation and after fixed costs and variable costs) and the purchase price of the property. The weighted-average going-in capitalization rate is based upon square feet of the date of acquisition.

4 Capitalization rate is a rate of return on a real estate investment property based on the expected, annualized straight-line rental income that the property will generate under its existing lease. Capitalization rate is calculated by dividing the average annualized straight-line rental income the property will generate (before debt service and depreciation and after fixed costs and variable costs) and the purchase price of the property. The weighted-average capitalization rate is based upon square feet.

5 The weighted-average remaining lease term in years is based upon square feet as of the date of acquisition.

6 As used herein, "Investment Grade Rating" includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied Investment Grade may include actual ratings of tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant's obligation under the lease) or by using a proprietary Moody's analytical tool, which generates an implied rating by measuring a company's probability of default. The term "parent" for these purposes includes any entity, including any governmental entity, owning more than 50% of the voting stock in a tenant. Ratings information is as of December 31, 2020. Comprised of 36.5% leased to tenants with an actual investment grade rating and 30.5% leased to tenants with an Implied Investment Grade rating as of December 31, 2020.

7 Represents contractual increases of base rent.

8 Liquidity consists of $94.5 million of availability under the credit facility and $124.2 million of cash and cash equivalents.

9 This information may not be indicative of any future period. The impact of the COVID-19 pandemic on the Company's rental revenue for the first quarter of 2021 and thereafter cannot be determined at present. The ultimate impact on our future results of operations and liquidity will depend on the overall length and severity of the COVID-19 pandemic, which management is unable to predict.

10 Comprised of the principal amount of GNL's debt totaling $2.3 billion less cash and cash equivalents totaling $124.2 million, as of December 31, 2020.

11 The interest coverage ratio is calculated by dividing adjusted EBITDA by cash paid for interest (interest expense less non-cash portion of interest expense and amortization of mortgage (discount) premium, net) for the quarter ended December 31, 2020. Adjusted EBITDA and cash paid for interest are Non-GAAP metrics and are reconciled below.

Conference Call

GNL will host a conference call on February 24, 2021 at 11:00 a.m. ET to discuss its financial and operating results.

Dial-in instructions for the conference call and the replay are outlined below. This conference call will also be broadcast live over the Internet and can be accessed by all interested parties through the GNL website, www.globalnetlease.com, in the "Investor Relations" section.

To listen to the live call, please go to GNL's "Investor Relations" section of the website at least 15 minutes prior to the start of the call to register and download any necessary audio software. For those who are not able to listen to the live broadcast, a replay will be available shortly after the call on the GNL website at www.globalnetlease.com.

About Global Net Lease, Inc.

Global Net Lease, Inc. (NYSE: GNL) is a publicly traded real estate investment trust listed on the NYSE focused on acquiring a diversified global portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant, mission critical income producing net-leased assets across the United States, Western and Northern Europe. Additional information about GNL can be found on its website at www.globalnetlease.com.