GNL

Greetings, welcome to the Global Net Lease, Inc. Q1 2026 earnings call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jordyn Schoenfeld, Vice President of Corporate Strategy. Thank you. You may begin.

Thank you. Good morning, everyone, and thank you for joining us for GNL's first quarter 2026 earnings call. Joining me today on the call is Michael Weil, GNL's Chief Executive Officer, and Chris Masterson, GNL's Chief Financial Officer. The following information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Please review the forward-looking and cautionary statement section at the end of our first quarter 2026 earnings release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today. As stated in our SEC filings, GNL disclaims any intent or obligation to update or revise these forward-looking statements except as required by law. Also, during today's call, we will discuss certain non-GAAP financial measures which we believe can be useful in evaluating the company's financial performance.

Descriptions of those non-GAAP financial measures that we use, such as AFFO and Adjusted EBITDA, and reconciliations of these measures to our results as reported in accordance with GAAP, are detailed in our earnings release and supplemental materials. I'll now turn the call over to our Chief Executive Officer, Michael Weil. Mike?

Thanks, Jordyn. Good morning, thank you all for joining us today. Before we review our first quarter 2026 results, I'd like to discuss our planned strategic acquisition of Modiv Industrial, which we announced earlier this week. This transaction is a direct reflection of the strategy we outlined on our last earnings call and the tangible progress we've already made towards implementing it. Following a transformational year for GNL in 2025, when we took deliberate actions to significantly reduce leverage, strengthen our credit profile, and improve the overall quality of our portfolio, we are now positioned to focus on the disciplined recycling of capital into high-quality industrial and retail assets. This includes pursuing selective and opportunistic asset sales, particularly those that reduce our office exposure, while redeploying proceeds accretively into single-tenant industrial and retail investments.

The Modiv transaction would do just that, as we believe the closing of the transaction will advance the durability and quality of our earnings profile by adding a high-quality portfolio of industrial net lease assets across the U.S., supported by long-duration leases and creditworthy tenants align well with our investment criteria. The transaction is expected to be immediately accretive, with approximately 4% accretion to AFFO per share, including meaningful cost synergies through the elimination of duplicative G&A. Importantly, the transaction is structured as an all-stock acquisition with a fixed exchange ratio of 1.975 to lock in the 4% accretion, making it leverage neutral and requiring no new external capital. We believe this structure will preserve the balance sheet strength we've established while allowing us to maintain meaningful flexibility to pursue future strategic growth opportunities.

Modiv's long-duration leases have a weighted average lease term of 15 years, include 2.4% annual rent escalations, and are supported by a well-recognized tenant base of leading global brands, with approximately 45% of annual base rent derived from investment-grade or implied investment-grade tenants. On a pro forma basis, the acquisition is expected to extend our weighted average lease term from 5.9 to 6.7 years, increase our industrial exposure from 47% to 50%, and reduce our office concentration from 26% to 24%, which will collectively strengthen our portfolio mix, expanding our geographic reach across key U.S. industrial markets and enhancing the overall stability of our combined platform. We're very excited about this transaction, which we expect to close in the third quarter of this year.

In addition to the Modiv transaction, we're actively engaged in other transaction activity consistent with our corporate strategy. Reflecting the mission-critical nature of our office portfolio, we're under contract to sell a 33,000 square foot office building leased to the General Services Administration for $13 million at a 7.2% cash cap rate, with closing expected in the second quarter of 2026. Beyond this transaction, we currently have additional office properties in our portfolio that we believe may present a similar disposition opportunity going forward as we continue to focus on lowering our office exposure.

At the same time, we're under contract to acquire an approximate 100,000 square foot single-tenant industrial asset occupied by a Fortune 50 investment-grade tenant for $14 million at an 8.2% cash cap rate, which would further demonstrate our ability to prudently execute our accretive recycling strategy into higher quality assets that we believe will generate more compelling risk-adjusted returns. The asset features a 2031 lease maturity, and we believe our longstanding relationship with the tenant will be advantageous as we're already in simultaneous discussions regarding an early long-term lease extension. We're actively negotiating the sale of additional office assets and look forward to providing updates as transactions advance. Our pipeline of redeployment opportunities continues to grow, and we believe we're well-positioned to execute on a leverage net-neutral basis in a way that drives earnings growth while preserving the balance sheet quality we've established.

Our acquisition approach remains disciplined and highly selective, focused on high-quality income-generating assets that align with our long-term strategy. In addition to our capital recycling strategy, we continue to evaluate the most effective uses of our disposition proceeds, including opportunistic share repurchases. Since the beginning of our share repurchase program through May 1, 2026, we've repurchased 19.7 million shares at a weighted average price of $8.05, totaling $158.2 million. We've been deliberate and opportunistic in how we've executed this program, and we remain disciplined in balancing these repurchases with our continued focus on leverage reduction and the redeployment of capital into higher quality assets. Turning to our portfolio, at the end of the first quarter of 2026, we owned 809 properties totaling 40 million rentable sq ft.

Our portfolio was 97% occupied, an increase from 95% in the first quarter of 2025, with a weighted average remaining lease term of 5.9 years. Specifically, our office occupancy increased to 99% from 95% in the first quarter of 2025, primarily driven by the disposition of a $45 million vacant office property, which also eliminates over $1 million of annualized negative NOI drag. Our office portfolio continues to perform well, supported by 100% rent collection and the highest proportion of investment-grade tenants within our portfolio. GNL's portfolio features a stable tenant base and high quality of earnings, with an industry-leading 64% of tenants carrying an investment-grade or implied investment-grade rating, up from 60% in the first quarter of 2025.

Our average annual contractual rental increase is 1.5%, excluding the impact of 20.1% of the portfolio, with CPI-linked leases that have historically experienced significantly higher rental increases. On the leasing front, we delivered strong results across the portfolio during the first quarter, reflecting the quality of our asset management capabilities and tenant relationships. We executed leases on more than 141,000 sq ft and achieved renewal spreads of approximately 5.1% above expiring rents. Notable activity included several renewals with nationally recognized retail tenants, such as Dollar General and Tractor Supply, as well as the renewal of a 58,000 sq ft FedEx distribution facility at an approximate 9% renewal spread. We continue to engage with tenants well in advance of lease expirations to drive occupancy, retention, and rental growth while maintaining a long-term focus on portfolio stability.

As we continue advancing our approach to asset management, we have meaningfully enhanced our data and technology capabilities, improving how we engage with tenants and evaluate opportunities, and ultimately the outcomes we deliver across the portfolio. We've been leveraging artificial intelligence to enhance our decision-making on both the leasing and transaction front. Specifically, we're now able to rapidly analyze foot traffic patterns and performance analytics for our tenants. Intelligence that directly informs our renewal negotiations and strengthens our underwriting when evaluating prospective transactions. This data-driven approach allows us to engage tenants from a more informed position, and we believe it's an increasingly meaningful contributor to our ability to drive favorable lease economics across the portfolio and secure advantageous terms on transactions.

Perhaps most importantly, we believe it will also give us the ability to seamlessly absorb the Modiv portfolio and its approximately $535 million of new assets without any increase in headcount. Our continued efforts to limit exposure to high-risk geographies, asset types, tenants, and industries reflect our intentional diversification strategy and disciplined credit underwriting. No single tenant accounts for more than 6% of total straight-line rent, and our top 10 tenants collectively contribute only 29% of total straight-line rent, with 80% being investment-grade. We carefully monitor all tenants in our portfolio and their business operations on a regular basis. I encourage everyone to review the details of each segment of our portfolio in our first quarter of 2026 investor presentation on our website.

I'll turn the call over to Chris to walk through the financial results and balance sheet matters in more detail. Chris?

Thanks, Mike. Please note that as always, a reconciliation of GAAP net income to non-GAAP measures can be found in our earnings release, which is posted on our website. For the first quarter of 2026, we recorded revenue of $109.3 million, and a net loss attributable to common stockholders of $16 million. AFFO was $43.9 million or $0.21 per share. Following the successful repositioning of our portfolio over the past several quarters, including the $1.8 billion multi-tenant retail portfolio sale, we have reduced annualized G&A expense by 25% year-over-year to $49 million from $65 million in the first quarter of 2025, driven by operational efficiencies.

Additionally, capital expenditures declined to $1.6 million from $9.8 million in the first quarter of 2025, supporting improved cash flow through a more streamlined portfolio. Looking at our balance sheet, the gross outstanding debt balance was $2.6 billion at the end of the first quarter of 2026, a reduction of $1.3 billion from the end of the first quarter of 2025. Our debt is comprised of $1 billion in senior notes, $290 million on the multicurrency revolving credit facility, and $1.3 billion of outstanding gross mortgage debt. As of the end of the first quarter of 2026, 99% of our debt is tied to fixed rates or debt that is swapped to fixed rates.

Our weighted average interest rate stood at 4.1%, down from 4.2% in the first quarter of 2025, and our interest coverage ratio was 3x. At the end of the first quarter of 2026, our net debt to Adjusted EBITDA ratio was 7.2x based on net debt of $2.4 billion, compared to 6.7x at the end of the first quarter of 2025. While the ratio this quarter was higher than the end of the first quarter of 2025 due to timing of dispositions, we are confident that we will remain within our stated net debt to Adjusted EBITDA 2026 guidance range of 6.5x-6.9x.

As of March 31st, 2026, we have liquidity of approximately $911 million and $1.5 billion of capacity on our revolving credit facility, compared to $499 million and $1.4 billion, respectively, as of the end of the first quarter of 2025. Additionally, we had approximately 212 million shares of common stock outstanding and approximately 214 million shares outstanding on a weighted average basis for the first quarter of 2026. Since launching our share repurchase program in 2025 and through May 1st, 2026, we have repurchased 19.7 million shares for a total of $158.2 million.

This includes approximately 4.2 million shares repurchased in the 1st quarter of 2026 for $38.4 million at a weighted average price of $9.07. Since inception, total repurchases under this program have been executed at a weighted average price of $8.05, a meaningful discount to the current share price, which has appreciated approximately 18% since those purchases were made. We believe this program has been a highly accretive use of capital and has generated tangible value for our shareholders. Turning to our outlook for 2026, we are confident in our performance and reaffirm our full year AFFO per share guidance of $0.80-$0.84. We also reaffirm our stated net debt to Adjusted EBITDA range 6.5x-6.9x.

This guidance excludes the anticipated benefit from the Modiv transaction, which we plan to address and update upon closing. Although we believe it is worth emphasizing that the acquisition is structured to be leverage neutral with our 2026 net debt to Adjusted EBITDA guidance range of 6.5x-6.9x. I'll now turn the call back to Mike for some closing remarks.

Thanks, Chris. As we begin this next phase of GNL's evolution, we do so from a position of strength, focused on strategically reducing our office exposure while redeploying capital into higher quality, higher yielding assets. The foundation we built in 2025, a stronger balance sheet, an improved credit profile, and a more focused portfolio, gives us flexibility and confidence to execute this strategy on our own terms, remaining patient and selective as we identify the right opportunities. We won't rush to deploy capital for the sake of it. We'll be thorough, diligent, and highly selective, pursuing only those opportunities that we believe genuinely enhance the quality and earnings of our portfolio. We expect this capital recycling activity to be a meaningful contributor to earnings growth over the course of 2026 and beyond. The Modiv transaction is a tangible demonstration of that approach.

We identified a high quality portfolio of industrial net lease assets that we believe will enhance the earnings power and long-term durability of our platform, and we structured a transaction that is expected to be immediately accretive, leverage neutral, and requires no external capital. We look forward to building on the strong foundation Modiv has established as part of the combined GNL platform. Before taking your questions, I'd like to note that subsequent to the first quarter, two members of our board, Sue Perrotty and Governor Rendell, announced their intention to retire following the 2026 annual meeting of stockholders. We thank Sue and the Governor for their years of dedicated service and meaningful contributions to GNL and remain confident that our board's composition is well-calibrated to provide effective oversight and support efficient decision-making. We're available to answer any questions you may have after the call.

Operator, please open the line for questions.

Thank you. We'll now be conducting a question-and-answer session. I you would like to ask question please press star one on your telephone keypad a confirmation tone will indicate you line is on the question queue. You may press star two if you like to remove your question from the queue all participant using speaker equipment you may necessarily pickup handset before pressing the star key. One moment as we pause for the question. Our first question comes from the line of Mitch Germain with Citizens. Please proceed with your question.

Good morning, Mitch.

Good morning. Thanks for taking my question, and congrats on the Modiv deal.

Thank you.

Starting with Modiv, Mike, our 40 assets, I think about 20 year so percent of them reside outside of the industrial sector. I'm curious, are there any potential candidates for sale across that portfolio?

First of all, great question. Thank you. Yes, there is. Our primary focus is on retaining the industrial assets. Modiv does have a few very high quality assets that are outside of what we would consider industrial. We will, at the right time, and working with Modiv, look to dispose of those assets, but very quickly after closing. It won't be many. One of them is on the larger side. It will have some meaningful impact, and I think that it will also have just an overall value as we evaluate the acquisition as well.

Got you. Lower cap rate versus what you're buying it at. Okay. Can I just talk a little bit about dispositions that either were completed or plan to be completed? It seems like activity is somewhat across, you know, each sector. We saw a change in number of assets across industrial, retail, and office. Maybe just talk about what some of the characteristics were. I think you mentioned it, a vacant office, a GSA leased office. Maybe some of the characteristics of some of the other properties that were sold would be helpful.

Okay. As we talked about last quarter, we were going to be switching to more of a strategic disposition strategy. Where we had opportunity to dispose of some assets that maybe weren't just in the office portfolio, but we did so at very aggressive cap rates. You know, that's an ongoing part of our strategy. We are intentionally looking at growth and adding the high quality portfolio of Modiv is a big statement of that. We will continue to execute opportunistically. You know, as a 800+ property portfolio, it's not uncommon for people to call us when they see an asset that we own that they have an interest in.

We always take the call, we always negotiate the deal, and then we decide, do we have an opportunity to redeploy those proceeds in a more creative way? We're very, I think, thoughtful in not wanting to sell what is significant and core to the overall portfolio. I can give you an example. You know, we sold a bank branch in the quarter at a 6.2% cap rate. The buyer wanted to own it, and at that cap rate, we are a happy seller. Again, those are the type of opportunistic dispositions in addition to what we're gonna continue to do, evaluating the opportunities to reduce office.

Got you. Last one for me.

Mitch, if I can just add one thing to that, you know, we've been talking for a good part of 2025 about an asset that we had under contract to sell. It was an office property on the West Coast. We completed the sale in the quarter, and we sold it vacant, but we sold it for just about what we paid for it when we initially owned the property. In addition to that, it does remove about $1 million of NOI carry. Again, you know, we're really looking at everything in a very deep analytical way. Not only do we value getting the proceeds from the disposition, but that NOI, removing that drag to NOI, of course, is extremely valuable.

Gotcha. Last one for me. When you're considering some of these office dispositions, in particular, you know, about half the portfolio resides outside the U.S. I'm curious, you know, what sort of demand you're seeing across Europe for office. Obviously we're seeing improving fundamentals here in the U.S. Lenders are a bit more prone to lend in that sector today than they were previously. Are you seeing, you know, sort of similar trends emerging, you know, across Europe? Does that give you an opportunity to maybe start culling some of those assets as well?

As you probably know, Mitch, we're about a little more than 25% Europe and U.K. About half of the NOI comes from office. What we've been seeing in the office market overseas is a lot of redevelopment into mixed use residential as well. If a tenant is not renewing, there's a lot of redevelopment going on. The market's very strong. We're very active, and I think as we move through 2026, you'll hear more updates from us on certain assets that will be positive to the portfolio.

Thank you.

Thanks, Mitch.

Thank you. Our next question comes from the line of Upal Rana with KeyBanc Capital Markets. Please proceed with your question.

Good morning, Upal.

Good morning. You know, Mike, on the Modiv transaction, maybe you could walk us through the cap rate there relative to the blended cost of capital that you'll be using and then the resulting investment spreads there. Also you mentioned selling a few of those assets already once you're closed. Any other opportunities within that portfolio that could potentially drive the yield higher?

I'm not able at this time to talk cap rate specifics. That'll come out as we get further along. We're working really closely with Modiv, who's just been a great partner in this transaction that, you know, they'll be putting out their proxy, and, you know, it'll have all those details in it, as you'll understand. What I would say is that there are a lot of opportunities, some of which were already in the works on the Modiv side that will transfer to us to continue both from a origination pipeline standpoint, a lease renewal, and also some work that they were doing on dispositions.

You know, I think that they were operating their portfolio at a very high level, maximizing the performance of their portfolio, et cetera. It's gonna be very exciting for us to integrate that into our portfolio and continue the work that they've been doing. You know, we've talked about the roughly $6 million of G&A savings. You know, I think that when we close on that, we'll probably be able to squeeze more out of that. I don't know the exact number yet. We're continuing to evaluate that. There's just a lot of upside as we've disclosed in our press release. Then the, you know, the portfolio itself is performing at a very stable level.

There's not a lot of things that we would have to do to achieve these stated goals. You know, I'm looking forward to closing as early in the year as we can. We're targeting third quarter. If, you know, if we can do it early in the third quarter, You know, the earlier, the better, so that we can start to see the benefits to the portfolio. We'll, you know, we'll disclose our plans for the few assets that we're evaluating for disposition. I also wanna say, just in case we have any Modiv investors on the line listening to the call today, you know, we're very excited to have them join the GNL investor community.

They've been great shareholders for Modiv, and we look forward to welcoming them into the GNL family. You know, it's just a great opportunity for all of us.

Great. Thank you. Thank you for that. Maybe, you know, could you talk about what you're seeing in the market for future acquisitions? You know, you've had talked about a bit on your prepared remarks already, but maybe you could walk through your strategy on selecting which properties or portfolios to acquire and how you're thinking about your leverage and industry exposure when you make that consideration.

Sure. Thank you. Well, first of all, you know, I think us announcing a roughly $550 million acquisition in the first quarter, probably wasn't expected by the market, and it really gets us excited about what we can do in 2026. It was a very opportunistic situation. It really penciled out well. You know, it's something that is gonna pay dividends for a long time in the GNL portfolio. I can't tell you that there'll be other large portfolio acquisitions in 2026. Obviously, we take things as they come, and we look to how we can best use our capital, and how we can grow earnings, et cetera.

I would tell you what we are looking at as we're developing a review of the market and a potential pipeline, is we really are focusing on the industrial side of the business. We are also seeing some retail type acquisition potential. Not as much as we've seen in the past. I think the markets are a little bit in flux. You know, we're looking at everything not from just dollars spent acquiring properties, but meaningful opportunity for accretion in the portfolio from an earnings standpoint. As far as your question about debt, you know, we continue to think that that is one of the most important things that we will continue to work on. Chris reaffirmed our 2026 guidance of 6.5%-6.9%.

We're very excited that the Modiv transaction is leverage neutral in how we were able to structure it. You know, the additional opportunity to grow the EBITDA side of the formula is one of the things that I'm very excited about. Nothing has changed from what we have communicated to the market. We will continue to drive that important metric further down.

Okay, great. Thank you so much.

Thank you.

Thank you. Our next question comes from the line of Jay Kornreich with Cantor Fitzgerald. Please proceed with your question.

Good morning, Jay.

Yeah. Thanks so much. Good morning. I guess a little bit following up on that last question, you know, thinking bigger picture about the MDV merger, I guess, I wonder what that could signal for your strategy going forward. You know, you recently completed the robust disposition program, I'm wondering if this merger signals maybe a more re-return to growth for the company beyond just recycling out of office assets.

My short answer is yes, it does. I said in our last earnings call that that was an important goal of ours, that the disposition program was extremely successful. It achieved a lot of our important goals, primarily lowering net debt to EBITDA in a meaningful way and in a relatively quickly way. The fact that we have the opportunity with the Modiv portfolio to move forward in this leverage neutral way, but still have a positive increase to earnings, I think does give you some insight into how we're thinking about things. Again, as I answered in the last question, it's not just about dollars out the door and how much you can buy in a year. It's about what is the impact of those acquisitions long-term on the portfolio and on earnings.

you know, we're very excited about the fact that the WALT of the Modiv portfolio at 15 years extends the WALT of GNL by almost 1 full year. Takes us out to just under 7 years. The 2.5% annual escalator that their portfolio brings to us is also meaningful. And, you know, as that 15-year WALT continues, and we see the NOI in that portfolio growing at that 2.5%, it's very meaningful, as we all know. you know, one other thing that, you know, we are really focused on is the G&A reduction and how we can better operate this larger portfolio. We decreased G&A expense by 25% year-over-year. We continue to focus on that.

That 25% represents a $16 million annual savings, and that's very important, obviously. You know, you wanna grow earnings and you want to reduce expenses. That's the formula for the ultimate success. We look at both sides of that equation.

Thanks. Appreciate all that commentary. Just one more from me. You know, you highlighted in-office asset sale and capital recycling into an industrial asset at a 100 basis point cap rate premium. I'm wondering if you feel this type of accretive capital redeployment out of office is repeatable as you lower office exposure, and if there are any, I guess, timeline goals for where you wanna get office exposure overall down to.

I don't know that we can consistently, every time, hit that 100 basis point type spread, but that is certainly the goal. We feel that we have very high-quality office assets, net lease. About 80% of our portfolio is investment grade, as you know. As we look to lower our exposure to office, we certainly think that we should be able to sell them at a fair value. You know, we talked this quarter about the GSA asset at a 7.2% cap rate. I think that, you know, as we look at the rest of the portfolio opportunity, we see it in that range. I've always talked about our office, you know, being worth, you know, in a 7%-8% cap rate range in our minds.

We never wanted to just package it all up and sell at any price because it's performing very well. For us, you know, as we look to reduce our exposure, it's important to us that we find fair value for this portfolio. Because it continues to perform, we will take a disciplined and strategic approach to how we reduce our exposure. We haven't said anything specific about target allocation. As we finished this quarter, we're about 24%. We will continue to drive it down. What we're most excited about is we are now, with the Modiv acquisition, going to be 75% retail and industrial, which is important. Over 50% of that is on the industrial side.

We will be a predominantly net lease industrial portfolio, with long duration leases and really high-quality tenants.

Great. Thanks for all that. That's it for me.

Thank you, Jay.

Thank you. Once again, as a reminder, if you would like to ask a question, please press star one on your telephone keypad. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our next question comes from the line of Craig Kucera with Lucid Capital Markets. Please proceed with your question.

Hi, Craig.

Yeah. Good, good morning. You know, a lot of the Modiv portfolio tenants are owned by PE firms with manufacturing backgrounds. Does the acquisition potentially open up any new potential relationships for you for future growth, or are you already pretty familiar with most of them?

It always enhances relationships, some of which we already have, some of which we're happy to get to know and develop further. It's one of the things that Aaron Halfacre and I continue to talk about and, you know, making those introductions and, you know, there may be ongoing benefit from those relationships for sure.

Got it. Changing gears, I mean, just given the stock price, it seems that selling assets and buying back stock still makes sense. You know, I think you're about halfway through that $300 million authorization. Should we consider that as sort of a consistent portion of your business model for the remainder of the year as far as acquiring, call it $30 million-$40 million a quarter?

Well, you are right that we're about halfway through that. We've bought back about $158 million since we announced, the average buyback price was $8.05. It is another tool in the toolbox that we will continue to evaluate. You know, as we look at stock buyback, as we look at reducing the net debt to EBITDA, as we look at acquisitions, those are all three very important things to us and tools that I think we've shown we can use effectively, and we'll continue to evaluate them. We have not given any forward statements on how we will and at what level use the buyback, it's something that we're very happy to have in place and something that we do find good use for.

Got it. You know, looking to your lease expirations during the rest of the year, are there any known large move-outs during the remainder of 2026?

Craig, we have If I'm remembering correctly, and Ori will correct me if I'm wrong, he's in my office with me. I think we have about 6% lease rollover in 2026.

4.4%.

I was high. 4.4% in 2026. We don't have any material rollovers in 26. We continue to engage with tenants. Again, I stick to this publicly disclosed as I answer these questions. We have not given any specifics on move-outs. We continue to think that there are opportunities to either renew the existing tenants or retenant. If we don't feel that that is an opportunity, we will be marketing an asset well in advance of expiration. We feel that we have a very tight handle on the portfolio. We had occupancy overall increase in the quarter. We continue to see that as a positive trend.

You know, a net lease company is typically in that 98%-100% occupancy realm, and I'm happy to say that that's, you know, where we are now and we expect to continue to stay there. I, you know, we always look to push that up as high as we can. The portfolio continues to be well tenanted and the tenants operate out of these properties no matter what the sector. We feel very confident about the remainder of 2026.

Okay. That's helpful. Thank you.

All right. Thanks.

Thank you. We have reached the end of our question-and-answer session. I'd like to turn the call back over to management for any closing remarks.

Great. Well, thank you all for joining us today. I think you heard a lot of exciting news about Global Net Lease. We thought we were well-positioned for 2026 before the announcement of Modiv. We're even more excited to integrate that high-quality portfolio into ours and just continue on with this strategy for growth. We look forward to talking to any of you after today's call if you have questions or we'll be seeing you at conferences. Thanks for your time, and we'll talk soon.

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.