Terms

Series

7.25% Series A Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

7.25%

Rate Type

Fixed

Annual Dividend

$1.81

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

September 12, 2022

First Call Price

$25.00

Redemption Notice Period

20 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness, Any Class Or Series Of Equity Securities Ranking Senior To The Series A Preferred Stock; Pari Passu With: All Equity Securities Ranking On Parity With The Series A Preferred Stock; Senior To: Common Stock, All Other Equity Securities Ranking Junior To Series A Preferred Stock

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Prospectus Summary

Global Net Lease, Inc. (NYSE: GNL), a Maryland-chartered net-lease REIT, is offering shares of its 7.25% Series A Cumulative Redeemable Preferred Stock with a $25.00 liquidation preference and a fixed annual dividend of $1.8125 per share ($0.453125 quarterly), paid on January 15, April 15, July 15, and October 15 of each year. The stock is perpetual with no stated maturity, first callable at par on September 12, 2022. Because the dividends are cumulative, any unpaid dividends accrue and must be paid in full before common stockholders receive any distributions — providing a meaningful backstop for income investors. The Series A Preferred Stock ranks senior to GNL's common stock and all junior equity, but is explicitly junior to all existing and future debt obligations of the company. As a holding-company-level REIT issuer, the preferred stock has no direct claim on subsidiary assets ahead of creditors; it is structurally subordinate to the company's substantial secured mortgage debt, term loan, and revolving credit facility (combined debt of roughly $1.5 billion pro forma). There is no bank-style regulatory capital call, but a 'Special Optional Redemption' allows GNL to redeem the preferred within 90 days of a Delisting Event or within 120 days of a Change of Control at $25.00 plus accrued dividends, reducing bondholder-like structural protection in those scenarios. At par, the Series A Preferred Stock yields 7.25% annually. However, because GNL is a REIT, dividends generally do not qualify for the preferential 15%/20% qualified dividend income (QDI) rate or the corporate dividends-received deduction (DRD) — they are taxed as ordinary income for most U.S. investors. Record dates are set 10–30 days before each payment date. Dividend payments can be blocked by covenants in GNL's credit facility (which restricts distributions exceeding 95% of Adjusted FFO) or during a credit-facility default, and the dividend stopper prevents any payment to common or parity-stock holders unless all accrued Series A dividends are current.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If cumulative dividends on the Series A Preferred Stock have not been fully paid for all past periods, the company cannot pay dividends on common stock or any stock junior to or on parity with the Series A Preferred Stock. Dividends can also be blocked by the credit facility covenants or applicable law.

Other Preferreds from Global Net Lease, Inc.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 33 (Weak)