Terms

Series

Series B Cumulative Redeemable Perpetual Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

6.875%

Rate Type

Fixed

Annual Dividend

$1.72

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

November 26, 2024

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness And Debt Obligations, All Other Non-Equity Claims On The Issuer And Its Assets; Pari Passu With: Series A Cumulative Redeemable Preferred Stock, All Other Equity Securities Ranking On Parity With The Series B Preferred Stock; Senior To: All Common Stock, All Equity Securities Ranking Junior To The Series B Preferred Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

Yes

Prospectus Summary

Global Net Lease, Inc. is issuing up to $170 million of Series B Cumulative Redeemable Perpetual Preferred Stock with a fixed 6.875% annual coupon ($1.71875 per share) payable quarterly on January 15, April 15, July 15, and October 15 (or the next business day). Each share has a $25.00 liquidation preference and par value of $0.01. This is a perpetual preferred stock with no maturity date and no mandatory redemption. As a cumulative preferred, all accrued and unpaid dividends must be paid before any dividends can be paid on junior securities (common and Series A Preferred), even if our board does not authorize or declare them in any given period. The Series B Preferred Stock ranks senior to all common equity and junior equities, on par with the Series A Preferred Stock, and structurally subordinate to all of Global Net Lease's existing and future debt obligations. As a REIT holding company, the issuer's ability to service the preferred dividend depends on cash flows from its operating partnership and property portfolio. All debt—including the $605 million Revolving Credit Facility—ranks ahead of these preferred shares in a liquidation. The issuer's Credit Facility covenants restrict dividend payments generally to 100% of Adjusted FFO (with a one-quarter-per-year exception permitting up to 105%), effectively limiting the issuer's capacity to pay preferred dividends if cash flow deteriorates. The Series B Preferred Stock yields 6.875% at par ($25.00). As dividends from a REIT, they do not qualify for the preferential 15%–20% rates available for qualified dividend income (QDI) to individual shareholders; instead, they are taxed at ordinary income rates (up to 37%), though a 20% pass-through deduction under IRC §199A may apply, resulting in an effective top rate around 29.6%. Corporate holders may claim the dividends-received deduction (DRD) if applicable. Dividends accrue and must be paid before any dividends on the parity Series A Preferred or junior common stock; failure to pay Series B dividends for six or more quarterly periods gives holders voting rights to elect two additional directors. Record dates fall 10–30 days prior to payment dates, as fixed by the board of directors.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

Dividends on junior and parity securities (common stock, Series A Preferred Stock) are blocked unless and until all cumulative accrued and unpaid dividends on the Series B Preferred Stock have been paid or declared and set apart. Additionally, any dividend on Series B Preferred Stock is blocked if prohibited by covenants in the Credit Facility or other debt agreements.

Other Preferreds from Global Net Lease, Inc.

Div Score Breakdown

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