Global Net Lease Inc. shares advanced on Tuesday following the release of its second-quarter earnings, which exceeded market expectations despite a decline in revenue.
The New York-based real estate investment trust (REIT) posted adjusted funds from operations (FFO) of $0.65 per share, surpassing the $0.62 per share consensus estimate compiled by Refinitiv. The company’s revenue, however, fell 5.3% year-over-year to $128.7 million, missing the $131.2 million forecast.
Global Net Lease attributed the revenue decline to lower occupancy in certain property segments and the impact of asset sales completed in recent quarters. The REIT’s portfolio includes commercial properties across the U.S. and Europe, with a focus on industrial and office assets.
Same-store net operating income (NOI) rose 2.1% compared with the prior-year period, signaling stability in core operations. The company also reaffirmed its full-year FFO guidance range of $2.50 to $2.60 per share, citing disciplined capital management and a resilient property portfolio.
Shares of Global Net Lease were up 3.2% at midday, extending gains from Monday’s close. The stock has gained roughly 8% over the past month, outperforming the broader REIT sector, which has traded largely flat during the same period.
Analysts at Jefferies maintained a hold rating on the stock but raised their price target to $24 from $22, citing the company’s improved FFO outlook and potential for further acquisitions in a stabilizing commercial real estate market.
Global Net Lease’s performance reflects broader trends in the REIT sector, where investors are increasingly focusing on companies with strong cash flow generation and low leverage amid economic uncertainty.
