2024-05-20 23:17:29 ET
Summary
- Global Net Lease is a real estate investment trust that net leases commercial properties.
- The company's first quarter earnings showed a significant increase in operating income but a concerning increase in interest expenses following a merger.
- GNL's dividend reduction is a step in the right direction, but more is needed to be done to deleverage and make their common shares attractive.
Global Net Lease, Inc. ( GNL ) is a real estate investment trust that net leases commercial properties. Net leases are contracts where the tenant is responsible for a combination of property taxes, insurance, and maintenance. These types of arrangements can be beneficial to landlords as it reduces their capital expenses and makes their free cash flow more predictable. After a recent reduction in the dividend, Global Net Lease currently has a 14% yielding dividend, but I believe the dividend is still on shaky ground and investors should instead consider one of its four preferred shares, yielding above 8.5%, as an income alternative....
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Global Net Lease: Avoid Potential Income Trap With 8.5%+ Yielding Preferred Shares