2024-05-24 12:27:14 ET
Summary
- GNL has a diversified portfolio consisting of single-tenant retail, office, industrial, and multi-tenant retail properties.
- Even though its P/FFO is quite low, and the dividend yield may be tempting for some income-oriented investors, there are more than enough reasons for a negative market sentiment.
- I believe there are plenty of more attractive opportunities in terms of risk-to-reward ratio.
- As each investor's capital is limited, I would rather allocate it to healthy and proven businesses with outstanding metrics, than risk falling into a value trap.
Investment Thesis
Investors may be tempted by Global Net Lease's ( GNL ) high dividend yield amounting to ~12.5% and a low P/FFO multiple of ~8.0x , however...
With weak business metrics, low liquidity, and recent dividend cuts , I don't see GNL fitting into my portfolio (at least yet).
The management has a plan, but there is still some time to pass until investors can see its effects....
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Global Net Lease: Low Liquidity, Dividend Cuts, And Limited Upside Make It Unattractive