Global Net Lease (GNL) to Acquire Modiv Industrial in $535M All-Stock Deal

By Chris Stiles • Monday, May 04 12:06 • Permanent Link

Global Net Lease said it will buy Modiv Industrial in an all-stock deal valued at about $535 million, marking a sharp step-up in scale for the REIT and a shift further toward industrial properties.

The deal gives Modiv holders 1.975 newly issued GNL shares for each Modiv share or operating partnership unit. Based on GNL’s May 1 closing price, that works out to about $18.82 per Modiv share. That price is 17% above Modiv’s May 1 close and 28% above its unaffected share price before its Jan. 20 strategic update.

GNL said the transaction will be immediately 4% accretive to AFFO per share and will not require external capital. The company plans to repay all of Modiv’s existing debt and redeem Modiv’s preferred stock using its revolving credit facility and cash on hand.

The combined company is expected to be owned about 89% by existing GNL stockholders and 11% by Modiv stockholders once the transaction closes. GNL said the deal should close in the third quarter of 2026.

Modiv investors are expected to receive an immediate 25% increase in annual dividend income, paid quarterly after closing, while continuing to receive Modiv’s monthly dividend until the deal closes.

GNL said the acquisition will add a portfolio of industrial net-lease assets with a weighted-average lease term of 15.0 years and 2.4% annual rent escalations. That would lift GNL’s pro forma weighted-average lease term to 7.0 years from 6.1 years as of Dec. 31, 2025.

About 45% of Modiv’s annual base rent comes from investment-grade tenants, according to the company. GNL said the deal will also reduce its office exposure and deepen its industrial concentration.

The companies said the combination should generate about $6 million in annual cost synergies, largely from eliminating duplicate G&A expenses. GNL said the transaction is leverage-neutral and preserves its balance sheet strength.

No changes to GNL’s executive management team or board are expected as a result of the deal. Following these announcements, the company's shares moved 0.42%, and are now trading at a price of $9.51. For the full picture, make sure to review Global Net Lease's 8-K report.

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