Earnings OutlookThe earnings outlook implies 30% downside, as GNL has ~$2B of dispositions in process, including the $1.78B portfolio trade.
Market ChallengesThe pricing on the $1.78B transaction reflects the challenges associated with larger transactions within the current environment, illustrated by a thin bidding pool and higher financing costs.
Valuation ConcernsThe valuation has continued to be depressed, with shares trading at mid-8x 2025E AFFO/share, a steep discount compared to net-lease REITs at mid-13x.