Global Net Lease Inc. (GNL) and The Necessity Retail REIT Inc. (RTL) have entered into a definitive merger agreement, under which GNL will acquire RTL in an all-stock transaction. GNL and RTL have also entered into a definitive agreement that will result in the combined entity becoming internally managed, with the external asset and property management functions currently performed by affiliates of AR Global LLC being internalized.
Based on portfolios as of March 31, 2023, the merger will create the third largest publicly traded net lease REIT with a global presence. The combined internally managed company, which will operate as Global Net Lease, is expected to own and manage over 1,350 properties and have an aggregate real estate asset value of approximately $9.6 billion at the closing of the Transactions.
The transactions were unanimously recommended by the Special Committees of the Boards of directors of both GNL and RTL and approved by the full boards. The deals are expected to close in the third quarter of 2023.
Current GNL Chief Executive Officer James Nelson and current RTL Chief Executive Officer Michael Weil will become co-chief executive officers. Weil will be the sole chief executive officer upon Nelson’s retirement in April 2024. Current GNL Chief Financial Officer Chris Masterson will remain in his position post-closing.