Global Net Lease (GNL) announced it has entered into a definitive merger agreement to acquire Modiv Industrial in an all-stock transaction valued at approximately $535 million in enterprise value.
Under the terms of the agreement, Modiv shareholders and operating partnership unit holders will receive 1.975 newly issued shares of GNL common stock or operating partnership units for each Modiv share or unit they own. Based on GNL’s closing share price on May 1, 2026, the transaction values Modiv shares at approximately $18.82 each.
The offer represents a 17% premium to Modiv’s closing share price on May 1, 2026, and a 28% premium to Modiv’s unaffected share price prior to its January 20 strategic update.
Following completion of the transaction, existing GNL shareholders are expected to own approximately 89% of the combined company, while Modiv shareholders are expected to own about 11%.
GNL said the acquisition will strengthen its industrial real estate portfolio and reduce its office exposure through the addition of Modiv’s mission-critical industrial properties across the United States.
The company expects the transaction to be immediately 4% accretive to adjusted funds from operations (AFFO) per share while remaining leverage neutral. GNL also expects to generate approximately $6 million in annual cost synergies through the elimination of duplicative expenses.
Modiv’s portfolio includes industrial net lease assets with a weighted average lease term of 15 years, 45% investment-grade tenant exposure, and average annual rent escalations of 2.4%.
GNL said the acquisition is expected to extend its weighted average lease term from 6.1 years to 7 years on a pro forma basis.
The transaction is expected to close during the third quarter of 2026, subject to customary closing conditions and approval by Modiv shareholders.
BMO Capital Markets is serving as financial advisor to GNL, while Truist Securities is serving as financial advisor to Modiv.
KEY QUOTES:
“We believe this transaction is a compelling opportunity for GNL to expedite our transition to earnings growth in 2026 following the completion of our deleveraging initiative while continuing to reduce our office exposure.”
“Modiv has thoughtfully assembled a high-quality portfolio of industrial net-lease assets that provide durable and predictable cash flows that align well with our objectives of enhancing earnings and long-term portfolio quality.”
“Importantly, we expect the transaction to be immediately accretive to earnings as well as leverage-neutral while further broadening the diversification and depth of our platform.”
Michael Weil, CEO, Global Net Lease
“This is a compelling transaction that we believe strengthens GNL’s portfolio and accelerates our path to long-term earnings growth. Modiv’s high-quality net lease industrial portfolio is an excellent fit for GNL, and we expect this combination will generate meaningful long-term value for stockholders of both companies.”
Rob Kauffman, Non-Executive Chairperson Of The Board, Global Net Lease
“We have long believed that our portfolio’s quality was historically mispriced by the marketplace and that we would be receptive if someone sought to close the value gap sooner than we could.”
“I personally believe this transaction represents the best opportunity for Modiv investors to not only receive compelling value today, but allows us the opportunity to participate in future upside as continuing investors in GNL.”
“Upon closing, this transaction is expected to result in a 25% increase in annual dividend income, paid quarterly, to existing Modiv investors.”
Aaron Halfacre, President And CEO, Modiv Industrial
“After a thorough and disciplined review process, our Board unanimously determined that this transaction represents the best outcome for our stockholders.”
“It is also a clear validation of the strength of our platform and the exceptional execution of our management team, who have built a high-quality portfolio that naturally aligns with a larger, well-capitalized REIT.”
Thomas H. Nolan Jr., Chairman Of The Board, Modiv Industrial
