Global Net Lease Completes $535 Million Merger with Modiv Industrial

Global Net Lease (GNL) has finalized a merger agreement to acquire Modiv Industrial in a transaction valued at $535 million. This strategic move, which prices Modiv’s stock at $18.82 per share, integrates the Denver-based REIT’s 4.3 million square feet of assets into GNL’s expansive, $5.3 billion portfolio. Currently, GNL manages 820 properties totaling 41 million square feet across the United States, Canada and Europe, maintaining a 97% occupancy rate.

The deal is structured to settle the REIT’s preferred stock and balance sheet debt. Upon completion, the ownership of the merged entity will be divided with GNL stockholders holding an 89% stake and Modiv’s stockholders retaining 11%. Additionally, for Modiv’s investors, the merger offers an immediately expected 25% increase in annual dividends and a chance to share in the combined firm’s future growth.

Modiv, which went public in 2022, holds 42 properties across Washington, Florida, California and Minnesota. At the end of last year, its portfolio was valued at $597 million. These net-leased industrial assets feature a 15-year, weighted average lease term and 2.4% annual rent escalations.

“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,” said Aaron Halfacre, president and CEO of Modiv. “Over the past year, Modiv attracted substantial interest from a range of suitors, including multiple unsolicited offers, but GNL distinguished itself through the long-term opportunity this transaction creates.”

Thomas H. Nolan, Jr., chairman of the board of Modiv, added, “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. We are confident this combination positions the assets and stakeholders for continued success.”

For GNL, the acquisition represents a “compelling opportunity” to accelerate its transition toward earnings growth in 2026. CEO, Michael Weil, stated that the merger follows a deleveraging initiative and supports the company’s ongoing strategy to reduce office exposure. GNL’s current holdings are already heavily weighted toward industrial properties and distribution centers, which account for nearly half of its portfolio. Weil highlighted that Modiv’s mission-critical industrial assets would provide the durable, predictable cash flow necessary to meet GNL’s long-term objectives.