Global Net Lease to Buy Modiv Industrial in $535 Million Deal
Global Net Lease and Modiv Industrial have announced a definitive merger agreement under which Global Net Lease will acquire Modiv in an all-stock transaction valued at approximately $535 million in enterprise value.
The acquisition is expected to significantly strengthen Global Net Lease’s industrial real estate portfolio while further reducing its exposure to office properties. Company executives say the deal aligns with GNL’s long-term strategy of expanding its portfolio of mission-critical industrial assets that generate stable and predictable cash flows.
Once completed, the transaction will combine two net-lease real estate investment trusts (REITs) with complementary portfolios and shared focus areas. The companies believe the merger will create a larger, more diversified platform with improved earnings growth potential and stronger long-term positioning in the industrial real estate sector.
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 at closing.
Based on GNL’s closing share price on May 1, 2026, the consideration equates to approximately $18.82 per Modiv share. The offer represents a 17% premium over Modiv’s closing stock price on the last full trading day before the announcement and a 28% premium compared to Modiv’s unaffected share price prior to its January 2026 strategic update.
Following completion of the merger, existing Global Net Lease shareholders are expected to own approximately 89% of the combined company, while Modiv shareholders are expected to own around 11%.
The transaction has already received approval from the boards of directors of both companies.
According to the companies, the acquisition is expected to be immediately accretive to Global Net Lease’s adjusted funds from operations (AFFO) per share by approximately 4%. AFFO is a key financial metric commonly used in the REIT industry to evaluate operating performance and cash flow generation.
Importantly, GNL stated that the transaction is expected to remain leverage neutral, meaning the acquisition should not materially increase the company’s overall debt burden or weaken its balance sheet.
To complete the transaction, GNL plans to fully repay all of Modiv’s existing debt obligations and redeem Modiv’s preferred stock using cash on hand and borrowings from its revolving credit facility. The company emphasized that no external capital raising will be required to finance the acquisition.
Michael Weil, Chief Executive Officer of Global Net Lease, described the acquisition as a strategic opportunity to accelerate the company’s transition toward stronger earnings growth following its recent deleveraging initiatives.
Weil said the acquisition supports GNL’s ongoing efforts to improve portfolio quality while continuing to reduce exposure to office properties, which have faced challenges in recent years due to changing workplace trends and economic uncertainty.
He noted that Modiv has assembled a high-quality industrial portfolio consisting of mission-critical net-lease properties with durable and predictable cash flows that fit closely with GNL’s investment objectives.
According to Weil, several characteristics of Modiv’s portfolio make it particularly attractive, including a weighted average lease term of approximately 15 years, a tenant base that includes around 45% investment-grade tenants, and annual contractual rent escalations averaging approximately 2.4%.
These features are expected to provide long-term income stability and support future earnings growth for the combined company.
Weil also highlighted that Modiv shareholders will benefit from becoming part of a larger and more liquid public REIT platform with enhanced institutional visibility and potentially greater long-term value creation opportunities.
He stated that GNL’s shares offer an attractive dividend yield and that the increased scale of the combined company should improve trading liquidity and support future growth initiatives.
Rob Kauffman, Non-Executive Chairperson of the GNL Board, also expressed support for the transaction, describing it as a compelling strategic combination that strengthens GNL’s portfolio and accelerates its path toward sustainable long-term earnings growth.
Kauffman said Modiv’s industrial assets represent a strong fit for Global Net Lease’s existing portfolio and that the merger is expected to create meaningful long-term value for shareholders of both companies.
For Modiv, the transaction represents the culmination of a broader strategic review process during which the company reportedly received interest from multiple potential buyers and unsolicited acquisition proposals.
Aaron Halfacre, President and Chief Executive Officer of Modiv, said the company had long believed its portfolio was undervalued by the market relative to the quality of its assets and cash flow profile.
According to Halfacre, GNL distinguished itself from other interested parties because of the long-term opportunities the combined platform could create for Modiv investors.
He stated that the transaction not only delivers immediate value to Modiv shareholders but also allows them to participate in the future upside of the combined company as continuing GNL investors.
One of the key benefits highlighted by Modiv management is the expected increase in dividend income for existing Modiv shareholders. The companies estimate that the transaction will result in approximately a 25% increase in annual dividend income for current Modiv investors once the merger closes.
Modiv will continue paying its existing monthly dividend until the transaction is completed.
Halfacre also emphasized the benefits of joining a larger REIT platform with stronger balance sheet flexibility, improved daily trading liquidity, and greater institutional recognition.
He noted that GNL’s recent operational and financial transformation has strengthened its platform, lowered its cost of capital, and positioned the company for more durable long-term growth.
Halfacre added that he personally plans to roll over his entire investment into Global Net Lease shares following the merger, reflecting his confidence in the future success of the combined organization under GNL leadership.
Thomas H. Nolan Jr., Chairman of Modiv’s Board of Directors, said the company conducted a thorough and disciplined review process before unanimously determining that the merger represents the best available outcome for shareholders.
Nolan described the transaction as a validation of Modiv’s strategy and execution, noting that the company successfully built a high-quality industrial portfolio that naturally complements a larger and better-capitalized REIT platform.
He added that the Board believes the merger positions the combined assets and stakeholders for continued success in the evolving industrial real estate market.
The acquisition reflects broader trends within the REIT industry, where companies are increasingly seeking scale, diversification, and operational efficiency through consolidation. Industrial real estate, in particular, has remained one of the strongest-performing sectors due to continued demand from logistics, manufacturing, e-commerce, and supply chain-related tenants.
By expanding its industrial footprint through the Modiv acquisition, Global Net Lease is positioning itself to benefit from these long-term market dynamics while enhancing portfolio stability and earnings potential.
The companies expect the transaction to strengthen GNL’s competitive position and create a more resilient platform capable of generating sustainable growth and shareholder returns over the long term.
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