Global Net Lease Acquires Industrial REIT for $535M

Publicly traded real estate investment trust Global Net Lease is set to absorb another firm.

Michael Weil’s GNL agreed to acquire industrial REIT Modiv Industrial in a $535 million all-stock transaction, the companies announced this week. The deal values Modiv’s stock at $18.82 per share, a 17 percent premium on the company’s closing price on Friday.

Under the terms of the agreement, GNL will pay off Modiv’s balance sheet debt and preferred stock. GNL stockholders will own 89 percent of the combined company, while Modiv stockholders will own the other 11 percent.

The deal is expected to close in the third quarter. Both companies’ boards of directors approved the deal, which will still need approval from Modiv stockholders, but not GNL stockholders.

“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,” Weil said in a statement.

Modiv’s net-leased industrial assets sport a weighted average lease term of 15 years with 2.4 percent annual rent increases. It’s not entirely clear how many assets Modiv has in its portfolio.

“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,” Modiv chief executive officer Aaron Halfacre said in a statement, adding that the company drew “substantial interest” and unsolicited offers over the last year.

Modiv went public in 2022 and had a portfolio valued at $597 million at the end of last year, according to Bisnow.

GNL’s portfolio is valued at $5.3 billion, spanning 820 properties. Almost half of the portfolio is made up of industrial properties and distribution centers; 97 percent of its portfolio is leased.

Three months ago, Brookfield Asset Management agreed to acquire industrial REIT Peakstone Realty Trust in a $1.2 billion all-cash deal, paying $21 a share, a 34 percent premium.