Global Net Lease Dividends Recast As Return Of Capital In 2025

• Global Net Lease, NYSE:GNL, has announced that all dividends paid in 2025 on its common and preferred stock will be treated as return of capital, not ordinary dividends.
• These payments will be classified as nondividend distributions for tax purposes, affecting how and when investors may owe taxes.
• The change applies to every dividend distribution the company makes in the 2025 calendar year.

For investors following Global Net Lease at a share price of $9.41, this tax shift comes after mixed longer term returns, including 45.1% over the past year and declines across the 3 year and 5 year periods. Shorter term performance has been more muted, with a 0.4% decline over 7 days and a 6.7% return over the past month and year to date.

If you hold NYSE:GNL for income, this reclassification can affect your cash flow planning, since return of capital distributions are handled differently from ordinary dividends on tax filings. It is worth reviewing how this could influence your after tax outcomes in 2025 and whether it changes the role GNL plays in your portfolio.

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Is Global Net Lease financially strong enough to weather the next crisis?

Quick Assessment

• ⚖️ Price vs Analyst Target: GNL trades at US$9.41, very close to the US$9.50 analyst target, which suggests limited implied upside from consensus estimates.
• ✅ Simply Wall St Valuation: Simply Wall St currently assesses the shares as trading about 36.5% below its estimated fair value.
• ✅ Recent Momentum: The 30 day return of roughly 6.7% shows recent positive price momentum.

Check out Simply Wall St's in depth valuation analysis for Global Net Lease.

Key Considerations

• 📊 Reclassifying all 2025 dividends as return of capital makes this more of a tax and capital return story than a straightforward income play.
• 📊 Keep an eye on the actual cash distribution rate, any changes to payout levels, and how the share price tracks against both the US$9.50 target and the estimated fair value.
• ⚠️ GNL is currently loss making, and previous analysis flags that its dividend is not well covered by earnings, which may be relevant when judging how sustainable these distributions are.

Dig Deeper

For the full picture including more risks and rewards, check out the complete Global Net Lease analysis.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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