Global Net Lease (GNL) and Modiv Industrial have confirmed a definitive merger agreement where GNL will take over Modiv in an all-stock transaction. The deal has an enterprise value of roughly $535 million and aims to merge Modiv’s industrial assets into GNL’s existing portfolio. This move should provide an immediate 4 per cent boost to GNL’s adjusted funds from operations (AFFO) per share. The boards of both companies have already approved the terms of the merger.

Under the agreement, those holding Modiv common stock or operating partnership units will receive 1.975 newly issued GNL shares for each unit they own. This equals approximately $18.82 per Modiv share based on prices from 1 May 2026. This price reflects a 17 per cent premium over the closing price on that day. Once the deal is finished, GNL stockholders will own 89 per cent of the combined firm. Modiv stockholders will hold the remaining 11 per cent and see their annual dividends rise by about 25 per cent

The acquisition focuses on mission-critical industrial properties across the United States. These assets have a weighted average lease term of 15.0 years and include annual rent increases of 2.4 per cent Michael Weil, CEO of GNL, said: “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.” He noted that the portfolio should integrate well given that 45 per cent of the tenants are investment-grade.

Modiv CEO Aaron Halfacre stated that the company had received several offers but chose GNL for its long-term potential. Halfacre said: “I personally believe this transaction represents the best opportunity for Modiv investors to not only receive compelling value today (even before considering the tax advantages of a stock-for-stock deal), but allows us the opportunity to participate in future upside as continuing investors in GNL.” He confirmed he would roll over his entire position into the new company.

The merger is expected to conclude in the third quarter of 2026. It remains subject to approval from Modiv stockholders. GNL does not need a vote from its own shareholders to move forward. The company plans to use its existing credit facility and cash to pay off Modiv’s debt. This ensures the deal remains leverage-neutral. No changes to the executive leadership or the board at GNL are planned as part of this transaction.