Yahoo Finance Loss-Making Global Net Lease, Inc. (NYSE:GNL) Set To Breakeven
Global Net Lease, Inc. (NYSE:GNL) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Global Net Lease, Inc. (NYSE: GNL) is a publicly traded real estate investment trust listed on the NYSE focused on acquiring a diversified global portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant, mission critical income producing net-leased assets across the United States, Western and Northern Europe. The US$1.3b market-cap company announced a latest loss of US$9.3m on 31 December 2022 for its most recent financial year result. As path to profitability is the topic on Global Net Lease's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See our latest analysis for Global Net Lease
According to the 4 industry analysts covering Global Net Lease, the consensus is that breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of US$1.6m in 2023. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 67% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Global Net Lease given that this is a high-level summary, but, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we would like to bring into light with Global Net Lease is its debt-to-equity ratio of 165%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
There are too many aspects of Global Net Lease to cover in one brief article, but the key fundamentals for the company can all be found in one place – Global Net Lease's company page on Simply Wall St. We've also put together a list of essential factors you should look at:
Valuation: What is Global Net Lease worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Global Net Lease is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Global Net Lease’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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