Recent Buy: Global Net Lease

In the effort to begin to build the velocity of the dividend snowball for the Exceptional Fund, I have once again made a purchase of a company that was a prominent part of my dividend fund before I liquidated it to pay for graduate school.

I bought 101 shares of Global Net Lease on February 1st at 7.80 per share

Global Net Lease, Inc. (NYSE: GNL) is a real estate investment trust that focuses on acquiring and managing a globally-diversified portfolio of strategically-located commercial real estate properties which are crucial to the success of GNL’s roster of primarily investment grade corporate tenants.

Through the execution of this investment strategy, management has built a best-in-class portfolio of premium commercial real estate assets occupied by high-quality tenants and spanning countries including the U.S., the U.K., Germany, the Netherlands and Finland - creating a portfolio which supports investors by helping provide:
  • Inflation Protection
  • Stable Monthly Dividends
  • Volatility Protection
  • Strong Growth Potential
In this way, GNL seeks to not only help address the needs of corporations and the consumers they serve, but also – and most importantly to management – GNL seeks to help responsibly provide capital protection, regular cash flow and long-term capital appreciation potential to shareholders through a world-class investment portfolio.

In returning to a small position in GNL, I recognize that am going against the general philosophy of building out this fund via dividend aristocrats.  While the foundation to the fund will still be secured by mega-cap, blue chip companies, at this point I do have the ability and desire to take on a very small handful of smaller cap, higher income producing yields, creating a small income stream at a higher rate of return than the utilities and consumer staples that are beginning to form the base of this fund.
With this purchase, I locked in a 9.1% dividend yield, at the current dividend payment of $.71 per year, paid monthly.
Like some of the other triple net REITs that I hold in this fund and in a separate IRA account, the level of risk is satisfactory and acceptable to me due to the underlying value and security of the properties and tenants associated with GNL's portfolio.
That portfolio has been strengthened, as the company recently announced the completion of its previously announced merger with American Realty Capital Global Trust II, Inc. ("Global II"), enhancing GNL's position as a premier global net lease real estate investment trust with a pro-forma enterprise value of approximately $3.1 billion1. The merger was overwhelmingly approved by GNL and Global II shareholders at their respective special shareholder meetings held on December 20, 2016.
This purchase adds approximately $71 to the Exceptional Fund's estimated annual dividend income.
Good luck, and feel free to comment in the field below!


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