Global Net Lease, Inc. (GNL) and Modiv Industrial, Inc. have entered into a definitive merger agreement under which GNL will acquire Modiv in an all-stock transaction. The companies said the deal carries an enterprise value of approximately $535 million and is expected to add a sizable portfolio of mission-critical industrial assets to GNL’s holdings once completed.
According to the announcement, the Modiv portfolio consists of high-quality industrial properties located across the United States and structured on net-lease terms. GNL noted that these assets are intended to support its long-term strategy by delivering durable and predictable cash flows. The acquisition is positioned as a way to enhance earnings and improve the overall quality of GNL’s portfolio while shifting its exposure toward industrial properties.
GNL plans to address Modiv’s capital structure as part of the transaction. The company stated that it intends to fully repay all of Modiv’s existing balance sheet debt. In addition, GNL expects to redeem Modiv’s preferred stock. These steps are slated to be funded through GNL’s revolving credit facility and available cash on hand, rather than through additional external capital sources described in the announcement.
Michael Weil, CEO of GNL, said the transaction aligns with GNL’s broader corporate objectives following its deleveraging initiative. He described the merger as a way to accelerate GNL’s expected transition to earnings growth in 2026 and to continue reducing the REIT’s office exposure in favor of industrial net-lease assets. Weil highlighted Modiv’s portfolio as being well matched to GNL’s goals for both earnings and portfolio composition.
Aaron Halfacre, president and CEO of Modiv, commented that Modiv has viewed its portfolio as being historically undervalued by the market. He noted that the company has drawn considerable interest from various potential buyers over the past year, including multiple unsolicited approaches. Halfacre said Modiv ultimately selected GNL based on the long-term opportunity presented by the combination rather than simply on near-term pricing.
The announcement also referenced a Modiv-owned cold storage facility in Yuma, AZ as an example property from the portfolio. While specific asset-level and portfolio details were not disclosed, the transaction underscores ongoing investor demand for industrial net-lease real estate in the U.S. and highlights continued public REIT consolidation activity in the sector.
