Global Net LeaseNYSE: GNL

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Global Net Lease (GNL) and EastGroup Properties (EGP). But which of these two stocks presents investors with the better value opportunity right now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Global Net Lease (GNL) and EastGroup Properties (EGP). But which of these two companies is the best option for those looking for undervalued stocks?

A prolonged decrease in the ten-year treasury yield led to extended decreases in capitalization rates for different property types. Despite favorable market conditions, Global Net Lease has not been successful. With the real estate market worsening, there is no indication of improvement. GNL's AFFO per share has dropped by more than 30% in the last two years, leading to dividend reductions.

Global Net Lease dropped sharply and reset the dividend rates and AFFO expectations. Normally, this would be credit positive and boost our value of the preferred shares. We tell you why we think the high yield preferred shares need to be exited.

Global Net Lease Inc. (GNL) Q4 2023 Earnings Call Transcript

High-yield investing is a great way to achieve attractive risk-adjusted returns. However, not all high-yield stocks make for good investments. We share three double-digit yields where the risks are increasingly outweighing the reward potential.

Global Net Lease Inc. has underperformed even our modest expectations over the last two years. The company's previous external management and frequent stock issuances have been major concerns. We look at the newly internalized REIT and weigh the prospects of high yields on its different securities.