# EDGAR Filing Document

**Accession Number:** 0001526113
**File Stem:** 0001526113-25-000022
**Filing Date:** 2025-8
**Character Count:** 609216
**Document Hash:** c12e967074973a330bd7b49d4673741e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001526113-25-000022.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0001526113-25-000022

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 98

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250807

**DATE AS OF CHANGE**: 20250807

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Global Net Lease, Inc.
- **CENTRAL INDEX KEY:** 0001526113
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 452771978
- **STATE OF INCORPORATION:** NY
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37390
- **FILM NUMBER:** 251194368

**BUSINESS ADDRESS:**
- **STREET 1:** 650 FIFTH AVE
- **STREET 2:** 30TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10019
- **BUSINESS PHONE:** (332) 265-2020

**MAIL ADDRESS:**
- **STREET 1:** 650 FIFTH AVE
- **STREET 2:** 30TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10019

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** American Realty Capital Global Trust, Inc.
- **DATE OF NAME CHANGE:** 20120810

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** American Realty Capital Global Daily Net Asset Value Trust, Inc.
- **DATE OF NAME CHANGE:** 20111014

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** American Realty Capital Global Trust, Inc.
- **DATE OF NAME CHANGE:** 20110719

?xml version='1.0' encoding='ASCII'? gnl-20250630

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q** 

(Mark One)

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended June 30, 2025** 

---

| | |
|:---|:---|
| | **OR** |
| ☐ | **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |

---

For the transition period from _________ to __________

Commission File Number: 001-37390

![image3a31.gif](gnl-20250630_g1.gif)

**Global Net Lease, Inc.** 

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Maryland** | **45-2771978** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**650 Fifth Ave., 30th Floor, New York, NY&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10019** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;______________________________________________________________________________ _____________________________________________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Address of principal executive offices) (Zip Code)

**(332) 265-2020** 

(Registrant's telephone number, including area code)

---

| | | |
|:---|:---|:---|
| Securities registered pursuant to section 12(b) of the Act: | Securities registered pursuant to section 12(b) of the Act: | Securities registered pursuant to section 12(b) of the Act: |
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $0.01 par value per share | GNL | New York Stock Exchange |
| 7.25% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share | GNL PR A | New York Stock Exchange |
| 6.875% Series B Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share | GNL PR B | New York Stock Exchange |
| 7.50% Series D Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share | GNL PR D | New York Stock Exchange |
| 7.375% Series E Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share | GNL PR E | New York Stock Exchange |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of August 1, 2025, the registrant had 220,968,252 shares of common stock outstanding.

------

**GLOBAL NET LEASE, INC.**

 **INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| | Page |
| **<u>[PART I - FINANCIAL INFORMATION](#i7565b63625e84b32a751be2cb251dad1_10)</u>**  |  |
| <u>[Item 1. Financial Statements](#i7565b63625e84b32a751be2cb251dad1_10)</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Balance Sheets as of](#i7565b63625e84b32a751be2cb251dad1_13)[J](#i7565b63625e84b32a751be2cb251dad1_13)[une 30](#i7565b63625e84b32a751be2cb251dad1_13)[, 2025](#i7565b63625e84b32a751be2cb251dad1_13)[(Unaudited)](#i7565b63625e84b32a751be2cb251dad1_13)[and December 31, 20](#i7565b63625e84b32a751be2cb251dad1_13)[24](#i7565b63625e84b32a751be2cb251dad1_13)[(Unaud](#i7565b63625e84b32a751be2cb251dad1_13)[i](#i7565b63625e84b32a751be2cb251dad1_13)[ted)](#i7565b63625e84b32a751be2cb251dad1_13)</u> | <u>[2](#i7565b63625e84b32a751be2cb251dad1_13)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Operations for the Three](#i7565b63625e84b32a751be2cb251dad1_16)[and Six](#i7565b63625e84b32a751be2cb251dad1_16)[Months Ended](#i7565b63625e84b32a751be2cb251dad1_16)[June](#i7565b63625e84b32a751be2cb251dad1_16)[30](#i7565b63625e84b32a751be2cb251dad1_16)[, 2025 and 2024 (Unaudited)](#i7565b63625e84b32a751be2cb251dad1_16)</u> | <u>[3](#i7565b63625e84b32a751be2cb251dad1_16)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Comprehensive](#i7565b63625e84b32a751be2cb251dad1_19)[Income (](#i7565b63625e84b32a751be2cb251dad1_19)[Loss](#i7565b63625e84b32a751be2cb251dad1_19)[)](#i7565b63625e84b32a751be2cb251dad1_19)[for the Three](#i7565b63625e84b32a751be2cb251dad1_19)[and S](#i7565b63625e84b32a751be2cb251dad1_19)[ix](#i7565b63625e84b32a751be2cb251dad1_19)[Months Ended](#i7565b63625e84b32a751be2cb251dad1_19)[June](#i7565b63625e84b32a751be2cb251dad1_19)[30](#i7565b63625e84b32a751be2cb251dad1_19)[, 2025 and 2024 (Unaudited)](#i7565b63625e84b32a751be2cb251dad1_19)</u> | <u>[4](#i7565b63625e84b32a751be2cb251dad1_19)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Changes in Equity for the Three](#i7565b63625e84b32a751be2cb251dad1_22)[and Six](#i7565b63625e84b32a751be2cb251dad1_22)[Months Ended](#i7565b63625e84b32a751be2cb251dad1_22)[J](#i7565b63625e84b32a751be2cb251dad1_22)[u](#i7565b63625e84b32a751be2cb251dad1_22)[ne](#i7565b63625e84b32a751be2cb251dad1_22)[30](#i7565b63625e84b32a751be2cb251dad1_22)[, 2025](#i7565b63625e84b32a751be2cb251dad1_22)[(Unaudited)](#i7565b63625e84b32a751be2cb251dad1_22)</u> | <u>[5](#i7565b63625e84b32a751be2cb251dad1_22)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Changes in Equity for the Three and](#i7565b63625e84b32a751be2cb251dad1_25)[Six](#i7565b63625e84b32a751be2cb251dad1_25)[Months Ended](#i7565b63625e84b32a751be2cb251dad1_25)[J](#i7565b63625e84b32a751be2cb251dad1_25)[u](#i7565b63625e84b32a751be2cb251dad1_25)[ne](#i7565b63625e84b32a751be2cb251dad1_25)[30, 202](#i7565b63625e84b32a751be2cb251dad1_25)[4](#i7565b63625e84b32a751be2cb251dad1_25)[(Unaudited)](#i7565b63625e84b32a751be2cb251dad1_25)</u> | <u>[7](#i7565b63625e84b32a751be2cb251dad1_25)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Cash Flows for the](#i7565b63625e84b32a751be2cb251dad1_28)[Six](#i7565b63625e84b32a751be2cb251dad1_28)[Months Ended](#i7565b63625e84b32a751be2cb251dad1_28)[June](#i7565b63625e84b32a751be2cb251dad1_28)[30](#i7565b63625e84b32a751be2cb251dad1_28)[, 2025 and 2024 (Unaudited)](#i7565b63625e84b32a751be2cb251dad1_28)</u> | <u>[9](#i7565b63625e84b32a751be2cb251dad1_28)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Notes to Consolidated Financial Statements (Unaudited)](#i7565b63625e84b32a751be2cb251dad1_31)</u> | <u>[11](#i7565b63625e84b32a751be2cb251dad1_31)</u> |
| <u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](#i7565b63625e84b32a751be2cb251dad1_91)</u> | <u>[43](#i7565b63625e84b32a751be2cb251dad1_91)</u> |
| <u>[Item 3. Quantitative and Qualitative Disclosures About Market Risk](#i7565b63625e84b32a751be2cb251dad1_139)</u> | <u>[62](#i7565b63625e84b32a751be2cb251dad1_139)</u> |
| <u>[Item 4. Controls and Procedures](#i7565b63625e84b32a751be2cb251dad1_142)</u> | <u>[62](#i7565b63625e84b32a751be2cb251dad1_142)</u> |
| **<u>[PART II - OTHER INFORMATION](#i7565b63625e84b32a751be2cb251dad1_145)</u>** |  |
| <u>[Item 1. Legal Proceedings](#i7565b63625e84b32a751be2cb251dad1_148)</u> | <u>[63](#i7565b63625e84b32a751be2cb251dad1_148)</u> |
| <u>[Item 1A. Risk Factors](#i7565b63625e84b32a751be2cb251dad1_151)</u> | <u>[63](#i7565b63625e84b32a751be2cb251dad1_151)</u> |
| <u>[Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](#i7565b63625e84b32a751be2cb251dad1_154)</u> | <u>[63](#i7565b63625e84b32a751be2cb251dad1_154)</u> |
| <u>[Item 3. Defaults Upon Senior Securities](#i7565b63625e84b32a751be2cb251dad1_157)</u> | <u>[63](#i7565b63625e84b32a751be2cb251dad1_157)</u> |
| <u>[Item 4. Mine Safety Disclosures](#i7565b63625e84b32a751be2cb251dad1_160)</u> | <u>[63](#i7565b63625e84b32a751be2cb251dad1_160)</u> |
| <u>[Item 5. Other Information](#i7565b63625e84b32a751be2cb251dad1_163)</u> | <u>[63](#i7565b63625e84b32a751be2cb251dad1_163)</u> |
| <u>[Item 6. Exhibits](#i7565b63625e84b32a751be2cb251dad1_166)</u> | <u>[63](#i7565b63625e84b32a751be2cb251dad1_166)</u> |
| <u>[Signatures](#i7565b63625e84b32a751be2cb251dad1_172)</u> | <u>[65](#i7565b63625e84b32a751be2cb251dad1_172)</u> |

---

------

**PART I — FINANCIAL INFORMATION**

**Item 1. Financial Statements.**

**GLOBAL NET LEASE, INC.**

**CONSOLIDATED BALANCE SHEETS**

**(In thousands, except share and per share data)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **June 30,<br>2025** | **December 31,<br>2024** |
| **ASSETS** | | |
| Real estate investments, at cost (<u>[Note 4](#i7565b63625e84b32a751be2cb251dad1_43)</u>): |  |  |
| &nbsp;&nbsp;&nbsp;Land | $759854 | $802317 |
| &nbsp;&nbsp;&nbsp;Buildings, fixtures and improvements | 4028243 | 4120664 |
| &nbsp;&nbsp;&nbsp;Construction in progress | 1580 | 3364 |
| &nbsp;&nbsp;&nbsp;Acquired intangible lease assets | 633647 | 695597 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total real estate investments, at cost | 5423324 | 5621942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less accumulated depreciation and amortization | (1056957) | (999909) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total real estate investments, net | 4366367 | 4622033 |
| Real estate assets held for sale (<u>[Note 4](#i7565b63625e84b32a751be2cb251dad1_43)</u>) | 37496 | 17406 |
| Assets related to discontinued operations (<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>) | 2337 | 1816131 |
| Cash and cash equivalents | 144809 | 159698 |
| Restricted cash | 37339 | 64510 |
| Derivative assets, at fair value (<u>[Note 9](#i7565b63625e84b32a751be2cb251dad1_58)</u>) |  | 2471 |
| Unbilled straight-line rent | 88368 | 89804 |
| Operating lease right-of-use asset (<u>[Note 13](#i7565b63625e84b32a751be2cb251dad1_73)</u>) | 70761 | 66163 |
| Prepaid expenses and other assets | 89293 | 51504 |
| Multi-tenant disposition receivable, net (<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>) | 90214 |  |
| Deferred tax assets | 4906 | 4866 |
| Goodwill | 46009 | 51370 |
| Deferred financing costs, net | 7017 | 9808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp; Total Assets** | $4984916 | $6955764 |
| **LIABILITIES AND EQUITY** |  |  |
| Mortgage notes payable, net (<u>[Note 5](#i7565b63625e84b32a751be2cb251dad1_46)</u>) | $1312718 | $1768608 |
| Revolving credit facility (<u>[Note 6](#i7565b63625e84b32a751be2cb251dad1_49)</u>) | 740682 | 1390292 |
| Senior notes, net <u>[(Note 7](#i7565b63625e84b32a751be2cb251dad1_52)</u>) | 916864 | 906101 |
| Acquired intangible lease liabilities, net | 19863 | 24353 |
| Derivative liabilities, at fair value (<u>[Note 9](#i7565b63625e84b32a751be2cb251dad1_58)</u>) | 10788 | 3719 |
| Accounts payable and accrued expenses | 45878 | 52878 |
| Operating lease liability (<u>[Note 13](#i7565b63625e84b32a751be2cb251dad1_73)</u>) | 42244 | 40080 |
| Prepaid rent | 36625 | 13571 |
| Deferred tax liability | 7083 | 5477 |
| Dividends payable | 11943 | 11909 |
| Real estate liabilities held for sale <u>[(Note 4](#i7565b63625e84b32a751be2cb251dad1_43)</u>) | 379 |  |
| Liabilities related to discontinued operations (<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>) | 7470 | 551818 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities** | 3152537 | 4768806 |
| Commitments and contingencies (<u>[Note 11](#i7565b63625e84b32a751be2cb251dad1_67)</u>) |  |  |
| Stockholders' Equity (<u>[Note 10](#i7565b63625e84b32a751be2cb251dad1_61)</u>): |  |  |
| 7.25% Series A cumulative redeemable preferred stock, $0.01 par value, liquidation preference $25.00 per share, 9,959,650 shares authorized, 6,799,467 shares issued and outstanding as of June 30, 2025 and December 31, 2024 | 68 | 68 |
| 6.875% Series B cumulative redeemable perpetual preferred stock, $0.01 par value, liquidation preference $25.00 per share, 11,450,000 shares authorized, 4,695,887 shares issued and outstanding as of June 30, 2025 and December 31, 2024 | 47 | 47 |
| 7.500% Series D cumulative redeemable perpetual preferred stock, $0.01 par value, liquidation preference $25.00 per share, 7,933,711 shares authorized, issued and outstanding as of June 30, 2025 and December 31, 2024 | 79 | 79 |
| 7.375% Series E cumulative redeemable perpetual preferred stock, $0.01 par value, liquidation preference $25.00 per share, 4,595,175 shares authorized, issued and outstanding as of June 30, 2025 and December 31, 2024 | 46 | 46 |
| Common Stock, $0.01 par value, 400,000,000 and 250,000,000 shares authorized, 221,224,341 and 231,051,139 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | 3541 | 3640 |
| Additional paid-in capital | 4288338 | 4359264 |
| Accumulated other comprehensive income (loss) | 33452 | (25844) |
| Accumulated deficit | (2493192) | (2150342) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Stockholders' Equity** | 1832379 | 2186958 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities and Stockholders' Equity** | $4984916 | $6955764 |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

------

**GLOBAL NET LEASE, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(In thousands, except share and per share data)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Revenue from tenants** | $124905 | $145464 | $257320 | $293344 |
| **Expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Property operating | 12018 | 15934 | 25971 | 33730 |
| &nbsp;&nbsp;Impairment charges  | 9812 | 27402 | 70127 | 31729 |
| &nbsp;&nbsp;&nbsp;Merger, transaction and other costs | 2002 | 1576 | 3581 | 2329 |
| &nbsp;&nbsp;General and administrative | 11339 | 13746 | 27542 | 28409 |
| &nbsp;&nbsp;&nbsp;Equity-based compensation | 3338 | 2340 | 6431 | 4313 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 45636 | 56654 | 101970 | 113826 |
| &nbsp;&nbsp;&nbsp;Goodwill impairment |  |  | 7134 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 84145 | 117652 | 242756 | 214336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income before gain (loss) on dispositions of real estate investments | 40760 | 27812 | 14564 | 79008 |
| &nbsp;&nbsp;&nbsp;Gain (loss) on dispositions of real estate investments | 1537 | 34114 | (141) | 39982 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 42297 | 61926 | 14423 | 118990 |
| **Other income (expense):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (53348) | (71984) | (106785) | (136577) |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment and modification of debt | (4348) | (13089) | (4766) | (13147) |
| &nbsp;&nbsp;&nbsp;(Loss) gain on derivative instruments | (8823) | 509 | (12679) | 2097 |
| &nbsp;&nbsp;&nbsp;Unrealized (losses) gains on undesignated foreign currency advances and other hedge ineffectiveness | (6324) | 300 | (12675) | 1332 |
| &nbsp;&nbsp;&nbsp;Other income | 1683 | 345 | 1731 | 305 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (71160) | (83919) | (135174) | (145990) |
| Net loss before income tax | (28863) | (21993) | (120751) | (27000) |
| Income tax (expense) benefit | (2995) | 250 | (6275) | (2108) |
| Loss from continuing operations | (31858) | (21743) | (127026) | (29108) |
| Income (loss) from discontinued operations | 7715 | (13921) | (86496) | (30307) |
| **Net loss** | (24143) | (35664) | (213522) | (59415) |
| Preferred stock dividends | (10936) | (10936) | (21872) | (21872) |
| **Net loss attributable to common stockholders** | $(35079) | $(46600) | $(235394) | $(81287) |
| **Basic and Diluted Loss Per Share:** |  |  |  |  |
| Net loss per share from continuing operations | $(0.19) | $(0.14) | $(0.66) | $(0.22) |
| Net loss per share from discontinued operations | 0.03 | (0.06) | (0.38) | (0.13) |
| Net loss per share attributable to common stockholders — Basic and Diluted | $(0.16) | $(0.20) | $(1.04) | $(0.35) |
| **Weighted average common shares outstanding:** |  |  |  |  |
| Weighted average shares outstanding — Basic and Diluted | 222960030 | 230380574 | 226591693 | 230350148 |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

------

**GLOBAL NET LEASE, INC.**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)** 

**(In thousands)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net loss | $(24143) | $(35664) | $(213522) | $(59415) |
| Other comprehensive income (loss) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cumulative translation adjustment | 50466 | 2472 | 58744 | 1498 |
| &nbsp;&nbsp;&nbsp;Designated derivatives, fair value adjustments | (1259) | 2539 | 552 | 5765 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income | 49207 | 5011 | 59296 | 7263 |
| Comprehensive income (loss) | 25064 | (30653) | (154226) | (52152) |
| Preferred Stock dividends | (10936) | (10936) | (21872) | (21872) |
| Comprehensive income (loss) attributable to common stockholders | $14128 | $(41589) | $(176098) | $(74024) |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

------

**GLOBAL NET LEASE, INC.**

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**

**(In thousands, except share data)**

**(Unaudited)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Series A Preferred Stock** | **Series A Preferred Stock** | **Series B Preferred Stock** | **Series B Preferred Stock** | **Series D Preferred Stock** | **Series D Preferred Stock** | **Series E Preferred Stock** | **Series E Preferred Stock** | **Common Stock** | **Common Stock** | | | | |
| | **Number of Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** | **Number of Shares** | **Par Value** |<br>**Additional Paid-in<br>Capital** |<br>**Accumulated Other Comprehensive Loss** |<br>**Accumulated Deficit** |<br>**Total Stockholders' Equity** |
| **Balance, December 31, 2024** | 6799467 | $68 | 4695887 | $47 | 7933711 | $79 | 4595175 | $46 | 231051139 | $3640 | $4359264 | $(25844) | $(2150342) | $2186958 |
| Common stock repurchases, net |  |  |  |  |  |  |  |  | (10072062) | (101) | (75872) |  |  | (75973) |
| Dividends declared: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Stock, $0.465 per share |  |  |  |  |  |  |  |  |  |  |  |  | (107456) | (107456) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series A Preferred Stock, $0.90 per share |  |  |  |  |  |  |  |  |  |  |  |  | (6162) | (6162) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series B Preferred Stock, $0.86 per share |  |  |  |  |  |  |  |  |  |  |  |  | (4036) | (4036) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series D Preferred Stock, $0.94 per share |  |  |  |  |  |  |  |  |  |  |  |  | (7438) | (7438) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series E Preferred Stock, $0.92 per share |  |  |  |  |  |  |  |  |  |  |  |  | (4236) | (4236) |
| Equity-based compensation, net of forfeitures |  |  |  |  |  |  |  |  | 297747 | 3 | 5601 |  |  | 5604 |
| Common stock shares withheld upon vesting of restricted stock |  |  |  |  |  |  |  |  | (52483) | (1) | (655) |  |  | (656) |
| Net loss |  |  |  |  |  |  |  |  |  |  |  |  | (213522) | (213522) |
| Cumulative translation adjustment |  |  |  |  |  |  |  |  |  |  |  | 58744 |  | 58744 |
| Designated derivatives, fair value adjustments |  |  |  |  |  |  |  |  |  |  |  | 552 |  | 552 |
| **Balance, June 30, 2025** | 6799467 | $68 | 4695887 | $47 | 7933711 | $79 | 4595175 | $46 | 221224341 | $3541 | $4288338 | $33452 | $(2493192) | $1832379 |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

------

**GLOBAL NET LEASE, INC.**

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**

**(In thousands, except share data)**

**(Unaudited)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Series A Preferred Stock** | **Series A Preferred Stock** | **Series B Preferred Stock** | **Series B Preferred Stock** | **Series D Preferred Stock** | **Series D Preferred Stock** | **Series E Preferred Stock** | **Series E Preferred Stock** | **Common Stock** | **Common Stock** | | | | |
| | **Number of Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** | **Number of Shares** | **Par Value** |<br>**Additional Paid-in<br>Capital** |<br>**Accumulated Other Comprehensive Income** |<br>**Accumulated Deficit** |<br>**Total Stockholders' Equity** |
| **Balance, March 31, 2025** | 6799467 | $68 | 4695887 | $47 | 7933711 | $79 | 4595175 | $46 | 228730355 | $3617 | $4342134 | $(15755) | $(2414684) | $1915552 |
| Common stock repurchases, net |  |  |  |  |  |  |  |  | (7654620) | (77) | (56479) |  |  | (56556) |
| Dividends declared: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Stock, $0.19 per share |  |  |  |  |  |  |  |  |  |  |  |  | (43429) | (43429) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series A Preferred Stock, $0.45 per share |  |  |  |  |  |  |  |  |  |  |  |  | (3081) | (3081) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series B Preferred Stock, $0.43 per share |  |  |  |  |  |  |  |  |  |  |  |  | (2018) | (2018) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series D Preferred Stock, $0.47 per share |  |  |  |  |  |  |  |  |  |  |  |  | (3719) | (3719) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series E Preferred Stock, $0.46 per share |  |  |  |  |  |  |  |  |  |  |  |  | (2118) | (2118) |
| Equity-based compensation, net of forfeitures |  |  |  |  |  |  |  |  | 201089 | 2 | 3338 |  |  | 3340 |
| Common stock shares withheld upon vesting of restricted stock |  |  |  |  |  |  |  |  | (52483) | (1) | (655) |  |  | (656) |
| Net loss |  |  |  |  |  |  |  |  |  |  |  |  | (24143) | (24143) |
| Cumulative translation adjustment |  |  |  |  |  |  |  |  |  |  |  | 50466 |  | 50466 |
| Designated derivatives, fair value adjustments |  |  |  |  |  |  |  |  |  |  |  | (1259) |  | (1259) |
| **Balance, June 30, 2025** | 6799467 | $68 | 4695887 | $47 | 7933711 | $79 | 4595175 | $46 | 221224341 | $3541 | $4288338 | $33452 | $(2493192) | $1832379 |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

------

**GLOBAL NET LEASE, INC.**

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**

**(In thousands, except share data)**

**(Unaudited)**

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Series A Preferred Stock** | **Series A Preferred Stock** | **Series B Preferred Stock** | **Series B Preferred Stock** | **Series D Preferred Stock** | **Series D Preferred Stock** | **Series E Preferred Stock** | **Series E Preferred Stock** | **Common Stock** | **Common Stock** | | | | | | |
| | **Number of<br>Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** |<br>**Additional Paid-in<br>Capital** |<br>**Accumulated Other Comprehensive (Loss) Income** |<br>**Accumulated Deficit** |<br>**Total Stockholders' Equity** |<br>**Non-controlling interest** |<br>**Total Equity** |
| **Balance, December 31, 2023** | 6799467 | $68 | 4695887 | $47 | 7933711 | $79 | 4595175 | $46 | 230885197 | $3639 | $4350112 | $(14096) | $(1702143) | $2637752 | $1397 | $2639149 |
| Dividends declared: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common Stock, $0.675 per share |  |  |  |  |  |  |  |  |  |  |  |  | (145677) | (145677) |  | (145677) |
| &nbsp;&nbsp;&nbsp;&nbsp; Series A Preferred Stock, $0.90 per share |  |  |  |  |  |  |  |  |  |  |  |  | (6162) | (6162) |  | (6162) |
| &nbsp;&nbsp;&nbsp;&nbsp; Series B Preferred Stock, $0.86 per share |  |  |  |  |  |  |  |  |  |  |  |  | (4036) | (4036) |  | (4036) |
| &nbsp;&nbsp;&nbsp;&nbsp; Series D preferred stock, $0.94 per share |  |  |  |  |  |  |  |  |  |  |  |  | (7438) | (7438) |  | (7438) |
| &nbsp;&nbsp;&nbsp;&nbsp; Series E preferred stock, $0.92 per share |  |  |  |  |  |  |  |  |  |  |  |  | (4236) | (4236) |  | (4236) |
| Equity-based compensation, net of forfeitures |  |  |  |  |  |  |  |  | (16475) |  | 3406 |  |  | 3406 | 907 | 4313 |
| Common stock shares withheld upon vesting of restricted stock |  |  |  |  |  |  |  |  | (63347) | (1) | (423) |  |  | (424) |  | (424) |
| Distributions to non-controlling interest holders |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (73) | (73) |
| Net loss |  |  |  |  |  |  |  |  |  |  |  |  | (59415) | (59415) |  | (59415) |
| Cumulative translation adjustment |  |  |  |  |  |  |  |  |  |  |  | 1498 |  | 1498 |  | 1498 |
| Designated derivatives, fair value adjustments |  |  |  |  |  |  |  |  |  |  |  | 5765 |  | 5765 |  | 5765 |
| **Balance June 30, 2024** | 6799467 | $68 | 4695887 | $47 | 7933711 | $79 | 4595175 | $46 | 230805375 | $3638 | $4353095 | $(6833) | $(1929107) | $2421033 | $2231 | $2423264 |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

------

**GLOBAL NET LEASE, INC.**

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**

**(In thousands, except share data)**

**(Unaudited)**

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | **Series A Preferred Stock** | **Series A Preferred Stock** | **Series B Preferred Stock** | **Series B Preferred Stock** | **Series D Preferred Stock** | **Series D Preferred Stock** | **Series E Preferred Stock** | **Series E Preferred Stock** | **Common Stock** | **Common Stock** | | | | | | |
| | **Number of<br>Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** | **Number of<br>Shares** | **Par Value** |<br>**Additional Paid-in<br>Capital** |<br>**Accumulated Other Comprehensive (Loss) Income** |<br>**Accumulated Deficit** |<br>**Total Stockholders' Equity** |<br>**Non-controlling interest** |<br>**Total Equity** |
| **Balance, March 31, 2024** | 6799467 | $68 | 4695887 | $47 | 7933711 | $79 | 4595175 | $46 | 230846571 | $3639 | $4351577 | $(11844) | $(1818753) | $2524859 | $1809 | $2526668 |
| Dividends declared: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common Stock, $0.40 per share |  |  |  |  |  |  |  |  |  |  |  |  | (63754) | (63754) |  | (63754) |
| &nbsp;&nbsp;&nbsp;&nbsp;Series A Preferred Stock, $0.45 per share |  |  |  |  |  |  |  |  |  |  |  |  | (3081) | (3081) |  | (3081) |
| &nbsp;&nbsp;&nbsp;&nbsp;Series B Preferred Stock, $0.43 per share |  |  |  |  |  |  |  |  |  |  |  |  | (2018) | (2018) |  | (2018) |
| &nbsp;&nbsp;&nbsp;&nbsp; Series D preferred stock, $0.47 per share |  |  |  |  |  |  |  |  |  |  |  |  | (3719) | (3719) |  | (3719) |
| &nbsp;&nbsp;&nbsp;&nbsp; Series E preferred stock, $0.46 per share |  |  |  |  |  |  |  |  |  |  |  |  | (2118) | (2118) |  | (2118) |
| Equity-based compensation |  |  |  |  |  |  |  |  | 17203 |  | 1886 |  |  | 1886 | 454 | 2340 |
| Common stock shares withheld upon vesting of restricted stock |  |  |  |  |  |  |  |  | (58399) | (1) | (368) |  |  | (369) |  | (369) |
| Distributions to non-controlling interest holders |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (32) | (32) |
| Net loss |  |  |  |  |  |  |  |  |  |  |  |  | (35664) | (35664) |  | (35664) |
| Cumulative translation adjustment |  |  |  |  |  |  |  |  |  |  |  | 2472 |  | 2472 |  | 2472 |
| Designated derivatives, fair value adjustments |  |  |  |  |  |  |  |  |  |  |  | 2539 |  | 2539 |  | 2539 |
| **Balance, June 30, 2024** | 6799467 | $68 | 4695887 | $47 | 7933711 | $79 | 4595175 | $46 | 230805375 | $3638 | $4353095 | $(6833) | $(1929107) | $2421033 | $2231 | $2423264 |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

------

**GLOBAL NET LEASE, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In thousands)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(213522) | $(59415) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation | 72166 | 89693 |
| &nbsp;&nbsp;&nbsp;Amortization of intangibles | 59566 | 91800 |
| &nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 4985 | 4974 |
| &nbsp;&nbsp;&nbsp;Amortization of discounts on mortgages and senior notes | 28569 | 39418 |
| &nbsp;&nbsp;&nbsp;Amortization of below-market lease liabilities | (4735) | (5979) |
| &nbsp;&nbsp;&nbsp;Amortization of above-market lease assets | 5372 | 9482 |
| &nbsp;&nbsp;&nbsp;Amortization related to right-of-use assets | 755 | 623 |
| &nbsp;&nbsp;&nbsp;Amortization of lease incentives | 1011 | 468 |
| &nbsp;&nbsp;&nbsp;Unbilled straight-line rent | (8194) | (9911) |
| &nbsp;&nbsp;&nbsp;Equity-based compensation | 6431 | 4313 |
| &nbsp;&nbsp;&nbsp;Unrealized losses (gains) on foreign currency transactions, derivatives, and other | 10481 | (1489) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses (gains) on undesignated foreign currency advances and other hedge ineffectiveness | 12675 | (1332) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss on multi-tenant disposition receivable | 13766 |  |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment and modification of debt | 19864 | 13148 |
| &nbsp;&nbsp;&nbsp;Loss (gain) on dispositions of real estate investments | 52096 | (39969) |
| &nbsp;&nbsp;&nbsp;Lease incentive and commission payments | (5343) | (473) |
| &nbsp;&nbsp;&nbsp;Impairment charges | 70127 | 31729 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment | 7134 |  |
| Changes in operating assets and liabilities, net: |  |  |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (2008) | 9834 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (28044) | (13878) |
| &nbsp;&nbsp;&nbsp;Prepaid rent | 8042 | (491) |
| **Net cash provided by operating activities** | 111194 | 162545 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (19579) | (18479) |
| &nbsp;&nbsp;&nbsp;Net proceeds from dispositions of real estate investments | 1250952 | 299607 |
| &nbsp;&nbsp;&nbsp;Cash received from multi-tenant disposition receivable | 22624 |  |
| **Net cash provided by investing activities** | 1253997 | 281128 |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Borrowings under revolving credit facilities | 453000 | 411262 |
| &nbsp;&nbsp;&nbsp;Repayments on revolving credit facilities | (1175170) | (406726) |
| &nbsp;&nbsp;&nbsp;Proceeds from mortgage notes payable |  | 317512 |
| &nbsp;&nbsp;&nbsp;Principal payments on mortgage notes payable | (489982) | (583857) |
| &nbsp;&nbsp;&nbsp;Penalties and charges related to repayments and early repayments of debt | (2560) | (13058) |
| &nbsp;&nbsp;&nbsp;Common shares repurchased upon vesting of restricted stock | (655) | (424) |
| &nbsp;&nbsp;&nbsp;Repurchases of Common Stock, net | (75973) |  |
| &nbsp;&nbsp;&nbsp;Payments of financing costs |  | (7605) |
| &nbsp;&nbsp;&nbsp;Dividends paid on Common Stock | (107421) | (145216) |
| &nbsp;&nbsp;&nbsp;Dividends paid on Series A Preferred Stock | (6162) | (6162) |
| &nbsp;&nbsp;&nbsp;Dividends paid on Series B Preferred Stock | (4036) | (4036) |
| &nbsp;&nbsp;&nbsp;Dividends paid on Series D Preferred Stock | (7438) | (7438) |
| &nbsp;&nbsp;&nbsp;Dividends paid on Series E Preferred Stock | (4236) | (4236) |
| &nbsp;&nbsp;&nbsp;Distributions to non-controlling interest holders |  | (73) |
| **Net cash used in financing activities** | (1420633) | (450057) |
| **Net change in cash, cash equivalents and restricted cash** | (55442) | (6384) |
| **Effect of exchange rate changes on cash** | 13382 | 16478 |
| **Cash, cash equivalents and restricted cash, beginning of period** | 224208 | 162399 |
| **Cash, cash equivalents and restricted cash, end of period** | $182148 | $172493 |

---

------

**GLOBAL NET LEASE, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In thousands)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** |
| Cash and cash equivalents, end of period | $144809 | $122181 |
| Restricted cash, end of period | 37339 | 50312 |
| **Cash, cash equivalents and restricted cash, end of period** | $182148 | $172493 |
| **Non-Cash Investing and Financing Activity:** |  |  |
| Loss on extinguishment of debt | $17304 | $90 |
| Accrued capital expenditures | 3 | 315 |
| Mortgages assumed by the buyer as part of consideration for dispositions of real estate | 466274 |  |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

**Note 1 — Organization**

Global Net Lease, Inc. (the "Company") is an internally managed real estate investment trust for United States ("U.S.") federal income tax purposes ("REIT") that focuses on acquiring and managing a global diversified portfolio of strategically located commercial real estate properties.

During the six months ended June 30, 2025, the Company completed the sale of 99 of its multi-tenant retail properties to RCG Venture Holdings, LLC ("RCG") pursuant to a purchase and sale agreement, dated as of February 25, 2025 (the "Multi-Tenant Retail PSA"). Under the Multi-Tenant Retail PSA, the Company agreed to sell 100 multi-tenant retail properties (the "Multi-Tenant Retail Portfolio") to RCG (the "Multi-Tenant Retail Disposition"), however the tenant at one property, which was part of the Multi-Tenant Retail Portfolio, exercised its right of first refusal and decided to purchase the property from the Company. As a result, a total of 99 properties were ultimately sold to RCG and one property was sold to the tenant who exercised its right of first refusal.

The results of operations of the Multi-Tenant Retail Portfolio are currently reported as part of discontinued operations (for additional information on the sale of the Multi-Tenant Retail Portfolio, see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>* — *Multi-Tenant Retail Disposition).*

As of June 30, 2025, the Company owned 911 properties consisting of 44.0 million rentable square feet, which were 97.7% leased, with a weighted-average remaining lease term of 6.2 years. Based on the percentage of annualized rental income on a straight-line basis as of June 30, 2025, approximately 70% of the Company's properties were located in the U.S. and Canada and approximately 30% were located in Europe. In addition, as of June 30, 2025, the Company's portfolio was comprised of 47% Industrial & Distribution properties, 26% Retail properties and 27% Office properties. The percentages are calculated using annualized straight-line rent converted from local currency into the U.S. Dollar ("USD") as of June 30, 2025. The straight-line rent includes amounts for tenant concessions.

Substantially all of our business is conducted through Global Net Lease Operating Partnership, L.P. (the "OP"), a Delaware limited partnership, and The Necessity Retail REIT Operating Partnership, L.P., a Delaware limited partnership ("RTL OP," and together with the OP, the "OPs"), and each of their wholly-owned subsidiaries.

The Company has its own dedicated workforce, which manages the advisory and property management functions of the Company. The Company rents office space for its own dedicated workforce at a property owned by affiliates of AR Global Investments, LLC, the former advisor to the Company (the "Former Advisor").

The Company's properties are leased primarily to "Investment Grade" tenants, which includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied investment grade may include actual ratings of the tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant's obligation under the lease) or tenants that are identified as investment grade by using a proprietary Moody's Analytics tool, which generates an implied rating by measuring an entity's probability of default.

 **Note 2 — Basis of Presentation**

***Basis of Presentation***

The accompanying unaudited consolidated financial statements of the Company included herein were prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP") for interim financial information and with the instructions to this Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information furnished includes all adjustments and accruals of a normal recurring nature, which, in the opinion of management, are necessary for a fair statement of results for the interim periods. All intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results for the entire year or any subsequent interim period.

Entry into the Multi-Tenant Retail PSA to sell the Multi-Tenant Retail Portfolio to RCG (as discussed above) represented a strategic shift in the Company's business which initially met the held-for-sale and discontinued operations accounting criteria as of March 31, 2025 and continued to do so as of June 30, 2025. Accordingly, the Company is separately reporting the results of these properties as discontinued operations in its consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 and is presenting the related assets and liabilities separately in its consolidated balance sheets as of June 30, 2025 and December 31, 2024. For additional information on the Multi-Tenant Retail Disposition, see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u> — Multi-Tenant Retail Disposition.*

These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2024, which are included in the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") on February 27, 2025. Except for those required by new accounting pronouncements discussed below, there have been no significant changes to the Company's

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

significant accounting policies during the six months ended June 30, 2025 *(see "—Recently Issued Accounting Pronouncements"* section below).

***Principles of Consolidation***

The accompanying unaudited consolidated financial statements include the accounts of the Company, the OPs and their subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OPs.

***Use of Estimates***

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding revenue recognition, purchase price allocations to record investments in real estate, derivative financial instruments, hedging activities, equity-based compensation expenses, income taxes and fair value measurements, as applicable.

***Recently Issued Accounting Pronouncements***

**Pending Adoption as of June 30, 2025:**

In December 2023, the FASB issued *ASU 2023-09, Income Taxes (Topic 740*) *— Improvements to Income Tax Disclosures.* The new standard expands the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. Public entities must apply the new standard to annual periods beginning after December 15, 2024. The Company will adopt the new guidance in its Form 10-K for the year ended December 31, 2025 and it does not expect it to have an impact on its consolidated financial statements as the provisions are related to disclosure only.

In November 2024, the FASB issued *ASU 2024-03, Income Statement (Topic 220) — Reporting Comprehensive Income - Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses*. The new standard requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. Public entities must apply the new standard to annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. Both early adoption and retrospective application are permitted. The Company is currently evaluating the impact that the adoption of this new standard will have on its consolidated financial statements and disclosures.

**Note 3 — Multi-Tenant Retail Disposition** 

During the second quarter of 2025, the Company completed the Second Closing and Third Closing, resulting in the Multi-Tenant Retail Disposition being fully consummated (the First Closing was completed in the first quarter of 2025). The contract sale price of approximately $1.780 billion for the Multi-Tenant Retail Disposition is subject to various adjustments, some of which pertain to leases that the Company has negotiated, which were not finalized as of the signing of the Multi-Tenant Retail PSA or as of the time of the Closings. The closings occurred in the following stages (collectively, the "Closings"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On March 25, 2025, the Company completed the sale of 59 unencumbered properties (the "First Closing").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On June 10, 2025, the Company completed the sale of 28 encumbered properties (the "Second Closing").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On June 18, 2025, the Company completed the sale of 12 encumbered properties (the "Third Closing").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On June 30, 2025, the Company completed the sale of the one property whose tenant exercised its right of first refusal.

The Company recorded a gain on sale of $33.2 million for the three months ended June 30, 2025 and a loss on sale of approximately $52.0 million during the six months ended June 30, 2025, related to the Multi-Tenant Retail Disposition. These amounts are recorded in loss from discontinued operations in the Company's consolidated statement of operations for the three and six months ended June 30, 2025. The consideration paid to the Company for the Second Closing and Third Closing included the assumption of two mortgages by RCG. The amount of principal assumed by RCG for these mortgages was $256.3 million and $210.0 million, respectively (see *<u>[N](#i7565b63625e84b32a751be2cb251dad1_46)[o](#i7565b63625e84b32a751be2cb251dad1_46)[te](#i7565b63625e84b32a751be2cb251dad1_46)[5](#i7565b63625e84b32a751be2cb251dad1_46)</u> — Mortgage Notes Payable, Net* for additional information).

***Discontinued Operations***

As described in more detail in *<u>[Note 2](#i7565b63625e84b32a751be2cb251dad1_37)</u>* — *Basis of Presentation,* entry into the Multi-Tenant Retail PSA represented a strategic shift in the Company's business which initially met the held-for-sale and discontinued operations accounting criteria as of March 31, 2025 and continued to do so as of June 30, 2025. In connection with this transaction, the Company recorded receivables for the expected consideration (collectively, the "Multi-Tenant Disposition Receivable") to be received by the

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

Company from RCG for leases in process at the time of, and specifically related to the Closings (see the "*Multi-Tenant Disposition Receivable, Net"* section below for additional information).

The following table presents the assets and liabilities associated with the Multi-Tenant Retail Portfolio. As of December 31, 2024, this includes assets and liabilities associated with the entire Multi-Tenant Retail Disposition, which includes the one property which was sold to the tenant who exercised its right of first refusal. As of June 30, 2025, this includes any remaining asset and liability balances that are expected to be settled over time, however, all 100 properties related to the Multi-Tenant Retail Disposition have been sold as of June 30, 2025 and therefore are not included in the June 30, 2025 balances below:

---

| | | |
|:---|:---|:---|
| *(in thousands)* | **June 30,<br>2025** | **December 31,<br>2024** |
| **ASSETS** |  |  |
| Land | $— | $369829 |
| Buildings, fixtures and improvements |  | 1172804 |
| Construction in progress |  | 986 |
| Acquired intangible lease assets |  | 362370 |
| &nbsp;&nbsp;&nbsp;Total real estate investments, at cost |  | 1905989 |
| Less accumulated depreciation and amortization |  | (164720) |
| &nbsp;&nbsp;&nbsp;Total real estate investments, net |  | 1741269 |
| Unbilled straight line rent |  | 9697 |
| Operating lease right-of-use asset |  | 8107 |
| Prepaid expenses and other assets | 2337 | 57058 |
| &nbsp;&nbsp;&nbsp;**Assets related to discontinued operations** | $**2337** | $**1816131** |
| **LIABILITIES** |  |  |
| Mortgage notes payable, net | $— | $453098 |
| Acquired intangible lease liabilities, net |  | 52447 |
| Accounts payable and accrued expenses | 7470 | 22857 |
| Operating lease liability |  | 8253 |
| Prepaid rent |  | 15163 |
| **&nbsp;&nbsp;&nbsp;&nbsp; Liabilities related to discontinued operations** | $**7470** | $**551818** |

---

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

The operating results of the Multi-Tenant Retail Portfolio were as follows for the periods noted:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>*(In thousands)* | **2025** <sup>(1)</sup> | **2024** | **2025** <sup>(1), (2)</sup> | **2024** |
| **Revenue from tenants** | $19794 | $57822 | $76637 | $115987 |
| **Expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property operating | 6589 | 19599 | 26020 | 39633 |
| &nbsp;&nbsp;&nbsp;&nbsp;Merger, transaction and other costs | 8 | (4) | 83 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 1396 | 1450 | 2651 | 2964 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization |  | 32839 | 29762 | 67667 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 7993 | 53884 | 58516 | 110268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating income before loss on dispositions of real estate investments | 11801 | 3938 | 18121 | 5719 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on dispositions of real estate investments | 33232 | (12) | (51955) | (13) |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating income (loss) of discontinued operations | 45033 | 3926 | (33834) | 5706 |
| **Other income (expense):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense <sup>(3)</sup> | (6374) | (17831) | (23831) | (35991) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment and modification of debt <sup>(4)</sup> | (15164) | (1) | (15098) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;(Loss) gain on derivative instruments | (15781) | 21 | (13768) | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income | 1 | (36) | 35 | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total other expense, net | (37318) | (17847) | (52662) | (35983) |
| **Net income (loss) before income tax** | 7715 | (13921) | (86496) | (30277) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense |  |  |  | (30) |
| **Income (loss) from discontinued operations** | $**7715** | $**(13921)** | $**(86496)** | $**(30307)** |

---

__________

<sup>(1)</sup> Includes results of the 28 properties included in the Second Closing through June 10, 2025, the results of the 12 properties included in the Third Closing through June 18, 2025 and the results of the one property which was sold to the tenant who exercised its right of first refusal through June 30, 2025.

<sup>(2)</sup> Includes results of the 59 properties included in the First Closing through March 25, 2025.

<sup>(3)</sup> Interest expense is comprised of interest on the Company's Revolving Credit Facility (as defined in <u>[N](#i7565b63625e84b32a751be2cb251dad1_49)</u>*<u>[ote 6](#i7565b63625e84b32a751be2cb251dad1_49)</u> — Revolving Credit Facility*) and interest from the two mortgages that were assumed by RCG in the Multi-Tenant Retail Disposition. The Company calculated interest expense consistently in both periods and, for the Revolving Credit Facility, used the amount of the Revolving Credit Facility that would have been required to be paid back upon removal of the Multi-Tenant Retail Portfolio from the borrowing base, multiplied by the weighted-average interest rate of the Revolving Credit Facility.

<sup>(4)</sup> Primarily represents the acceleration of the unamortized discount on the two mortgages that were assumed by RCG.

The cash flows related to the Multi-Tenant Retail Portfolio have not been segregated and are included in the consolidated statements of cash flows. The following table presents certain cash flow information for the Multi-Tenant Retail Portfolio:

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| *(In thousands)* | **2025** | **2024** |
| Depreciation | $9701 | $19035 |
| Amortization of intangibles | 20061 | 48632 |
| Amortization of discounts on mortgages | 2376 | 2814 |
| Amortization of below-market lease liabilities | (1679) | (3513) |
| Amortization of above-market lease assets | 1922 | 4465 |
| Unbilled straight-line rent | 2496 | 2887 |
| Loss from embedded derivative feature of multi-tenant disposition receivable | 13766 |  |
| Loss on extinguishment of debt | 15098 |  |
| Cash proceeds - multi-tenant disposition receivable | 22624 |  |
| Net proceeds from the Multi-Tenant Retail Disposition | 1092812 |  |

---

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

***Multi-Tenant Disposition Receivable, Net***

At the time of the Closings, the Company recorded receivables from RCG which comprise the Multi-Tenant Disposition Receivable. As part of the portfolio sold, there are leases that had not yet commenced at the time of the Closings. As part of the transaction, the Company agreed to receive proceeds attributed to each of those leases when the respective tenants move into their space.

This receivable balance of $90.2 million as of June 30, 2025 was recorded at fair value and is comprised of a gross receivable of $117.9 million and a net adjustment to fair value of $27.7 million. In calculating the fair value, the Company applied probability weighting, using a range of probabilities from 0% to 98% for the likelihood of the tenants moving to open and operating status and in addition applied a discount rate of 9.5%. This receivable is classified as Level 3 of the fair value hierarchy due to the use of unobservable inputs (see *<u>[Note 8](#i7565b63625e84b32a751be2cb251dad1_55)</u> — Fair Value of Financial Instruments* for additional information) and it represents the full potential amount to be received less the fair value of the embedded derivative ascribed to the potential variability of these commencements. This feature is marked to market each period with changes in value being recorded through earnings. In the first and second quarters of 2025, the Company resolved contingencies associated with potential commencements and obtained new facts and circumstances associated with other ongoing lease certain leases. As a result, in the three and six months ended June 30, 2025, the Company adjusted the fair value of the embedded derivative to account for those resolutions, which represented a change of $15.8 million and $13.8 million in losses, respectively, and is presented in the (loss) gain on derivative instruments line item of the consolidated statement of operations.

***Goodwill***

The Company evaluates goodwill for impairment at least annually or upon the occurrence of a triggering event. The Company performed its annual impairment evaluation during the fourth quarter of 2024 to determine whether it was more likely than not that the fair value of each of its reporting units was less than their carrying value. For purposes of this assessment, an operating segment is a reporting unit. Based on this assessment, the Company determined that no goodwill was impaired as of December 31, 2024.

The First Closing of the Multi-tenant Retail Disposition was considered a triggering event, requiring the Company to perform a reassessment of the Multi-Tenant Retail segment's goodwill as of March 31, 2025 since all of the segment's properties (with the exception of one) were expected to be, and were ultimately, sold by the end of the second quarter of 2025 as part of the Multi-Tenant Retail Disposition. Based on this assessment, the Company determined that goodwill was impaired and recorded an impairment charge of $7.1 million in the first quarter of 2025, which represented a write off of the entire segment's goodwill. This amount is presented in the goodwill impairment line item of the consolidated statement of operations for the six months ended June 30, 2025.

**Note 4 — Real Estate Investments, Net**

***Property Acquisitions***

The Company did not acquire any properties during any of the three and six month periods ended June 30, 2025 or 2024.

***Acquired Intangible Lease Assets and Liabilities***

The Company allocates a portion of the fair value of real estate acquired to identified intangible assets and liabilities, consisting of the value of origination costs (tenant improvements, leasing commissions, and legal and marketing costs), the value of above-market and below-market leases, and the value of tenant relationships, if applicable, based in each case on their relative fair values. The Company periodically assesses whether there are any indicators that the value of the intangible assets may be impaired by performing a net present value analysis of future cash flows, discounted for the inherent risk associated with each investment. The Company recorded $0.5 million and $9.5 million of impairment charges on its acquired intangible assets and liabilities during the three and six months ended June 30, 2025, respectively, and did not record any impairment charges on its acquired intangible assets and liabilities during the three and six months ended June 30, 2024.

***Impairment Charges***

The Company recorded aggregate impairment charges of approximately $9.8 million and $70.1 million during the three and six months ended June 30, 2025, respectively, and recorded impairment charges of approximately $27.4 million and $31.7 million during the three and six months ended June 30, 2024, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the three months ended June 30, 2025, the Company determined that 21 of its properties (20 of which were located in the U.S. and one was located in Europe) had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price of such properties less selling costs, and as a result, the Company recorded an impairment charge of approximately $9.8 million.

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the three months ended March 31, 2025, the Company determined that 69 of its properties (68 located in the U.S. and one located in the U.K.) had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price of such properties less selling costs, and as a result, the Company recorded an impairment charge of approximately $60.3 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the three months ended June 30, 2024, the Company determined that six of its properties located in the U.S. (three of which were acquired in the acquisition of the Necessity Retail REIT, Inc. ("RTL") (the "REIT Merger")) had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price of such properties, and as a result, the Company recorded an impairment charge of approximately $27.4 million. The majority of the impairment charge was related to legacy GNL properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the three months ended March 31, 2024, the Company determined that six of its properties located in the U.S. had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price of such properties less selling costs, and as a result, the Company recorded an impairment charge of approximately $4.3 million.

***Real Estate Assets and Liabilities Held for Sale***

When assets and liabilities are identified by management as held for sale, the Company stops recognizing depreciation and amortization expense on the identified assets and estimates the sales price, net of costs to sell, of those assets. If the carrying amount of the assets and liabilities classified as held for sale exceeds the estimated net sales price, the Company records an impairment charge equal to the amount by which the carrying amount of the assets exceeds the Company's estimate of the net sales price of the assets and liabilities.

As of June 30, 2025, the Company evaluated its real estate assets and liabilities for held for sale classification and determined that 43 properties qualified for held for sale treatment. Because these assets and liabilities are considered held for sale, the operating results remain classified within continuing operations for all periods presented.

The following table details the major classes of the real estate assets and liabilities associated with the properties that the Company determined to be classified as held for sale as of June 30, 2025 and December 31, 2024.

---

| | | |
|:---|:---|:---|
| *(In thousands)* | **June 30, 2025** | **December 31, 2024** |
| Land | $8734 | $4574 |
| Buildings, fixtures and improvements | 25034 | 11658 |
| Acquired intangible lease assets | 3467 | 1627 |
| Above-market leases | 1370 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Real estate assets held for sale, at cost** | 38605 | 17859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: accumulated depreciation and amortization | (1109) | (453) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Real estate assets held for sale, net** | $**37496** | $**17406** |
| Below-market leases | $404 | $— |
| Less: accumulated amortization | (25) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Real estate liabilities held for sale, net** | $**379** | $**—** |

---

***Real Estate Dispositions (Not Including the Multi-Tenant Retail Disposition)***

During the three months ended June 30, 2025, the Company sold 94 properties (five Industrial and Distribution properties, 88 Retail properties and one Office property) and during the six months ended June 30, 2025, the Company sold 110 properties, (six Industrial and Distribution properties, 101 Retail properties and three Office properties), not including the properties sold as part of the Multi-Tenant Retail Disposition (see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>* — *Multi-Tenant Retail Disposition* for additional information). As a result, the Company recorded a net gain from the sale of properties of $1.5 million and net loss of $0.1 million (not including the Multi-Tenant Retail Disposition), which is recorded in continuing operations, during the three and six months ended June 30, 2025, respectively.

During the three and six months ended June 30, 2024, the Company sold 36 and 55 properties, respectively, and recorded net gains of $34.1 million and $40.0 million, respectively.

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

We disposed of a portfolio of assets at the end of June 2025, which resulted in approximately $21.9 million in receivables owed from the buyer for net proceeds on sale. This receivable was recorded within prepaid expenses and other assets on the balance sheet as of June 30, 2025. We received the proceeds from sale in early July 2025.

***Significant Tenants***

There were no tenants whose annualized rental income on a straight-line basis represented 10.0% or greater of consolidated annualized rental income on a straight-line basis for all properties as of June 30, 2025 and December 31, 2024. The termination, delinquency or non-renewal of leases by any major tenant may have a material adverse effect on revenues.

***Geographic Concentration***

The following table lists the countries and states where the Company has concentrations of properties where annualized rental income on a straight-line basis represented greater than 10.0% of consolidated annualized rental income on a straight-line basis as of June 30, 2025 or December 31, 2024, or both. Michigan is included in the United States concentration of 69.5%.

---

| | | |
|:---|:---|:---|
| **Country / U.S. State** | **June 30,<br>2025** | **December 31,<br>2024** |
| United States | 69.5% | 80.1% |
| Michigan | 11.4% | 9.2% |
| United Kingdom | 15.5% | 10.4% |

---

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

**Note 5 —Mortgage Notes Payable, Net** 

Mortgage notes payable, net as of June 30, 2025 and December 31, 2024 consisted of the following:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Encumbered Properties** | **Outstanding Loan Amount** <sup>(1), (2)</sup> | **Outstanding Loan Amount** <sup>(1), (2)</sup> | **Effective Interest Rate** | **Interest Rate** | | |
|<br>**Country** |<br>**Portfolio** | **Encumbered Properties** | **June 30,<br>2025** | **December 31,<br>2024** | **Effective Interest Rate** | **Interest Rate** |<br>**Maturity** |<br>**Anticipated Repayment** <sup>(3)</sup>  |
|  |  |  | *(In thousands)* | *(In thousands)* |  |  |  |  |
| Finland: | Finland Properties <sup>(4)</sup> | 5 | $86899 | $76866 | 5.0% | Fixed/Variable | Jan. 2029 | Jan. 2029 |
|  | &nbsp;&nbsp;&nbsp;Total EUR denominated | 5 | 86899 | 76866 |  |  |  |  |
| United States: | Penske Logistics | 1 | 70000 | 70000 | 4.7% | Fixed | Nov. 2028 | Nov. 2028 |
|  | Multi-Tenant Mortgage Loan I | 10 | 162580 | 162580 | 4.4% | Fixed | Nov. 2027 | Nov. 2027 |
|  | Multi-Tenant Mortgage Loan II | 8 | 32750 | 32750 | 4.4% | Fixed | Feb. 2028 | Feb. 2028 |
|  | Multi-Tenant Mortgage Loan III | 7 | 98500 | 98500 | 4.9% | Fixed | Dec. 2028 | Dec. 2028 |
|  | Multi-Tenant Mortgage Loan IV | 15 | 90111 | 90111 | 4.6% | Fixed | May 2029 | May 2029 |
|  | Multi-Tenant Mortgage Loan V | 11 | 139771 | 139771 | 3.7% | Fixed | Oct. 2029 | Oct. 2029 |
|  | 2019 Class A-1 Net-Lease Mortgage Notes | 68 | 94446 | 105859 | 3.8% | Fixed | May 2049 | May 2026 |
|  | 2019 Class A-2 Net-Lease Mortgage Notes | 71 | 118493 | 118798 | 4.5% | Fixed | May 2049 | May 2029 |
|  | 2021 Class A-1 Net-Lease Mortgage Notes | 45 | 45267 | 49362 | 2.2% | Fixed | May 2051 | May 2028 |
|  | 2021 Class A-2 Net-Lease Mortgage Notes | 45 | 78189 | 85262 | 2.8% | Fixed | May 2051 | May 2031 |
|  | 2021 Class A-3 Net-Lease Mortgage Notes | 34 | 34997 | 34997 | 3.1% | Fixed | May 2051 | May 2028 |
|  | 2021 Class A-4 Net-Lease Mortgage Notes | 33 | 54995 | 54995 | 3.7% | Fixed | May 2051 | May 2031 |
|  | Column Financial Mortgage Notes <sup>(5)</sup> |  |  | 463370 | —% | Fixed | N/A | N/A |
|  | Mortgage Loan II <sup>(6)</sup> |  |  | 210000 | —% | Fixed | N/A | N/A |
|  | Mortgage Loan III | 22 | 33400 | 33400 | 4.1% | Fixed | Jan. 2028 | Jan. 2028 |
|  | CMBS Loan <sup>(7)</sup> |  |  | 260000 | —% | Fixed | N/A | N/A |
|  | CMBS Loan II | 20 | 237000 | 237000 | 5.8% | Fixed | Apr. 2029 | Apr. 2029 |
|  | &nbsp;&nbsp;&nbsp;Total USD denominated | 390 | 1290499 | 2246755 |  |  |  |  |
|  | **Gross mortgage notes payable** | **395** | **1377398** | **2323621** | **4.4%** |  |  |  |
|  | Mortgages classified in discontinued operations: |  |  |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Mortgage Loan II <sup>(6)</sup> |  |  | (210000) |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp; CMBS Loan <sup>(7)</sup> |  |  | (260000) |  |  |  |  |
|  | **Gross mortgage notes payable (continuing operations)** | **395** | **1377398** | **1853621** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;Mortgage discounts |  | (54677) | (73542) |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;Deferred financing costs, net of accumulated amortization <sup>(8)</sup> |  | (10003) | (11471) |  |  |  |  |
|  | **Mortgage notes payable, net** | **395** | $**1312718** | $**1768608** | **4.4%** |  |  |  |

---

______________

<sup>(1)</sup> Amounts borrowed in local currency are translated at the spot rate in effect at the applicable reporting date.

<sup>(2)</sup> The borrowers' (wholly-owned subsidiaries of the Company) financial statements are included within the Company's consolidated financial statements, however, the borrowers' assets and credit are only available to pay the debts of the borrowers and their liabilities constitute obligations of the borrowers.

<sup>(3)</sup> The Company determines an anticipated repayment date when the terms of a debt obligation provide for earlier repayment than the legal maturity and when the Company expects to repay such debt obligations earlier due to factors such as elevated interest rates or additional principal payment requirements.

<sup>(4)</sup> 80% fixed as a result of a "pay-fixed" interest rate swap agreement and 20% variable. Variable portion is approximately 1.4% plus 3-month Euribor and reflects the Euribor rate in effect as of June 30, 2025. This loan was extended from its original maturity date of February 2024 to February 2029.

<sup>(5)</sup> This mortgage was repaid in May 2025, primarily using borrowings under the USD portion of the Company's Revolving Credit Facility (as defined in <u>[N](#i7565b63625e84b32a751be2cb251dad1_49)</u>*<u>[ote 6](#i7565b63625e84b32a751be2cb251dad1_49)</u> — Revolving Credit Facility*).

<sup>(6)</sup> This mortgage was assumed by RCG as part of the completion of the Multi-Tenant Retail Disposition in the second quarter of 2025. As of December 31, 2024, this mortgage was classified within discontinued operations (see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>* — *Multi-Tenant Retail Disposition for additional information*).

<sup>(7)</sup> Approximately $256.3 million of the original principal amount of this mortgage was assumed by RCG as part of the completion of the Multi-Tenant Retail Disposition in the second quarter of 2025, and the remaining principal of approximately $3.7 million was repaid by the Company. As of December 31, 2024, this mortgage was classified within discontinued operations (see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>* — *Multi-Tenant Retail Disposition for additional information*).

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

<sup>(8)</sup> Deferred financing costs represent commitment fees, legal fees, and other costs associated with obtaining commitments for financing. These costs are amortized over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or paid down before maturity. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined that the financing will not close.

The following table presents future scheduled aggregate principal payments on the Company's gross mortgage notes payable over the next four calendar years and thereafter as of June 30, 2025:

---

| | |
|:---|:---|
| *(In thousands)* | **Future Principal Payments** <sup>(1)</sup>  |
| 2025 Remainder | $549 |
| 2026 | 94814 |
| 2027 | 163191 |
| 2028 | 315525 |
| 2029 | 670135 |
| Thereafter | 133184 |
| &nbsp;&nbsp;&nbsp;Total | $1377398 |

---

______

<sup>(1)</sup> Assumes exchange rates of £1.00 to $1.37 for British Pounds Sterling ("GBP") and €1.00 to $1.17 for Euros ("EUR") as of June 30, 2025 for illustrative purposes, as applicable.

The total gross carrying value of the Company's unencumbered assets as of June 30, 2025 was $3.85 billion, and approximately $3.82 billion of this amount was included in the unencumbered asset pool comprising the borrowing base under the Revolving Credit Facility (as defined in *<u>[Note 6](#i7565b63625e84b32a751be2cb251dad1_49)</u> — Revolving Credit Facility*) and therefore is not currently available to serve as collateral for future borrowings under the Revolving Credit Facility or, subsequent to August 6, 2025, the August 2025 Revolving Credit Facility (as defined in *<u>[Note 6](#i7565b63625e84b32a751be2cb251dad1_49)</u> — Revolving Credit Facility*).

*Mortgage Covenants*

As of June 30, 2025, the Company was in compliance with all property-level debt covenants with the exception of three property-level debt instruments. For those three property-level debt instruments, the Company either (a) implemented a cure to the underlying noncompliance trigger by providing a letter of credit, or (b) permitted excess net cash flow after debt service from the impacted properties to become restricted, in each case in accordance with the terms of the applicable debt instrument. Each letter of credit, for so long as it is outstanding, represents a dollar-for-dollar reduction to availability for future borrowings under the Company's Revolving Credit Facility or, subsequent to August 6, 2025, the August 2025 Revolving Credit Facility. While the restricted cash cannot not be used for general corporate purposes, it is available to fund operations of the underlying assets. These matters did not have a material impact on the Company's liquidity or its ability to operate the impacted assets.

**Note 6 — Revolving Credit Facility** 

The table below details the outstanding balances as of June 30, 2025 and December 31, 2024 under the credit agreement with KeyBank National Association, as agent, and the other lenders party thereto which was originally entered into on July 24, 2017 and has been amended from time to time (the "Credit Agreement"). The Credit Agreement consists solely of the senior unsecured multi-currency revolving credit facility (the "Revolving Credit Facility"). The aggregate total commitments under the Revolving Credit Facility were $1.95 billion and the sublimits for letters of credit and swing loans were $75.0 million.

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| *(In thousands)* | **TOTAL USD** <sup>(1)</sup> | **USD** <sup>(3)</sup> | **GBP** <sup>(4)</sup> | **EUR** <sup>(5)</sup> | **EUR** <sup>(5)</sup> | **CAD** <sup>(6)</sup> | **TOTAL USD** <sup>(2)</sup> | **USD** | **GBP** | **EUR** | **EUR** | **CAD** |
| **Revolving Credit Facility** | $740682 | $217119 | £— | € | 422145 | $38000 | $1390292 | $494119 | £344000 | € | 422145 | $38000 |

---

<sup>(1)</sup> Assumes exchange rates of £1.00 to $1.37 for GBP, €1.00 to $1.17 for EUR and $1.00 Canadian Dollar ("CAD") to $0.73 as of June 30, 2025 for illustrative purposes, as applicable.

<sup>(2)</sup> Assumes exchange rates of £1.00 to $1.25 for GBP , €1.00 to $1.04 for EUR and $1.00 CAD to $0.70 as of December 31, 2024 for illustrative purposes, as applicable.

<sup>(3)</sup> The USD portion of the Revolving Credit Facility is 100% variable and, as of June 30, 2025, had a weighted-average effective interest rate of 6.1%.

<sup>(4)</sup> The GBP portion of the Revolving Credit Facility was paid off with proceeds received at the First Closing of the Multi-Tenant Retail Disposition.

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

<sup>(5)</sup> The EUR portion of Revolving Credit Facility is 59.2% fixed via swaps and, as of June 30, 2025, had a weighted-average effective interest rate of 3.8% after giving effect to interest rate swaps in place.

<sup>(6)</sup> The CAD portion of Revolving Credit Facility is 100% variable and, as of June 30, 2025, had a weighted-average effective interest rate of 4.6%.

On August 6, 2025, the OP, as borrower, together with the Company and certain subsidiaries of the OP acting as guarantors, entered into a credit agreement (the "August 2025 Credit Agreement" and the credit facilities provided thereunder, collectively, the "August 2025 Revolving Credit Facility") with BMO Bank N.A. ("BMO"), as agent, and the other lender parties thereto. The proceeds of the transaction were used, in part, to prepay in full and terminate the Credit Agreement. See *<u>[Note 16](#i7565b63625e84b32a751be2cb251dad1_88)</u> – Subsequent Events – August 2025 Revolving Credit Facility* for additional information.

<u>Credit Agreement — Terms</u>

The Revolving Credit Facility required payments of interest only prior to maturity. Borrowings under the Revolving Credit Facility bore interest at a variable rate per annum based on an applicable margin that varies based on the ratio of consolidated total indebtedness to consolidated total asset value of the Company and its subsidiaries plus either (i) the Base Rate (as defined in the Credit Agreement) or (ii) the applicable Benchmark Rate (as defined in the Credit Agreement) for the currency being borrowed. The applicable interest rate margin was based on a range from 0.30% to 0.90% per annum with respect to Base Rate borrowings under the Revolving Credit Facility and 1.30% to 1.90% per annum with respect to Benchmark Rate borrowings under the Revolving Credit Facility. For Benchmark Rate Loans denominated in Dollars that bear interest calculated by reference to Term SOFR, there was an additional spread adjustment depending on the length of the interest period. As of June 30, 2025, the Revolving Credit Facility had a weighted-average effective interest rate of 4.5% after giving effect to interest rate swaps in place.

The Revolving Credit Facility was scheduled to mature on October 8, 2026, subject to the Company's option, subject to customary conditions, to extend the maturity date by up to two additional six-month terms. Borrowings under the Revolving Credit Facility could be prepaid at any time, in whole or in part, without premium or penalty, subject to customary breakage costs associated with borrowings for the applicable Benchmark Rate.

The Revolving Credit Facility required the Company through the OP to pay an unused fee per annum of 0.25% of the unused balance of the Revolving Credit Facility if the unused balance exceeded or was equal to 50% of the total commitment or a fee per annum of 0.15% of the unused balance of the Revolving Credit Facility if the unused balance is less than 50% of the total commitment.

The Revolving Credit Facility was supported by a pool of eligible unencumbered properties that are owned by the subsidiaries of the OP that served as guarantors thereunder. The availability of borrowings under the Revolving Credit Facility continues to be based on the value of a pool of eligible unencumbered real estate assets owned by the Company or its subsidiaries and compliance with various ratios related to those assets. As of June 30, 2025, approximately $645.2 million was available for future borrowings under the Revolving Credit Facility. Borrowings may, at the option of the Company, be denominated in USD, EUR, CAD, GBP, Norwegian Krone, Swedish Krona and Swiss Francs provided that the total principal amount of non-USD loans could not exceed the sum of the total revolving commitments minus $100.0 million. Amounts borrowed may not, however, be converted to, or repaid in, another currency once borrowed.

The Credit Facility contains events of default relating to customary matters, including, among other things, payment defaults, covenant defaults, breaches of representations and warranties, events of default under other material indebtedness, material judgments, bankruptcy events and change of control events, such as certain changes to the composition of the board of directors (the "Board") and management. Upon the occurrence of an event of default, a majority of the lenders have the right to accelerate the payment on any outstanding borrowings and other obligations.

The Company, through the OP, may reduce the amount committed under the Revolving Credit Facility and repay outstanding borrowings under the Revolving Credit Facility, in whole or in part, at any time without premium or penalty, other than customary "breakage" costs payable on index borrowings. Upon an event of a default, lenders had the right to terminate their obligations under the Revolving Credit Facility agreement and to accelerate the payment on any unpaid principal amount of all outstanding loans. The Credit Agreement contained various customary operating covenants, including covenants restricting, among other things, restricted payments, including dividends (see below) and on share repurchases not to exceed $300.0 million in the aggregate pursuant to any stock buyback program authorized by the Board (see *<u>[Note 10](#i7565b63625e84b32a751be2cb251dad1_61)</u>* — Stockholders' Equity for additional information on Common Stock repurchases), the incurrence of liens, the types of investments the Company may make, fundamental changes, agreements with affiliates and changes in nature of business. The Credit Agreement also contained financial maintenance covenants with respect to maximum leverage, minimum fixed charge coverage, maximum secured leverage, maximum secured recourse debt, minimum tangible net worth, maximum unencumbered leverage and unencumbered debt service coverage. As of June 30, 2025, the Company was in compliance with all covenants under the Credit Agreement.

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

Under the terms of the Credit Agreement, the Company could not pay distributions, including cash dividends payable with respect to Common Stock, the Company's 7.25% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share ("Series A Preferred Stock"), its 6.875% Series B Cumulative Redeemable Perpetual Preferred Stock $0.01 par value per share ("Series B Preferred Stock"), its Series D Preferred Stock, its Series E Preferred Stock, or any other class or series of stock the Company may issue in the future, or redeem or otherwise repurchase shares of Common Stock, Series A Preferred Stock, Series B Preferred Stock, Series D Preferred Stock, Series E Preferred Stock, or any other class or series of stock the Company may issue in the future that exceed 100% of the Company's Adjusted FFO, as defined in the Credit Agreement (which is different from AFFO disclosed in this Quarterly Report on Form 10-Q) for any period of four consecutive fiscal quarters, except in limited circumstances, including that for one fiscal quarter in each calendar year, the Company could pay cash dividends and other distributions, and make redemptions and other repurchases in an aggregate amount equal to no more than 105% of its Adjusted FFO. However, notwithstanding the preceding sentence, the Company was permitted to make restricted payments (including the making of distributions and share repurchases) in an amount required to be paid by the Company in order for it to (x) maintain its REIT status for federal and state income tax purposes and (y) avoid the payment of federal and state income or excise tax. During a payment or bankruptcy event of default, restricted payments by the Company could only be permitted up to the minimum amount needed to maintain the Company's status as a REIT for federal and state income tax purposes.

The Company's ability to comply with the restrictions on the payment of distributions in the Credit Agreement depended on its ability to generate sufficient cash flows that in the applicable periods exceed the level of Adjusted FFO required by these restrictions. If the Company were not able to generate the necessary level of Adjusted FFO, the Company would have had to reduce the amount of dividends paid on the common and the preferred stock or consider other actions. Alternatively, the Company could elect to pay a portion of its dividends on the Common Stock in additional shares of Common Stock if approved by the Board.

The Company and certain subsidiaries of the OP acting as guarantors (the "Guarantors") guaranteed, and any wholly owned eligible direct or indirect subsidiary of the OP that directly or indirectly owns or leases a real estate asset added to the pool of eligible unencumbered properties required to be maintained under the Credit Agreement was required to guarantee, the OP's obligations under the Revolving Credit Facility. The Guarantors guaranteed the OP's obligations under the Revolving Credit Facility pursuant to one or more guarantees (collectively, the "Guaranty") and a related contribution agreement which governed contribution rights of the Guarantors in the event any amounts become payable under the Guaranty. For any Guarantor subsidiary of the OP, the Guaranty would be released if the Company achieves an investment grade credit rating from at least one rating agency, but will again be required (i) if the Company lost its investment grade credit rating, or (ii) with respect to any Guarantor subsidiary of the Company, for so long as the subsidiary was the primary obligor under or provides a guaranty to any holder of unsecured indebtedness.

 **Note 7 — Senior Notes, Net**

The details of the Company's senior notes are as follows:

---

| | | |
|:---|:---|:---|
| *(In thousands)* | **June 30,<br>2025** | **December 31,<br>2024** |
| **<u>3.75% Senior Notes</u>** |  |  |
| Aggregate principal amount | $500000 | $500000 |
| Less: Deferred financing costs | (3412) | (4100) |
| **&nbsp;&nbsp;&nbsp;&nbsp; 3.75% Senior Notes, net** | 496588 | 495900 |
| **<u>4.50% Senior Notes</u>** |  |  |
| Aggregate principal amount | 500000 | 500000 |
| Less: Discount | (79724) | (89799) |
| **&nbsp;&nbsp;&nbsp;&nbsp; 4.50% Senior Notes, net** | 420276 | 410201 |
| **Senior Notes, Net** | $**916864** | $**906101** |

---

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

*3.75% Senior Notes* 

On December 16, 2020, the Company and the OP issued $500.0 million aggregate principal amount of 3.75% Senior Notes due 2027 (the "3.75% Senior Notes"). In connection with the closing of the offering of the Senior Notes, the Company, the OP and their subsidiaries that guarantee the 3.75% Senior Notes entered into an indenture with U.S. Bank Trust Company, National Association, as successor to U.S. Bank National Association, as trustee (the "Indenture"). The 3.75% Senior Notes, which were issued at par, will mature on December 15, 2027 and accrue interest at a rate of 3.750% per year. Interest on the 3.75% Senior Notes is payable semi-annually in arrears on June 15 and December 15 of each year. The 3.75% Senior Notes do not require any principal payments prior to maturity.

As of June 30, 2025, the Company was in compliance with the covenants under the Indenture governing the 3.75% Senior Notes.

*4.50% Senior Notes*

The Company is a guarantor of the 4.50% Senior Notes (the "4.50% Senior Notes" and the indenture governing such notes, as supplemented from time to time, the "4.50% Senior Notes Indenture") issued by RTL and the RTL OP (the "4.50% Senior Note Issuers"). The assumption and guarantees made by the Company, the OP and certain of their subsidiaries (such entities, together with the existing subsidiary guarantors of RTL and the RTL OP, the "4.50% Senior Note Guarantors") were made pursuant to a supplemental indenture governing the 4.50% Senior Notes. The 4.50% Senior Notes were recorded at their estimated fair value in connection with the REIT Merger, resulting in the recording of a discount. This discount is being amortized as an increase to interest expense over the remaining term of the 4.50% Senior Notes. The 4.50% Senior Notes, which RTL issued on October 7, 2021, were issued at par, will mature on September 30, 2028 and accrue interest at a rate of 4.50% per year. Interest on the 4.50% Senior Notes is payable semi-annually in arrears on March 30 and September 30 of each year and they do not require any principal payments prior to maturity.

As of June 30, 2025, the Company and the issuers under the Indenture were in compliance with the covenants under the Indenture governing the 4.50% Senior Notes.

**Note 8 — Fair Value of Financial Instruments**

The Company determines fair value based on quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. This alternative approach also reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The guidance defines three levels of inputs that may be used to measure fair value:

*Level 1* — Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

*Level 2* — Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability and those inputs are significant.

*Level 3* — Unobservable inputs that reflect the entity's own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.

The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare.

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with those derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of June 30, 2025 and December 31, 2024, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of the Company's derivatives. The Company has determined that its derivative valuations, with the exception of the multi-tenant receivable, net, are classified in Level 2 of the fair value hierarchy. See *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u> — Multi-Tenant Retail Disposition* for additional information on the multi-tenant receivable, net.

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

The valuation of derivative instruments is determined using a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves and implied volatilities. In addition, credit valuation adjustments are incorporated into the fair values to account for the Company's potential nonperformance risk and the performance risk of the counterparties.

***Real Estate Investments Measured at Fair Value on a Non-Recurring Basis***

The Company recorded impairments for real estate investments during the three and six months ended June 30, 2025 and 2024 (see *<u>[Note 4](#i7565b63625e84b32a751be2cb251dad1_43)</u> — Real Estate Investments, Net* for additional information on impairment charges recorded by the Company). The impairments were based on the estimated selling prices, less selling costs, of the impaired properties. The carrying value of these impaired real estate investments on the consolidated balance sheet represents their estimated fair value at the time of impairment.

Impaired real estate investments which are held for use are generally classified in Level 3 of the fair value hierarchy.

***Financial Instruments Measured at Fair Value on a Recurring Basis***

The following table presents information about the Company's assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024, aggregated by the level in the fair value hierarchy within which those instruments fall.

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In thousands)* | **Quoted Prices in Active Markets<br>Level 1** | **Significant Other Observable Inputs<br>Level 2** | **Significant Unobservable Inputs<br>Level 3** | **Total** |
| **June 30, 2025** |  |  |  |  |
| Foreign currency forwards, net (GBP & EUR) | $— | $(8509) | $— | $(8509) |
| Interest rate swaps, net (USD & EUR) | $— | $(2279) | $— | $(2279) |
| Multi-tenant disposition receivable | $— | $— | $90214 | $90214 |
| **December 31, 2024** |  |  |  |  |
| Foreign currency forwards, net (GBP & EUR) | $— | $1583 | $— | $1583 |
| Interest rate swaps, net (USD,GBP & EUR) | $— | $(2831) | $— | $(2831) |

---

A review of the fair value hierarchy classification is conducted on a quarterly basis. Changes in the type of inputs may result in a reclassification for certain assets. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the six months ended June 30, 2025 and year ended December 31, 2024.

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

The change in Level 3 assets was as follows for the periods presented:

---

| | | |
|:---|:---|:---|
| *(In thousands)* | **Three Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| **Beginning balance** | $108729 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Net receivable recorded for the First Closing |  | 106714 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net receivable recorded for the Second Closing | 5484 | 5484 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net receivable recorded for the Third Closing | 14406 | 14406 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gain (loss) | (8165) | (6150) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash received for open and operating leases | (22624) | (22624) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized gain (loss) <sup>(1)</sup> | (7616) | (7616) |
| **Ending balance** | $90214 | $90214 |

---

__________

<sup>(1)</sup> Realized losses includes write-offs for tenants that are not yet open and operating, or tenants that opened and began operations for which the Company has or have not received cash proceeds. For additional information on the multi-tenant disposition receivable, see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u> —Multi-Tenant Retail Disposition.* 

***Financial Instruments not Measured at Fair Value***

The carrying value of short-term financial instruments such as cash and cash equivalents, restricted cash, due to/from related parties, prepaid expenses and other assets, accounts payable, accrued expenses and dividends payable approximates their fair value due to their short-term nature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As of June 30, 2025, the Company's mortgage notes payable had a gross carrying value of $1.4 billion and a fair value of $1.3 billion. As of December 31, 2024 the Company's mortgage notes payable had a gross carrying value of $2.3 billion and a fair value of $2.2 billion. This approach relies on unobservable inputs and therefore is classified as Level 3 in the fair value hierarchy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As of June 30, 2025, the advances to the Company under the Revolving Credit Facility had a carrying value of $0.7 billion and a fair value of $0.7 billion. As of December 31, 2024, the advances to the Company under the Revolving Credit Facility had a carrying value of $1.4 billion and a fair value of $1.4 billion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As of June 30, 2025, the 3.75% Senior Notes had a gross carrying value of $500.0 million and a fair value of $480.0 million. As of December 31, 2024, the 3.75% Senior Notes had a gross carrying value of $500.0 million and a fair value of $458.1 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As of June 30, 2025, the 4.50% Senior Notes had a gross carrying value of $500.0 million and a fair value of $485.0 million. As of December 31, 2024, the 4.50% Senior Notes had a gross carrying value of $500.0 million and a fair value of $458.8 million.

**Note 9 — Derivatives and Hedging Activities**

***Risk Management Objective of Using Derivatives***

The Company may use derivative financial instruments, including interest rate swaps, caps, options, floors and other interest rate derivative contracts to hedge all or a portion of the interest rate risk associated with its borrowings. Certain of the Company's foreign operations expose the Company to fluctuations of foreign interest rates and exchange rates. These fluctuations may impact the value of the Company's cash receipts and payments in terms of the Company's functional currency. The Company enters into derivative financial instruments to protect the value or fix the amount of certain obligations in terms of its functional currency, the USD.

The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company's operating and financial structure as well as to hedge specific anticipated transactions. The Company does not intend to utilize derivatives for speculative or other purposes other than interest rate and currency risk management. The use of derivative financial instruments carries certain risks, including the risk that any counterparty to a contractual arrangement may not be able to perform under the agreement. To mitigate this risk, the Company only enters into a derivative financial instrument with a counterparty with a high credit rating with a major financial institution, with which the Company and its affiliates may also have other financial relationships. The Company does not anticipate that any such counterparty will fail to meet its obligations, but there is no assurance that any counterparty will meet these obligations.

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated balance sheets as of June 30, 2025 and December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
| *(In thousands)* | **Balance Sheet Location** | **June 30,<br>2025** | **December 31,<br>2024** |
| **Derivatives designated as hedging instruments:** | **Derivatives designated as hedging instruments:** |  |  |
| Interest rate "pay-fixed" swaps (USD) | Derivative liabilities, at fair value | $— | $(1179) |
| Interest rate "pay-fixed" swaps (GBP) | Derivative liabilities, at fair value |  | (602) |
| Interest rate "pay-fixed" swaps (EUR) | Derivative assets, at fair value |  | 260 |
| Interest rate "pay-fixed" swaps (EUR) | Derivative liabilities, at fair value | (2279) | (1310) |
| &nbsp;&nbsp;&nbsp;Total |  | $(2279) | $(2831) |
| **Derivatives not designated as hedging instruments:** |  |  |  |
| Foreign currency forwards (GBP-USD) | Derivative assets, at fair value | $— | $1156 |
| Foreign currency forwards (GBP-USD) | Derivative liabilities, at fair value | (6319) | (628) |
| Foreign currency forwards (EUR-USD) | Derivative assets, at fair value |  | 1055 |
| Foreign currency forwards (EUR-USD) | Derivative liabilities, at fair value | (2190) |  |
| &nbsp;&nbsp;&nbsp;Total |  | $(8509) | $1583 |

---

***Cash Flow Hedges of Interest Rate Risk***

The Company's objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

All of the changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income ("AOCI") and are subsequently reclassified into earnings in the period that the hedged forecasted transaction impacts earnings. During the three and six months ended June 30, 2025, such derivatives were used to hedge the variable cash flows associated with variable-rate debt.

Amounts reported in AOCI related to derivatives are reclassified to interest expense as interest payments are made on the Company's variable-rate debt. During the next 12 months ending June 30, 2026, the Company estimates that $1.1 million will be reclassified from other comprehensive income as an increase to interest expense.

In the first quarter of 2025 the Company accelerated the reclassification of amounts in other comprehensive income to earnings as a result of certain hedged forecasted transactions becoming probable not to occur. The accelerated amount was a loss of $3.7 million, and is presented in the unrealized (losses) gains undesignated foreign currency advances and other hedge ineffectiveness line item in the Company's consolidated statement of operations for the six months ended June 30, 2025.

As of June 30, 2025 and December 31, 2024, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|<br>**Derivatives** | **Number of <br>Instruments** | **Notional Amount** | **Number of <br>Instruments** | **Notional Amount** |
|  |  | *(In thousands)* |  | *(In thousands)* |
| Interest rate "pay-fixed" swaps (GBP) |  | $— | 3 | $250718 |
| Interest rate "pay-fixed" swaps (EUR) | 9 | 363098 | 9 | 321178 |
| Interest rate "pay-fixed" swaps (USD) |  |  | 9 | 600000 |
| &nbsp;&nbsp;&nbsp;Total | 9 | $363098 | 21 | $1171896 |

---

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

The table below details the location in the consolidated financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the three and six months ended June 30, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>*(In thousands)* | **2025** | **2024** | **2025** | **2024** |
| Amount of (loss) gain recognized in AOCI from derivatives  | $982 | $7390 | $1868 | $14382 |
| Amount of loss reclassified from AOCI into income as interest expense | $151 | $4806 | $(2654) | $8437 |
| Total interest expense recorded in the consolidated statements of operations | $53348 | $71984 | $106785 | $136577 |

---

***Net Investment Hedges***

The Company is exposed to fluctuations in foreign currency exchange rates on property investments in foreign countries which pay rental income, incur property related expenses and borrow in currencies other than its functional currency, the USD. For derivatives designated as net investment hedges, all of the changes in the fair value of the derivatives, including the ineffective portion of the change in fair value of the derivatives, if any, are reported in AOCI (outside of earnings) as part of the cumulative translation adjustment. Amounts are reclassified out of AOCI into earnings when the hedged net investment is either sold or substantially liquidated. As of June 30, 2025 and December 31, 2024 the Company did not have foreign currency derivatives that were designated as net investment hedges used to hedge its net investments in foreign operations and during the six months ended June 30, 2025 and the year ended December 31, 2024, the Company did not use foreign currency derivatives that were designated as net investment hedges.

<u>Foreign Denominated Debt Designated as Net Investment Hedges</u>

All foreign currency denominated borrowings under the Revolving Credit Facility are designated as net investment hedges. As such, the designated portion of changes in value due to currency fluctuations are reported in AOCI (outside of earnings) as part of the cumulative translation adjustment. The remeasurement gains and losses attributable to the undesignated portion of the foreign currency denominated debt are recognized directly in earnings. Amounts are reclassified out of AOCI into earnings when the hedged net investment is either sold or substantially liquidated, or if the Company should no longer possess a controlling interest. The Company records adjustments to earnings for currency impacts related to undesignated excess positions, if any. During the three and six months ended June 30, 2025, the Company recorded losses of $6.3 million and $9.0 million, respectively, due to currency changes on the undesignated excess foreign currency advances over the related net investments. During the three and six months ended June 30, 2024, the Company recorded gains of $0.3 million and $1.3 million, respectively, due to currency changes on the undesignated excess foreign currency advances over the related net investments. These amounts are recorded in unrealized (losses) gains undesignated foreign currency advances and other hedge ineffectiveness in the Company's consolidated statements of operations.

***Non-designated Derivatives***

The Company is exposed to fluctuations in the exchange rates of its functional currency, the USD, against the GBP and the EUR. The Company has used and may continue to use foreign currency derivatives, including options, currency forward and cross currency swap agreements, to manage its exposure to fluctuations in GBP-USD and EUR-USD exchange rates. While these derivatives are economically hedging the fluctuations in foreign currencies, they do not meet the strict hedge accounting requirements to be classified as hedging instruments. Changes in the fair value of derivatives not designated as hedges under qualifying hedging relationships are recorded directly in net income (loss). The Company recorded a loss on derivative instruments of $8.8 million and $12.7 million, respectively, for the three and six months ended June 30, 2025, and gains of $0.5 million and $2.1 million for the three and six months ended June 30, 2024, respectively.

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

As of June 30, 2025 and December 31, 2024, the Company had the following outstanding derivatives that were not designated as hedges under qualifying hedging relationships.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|<br>**Derivatives** | **Number of <br>Instruments** | **Notional Amount** | **Number of <br>Instruments** | **Notional Amount** |
|  |  | *(In thousands)* |  | *(In thousands)* |
| Foreign currency forwards (GBP-USD) | 36 | $107656 | 30 | $69574 |
| Foreign currency forwards (EUR-USD) | 24 | 39339 | 19 | 29085 |
| &nbsp;&nbsp;&nbsp;Total | 60 | $146995 | 49 | $98659 |

---

***Offsetting Derivatives***

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of June 30, 2025 and December 31, 2024. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the accompanying consolidated balance sheets.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **Gross Amounts Not Offset on the Balance Sheet** | **Gross Amounts Not Offset on the Balance Sheet** | |
|<br>*(In thousands)* |<br>**Gross Amounts of Recognized Assets** |<br>**Gross Amounts of Recognized (Liabilities)** |<br>**Gross Amounts Offset on the Balance Sheet** |<br>**Net Amounts of (Liabilities) Assets presented on the Balance Sheet** | **Financial Instruments** | **Cash Collateral Received (Posted)** |<br>**Net Amount** |
| June 30, 2025 | $— | (10788) |  | (10788) |  |  | $(10788) |
| December 31, 2024 | $2471 | (3719) |  | (1248) |  |  | $(1248) |

---

In addition to the above derivative arrangements, the Company also uses non-derivative financial instruments to hedge its exposure to foreign currency exchange rate fluctuations as part of its risk management program, including foreign denominated debt issued and outstanding with third parties to protect the value of its net investments in foreign subsidiaries against exchange rate fluctuations. The Company has drawn, and expects to continue to draw, foreign currency advances under the Revolving Credit Facility or, subsequent to August 6, 2025, the August 2025 Revolving Credit Facility to fund certain investments in the respective local currency which creates a natural hedge against the original equity invested in the real estate investments, removing the need for the final cross currency swaps.

***Credit-risk-related Contingent Features***

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations.

As of June 30, 2025, the Company did not have any counterparties where the net derivative fair value held by that counterparty was in a net liability position including accrued interest but excluding any adjustment for nonperformance. As of June 30, 2025, the Company had not posted any collateral related to these agreements and was not in breach of any agreement provisions. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value.

**Note 10 — Stockholders' Equity**

***Common Stock***

As of June 30, 2025 and December 31, 2024, the Company had 221,224,341 and 231,051,139, respectively, shares of Common Stock issued and outstanding, including Restricted Shares and excluding unvested restricted stock units ("RSUs") and performance stock units ("PSUs"). Unvested RSUs and PSUs may be settled in shares of Common Stock in the future.

On May 23, 2025, the Company filed an amendment to its charter to increase the amount of its authorized shares of Common Stock from 250,000,000 to 400,000,000.

<u>Share Repurchase Program</u>

On February 20, 2025, the Board authorized a share repurchase program for up to an aggregate amount of $300 million of

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

the Company's outstanding Common Stock (the "Share Repurchase Program"). Under the Share Repurchase Program, which does not have a stated expiration date, the Company may repurchase shares of Common Stock from time to time through open market purchases, including pursuant to Rule 10b5-1 pre-set trading plans and under Rule 10b-18 of the Securities Exchange Act of 1934, as amended, privately negotiated transactions, accelerated share repurchase transactions entered into with one or more counterparties or otherwise, in compliance with applicable securities laws and other legal requirements. The timing, volume, and nature of repurchases are subject to market conditions, applicable securities laws, and other factors, and the program may be amended, suspended or discontinued at any time.

During the three and six months ended June 30, 2025, the Company purchased 7,654,620 and 10,072,062 shares of Common Stock, respectively, for $56.5 million and $75.9 million, respectively.

<u>ATM Program — Common Stock</u>

The Company has an "at the market" equity offering program (the "Common Stock ATM Program") pursuant to which the Company may sell shares of Common Stock, from time to time, through its sales agents. In November 2022, the Company filed a new shelf registration statement and prospectus supplement covering the Common Stock ATM Program having an aggregate offering amount of up to $285.0 million, prior to the expiration of its previous registration statement, which had an aggregate offering amount of up to $500 million ($285.0 million was sold under the previous registration statement).

During the three and six months ended June 30, 2025 and 2024 the Company did not sell any shares of Common Stock through the Common Stock ATM Program.

***Preferred Stock***

The Company is currently authorized to issue up to 40,000,000 shares of preferred stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company has classified and designated 9,959,650 shares of its authorized Preferred Stock as authorized shares of Series A Preferred Stock, as of June 30, 2025 and December 31, 2024. The Company had 6,799,467 shares of Series A Preferred Stock issued and outstanding as of June 30, 2025 and December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company has classified and designated 11,450,000 shares of its authorized Preferred Stock as authorized shares of Series B Preferred Stock, as of June 30, 2025 and December 31, 2024. The Company had 4,695,887 shares of Series B Preferred Stock issued and outstanding as of June 30, 2025 and December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company has classified and designated 7,933,711 shares of its authorized Preferred Stock as authorized shares of Series D Preferred Stock, as of June 30, 2025. The Company had 7,933,711 shares of Series D Preferred Stock issued and outstanding as of June 30, 2025 and December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company has classified and designated 4,595,175 shares of its authorized Preferred Stock as authorized shares of Series E Preferred Stock, as of June 30, 2025. The Company had 4,595,175 shares of Series E Preferred Stock issued and outstanding as of June 30, 2025 and December 31, 2024.

<u>ATM Program — Series B Preferred Stock</u>

In December 2019, the Company established an "at the market" equity offering program for its Series B Preferred Stock (the "Series B Preferred Stock ATM Program") pursuant to which the Company may sell shares of Series B Preferred Stock, from time to time through its sales agents.

In November 2022, the Company filed a new shelf registration statement and prospectus supplement covering the Series B Preferred Stock ATM Program having an aggregate offering price of up to $170.0 million, prior to the expiration of its previous registration statement, which had an aggregate offering price up to $200.0 million.

During the three and six months ended June 30, 2025 and 2024, the Company did not sell any shares of its Series B Preferred Stock through the Series B Preferred Stock ATM Program.

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

***Dividends***

<u>Common Stock Dividends</u>

In October 2023, the Board approved an annual dividend rate of $1.42 per share, or $0.354 per share on a quarterly basis. The first dividend paid at this rate occurred on October 16, 2023 and, accordingly, during the three months ended March 31, 2024, the Company paid dividends at this rate as well.

In February 2024, the Board approved a dividend policy that reduced the Company's Common Stock dividend rate to an annual rate of $1.10 per share, or $0.275 per share on a quarterly basis, which became effective with the Common Stock Dividend declared and paid in April 2024 and was still effective through January 2025.

On February 27, 2025, the Company announced that the Board planned to reduce the quarterly dividend per share of Common Stock from $0.275 to $0.190 per share, representing an annual dividend rate of $0.76 per share. The new Common Stock dividend rate became effective with the Common Stock dividend declared in April 2025. The reduction of the dividend rate is expected to yield benefits to the Company, including increasing the amount of cash that may be used to lower leverage.

Dividends authorized by the Board and declared by the Company are paid on a quarterly basis in arrears during the first month following the end of each fiscal quarter (unless otherwise specified) to common stockholders of record on the record date for such payment. The Board may alter the amounts of dividends paid or suspend dividend payments at any time prior to declaration and therefore dividend payments are not assured. For purposes of the presentation of information herein, the Company may refer to distributions by the OP on Class A Units and GNL LTIP Units as dividends. In addition, see *<u>[Note 6](#i7565b63625e84b32a751be2cb251dad1_49)</u> — Revolving Credit Facility* for additional information on the restrictions on the payment of dividends and other distributions imposed by the Revolving Credit Facility.

<u>Series A Preferred Stock Dividends</u>

Dividends on Series A Preferred Stock accrue in an amount equal to $0.453125 per share per quarter to Series A Preferred Stockholders, which is equivalent to 7.25% of the $25.00 liquidation preference per share of Series A Preferred Stock per annum. Dividends on the Series A Preferred Stock are payable quarterly in arrears on the 15th day of January, April, July and October of each year (or, if not on a business day, on the next succeeding business day) to holders of record at the close of business on the record date set by the Board.

<u>Series B Preferred Stock Dividends</u>

Dividends on Series B Preferred Stock accrue in an amount equal to $0.4296875 per share per quarter to Series B Preferred Stockholders, which is equivalent to 6.875% of the $25.00 liquidation preference per share of Series B Preferred Stock per annum. Dividends on the Series B Preferred Stock are payable quarterly in arrears on the 15th day of January, April, July and October of each year (or, if not on a business day, on the next succeeding business day) to holders of record at the close of business on the record date set by the Board.

<u>Series D Preferred Stockholders</u>

Dividends on the Company's Series D Preferred Stock accrue in an amount equal to $0.46875 per share per quarter to Series D Preferred Stockholders, which is equivalent to the rate of 7.50% of the $25.00 liquidation preference per share per annum. Dividends on the Series D Preferred Stock are payable quarterly in arrears on the 15th day of each of January, April, July and October of each year (or, if not a business day, the next succeeding business day) to holders of record on the applicable record date.

<u>Series E Preferred Stockholders</u>

Dividends on the Company's Series E Preferred Stock accrue in an amount equal to $0.4609375 per share per quarter to Series E Preferred Stockholders, which is equivalent to the rate of 7.375% of the $25.00 liquidation preference per share per annum. Dividends on the Series E Preferred Stock are payable quarterly in arrears on the 15th day of each of January, April, July and October of each year (or, if not a business day, the next succeeding business day) to holders of record on the applicable record date.

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

**Note 11 — Commitments and Contingencies**

***Litigation and Regulatory Matters***

In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. There are no material legal or regulatory proceedings pending or known to be contemplated against the Company.

***Environmental Matters***

In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. As of June 30, 2025, the Company had not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition that it believes will have a material adverse effect on the results of operations.

**Note 12 — Equity-Based Compensation** 

***Incentive Plans***

***2025 Omnibus Incentive Compensation Plan***

At the Company's 2025 annual meeting of stockholders held on May 22, 2025, the Company's stockholders approved the 2025 Omnibus Incentive Compensation Plan of Global Net Lease, Inc. (the "2025 Equity Plan"). The 2025 Equity Plan is a successor to the Company's 2021 Omnibus Incentive Compensation Plan (the "2021 Equity Plan"), which was approved by the Company's stockholders at the 2021 annual meeting of stockholders held on April 12, 2021.

The Company replaced the 2021 Equity Plan as a result of its prior grant of equity awards representing, in the aggregate, the entirety of the 6,300,000 shares of Common Stock reserved for issuance under the 2021 Equity Plan. Because the Company granted awards representing, in the aggregate, the entirety of the shares of Common Stock reserved for issuance under the 2021 Equity Plan, it could no longer make additional awards under the 2021 Equity Plan. The employees of the Former Advisor and its affiliates were also eligible to participate in the Company's employee and director incentive restricted share plan (the "Restricted Share Plan").

Upon approval of the 2025 Equity Plan, the total number of shares of Common Stock that are available for issuance or subject to awards is 8,000,000. Awards under the 2025 Equity Plan may be made in the form of Restricted Shares, RSUs, stock options, stock appreciation rights, performance awards (which may be either performance share units, performance units, or performance-based restricted stock), awards of shares not subject to forfeiture or other conditions, LTIP Units and other equity awards. Awards may be granted under the 2025 Equity Plan through May 22, 2035, 10 years following the date the Company's stockholders approved the 2025 Equity Plan.

Generally, directors, officers, employees, and consultants of the Company are eligible to participate in the 2025 Equity Plan.

<u>RSUs</u>

RSUs represent a contingent right to receive shares of Common Stock at a future settlement date, subject to satisfaction of applicable vesting conditions or other restrictions and an award agreement evidencing the grant of RSUs. The RSUs provide for vesting on a straight-line basis over a specified period of time for each award. RSUs may not, in general, be sold or otherwise transferred until restrictions are removed and the RSUs are settled in, or converted into, the shares of Common Stock. The fair value of the RSUs granted is based on the market price of Common Stock as of the grant date. The fair value of the equity awards is expensed over the vesting period.

The following table reflects the activity of RSUs outstanding for the periods presented:

---

| | | |
|:---|:---|:---|
|  | **Number of RSUs** | **Weighted-Average Issue Price** |
| Unvested, December 31, 2024 | 1248179 | $7.89 |
| Vested | (342406) | 7.96 |
| Granted | 986582 | 7.39 |
| Forfeitures | (21237) | 8.16 |
| Unvested, June 30, 2025 | 1871118 | 7.61 |

---

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Number of RSUs** | **Weighted-Average Issue Price** |
| Unvested, December 31, 2023 | 535768 | $9.09 |
| Vested | (36108) | 10.77 |
| Granted | 642152 | 7.52 |
| Forfeitures | (18960) | 8.23 |
| Unvested, June 30, 2024 | 1122852 | 8.15 |

---

The fair value of the RSUs granted is based on the market price of Common Stock as of the grant date. The fair value of the equity awards is expensed over the vesting period.

<u>Restricted Shares</u>

Restricted Shares are shares of Common Stock awarded under terms that provide for vesting over a specified period of time. Holders of Restricted Shares receive nonforfeitable cash dividends prior to the time that the restrictions on the Restricted Shares have lapsed. Any dividends to holders of Restricted Shares payable in shares of Common Stock are subject to the same restrictions as the underlying Restricted Shares. Restricted Shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested.

The Restricted Shares granted to the then employees of the Former Advisor or its affiliates vest in 25% increments on each of the first four anniversaries of the grant date. Except in connection with a change in control (as defined in the award agreement) of the Company, any unvested Restricted Shares will be forfeited if the holder's employment terminates for any reason. Upon a change in control of the Company, 50% of the unvested Restricted Shares will immediately vest and the remaining unvested Restricted Shares will be forfeited.

The following table reflects the activity of Restricted Shares outstanding for the periods presented that impacted the Company:

---

| | | |
|:---|:---|:---|
|  | **Number of Restricted Shares** | **Weighted-Average Issue Price** |
| Unvested, December 31, 2024 | 334642 | $11.88 |
| Vested | (153195) | 9.61 |
| Granted |  |  |
| Forfeitures | (11249) | 10.22 |
| Unvested, June 30, 2025 | 170198 | 14.03 |

---

---

| | | |
|:---|:---|:---|
|  | **Number of Restricted Shares** | **Weighted-Average Issue Price** |
| Unvested, December 31, 2023 | 565620 | $12.14 |
| Vested | (161619) | 13.29 |
| Granted |  |  |
| Forfeitures | (41716) | 10.95 |
| Unvested, June 30, 2024 | 362285 | 11.76 |

---

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

<u>PSUs</u>

In November 2023 and January 2025, the Compensation Committee approved awards of PSUs (the "2023 PSUs" and the "2025 PSUs", respectively) pursuant to the 2021 Equity Plan to full-time employees of the Company. PSUs may be earned and become vested if the Company's performance meets certain criteria (see below for more detail) over a three-year period performance period (the "PSU Performance Period").

*January 2025 Grant*

The PSU Performance Period for the 2025 PSUs began on January 1, 2025 and ends on December 31, 2027 (the "2025 PSU Measurement Date") and is generally subject to the applicable employee's continued employment through the 2025 PSU Measurement Date.

---

| | | | |
|:---|:---|:---|:---|
| | **Level of Performance** | **Level of Performance** | **Level of Performance** |
| | **Threshold** | **Target** | **Maximum** |
| Potential Number of 2025 PSUs to be Issued | 417,135 | 834,270 | 1,877,107 |

---

Under accounting rules, the total fair value of the 2025 PSUs granted at the maximum level under the 2021 Equity Plan totaled $6.2 million and was fixed as of January 10, 2025, the date that the Board approved the award of the 2025 PSUs under the 2021 Equity Plan (the "2025 PSU Grant Date"). The fair value will not be remeasured in subsequent periods unless the 2025 PSUs are amended or there is a change in the expectation for the three-year debt reduction (net debt to adjusted EBITDA) performance metric. The fair value of the 2025 PSUs that were granted is being recorded evenly over the requisite service period which is approximately 3.0 years from January 13, 2025, ending on the 2025 PSU Measurement Date.

<u>Performance Measures:</u>

The ultimate amount of 2025 PSUs that may become earned and vested on the 2025 PSU Measurement Date will equal the sum of: (i) 2025 PSUs earned based on the Company's debt reduction over a three year period; (ii) 2025 PSUs earned by comparing the Company's TSR to a custom designed net lease peer group consisting of Agree Realty Corporation, Broadstone Net Lease, Inc., EPR Properties, Essential Properties Realty Trust, Inc., Four Corners Property Trust, Inc., Getty Realty Corp., Gladstone Commercial Corporation, LXP Industrial Trust, NETSTREIT Corp., NNN REIT Inc., Orion Office REIT Inc., Peakstone Realty Trust and W.P. Carey Inc. (the "2025 Custom Net Lease Peer Group"); and (iii) 2025 PSUs earned by achievement of certain TSR levels (the "2025 Company TSR").

The following table details the number of 2025 PSUs that may be earned and vested on the 2025 PSU Measurement Date, by each category of performance goal:

---

| | | | |
|:---|:---|:---|:---|
| | **Target 2025 PSUs** | **Percentage of Target 2025 PSUs Earned** | **Number of 2025 PSUs Earned** |
| **<u>Three-Year Debt Reduction (Net Debt to Adjusted EBITDA)</u>** | | | |
| Net debt to adjusted EBITDA greater than 6.7x (Below Threshold) | 278090 | —% |  |
| Net debt to adjusted EBITDA of 6.7x (Threshold) <sup>(1)</sup> | 278090 | 50% | 139046 |
| Net debt to adjusted EBITDA of 6.5x (Target) <sup>(1)</sup> | 278090 | 100% | 278090 |
| Net debt to adjusted EBITDA of 6.3x or less (Maximum) <sup>(1)</sup> | 278090 | 225% | 625701 |
| **<u>Company TSR Relative to the Custom Net Lease Peer Group:</u>** |  |  |  |
| Less than 30th percentile (Below Threshold) | 278090 | —% |  |
| 30<sup>th</sup> percentile (Threshold) <sup>(1)</sup> | 278090 | 50% | 139046 |
| 55<sup>th</sup> percentile (Target) <sup>(1)</sup> | 278090 | 100% | 278090 |
| Equal to or greater than 75<sup>th</sup> percentile (Maximum) <sup>(1)</sup> | 278090 | 225% | 625701 |
| **<u>2025 Company TSR:</u>** |  |  |  |
| Less than 5% (Below Threshold) | 278090 | —% |  |
| 5% (Threshold) <sup>(1)</sup> | 278090 | 50% | 139047 |
| 8% (Target) <sup>(1)</sup> | 278090 | 100% | 278090 |
| 12% or greater (Maximum) <sup>(1)</sup> | 278090 | 225% | 625701 |

---

_________

<sup>(1)</sup> If amounts fall in between these ranges, the results will be determined using linear interpolation between those percentiles, respectively.

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

*November 2023 Grant*

The PSU Performance Period for the 2023 PSUs began on October 1, 2023 and ends on September 30, 2026 (the "2023 PSU Measurement Date") and generally subject to the applicable employee's continued employment through the 2023 PSU Measurement Date.

---

| | | | |
|:---|:---|:---|:---|
| | **Level of Performance** | **Level of Performance** | **Level of Performance** |
| | **Threshold** | **Target** | **Maximum** |
| Potential Number of 2023 PSUs to be Issued | 234,200 | 468,392 | 1,288,072 |

---

Under accounting rules, the total fair value of the 2023 PSUs granted at the maximum level under the 2021 Equity Plan totaled $5.1 million and was fixed as of November 29, 2023, the date that the Board approved the award of 2023 PSUs under the 2021 Equity Plan (the "2023 PSU Grant Date"). The fair value will not be remeasured in subsequent periods unless the 2023 PSUs are amended. The fair value of the 2023 PSUs that were granted is being recorded evenly over the requisite service period which is approximately 2.8 years from November 29, 2023, ending on the 2023 PSU Measurement Date.

<u>Performance Measures:</u>

The ultimate amount of 2023 PSUs that may become earned and vested on the 2023 PSU Measurement Date will equal the sum of: (i) 2023 PSUs earned by comparing the Company's TSR to the MSCI US REIT Index peer group (the "MSCI REIT Index"); (ii) 2023 PSUs earned by comparing the Company's TSR to a custom designed net lease peer group consisting of EPR Properties, LXP Industrial Trust, Broadstone Net Lease, Inc., NNN REIT, Inc. and W.P. Carey Inc. (the "2023 Custom Net Lease Peer Group"); and (iii) 2023 PSUs earned by achievement of certain TSR levels (the "2023 Company TSR").

The following table details the number of 2023 PSUs that may be earned and vested on the 2023 PSU Measurement Date, by each category of performance goal:

---

| | | | |
|:---|:---|:---|:---|
| | **Target 2023 PSUs** | **Percentage of Target 2023 PSUs Earned** | **Number of 2023 PSUs Earned** |
| **<u>Company TSR Relative to the MSCI REIT Index:</u>** | | | |
| Less than 30<sup>th</sup> percentile (Below Threshold) | 175647 | —% |  |
| 30<sup>th</sup> percentile (Threshold) <sup>(1)</sup> | 175647 | 50% | 87825 |
| 55<sup>th</sup> percentile (Target) <sup>(1)</sup> | 175647 | 100% | 175647 |
| Equal to or greater than 75<sup>th</sup> percentile (Maximum) <sup>(1)</sup> | 175647 | 275% | 483027 |
| **<u>Company TSR Relative to the Custom Net Lease Peer Group:</u>** |  |  |  |
| Less than 30th percentile (Below Threshold) | 175647 | —% |  |
| 30<sup>th</sup> percentile (Threshold) <sup>(1)</sup> | 175647 | 50% | 87825 |
| 55<sup>th</sup> percentile (Target) <sup>(1)</sup> | 175647 | 100% | 175647 |
| Equal to or greater than 75<sup>th</sup> percentile (Maximum) <sup>(1)</sup> | 175647 | 275% | 483027 |
| **<u>2023 Company TSR:</u>** |  |  |  |
| Less than 8% (Below Threshold) | 117098 | —% |  |
| 8% (Threshold) <sup>(1)</sup> | 117098 | 50% | 58551 |
| 10% (Target) <sup>(1)</sup> | 117098 | 100% | 117098 |
| 12% or greater (Maximum) <sup>(1)</sup> | 117098 | 275% | 322018 |

---

_________

<sup>(1)</sup> If amounts fall in between these ranges, the results will be determined using linear interpolation between those percentiles, respectively.

<u>Compensation Expense</u>

The combined compensation expense for RSUs, Restricted Shares and the 2023 and 2025 PSUs was $3.3 million and $6.4 million for the three and six months ended June 30, 2025, respectively. Compensation expense for these equity instruments is recorded as equity-based compensation in the accompanying consolidated statements of operations.

As of June 30, 2025, the Company had $11.7 million of unrecognized compensation cost related to RSUs granted, which is expected to be recognized over a weighted-average period of 2.0 years. As of June 30, 2025, the Company had $2.0 million of unrecognized compensation cost related to Restricted Share awards granted, which is expected to be recognized over a period of 1.9 years. As of June 30, 2025, the Company had $2.3 million of unrecognized compensation cost related to the 2023 PSUs granted, which is expected to be recognized over a period of 1.3 years, and as of June 30, 2025, the Company had unrecognized compensation cost of $5.1 million related to the 2025 PSUs, which is expected to be recognized over a period of 2.5 years.

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

**Note 13 *—* Leases**

***Lessor Arrangements***

As of June 30, 2025, the Company's leases had a weighted-average remaining lease term of 6.2 years.

During the quarter ended June 30, 2025, the Company sold two parcels of land that were leased to tenants and had qualified as financing leases. The income from these leases was not significant, and as a result of the sales, the Company no longer has any financing leases.

***Lessee Arrangements***

As of June 30, 2025, the Company leases land under 16 ground leases associated with certain properties and also has two operating leases for office space. The aggregate durations for the ground leases and operating leases range from 5.0 to 119 years as of June 30, 2025. The Company did not enter into any new ground or operating leases during the first nine months of 2024.

As of June 30, 2025 and December 31, 2024, the Company's balance sheets include ROU assets of $70.8 million and $66.2 million, respectively, and operating lease liabilities of $42.2 million and $40.1 million, respectively. In determining the operating ROU assets and lease liabilities for the Company's operating leases in accordance with lease accounting rules, the Company was required to estimate an appropriate incremental borrowing rate on a fully-collateralized basis for the terms of the leases. Since the terms of the Company's ground leases are significantly longer than the terms of borrowings available to the Company on a fully-collateralized basis, the Company's estimate of this rate required significant judgment.

As of June 30, 2025, the Company's ground leases and operating leases have a weighted-average remaining lease term of approximately 24.5 years and a weighted-average discount rate of 5.41%. For the three and six months ended June 30, 2025, the Company paid cash of approximately $0.7 million and $1.7 million, respectively, for amounts included in the measurement of lease liabilities and recorded expense of $0.4 million and $0.8 million, respectively, on a straight-line basis in accordance with the standard.

For the three and six months ended June 30, 2024, the Company paid cash of approximately $0.9 million and $1.7 million, respectively, for amounts included in the measurement of lease liabilities and recorded expense of $0.4 million and $0.7 million, respectively, on a straight-line basis in accordance with the standard.

The following table reflects the base cash rental payments due from the Company as of June 30, 2025:

---

| | |
|:---|:---|
| *(In thousands)* | **Future Base Rent Payments** <sup>(1)</sup> |
| 2025 Remainder | 1825 |
| 2026 | 3464 |
| 2027 | 3535 |
| 2028 | 3549 |
| 2029 | 3557 |
| Thereafter | 56504 |
| Total minimum lease payments <sup>(2)</sup> | 72434 |
| Less: Effects of discounting | (30190) |
| Total present value of lease payments | $42244 |

---

________

<sup>(1)</sup> Assumes exchange rates of £1.00 to $1.37 for GBP and €1.00 to $1.17 for EUR as of June 30, 2025 for illustrative purposes, as applicable.

<sup>(2)</sup> Ground lease rental payments due for the Company's ING Amsterdam lease are not included in the table above as the Company's ground rent for this property is prepaid through 2050.

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

**Note 14 — Earnings Per Share**

The following is a summary of the basic and diluted net loss per share computation for the periods presented:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>*(In thousands, except share and per share data)* | **2025** | **2024** | **2025** | **2024** |
| Loss from continuing operations | $(31858) | $(21743) | $(127026) | $(29108) |
| Preferred stock dividends | (10936) | (10936) | (21872) | (21872) |
| Adjustments to net loss attributable to common stockholders for common share equivalents | (599) | (168) | (946) | (402) |
| Adjusted net loss attributable to common stockholders - Continuing Operations | (43393) | (32847) | (149844) | (51382) |
| Income (loss) from discontinued operations | 7715 | (13921) | (86496) | (30307) |
| Adjusted net loss attributable to common stockholders | $(35678) | $(46768) | $(236340) | $(81689) |
| Weighted average common shares outstanding — Basic and Diluted | 222960030 | 230380574 | 226591693 | 230350148 |
| Net loss from continuing operations — Basic and Diluted | $(0.19) | $(0.14) | $(0.66) | $(0.22) |
| Net loss from discontinued operations — Basic and Diluted | 0.03 | (0.06) | $(0.38) | $(0.13) |
| Net loss per share attributable to common stockholders — Basic and Diluted | $(0.16) | $(0.20) | $(1.04) | $(0.35) |

---

Under current authoritative guidance for determining earnings per share, all unvested share-based payment awards that contain non-forfeitable rights to distributions are considered to be participating securities and therefore are included in the computation of earnings per share under the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common shares and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. The Company's unvested Restricted Shares, and certain of the Company's RSUs, contain rights to receive distributions considered to be non-forfeitable, except in certain limited circumstances, and therefore the Company applies the two-class method of computing earnings per share. The calculation of earnings per share above excludes the distributions to the unvested Restricted Shares and RSUs from the numerator.

Diluted net income per share assumes the conversion of all Common Stock share equivalents into an equivalent number of shares of Common Stock, unless the effect is anti-dilutive. The Company considers unvested RSUs, unvested Restricted Shares and unvested PSUs to be common share equivalents.

The following table shows common share equivalents on a weighted average basis that were excluded from the calculation of diluted earnings per share for the three and six months ended June 30, 2025 and 2024 (see *<u>[Note 12](#i7565b63625e84b32a751be2cb251dad1_70)</u> — Equity-Based Compensation* for additional information on all of the common share equivalents listed in the table below):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Unvested RSUs <sup>(1)</sup> | 1885808 | 1065245 | 1815148 | 843200 |
| Unvested Restricted Shares <sup>(2)</sup> | 267269 | 452343 | 298119 | 507034 |
| Unvested PSUs <sup>(3)</sup> | 3165179 | 1288072 | 3030359 | 1288072 |
| Class A Units <sup>(4)</sup> |  | 115857 |  | 115857 |
| Total common share equivalents excluded from calculation | 5318256 | 2921517 | 5143626 | 2754163 |

---

<sup>(1)</sup> There were 1,871,118 and 1,122,852 unvested RSUs issued and outstanding as of June 30, 2025 and 2024, respectively.

<sup>(2)</sup> There were 170,198 and 362,285 unvested Restricted Shares issued and outstanding as of June 30, 2025 and 2024, respectively.

<sup>(3)</sup> There were 3,165,179 PSUs outstanding as of June 30, 2025 and 1,288,072 outstanding as of June 30, 2024.

<sup>(4)</sup> There were no Class A units outstanding as of June 30, 2025 and 115,857 outstanding as of June 30, 2024.

No PSU share equivalents were included in the calculation for the three and six months ended June 30, 2025 and 2024 since their impact was anti-dilutive.

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

**Note 15 — Segment Reporting**

As a result of the agreement to sell 100 of the 101 properties in its Multi-Tenant Retail segment in connection with the Multi-Tenant Retail Disposition, the Company determined, during the first quarter of 2025, that it has three remaining reportable segments based on property type: (1) Industrial & Distribution, (2) Retail and (3) Office. Previously, during the year ended December 31, 2024, the Company concluded it was operating in four segments.

Due to the classification of the Multi-Tenant Retail Portfolio as a discontinued operation, the segment disclosure tables below separately present the results of these properties within loss from discontinued operations, and they present the related assets separately as assets related to discontinued operations (for additional information, see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>* — *Multi-Tenant Retail Disposition).* Prior periods have been conformed to the discontinued operations classification.

Amounts for the one Multi-Tenant Retail property that was not included in the Multi-Tenant Retail Disposition have been reclassified and included in the Retail segment for all periods in the tables below.

The Company evaluates performance and makes resource allocations based on its three business segments. The Company is reporting its business segments using the "management approach" model for segment reporting, whereby the Company determines its reportable business segments based on the way the chief operating decision maker organizes business segments within the Company for making operating decisions and assessing financial performance. The Company's chief operating decision maker, who is the Company's Chief Executive Officer and President, receives and reviews financial information based on the Company's three segments. The Company evaluates business segment performance based upon net operating income, which is defined as total revenues from tenants, less property operating costs. The segments are managed separately due to the property type and the accounting policies are consistent across each segment. See below for a description of net operating income.

*Net Operating Income*

The Company evaluates the performance of the combined properties in each segment based on total revenues from tenants, less property operating costs. As such, this excludes all other items of expense and income included in the financial statements in calculating net income (loss). The Company uses net operating income at the segment level to assess and compare property level performance and to make decisions concerning the operation of the properties. The Company believes that the net operating income of each segment is useful as a performance measure because, when compared across periods, the net operating income of each segment reflects the impact on operations from trends in occupancy rates, rental rates, operating expenses and acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net income (loss).

The net operating income of each segment excludes certain components from net income (loss) in order to provide results that are more closely related to a property's results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, do not impact operating performance at the property level. The net operating income of the Company's segments presented by the Company may not be comparable to similar measures reported by other REITs that define net operating income differently.

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

The following table provides operating financial information for the Company's reportable segments:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>*(In thousands)* | **2025** | **2024** | **2025** | **2024** |
| **Industrial & Distribution:** |  |  |  |  |
| &nbsp;&nbsp;Revenue from tenants | $54997 | $61437 | $113008 | $123432 |
| &nbsp;&nbsp;Property operating expense | 4235 | 4916 | 9507 | 9566 |
| &nbsp;&nbsp;&nbsp;**Net Operating Income** | $**50762** | $**56521** | $**103501** | $**113866** |
| **Retail** <sup>(1), (2)</sup>**:** |  |  |  |  |
| &nbsp;&nbsp;Revenue from tenants | $35357 | $40686 | $72314 | $83281 |
| &nbsp;&nbsp;Property operating expense | 3002 | 4032 | 6893 | 9124 |
| &nbsp;&nbsp;&nbsp;**Net Operating Income** | $**32355** | $**36654** | $**65421** | $**74157** |
| **Office** <sup>(2)</sup>**:** |  |  |  |  |
| &nbsp;&nbsp;Revenue from tenants | $34551 | $34671 | $71998 | $69767 |
| &nbsp;&nbsp;Property operating expense | 4781 | 4120 | 9571 | 9378 |
| &nbsp;&nbsp;&nbsp;**Net Operating Income** | $**29770** | $**30551** | $**62427** | $**60389** |
| **Multi-Tenant Retail** <sup>(3)</sup>**:** |  |  |  |  |
| &nbsp;&nbsp;Revenue from tenants | $— | $8670 | $— | $16864 |
| &nbsp;&nbsp;Property operating expense |  | 2866 |  | 5662 |
| &nbsp;&nbsp;&nbsp;**Net Operating Income** | $**—** | $**5804** | $**—** | $**11202** |

---

_________

<sup>(1)</sup> Amounts in the Retail segment reflect the reclassification and inclusion of one property that was previously part of the Multi-Tenant Retail segment, which was not included in the Multi-Tenant Retail Disposition.

<sup>(2)</sup> Prior period amounts in the Retail segment and Office segment reflect changes to the reclassification of one tenant from the Office segment to the Retail segment to conform to the current year presentation based on a re-evaluation of the property type.

<sup>(3)</sup> Reflects former Multi-Tenant Retail properties that were sold individually prior to December 31, 2024. Does not include the Multi-Tenant Retail Portfolio which is presented as a discontinued operation (see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>* — *Multi-Tenant Retail Disposition* for additional information).

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

**Reconciliation to Consolidated Financial Information**

A reconciliation of the total reportable segment's revenue from tenants to consolidated revenue from tenants and the total reportable segment's net operating income to consolidated net (loss) income before taxes and consolidated net (loss) income attributable to common stockholders is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>*(In thousands)* | **2025** | **2024** | **2025** | **2024** |
| **Revenue From Tenants:** |  |  |  |  |
| &nbsp;&nbsp; Industrial & Distribution | $54997 | $61437 | $113008 | $123432 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail <sup>(1) (2)</sup> | 35357 | 40686 | 72314 | 83281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office <sup>(2)</sup> | 34551 | 34671 | 71998 | 69767 |
| &nbsp;&nbsp;&nbsp;Multi-Tenant Retail <sup>(3)</sup> |  | 8670 |  | 16864 |
| &nbsp;&nbsp;&nbsp; **Total Consolidated Revenue From Tenants** | $**124905** | $**145464** | $**257320** | $**293344** |
| **Net (loss) income before income tax and net (loss) income attributable to common stockholders:** |  |  |  |  |
| Net Operating Income: |  |  |  |  |
| &nbsp;&nbsp; Industrial & Distribution | $50762 | $56521 | $103501 | $113866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail <sup>(1) (2)</sup> | 32355 | 36654 | 65421 | 74157 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office <sup>(2)</sup> | 29770 | 30551 | 62427 | 60389 |
| &nbsp;&nbsp;&nbsp;Multi-Tenant Retail <sup>(3)</sup> |  | 5804 |  | 11202 |
| &nbsp;&nbsp;&nbsp; **Total net operating income** | 112887 | 129530 | 231349 | 259614 |
| Impairment charges | (9812) | (27402) | (70127) | (31729) |
| Merger, transaction and other costs | (2002) | (1576) | (3581) | (2329) |
| General and administrative | (11339) | (13746) | (27542) | (28409) |
| Equity-based compensation | (3338) | (2340) | (6431) | (4313) |
| Depreciation and amortization | (45636) | (56654) | (101970) | (113826) |
| Goodwill impairment |  |  | (7134) |  |
| Gain on dispositions of real estate investments | 1537 | 34114 | (141) | 39982 |
| Interest expense | (53348) | (71984) | (106785) | (136577) |
| Loss on extinguishment of debt | (4348) | (13089) | (4766) | (13147) |
| (Loss) Gain on derivative instruments | (8823) | 509 | (12679) | 2097 |
| Unrealized (loss) income on undesignated foreign currency advances and other hedge ineffectiveness | (6324) | 300 | (12675) | 1332 |
| Other income | 1683 | 345 | 1731 | 305 |
| **Net loss before income tax** | (28863) | (21993) | (120751) | (27000) |
| Income tax (expense) benefit | (2995) | 250 | (6275) | (2108) |
| Loss from continuing operations | (31858) | (21743) | (127026) | (29108) |
| Income (loss) from discontinued operations | 7715 | (13921) | (86496) | (30307) |
| **Net loss** | (24143) | (35664) | (213522) | (59415) |
| Preferred stock dividends | (10936) | (10936) | (21872) | (21872) |
| **Net loss attributable to common stockholders** | $**(35079)** | $**(46600)** | $**(235394)** | $**(81287)** |

---

_________

<sup>(1)</sup> Amounts in the Retail segment reflect the reclassification and inclusion of one property that was previously part of the Multi-Tenant Retail segment, which was not included in the Multi-Tenant Retail Disposition.

<sup>(2)</sup> Prior period amounts in the Retail segment and Office segment reflect changes to the reclassification of one tenant from the Office segment to the Retail segment to conform to the current year presentation based on a re-evaluation of the property type.

<sup>(3)</sup> Reflects former Multi-Tenant Retail properties that were sold individually prior to December 31, 2024. Does not include the Multi-Tenant Retail Portfolio which is presented as a discontinued operation (see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>* — *Multi-Tenant Retail Disposition* for additional information).

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

The following table reconciles real estate investments, net by segment to consolidated total assets as of the periods presented:

---

| | | |
|:---|:---|:---|
| *(In thousands)* | **June 30, 2025** <sup>(1)</sup> | **December 31, 2024** <sup>(1)</sup> |
| Investments in real estate, net: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial & Distribution | $2092925 | $2180309 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail <sup>(2)</sup>  | 1208582 | 1402600 |
| &nbsp;&nbsp;&nbsp;&nbsp;Office | 1064860 | 1039124 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investments in real estate, net | 4366367 | 4622033 |
| Real estate assets held for sale | 37496 | 17406 |
| Assets of discontinued operations | 2337 | 1816131 |
| Cash and cash equivalents | 144809 | 159698 |
| Restricted cash | 37339 | 64510 |
| Derivative assets, at fair value |  | 2471 |
| Unbilled straight line rent | 88368 | 89804 |
| Operating lease right-of-use asset | 70761 | 66163 |
| Prepaid expenses and other assets | 89293 | 51504 |
| Multi-tenant disposition receivable, net | 90214 |  |
| Deferred tax assets | 4906 | 4866 |
| Goodwill and other intangible assets, net | 46009 | 51370 |
| Deferred financing costs, net | 7017 | 9808 |
| **Total assets** | $4984916 | $6955764 |

---

_______

<sup>(1)</sup> Amounts reflect the presentation of the Multi-Tenant Retail Portfolio as a discontinued operation (see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>* — *Multi-Tenant Retail Disposition* for additional information).

<sup>(2)</sup> Amounts in the Retail segment reflect the reclassification and inclusion of one property that was previously part of the Multi-Tenant Retail segment, which was not included in the Multi-Tenant Retail Disposition.

***Geographic Information***

Other than the U.S. and United Kingdom, no country or tenant individually comprised more than 10% of the Company's annualized revenue from tenants on a straight-line basis, or total long-lived assets at June 30, 2025. The following tables present the geographic information for Revenue from tenants and Investments in real estate:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>*(In thousands)* | **2025** | **2024** | **2025** | **2024** |
| **Revenue from tenants:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;United States | $85882 | $108516 | $179234 | $219419 |
| &nbsp;&nbsp;&nbsp;United Kingdom | 20272 | 20965 | 44090 | 42028 |
| &nbsp;&nbsp;&nbsp;Europe | 17964 | 15188 | 32451 | 30295 |
| &nbsp;&nbsp;&nbsp;Canada | 787 | 795 | 1545 | 1602 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $124905 | $145464 | $257320 | $293344 |

---

------

**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

---

| | | |
|:---|:---|:---|
| *(In thousands)* | **June 30,<br>2025** | **December 31,<br>2024** |
| **Investments in real estate, gross:** |  |  |
| &nbsp;&nbsp;&nbsp;United States | $3922542 | $4231893 |
| &nbsp;&nbsp;&nbsp;United Kingdom | 864670 | 799624 |
| &nbsp;&nbsp;&nbsp;Europe | 597908 | 554133 |
| &nbsp;&nbsp;&nbsp;Canada | 38204 | 36292 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $5423324 | $5621942 |
| **Acquired Intangible Liabilities, Gross** |  |  |
| &nbsp;&nbsp;&nbsp;United States | $22835 | $30983 |
| &nbsp;&nbsp;&nbsp;United Kingdom | 6006 | 5279 |
| &nbsp;&nbsp;&nbsp;Europe | 12307 | 10669 |
| &nbsp;&nbsp;&nbsp;Canada | 20 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $41168 | $46950 |

---

**Note 16 — Subsequent Events**

The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q, and determined that there have not been any events that have occurred that would require adjustments to, or disclosures in the consolidated financial statements, except as disclosed in the applicable footnotes and below.

***Dispositions***

Subsequent to June 30, 2025, the Company disposed of 23 properties for an aggregate price of $22.7 million.

***Common Stock Repurchases***

Subsequent to June 30, 2025 (through August 6, 2025), the Company purchased 121,532 shares of its Common Stock under its Share Repurchase Program for $0.9 million.

***August 2025 Revolving Credit Facility***

On August 5, 2025, the OP, as borrower, and the Company and certain subsidiaries of the OP acting as guarantors, entered into the August 2025 Credit Agreement with BMO, as agent, and the other lender parties thereto. The proceeds of the transaction were used, in part, to prepay in full and terminate the existing Credit Agreement. The August 2025 Revolving Credit Facility consists solely of a senior unsecured multi-currency revolving credit facility similar to the Revolving Credit Facility, and the aggregate total commitments under the August 2025 Revolving Credit Facility are $1.8 billion ($100.0 million of which can only be used for U.S. dollar loans), with a $75.0 million sublimit for letters of credit. The August 2025 Credit Facility includes an uncommitted "accordion feature" whereby, so long as no default or event of default has occurred and is continuing, the Company has the right to increase the commitments under the August 2025 Revolving Credit Facility, allocated to either or both the August 2025 Revolving Credit Facility or a new term loan facility, by up to an additional $1.185 billion, subject to obtaining commitments from new lenders or additional commitments from participating lenders and certain customary conditions. The August 2025 Revolving Credit Facility matures on August 5, 2029, subject to the OP's right, subject to customary conditions, to extend the maturity date by up to two additional six-month terms.

Concurrently with the entry into the August 2025 Credit Agreement, the Company and the other guarantors entered into a number of guaranty agreements and a related contribution agreement, which governs contribution rights of such guarantors in the event any amounts become payable by them under the guaranty. The August 2025 Revolving Credit Facility is supported by a pool of eligible unencumbered properties that are owned by the subsidiaries of the OP that serve as guarantors, and the availability of borrowings under the August 2025 Revolving Credit Facility continues to be based on the value of a pool of eligible unencumbered real estate assets owned by the Company and compliance with various ratios related to those assets, and the August 2025 Credit Agreement also includes amendments to provisions governing the calculation of the value of the borrowing base under the existing Credit Agreement.

The August 2025 Revolving Credit Facility requires payments of interest only prior to maturity. Borrowings under the August 2025 Revolving Credit Facility bear interest at a variable rate per annum based on an applicable margin that varies

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**GLOBAL NET LEASE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**(Unaudited)** 

based on the ratio of consolidated total indebtedness to consolidated total asset value of the Company and its subsidiaries plus either (i) the Base Rate (as defined in the August 2025 Credit Agreement) or (ii) the applicable Benchmark rate (as defined in the August 2025 Credit Agreement) for the currency being borrowed. The applicable interest rate margin is based on a range from 0.15% to 0.75% per annum with respect to Base Rate borrowings under the August 2025 Revolving Credit Facility and 1.15% to 1.75% per annum with respect to Benchmark rate borrowings under the August 2025 Revolving Credit Facility (provided that the "floor" on the applicable Benchmark rate is 0%). These margin spreads reflect a reduction compared to the previously applicable spreads under the existing Credit Agreement. In addition, if the Company achieves an investment grade credit rating (as defined in the August 2025 Credit Agreement) from at least two rating agencies named in the August 2025 Credit Agreement, the OP can elect for the spread to be based on the credit rating of the Company.

The terms of the August 2025 Revolving Credit Facility are substantially similar to those under the existing Revolving Credit Facility, including various customary operating covenants and events of default. The August 2025 Credit Agreement also contains financial maintenance covenants with respect to maximum consolidated leverage, maximum consolidated secured leverage, minimum fixed charge coverage, maximum secured recourse debt, maximum unencumbered leverage, unencumbered interest coverage and minimum net worth; provided that if the Company achieves an investment grade credit rating from at least one rating agency, the financial maintenance covenants with respect to maximum secured recourse debt and minimum net worth shall no longer apply.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

The following discussion and analysis should be read in conjunction with the accompanying consolidated financial statements of Global Net Lease, Inc. and the notes thereto. As used herein, the terms "Company," "we," "our" and "us" refer to Global Net Lease, Inc., a Maryland corporation, including, as required by context, Global Net Lease Operating Partnership, L.P. (the "OP"), a Delaware limited partnership, and its subsidiaries.

**Forward-Looking Statements**

This Quarterly Report on Form 10-Q contains "forward-looking statements", as that term is defined under the Private Securities Litigation Reform Act of 1995 ("PSLRA"), Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements include statements regarding the intent, belief or current expectations of Global Net Lease, Inc. ("we," "our," or "us") and members of our management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "projects," "potential," "predicts," "expects," "plans," "intends," "would," "could," "should" or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those contemplated by such forward-looking statements. We believe these forward-looking statements are reasonable; however, you should not place undue reliance on any forward-looking statements, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.

These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the risks that any potential future acquisition or disposition by the Company is subject to market conditions, capital availability and timing considerations and may not be identified or completed on favorable terms, or at all. Some of the additional risks and uncertainties, although not all risks and uncertainties, that could cause the Company's actual results to differ materially from those presented in its forward-looking statements are set forth in the "Risk Factors" and "Quantitative and Qualitative Disclosures about Market Risk" in our Annual Report on Form 10-K for the year ended December 31, 2024, this and our other Quarterly Reports on Form 10-Q, and our other filings with the U.S. Securities and Exchange Commission (the "SEC"), as such risks, uncertainties and other important factors may be updated from time to time in the Company's subsequent reports.

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**Overview**

We are a real estate investment trust for United States ("U.S.") federal income tax purposes ("REIT") that focuses on acquiring and managing a global portfolio of strategically located commercial real estate properties.

During the six months ended June 30, 2025, we completed the sale of 99 of our multi-tenant retail properties to RCG Venture Holdings, LLC ("RCG") pursuant to a purchase and sale agreement, dated as of February 25, 2025 (the "Multi-Tenant Retail PSA"). Under the Multi-Tenant Retail PSA, we agreed to sell 100 multi-tenant retail properties (the "Multi-Tenant Retail Portfolio") to RCG (the "Multi-Tenant Retail Disposition"), however the tenant at one property, which was part of the Multi-Tenant Retail Portfolio, exercised its right of first refusal and decided to purchase the property from the Company. As a result, a total of 99 properties were ultimately sold to RCG and one property was sold to the tenant who exercised its right of first refusal.

Under the Multi-Tenant Retail PSA, the base purchase price was approximately $1.780 billion and the closing occurred in the following stages (collectively, the "Closings"):

&nbsp;&nbsp;&nbsp;&nbsp;• On March 25, 2025, we completed the sale of 59 unencumbered properties (the "First Closing").

&nbsp;&nbsp;&nbsp;&nbsp;• On June 10, 2025, we completed the sale of 28 encumbered properties (the "Second Closing").

&nbsp;&nbsp;&nbsp;&nbsp;• On June 18, 2025, we completed the sale of 12 encumbered properties (the "Third Closing").

&nbsp;&nbsp;&nbsp;&nbsp;• On June 30, 2025, we completed the sale of the one property whose tenant exercised its right of first refusal.

For additional information, see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>* — *Multi-Tenant Retail Disposition* to our consolidated financial statements in this Quarterly Report on Form 10-Q).

As of June 30, 2025, we owned 911 properties consisting of 44.0 million rentable square feet, which were 98% leased, with a weighted-average remaining lease term of 6.2 years. Based on the percentage of annualized rental income on a straight-line basis as of June 30, 2025, approximately 70% of our properties were located in the U.S. and Canada and approximately 30% were located in Europe. In addition, as of June 30, 2025, our portfolio was comprised of 47% Industrial & Distribution properties, 26% Retail properties and 27% Office properties. The percentages are calculated using annualized straight-line rent converted from local currency into the U.S. Dollar ("USD") as of June 30, 2025. The straight-line rent includes amounts for tenant concessions.

Our portfolio is leased to primarily "Investment Grade" rated tenants in well established markets in the U.S. and Europe. A total of 60% of our rental income on an annualized straight-line basis for leases in place as of June 30, 2025 was derived from Investment Grade rated tenants, comprised of 30% leased to tenants with an actual investment grade rating and 30% leased to tenants with an implied investment grade rating. For our purposes, "Investment Grade" includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied investment grade may include actual ratings of the tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant's obligation under the lease) or tenants that are identified as investment grade by using a proprietary Moody's analytical tool, which generates an implied rating by measuring an entity's probability of default. Ratings information is as of June 30, 2025.

**Critical Accounting Estimates**

For a discussion about our critical accounting estimates and policies, see the "Significant Accounting Estimates and Accounting Policies" section of our 2024 Annual Report on Form 10-K. Except for those required by new accounting pronouncements discussed in the section referenced below, there have been no material changes from these critical accounting estimates and policies.

***Recently Issued Accounting Pronouncements***

*See <u>[Note 2](#i7565b63625e84b32a751be2cb251dad1_37)</u> — Basis of Presentation — Recently Issued Accounting Pronouncements* to our consolidated financial statements in this Quarterly Report on Form 10-Q for further discussion.

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**Properties**

The following table represents a summary by segment of our portfolio of real estate properties as of June 30, 2025:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Annualized Straight-Line Rent** | **Annualized Straight-Line Rent** | **Annualized Base Rent** | **Annualized Base Rent** | **Square Feet** | **Square Feet** | | |
|<br>**Segment** |<br>**Number of Properties** | **Amount** | **%** | **Amount** | **%** | **Amount** | **%** |<br>**Occupancy** |<br>**Weighted-Average Remaining Lease Term (Years)** <sup>(1)</sup> |
|  |  | *(In thousands)* |  | *(In thousands)* |  | *(In thousands)* |  |  |  |
| Industrial & Distribution | 200 | $216472 | 47% | $211895 | 47% | 30490 | 69% | 99% | 6.4 |
| Retail | 647 | 117586 | 26% | 114547 | 26% | 6894 | 16% | 97% | 7.1 |
| Office | 64 | 121916 | 27% | 122043 | 27% | 6637 | 15% | 95% | 4.1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total | 911 | $455974 | 100% | $448485 | 100% | 44021 | 100% | 98% | 6.2 |

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__________

<sup>(1)</sup> If the portfolio has multiple properties with varying lease expirations, average remaining lease term is calculated on a weighted-average basis. Weighted average remaining lease term in years is calculated based on square feet as of June 30, 2025.

**Results of Operations**

As a result of the agreement to sell 100 of the 101 properties in our former Multi-Tenant Retail segment in connection with the Multi-Tenant Retail Disposition, we determined, during the first quarter of 2025, that we had three remaining reportable segments based on property type: (1) Industrial & Distribution, (2) Retail and (3) Office (for additional information, see *<u>[Note 15](#i7565b63625e84b32a751be2cb251dad1_79)</u> — Segment Reporting* to our consolidated financial statements included in this Quarterly Report on Form 10-Q).

In our Industrial & Distribution, Retail and Office segments, we own, manage and lease single-tenant properties where in addition to base rent, our tenants are required to pay for their property operating expenses or reimburse us for property operating expenses that we incur (primarily property insurance and real estate taxes). However, some limited property operating expenses that are not the responsibility of the tenant are absorbed by us. The main exceptions are properties leased to the Government Services Administration, which do not require the tenant to reimburse the costs.

Due to the classification of the Multi-Tenant Retail Portfolio as a discontinued operation, the tables below do not include the results of the Multi-Tenant Retail Portfolio, which are classified within loss from discontinued operations in our consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 (for additional information, see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>* — *Multi-Tenant Retail Disposition* to our consolidated financial statements included in this Quarterly Report on Form 10-Q)*.* 

***Comparison of the Three Months Ended June 30, 2025 and 2024*** 

*Net Loss Attributable to Common Stockholders*

Net loss attributable to common stockholders was $35.1 million for the three months ended June 30, 2025, as compared to $46.6 million for the three months ended June 30, 2024. The change in net loss attributable to common stockholders is discussed in detail for each line item of the consolidated statements of operations in the sections that follow.

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*Revenue from Tenants*

Consolidated revenue from tenants, detailed by reportable segment, is as follows:

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| | | |
|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** |
|<br>*(In thousands)* | **2025** | **2024** |
| **Revenue From Tenants:** |  |  |
| &nbsp;&nbsp;Industrial & Distribution | $54997 | $61437 |
| &nbsp;&nbsp;Retail | 35357 | 40686 |
| &nbsp;&nbsp;Office | 34551 | 34671 |
| &nbsp;&nbsp;Multi-Tenant Retail <sup>(1)</sup> |  | 8670 |
| &nbsp;&nbsp;&nbsp;**Total Consolidated Revenue From Tenants** | $**124905** | $**145464** |

---

<sup>__________</sup>

<sup>(1)</sup> Reflects former Multi-Tenant Retail properties that were sold individually prior to December 31, 2024. Does not include the Multi-Tenant Retail Portfolio which is presented as a discontinued operation (for additional information, see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>* — *Multi-Tenant Retail Disposition* to our consolidated financial statements included in this Quarterly Report on Form 10-Q).

<u>Industrial & Distribution</u>

Revenue from tenants in our Industrial & Distribution segment was $55.0 million and $61.4 million for the three months ended June 30, 2025 and 2024, respectively. The decrease in revenue from tenants was due to the loss of revenue of approximately $5.8 million from dispositions and lower revenue of approximately $0.6 million from other properties. The loss of revenue from dispositions primarily resulted from the sale of two groups of properties that were leased by two of our former tenants, which comprised $5.4 million of the decrease. There was minimal impact from the year-over-year change in average exchange rates during the three months ended June 30, 2025, when compared to the same period last year.

<u>Retail</u>

Revenue from tenants in our Retail segment was $35.4 million and $40.7 million for the three months ended June 30, 2025 and 2024, respectively. The decrease was primarily driven by the loss of revenue of approximately $5.8 million from dispositions, partially offset by higher revenue from other properties of $0.5 million. The loss of revenue from dispositions was primarily related to four tenants which comprised approximately $5.0 million of the decrease. There was minimal impact from the year-over-year change in average exchange rates during the three months ended June 30, 2025, when compared to the same period last year.

<u>Office</u>

Revenue from tenants in our Office segment was $34.6 million and $34.7 million for the three months ended June 30, 2025 and 2024, respectively. The decrease in the second quarter of 2025, when compared to the same period last year, was primarily driven by the loss of revenue of approximately $2.7 million from dispositions, partially offset by higher revenue from other properties of $2.6 million. The loss of revenue from dispositions was primarily related to one property, which comprised approximately $2.5 million of the decrease. The year-over-year change in foreign exchange rates had a minimal impact.

*Property Operating Expenses*

Consolidated property operating expenses, detailed by reportable segment, is as follows:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** |
|<br>*(In thousands)* | **2025** | **2024** |
| **Property Operating Expenses:** |  |  |
| &nbsp;&nbsp;Industrial & Distribution | $4235 | $4916 |
| &nbsp;&nbsp;Retail | 3002 | 4032 |
| &nbsp;&nbsp;Office | 4781 | 4120 |
| &nbsp;&nbsp;Multi-Tenant Retail <sup>(1)</sup> |  | 2866 |
| &nbsp;&nbsp;&nbsp;**Total Consolidated Property Operating Expenses** | $**12018** | $**15934** |

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<sup>(1)</sup> Reflects former Multi-Tenant Retail properties that were sold individually prior to December 31, 2024. Does not include the Multi-Tenant Retail Portfolio which is presented as a discontinued operation (for additional information, see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>* — *Multi-Tenant Retail Disposition* to our consolidated financial statements included in this Quarterly Report on Form 10-Q).

<u>Industrial & Distribution</u>

Property operating expenses in our Industrial & Distribution segment were $4.2 million and $4.9 million for the three months ended June 30, 2025 and 2024, respectively. The decrease was due to lower costs of $0.4 million from properties owned in both periods due to the timing of our reimbursable costs and lower costs of $0.3 million from dispositions. There was minimal impact from the year-over-year change in average foreign exchange rates during the three months ended June 30, 2025, when compared to the same period last year.

<u>Retail</u> 

Property operating expenses in our Retail segment were $3.0 million and $4.0 million for the three months ended June 30, 2025 and 2024, respectively. The decrease in the second quarter of 2025 was primarily driven by lower costs of $1.2 million from properties sold, partially offset by an increase of $0.1 million from other properties. There was minimal impact from the year-over-year change in average exchange rates during the three months ended June 30, 2025, when compared to the same period last year.

<u>Office</u>

Property operating expenses in our Office segment were $4.8 million and $4.1 million for the three months ended June 30, 2025 and 2024, respectively. The increase in the second quarter of 2025 was driven by an increase of $1.3 million from properties owned in both periods, partially offset by lower costs of $0.6 million from properties sold. There was minimal impact from the year-over-year change in average exchange rates during the three months ended June 30, 2025, when compared to the same period last year.

*Impairment Charges*

During the three months ended June 30, 2025, we determined that 21 of our properties (20 of which were located in the U.S. and one was located in Europe) had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price less selling costs of such properties, and as a result, we recorded an impairment charge of approximately $9.8 million.

During the three months ended June 30, 2024, we determined that the fair values of six of our properties located in the U.S. (three of which were acquired in the acquisition of the Necessity Retail REIT, Inc. ("RTL") (the "REIT Merger"), had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price of such properties, and as a result, we recorded an impairment charge of approximately $27.4 million. The majority of the impairment charge in the second quarter of 2024 was due to legacy GNL properties.

*Merger, Transaction and Other Costs*

We recognized $2.0 million and $1.6 million of merger, transaction and other costs during the three months ended June 30, 2025 and 2024, respectively. Merger costs are only reflected in the three months ended June 30, 2024.

*General and Administrative Expenses*

General and administrative expenses were $11.3 million and $13.7 million for the three months ended June 30, 2025 and 2024, respectively, primarily consisting of employee compensation/payroll expenses, professional fees including audit and taxation services, board member compensation and directors' and officers' liability insurance. The overall decrease in general and administrative expenses was primarily due to higher transition costs in the 2024 period related to the REIT Merger and the internalization of our management functions in September 2023 (the "Internalization").

*Equity-Based Compensation* 

During the three months ended June 30, 2025 and 2024, we recognized equity-based compensation expense of $3.3 million and $2.3 million, respectively. Equity-based compensation in the quarter ended June 30, 2025 consisted of (i) amortization of restricted shares of Common Stock ("Restricted Shares") granted to employees of AR Global Investments, LLC, our former advisor (the "Former Advisor") or its affiliates who were involved in providing services to us prior to the Internalization; (ii) amortization of restricted stock units in respect of shares of Common Stock ("RSUs") granted to our employees and our independent directors; and (iii) amortization expense related to performance stock units ("PSUs"). The period over period increase in expense was attributable to RSUs and PSUs granted in late 2024 and early 2025.

For additional information related to our equity-based compensation, including with respect to the RSUs and PSUs granted in late 2024 and early 2025, see *<u>[Note 12](#i7565b63625e84b32a751be2cb251dad1_70)</u> — Equity-Based Compensation* to our consolidated financial statements in this Quarterly Report on Form 10-Q.

*Depreciation and Amortization*

Depreciation and amortization expense was $45.6 million and $56.7 million for the three months ended June 30, 2025 and 2024, respectively. The decrease was due to lower depreciation and amortization due to dispositions during 2025 and 2024.

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*Gain on Dispositions of Real Estate Investments*

During the three months ended June 30, 2025, we sold 94 properties (five Industrial and Distribution properties, 88 Retail properties and one Office property), not including the properties sold as part of the Multi-Tenant Retail Disposition, which are part of discontinued operations (see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>* — *Multi-Tenant Retail Disposition* to our consolidated financial statements included in this Quarterly Report on Form 10-Q), and as a result, recorded a net gain of $1.5 million.

During the three months ended June 30, 2024, we sold 36 properties, 34 of which were acquired in the REIT Merger, and recorded a net gain of $34.1 million.

*Interest Expense*

Interest expense was $53.3 million and $72.0 million for the three months ended June 30, 2025 and 2024, respectively. The decrease was due to lower gross debt outstanding and a lower weighted-average effective interest rate during the three months ended June 30, 2025. The amount of our total gross debt outstanding was $3.1 billion as of June 30, 2025, as compared to $5.1 billion as of June 30, 2024, primarily as a result of the strategic disposition initiative we initiated in 2024. The weighted-average effective interest rate of our total debt was 4.3% as of June 30, 2025 and 4.7% as of June 30, 2024.

The decrease in interest expense was also impacted by the year-over-year change in average foreign exchange rates during the three months ended June 30, 2025, when compared to the same period last year. As of June 30, 2025, approximately 19% of our total debt outstanding was denominated in EUR and 1% was denominated in Canadian Dollars ("CAD") (not including debt that will be assumed by the buyer in the Multi-Tenant Retail Disposition). As of June 30, 2024, approximately 10% of our total debt outstanding was denominated in EUR, 9% of our total debt outstanding was denominated in GBP and 1% was denominated in CAD.

We view a combination of secured and unsecured financing as an efficient and accretive means to acquire properties and manage working capital. As of June 30, 2025, approximately 44% of our total debt outstanding was secured and 56% was unsecured, the latter including amounts outstanding under our Revolving Credit Facility (as defined in *<u>[Note 6](#i7565b63625e84b32a751be2cb251dad1_49)</u> — Revolving Credit Facility* to our consolidated financial statements included in this Quarterly Report on Form 10-Q)*,* our $500.0 million aggregate principal amount of 3.75% Senior Notes due 2027 (the "3.75% Senior Notes") and $500.0 million aggregate principal amount of 4.50% Senior Notes due 2028 (the "4.50% Senior Notes").

The availability of borrowings under the Revolving Credit Facility and, subsequent to August 6, 2025, the August 2025 Revolving Facility (as defined below) is based on the value of a pool of eligible unencumbered real estate assets owned by us and compliance with various ratios related to those assets. Our interest expense in future periods will vary based on interest rates, the level of future borrowings, which will depend on refinancing needs and acquisition activity, and changes in currency exchange rates.

*Loss on Extinguishment of Debt*

The loss on extinguishment of debt was $4.3 million and $13.1 million during the quarters ended June 30, 2025 and June 30, 2024, respectively. The loss in the second quarter of 2025 primarily related to the accelerated amortization and fees related to the repayment of one of our mortgages in May of 2025. The amount in the second quarter of 2024 was primarily related to the fee required to be paid upon repayment of the mortgage loan that encumbered our McLaren properties in the U.K. This mortgage loan was assumed as part of our acquisition of the McLaren properties in 2021 and included the fee noted above in the terms of the mortgage.

*(Loss) Gain on Derivative Instruments* 

The loss of $8.8 million on derivative instruments for the three months ended June 30, 2025 and the gain of $0.5 million on derivative instruments for the three months ended June 30, 2024, reflect the marked-to-market impact from foreign currency and interest rate derivative instruments used to hedge the investment portfolio from currency and interest rate movements, and was mainly driven by exchange rate changes in the GBP and EUR compared to the USD. For the three months ended June 30, 2025, the loss on derivative instruments consisted of unrealized losses of $7.2 million and realized gains of $1.6 million. For the three months ended June 30, 2024, the gain on derivative instruments consisted of unrealized gains of $0.2 million and realized gains of $0.3 million. The overall gains (or losses) on derivative instruments directly impact our results of operations since they are recorded on the gain on derivative instruments line item in our consolidated results of operations. However, only the realized gains or losses are included in AFFO (as defined below).

As a result of our foreign investments in Europe, and, to a lesser extent, our investments in Canada, we are subject to risk from the effects of exchange rate movements in the EUR, GBP and CAD against the USD, which may affect costs and cash flows in our functional currency, the USD. We generally manage foreign currency exchange rate movements by matching our debt service obligation to the lender and the tenant's rental obligation to us in the same currency. This reduces our overall exposure to currency fluctuations. In addition, we may use currency hedging to further reduce the exposure to our net cash flow. We are generally a net receiver of these currencies (we receive more cash than we pay out), and therefore our results of operations of our foreign properties benefit from a weaker USD, and are adversely affected by a stronger USD, relative to the foreign currency. Conversely, realized gains from derivatives would generally be lower from a weaker USD, and higher from a

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stronger USD. We maintain our hedging approach by consistently entering into new foreign exchange forwards for three year periods. Interest rate increases could increase the interest expense on our floating rate debt or any new debt and we are constantly evaluating the use of hedging strategies to mitigate this risk.

See *<u>[Note 9](#i7565b63625e84b32a751be2cb251dad1_58)</u> — Derivatives and Hedging Activities* to our consolidated financial statements in this Quarterly Report on Form 10-Q for additional information on our hedging program.

*Unrealized (Losses) Gains on Undesignated Foreign Currency Advances and Other Hedge Ineffectiveness*

We recorded losses of $6.3 million and gains of $0.3 million on undesignated foreign currency advances and other hedge ineffectiveness during the quarters ended June 30, 2025 and 2024, respectively, related to the accelerated reclassification of amounts in accumulated other comprehensive loss to earnings.

*Income Tax Expense*

Although as a REIT we generally do not pay U.S. federal income taxes on the amount of REIT taxable income that is distributed to shareholders, we recognize income tax benefit (expense) domestically for state taxes and local income taxes incurred, if any, and also in foreign jurisdictions in which we own properties. In addition, we perform an analysis of potential deferred tax or future tax benefit and expense as a result of book and tax differences and timing differences in taxes across jurisdictions. Income tax expense was $3.0 million and income tax benefit was $0.3 million for the three months ended June 30, 2025 and 2024, respectively.

*Preferred Stock Dividends*

Preferred stock dividends were $10.9 million for the three months ended June 30, 2025 and 2024. The amounts in both periods represent the dividends that are attributable to holders of Series A Preferred Stock, Series B Preferred Stock, Series D Preferred Stock and Series E Preferred Stock.

***Comparison of the Six Months Ended June 30, 2025 and 2024*** 

As discussed above, due to the classification of the Multi-Tenant Retail Portfolio as a discontinued operation, the tables below do not include the results of the Multi-Tenant Retail Portfolio, which are classified within loss from discontinued operations in our consolidated statements of operations for the three months ended June 30, 2025 and 2024 (for additional information, see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>* — *Multi-Tenant Retail Disposition* to our consolidated financial statements included in this Quarterly Report on Form 10-Q)*.* 

*Net Loss Attributable to Common Stockholders*

Net loss attributable to common stockholders was $235.4 million for the six months ended June 30, 2025, as compared to net loss of $81.3 million for the six months ended June 30, 2024. The change in net loss attributable to common stockholders is discussed in detail for each line item of the consolidated statements of operations in the sections that follow.

*Revenue from Tenants*

Consolidated revenue from tenants, detailed by reportable segment, is as follows:

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| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>*(In thousands)* | **2025** | **2024** |
| **Revenue From Tenants:** |  |  |
| &nbsp;&nbsp;Industrial & Distribution | $113008 | $123432 |
| &nbsp;&nbsp;Retail | 72314 | 83281 |
| &nbsp;&nbsp;Office | 71998 | 69767 |
| &nbsp;&nbsp;Multi-Tenant Retail <sup>(1)</sup> |  | 16864 |
| &nbsp;&nbsp;&nbsp;**Total Consolidated Revenue From Tenants** | $**257320** | $**293344** |

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<sup>(1)</sup> Reflects former Multi-Tenant Retail properties that were sold individually prior to December 31, 2024. Does not include the Multi-Tenant Retail Portfolio which is presented as a discontinued operation (for additional information, see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>* — *Multi-Tenant Retail Disposition* to our consolidated financial statements included in this Quarterly Report on Form 10-Q).

<u>Industrial & Distribution</u>

Revenue from tenants in our Industrial & Distribution segment was $113.0 million and $123.4 million for the six months ended June 30, 2025 and 2024, respectively. The decrease in revenue from tenants was due to the loss of revenue of approximately $9.7 million from dispositions, and approximately $0.7 million from other properties. The loss of revenue from dispositions primarily resulted from the sale of two groups of properties that were leased by two of our former tenants, which comprised approximately $9.1 million of the total decrease in revenue from dispositions. There was minimal impact from the

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year-over-year change in average exchange rates during the six months ended June 30, 2025, when compared to the same period last year.

<u>Retail</u> 

Revenue from tenants in our Retail segment was $72.3 million and $83.3 million for the six months ended June 30, 2025 and 2024, respectively. The decrease was primarily driven by the loss of revenue of approximately $10.6 million from dispositions and approximately $0.4 million from other properties. The loss of revenue from dispositions was primarily related to five tenants which comprised approximately $9.1 million of the decrease. There was minimal impact from the year-over-year change in average exchange rates during the six months ended June 30, 2025, when compared to the same period last year.

<u>Office</u>

Revenue from tenants in our Office segment was $72.0 million and $69.8 million for the six months ended June 30, 2025 and 2024, respectively. The increase in the first six months of 2025 was primarily driven by higher revenue from properties owned in both periods of $4.0 million, partially offset by the loss of revenue of $1.8 million from dispositions. The loss of revenue from dispositions was primarily related to three properties, which comprised approximately $1.5 million of the decrease. The year-over-year change in foreign exchange rates had a minimal impact.

*Property Operating Expenses*

Consolidated property operating expenses, detailed by reportable segment, is as follows:

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>*(In thousands)* | **2025** | **2024** |
| **Property Operating Expenses:** |  |  |
| &nbsp;&nbsp;Industrial & Distribution | $9507 | $9566 |
| &nbsp;&nbsp;Retail | 6893 | 9124 |
| &nbsp;&nbsp;Office | 9571 | 9378 |
| &nbsp;&nbsp;Multi-Tenant Retail <sup>(1)</sup> |  | 5662 |
| &nbsp;&nbsp;&nbsp;**Total Consolidated Property Operating Expenses** | $**25971** | $**33730** |

---

<sup>(1)</sup> Reflects former Multi-Tenant Retail properties that were sold individually prior to December 31, 2024. Does not include the Multi-Tenant Retail Portfolio which is presented as a discontinued operation (for additional information, see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>* — *Multi-Tenant Retail Disposition* to our consolidated financial statements included in this Quarterly Report on Form 10-Q).

<u>Industrial & Distribution</u>

Property operating expenses in our Industrial & Distribution segment were $9.5 million and $9.6 million for the six months ended June 30, 2025 and 2024, respectively. The decrease was due to lower costs of $0.4 million from dispositions, partially offset by higher costs of $0.3 million from other properties due to the timing of our reimbursable costs. There was minimal impact from the year-over-year change in average foreign exchange rates during the six months ended June 30, 2025, when compared to the same period last year.

<u>Retail</u>

Property operating expenses in our Retail segment were $6.9 million and $9.1 million for the six months ended June 30, 2025 and 2024, respectively. The decrease was primarily driven by lower costs of $2.1 million from properties sold and approximately $0.1 million from other properties. There was minimal impact from the year-over-year change in average exchange rates during the six months ended June 30, 2025, when compared to the same period last year.

<u>Office</u>

Property operating expenses in our Office segment were $9.6 million and $9.4 million for the six months ended June 30, 2025 and 2024, respectively. The increase in the first six months of 2025 was driven by higher costs of $1.3 million from properties owned in each period, partially offset by lower costs of $1.1 million from properties sold. There was minimal impact from the year-over-year change in average exchange rates during the six months ended June 30, 2025, when compared to the same period last year.

*Impairment Charges*

During the six months ended June 30, 2025, we determined that the fair values of 90 of our properties (88 located in the U.S., one located in Europe and one located in the U.K.) had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price of such properties less selling costs, and as a result, the Company recorded an impairment charge of approximately $70.1 million.

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During the six months ended June 30, 2024, we determined that the fair values of 12 of our properties located in the U.S. (three of which were acquired in the REIT Merger) had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price of such properties, and as a result, we recorded an impairment charge of approximately $31.7 million. The majority of the impairment charges in the first six months of 2024 were due to legacy GNL properties.

*Merger, Transaction and Other Costs* 

We recognized $3.6 million and $2.3 million of merger, transaction and other costs during the six months ended June 30, 2025 and 2024, respectively. Merger costs are only reflected in the six months ended June 30, 2024.

*General and Administrative Expenses*

General and administrative expenses were relatively flat at $27.5 million and $28.4 million for the six months ended June 30, 2025 and 2024, respectively, primarily consisting of employee compensation/payroll expenses, professional fees including audit and taxation services, board member compensation and directors' and officers' liability insurance.

*Equity-Based Compensation* 

During the six months ended June 30, 2025 and 2024, we recognized equity-based compensation expense of $6.4 million and $4.3 million, respectively. Equity-based compensation in the quarter ended June 30, 2025 consisted of (i) amortization of restricted shares of Common Stock ("Restricted Shares") granted to employees of the Former Advisor or its affiliates who were involved in providing services to us prior to the Internalization; (ii) amortization of RSUs granted to our employees and our independent directors; and (iii) amortization expense related to PSUs. The period over period increase in expense was attributable to RSUs and PSUs granted in late 2024 and early 2025.

For additional information related to our equity-based compensation, including with respect to the RSUs and PSUs granted in late 2024 and early 2025, see *<u>[Note 12](#i7565b63625e84b32a751be2cb251dad1_70)</u> — Equity-Based Compensation* to our consolidated financial statements in this Quarterly Report on Form 10-Q.

*Depreciation and Amortization*

Depreciation and amortization expense was $102.0 million and $113.8 million for the six months ended June 30, 2025 and 2024, respectively. Lower depreciation and amortization due to dispositions during 2025 and 2024 was partially offset by higher amortization expense of approximately $11.0 million from the accelerated amortization of in-place lease intangibles during the six months ended June 30, 2025.

*Gain (loss) on Dispositions of Real Estate Investments*

During the six months ended June 30, 2025, we sold 110 properties, (six Industrial and Distribution properties, 101 Retail properties and three Office properties), not including the properties sold as part of the Multi-Tenant Retail Disposition (see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u> — Multi-Tenant Retail Disposition* to our consolidated financial statements included in this Quarterly Report on Form 10-Q), and as a result, recorded a net loss of $0.1 million.

During the six months ended June 30, 2024, we sold 55 properties, 51 of which were acquired in the REIT Merger, and recorded a net gain of $40.0 million.

*Interest Expense*

Interest expense was $106.8 million and $136.6 million for the six months ended June 30, 2025 and 2024, respectively. The decrease was due to lower gross debt outstanding and a lower weighted-average effective interest rate during the six months ended June 30, 2025. The net amount of our total gross debt outstanding was $5.1 billion as of June 30, 2024 as compared to $3.1 billion as of June 30, 2025, primarily as a result of the repayment of debt with the net proceeds from, or the assumption of debt by purchasers in connection with, dispositions. The weighted-average effective interest rate of our total debt was 4.3% as of June 30, 2025 and 4.7% as of June 30, 2024.

The decrease in interest expense was also impacted by the year-over-year change in average foreign exchange rates during the six months ended June 30, 2025, when compared to the same period last year. As of June 30, 2025, approximately 19% of our total debt outstanding was denominated in EUR and 1% was denominated in CAD. As of June 30, 2024, approximately 10% of our total debt outstanding was denominated in EUR, 9% of our total debt outstanding was denominated in GBP and 1% was denominated in CAD.

We view a combination of secured and unsecured financing as an efficient and accretive means to acquire properties and manage working capital. As of June 30, 2025, approximately 44% of our total debt outstanding was secured and 56% was unsecured, the latter including amounts outstanding under our Revolving Credit Facility (as defined in *<u>[Note 6](#i7565b63625e84b32a751be2cb251dad1_49)</u> — Revolving Credit Facility* to our consolidated financial statements included in this Quarterly Report on Form 10-Q)*,* our 3.75% Senior Notes and 4.50% Senior Notes.

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The availability of borrowings under the Revolving Credit Facility is based on the value of a pool of eligible unencumbered real estate assets owned by us and compliance with various ratios related to those assets. Our interest expense in future periods will vary based on interest rates, the level of future borrowings, which will depend on refinancing needs and acquisition activity, and changes in currency exchange rates.

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*Loss on Extinguishment of Debt*

The loss on extinguishment of debt of $4.8 million and $13.1 million for the six months ended June 30, 2025 and 2024, respectively. The loss in 2025 was primarily due to the accelerated amortization and fees related to the repayment of one of our mortgages in May of 2025. The amount in 2024 was primarily related to the fee required to be paid upon repayment of the mortgage loan that encumbered our McLaren properties in the U.K. This mortgage loan was assumed as part of our acquisition of the McLaren properties in 2021 and included the fee noted above in the terms of the mortgage.

*(Loss) Gain on Derivative Instruments* 

The loss on derivative instruments of $12.7 million and gain of $2.1 million for the six months ended June 30, 2025 and 2024, respectively, reflect the marked-to-market impact from foreign currency and interest rate derivative instruments used to hedge the investment portfolio from currency and interest rate movements, and was mainly driven by currency rate changes in the GBP and EUR compared to the USD. For the six months ended June 30, 2025, the loss on derivative instruments consisted of unrealized losses of $10.5 million and realized losses of $2.2 million. For the six months ended June 30, 2024, the gain on derivative instruments was $2.1 million, which consisted of unrealized gains of $1.5 million and realized gains of $0.6 million. The overall gain (or loss) on derivative instruments directly impact our results of operations since they are recorded on the gain on derivative instruments line item in our consolidated results of operations. However, only the realized gains are included in AFFO (as defined below).

As a result of our foreign investments in Europe, and, to a lesser extent, our investments in Canada, we are subject to risk from the effects of exchange rate movements in the EUR, GBP and CAD, which may affect costs and cash flows in our functional currency, the USD. We generally manage foreign currency exchange rate movements by matching our debt service obligation to the lender and the tenant's rental obligation to us in the same currency. This reduces our overall exposure to currency fluctuations. In addition, we may use currency hedging to further reduce the exposure to our net cash flow. We are generally a net receiver of these currencies (we receive more cash than we pay out), and therefore our results of operations of our foreign properties benefit from a weaker USD, and are adversely affected by a stronger USD, relative to the foreign currency.

*Unrealized (Losses) Gains on Undesignated Foreign Currency Advances and Other Hedge Ineffectiveness*

We recorded losses of $12.7 million and gains of $1.3 million on undesignated foreign currency advances and other hedge ineffectiveness, related to the accelerated reclassification of amounts in other comprehensive income to earnings as a result of certain hedged forecasted transactions becoming probable not to occur, for the six months ended June 30, 2025.

*Income Tax Expense*

Although as a REIT we generally do not pay U.S. federal income taxes on the amount of REIT taxable income that is distributed to shareholders, we recognize income tax (expense) benefit domestically for state taxes and local income taxes incurred, if any, and also in foreign jurisdictions in which we own properties. In addition, we perform an analysis of potential deferred tax or future tax benefit and expense as a result of book and tax differences and timing differences in taxes across jurisdictions. Income tax expense was $6.3 million and $2.1 million for the six months ended June 30, 2025 and 2024, respectively.

*Preferred Stock Dividends*

Preferred stock dividends were $21.9 million and $21.9 million for the six months ended June 30, 2025 and 2024, respectively. The amounts in both periods represent the dividends that are attributable to holders of Series A Preferred Stock, Series B Preferred Stock, Series D Preferred Stock and Series E Preferred Stock.

***Cash Flows from Operating Activities***

The level of cash flows provided by operating activities is driven by, among other things, rental income received and interest payments on outstanding borrowings.

During the six months ended June 30, 2025, net cash provided by operating activities was $111.2 million. Cash flows provided by operating activities during the six months ended June 30, 2025 reflect net loss of $213.5 million, adjusted for non-cash items of $286.2 million (primarily depreciation, amortization of intangibles, amortization of deferred financing costs, amortization of mortgage discounts, amortization of above- and below-market lease assets and liabilities, amortization of right of use assets, amortization of lease incentives and commissions, unbilled straight-line rent, equity-based compensation, unrealized gains on foreign currency transactions, derivatives and other non-cash items). In addition, operating cash flow was impacted by lease incentive and commission payments of $5.3 million and a net decrease of $22.0 million in working capital items due to an increase in prepaid expenses and other assets of $2.0 million, a decrease in accounts payable and accrued expenses of $28.0 million and an increase in prepaid rent of $8.0 million.

During the six months ended June 30, 2024, net cash provided by operating activities was $162.5 million. Cash flows provided by operating activities during the six months ended June 30, 2024 reflect net loss of $59.4 million, adjusted for non-cash items of $266.9 million (primarily depreciation, amortization of intangibles, amortization of deferred financing costs,

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amortization of mortgage discounts, amortization of above- and below-market lease assets and liabilities, amortization of right of use assets, amortization of lease incentives and commissions, bad debt expense, unbilled straight-line rent (including the effect of adjustments due to rent deferrals), equity-based compensation, unrealized gains on foreign currency transactions, derivatives and other non-cash items). In addition, operating cash flow was impacted by lease incentive and commission payments of $0.5 million and a decrease of $4.5 million in working capital items due to a decrease in prepaid expenses and other assets of $9.8 million, a decrease in accounts payable and accrued expenses of $13.9 million and a decrease in prepaid rent of $0.5 million.

***Cash Flows from Investing Activities***

Net cash provided by investing activities during the six months ended June 30, 2025 of $1.3 billion consisted of net proceeds from dispositions of $1.3 billion, principally from the Multi-Tenant Retail Disposition, which were partially offset by capital expenditures of $19.6 million.

Net cash provided by investing activities during the six months ended June 30, 2024 of $281.1 million consisted of net proceeds from dispositions of $299.6 million, partially offset by capital expenditures of $18.5 million.

***Cash Flows from Financing Activities***

Net cash used in financing activities of $1.4 billion during the six months ended June 30, 2025 was a result of net paydowns of borrowings under our Revolving Credit Facility of $722.2 million, net payments of principal on mortgage notes payable of $490.0 million, $76.0 million of Common Stock repurchases, dividends paid to common stockholders of $107.4 million, dividends paid to holders of our Series A Preferred Stock of $6.2 million, dividends paid to holders of our Series B Preferred Stock of $4.0 million, dividends paid to holders of our Series D Preferred Stock of $7.4 million, dividends paid to holders of our Series E Preferred Stock of $4.2 million.

Net cash used in financing activities of $450.1 million during the six months ended June 30, 2024 was a result of net payments of principal on mortgage notes payable of $266.3 million, dividends paid to common stockholders of $145.2 million, dividends paid to holders of our Series A Preferred Stock of $6.2 million, dividends paid to holders of our Series B Preferred Stock of $4.0 million, dividends paid to holders of our Series D Preferred Stock of $7.4 million, dividends paid to holders of our Series E Preferred Stock of $4.2 million, payments for early extinguishment of debt charges of $13.1 million and cash paid for financing costs of $7.6 million. These cash outflows were partially offset by net proceeds from borrowings under our Revolving Credit Facility of $4.5 million.

**Liquidity and Capital Resources**

Our principal future needs for cash and cash equivalents include the purchase of additional properties or other investments, payment of related acquisition costs, improvement costs, operating and administrative expenses, repayment of certain debt obligations, which includes our continuing debt service obligations and dividends to holders of our Common Stock and Preferred Stock, as well as to any future class or series of preferred stock we may issue. As of June 30, 2025 and December 31, 2024, we had cash and cash equivalents of $144.8 million and $159.7 million, respectively. See discussion above for how our cash flows from various sources impacted our cash.

Management expects that cash generated from operations, supplemented by our existing cash will be sufficient to fund, in the near term and long term, the payment of quarterly dividends to our common stockholders and holders of our Preferred Stock, as well as anticipated capital expenditures. During the six months ended June 30, 2025, cash generated from operations covered 86% of our dividends paid. In addition, we plan to continue to manage our leverage by using proceeds from dispositions to reduce our debt pursuant to our previously announced 2024 strategic disposition initiative, and we currently have entered into purchase and sale agreements ("PSAs") and non-binding letters of intent ("LOIs") totaling an aggregate of $206.9 million. The PSAs and LOIs are subject to conditions and there can be no assurance we will be able to complete these dispositions on their contemplated terms, or at all.

Our other sources of capital, which we have used and may use in the future, include proceeds received from our August 2025 Revolving Credit Facility, proceeds from secured or unsecured financings (which may include note issuances), proceeds from our offerings of equity securities (including Common Stock and Preferred Stock), proceeds from any future sales of properties and undistributed cash flows from operations, if any.

<u>Acquisitions, Dispositions and Pending Transactions</u>

We are in the business of acquiring real estate properties and leasing the properties to tenants. Generally, we fund our acquisitions through a combination of cash and cash equivalents, proceeds from offerings of equity securities, borrowings under our August 2025 Revolving Credit Facility and proceeds from mortgage or other debt secured by the acquired or other assets at the time of acquisition or at some later point. In addition, to the extent we dispose of properties, we have used and may continue to use the net proceeds from the dispositions (after repayment of any mortgage debt, if any) for future acquisitions or other general corporate purposes.

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*Acquisitions and Dispositions — Six Months Ended June 30, 2025* 

As disclosed above, on March 25, 2025, we completed the First Closing of the Multi-Tenant Retail Disposition (for additional information, see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u>* — *Multi-Tenant Retail Disposition* to our consolidated financial statements in this Quarterly Report on Form 10-Q).

During the three and six months ended June 30, 2025, we sold 94 and 110 additional properties, respectively, for an aggregate contract price of $171.9 million and $196.0 million, respectively.

We did not acquire any properties during the three and six months ended June 30, 2025.

*Acquisitions and Dispositions Subsequent to June 30, 2025 and Pending Transactions*

Subsequent to June 30, 2025, we disposed of 23 properties for an aggregate price of $22.7 million. In addition, we have signed definitive PSAs to dispose of 59 properties for a contract purchase price of $183.5 million and we have signed non-binding LOIs to dispose of 6 properties for an aggregate sale price of $23.4 million.

<u>Equity Offerings</u>

We have an "at the market" equity offering program (the "Common Stock ATM Program") pursuant to which we may sell shares of Common Stock, from time, to time through our sales agents having an aggregate offering amount of up to $285.0 million, and we have an "at the market" equity offering program for our Series B Preferred Stock (the "Series B Preferred Stock ATM Program") pursuant to which we may sell shares of Series B Preferred Stock, from time to time, through our sales agents having an aggregate offering amount of up to $170.0 million. During the three and six months ended June 30, 2025, we did not sell any shares of Common Stock through the Common Stock ATM Program or any shares of Series B Preferred Stock through the Series B Preferred Stock ATM Program. See *<u>[Note 10](#i7565b63625e84b32a751be2cb251dad1_61)</u>— Stockholders' Equity* our consolidated financial statements included in this Quarterly Report on Form 10-Q for further discussion on our ATM programs.

<u>Share Repurchase Program</u>

On February 20, 2025, our Board authorized a share repurchase program for up to an aggregate amount of $300 million of shares of Common Stock (the "Share Repurchase Program"). Under the Share Repurchase Program, which does not have a stated expiration date, the Company may repurchase shares of Common Stock from time to time through open market purchases, including pursuant to Rule 10b5-1 pre-set trading plans and under Rule 10b-18 of the Exchange Act, privately negotiated transactions, accelerated share repurchase transactions entered into with one or more counterparties or otherwise, in compliance with applicable securities laws and other legal requirements. The timing, volume, and nature of repurchases are subject to market conditions, applicable securities laws, and other factors, and the program may be amended, suspended or discontinued at any time. During the three and six months ended June 30, 2025, we purchased 7,654,620 and 10,072,062 shares of Common Stock, respectively, for approximately $56.5 million and $75.9 million, respectively, or an average share price of $7.37 and $7.52, respectively.

<u>Borrowings</u>

As of June 30, 2025 and December 31, 2024, we had total gross debt outstanding of $3.1 billion and $4.7 billion ($4.2 billion not including two mortgages classified in discontinued operations), respectively, bearing interest at weighted-average interest rates per annum equal to 4.3% and 4.8%, respectively.

As of June 30, 2025, 85% of our total debt outstanding either bore interest at fixed rates, or was swapped to a fixed rate, which bore interest at a weighted average interest rate of 4.2% per annum. As of June 30, 2025, 15% of our total debt outstanding was variable-rate debt, which bore interest at a weighted average interest rate of 5.1% per annum. The total gross carrying value of unencumbered assets as of June 30, 2025 was $3.85 billion, of which approximately $3.82 billion was included in the unencumbered asset pool comprising the borrowing base under the Revolving Credit Facility and therefore is not currently available to serve as collateral for future borrowings under the August 2025 Revolving Credit Facility.

Our debt leverage ratio was 58.9% and 63.8% (total debt as a percentage of total purchase price of real estate investments, based on the exchange rate at the time of purchase) as of June 30, 2025 and December 31, 2024, respectively. As of June 30, 2025, the weighted-average maturity of our indebtedness was 2.9 years. We believe we have the ability to service our debt obligations as they come due.

As noted above, we continue to manage our leverage by using proceeds from the Multi-Tenant Retail Disposition and other dispositions to reduce our debt, and we currently have entered into PSAs and LOIs totaling an aggregate of $206.9 million.

*Senior Notes*

Both the 3.75% and the 4.50% Senior Notes do not require any principal payments prior to maturity. As of June 30, 2025, the carrying amount of the 3.75% and the 4.50% Senior Notes on our balance sheets totaled $916.9 million in the aggregate, which is net of $83.1 million of deferred financing costs and discounts, and as of December 31, 2024 the carrying amount on our balance sheets totaled $906.1 million in the aggregate, which is net of $93.9 million of deferred financing costs. See *<u>[Note 7](#i7565b63625e84b32a751be2cb251dad1_52)</u>* 

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*— Senior Notes, Net* to our consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information.

*Mortgage Notes Payable*

As of June 30, 2025 and December 31, 2024, we had secured gross mortgage notes payable of $1.4 billion and $1.9 billion respectively. All of our current mortgage loans require payment of interest-only with the principal due at maturity. As of December 31, 2024, the following mortgages, which were assumed by RCG in the second quarter of 2025 as part of the Multi-Tenant Retail Disposition, were classified within discontinued operations on our consolidated balance sheets; (a) a mortgage for 12 properties secured by a $210.0 million mortgage from Société Générale and UBS AG, and (b) a mortgage for 29 properties secured by a $260.0 million mortgage from Barclays Capital Real Estate Inc., Société Générale, KeyBank and Bank of Montreal. We have $0.5 million of principal payments due on our mortgages during the remainder of 2025. See *<u>[Note 5](#i7565b63625e84b32a751be2cb251dad1_46)</u> — Mortgage Notes Payable, Net t*o our consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information on our mortgage notes payable.

*Credit Facility*

As of June 30, 2025 and December 31, 2024, outstanding borrowings under our Revolving Credit Facility were $740.7 million and $1.4 billion, respectively. During the six months ended June 30, 2025, we made net additional paydowns of $722.2 million on the Revolving Credit Facility, primarily as a result of the proceeds received from the Multi-Tenant Retail Disposition, net of additional borrowings used to pay down certain mortgages. As of June 30, 2025, approximately $645.2 million was available for future borrowings under the Revolving Credit Facility.

On August 6, 2025, the OP, as borrower, together with us and certain subsidiaries of the OP acting as guarantors, entered into a credit agreement (the "August 2025 Credit Agreement" and the credit facilities provided thereunder, collectively, the "August 2025 Revolving Credit Facility") with BMO Bank N.A. as agent, and the other lender parties thereto. The proceeds of the transaction were used, in part, to prepay in full and terminate the Credit Agreement governing the Revolving Credit Facility, and approximately $1.1 billion was available for borrowing under the August 2025 Credit Facility following the application of such proceeds. The August 2025 Revolving Credit Facility consists solely of a senior unsecured multi-currency revolving credit facility similar to the Revolving Credit Facility, and the aggregate total commitments under the August 2025 Revolving Credit Facility are $1.8 billion ($100.0 million of which can only be used for U.S. dollar loans), with a $75.0 million sublimit for letters of credit. The August 2025 Credit Facility includes an uncommitted "accordion feature" whereby, so long as no default or event of default has occurred and is continuing, the Company has the right to increase the commitments under the Revolving Credit Facility, allocated to either or both the August 2025 Revolving Credit Facility or a new term loan facility, by up to an additional $1.185 billion, subject to obtaining commitments from new lenders or additional commitments from participating lenders and certain customary conditions. The August 2025 Revolving Credit Facility matures on August 5, 2029, subject to the OP's right, subject to customary conditions, to extend the maturity date by up to two additional six-month terms

See *<u>[Note 6](#i7565b63625e84b32a751be2cb251dad1_49)</u>* — Revolving Credit Facility and *<u>[Note 16](#i7565b63625e84b32a751be2cb251dad1_88)</u>* — *Subsequent Events* – *August 2025 Revolving Credit Facility* to our consolidated financial statements included in this Quarterly Report on Form 10-Q for further discussion on the Revolving Credit Facility, our August 2025 Revolving Credit Facility and related covenants under such facilities

***Covenants***

As of June 30, 2025, we were in compliance with the covenants under the indenture governing the 3.75% Senior Notes, the indenture governing the 4.50% Senior Notes and the Credit Agreement (see *<u>[Note 6](#i7565b63625e84b32a751be2cb251dad1_49)</u> — Revolving Credit Facility* and *<u>[Note 7](#i7565b63625e84b32a751be2cb251dad1_52)</u> — Senior Notes, Net* to our consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information).

As of June 30, 2025, we were in compliance with all property-level debt covenants with the exception of three property-level debt instruments. For those three property-level debt instruments, we either (a) implemented a cure to the underlying noncompliance trigger by providing a letter of credit, or (b) permitted excess net cash flow after debt service from the impacted properties to become restricted, in each case in accordance with the terms of the applicable debt instrument. Each letter of credit, for so long as it is outstanding, represents a dollar-for-dollar reduction to availability for future borrowings under our August 2025 Revolving Credit Facility. While the restricted cash cannot not be used for general corporate purposes, it is available to fund operations of the underlying assets. These matters did not have a material impact on our ability to operate the impacted assets.

**Non-GAAP Financial Measures**

This section discusses the non-GAAP financial measures we use to evaluate our performance including Funds from Operations ("FFO"), Core Funds from Operations ("Core FFO") and Adjusted Funds from Operations ("AFFO"). A description of these non-GAAP measures and reconciliations to the most directly comparable GAAP measure, which is net income, is provided below.

***Use of Non-GAAP Measures***

FFO, Core FFO, and AFFO should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income or in its applicability in evaluating our operating performance. The method utilized to evaluate the

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value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP FFO, Core FFO and AFFO measures. Other REITs may not define FFO in accordance with the current NAREIT (as defined below) definition (as we do), or may interpret the current NAREIT definition differently than we do, or may calculate Core FFO or AFFO differently than we do. Consequently, our presentation of FFO, Core FFO and AFFO may not be comparable to other similarly-titled measures presented by other REITs.

We consider FFO, Core FFO and AFFO useful indicators of our performance. Because FFO, Core FFO and AFFO calculations exclude such factors as depreciation and amortization of real estate assets and gain or loss from sales of operating real estate assets (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), FFO, Core FFO and AFFO presentations can facilitate comparisons of operating performance between periods and between other REITs in our peer group.

As a result, we believe that the use of FFO, Core FFO and AFFO, together with the required GAAP presentations, provide a more complete understanding of our operating performance including relative to our peers and a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities. However, FFO, Core FFO and AFFO are not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. Investors are cautioned that FFO, Core FFO and AFFO should only be used to assess the sustainability of our operating performance excluding these activities, as they exclude certain costs that have a negative effect on our operating performance during the periods in which these costs are incurred.

***Funds from Operations, Core Funds from Operations and Adjusted Funds from Operations***

*Funds From Operations*

Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts ("NAREIT"), an industry trade group, has promulgated a measure known as FFO, which we believe to be an appropriate supplemental measure to reflect the operating performance of a REIT. FFO is not equivalent to net income or loss as determined under GAAP.

We calculate FFO, a non-GAAP measure, consistent with the standards established over time by the Board of Governors of NAREIT, as restated in a White Paper approved by the Board of Governors of NAREIT effective in December 2018 (the "White Paper"). The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding depreciation and amortization related to real estate, gain and loss from the sale of certain real estate assets, gain and loss from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. Our FFO calculation complies with NAREIT's definition.

FFO includes adjustments related to the treatment of the Multi-Tenant Retail Portfolio as a discontinued operation, which includes adjustments for depreciation and amortization and loss (gain) on dispositions of real estate investments.

The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, and straight-line amortization of intangibles, which implies that the value of a real estate asset diminishes predictably over time. We believe that, because real estate values historically rise and fall with market conditions, including inflation, interest rates, unemployment and consumer spending, presentations of operating results for a REIT using historical accounting for depreciation and certain other items may be less informative. Historical accounting for real estate involves the use of GAAP. Any other method of accounting for real estate such as the fair value method cannot be construed to be any more accurate or relevant than the comparable methodologies of real estate valuation found in GAAP. Nevertheless, we believe that the use of FFO, which excludes the impact of real estate related depreciation and amortization, among other things, provides a more complete understanding of our performance to investors and to management, and, when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income.

*Core Funds From Operations*

In calculating Core FFO, we start with FFO, then we exclude certain non-core items such as merger, transaction and other costs, as well as certain other costs that are considered to be non-core, such as debt extinguishment or modification costs. The purchase of properties, and the corresponding expenses associated with that process, is a key operational feature of our core business plan to generate operational income and cash flows in order to make dividend payments to stockholders. In evaluating investments in real estate, we differentiate the costs to acquire the investment from the subsequent operations of the investment. We also add back non-cash write-offs of deferred financing costs, prepayment penalties and certain other costs incurred with the early extinguishment or modification of debt which are included in net income but are considered financing cash flows when paid in the statement of cash flows. We consider these write-offs and prepayment penalties to be capital transactions and not indicative of operations. By excluding expensed acquisition, transaction and other costs as well as non-core costs, we believe Core FFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management's analysis of the investing and operating performance of our properties.

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Core FFO includes adjustments related to the treatment of the Multi-Tenant Retail Portfolio as a discontinued operation, which includes adjustments for acquisition and transaction costs and loss on extinguishment of debt.

*Adjusted Funds From Operations*

In calculating AFFO, we start with Core FFO, then we exclude certain income or expense items from AFFO that we consider more reflective of investing activities, other non-cash income and expense items and the income and expense effects of other activities or items, including items that were paid in cash that are not a fundamental attribute of our business plan or were one time or non-recurring items. These items include early extinguishment or modification of debt and other items excluded in Core FFO as well as unrealized gain and loss, which may not ultimately be realized, such as gain or loss on derivative instruments, gain or loss on foreign currency transactions, and gain or loss on investments. In addition, by excluding non-cash income and expense items such as amortization of above-market and below-market leases intangibles, amortization of deferred financing costs, straight-line rent and equity-based compensation from AFFO, we believe we provide useful information regarding income and expense items which have a direct impact on our ongoing operating performance. We also exclude revenue attributable to the reimbursement by third parties of financing costs that we originally incurred because these revenues are not, in our view, related to operating performance. We also include the realized gain or loss on foreign currency exchange contracts for AFFO as such items are part of our ongoing operations and affect our current operating performance.

In calculating AFFO, we also exclude certain expenses which under GAAP are treated as operating expenses in determining operating net income. All paid and accrued acquisition, transaction and other costs (including prepayment penalties for debt extinguishments or modifications and merger related expenses) and certain other expenses, including expenses related to our European tax restructuring and transition costs related to the REIT Merger and Internalization, negatively impact our operating performance during the period in which expenses are incurred or properties are acquired and will also have negative effects on returns to investors, but are excluded by us as we believe they are not reflective of on-going performance. Further, under GAAP, certain contemplated non-cash fair value and other non-cash adjustments are considered operating non-cash adjustments to net income. In addition, as discussed above, we view gain and loss from fair value adjustments as items which are unrealized and may not ultimately be realized and not reflective of ongoing operations and are therefore typically adjusted for when assessing operating performance. Excluding income and expense items detailed above from our calculation of AFFO provides information consistent with management's analysis of our operating performance. Additionally, fair value adjustments, which are based on the impact of current market fluctuations and underlying assessments of general market conditions, but can also result from operational factors such as rental and occupancy rates, may not be directly related or attributable to our current operating performance. By excluding such changes that may reflect anticipated and unrealized gain or loss, we believe AFFO provides useful supplemental information. By providing AFFO, we believe we are presenting useful information that can be used to, among other things, assess our performance without the impact of transactions or other items that are not related to our portfolio of properties. AFFO presented by us may not be comparable to AFFO reported by other REITs that define AFFO differently. Furthermore, we believe that in order to facilitate a clear understanding of our operating results, AFFO should be examined in conjunction with net income (loss) calculated in accordance with GAAP as presented in our consolidated financial statements. AFFO should not be considered as an alternative to net income (loss) as an indication of our performance or to cash flows as a measure of our liquidity or ability to make distributions.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>*(In thousands)* | **2025** | **2024** | **2025** | **2024** |
| **Net loss attributable to common stockholders (in accordance with GAAP)** | $(35079) | $(46600) | $(235394) | $(81287) |
| &nbsp;&nbsp;Impairment charges  | 9812 | 27402 | 70127 | 31729 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 45636 | 56654 | 101970 | 113826 |
| &nbsp;&nbsp;&nbsp;Gain (loss) on dispositions of real estate investments | (1537) | (34114) | 141 | (39982) |
| &nbsp;&nbsp;&nbsp;Discontinued operations FFO adjustments | (33232) | 32851 | 81717 | 67680 |
| **FFO (as defined by NAREIT) attributable to common stockholders** | (14400) | 36193 | 18561 | 91966 |
| &nbsp;&nbsp;Merger, transaction and other costs <sup>(1)</sup> | 2002 | 1576 | 3581 | 2329 |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment and modification of debt | 4348 | 13090 | 4766 | 13148 |
| &nbsp;&nbsp;&nbsp;Discontinued operations Core FFO adjustments | 15172 | (4) | 15181 | 4 |
| **Core FFO attributable to common stockholders**  | 7122 | 50855 | 42089 | 107447 |
| &nbsp;&nbsp;Non-cash equity-based compensation | 3338 | 2340 | 6431 | 4313 |
| &nbsp;&nbsp;Non-cash portion of interest expense | 2499 | 2580 | 4985 | 4974 |
| &nbsp;&nbsp;&nbsp;Amortization related to above- and below- market lease intangibles and right-of-use assets, net | 1232 | 1901 | 1392 | 4126 |
| &nbsp;&nbsp;&nbsp;Straight-line rent | (2959) | (5349) | (8194) | (9911) |
| &nbsp;&nbsp;&nbsp;Unrealized gains on undesignated foreign currency advances and other hedge ineffectiveness | 6324 | (300) | 12675 | (1332) |
| &nbsp;&nbsp;Eliminate unrealized losses (gains) on foreign currency transactions <sup>(2)</sup> | 7177 | (230) | 10481 | (1489) |
| &nbsp;&nbsp;&nbsp;Amortization of discounts on mortgages and senior notes | 14609 | 24080 | 28569 | 39418 |
| &nbsp;&nbsp;Expenses attributable to European tax restructuring <sup>(3)</sup> |  | 16 |  | 485 |
| &nbsp;&nbsp;Transition costs related to the REIT Merger and Internalization <sup>(4)</sup> |  | 995 |  | 3821 |
| &nbsp;&nbsp;Forfeited disposition deposit <sup>(5)</sup> |  | (196) |  | (196) |
| &nbsp;&nbsp;Goodwill impairment <sup>(6)</sup> |  |  | 7134 |  |
| &nbsp;&nbsp;Eliminate losses related to multi-tenant disposition receivable <sup>(7)</sup> | 13766 |  | 13766 |  |
| **AFFO attributable to common stockholders** | $53108 | $76692 | $119328 | $151656 |
| **Summary** |  |  |  |  |
| FFO (as defined by NAREIT) attributable to common stockholders | $(14400) | $36193 | $18561 | $91966 |
| Core FFO attributable to common stockholders | $7122 | $50855 | $42089 | $107447 |
| AFFO attributable to common stockholders | $53108 | $76692 | $119328 | $151656 |

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<sup>(1)</sup> For the three and six months ended June 30, 2024, these costs primarily consisted of advisory, legal and other professional costs that were directly related to the REIT Merger and Internalization.

<sup>(2)</sup> For AFFO purposes, we adjust for unrealized gains and losses. For the three months ended June 30, 2025, the loss on derivative instruments was $8.8 million, which consisted of unrealized losses of $7.2 million and realized losses of $1.6 million. For the six months ended June 30, 2025, the loss on derivative instruments was $12.7 million, which consisted of unrealized losses of $10.5 million and realized losses of $2.2 million. For the three months ended June 30, 2024, the gain on derivative instruments was $0.5 million, which consisted of unrealized gains of $0.2 million and realized gains of $0.3 million. For the six months ended June 30, 2024, the gain on derivative instruments was $2.1 million, which consisted of unrealized gains of $1.5 million and realized gains of $0.6 million.

<sup>(3)</sup> Amounts relate to costs incurred related to the tax restructuring of our European entities. We do not consider these expenses to be part of our normal operating performance and have, accordingly, increased AFFO for these amounts.

<sup>(4)</sup> Amounts include costs related to (i) compensation incurred for our former Co-Chief Executive Officer who retired effective March 31, 2024; (ii) a transition service agreement with the Former Advisor; and (iii) insurance premiums related to expiring directors and officers insurance of former RTL directors. We do not consider these expenses to be part of our normal operating performance and have, accordingly, increased AFFO for this amount.

<sup>(5)</sup> Represents a forfeited deposit from a potential buyer of one of our properties, which is recorded in other income in our consolidated statement of operations. We do not consider this income to be part of our normal operating performance and have, accordingly, decreased AFFO for this amount.

<sup>(6)</sup> This is a non-cash item and is added back as we do not consider it indicative of our normal operating performance.

<sup>(7)</sup> Represents adjustments to the fair value of the embedded derivative feature of the multi-tenant disposition receivable (see *<u>[Note 3](#i7565b63625e84b32a751be2cb251dad1_40)</u> — Multi-Tenant Disposition Receivable, Net* for additional information). We do not consider these adjustments to be indicative of our normal operating performance and have, accordingly, increased AFFO for this amount.

**Dividends** 

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The amount of dividends payable to our common stockholders is determined by our Board and is dependent on a number of factors, including funds available for dividends, our financial condition, provisions in our Credit Agreement or other agreements that may restrict our ability to pay dividends, capital expenditure requirements, as applicable, requirements of Maryland law and annual distribution requirements needed to maintain our status as a REIT.

In October 2023, the Board approved an annual dividend rate on our Common Stock of $1.42 per share, or $0.354 per share on a quarterly basis. The first dividend paid at this rate occurred on October 16, 2023 and, accordingly, during the three months ended March 31, 2024, we paid dividends at this rate as well.

In February 2024, the Board approved a dividend policy that reduced our Common Stock dividend rate to an annual rate of $1.10 per share, or $0.275 per share on a quarterly basis, which was in effect from the Common Stock dividend declared and paid in April 2024 and through January 2025.

On February 27, 2025, we announced that the Board planned to reduce the quarterly dividend per share of Common Stock from $0.275 to $0.190 per share, representing an annual dividend rate of $0.76 per share. The new Common Stock dividend rate became effective with the Common Stock Dividend declared in April 2025. The reduction of the dividend rate is expected to yield benefits to us including increasing the amount of cash that may be used to lower leverage.

Common Stock dividends authorized by our Board and declared by us are paid on a quarterly basis in arrears during the first month following the end of each fiscal quarter (unless otherwise specified) to common stockholders of record on the record date for such payment.

*<u>Preferred Stock</u>*

Dividends accrue on our Preferred Stock as follows:

• Dividends on our Series A Preferred Stock accrue in an amount equal to $0.453125 per share per quarter to Series A Preferred Stockholders, which is equivalent to 7.25% of the $25.00 liquidation preference per share per annum.

• Dividends on our Series B Preferred Stock accrue in an amount equal to $0.4296875 per share per quarter to Series B Preferred Stockholders, which is equivalent to 6.875% of the $25.00 liquidation preference per share per annum.

• Dividends on our Series D Preferred Stock accrue in an amount equal to $0.46875 per share per quarter to Series D Preferred Stockholders, which is equivalent to the rate of 7.50% of the $25.00 liquidation preference per share per annum.

• Dividends on our Series E Preferred Stock accrue in an amount equal to $0.4609375 per share per quarter to Series E Preferred Stockholders, which is equivalent to the rate of 7.375% of the $25.00 liquidation preference per share per annum.

Dividends on the Series A Preferred Stock, Series B Preferred Stock, Series D Preferred Stock and Series E Preferred Stock are payable quarterly in arrears on the 15th day of January, April, July and October of each year (or, if not on a business day, on the next succeeding business day) to holders of record on the close of business on the record date set by our Board. Any accrued and unpaid dividends payable with respect to the Series A Preferred Stock and Series B Preferred Stock become part of the liquidation preference thereof.

Pursuant to the Credit Agreement, we may not pay distributions, including cash dividends on, or redeem or repurchase Common Stock, Series A Preferred Stock, Series B Preferred Stock, Series D Preferred Stock, Series E Preferred Stock, or any other class or series of stock we may issue in the future, that exceed 100% of our Adjusted FFO as defined in the Credit Facility (which is different from AFFO disclosed in this Quarterly Report on Form 10-Q) for any period of four consecutive fiscal quarters, except in limited circumstances, including that for one fiscal quarter in each calendar year, we may pay cash dividends and other distributions and redeem or repurchase an aggregate amount equal to no more than 105% of our Adjusted FFO. We last used the exception to pay dividends that were between 100% of Adjusted FFO and 105% of Adjusted FFO during the quarter ended on June 30, 2020, and may use this exception in the future. In the past, the lenders under our Revolving Credit Facility have consented to increase the maximum amount of our Adjusted FFO we may use to pay cash dividends and other distributions and make redemptions and other repurchases in certain periods, but there can be no assurance that they will do so again in the future.

The following table shows the sources for the payment of dividends to holders of Common Stock, Series A Preferred Stock, Series B Preferred Stock, Series D Preferred Stock and Series E Preferred Stock for the periods indicated.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **March 31, 2025** | **March 31, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| *(In thousands)* |  | **Percentage of Dividends** |  | **Percentage of Dividends** |  | **Percentage of Dividends** |
| **Dividends and Distributions:** |  |  |  |  |  |  |
| Dividends to holders of Common Stock | $63942 |  | $43479 |  | $107421 |  |
| Dividends to holders of Series A Preferred Stock | 3081 |  | 3081 |  | 6162 |  |
| Dividends to holders of Series B Preferred Stock | 2018 |  | 2018 |  | 4036 |  |
| Dividends to holders of Series D Preferred Stock | 3719 |  | 3719 |  | 7438 |  |
| Dividends to holders of Series E Preferred Stock | 2118 |  | 2118 |  | 4236 |  |
| Total dividends | $74878 |  | $54415 |  | $129293 |  |
| **Source of dividend and distribution coverage:** |  |  |  |  |  |  |
| Cash flows provided by operations | $59167 | 79% | $54415 | 100% | $111194 | 86% |
| Available cash on hand  | 15711 | 21% |  | —% | 18099 | 14% |
| Total sources of dividend and distribution coverage | $74878 | 100% | $54415 | 100% | $129293 | 100% |
| Cash flows provided by operations (GAAP basis)  | $59167 |  | $52027 |  | $111194 |  |
| Net loss attributable to common stockholders (in accordance with GAAP) | $(200315) |  | $(35079) |  | $(235394) |  |

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**Foreign Currency Translation**

Our reporting currency is the USD. The functional currency of our foreign investments is the applicable local currency for each foreign location in which we invest. Assets and liabilities in these foreign locations (including intercompany balances for which settlement is not anticipated in the foreseeable future) are translated at the spot rate in effect at the applicable reporting date. The amounts reported in the consolidated statements of operations are translated at the average exchange rates in effect during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component of accumulated other comprehensive income in the consolidated statements of changes in equity. We are exposed to fluctuations in foreign currency exchange rates on property investments in foreign countries which pay rental income, incur property related expenses and borrow in currencies other than our functional currency, the USD. We have used and may continue to use foreign currency derivatives including options, currency forward and cross currency swap agreements to manage our exposure to fluctuations in foreign GBP-USD and EUR-USD exchange rates (*see <u>[Note 9](#i7565b63625e84b32a751be2cb251dad1_58)</u> — Derivatives and Hedging Activities* to the consolidated financial statements in this Quarterly Report on Form 10-Q for further discussion).

**Election as a REIT** 

We elected to be taxed as a REIT under Sections 856 through 860 of the Code, effective for our taxable year ended December 31, 2013. We believe that, commencing with such taxable year, we have been organized and have operated in a manner so that we qualify for taxation as a REIT under the Code. We intend to continue to operate in such a manner to qualify for taxation as a REIT, but can provide no assurances that we will operate in a manner so as to remain qualified as a REIT. To continue to qualify for taxation as a REIT, we must distribute annually at least 90% of our REIT taxable income (which does not equal net income as calculated in accordance with GAAP), determined without regard for the deduction for dividends paid and excluding net capital gains, and must comply with a number of other organizational and operational requirements. If we continue to qualify for taxation as a REIT, we generally will not be subject to federal corporate income tax on the portion of our REIT taxable income that we distribute to our stockholders. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and properties, as well as federal income and excise taxes on our undistributed income.

In addition, our international assets and operations, including those owned through direct or indirect subsidiaries that are disregarded entities for U.S. federal income tax purposes, continue to be subject to taxation in the foreign jurisdictions where those assets are held or those operations are conducted.

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**Inflation**

We may be adversely impacted by inflation on the leases that do not contain indexed escalation provisions, or those leases which have escalations at rates which do not exceed or approximate current inflation rates. As of June 30, 2025, the increase to the 12-month CPI for all items, as published by the Bureau of Labor Statistics, was 2.7%. To help mitigate the adverse impact of inflation, approximately 88% of our leases with our tenants contain rent escalation provisions that increase the cash rent that is due under these leases over time by an average cumulative increase of 1.5% per year. These provisions generally increase rental rates during the terms of the leases either at fixed rates or indexed escalations (based on the Consumer Price Index or other measures). As of June 30, 2025, based on straight-line rent, approximately 58.9%, are fixed-rate with increases averaging 1.7%, 22.6% are based on the Consumer Price Index, subject to certain caps, 6.7% are based on other measures, and 11.8% do not contain any escalation provisions.

In addition, we may be required to pay costs for maintenance and operation of properties which may adversely impact our results of operations due to potential increases in costs and operating expenses resulting from inflation. However, our net leases require the tenant to pay its allocable share of operating expenses, which may include common area maintenance costs, real estate taxes and insurance. This may reduce our exposure to increases in costs and operating expenses resulting from inflation. As the costs of general goods and services continue to rise, we may be adversely impacted by increases in general and administrative costs due to overall inflation.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk.**

There has been no material change in our exposure to market risk during the six months ended June 30, 2025. For a discussion of our exposure to market risk, refer to Item 7A, "Quantitative and Qualitative Disclosures about Market Risk," contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

**Item 4. Controls and Procedures.**

***Evaluation of Disclosure Controls and Procedures***

In accordance with Rules 13a-15(b) and 15d-15(b) of the Exchange Act, we, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q and our Chief Executive Officer and Chief Financial Officer determined that our disclosure controls and procedures are effective.

***Changes in Internal Control Over Financial Reporting***

During the quarter ended June 30, 2025, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**PART II — OTHER INFORMATION**

**Item 1. Legal Proceedings.**

Please refer to "Litigation and Regulatory Matters" in Part I - Item 1 - *<u>[Note 11](#i7565b63625e84b32a751be2cb251dad1_67)</u> — Commitments and Contingencies*, in our accompanying Consolidated Financial Statements.

**Item 1A. Risk Factors.**

Except as set forth in Part II Section 1A of the Quarterly Report on Form 10-Q filed with the SEC on May 8, 2025 , there has been no material changes to the risk factors set forth in the Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 27, 2025, and we direct you to those risk factors.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

The following table presents our Common Stock share repurchase activity for the quarter ended June 30, 2025 (dollars in thousands, except per share amounts):

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| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total Number of Shares Purchased** | **Average Price Paid per Share** | **Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs** <sup>(1)</sup> | **Maximum Dollar Value that May Yet Be Purchased Under the Plans or Programs** <sup>(1)</sup> |
|  |  |  |  | *(In Thousands)* |
| April 1, 2025 to April 30, 2025 | 4924685 | $7.25 | 4924685 | $244907 |
| May 1, 2025 to May 31, 2025 | 2425943 | 7.58 | 2425943 | $226522 |
| June 1, 2025 to June 30, 2025 | 303992 | 7.47 | 303992 | $224252 |
| **Total** | **7654620** | $**7.37** | **7654620** | $**224252** |

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<sup>(1)</sup> All of the above repurchases were made on the open market at prevailing market rates plus related expenses under our Share Repurchase Program, which authorizes the repurchase of up to $300.0 million of our outstanding Common Stock. We publicly announced this program on February 26, 2025.

**Item 3. Defaults Upon Senior Securities.**

None.

**Item 4. Mine Safety Disclosures.**

Not applicable.

**Item 5. Other Information.**

During our last fiscal quarter, no director or officer, as defined in Rule 16a-1(f), adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," each as defined in Regulation S-K Item 408.

**Item 6. Exhibits.**

The following exhibits are included, or incorporated by reference, in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (and are numbered in accordance with Item 601 of Regulation S-K).

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| | |
|:---|:---|
| **<u>Exhibit No.</u>** | **<u>Description</u>** |
| <u>[3.1](ex31-gnlcompositecharter.htm)</u> \* | Composite Charter of Global Net Lease, Inc. |
| <u>[3.2](https://www.sec.gov/Archives/edgar/data/1526113/000110465925031939/tm2510320d3_ex3-1.htm)</u> | Third Amended and Restated Bylaws of Global Net Lease, Inc., effective April 2, 2025 (incorporated by reference to Exhibit 3.1 to the Form 8-K, filed by Global Net Lease, Inc. on April 4, 2025). |
| <u>[10.1](https://www.sec.gov/Archives/edgar/data/1526113/000110465925052963/tm2516007d1_ex10-1.htm)</u>+ | 2025 Omnibus Incentive Compensation Plan of Global Net Lease, Inc. (incorporated by reference to Exhibit 10.1 to the Form 8-K, filed by Global Net Lease, Inc. on May 27, 2025). |
| <u>[31.1](ex311-gnlceo302certificati.htm)</u> \* | Certification of the Principal Executive Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| <u>[31.2](ex312-gnlcfo302certificati.htm)</u> \* | Certification of the Principal Financial Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| <u>[32](ex32-gnlceoandcfo906certif.htm)</u> \* | Written statements of the Principal Executive Officer and Principal Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 101.INS \* | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH \* | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CAL \* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF \* | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB \* | Inline XBRL Taxonomy Extension Label Linkbase Document. |
| 101.PRE \* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104 \* | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |

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_________

\*Filed or furnished herewith.

+ Indicates a management contract or compensatory plan.

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
| **Global Net Lease, Inc.** | **Global Net Lease, Inc.** |
| By: | /s/ Edward M. Weil, Jr. |
|  | Edward M. Weil, Jr. |
|  | *Chief Executive Officer and President* |
| By: | /s/ Christopher J. Masterson |
|  | Christopher J. Masterson |
|  | *Chief Financial Officer, Treasurer, and Secretary<br>(Principal Financial Officer and Principal Accounting Officer)* |

---

Dated: August 7, 2025

## Exhibit 3.1

THIS COMPOSITE ARTICLES OF RESTATEMENT OF GLOBAL NET LEASE, INC. (THE "COMPANY") REFLECTS THE PROVISIONS OF THE COMPANY'S ARTICLES OF RESTATEMENT AND ALL AMENDMENTS THERETO FILED WITH THE STATE DEPARTMENT OF ASSESSMENTS AND TAXATION OF MARYLAND THEREAFTER ON OR PRIOR TO JUNE 30, 2025, BUT IS NOT AN AMENDMENT AND/OR RESTATEMENT THEREOF.

**EXHIBIT 3.1** 

**COMPOSITE**

**ARTICLES OF RESTATEMENT** 

**FOR** 

**GLOBAL NET LEASE, INC.**

**a Maryland corporation**

**FIRST:** Global Net Lease, Inc., a Maryland corporation (the "**Company**"), desires to restate its charter as currently in effect.

**SECOND:** The following provisions, together with the descriptions of the preferences, conversion and other rights, voting powers, restriction, limitations as to dividends and other distributions, qualifications and terms and conditions of redemption of (i) the 7.25% Series A Cumulative Redeemable Preferred Stock, attached hereto as Exhibit A, (ii) the 6.875% Series B Cumulative Redeemable Perpetual Preferred Stock, attached hereto as Exhibit B, (iii) the 7.50% Series D Cumulative Redeemable Perpetual Preferred Stock, attached hereto as Exhibit C and (iv) the 7.375% Series E Cumulative Redeemable Perpetual Preferred Stock, attached hereto as Exhibit D, which are incorporated herein by reference and made a part hereof, are all the provisions of the charter currently in effect:

**ARTICLE I** 

**NAME**

The name of the corporation is Global Net Lease, Inc. (the "**Company**"). So far as may be practicable, the business of the Company shall be conducted and transacted under that name. Under circumstances in which the Company's Board of Directors determines that the use of the name "Global Net Lease, Inc." is not practicable, it may use any other designation or name for the Company.

**ARTICLE II**

**PURPOSES AND POWERS**

The purposes for which the Company is formed are to engage in any lawful act or activity (including, without limitation or obligation, qualifying and engaging in business as a real estate investment trust under Sections 856 through 860, or any successor sections, of the Internal Revenue Code of 1986, as amended (the "**Code**")), for which corporations may be organized under the MGCL and the general laws of the State of Maryland as now or hereafter in force.

**ARTICLE III**

**RESIDENT AGENT AND PRINCIPAL OFFICE**

------

The name and address of the resident agent for service of process of the Company in the State of Maryland is CSC-Lawyers Incorporating Service Company, 7 St. Paul Street, Suite 820, Baltimore, Maryland 21202. The address of the Company's principal office in the State of Maryland is c/o CSC-Lawyers Incorporating Service Company, 7 St. Paul Street, Suite 820, Baltimore, Maryland 21202. The Company may have such other offices and places of business within or outside the State of Maryland as the Board may from time to time determine.

![image_3.jpg](image_3.jpg)

**ARTICLE IV** 

**DEFINITIONS**

As used in the Charter, the following terms shall have the following meanings unless the context otherwise requires:

"**BOARD**" means the Board of Directors and the Company.

"**BYLAWS**" means the Bylaws of the Company, as amended from time to time.

"**CHARTER**" means the charter of the Company.

"**CODE**" shall have the meaning as provided in Article II herein.

"**COMMON SHARES**" shall have the meaning as provided in Section 5.1 herein.

"**COMPANY**" shall have the meaning as provided in Article I herein.

"**DIRECTOR**" means a director of the Company.

"**DISTRIBUTIONS**" means any distributions of money or other property, pursuant to Section 5.2(iii) hereof, by the Company to owners of Shares, including distributions that may constitute a return of capital for federal income tax purposes.

"**MGCL**" means the Maryland General Corporation Law, as in effect from time to time.

"**PERSON**" means an individual, corporation, partnership, estate, trust (including a trust qualified under Sections 401(a) or 501(c)(17) of the Code), a portion of a trust permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other legal entity and also includes a group as that term is used for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, and a group to which an Excepted Holder Limit (as defined in Article V, Section 5.7(i) hereof) applies.

"**PREFERRED SHARES**" shall have the meaning as provided in Section 5.1 herein.

------

"**REIT**" means a corporation, trust, association or other legal entity (other than a real estate syndication) that is engaged primarily in investing in equity interests in real estate (including fee ownership and leasehold interests) or in loans secured by real estate or both, as defined pursuant to the REIT Provisions of the Code.

"**REIT PROVISIONS OF THE CODE**" means Sections 856 through 860 of the Code and any successor or other provisions of the Code relating to real estate investment trusts (including provisions as to the attribution of ownership of beneficial interests therein) and the regulations promulgated thereunder.

"**SECURITIES**" means any of the following issued by the Company, as the text requires: Shares, any other stock, shares or other evidences of equity or beneficial or other interests, voting trust certificates, bonds, debentures, notes or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as "securities" or any certificates of interest, shares or participations in, temporary or interim certificates for, receipts for, guarantees of, or warrants, options or rights to subscribe to, purchase or acquire, any of the foregoing.

![image_3.jpg](image_3.jpg)

"**SHARES**" means shares of capital stock of the Company of any class or series, including Common Shares or Preferred Shares.

"**STOCKHOLDERS**" means the holders of record of the Company's Shares as maintained in the books and records of the Company or its transfer agent.

**ARTICLE V** 

**STOCK**

**SECTION 5.1 AUTHORIZED SHARES**. The total number of Shares that the Company shall have authority to issue is 440,000,000 shares, of which (i) 400,000,000 shall be designated as common stock, $0.01 par value per share (the "Common Shares"); and (ii) 40,000,000 shall be designated as preferred stock, $0.01 par value per share (the "Preferred Shares"). All shares shall be fully paid and nonassessable when issued. The aggregate par value of all authorized shares of stock having par value is $4,400,000. If shares of one class of stock are classified or reclassified into shares of another class of stock pursuant to Section 5.2(ii) or Section 5.3 of this Article V, the number of authorized shares of the former class shall be automatically decreased and the number of shares of the latter class shall be automatically increased, in each case by the number of shares so classified or reclassified, as the case may be, so that the aggregate number of Shares of all classes that the Company has authority to issue shall not be more than the total number of Shares set forth in the first sentence of this paragraph. The Board, with the approval of a majority of the entire Board and without any action by the Stockholders, may amend the Charter from time to time to increase or decrease the aggregate number of Shares or the number of Shares of any class or series that the Company has authority to issue.

**SECTION 5.2 COMMON SHARES.**

(i)COMMON SHARES SUBJECT TO TERMS OF PREFERRED SHARES. The Common Shares shall be subject to the express terms of any series of Preferred Shares.

(ii)DESCRIPTION. Subject to Section 5.7 of this Article V and except as may otherwise be specified in the Charter, each Common Share shall entitle the holder thereof to one vote. The Board may classify or reclassify any unissued Common Shares from time to time into one or more classes or series of stock.

------

(iii)DISTRIBUTION RIGHTS. The Board from time to time may authorize the Company to declare and pay to Stockholders such dividends or other Distributions in cash or other assets of the Company or in securities of the Company or from any other source as the Board in its discretion shall determine. The Board shall endeavor to authorize the Company to declare and pay such dividends and Distributions as shall be necessary for the Company to qualify as a REIT under the REIT Provisions of the Code unless the Board has determined, in its sole discretion, that qualification as a REIT is not in the best interests of the Company; provided, however, Stockholders shall have no right to any dividend or Distribution unless and until authorized by the Board and declared by the Company. The exercise of the powers and rights of the Board pursuant to this section shall be subject to the provisions of any class or series of Shares at the time outstanding. The receipt by any Person in whose name any Shares are registered on the records of the Company or by his or her duly authorized agent shall be a sufficient discharge for all dividends or Distributions payable or deliverable in respect of such Shares and from all liability to see to the application thereof.

(iv)RIGHTS UPON LIQUIDATION. In the event of any voluntary or involuntary liquidation, dissolution or winding up, or any distribution of the assets of the Company, the aggregate assets available for distribution to holders of the Common Shares shall be determined in accordance with applicable law. Each holder of Common Shares of a particular class shall be entitled to receive, ratably with each other holder of Common Shares of such class, that portion of such aggregate assets available for distribution as the number of outstanding Common Shares of such class held by such holder bears to the total number of outstanding Common Shares of such class then outstanding.

![image_3.jpg](image_3.jpg)

(v)VOTING RIGHTS. Except as may be provided otherwise in the Charter, and subject to the express terms of any class or series of Preferred Shares, the holders of the Common Shares shall have the exclusive right to vote on all matters (as to which a common stockholder shall be entitled to vote pursuant to applicable law) at all meetings of the Stockholders.

**SECTION 5.3 PREFERRED SHARES**. The Board may classify any unissued Preferred Shares and reclassify any previously classified but unissued Preferred Shares of any series from time to time, into one or more classes or series of Shares.

**SECTION 5.4 CLASSIFIED OR RECLASSIFIED SHARES**. Prior to issuance of classified or reclassified Shares of any class or series, the Board by resolution shall: (a) designate that class or series to distinguish it from all other classes and series Shares; (b) specify the number of Shares to be included in the class or series; (c) set or change, subject to the provisions of Section 5.9 and subject to the express terms of any class or series of Shares outstanding at the time, the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other Distributions, qualifications and terms and conditions of redemption for each class or series; and (d) cause the Company to file articles supplementary with the State Department of Assessments and Taxation of Maryland. Any of the terms of any class or series of Shares set or changed pursuant to clause (c) of this Section 5.4 may be made dependent upon facts or events ascertainable outside the Charter (including determinations by the Board or other facts or events within the control of the Company) and may vary among holders thereof, provided that the manner in which such facts, events or variations shall operate upon the terms of such class or series of Shares is clearly and expressly set forth in the articles supplementary or other charter document.

**SECTION 5.5 STOCKHOLDERS' CONSENT IN LIEU OF MEETING**. Any action required or permitted to be taken at any meeting of the Stockholders may be taken without a meeting by consent, in writing or by electronic transmission, in any manner permitted by the MGCL and set forth in the Bylaws.

------

**SECTION 5.6 CHARTER AND BYLAWS**. The rights of all Stockholders and the terms of all Shares are subject to the provisions of the Charter and the Bylaws.

**SECTION 5.7 RESTRICTIONS ON OWNERSHIP AND TRANSFER**.

(i)DEFINITIONS. For purposes of Section 5.7, the following terms shall have the following meanings:

"**AGGREGATE SHARE OWNERSHIP LIMIT**" means 9.8% in value of the aggregate of the outstanding Shares and 9.8% (in value or in number of shares, whichever is more restrictive) of any class or series of Shares, or such other percentage determined by the Board in accordance with Section 5.7(ii)(h) of the Charter.

"**BENEFICIAL OWNERSHIP**" means ownership of Shares by a Person, whether the interest in the Shares is held directly or indirectly (including by a nominee), and shall include interests that would be treated as owned through the application of Section 544 of the Code, as modified by Section 856(h)(1)(B) of the Code. The terms "Beneficial Owner," "Beneficially Owns" and "Beneficially Owned" shall have the correlative meanings.

"**BUSINESS DAY**" means any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions in New York City are authorized or required by law, regulation or executive order to close.

"**CHARITABLE BENEFICIARY**" means one or more beneficiaries of the Trust as determined pursuant to Section 5.7(iii)(f), provided that each such organization must be described in Section 501(c)(3) of the

![image_3.jpg](image_3.jpg)

Code and contributions to each such organization must be eligible for deduction under each of Sections 170(b)(1)(A), 2055 and 2522 of the Code.

"**CONSTRUCTIVE OWNERSHIP**" means ownership of Shares by a Person, whether the interest in the Shares is held directly or indirectly (including by a nominee), and shall include interests that would be treated as owned through the application of Section 318(a) of the Code, as modified by Section 856(d)(5) of the Code. The terms "Constructive Owner," "Constructively Owns" and "Constructively Owned" shall have the correlative meanings.

"**EXCEPTED HOLDER LIMIT**" means, provided that the affected Excepted Holder agrees to comply with the requirements established by the Board pursuant to Section 5.7(ii)(g), and subject to adjustment pursuant to Section 5.7(ii)(h), the percentage limit established by the Board pursuant to Section 5.7(ii)(g).

"**MARKET PRICE**" on any date means, with respect to any class or series of outstanding Shares, the Closing Price for such Shares on such date. The "Closing Price" on any date shall mean the last sale price for such Shares, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, for such Shares, in either case as reported on the principal national securities exchange on which such Shares are Listed or admitted to trading or, if such Shares are not Listed or admitted to

------

trading on any national securities exchange, the last quoted price, or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by the principal automated quotation system that may then be in use or, if such Shares are not quoted by any such system, the average of the closing bid and asked prices as furnished by a professional market maker making a market in such Shares selected by the Board or, in the event that no trading price is available for such Shares, the fair market value of the Shares, as determined in good faith by the Board.

**"NYSE**" means the New York Stock Exchange.

"**PROHIBITED OWNER**" means, with respect to any purported Transfer, any Person who, but for the provisions of Section 5.7(ii)(a), would Beneficially Own or Constructively Own Shares, and if appropriate in the context, shall also mean any Person who would have been the record owner of the Shares that the Prohibited Owner would have so owned.

"**RESTRICTION TERMINATION DATE**" means the first day on which the Board determines pursuant to Section 7.3 of the Charter that it is no longer in the best interests of the Company to attempt to, or continue to, qualify as a REIT or that compliance with the restrictions and limitations on Beneficial Ownership, Constructive Ownership and Transfers of Shares set forth herein is no longer required in order for the Company to qualify as a REIT.

"**TRANSFER**" means any issuance, sale, transfer, gift, assignment, devise or other disposition, as well as any other event that causes any Person to acquire Beneficial Ownership or Constructive Ownership of Shares or the right to vote or receive dividends on Shares, or any agreement to take any such actions or cause any such events, including (a) the granting or exercise of any option (or any disposition of any option), (b) any disposition of any securities or rights convertible into or exchangeable for Shares or any interest in Shares or any exercise of any such conversion or exchange right and (c) Transfers of interests in other entities that result in changes in Beneficial or Constructive Ownership of Shares; in each case, whether voluntary or involuntary, whether owned of record, Constructively Owned or Beneficially Owned and whether by operation of law or otherwise. The terms "Transferring" and "Transferred" shall have the correlative meanings.

"**TRUST**" means any trust provided for in Section 5.7(iii)(a).

![image_3.jpg](image_3.jpg)

"**TRUSTEE**" means the Person unaffiliated with the Company and a Prohibited Owner, that is appointed by the Company to serve as trustee of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) SHARES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) OWNERSHIP LIMITATIONS. Prior to the Restriction Termination Date, but subject to Section 5.8:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) BASIC RESTRICTIONS.

(A)(1) No Person, other than an Excepted Holder, shall Beneficially Own or Constructively Own Shares in excess of the Aggregate Share Ownership Limit and (2) no Excepted Holder shall Beneficially Own or Constructively Own Shares in excess of the Excepted Holder Limit for such Excepted Holder.

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(B)No Person shall Beneficially or Constructively Own Shares to the extent that such Beneficial or Constructive Ownership of Shares would result in the Company being "closely held" within the meaning of Section 856(h) of the Code (without regard to whether the ownership interest is held during the last half of a taxable year), or otherwise failing to qualify as a REIT (including, but not limited to, Beneficial or Constructive Ownership that would result in the Company owning (actually or Constructively) an interest in a tenant that is described in Section 856(d)(2)(B) of the Code if the income derived by the Company from such tenant would cause the Company to fail to satisfy any of the gross income requirements of Section 856(c) of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Any Transfer of Shares that, if effective, would result in Shares being beneficially owned by less than 100 Persons (determined under the principles of Section 856(a)(5) of the Code) shall be void *ab initio* , and the intended transferee shall acquire no rights in such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) TRANSFER IN TRUST. If any Transfer of Shares occurs which, if effective, would result in any Person Beneficially Owning or Constructively Owning Shares in violation of Section 5.7(ii)(a)(l)(A) or (B),

(A)then that number of Shares the Beneficial or Constructive Ownership of which otherwise would cause such Person to violate Section 5.7(ii)(a)(I)(A) or (B) (rounded up to the nearest whole share) shall be automatically transferred to a Trust for the benefit of a Charitable Beneficiary, as described in Section 5.7(iii), effective as of the close of business on the Business Day prior to the date of such Transfer, and such Person shall acquire no rights in such shares; or

(B)if the transfer to the Trust described in clause (A) of this sentence would not be effective for any reason to prevent the violation of Section 5.7(ii)(a)(I)(A) or (B) then the Transfer of that number of Shares that otherwise would cause any Person to violate Section 5.7(ii)(a)(I)(A) or (B) shall be void *ab initio*, and the intended transferee shall acquire no rights in such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) To the extent that, upon a transfer of Shares pursuant to Section 5.7(ii)(a)(II), a violation of any provision of this Section 5.7 would nonetheless be continuing (for example where the ownership of Shares by a single Trust would violate the 100 stockholder requirement applicable to REITs), then Shares shall be transferred to that number of Trusts, each having a distinct Trustee and a Charitable Beneficiary or Beneficiaries that are distinct from those of each other Trust, such that there is no violation of any provision of this Section 5.7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) REMEDIES FOR BREACH. If the Board or any duly authorized committee thereof shall at any time determine in good faith that a Transfer or other event has taken place that results in a violation of Section 5.7(ii)(a) or that a Person intends to acquire or has attempted to acquire Beneficial or Constructive

![image_3.jpg](image_3.jpg)

Ownership of any Shares in violation of Section 5.7(ii)(a) (whether or not such violation is intended), the Board or a committee thereof shall take such action as it deems advisable to refuse to give effect to or to prevent such Transfer or other event, including, without limitation, causing the Company to redeem Shares, refusing to give effect to such Transfer on the books of the Company or instituting proceedings to enjoin such Transfer or other event; provided, however, that any Transfer or attempted Transfer or other event in violation of Section 5.7(ii)(a) shall automatically result in the transfer to the Trust described above, and, where applicable, such Transfer (or other event) shall be void *ab initio* as provided above irrespective of any action (or non-action) by the Board or a committee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) NOTICE OF RESTRICTED TRANSFER. Any Person who acquires or attempts or intends to acquire Beneficial Ownership or Constructive Ownership of Shares that will or may violate Section 5.7(ii)(a)(I)(A) or (B) or any Person who would have owned Shares that resulted in a transfer to the Trust pursuant to the

------

provisions of Section 5.7(ii)(a)(II) shall immediately give written notice to the Company of such event, or in the case of such a proposed or attempted transaction, give at least 15 days prior written notice, and shall provide to the Company such other information as the Company may request in order to determine the effect, if any, of such Transfer on the Company's status as a REIT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) OWNERS REQUIRED TO PROVIDE INFORMATION. Prior to the Restriction Termination Date:

(I)every owner of more than five percent (or such lower percentage as required by the Code or the Treasury Regulations promulgated thereunder) of the outstanding Shares, within 30 days after the end of each taxable year, shall give written notice to the Company stating the name and address of such owner, the number of Shares Beneficially Owned and a description of the manner in which such Shares are held. Each such owner shall provide to the Company such additional information as the Company may request in order to determine the effect, if any, of such Beneficial Ownership on the Company's status as a REIT and to ensure compliance with the Aggregate Share Ownership Limit; and

(II)each Person who is a Beneficial or Constructive Owner of Shares and each Person (including the stockholder of record) who is holding Shares for a Beneficial or Constructive Owner shall provide to the Company such information as the Company may request, in good faith, in order to determine the Company's status as a REIT and to comply with requirements of any taxing authority or governmental authority or to determine such compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) REMEDIES NOT LIMITED. Subject to Section 7.3 of the Charter, nothing contained in this Section 5.7(ii)(e) shall limit the authority of the Board to take such other action as it deems necessary or advisable to protect the Company and the interests of its stockholders in preserving the Company's status as a REIT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) AMBIGUITY. In the case of an ambiguity in the application of any of the provisions of this Section 5.7(ii), Section 5.7(iii), or any definition contained in Section 5.7(i), the Board shall have the power to determine the application of the provisions of this Section 5.7(ii) or Section 5.7(iii) or any such definition with respect to any situation based on the facts known to it. In the event Section 5.7(ii) or (iii) requires an action by the Board and the Charter fails to provide specific guidance with respect to such action, the Board shall have the power to determine the action to be taken so long as such action is not contrary to the provisions of Section 5.7. Absent a decision to the contrary by the Board (which the Board may make in its sole and absolute discretion), if a Person would have (but for the remedies set forth in Section 5.7(ii)(b)) acquired Beneficial or Constructive Ownership of Shares in violation of Section 5.7(ii)(a), such remedies (as applicable) shall apply first to the Shares which, but for such remedies, would have been Beneficially Owned or Constructively Owned (but not actually owned) by such Person, pro rata among the Persons who actually own such Shares based upon the relative number of the Shares held by each such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) EXCEPTIONS.

![image_3.jpg](image_3.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Subject to Section 5.7(ii)(a)(I)(B), the Board, in its sole discretion, may (prospectively or retroactively) exempt a Person from the Aggregate Share Ownership Limit and may establish or increase an Excepted Holder Limit for such Person if:

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(A)the Board obtains such representations and undertakings from such Person as are reasonably necessary to ascertain that no individual's Beneficial or Constructive Ownership of such Shares will violate Section 5.7(ii)(a)(I)(B);

(B)such Person does not and represents that it will not own, actually or Constructively, an interest in a tenant of the Company (or a tenant of any entity owned or controlled by the Company) that would cause the Company to own, actually or Constructively, more than a 9.9% interest (as set forth in Section 856(d)(2)(B) of the Code) in such tenant and the Board obtains such representations and undertakings from such Person as are reasonably necessary to ascertain this fact (for this purpose, a tenant from whom the Company (or an entity owned or controlled by the Company) derives (and is expected to continue to derive) a sufficiently small amount of revenue such that, in the opinion of the Board, rent from such tenant would not adversely affect the Company's ability to qualify as a REIT, shall not be treated as a tenant of the Company); and

(C)such Person agrees that any violation or attempted violation of such representations or undertakings (or other action which is contrary to the restrictions contained in Section 5.7(ii)(a) through Section 5.7(ii)(f)) will result in such Shares being automatically transferred to a Trust in accordance with Section 5.7(ii)(A)(II) and Section 5.7(iii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) Prior to granting any exception pursuant to Section 5.7(ii)(g)(I), the Board may require a ruling from the Internal Revenue Service, or an opinion of counsel, in either case in form and substance satisfactory to the Board in its sole discretion, as it may deem necessary or advisable in order to determine or ensure the Company's status as a REIT. Notwithstanding the receipt of any ruling or opinion, the Board may impose such conditions or restrictions as it deems appropriate in connection with granting such exception.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) Subject to Section 5.7(ii)(a)(I)(B), an underwriter which participates in an Offering or a private placement of Shares (or Securities convertible into or exchangeable for Shares) may Beneficially Own or Constructively Own Shares (or Securities convertible into or exchangeable for Shares) in excess of the Aggregate Share Ownership Limit but only to the extent necessary to facilitate such Offering or private placement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) The Board may only reduce the Excepted Holder Limit for an Excepted Holder: (1) with the written consent of such Excepted Holder at any time, or (2) pursuant to the terms and conditions of the agreements and undertakings entered into with such Excepted Holder in connection with the establishment of the Excepted Holder Limit for that Excepted Holder. No Excepted Holder Limit shall be reduced to a percentage that is less than the Aggregate Share Ownership Limit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) INCREASE OR DECREASE IN AGGREGATE SHARE OWNERSHIP LIMIT. Subject to Section 5.7(ii)(a)(I)(B), the Board may from time to time increase the Aggregate Share Ownership Limit for one or more Persons and decrease the Aggregate Share Ownership Limit for all other Persons; provided, however, that the decreased Aggregate Share Ownership Limit will not be effective for any Person whose percentage ownership of Shares is in excess of such decreased Aggregate Share Ownership Limit until such time as such Person's percentage of Shares equals or falls below the decreased Aggregate Share Ownership Limit, but any further acquisition of Shares in excess of such percentage ownership of Shares will be in violation of the Aggregate Share Ownership Limit and, provided further, that the new Aggregate Share Ownership Limit would not allow five or fewer Persons to Beneficially Own or Constructively Own more than 49.9% in value of the outstanding Shares.

![image_3.jpg](image_3.jpg)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) NOTICE TO STOCKHOLDERS UPON ISSUANCE OR TRANSFER. Upon issuance or transfer of Shares prior to the Restriction Termination Date, the Company shall provide the recipient with a notice containing information about the Shares purchased or otherwise transferred, in lieu of issuance of a share certificate, in a form substantially similar to the following:

The securities of Global Net Lease, Inc. (the "Company") are subject to restrictions on Beneficial and Constructive Ownership and Transfer for the purpose, among others, of the Company's maintenance of its status as a real estate investment trust under the Internal Revenue Code of 1986, as amended (the "Code"). Subject to certain further restrictions and except as expressly provided in the Company's charter, (i) no Person may Beneficially or Constructively Own Shares in excess of 9.8% of the value of the total outstanding Shares or 9.8% (in value or in number of shares, whichever is more restrictive) of any class or series of Shares unless such Person is an Excepted Holder (in which case the Excepted Holder Limit shall be applicable); (ii) no Person may Beneficially or Constructively Own Shares that would result in the Company being "closely held" under Section 856(h) of the Code or otherwise cause the Company to fail to qualify as a REIT; and (iii) any Transfer of Shares that, if effective, would result in the Shares being beneficially owned by fewer than 100 Persons (as determined under the principles of Section 856(a)(5) of the Code) shall be void *ab initio* and the intended transferee shall acquire no rights in such Shares. Any Person who Beneficially or Constructively Owns or attempts to Beneficially or Constructively Own Shares which causes or will cause a Person to Beneficially or Constructively Own Shares in excess or in violation of the above limitations must immediately notify the Company in writing (or, in the case of an attempted transaction, give at least 15 days prior written notice). If any of the restrictions on transfer or ownership as set forth in (i) and (ii) above are violated, the Shares in excess or in violation of the above limitations will be automatically transferred to a Trustee of a Trust for the benefit of one or more Charitable Beneficiaries. In addition, the Company may redeem shares upon the terms and conditions specified by the Board in its sole discretion if the Board determines that ownership or a Transfer or other event may violate the restrictions described above. Furthermore, upon the occurrence of certain events, attempted Transfers in violation of the restrictions described in (i) and (ii) above may be void *ab initio*. All capitalized terms in this notice have the meanings defined in the Company's charter, as the same may be amended from time to time, a copy of which, including the restrictions on transfer and ownership, will be furnished to each holder of Shares of the Company on request and without charge. Requests for such a copy may be directed to the Secretary of the Company at its principal office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) TRANSFER OF SHARES IN TRUST.

(a)OWNERSHIP IN TRUST. Upon any purported Transfer or other event described in Section 5.7(ii)(a)(III) that would result in a transfer of Shares to a Trust, such Shares shall be transferred to the Trustee as trustee of a Trust for the exclusive benefit of one or more Charitable Beneficiaries. Such transfer to the Trustee shall be effective as of the close of business on the Business Day prior to the purported Transfer or other event that results in the transfer to the Trust pursuant to Section 5.7(ii)(a)(III). The Trustee shall be appointed by the Company and shall be a Person unaffiliated with the Company and any Prohibited Owner. Each Charitable Beneficiary shall be designated by the Company as provided in Section 5.7(iii)(f).

(b)STATUS OF SHARES HELD BY THE TRUSTEE. Shares held by the Trustee shall be issued and outstanding Shares of the Company. The Prohibited Owner shall have no rights in the shares held by the Trustee. The Prohibited Owner shall not benefit economically from ownership of any Shares held in trust by the Trustee, shall have no rights to dividends or other Distributions and shall not possess any rights to vote or other rights attributable to the Shares held in the Trust.

(c)DIVIDEND AND VOTING RIGHTS. The Trustee shall have all voting rights and rights to dividends or other Distributions with respect to Shares held in the Trust, which rights shall be exercised for the exclusive benefit of the Charitable Beneficiary. Any dividend or other Distribution paid prior to the discovery by the Company that the Shares have been transferred to the Trustee shall be paid by the recipient of such dividend or

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![image_3.jpg](image_3.jpg)

Distribution to the Trustee upon demand and any dividend or other Distribution authorized but unpaid shall be paid when due to the Trustee. Any dividend or other Distribution so paid to the Trustee shall be held in trust for the Charitable Beneficiary. The Prohibited Owner shall have no voting rights with respect to shares held in the Trust and, subject to Maryland law, effective as of the date that the Shares have been transferred to the Trustee, the Trustee shall have the authority (at the Trustee's sole discretion) (i) to rescind as void any vote cast by a Prohibited Owner prior to the discovery by the Company that the Shares have been transferred to the Trustee and (ii) to recast such vote in accordance with the desires of the Trustee acting for the benefit of the Charitable Beneficiary; provided, however, that if the Company has already taken irreversible corporate action, then the Trustee shall not have the authority to rescind and recast such vote. Notwithstanding the provisions of this Section 5.7, until the Company has received notification that Shares have been transferred into a Trust, the Company shall be entitled to rely on its stock transfer and other stockholder records for purposes of preparing lists of Stockholders entitled to vote at meetings, determining the validity and authority of proxies and otherwise conducting votes of Stockholders.

(d)SALE OF SHARES BY TRUSTEE. Within 20 days of receiving notice from the Company that Shares have been transferred to the Trust, the Trustee shall sell the Shares held in the Trust to a person, designated by the Trustee, whose ownership of the Shares will not violate the ownership limitations set forth in Section 5.7(ii)(a)(I) or (II). Upon such sale, the interest of the Charitable Beneficiary in the Shares sold shall terminate and the Trustee shall distribute the net proceeds of the sale to the Prohibited Owner and to the Charitable Beneficiary as provided in this Section 5.7(iii)(d). The Prohibited Owner shall receive the lesser of (1) the price paid by the Prohibited Owner for the Shares or, if the Prohibited Owner did not give value for the Shares in connection with the event causing the Shares to be held in the Trust (e.g., in the case of a gift, devise or other such transaction), the Market Price of the Shares on the day of the event causing the Shares to be held in the Trust and (2) the price per Share received by the Trustee from the sale or other disposition of the Shares held in the Trust. The Trustee may reduce the amount payable to the Prohibited Owner by the amount of dividends and other Distributions which have been paid to the Prohibited Owner and are owed by the Prohibited Owner to the Trustee pursuant to Section 5.7(c). Any net sales proceeds in excess of the amount payable to the Prohibited Owner shall be immediately paid to the Charitable Beneficiary. If, prior to the discovery by the Company that Shares have been transferred to the Trustee, such Shares are sold by a Prohibited Owner, then (i) such Shares shall be deemed to have been sold on behalf of the Trust and (ii) to the extent that the Prohibited Owner received an amount for such Shares that exceeds the amount that such Prohibited Owner was entitled to receive pursuant to this Section 5.7, such excess shall be paid to the Trustee upon demand.

(e)PURCHASE RIGHT IN STOCK TRANSFERRED TO THE TRUSTEE. Shares transferred to the Trustee shall be deemed to have been offered for sale to the Company, or its designee, at a price per Share equal to the lesser of (i) the price per Share in the transaction that resulted in such transfer to the Trust (or, in the case of a devise or gift, the Market Price at the time of such devise or gift) and (ii) the Market Price on the date the Company, or its designee, accepts such offer. The Company may reduce the amount payable to the Prohibited Owner by the amount of dividends and other Distributions which has been paid to the Prohibited Owner and is owed by the Prohibited Owner to the Trustee pursuant to Section 5.7(c). The Company may pay the amount of such reduction to the Trustee for the benefit of the Charitable Beneficiary. The Company shall have the right to accept such offer until the Trustee has sold the shares held in the Trust pursuant to Section 5.7(iii)(d). Upon such a sale to the Company, the interest of the Charitable Beneficiary in the Shares sold shall terminate and the Trustee shall distribute the net proceeds of the sale to the Prohibited Owner.

(f)DESIGNATION OF CHARITABLE BENEFICIARIES. By written notice to the Trustee, the Company shall designate one or more nonprofit organizations to be the Charitable Beneficiary of the interest in the Trust such that (i) the Shares held in the Trust would not violate the restrictions set forth in Section 5.7(ii)(a)(I) or (II) in the hands of such Charitable Beneficiary and (ii) each such organization must be described in Section

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501(c)(3) of the Code and contributions to each such organization must be eligible for deduction under each of Sections 170(b)(1)(A), 2055 and 2522 of the Code.

![image_3.jpg](image_3.jpg)

**SECTION 5.8 SETTLEMENTS**. Nothing in Section 5.7 shall preclude the settlement of any transaction entered into through the facilities of the NYSE or any other national securities exchange or automated inter-dealer quotation system. The fact that the settlement of any transaction occurs shall not negate the effect of any provision of Sections 5.7, and any transfer in such a transaction shall be subject to all of the provisions and limitations set forth in Section 5.7.

**SECTION 5.9 SEVERABILITY**. If any provision of Section 5.7 or any application of any such provision is determined to be void, invalid or unenforceable by any court having jurisdiction over the issue, the validity and enforceability of the remaining provisions of Section 5.7 shall not be affected and other applications of such provision shall be affected only to the extent necessary to comply with the determination of such court.

**SECTION 5.10 ENFORCEMENT**. The Company is authorized specifically to seek equitable relief, including injunctive relief, to enforce the provisions of Section 5.7.

**SECTION 5.11 NON-WAIVER**. No delay or failure on the part of the Company or the Board in exercising any right hereunder shall operate as a waiver of any right of the Company or the Board, as the case may be, except to the extent specifically waived in writing.

**SECTION 5.12 PREEMPTIVE AND APPRAISAL RIGHTS**. Except as may be provided by the Board in setting the terms of classified or reclassified Shares pursuant to Section 5.4 or as may otherwise be provided by contract approved by the Board, no holder of Shares shall, as such holder, have any preemptive right to purchase or subscribe for any additional Shares or any other security of the Company which it may issue or sell. Holders of Shares shall not be entitled to exercise any rights of an objecting stockholder provided for under Title 3, Subtitle 2 of the MGCL or any successor statute unless the Board, upon the affirmative vote of a majority of the Board, shall determine that such rights apply, with respect to all or any classes or series of Shares, to one or more transactions occurring after the date of such determination in connection with which holders of such Shares would otherwise be entitled to exercise such rights.

**ARTICLE VI**

**BOARD OF DIRECTORS**

**SECTION 6.1 NUMBER OF DIRECTORS**. The number of Directors of the Company shall be seven, which number may be increased or decreased from time to time pursuant to the Bylaws but shall never be less than the minimum number required by the MGCL. The Company elects, at such time as it becomes eligible to make the election provided for under Section 3-804(c) of the MGCL, that, except as may be provided by the Board in setting the terms of any class or series of Shares, any and all vacancies on the Board may be filled only by the affirmative vote of a majority of the remaining Directors in office, even if the remaining Directors do not constitute a quorum, and any Director elected to fill a vacancy shall serve for the remainder of the full term of the directorship in which such vacancy occurred. No reduction in the number of Directors shall cause the removal of any Director from office prior to the expiration of his term, except as may otherwise be provided in the terms of any Preferred Shares. For the purposes of voting for Directors, each Share may be voted for as many individuals as there are Directors to be elected and for whose election the Share is entitled to be voted. Cumulative voting for Directors is prohibited.

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The names of the Directors who shall serve on the Board until the next annual meeting of the Stockholders and until their successors are duly elected and qualify, are:

M. Therese Antone

Lee. M. Elman

James L. Nelson

![image_3.jpg](image_3.jpg)

P. Sue Perrotty

Edward G. Rendell

Edward M. Weil, Jr.

Abby M. Wenzel

or such other Directors as appointed in accordance with this Charter.

**SECTION 6.2 RESIGNATION OR REMOVAL**. Any Director may resign by delivering notice to the Board, effective upon receipt by the Board of such notice or upon any future date specified in the notice. Subject to the rights of holders of one or more classes or series of Preferred Shares, any Director or the entire Board may be removed from office at any time, but only for cause and then only by the affirmative vote of at least two-thirds of the votes entitled to be cast generally in the election of Directors. For the purpose of this paragraph, "cause" shall mean, with respect to any particular Director, conviction of a felony or a final judgment of a court of competent jurisdiction holding that such director caused demonstrable, material harm to the Company through bad faith or active and deliberate dishonesty.

**ARTICLE VII**

**POWERS OF THE BOARD OF DIRECTORS**

**SECTION 7.1 GENERAL**. The business and affairs of the Company shall be managed under the direction of the Board. The Board may take any action that, in its sole judgment and discretion, is necessary or desirable to conduct the business of the Company. The Charter shall be construed with a presumption in favor of the grant of power and authority to the Board. Any construction of the Charter or determination made in good faith by the Board concerning its powers and authority hereunder shall be conclusive. The enumeration and definition of particular powers of the Board included in this Article VII shall in no way be limited or restricted by reference to or inference from the terms of this or any other provision of the Charter or construed or deemed by inference or otherwise in any manner to exclude or limit the powers conferred upon the Board under the general laws of the State of Maryland as now or hereafter in force.

**SECTION 7.2 AUTHORIZATION BY BOARD OF STOCK ISSUANCE**. The Board may authorize the issuance from time to time of Shares of any class or series, whether now or hereafter authorized, or securities or rights convertible into Shares of any class or series, whether now or hereafter authorized, for such consideration as the Board may deem advisable (or without consideration in the case of a stock split or stock dividend), subject to such restrictions or limitations, if any, as may be set forth in the Charter or the Bylaws.

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**SECTION 7.3 FINANCINGS**. The Board shall have the power and authority to borrow or, in any other manner, raise money for the purposes and on the terms it determines, which terms may (i) include evidencing the same by issuance of Securities of the Company and (ii) have such provisions as the Board may determine (a) to reacquire such Securities; (b) to enter into other contracts or obligations on behalf of the Company; (c) to guarantee, indemnify or act as surety with respect to payment or performance of obligations of any Person and (d) to mortgage, pledge, assign, grant security interests in or otherwise encumber the Company's assets to secure any such Securities of the Company, contracts or obligations (including guarantees, indemnifications and suretyships); and to renew, modify, release, compromise, extend, consolidate or cancel, in whole or in part, any obligation to or of the Company or participate in any reorganization of obligors to the Company.

**SECTION 7.4 REIT QUALIFICATION**. If the Company elects to qualify for federal income tax treatment as a REIT, the Board shall use its reasonable best efforts to take such actions as are necessary or appropriate to preserve the status of the Company as a REIT; however, if the Board determines that it is no longer in the best interests of the Company to continue to be qualified as a REIT, the Board may revoke or otherwise

![image_3.jpg](image_3.jpg)

terminate the Company's REIT election pursuant to Section 856(g) of the Code. The Board also may determine that compliance with any restriction or limitation on stock ownership and transfers set forth in Section 5.7 of Article V is no longer required for REIT qualification.

**SECTION 7.5 DETERMINATIONS BY BOARD**. The determination as to any of the following matters, made in good faith by or pursuant to the direction of the Board consistent with the Charter, shall be final and conclusive and shall be binding upon the Company and every holder of Shares: the amount of the net income of the Company for any period and the amount of assets at any time legally available for the payment of dividends, redemption of Shares or the payment of other Distributions on Shares; the amount of paid-in surplus, net assets, other surplus, annual or other cash flow, funds from operations, net profit, net assets in excess of capital, undivided profits or excess of profits over losses on sales of assets; the amount, purpose, time of creation, increase or decrease, alteration or cancellation of any reserves or charges and the propriety thereof (whether or not any obligation or liability for which such reserves or charges shall have been created shall have been paid or discharged); any interpretation of the terms, preferences, conversion or other rights, voting powers or rights, restrictions, limitations as to dividends or other Distributions, qualifications or terms or conditions of redemption of any class or series of Shares; the fair value, or any sale, bid or asked price to be applied in determining the fair value, of any asset owned or held by the Company or any Shares; the number of Shares of any class of the Company; any matter relating to the acquisition, holding and disposition of any assets by the Company; or any other matter relating to the business and affairs of the Company or required or permitted by applicable law, the Charter or Bylaws or otherwise to be determined by the Board; *provided* , *however* , that any determination by the Board as to any of the preceding matters shall not render invalid or improper any action taken or omitted prior to such determination and no Director shall be liable for making or failing to make such a determination.

**ARTICLE VIII**

**EXTRAORDINARY ACTIONS**

Except as specifically provided in Section 6.2 of Article VI (relating to removal of Directors) and in the last sentence of Article X, notwithstanding any provision of law permitting or requiring any action to be taken or approved by the affirmative vote of the holders of Shares entitled to cast a greater number of votes, any such action shall be effective and valid if declared advisable by the Board and taken or approved by the affirmative vote of holders of Shares entitled to cast a majority of all the votes entitled to be cast on the matter.

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**ARTICLE IX**

**LIABILITY OF STOCKHOLDERS, DIRECTORS AND OFFICERS**

**SECTION 9.1 LIMITATION OF STOCKHOLDER LIABILITY**. No Stockholder shall be liable for any debt, claim, demand, judgment or obligation of any kind of, against or with respect to the Company by reason of his being a Stockholder, nor shall any Stockholder be subject to any personal liability whatsoever, in tort, contract or otherwise, to any Person in connection with the Company's assets or the affairs of the Company by reason of his being a Stockholder.

**SECTION 9.2 LIMITATION OF DIRECTOR AND OFFICER LIABILITY; INDEMNIFICATION**.

(a)To the maximum extent that Maryland law in effect from time to time permits limitation of the liability of directors and officers of a corporation, no present or former Director or officer of the Company shall be liable to the Company or its Stockholders for money damages. Neither the amendment nor repeal of this Section 9.2(a), nor the adoption or amendment of any other provision of the Charter or Bylaws inconsistent with this Section 9.2(a), shall apply to or affect in any respect the applicability of the preceding sentence with respect to any act or failure to act which occurred prior to such amendment, repeal or adoption.

![image_3.jpg](image_3.jpg)

(b)The Company shall have the power, to the maximum extent permitted by Maryland law in effect from time to time, to obligate itself to indemnify, and to pay or reimburse reasonable expenses in advance of final disposition of a proceeding to, (i) any individual who is a present or former Director or officer of the Company or (ii) any individual who, while a Director or officer of the Company and at the request of the Company, serves or has served as a director, officer, partner, member, manager or trustee of another corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or any other enterprise from and against any claim or liability to which such person may become subject or which such person may incur by reason of his or her service in such capacity. The Company shall have the power, with the approval of the Board, to provide such indemnification and advancement of expenses to a person who served a predecessor of the Company in any of the capacities described in (i) or (ii) above and to any employee or agent of the Company or a predecessor of the Company.

**SECTION 9.3 EXPRESS EXCULPATORY CLAUSES IN INSTRUMENTS**. Neither the Stockholders nor the Directors, officers, employees or agents of the Company shall be liable under any written instrument creating an obligation of the Company by reason of their being Stockholders, Directors, officers, employees or agents of the Company, and all Persons shall look solely to the Company's assets for the payment of any claim under or for the performance of that instrument. The omission of the foregoing exculpatory language from any instrument shall not affect the validity or enforceability of such instrument and shall not render any Stockholder, Director, officer, employee or agent liable thereunder to any third party, nor shall the Directors or any officer, employee or agent of the Company be liable to anyone as a result of such omission.

**ARTICLE X** 

**AMENDMENTS**

The Company reserves the right from time to time to make any amendment to its Charter, now or hereafter authorized by law, including any amendment altering the terms or contract rights, as expressly set forth in the Charter, of any outstanding Shares. All rights and powers conferred by the Charter on Stockholders,

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Directors and officers are granted subject to this reservation. Except as otherwise provided in the next sentence and except for those amendments permitted to be made without Stockholder approval under Maryland law or by specific provision in the Charter, any amendment to the Charter shall be valid only if declared advisable by the Board and approved by the affirmative vote of a majority of all the votes entitled to be cast on the matter. However, any amendment to the second sentence of Section 6.2 of Article VI or to this sentence of the Charter shall be valid only if declared advisable by the Board and approved by the affirmative vote of at least two-thirds of all the votes entitled to be cast on the matter.

**THIRD:** The restatement of the charter as hereinabove set forth has been duly approved by the Board of Directors of the Company.

**FOURTH:** The charter is not amended by these Articles of Restatement.

**FIFTH:** The current address of the principal office of the Company is as set forth in Article III of the foregoing restatement of the charter.

**SIXTH:** The name and address of the Company's current resident agent are as set forth in Article III of the foregoing restatement of the charter.

**SEVENTH:** The number of directors of the Company and the names of the Directors currently in office are as set forth in Section 6.1 of Article VI of the foregoing restatement of the charter.

**EIGHTH:** The Company, by resolution of its Board of Directors, previously elected, notwithstanding any provision in its charter or bylaws to the contrary, to be subject to Section 3-803 of the Maryland General Corporation Law (the "**MGCL**"), the repeal of which may be effected only by the means authorized by Section 3-802(b)(3) of the MGCL.

![image_3.jpg](image_3.jpg)

**NINTH:** The undersigned acknowledges these Articles of Restatement to be the corporate act of the Company and, as to all matters or facts required to be verified under oath, the undersigned acknowledges that, to the best of his or her knowledge, information and belief, these matters and facts are true in all material respects and that this statement is made under the penalties for perjury.

![image_3.jpg](image_3.jpg)

IN WITNESS WHEREOF, the Corporation has caused these Articles of Restatement to be signed in its name and on its behalf by its Chief Executive Officer and President and attested by its Chief Financial Officer, Treasurer and Secretary, on this 24th day of February, 2021.

ATTEST: GLOBAL NET LEASE, INC.

<u>/s/ Christopher J. Masterson</u>____________ By: <u>/s/ James L. Nelson</u>_______________ (SEAL)

Name: Christopher J. Masterson Name: James L. Nelson

Title: Chief Financial Officer, Treasurer Title: Chief Executive Officer and President

and Secretary

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![image_3.jpg](image_3.jpg)

**Exhibit A**

**7.25% SERIES A CUMULATIVE REDEEMABLE PREFERRED STOCK**

**(Liquidation Preference $25.00 per Share)**

**Under a power contained in Section 5.1 of Article V of the charter (the "Charter") of Global Net Lease, Inc., a Maryland corporation (the "Corporation"), the Board of Directors of the Corporation or a duly authorized committee thereof, by resolutions duly adopted, classified 9,959,650 authorized but unissued shares of preferred stock, par value $0.01 per share, of the Corporation as shares of a series of preferred stock, designated as 7.25% Series A Cumulative Redeemable Preferred Stock (the "Series A Preferred Stock") with the following preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms and conditions of redemption:**

Section 1.<u>Number of Shares and Designation</u>.

A series of preferred stock of the Corporation designated as the "7.25% Series A Cumulative Redeemable Preferred Stock" is hereby established, and the number of shares constituting such series shall be 9,959,650.

Section 2.<u>Definitions</u>.

"Aggregate Share Ownership Limit" shall have the meaning set forth in Article V of the Charter.

"Alternative Conversion Consideration" shall have the meaning set forth in Section 8(a) hereof.

"Alternative Form Consideration" shall have the meaning set forth in Section 8(a) hereof.

"Board of Directors" shall mean the Board of Directors of the Corporation or any committee authorized by such Board of Directors to perform any of its responsibilities with respect to the Series A Preferred Stock.

"Business Day" shall mean any day other than a Saturday, Sunday or a day on which state or federally chartered banking institutions in New York, New York are not required to be open.

"Capital Gains Amount" shall have the meaning set forth in Section 3(g) hereof.

"Change of Control" shall have the meaning set forth in Section 6(b) hereof.

"Change of Control Conversion Date" shall have the meaning set forth in Section 8(a) hereof.

"Change of Control Conversion Right" shall have the meaning set forth in Section 8(a) hereof.

"Change of Control Redemption Right" shall have the meaning set forth in Section 6(b) hereof.

"Charter" shall have the meaning set forth in the preamble to these Articles Supplementary.

"Code" shall mean the Internal Revenue Code of 1986, as amended.

"Commission" shall have the meaning set forth in Section 10 hereof.

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"Common Stock" shall mean the Corporation's common stock, par value $0.01 per share.

"Common Stock Conversion Consideration" shall have the meaning set forth in Section 8(a) hereof.

![image_3.jpg](image_3.jpg)

"Common Stock Price" shall have the meaning set forth in Section 8(a) hereof.

"Conversion Agent" shall have the meaning set forth in Section 8(d) hereof.

"Conversion Consideration" shall have the meaning set forth in Section 8(a) hereof.

"Corporation" shall have the meaning set forth in the preamble to these Articles Supplementary.

"Delisting Event" shall have the meaning set forth in Section 6(a) hereof.

"Delisting Event Conversion Date" shall have the meaning set forth in Section 8(a).

"Delisting Event Conversion Right" shall have the meaning set forth in Section 8(a) hereof.

"Delisting Event Redemption Right" shall have the meaning set forth in Section 6(a) hereof.

"DTC" shall have the meaning set forth in Section 8(f) hereof.

"Event" shall have the meaning set forth in Section 9(f)(ii) hereof.

"Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

"NASDAQ" shall mean the Nasdaq Stock Market or any successor that is a national securities exchange registered under Section 6 of the Exchange Act.

"NYSE" shall mean the New York Stock Exchange or any successor that is a national securities exchange registered under Section 6 of the Exchange Act.

"NYSE MKT" shall mean the NYSE MKT LLC Equities or any successor that is a national securities exchange registered under Section 6 of the Exchange Act.

"Optional Redemption Right" shall have the meaning set forth in Section 5(b) hereof.

"Original Issue Date" shall mean the first date on which shares of Series A Preferred Stock are issued and sold.

"Parity Preferred" shall have the meaning set forth in Section 9(b) hereof.

"Preferred Directors" shall have the meaning set forth in Section 9(b) hereof.

"Preferred Dividend Default" shall have the meaning set forth in Section 9(b) hereof.

"REIT" shall have the meaning set forth in Article IV of the Charter.

"Series A Dividend Period" shall mean the respective periods commencing on and including January 1, April 1, July 1 and October 1 of each year and ending on and including the day preceding the first day of the next

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succeeding Series A Dividend Period (other than the initial Series A Dividend Period, which shall commence on the Original Issue Date and end on and include September 30, 2017, and other than the Series A Dividend Period during which any shares of Series A Preferred Stock shall be redeemed pursuant to Section 5 or Section 6 (and that is not a Series A Dividend Period of the type contemplated by Section 7(b)), which, solely with respect to the shares of Series A Preferred Stock being redeemed, shall end on and include the day immediately preceding the redemption date with respect to such shares of Series A Preferred Stock being redeemed).

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"Series A Payment Date" shall mean, with respect to each Series A Dividend Period, the fifteenth (15th) day of the month following the month in which the Series A Dividend Period has ended (January, April, July and October of each year), commencing on October 15, 2017.

"Series A Preferred Stock" shall have the meaning set forth in the preamble to these Articles Supplementary.

"Series A Record Date" shall mean the close of business on the date set by the Board of Directors as the record date for the payment of dividends that is not more than 30 nor fewer than 10 days prior to the applicable Series A Payment Date.

"Shares" shall have the meaning set forth in Article V of the Charter.

"Share Cap" shall have the meaning set forth in Section 8(a) hereof.

"Special Optional Redemption Rights" shall have the meaning set forth in Section 6(b) hereof.

"Stock Split" shall have the meaning set forth in Section 8(a) hereof.

"Total Distributions" shall have the meaning set forth in Section 3(g) hereof.

Section 3.<u>Dividends and Distributions</u>.

(a)Subject to the preferential rights of the holders of any class or series of equity securities of the Corporation ranking senior to the Series A Preferred Stock with respect to dividend rights, the holders of the then outstanding Series A Preferred Stock shall be entitled to receive, when, as and if authorized by the Board of Directors and declared by the Corporation, out of funds legally available for the payment of dividends, cumulative cash dividends in the amount of $1.8125 per share each year, which is equivalent to the rate of 7.25% of the $25.00 liquidation preference per share per annum. Such dividends shall accrue and be cumulative from and including the Original Issue Date and shall be payable quarterly in arrears on each Series A Payment Date, commencing October 15, 2017, to all holders of record on the applicable Series A Record Date; <u>provided</u>, <u>however</u>, that if any Series A Payment Date is not a Business Day, the dividend which would otherwise have been payable on such Series A Payment Date may be paid or set apart for payment on the next succeeding Business Day with the same force and effect as if paid or set apart on such Series A Payment Date, and no interest or additional dividends or other sums shall accrue on the amount so payable from such Series A Payment Date to such next succeeding Business Day. Holders of record of all shares of Series A Preferred Stock outstanding on the applicable Series A Record Date will be entitled to receive the full quarterly dividend paid on the applicable Series A Payment Date even if such shares were not issued and outstanding for the full applicable Series A Dividend Period.

The initial dividend payable on the Series A Preferred Stock will cover the period from and including the Original Issue Date through September 30, 2017 and will be paid on October 15, 2017. The amount of any dividend payable on the Series A Preferred Stock for each full Series A Dividend Period shall be computed by dividing $1.8125 by four (4), regardless of the actual number of days in such full Series A Dividend Period. The amount of

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any dividend payable on the Series A Preferred Stock for any partial Series A Dividend Period and for the initial Series A Dividend Period shall be prorated and computed on the basis of a 360-day year consisting of twelve 30-day months. Dividends will be payable to holders of record as they appear in the stockholder records of the Corporation at the close of business on the applicable Series A Record Date. Notwithstanding any provision to the contrary contained herein, the dividend payable on each share of Series A Preferred Stock outstanding on a Series A Record Date shall equal the dividend payable on each other share of Series A Preferred Stock that is outstanding on such Series A Record Date, and no holder of any share of Series A Preferred Stock shall be entitled to receive any dividends paid or payable on the Series A Preferred Stock with a Series A Record Date before the date such share of Series A Preferred Stock is issued.

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(b)No dividends on the Series A Preferred Stock shall be authorized by the Board of Directors or paid or declared and set apart for payment by the Corporation at such time as the terms and conditions of any agreement of the Corporation, including any agreement relating to its indebtedness, prohibit such authorization, payment or setting apart for payment or provide that such authorization, payment or setting apart for payment would constitute a breach thereof, or a default thereunder, or if such authorization, payment or setting apart for payment shall be restricted or prohibited by law.

(c)Notwithstanding anything contained herein to the contrary, dividends on the Series A Preferred Stock shall accrue with respect to any Series A Dividend Periods whether or not dividends are authorized by the Board of Directors and declared by the Corporation. No interest or additional dividend shall be payable in respect of any accrued and unpaid dividend on the Series A Preferred Stock.

(d)Except as provided in Section 3(e) below, no dividends shall be declared and paid or set apart for payment and no other distribution of cash or other property may be declared and made, directly or indirectly, on or with respect to shares of Common Stock or shares of any other class or series of equity securities of the Corporation ranking, with respect to dividend rights and rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding-up, on parity with or junior to the Series A Preferred Stock (other than a dividend paid in shares of Common Stock or in shares of any other class or series of equity securities ranking junior to the Series A Preferred Stock with respect to dividend rights and rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding-up), nor shall any shares of Common Stock or shares of any other class or series of equity securities of the Corporation ranking, with respect to dividend rights and rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding-up, on parity with or junior to the Series A Preferred Stock be redeemed (or any monies be paid to or made available for a sinking fund for the redemption of any such shares), purchased or otherwise acquired, (except (i) by conversion into or exchange for shares of Common Stock or shares of any other class or series of equity securities of the Corporation ranking junior to the Series A Preferred Stock with respect to dividend rights and rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding-up, (ii) for the acquisition of shares made pursuant to the provisions of Section 5.7 of Article V of the Charter, and (iii) for the purchase or acquisition of equity securities of the Corporation ranking on parity with the Series A Preferred Stock with respect to dividend rights and rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding-up, pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding Series A Preferred Stock and any other shares of any other class or series of equity securities ranking on parity with the Series A Preferred Stock with respect to dividend rights and rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding-up), unless full cumulative dividends on the Series A Preferred Stock for all past Series A Dividend Periods shall have been or contemporaneously are declared and paid or declared and a sum sufficient for the payment thereof is set apart for such payment.

(e)When dividends are not paid in full (or declared and a sum sufficient for such full payment is not so set apart) upon the Series A Preferred Stock and any other class or series of equity securities ranking, with respect to dividend rights, on parity with the Series A Preferred Stock, all dividends (other than any acquisition of shares pursuant to the provisions of Section 5.7 of Article V of the Charter or a purchase or exchange offer made on the

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same terms to holders of all outstanding shares of Series A Preferred Stock and any such other class or series of equity securities ranking on parity with the Series A Preferred Stock with respect to dividend rights or rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding-up), declared upon the Series A Preferred Stock and any other class or series of equity securities ranking, with respect to dividend rights, on parity with the Series A Preferred Stock shall be allocated pro rata so that the amount declared per share of Series A Preferred Stock and such other equally ranked classes or series of equity securities shall in all cases bear to each other the same ratio that accrued dividends per share on the Series A Preferred Stock and such other equally ranked class or series of equity securities (which shall not include any accrual in respect of unpaid dividends on such other classes or series of equity securities for prior Series A Dividend Periods if such other class or series of equity securities does not have a cumulative dividend) bear to each other. No interest, or sum of money in lieu of interest, shall be payable in respect of any dividend payment or payments on the Series A Preferred Stock which may be in arrears.

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(f)Holders of the Series A Preferred Stock shall not be entitled to any dividend, whether payable in cash, property or Stock, in excess of full cumulative dividends on the Series A Preferred Stock as provided herein. Any dividend payment made on the Series A Preferred Stock shall first be credited against the earliest accrued and unpaid dividend.

(g)If, for any taxable year, the Corporation elects to designate as "capital gain dividends" (as defined in Section 857 of the Code or any successor revenue code or section) any portion (the "Capital Gains Amount") of the total distributions not in excess of the Corporation's earnings and profits (as determined for United States federal income tax purposes) paid or made available for such taxable year to holders of all classes and series of Stock (the "Total Distributions"), then the portion of the Capital Gains Amount that shall be allocable to holders of Series A Preferred Stock shall be in the same proportion that the Total Distributions paid or made available to the holders of Series A Preferred Stock for such taxable year bears to the Total Distributions for such taxable year made with respect to all classes or series of Stock outstanding.

Section 4.<u>Liquidation Preference</u>.

Upon any voluntary or involuntary liquidation, dissolution or winding-up of the affairs of the Corporation, before any distribution or payment shall be made to holders of Common Stock or any other class or series of equity securities of the Corporation ranking, with respect to rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding-up, junior to the Series A Preferred Stock, the holders of shares of Series A Preferred Stock then outstanding shall be entitled to be paid out of the assets of the Corporation legally available for distribution to its stockholders a liquidation preference of $25.00 per share, plus an amount equal to any accrued and unpaid dividends to, but not including, the date of payment (whether or not declared). If, upon any such voluntary or involuntary liquidation, dissolution or winding-up, the available assets of the Corporation are insufficient to pay the amount of the distributions payable upon liquidation, dissolution or winding-up of the affairs of the Corporation, on all outstanding shares of Series A Preferred Stock and the corresponding amounts payable on all shares of other classes or series of securities of the Corporation ranking, with respect to rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding-up, on parity with the Series A Preferred Stock, the holders of Series A Preferred Stock and each such other class or series of securities ranking, with respect to rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding-up, on parity with the Series A Preferred Stock shall share ratably in any such distribution of assets in proportion to the full liquidating distributions to which they would otherwise be respectively entitled. Written notice of any such voluntary or involuntary liquidation, dissolution or winding up, stating the payment date or dates when, and the place or places where, the amounts distributable in such circumstances shall be payable, shall be given by first-class mail, postage pre-paid, at least 20 days prior to the payment date stated therein, to each record holder of Series A Preferred Stock at the respective addresses of such holders as the same shall appear on the stock transfer records of the Corporation. After the holders of Series A Preferred Stock have received the full amount of the liquidating distributions to which they are entitled,

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they will have no right or claim to any of the remaining assets of the Corporation. The consolidation, conversion or merger of the Corporation with or into any other person, corporation, trust or entity, or the sale, lease, transfer or conveyance of all or substantially all of the property or business of the Corporation (whether in connection with a Change of Control or otherwise), shall not be deemed to constitute a liquidation, dissolution or winding-up of the affairs of the Corporation.

In determining whether any distribution (other than upon voluntary or involuntary dissolution) by dividend, redemption or other acquisition of Shares or otherwise is permitted under the Maryland General Corporation Law, amounts that would be needed, if the Corporation were to be dissolved at the time of the distribution, to satisfy the preferential rights upon dissolution of the holders of Series A Preferred Stock will not be added to the Corporation's total liabilities.

Section 5.<u>Optional Redemption</u>.

(a)The Series A Preferred Stock shall not be redeemable prior to September 12, 2022, except as provided in Section 5(c), Section 5.7 of Article V of the Charter or Section 6 hereof.

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(b)On and after September 12, 2022, the Corporation, at its option, upon not fewer than 30 nor more than 60 days' written notice as provided in Section 5(e) hereof, may redeem the Series A Preferred Stock, in whole or in part, at any time or from time to time, at a redemption price of $25.00 per share, plus (subject to Section 7(b) hereof) an amount equal to all dividends accrued and unpaid (whether or not declared) thereon to, but not including, the date fixed for redemption, without interest (the "Optional Redemption Right"). If less than all of the outstanding shares of Series A Preferred Stock are to be redeemed, the shares of Series A Preferred Stock to be redeemed shall be redeemed *pro rata* (as nearly as may be practicable without creating fractional shares) or by lot. If such redemption is to be by lot, and if, as a result of such redemption, any holder of Series A Preferred Stock would own shares of Series A Preferred Stock in excess of the Aggregate Share Ownership Limit or in violation of any of the other restrictions on ownership and transfer of Shares set forth in Section 5.7 of Article V of the Charter, then, except as otherwise provided in the Charter, the Corporation will redeem the requisite number of shares of Series A Preferred Stock of such holder such that no holder will violate the Aggregate Share Ownership Limit or any other restrictions on ownership and transfer of Shares set forth in Section 5.7 of Article V of the Charter subsequent to such redemption.

(c)The Corporation may redeem all or a part of the Series A Preferred Stock in accordance with the terms and conditions set forth in this Section 5 of these Articles Supplementary at any time and from time to time, whether before or after September 12, 2022, if the Board of Directors determines that such redemption is reasonably necessary to for the Corporation to preserve the status of the Corporation as a qualified REIT. If the Corporation calls for redemption any Series A Preferred Stock pursuant to and in accordance with this Section 5(c), then the redemption price for such shares will be an amount in cash equal to $25.00 per share, plus (subject to Section 7(b) hereof) all dividends accrued and unpaid (whether or not declared) thereon to and including the date fixed for redemption, without interest.

(d)Unless full cumulative dividends on all shares of Series A Preferred Stock shall have been or contemporaneously are declared and paid or declared and a sum sufficient for the payment thereof in cash set apart for payment for all past Series A Dividend Periods, no shares of Series A Preferred Stock shall be redeemed pursuant to this Section 5 unless all outstanding shares of Series A Preferred Stock are simultaneously redeemed and the Corporation shall not purchase or otherwise acquire directly or indirectly any Series A Preferred Stock (except by exchange for equity securities of the Corporation ranking junior to the Series A Preferred Stock with respect to dividend rights and rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding-up); <u>provided</u>, <u>however</u>, that the foregoing shall not prevent the purchase of the Series A Preferred Stock or any other class or series of equity securities of the Corporation by the Corporation in accordance with the terms of Section 5(c)

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hereof or Section 5.7 of Article V of the Charter or the purchase or acquisition of the Series A Preferred Stock pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding Series A Preferred Stock and the holders of all outstanding shares of any other class or series of preferred stock of the Corporation ranking on a party with the Series A Preferred Stock with respect to dividend rights and rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding up.

(e)Notice of redemption pursuant to this Section 5 shall be mailed by the Corporation, postage prepaid, as of a date set by the Corporation not fewer than 30 nor more than 60 days prior to such redemption date, addressed to the respective holders of record of such shares of Series A Preferred Stock to be redeemed at their respective addresses as they appear on the stock transfer records of the Corporation. Failure to give such notice or any defect thereto or in the mailing thereof shall not affect the sufficiency of notice or validity of the proceedings for such redemption of any shares of Series A Preferred Stock except as to shares held by a holder to whom notice was defective or not given. A redemption notice which has been mailed in the manner provided herein shall be conclusively presumed to have been duly given on the date mailed whether or not such holder received the redemption notice. In addition to any information required by law or the applicable rules of any exchange upon which Series A Preferred Stock may be listed or admitted to trading, each notice shall state (i) such redemption date; (ii) the redemption price; (iii) the total number of shares of Series A Preferred Stock to be redeemed (and, if less than all the shares held by any holder are to be redeemed, the number of shares to be redeemed from such holder); (iv) the place or places where such shares of Series A Preferred Stock are to be surrendered for payment, together with the certificates, if any, representing such shares (duly endorsed for transfer) and any other documents the

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Corporation requires in connection with such redemption; and (v) that dividends on the Series A Preferred Stock to be redeemed shall cease to accrue on such redemption rate.

Section 6.<u>Special Optional Redemption by the Corporation</u>.

(a)During any period of time (whether before or after September 12, 2022) that both (i) the Series A Preferred Stock is not listed on the NYSE, NYSE MKT or the NASDAQ and (ii) the Corporation is not subject to the reporting requirements of the Exchange Act, but any shares of Series A Preferred Stock are outstanding (the occurrence of clauses (i) and (ii) is referred to as a "Delisting Event"), the Corporation will have the option, upon not fewer than 30 nor more than 60 days' written notice as provided in Section 6(d) hereof, to redeem the outstanding shares of Series A Preferred Stock, in whole but not in part, within 90 days after the occurrence of the Delisting Event, for a redemption price of $25.00 per share, plus (subject to Section 7(b) hereof) an amount equal to all dividends accrued and unpaid (whether or not declared), if any, to, but not including, the redemption date (a "Delisting Event Redemption Right").

(b)In addition, upon the occurrence of a Change of Control, the Corporation will have the option, upon not fewer than 30 nor more than 60 days' written notice as provided in Section 6(d) hereof, to redeem shares of Series A Preferred Stock, in whole but not in part, within 120 days after the first date on which such Change of Control occurred, for cash at $25.00 per share plus (subject to Section 7(b) hereof) an amount equal to dividends accrued and unpaid (whether or not declared), if any, on the Series A Preferred Stock to, but not including, the redemption date ("Change of Control Redemption Right" and, together with the Delisting Event Redemption Right, the "Special Optional Redemption Rights").

A "Change of Control" occurs when, after the Original Issue Date, the following have occurred and are continuing:

(i)the acquisition by any person, including any syndicate or group deemed to be a "person" under Section 13(d)(3) of the Exchange Act of beneficial ownership, directly or indirectly, through a purchase, merger, conversion or other acquisition transaction or series of purchases, mergers, conversions or other acquisition

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transactions of shares of stock of the Corporation entitling that person to exercise more than 50% of the total voting power of all outstanding shares of stock of the Corporation entitled to vote generally in the election of directors (except that such person will be deemed to have beneficial ownership of all securities that such person has the right to acquire, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition); and

(ii)following the closing of any transaction referred to in (i) above, neither the Corporation nor the acquiring or surviving entity has a class of common equity securities listed on the NYSE, the NYSE MKT or the NASDAQ.

(c)Notwithstanding the foregoing, the Corporation shall not have the right to redeem shares of Series A Preferred Stock upon any Delisting Event occurring in connection with a transaction set forth in clause (i) of the definition of Change of Control unless such Delisting Event also constitutes a Change of Control.

(d)Notice of redemption pursuant to this Section 6 shall be mailed by the Corporation, postage prepaid, as of a date set by the Corporation not fewer than 30 nor more than 60 days prior to such redemption date, addressed to the holders of record of the Series A Preferred Stock at their respective addresses as they appear on the stock transfer records of the Corporation. Failure to give such notice or any defect thereto or in the mailing thereof shall not affect the sufficiency of notice or validity of the proceedings for such redemption of any shares of Series A Preferred Stock except as to a holder to whom notice was defective or not given. A redemption notice which has been mailed in the manner provided herein shall be conclusively presumed to have been duly given on the date mailed whether or not such holder received such redemption notice. In addition to any information required by law or the applicable rules of any exchange upon which Series A Preferred Stock may be listed or admitted to trading, each notice shall state (i) the redemption date; (ii) the redemption price; (iii) the total number of shares of Series A Preferred Stock to be redeemed; (iv) the place or places where such shares of Series A Preferred Stock are to be

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surrendered for payment, together with the certificates, if any, representing such shares (duly endorsed for transfer) and any other documents the Corporation requires in connection with such redemption; (v) that the Series A Preferred Stock is being redeemed pursuant to the Delisting Event Redemption Right or the Change of Control Redemption Right, as applicable, in connection with the occurrence of a Delisting Event or a Change of Control, as applicable, and a brief description of the transaction or transactions constituting such Delisting Event or Change of Control, as applicable; (vi) that holders of Series A Preferred Stock will not be able to tender shares of Series A Preferred Stock for conversion in connection with the Delisting Event or Change of Control, as applicable, and each share of Series A Preferred Stock tendered for conversion that is selected, prior to the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, for redemption will be redeemed on the related redemption date instead of converted on the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable; and (vii) that dividends on the shares of Series A Preferred Stock to be redeemed will cease to accrue on such redemption date.

Section 7.<u>Additional Provisions Relating to Optional Redemption and Special Optional Redemption by the Corporation</u>.

(a)If (i) notice of redemption of any shares of Series A Preferred Stock has been given, (ii) the funds necessary for such redemption have been set apart by the Corporation in trust for the benefit of the holders of any Series A Preferred Stock so called for redemption and (iii) irrevocable instructions have been given to pay the redemption price of $25.00 per share, plus (subject to Section 7(b) hereof) an amount equal to all dividends accrued and unpaid (whether or not declared) to, but not including, the applicable redemption date, then from and after such redemption date, dividends shall cease to accrue on such shares of Series A Preferred Stock, such shares of Series A Preferred Stock shall no longer be outstanding, such shares of Series A Preferred Stock shall not be transferred except with the consent of the Corporation and all other rights of the holders of such shares will terminate, except

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the right to receive the redemption price of $25.00 per share, plus (subject to Section 7(b) hereof) an amount equal to any dividends accrued and unpaid (whether or not declared) payable upon such redemption, without interest.

(b)If a redemption date falls after a Series A Record Date and on or prior to the corresponding Series A Payment Date, each holder of shares of Series A Preferred Stock on the Series A Record Date shall be entitled to the dividend payable on such shares on the corresponding Series A Payment Date, notwithstanding such redemption of such shares on or prior to the Series A Payment Date, and each holder of shares of Series A Preferred Stock that are redeemed on such redemption date will be entitled to the dividends, if any, accruing after the end of the Series A Dividend Period to which the Series A Payment Date relates to, but not including, such redemption date.

(c)For purposes of clause (a)(ii) above, funds shall be deposited in trust with a bank or trust corporation and such deposit shall be irrevocable except that any balance of monies so deposited by the Corporation and unclaimed by the holders of Series A Preferred Stock entitled thereto at the expiration of two (2) years from the applicable redemption dates shall be repaid, together with any interest or other earnings thereon, to the Corporation, and after any such repayment, the holders of the shares entitled to the funds so repaid to the Corporation shall look only to the Corporation for payment without interest or other earnings.

Section 8.<u>Conversion Rights</u>.

(a)Subject to Section 8(j), upon the occurrence of a Delisting Event or a Change of Control, as applicable, each holder of shares of Series A Preferred Stock shall have the right, unless, prior to the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, the Corporation has provided or provides notice of its election to redeem such shares of Series A Preferred Stock pursuant to the Optional Redemption Right or Special Optional Redemption Rights, to convert some or all of such shares of Series A Preferred Stock held by such holder (with respect to a Delisting Event, the "Delisting Event Conversion Right" and, with respect to a Change of Control, the "Change of Control Conversion Right") on the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, into a number of shares Common Stock per share of Series A Preferred Stock to be converted (the "Common Stock Conversion Consideration") equal to the lesser of (A) the quotient of (i) the sum of $25.00 plus an amount equal to all dividends accrued and unpaid (whether or not declared) on the Series A Preferred Stock to, but not including, the Delisting Event Conversion Date or the Change of Control Conversion

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Date, as applicable, (unless such Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, is after a Series A Record Date and prior to the corresponding Series A Payment Date, in which case no additional amount for accrued and unpaid dividends that have been declared and are to be paid on the Series A Payment Date will be included in such sum), divided by (ii) the Common Stock Price (as defined herein) and (B) 2.301 (as adjusted pursuant to the immediately succeeding paragraph, the "Share Cap").

The Share Cap is subject to *pro rata* adjustments for any stock splits (including those effected pursuant to a Common Stock dividend), subdivisions or combinations (in each case, a "Stock Split") with respect to the Common Stock as follows: the adjusted Share Cap as the result of a Stock Split shall be the number of shares of Common Stock that is equivalent to the product of (i) the Share Cap in effect immediately prior to the Stock Split, multiplied by (ii) a fraction, the numerator of which is the number of shares of Common Stock outstanding after giving effect to the Stock Split and the denominator of which is the number of shares of Common Stock outstanding immediately prior to such Stock Split.

In the case of a Delisting Event or a Change of Control, as applicable, pursuant to, or in connection with, which shares of Common Stock shall be converted into cash, securities or other property or assets (including any combination thereof) (the "Alternative Form Consideration"), a holder of shares of Series A Preferred Stock shall receive upon conversion of such shares of Series A Preferred Stock (subject to the next-following paragraph) the kind and amount of Alternative Form Consideration which such holder would have owned or been entitled to

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receive had such holder held a number of shares of Common Stock equal to the Common Stock Conversion Consideration immediately prior to the effective time of the Delisting Event or Change of Control, as applicable (the "Alternative Conversion Consideration" and, together with the Common Stock Conversion Consideration, the "Conversion Consideration").

In the event that holders of Common Stock have the opportunity to elect the form of consideration to be received in connection with the Delisting Event or Change of Control, as applicable, the consideration that holders of Series A Preferred Stock shall receive shall be the form of consideration elected by the holders of a plurality of the shares of Common Stock held by stockholders who participate in the election and shall be subject to any limitations to which all holders of Common Stock are subject, including, without limitation, pro rata reductions applicable to any portion of the consideration payable in connection with the Delisting Event or Change of Control, as applicable.

The "Change of Control Conversion Date" with respect to any Change of Control shall be a Business Day fixed by the Board of Directors that is not fewer than 20 days and not more than 35 days after the date on which the Corporation provides notice of the Change of Control pursuant to Section 8(d). The "Delisting Event Conversion Date" with respect to any Delisting Event shall be a Business Day fixed by the Board of Directors that is not fewer than 20 days and not more than 35 days after the date on which the Corporation provides notice of such Delisting Event pursuant to Section 8(d).

The "Common Stock Price" for any Change of Control shall be (i) the amount of cash consideration per share of Common Stock, if the consideration to be received in such Change of Control by holders of Common Stock is solely cash, or (ii) the average of the closing prices per share of Common Stock on the NYSE, NYSE MKT or the NASDAQ (or any other national securities exchange on which Common Stock is then listed) for the ten consecutive trading days immediately preceding, but not including, the effective date of such Change of Control, if the consideration to be received in the Change of Control by holders of Common Stock is other than solely cash. The "Common Stock Price" for any Delisting Event shall be the average of the closing prices per share of Common Stock on the NYSE, NYSE MKT or the NASDAQ (or any other national securities exchange on which Common Stock is then listed) for the ten consecutive trading days immediately preceding, but not including, the effective date of the Delisting Event.

(b)No fractional shares of Common Stock shall be issued upon the conversion of the Series A Preferred Stock. In lieu of fractional shares, holders shall be entitled to receive the cash value of the fractional shares based on the Common Stock Price.

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(c)If a Change of Control Conversion Date or a Delisting Event Conversion Date (either, a "Conversion Date") falls after a Series A Record Date and on or prior to the corresponding Series A Payment Date, each holder of shares of Series A Preferred Stock at the close of business on the Series A Record Date shall be entitled to the dividend payable on such shares on the corresponding Series A Payment Date, notwithstanding the conversion of such shares on or prior to the Series A Payment Date, and each holder of shares of Series A Preferred Stock that are converted on the Conversion Date will be entitled to the dividends, if any, accruing after the end of the Series A Dividend Period to which the Series A Payment Date relates to, but not including, the Conversion Date.

(d)Within 15 days following the occurrence of a Delisting Event or a Change of Control, as applicable, unless the Corporation has provided notice of its election to redeem the Series A Preferred Stock pursuant to the Delisting Event Redemption Right or the Change of Control Redemption Right, as applicable, a notice of occurrence of the Delisting Event or the Change of Control, as applicable, describing the resulting Delisting Event Conversion Right or Change of Control Conversion Right, as applicable, shall be delivered to the holders of record of the outstanding shares of Series A Preferred Stock at their addresses as they appear on the Corporation's stock transfer records. No failure to give the notice or any defect thereto or in the mailing thereof shall affect the validity of the

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proceedings for the conversion of any share of Series A Preferred Stock except as to the holder to whom notice was defective or not given. Each notice shall state: (i) the events constituting the Delisting Event or the Change of Control, as applicable; (ii) the date of the Delisting Event or the Change of Control, as applicable; (iii) the last date on which the holders of Series A Preferred Stock may exercise their Delisting Event Conversion Right or Change of Control Conversion Right, as applicable; (iv) the method and period for calculating the Common Stock Price; (v) the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable; (vi) that if, prior to the applicable Conversion Date, the Corporation provides notice of its election to redeem all or any portion of the Series A Preferred Stock, the holders of Series A Preferred Stock will not be able to convert such shares of Series A Preferred Stock called for redemption and such shares of Series A Preferred Stock shall be redeemed on the related redemption date, even if they have already been tendered for conversion pursuant to the Delisting Event Conversion Right or the Change of Control Conversion Right, as applicable; (vii) if applicable, the type and amount of Alternative Conversion Consideration entitled to be received per share of Series A Preferred Stock; (viii) the name and address of the paying agent and the conversion agent (the "Conversion Agent"); and (ix) the procedures that holders of Series A Preferred Stock must follow to exercise the Delisting Event Conversion Right or the Change of Control Conversion Right, as applicable.

(e)The Corporation shall issue a press release for publication on the Dow Jones & Company, Inc., Business Wire, PR Newswire or Bloomberg Business News (or, if such organizations are not in existence at the time of issuance of such press release, another news or press organization as is reasonably calculated to broadly disseminate the relevant information to the public) containing the information stated in the notice, and post the notice on the Corporation's website, in any event prior to the opening of business on the first Business Day following any date on which the Corporation provides notice pursuant to Section 8(d) above to the holders of record of the Series A Preferred Stock.

(f)In order to exercise the Delisting Event Conversion Right or the Change of Control Conversion Right, as applicable, a holder of record of shares of Series A Preferred Stock shall be required to deliver, on or before the close of business on the applicable Conversion Date, the certificates, if any, representing any certificated shares of Series A Preferred Stock to be converted, duly endorsed for transfer, together with a completed written conversion notice and any other documents the Corporation reasonably requires in connection with the conversion, to the Conversion Agent. Such notice shall state: (i) the relevant Delisting Event Conversion Date or Change of Control Conversion Date, as applicable; and (ii) the number of shares of Series A Preferred Stock to be converted. Notwithstanding the foregoing, if such shares of Series A Preferred Stock are held in global form, such notice shall instead comply with applicable procedures of The Depository Trust Company ("DTC").

(g)Holders of the Series A Preferred Stock may withdraw any notice of exercise of a Delisting Event Conversion Right or a Change of Control Conversion Right, as applicable, (in whole or in part) by a written notice of withdrawal delivered to the Conversion Agent prior to the close of business on the Business Day prior to the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable. The notice of withdrawal must state: (i) the number of withdrawn shares of Series A Preferred Stock; (ii) if certificated shares of Series A

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Preferred Stock have been tendered for conversion and withdrawn, the certificate numbers of the withdrawn certificated shares of Series A Preferred Stock; and (iii) the number of shares of Series A Preferred Stock, if any, which remain subject to the conversion notice. Notwithstanding the foregoing, if such shares of Series A Preferred Stock are held in global form, the notice of withdrawal shall instead comply with applicable procedures of DTC.

(h)Shares of Series A Preferred Stock as to which the Delisting Event Conversion Right or the Change of Control Conversion Right, as applicable, has been properly exercised and for which the conversion notice has not been properly withdrawn shall be converted into the applicable Conversion Consideration on the applicable Delisting Event Conversion Date or Change of Control Conversion Date unless, prior thereto, the Corporation

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provides notice of its election to redeem such shares of Series A Preferred Stock, whether pursuant to its Optional Redemption Right or Special Optional Redemption Rights.

(i)The Corporation shall deliver the applicable Conversion Consideration no later than the third Business Day following the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable.

(j)Notwithstanding anything to the contrary in this Section 8, no holder of Series A Preferred Stock will be entitled to exercise a Delisting Event Conversion Right or a Change of Control Conversion Right or convert any shares of Series A Preferred Stock into shares of Common Stock to the extent that receipt of shares of Common Stock upon the conversion of such shares of Series A Preferred Stock in accordance with this Section 8 would cause such person or any other person to violate Section 5.7 of Article V of the Charter.

(k)In connection with the exercise of any Delisting Event Conversion Right or Change of Control Conversion Right, as applicable, the Corporation shall comply with all U.S. federal and state securities laws and stock exchange rules in connection with any conversion of shares of Series A Preferred Stock into Conversion Consideration.

Section 9.<u>Voting Rights</u>.

(a)Holders of the Series A Preferred Stock shall not have any voting rights except as set forth in this Section 9.

(b)Whenever dividends on any outstanding shares of Series A Preferred Stock shall have not been paid for six or more Series A Dividend Periods (whether or not such dividends have been declared or the Series A Dividend Periods are consecutive) (a "Preferred Dividend Default"), the holders of Series A Preferred Stock (and all other classes and series of preferred stock of the Corporation ranking on parity with the Series A Preferred Stock with respect to dividend rights and rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding up and upon which like voting rights have been conferred and are exercisable and with which such holders of Series A Preferred Stock are entitled to vote together as a single class (the "Parity Preferred"), voting together as a single class) will have the exclusive power to elect two additional directors (the "Preferred Directors"), at each annual meeting of the Corporation's stockholders and at any special meeting of the Corporation's stockholders called for the purpose of electing Preferred Directors (pursuant to Section 9(d) hereof or otherwise), until all dividends accrued and unpaid on outstanding shares of Series A Preferred Stock for all past Series A Dividend Periods and the then-current Series A Dividend Period have been fully paid. Unless the number of the Corporation's directors has previously been increased pursuant to the terms of any other class or series of Parity Preferred with which such holders of Series A Preferred Stock are entitled to vote together as a single class in the election of Preferred Directors, the number of the Corporation's directors shall automatically increase by two at such time as holders of Series A Preferred Stock become entitled to vote in the election of the Preferred Directors. Unless shares of Parity Preferred remain outstanding and entitled to vote in the election of Preferred Directors, the term of office of each Preferred Director will terminate, and the number of the Corporation's directors shall automatically decrease by two, when all accrued and unpaid dividends for all past Series A Dividend Periods and the then-current Series A Dividend Period have been fully paid. If the right of holders of Series A Preferred Stock to elect the Preferred Directors terminates after the record date for determining holders of shares of Series A Preferred Stock entitled to vote in any election of Preferred Directors but before the closing of the polls in such election, holders of shares of

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Series A Preferred Stock outstanding as of the applicable record date shall not be entitled to vote in the election of any Preferred Directors. The right of holders of Series A Preferred Stock to elect the Preferred Directors shall again vest if and whenever dividends are in arrears for six Series A Dividend Periods, as described above. In no event shall holders of Series A Preferred Stock be entitled to nominate or elect an individual as a Preferred Director, and no individual shall be qualified to be nominated for election or to serve as a Preferred Director, if the individual's

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service as a Preferred Director would cause the Corporation to fail to satisfy a requirement relating to director independence of any national securities exchange on which any class or series of Stock is listed or otherwise conflict with the Corporation's Charter or Bylaws.

(c)The Preferred Directors shall be elected by a plurality of the votes cast in the election of such directors, and each Preferred Director will serve until the next annual meeting of the Corporation's stockholders and until his or her successor is duly elected and qualifies, or until such director's term of office terminates as set forth in Section 9(b). Any director elected by holders of Series A Preferred Stock and any Parity Preferred may be removed, with or without cause, only by a vote of holders of a majority of the outstanding shares of Series A Preferred Stock and Parity Preferred with which holders of Series A Preferred Stock are entitled to vote together as a single class in the election of Preferred Directors. At any time that holders of Series A Preferred Stock are entitled to vote in the election of the Preferred Directors, such holders shall be entitled to vote in the election of a successor to fill any vacancy on the Board of Directors that results from the removal of a Preferred Director.

(d)At any time that holders of the Series A Preferred Stock have the right to elect Preferred Directors as described in Section 9(b) hereof but these directors have not been elected, the Corporation's secretary must call a special meeting of stockholders for the purpose of electing the Preferred Directors upon the written request of the holders of record of 10% of the outstanding shares of Series A Preferred Stock and Parity Preferred with which holders of Series A Preferred Stock are entitled to vote together as a single class with respect to the election of Preferred Directors, unless the request is received more than 45 days and less than 90 days before the date fixed for the next annual meeting of the Corporation's stockholders at which such vote would otherwise occur, in which case, the Preferred Directors may be elected at either such annual meeting or at a separate special meeting of the Corporation's stockholders at the Corporation's discretion.

(e)So long as any shares of Series A Preferred Stock are outstanding, the approval of holders of at least two-thirds of the outstanding shares of Series A Preferred Stock and any equally-affected class or series of Parity Preferred with which holders of Series A Preferred Stock are entitled to vote together as a single class shall be required to authorize (i) any amendment, alteration, repeal or other change to any provision of the Charter, including these Articles Supplementary (whether by merger, conversion, consolidation, transfer or conveyance of all or substantially all of the Corporation's assets or otherwise) that would materially and adversely affect the rights, preferences, privileges or voting powers of the Series A Preferred Stock or (ii) the creation, issuance or increase in the authorized number of shares of any class or series of stock ranking senior to the Series A Preferred Stock (or any equity securities convertible into or exchangeable for any such shares, but not including debt securities convertible into or exchangeable for any such shares prior to the time of conversion) with respect to dividend rights and rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding up.

(f)The following actions shall not be deemed to materially and adversely affect the rights, preferences, privileges or voting powers of the Series A Preferred Stock:

(i)any increase or decrease in the number of authorized Shares of any class or series or the classification or reclassification of any unissued Shares, or the creation or issuance of equity securities, of any class or series ranking, junior or on parity with the Series A Preferred Stock with respect to dividend rights and rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding up, <u>provided</u> that such action does not decrease the number of authorized shares of Common Stock below the number (after giving effect to all other outstanding shares capital stock) necessary to permit the Series A Preferred Stock to be converted in full in accordance with the terms hereof; or

(ii)an amendment, alteration, or repeal or other change to any provisions of the Charter, including these Articles Supplementary, as a result of a merger, conversion, consolidation, transfer or conveyance of all or

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substantially all of the Corporation's assets or other business combination (an "Event"), (x) if the Series A Preferred Stock (or securities of any successor person or entity to the Corporation into which the Series A Preferred Stock has been converted) remains outstanding with the terms thereof unchanged in all material respects or the holders of shares of Series A Preferred Stock receive securities of a successor person or entity with substantially identical rights as those of Series A Preferred Stock, taking into account that, upon the occurrence of an Event, the Corporation may not be the surviving entity, or (y) if holders of Series A Preferred Stock shall receive the $25.00 liquidation preference per share of Series A Preferred Stock, plus an amount equal to all accrued and unpaid dividends to, but not including, the date of such Event (other than any declared dividends having a Series A Record Date before the date of such Event and a Series A Payment Date after the date of such Event, which shall be paid as provided in Section 3 above), pursuant to the occurrence of any Event.

(g)Notwithstanding the foregoing, holders of any Parity Preferred shall not be entitled to vote together as a single class with holders of Series A Preferred Stock on any amendment, alteration, repeal or other change to any provision of the Charter, including these Articles Supplementary, unless such action affects holders of Series A Preferred Stock and such Parity Preferred equally. On any matter in which the Series A Preferred Stock may vote, each share of Series A Preferred Stock shall entitle the holder thereof to cast one vote, except that, in class votes, or in determining the percentage of outstanding shares, when voting together as a single class, with shares of one or more class or series of Parity Preferred, shares of different classes and series shall vote, or such determination shall be made, in proportion to the liquidation preference of such shares.

(h)The foregoing voting provisions of this Section 9 shall not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required shall be effected, all outstanding shares of Series A Preferred Stock shall have been redeemed or called for redemption upon proper notice and sufficient funds, in cash, shall have been deposited in trust to effect such redemption, in each case, in accordance with the provisions hereof.

(i)Except as expressly stated herein, the Series A Preferred Stock shall not have any relative, participating, optional or other special voting rights and powers and the consent of the holders thereof shall not be required for the taking of any corporate action, including, without limitation, any merger, conversion or consolidation of the Corporation or a sale of all or substantially all of the assets of the Corporation, irrespective of the effect that such merger, conversion or consolidation or sale may have upon the rights, preferences, privileges or voting power of holders of Series A Preferred Stock.

Section 10.<u>Information Rights</u>.

During any period in which the Corporation is not subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act and any shares of Series A Preferred Stock are outstanding, the Corporation will (i) transmit by mail or other permissible means under the Exchange Act to all holders of Series A Preferred Stock, as their names and addresses appear in the Corporation's record books and without cost to such holders, copies of the annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K that the Corporation would have been required to file with the Securities and Exchange Commission (the "Commission"), pursuant to Section 13 or Section 15(d) of the Exchange Act if the Corporation were subject thereto (other than any exhibits that would have been required) within 15 days after the respective dates by which the Corporation would have been required to file these reports with the Commission if it were subject to Section 13 or 15(d) of the Exchange Act and (ii) within 15 days following written request, supply copies of these reports to any prospective holder of Series A Preferred Stock.

Section 11.<u>Conversion</u>.

The Series A Preferred Stock shall not be convertible into or exchangeable for any other property or securities of the Corporation or any other entity, except in accordance with Section 8 hereof and Article V of the Charter.

Section 12.<u>Ranking</u>.

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In respect of rights to the payment of dividends and the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Corporation, the Series A Preferred Stock shall rank (i) senior to Common Stock and to all other equity securities issued by the Corporation, the terms of which expressly provide that such securities rank junior to the Series A Preferred Stock with respect to dividend rights and rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding-up; (ii) on parity with all equity securities issued by the Corporation, the terms of which expressly provide that such securities rank on parity with the Series A Preferred Stock with respect to dividend rights and rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding-up; and (iii) junior to all equity securities issued by the Corporation, the terms of which expressly provide that such securities rank senior to the Series A Preferred Stock with respect to dividend rights and rights upon the Corporation's voluntary or involuntary liquidation, dissolution or winding-up. All the Series A Preferred Stock shall rank equally with one another and shall be identical in all respects.

Section 13.<u>Restrictions on Transfer and Ownership of Stock of the Series A Preferred Stock</u>

The Series A Preferred Stock is subject to the terms and conditions (including any applicable exceptions and exemptions) of Article V of the Charter.

Section 14.<u>Status of Acquired Shares of Series A Preferred Stock</u>.

All shares of Series A Preferred Stock which shall have been issued and reacquired in any manner by the Corporation shall be returned to the status of authorized but unissued preferred stock, and may thereafter be classified, reclassified or issued as any series or class of preferred stock.

Section 15.<u>Record Holders</u>.

The Corporation may deem and treat the record holder of any share of Series A Preferred Stock as the true and lawful owner thereof for all purposes, and the Corporation shall not be affected by any notice to the contrary. Except as may be otherwise provided by the Board of Directors (and except in connection with a global certificate held by a securities depositary), holders of Series A Preferred Stock are not entitled to certificates representing the Series A Preferred Stock held by them.

Section 16.<u>Sinking Fund</u>.

The Series A Preferred Stock shall not be entitled to the benefits of any retirement or sinking fund.

Section 17.<u>Exclusion of Other Rights</u>.

The Series A Preferred Stock shall not have any preferences or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption other than expressly set forth in the Charter and these Articles Supplementary.

Section 18.<u>Headings of Subdivisions</u>.

The headings of the various subdivisions hereof are for convenience of reference only and shall not affect the interpretation of any of the provisions hereof.

Section 19.<u>Severability of Provisions</u>.

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If any preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of the Series A Preferred Stock set forth in the Charter and these Articles Supplementary are invalid, unlawful or incapable of being enforced by reason of any rule of law or public policy, all other preferences, conversion or other rights, voting powers, restrictions, limitations as to distributions, qualifications or terms or conditions of redemption of the Series A Preferred Stock set forth in

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the Charter (including these Articles Supplementary) which can be given effect without the invalid, unlawful or unenforceable provision thereof shall, nevertheless, remain in full force and effect and no preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of the Series A Preferred Stock herein set forth shall be deemed dependent upon any other provision thereof unless so expressed therein.

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**Exhibit B** 

**6.875% SERIES B CUMULATIVE REDEEMABLE PERPETUAL PREFERRED STOCK**

**(Liquidation Preference $25.00 per Share)**

Section 1. <u>Number of Shares and Designation</u>.

A series of preferred stock of the Company designated as the "6.875% Series B Cumulative Redeemable Perpetual Preferred Stock" is hereby established, and the number of shares constituting such series shall be 11,450,000.

Section 2. <u>Definitions</u>.

"Aggregate Share Ownership Limit" shall have the meaning set forth in Article V of the Charter.

"Alternative Conversion Consideration" shall have the meaning set forth in Section 8(a) hereof.

"Alternative Form Consideration" shall have the meaning set forth in Section 8(a) hereof.

"Board of Directors" shall mean the Board of Directors of the Company or any committee authorized by such Board of Directors to perform any of its responsibilities with respect to the Series B Preferred Stock.

"Business Day" shall mean any day other than a Saturday, a Sunday or a day on which state or federally chartered banking institutions in New York, New York are not required to be open.

"Capital Gains Amount" shall have the meaning set forth in Section 3(g) hereof.

"Change of Control" shall have the meaning set forth in Section 6(b) hereof.

"Change of Control Conversion Date" shall have the meaning set forth in Section 8(a) hereof.

"Change of Control Conversion Right" shall have the meaning set forth in Section 8(a) hereof.

"Change of Control Redemption Right" shall have the meaning set forth in Section 6(b) hereof.

"Charter" shall mean the charter of the Company.

"Code" shall mean the Internal Revenue Code of 1986, as amended.

"Commission" shall have the meaning set forth in Section 10 hereof.

"Common Stock" shall mean the Company's common stock, par value $0.01 per share.

"Common Stock Conversion Consideration" shall have the meaning set forth in Section 8(a) hereof.

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"Common Stock Price" shall have the meaning set forth in Section 8(a) hereof.

"Company" shall have the meaning set forth in Article I of the Charter.

"Conversion Agent" shall have the meaning set forth in Section 8(d) hereof.

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"Conversion Consideration" shall have the meaning set forth in Section 8(a) hereof.

"Conversion Date" shall have the meaning set forth in Section 8(c) hereof.

"Delisting Event" shall have the meaning set forth in Section 6(a) hereof.

"Delisting Event Conversion Date" shall have the meaning set forth in Section 8(a) hereof.

"Delisting Event Conversion Right" shall have the meaning set forth in Section 8(a) hereof.

"Delisting Event Redemption Right" shall have the meaning set forth in Section 6(a) hereof.

"DTC" shall have the meaning set forth in Section 8(f) hereof.

"Event" shall have the meaning set forth in Section 9(f)(ii) hereof.

"Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

"NASDAQ" shall mean the Nasdaq Stock Market or any successor that is a national securities exchange registered under Section 6 of the Exchange Act.

"NYSE" shall mean the New York Stock Exchange or any successor that is a national securities exchange registered under Section 6 of the Exchange Act.

"NYSE American" shall mean the NYSE American LLC or any successor that is a national securities exchange registered under Section 6 of the Exchange Act.

"Optional Redemption Right" shall have the meaning set forth in Section 5(b) hereof.

"Original Issue Date" shall mean the first date on which shares of Series B Preferred Stock are issued and sold.

"Parity Preferred" shall have the meaning set forth in Section 9(b) hereof.

"Preferred Directors" shall have the meaning set forth in Section 9(b) hereof.

"Preferred Dividend Default" shall have the meaning set forth in Section 9(b) hereof.

"REIT" shall have the meaning set forth in Article IV of the Charter.

"Series A Preferred Stock" shall mean the series of preferred stock, par value $0.01 per share, of the Company designated as 7.25% Series A Cumulative Redeemable Perpetual Preferred Stock.

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"Series B Dividend Period" shall mean the respective periods commencing on and including January 1, April 1, July 1 and October 1 of each year and ending on and including the day preceding the first day of the next succeeding Series B Dividend Period (other than the initial Series B Dividend Period, which shall commence on the Original Issue Date and end on and include December 31, 2019, and other than the Series B Dividend Period during which any shares of Series B Preferred Stock shall be redeemed pursuant to Section 5 or Section 6 (and that is not a Series B Dividend Period of the type contemplated by Section 7(b)), which, solely with respect to the shares of Series B Preferred Stock being redeemed, shall end on and include the day immediately preceding the redemption date with respect to such shares of Series B Preferred Stock being redeemed).

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"Series B Payment Date" shall mean, with respect to each Series B Dividend Period, the fifteenth (15th) day of the month following the month in which the Series B Dividend Period has ended (January, April, July and October of each year), commencing on January 15, 2020.

"Series B Preferred Stock" shall mean the series of preferred stock, par value $0.01 per share, of the Company designated as 6.875% Series B Cumulative Redeemable Perpetual Preferred Stock.

"Series B Record Date" shall mean the close of business on the date set by the Board of Directors as the record date for the payment of dividends that is not more than 30 nor fewer than 10 days prior to the applicable Series B Payment Date.

"Shares" shall have the meaning set forth in Article IV of the Charter.

"Share Cap" shall have the meaning set forth in Section 8(a) hereof.

"Special Optional Redemption Rights" shall have the meaning set forth in Section 6(b) hereof.

"Stock Split" shall have the meaning set forth in Section 8(a) hereof.

"Total Distributions" shall have the meaning set forth in Section 3(g) hereof.

Section 3. <u>Dividends and other Distributions</u>.

a.Subject to the preferential rights of the holders of any class or series of equity securities of the Company ranking senior to the Series B Preferred Stock with respect to dividend rights, the holders of the then outstanding Series B Preferred Stock shall be entitled to receive, when, as and if authorized by the Board of Directors and declared by the Company, out of funds legally available for the payment of dividends, cumulative cash dividends in the amount of $1.71875 per share each year, which is equivalent to the rate of 6.875% of the $25.00 liquidation preference per share per annum. Such dividends shall accrue and be cumulative from and including the Original Issue Date and shall be payable quarterly in arrears on each Series B Payment Date, commencing January 15, 2020, to all holders of record on the applicable Series B Record Date; <u>provided</u>, <u>however</u>, that if any Series B Payment Date is not a Business Day, the dividend which would otherwise have been payable on such Series B Payment Date may be paid or set apart for payment on the next succeeding Business Day with the same force and effect as if paid or set apart on such Series B Payment Date, and no interest or additional dividends or other sums shall accrue on the amount so payable from such Series B Payment Date to such next succeeding Business Day. Holders of record of all shares of Series B Preferred Stock outstanding on the applicable Series B Record Date will be entitled to receive the full dividend paid on the applicable Series B Payment Date even if such shares were not issued and outstanding for the full applicable Series B Dividend Period.

The initial dividend payable on the Series B Preferred Stock will cover the period from and including the Original Issue Date through December 31, 2019 and will be paid on January 15, 2020. The amount of any dividend

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payable on the Series B Preferred Stock for each full Series B Dividend Period shall be computed by dividing $1.71875 by four (4), regardless of the actual number of days in such full Series B Dividend Period. The amount of any dividend payable on the Series B Preferred Stock for any partial Series B Dividend Period and for the initial Series B Dividend Period shall be prorated and computed on the basis of a 360-day year consisting of twelve 30-day months. Dividends will be payable to holders of record as they appear in the stockholder records of the Company at the close of business on the applicable Series B Record Date. Notwithstanding any provision to the contrary contained herein, the dividend payable on each share of Series B Preferred Stock outstanding on a Series B Record Date shall equal the dividend payable on each other share of Series B Preferred Stock that is outstanding on such Series B Record Date, and no holder of any share of Series B Preferred Stock shall be entitled to receive any dividends paid or payable on the Series B Preferred Stock with a Series B Record Date before the date such share of Series B Preferred Stock is issued.

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b.No dividends on the Series B Preferred Stock shall be authorized by the Board of Directors or paid or declared and set apart for payment by the Company at such time as the terms and conditions of any agreement of the Company, including any agreement relating to its indebtedness, prohibit such authorization, payment or setting apart for payment or provide that such authorization, payment or setting apart for payment would constitute a breach thereof, or a default thereunder, or if such authorization, payment or setting apart for payment shall be restricted or prohibited by law.

c.Notwithstanding anything contained herein to the contrary, dividends on the Series B Preferred Stock shall accrue with respect to any Series B Dividend Periods whether or not dividends are authorized by the Board of Directors and declared by the Company. No interest or additional dividend shall be payable in respect of any accrued and unpaid dividend on the Series B Preferred Stock.

d.Except as provided in Section 3(e) below, no dividends shall be declared and paid or set apart for payment and no other distribution of cash or other property may be declared and made, directly or indirectly, on or with respect to shares of Common Stock or shares of any other class or series of equity securities of the Company ranking, with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, on parity with or junior to the Series B Preferred Stock (other than a dividend paid in shares of Common Stock or in shares of any other class or series of equity securities ranking junior to the Series B Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up), nor shall any shares of Common Stock or shares of any other class or series of equity securities of the Company ranking, with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, on parity with or junior to the Series B Preferred Stock be redeemed (or any monies be paid to or made available for a sinking fund for the redemption of any such shares), purchased or otherwise acquired, (except (i) by conversion into or exchange for shares of Common Stock or shares of any other class or series of equity securities of the Company ranking junior to the Series B Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, (ii) for the acquisition of shares made pursuant to the provisions of Section 5.7 of Article V of the Charter and (iii) for the purchase or acquisition of equity securities of the Company ranking on parity with the Series B Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding Series B Preferred Stock and any other shares of any other class or series of equity securities ranking on parity with the Series B Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up), unless full cumulative dividends on the Series B Preferred Stock for all past Series B Dividend Periods shall have been or contemporaneously are declared and paid or declared and a sum sufficient for the payment thereof is set apart for such payment.

e.When dividends are not paid in full (or declared and a sum sufficient for such full payment is not so set apart) upon the Series B Preferred Stock and any other class or series of equity securities ranking, with respect to

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dividend rights, on parity with the Series B Preferred Stock, all dividends (other than any acquisition of shares pursuant to the provisions of Section 5.7 of Article V of the Charter or a purchase or exchange offer made on the same terms to holders of all outstanding shares of Series B Preferred Stock and any such other class or series of equity securities ranking on parity with the Series B Preferred Stock with respect to dividend rights or rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up), declared upon the Series B Preferred Stock and any other class or series of equity securities ranking, with respect to dividend rights, on parity with the Series B Preferred Stock shall be allocated pro rata so that the amount declared per share of Series B Preferred Stock and such other equally ranked classes or series of equity securities shall in all cases bear to each other the same ratio that accrued dividends per share on the Series B Preferred Stock and such other equally ranked class or series of equity securities (which shall not include any accrual in respect of unpaid dividends on such other classes or series of equity securities for prior Series B Dividend Periods if such other class or series of equity securities does not have a cumulative dividend) bear to each other. No interest, or sum of money in lieu of interest, shall be payable in respect of any dividend payment or payments on the Series B Preferred Stock which may be in arrears.

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f.Holders of the Series B Preferred Stock shall not be entitled to any dividend, whether payable in cash, property or stock, in excess of full cumulative dividends on the Series B Preferred Stock as provided herein. Any dividend payment made on the Series B Preferred Stock shall first be credited against the earliest accrued and unpaid dividend.

g.If, for any taxable year, the Company elects to designate as "capital gain dividends" (as defined in Section 857 of the Code or any successor revenue code or section) any portion (the "Capital Gains Amount") of the total distributions not in excess of the Company's earnings and profits (as determined for United States federal income tax purposes) paid or made available for such taxable year to holders of all classes and series of Shares (the "Total Distributions"), then the portion of the Capital Gains Amount that shall be allocable to holders of Series B Preferred Stock shall be in the same proportion that the Total Distributions paid or made available to the holders of Series B Preferred Stock for such taxable year bears to the Total Distributions for such taxable year made with respect to all classes or series of Shares outstanding.

Section 4. <u>Liquidation Preference</u>.

Upon any voluntary or involuntary liquidation, dissolution or winding-up of the affairs of the Company, before any distribution or payment shall be made to holders of Common Stock or any other class or series of equity securities of the Company ranking, with respect to rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, junior to the Series B Preferred Stock, the holders of shares of Series B Preferred Stock then outstanding shall be entitled to be paid out of the assets of the Company legally available for distribution to its stockholders a liquidation preference of $25.00 per share, plus an amount equal to any accrued and unpaid dividends to, but not including, the date of payment (whether or not declared). If, upon any such voluntary or involuntary liquidation, dissolution or winding-up, the available assets of the Company are insufficient to pay the amount of the distributions payable upon liquidation, dissolution or winding-up of the affairs of the Company, on all outstanding shares of Series B Preferred Stock and the corresponding amounts payable on all shares of other classes or series of securities of the Company ranking, with respect to rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, on parity with the Series B Preferred Stock, the holders of Series B Preferred Stock and each such other class or series of securities ranking, with respect to rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, on parity with the Series B Preferred Stock shall share ratably in any such distribution of assets in proportion to the full liquidating distributions to which they would otherwise be respectively entitled. Written notice of any such voluntary or involuntary liquidation, dissolution or winding up, stating the payment date or dates when, and the place or places where, the amounts distributable in such circumstances shall be payable, shall be given by first-class mail, postage pre-paid, at least 20 days prior to the payment date stated therein, to each record holder of Series B Preferred Stock at the respective addresses of such

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holders as the same shall appear on the stock transfer records of the Company. After the holders of Series B Preferred Stock have received the full amount of the liquidating distributions to which they are entitled, they will have no right or claim to any of the remaining assets of the Company. The consolidation, conversion or merger of the Company with or into any other person, corporation, trust or entity, or the sale, lease, transfer or conveyance of all or substantially all of the property or business of the Company (whether in connection with a Change of Control or otherwise), shall not be deemed to constitute a liquidation, dissolution or winding-up of the affairs of the Company.

In determining whether any distribution (other than upon voluntary or involuntary dissolution) by dividend, redemption or other acquisition of Shares or otherwise is permitted under the Maryland General Corporation Law, amounts that would be needed, if the Company were to be dissolved at the time of the distribution, to satisfy the preferential rights upon dissolution of the holders of Series B Preferred Stock will not be added to the Company's total liabilities.

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Section 5. <u>Optional Redemption</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Series B Preferred Stock shall not be redeemable prior to November 26, 2024, except as provided in Section 5.7 of Article V of the Charter or Section 5(c) or Section 6 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On and after November 26, 2024, the Company, at its option, upon not fewer than 30 nor more than 60 days' written notice as provided in Section 5(e) hereof, may redeem the Series B Preferred Stock, in whole or in part, at any time or from time to time, at a redemption price of $25.00 per share, plus (subject to Section 7(b) hereof) an amount equal to all dividends accrued and unpaid (whether or not declared) thereon to, but not including, the date fixed for redemption, without interest (the "Optional Redemption Right"). If less than all of the outstanding shares of Series B Preferred Stock are to be redeemed, the shares of Series B Preferred Stock to be redeemed shall be redeemed *pro rata* (as nearly as may be practicable without creating fractional shares) or by lot. If such redemption is to be by lot, and if, as a result of such redemption, any holder of Series B Preferred Stock would own shares of Series B Preferred Stock in excess of the Aggregate Share Ownership Limit or in violation of any of the other restrictions on ownership and transfer of Shares set forth in Section 5.7 of Article V of the Charter, then, except as otherwise provided in the Charter, the Company will redeem the requisite number of shares of Series B Preferred Stock of such holder such that no holder will violate the Aggregate Share Ownership Limit or any other restrictions on ownership and transfer of Shares set forth in Section 5.7 of Article V of the Charter subsequent to such redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company may redeem all or a part of the Series B Preferred Stock in accordance with the terms and conditions set forth in this Section 5 of these Articles Supplementary at any time and from time to time, whether before or after November 26, 2024, if the Board of Directors determines that such redemption is reasonably necessary for the Company to preserve the status of the Company as a qualified REIT. If the Company calls for redemption any Series B Preferred Stock pursuant to and in accordance with this Section 5(c), then the redemption price for such shares will be an amount in cash equal to $25.00 per share, plus (subject to Section 7(b) hereof) all dividends accrued and unpaid (whether or not declared) thereon to and including the date fixed for redemption, without interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Unless full cumulative dividends on all shares of Series B Preferred Stock shall have been or contemporaneously are declared and paid or declared and a sum sufficient for the payment thereof in cash set apart for payment for all past Series B Dividend Periods, no shares of Series B Preferred Stock shall be redeemed pursuant to this Section 5 unless all outstanding shares of Series B Preferred Stock are simultaneously redeemed and the Company shall not purchase or otherwise acquire directly or indirectly any Series B Preferred Stock (except by exchange for equity securities of the Company ranking junior to the Series B Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up);

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<u>provided</u>, <u>however</u>, that the foregoing shall not prevent the purchase of the Series B Preferred Stock or any other class or series of equity securities of the Company by the Company in accordance with the terms of Section 5(c) hereof or Section 5.7 of Article V of the Charter or the purchase or acquisition of the Series B Preferred Stock pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding Series B Preferred Stock and the holders of all outstanding shares of any other class or series of preferred stock of the Company ranking on a party with the Series B Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding up.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notice of redemption pursuant to this Section 5 shall be mailed by the Company, postage prepaid, as of a date set by the Company not fewer than 30 nor more than 60 days prior to such redemption date, addressed to the respective holders of record of such shares of Series B Preferred Stock to be redeemed at their respective addresses as they appear on the stock transfer records of the Company. Failure to give such notice or any defect thereto or in the mailing thereof shall not affect the sufficiency of notice or validity of the proceedings for such redemption of any shares of Series B Preferred Stock except as to shares held by a holder to whom notice was defective or not given. A redemption notice which has been mailed in the manner provided herein shall be conclusively presumed to have been duly given on the date mailed whether or not such holder received the redemption notice. In addition to any information required by law or the applicable rules of any exchange upon which Series B Preferred Stock may be listed or admitted to trading, each notice shall state (i) such redemption date;

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(ii) the redemption price; (iii) the total number of shares of Series B Preferred Stock to be redeemed (and, if less than all the shares held by any holder are to be redeemed, the number of shares to be redeemed from such holder); (iv) the place or places where such shares of Series B Preferred Stock are to be surrendered for payment, together with the certificates, if any, representing such shares (duly endorsed for transfer) and any other documents the Company requires in connection with such redemption; and (v) that dividends on the Series B Preferred Stock to be redeemed shall cease to accrue on such redemption rate.

Section 6. <u>Special Optional Redemption by the Company</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During any period of time (whether before or after November 26, 2024) that both (i) the Series B Preferred Stock is not listed on NASDAQ, the NYSE or the NYSE American and (ii) the Company is not subject to the reporting requirements of the Exchange Act, but any shares of Series B Preferred Stock are outstanding (the occurrence of clauses (i) and (ii) is referred to as a "Delisting Event"), the Company will have the option, upon not fewer than 30 nor more than 60 days' written notice as provided in Section 6(d) hereof, to redeem the outstanding shares of Series B Preferred Stock, in whole but not in part, within 90 days after the occurrence of the Delisting Event, for a redemption price of $25.00 per share, plus (subject to Section 7(b) hereof) an amount equal to all dividends accrued and unpaid (whether or not declared), if any, to, but not including, the redemption date (a "Delisting Event Redemption Right").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, upon the occurrence of a Change of Control, the Company will have the option, upon not fewer than 30 nor more than 60 days' written notice as provided in Section 6(d) hereof, to redeem shares of Series B Preferred Stock, in whole but not in part, within 120 days after the first date on which such Change of Control occurred, for cash at $25.00 per share plus (subject to Section 7(b) hereof) an amount equal to dividends accrued and unpaid (whether or not declared), if any, on the Series B Preferred Stock to, but not including, the redemption date ("Change of Control Redemption Right" and, together with the Delisting Event Redemption Right, the "Special Optional Redemption Rights").

A "Change of Control" occurs when, after the Original Issue Date, the following have occurred and are continuing:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the acquisition by any person, including any syndicate or group deemed to be a "person" under Section 13(d)(3) of the Exchange Act of beneficial ownership, directly or indirectly, through a purchase, merger, conversion or other acquisition transaction or series of purchases, mergers, conversions or other acquisition transactions of shares of stock of the Company entitling that person to exercise more than 50% of the total voting power of all outstanding shares of stock of the Company entitled to vote generally in the election of directors (except that such person will be deemed to have beneficial ownership of all securities that such person has the right to acquire, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) following the closing of any transaction referred to in (i) above, neither the Company nor the acquiring or surviving entity, or a parent of the Company or the acquiring or surviving entity, has a class of common equity securities listed on NASDAQ, the NYSE or the NYSE American.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the foregoing, the Company shall not have the right to redeem shares of Series B Preferred Stock upon any Delisting Event occurring in connection with a transaction set forth in clause (i) of the definition of Change of Control unless such Delisting Event also constitutes a Change of Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notice of redemption pursuant to this Section 6 shall be mailed by the Company, postage prepaid, as of a date set by the Company not fewer than 30 nor more than 60 days prior to such redemption date, addressed to the holders of record of the Series B Preferred Stock at their respective addresses as they appear on the stock transfer records of the Company. Failure to give such notice or any defect thereto or in the mailing thereof shall not affect the sufficiency of notice or validity of the proceedings for such redemption of any shares of Series B Preferred Stock except as to a holder to whom notice was defective or not given. A redemption notice which has been mailed in the manner provided herein shall be conclusively presumed to have been duly given on the date mailed whether or not

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such holder received such redemption notice. In addition to any information required by law or the applicable rules of any exchange upon which Series B Preferred Stock may be listed or admitted to trading, each notice shall state (i) the redemption date; (ii) the redemption price; (iii) the total number of shares of Series B Preferred Stock to be redeemed; (iv) the place or places where such shares of Series B Preferred Stock are to be surrendered for payment, together with the certificates, if any, representing such shares (duly endorsed for transfer) and any other documents the Company requires in connection with such redemption; (v) that the Series B Preferred Stock is being redeemed pursuant to the Delisting Event Redemption Right or the Change of Control Redemption Right, as applicable, in connection with the occurrence of a Delisting Event or a Change of Control, as applicable, and a brief description of the transaction or transactions constituting such Delisting Event or Change of Control, as applicable; (vi) that holders of Series B Preferred Stock will not be able to tender shares of Series B Preferred Stock for conversion in connection with the Delisting Event or Change of Control, as applicable, and each share of Series B Preferred Stock tendered for conversion that is selected, prior to the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, for redemption will be redeemed on the related redemption date instead of converted on the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable; and (vii) that dividends on the shares of Series B Preferred Stock to be redeemed will cease to accrue on such redemption date.

Section 7. <u>Additional Provisions Relating to Optional Redemption and Special Optional Redemption by the Company</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If (i) notice of redemption of any shares of Series B Preferred Stock has been given, (ii) the funds necessary for such redemption have been set apart by the Company in trust for the benefit of the holders of any Series B Preferred Stock so called for redemption and (iii) irrevocable instructions have been given to pay the redemption price of $25.00 per share, plus (subject to Section 7(b) hereof) an amount equal to all dividends accrued and unpaid (whether or not declared) to, but not including, the applicable redemption date, then from and after such redemption date, dividends shall cease to accrue on such shares of Series B Preferred Stock, such shares of Series B

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Preferred Stock shall no longer be outstanding, such shares of Series B Preferred Stock shall not be transferred except with the consent of the Company and all other rights of the holders of such shares will terminate, except the right to receive the redemption price of $25.00 per share, plus (subject to Section 7(b) hereof) an amount equal to any dividends accrued and unpaid (whether or not declared) payable upon such redemption, without interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a redemption date falls after a Series B Record Date and on or prior to the corresponding Series B Payment Date, each holder of shares of Series B Preferred Stock on the Series B Record Date shall be entitled to the dividend payable on such shares on the corresponding Series B Payment Date, notwithstanding such redemption of such shares on or prior to the Series B Payment Date, and each holder of shares of Series B Preferred Stock that are redeemed on such redemption date will be entitled to the dividends, if any, accruing after the end of the Series B Dividend Period to which the Series B Payment Date relates to, but not including, such redemption date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of clause (a)(ii) above, funds shall be deposited in trust with a bank or trust corporation and such deposit shall be irrevocable except that any balance of monies so deposited by the Company and unclaimed by the holders of Series B Preferred Stock entitled thereto at the expiration of two years from the applicable redemption dates shall be repaid, together with any interest or other earnings thereon, to the Company, and after any such repayment, the holders of the shares entitled to the funds so repaid to the Company shall look only to the Company for payment without interest or other earnings.

Section 8. <u>Conversion Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Section 8(j), upon the occurrence of a Delisting Event or a Change of Control, as applicable, each holder of shares of Series B Preferred Stock shall have the right, unless, prior to the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, the Company has provided or provides notice of its election to redeem such shares of Series B Preferred Stock pursuant to the Optional Redemption Right or Special Optional Redemption Rights, to convert some or all of such shares of Series B Preferred Stock held by such holder (with respect to a Delisting Event, the "Delisting Event Conversion Right" and, with respect to a Change of Control, the "Change of Control Conversion Right") on the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, into a number of shares Common Stock per share of Series B Preferred

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Stock to be converted (the "Common Stock Conversion Consideration") equal to the lesser of (A) the quotient of (i) the sum of $25.00 plus an amount equal to all dividends accrued and unpaid (whether or not declared) on the Series B Preferred Stock to, but not including, the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, (unless such Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, is after a Series B Record Date and prior to the corresponding Series B Payment Date, in which case no additional amount for accrued and unpaid dividends that have been declared and are to be paid on the Series B Payment Date will be included in such sum), divided by (ii) the Common Stock Price and (B) 2.5126 (as adjusted pursuant to the immediately succeeding paragraph, the "Share Cap").

The Share Cap is subject to *pro rata* adjustments for any stock splits (including those effected pursuant to a Common Stock dividend), subdivisions or combinations (in each case, a "Stock Split") with respect to the Common Stock as follows: the adjusted Share Cap as the result of a Stock Split shall be the number of shares of Common Stock that is equivalent to the product of (i) the Share Cap in effect immediately prior to the Stock Split, multiplied by (ii) a fraction, the numerator of which is the number of shares of Common Stock outstanding after giving effect to the Stock Split and the denominator of which is the number of shares of Common Stock outstanding immediately prior to such Stock Split.

In the case of a Delisting Event or a Change of Control, as applicable, pursuant to, or in connection with, which shares of Common Stock shall be converted into cash, securities or other property or assets (including any combination thereof) (the "Alternative Form Consideration"), a holder of shares of Series B Preferred Stock shall

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receive upon conversion of such shares of Series B Preferred Stock (subject to the next-following paragraph) the kind and amount of Alternative Form Consideration which such holder would have owned or been entitled to receive had such holder held a number of shares of Common Stock equal to the Common Stock Conversion Consideration immediately prior to the effective time of the Delisting Event or Change of Control, as applicable (the "Alternative Conversion Consideration" and, together with the Common Stock Conversion Consideration, the "Conversion Consideration").

In the event that holders of Common Stock have the opportunity to elect the form of consideration to be received in connection with the Delisting Event or Change of Control, as applicable, the consideration that holders of Series B Preferred Stock shall receive shall be the form of consideration elected by the holders of a plurality of the shares of Common Stock held by stockholders who participate in the election and shall be subject to any limitations to which all holders of Common Stock are subject, including, without limitation, pro rata reductions applicable to any portion of the consideration payable in connection with the Delisting Event or Change of Control, as applicable.

The "Change of Control Conversion Date" with respect to any Change of Control shall be a Business Day fixed by the Board of Directors that is not fewer than 20 days and not more than 35 days after the date on which the Company provides notice of the Change of Control pursuant to Section 8(d). The "Delisting Event Conversion Date" with respect to any Delisting Event shall be a Business Day fixed by the Board of Directors that is not fewer than 20 days and not more than 35 days after the date on which the Company provides notice of such Delisting Event pursuant to Section 8(d).

The "Common Stock Price" for any Change of Control shall be (i) the amount of cash consideration per share of Common Stock, if the consideration to be received in such Change of Control by holders of Common Stock is solely cash, or (ii) the average of the closing prices per share of Common Stock on NASDAQ, the NYSE or the NYSE American (or any other national securities exchange on which Common Stock is then listed) for the ten consecutive trading days immediately preceding, but not including, the effective date of such Change of Control, if the consideration to be received in the Change of Control by holders of Common Stock is other than solely cash. The "Common Stock Price" for any Delisting Event shall be the average of the closing prices per share of Common Stock on NASDAQ, the NYSE or the NYSE American (or any other national securities exchange on which Common Stock is then listed) for the ten consecutive trading days immediately preceding, but not including, the effective date of the Delisting Event.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No fractional shares of Common Stock shall be issued upon the conversion of the Series B Preferred Stock. In lieu of fractional shares, holders shall be entitled to receive the cash value of the fractional shares based on the Common Stock Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a Change of Control Conversion Date or a Delisting Event Conversion Date (either, a "Conversion Date") falls after a Series B Record Date and on or prior to the corresponding Series B Payment Date, each holder of shares of Series B Preferred Stock at the close of business on the Series B Record Date shall be entitled to the dividend payable on such shares on the corresponding Series B Payment Date, notwithstanding the conversion of such shares on or prior to the Series B Payment Date, and each holder of shares of Series B Preferred Stock that are converted on the Conversion Date will be entitled to the dividends, if any, accruing after the end of the Series B Dividend Period to which the Series B Payment Date relates to, but not including, the Conversion Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Within 15 days following the occurrence of a Delisting Event or a Change of Control, as applicable, unless the Company has provided notice of its election to redeem the Series B Preferred Stock pursuant to the Delisting Event Redemption Right or the Change of Control Redemption Right, as applicable, a notice of occurrence of the Delisting Event or the Change of Control, as applicable, describing the resulting Delisting Event Conversion Right or Change of Control Conversion Right, as applicable, shall be delivered to the holders of record of the

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outstanding shares of Series B Preferred Stock at their addresses as they appear on the Company's stock transfer records. No failure to give the notice or any defect thereto or in the mailing thereof shall affect the validity of the proceedings for the conversion of any share of Series B Preferred Stock except as to the holder to whom notice was defective or not given. Each notice shall state: (i) the events constituting the Delisting Event or the Change of Control, as applicable; (ii) the date of the Delisting Event or the Change of Control, as applicable; (iii) the last date on which the holders of Series B Preferred Stock may exercise their Delisting Event Conversion Right or Change of Control Conversion Right, as applicable; (iv) the method and period for calculating the Common Stock Price; (v) the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable; (vi) that if, prior to the applicable Conversion Date, the Company provides notice of its election to redeem all or any portion of the Series B Preferred Stock, the holders of Series B Preferred Stock will not be able to convert such shares of Series B Preferred Stock called for redemption and such shares of Series B Preferred Stock shall be redeemed on the related redemption date, even if they have already been tendered for conversion pursuant to the Delisting Event Conversion Right or the Change of Control Conversion Right, as applicable; (vii) if applicable, the type and amount of Alternative Conversion Consideration entitled to be received per share of Series B Preferred Stock; (viii) the name and address of the paying agent and the conversion agent (the "Conversion Agent"); and (ix) the procedures that holders of Series B Preferred Stock must follow to exercise the Delisting Event Conversion Right or the Change of Control Conversion Right, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall issue a press release for publication on the Dow Jones & Company, Inc., Business Wire, PR Newswire or Bloomberg Business News (or, if such organizations are not in existence at the time of issuance of such press release, another news or press organization as is reasonably calculated to broadly disseminate the relevant information to the public) containing the information stated in the notice, and post the notice on the Company's website, in any event prior to the opening of business on the first Business Day following any date on which the Company provides notice pursuant to Section 8(d) above to the holders of record of the Series B Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In order to exercise the Delisting Event Conversion Right or the Change of Control Conversion Right, as applicable, a holder of record of shares of Series B Preferred Stock shall be required to deliver, on or before the close of business on the applicable Conversion Date, the certificates, if any, representing any certificated shares of Series B Preferred Stock to be converted, duly endorsed for transfer, together with a completed written conversion notice and any other documents the Company reasonably requires in connection with the conversion, to the Conversion Agent. Such notice shall state: (i) the relevant Delisting Event Conversion Date or Change of Control Conversion Date, as applicable; and (ii) the number of shares of Series B Preferred Stock to be converted. Notwithstanding the foregoing, if such shares of Series B Preferred Stock are held in global form, such notice shall instead comply with applicable procedures of The Depository Trust Company ("DTC").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Holders of the Series B Preferred Stock may withdraw any notice of exercise of a Delisting Event Conversion Right or a Change of Control Conversion Right, as applicable, (in whole or in part) by a written notice of withdrawal delivered to the Conversion Agent prior to the close of business on the Business Day prior to the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable. The notice of withdrawal must state: (i) the number of withdrawn shares of Series B Preferred Stock; (ii) if certificated shares of Series B Preferred Stock have been tendered for conversion and withdrawn, the certificate numbers of the withdrawn certificated shares of Series B Preferred Stock; and (iii) the number of shares of Series B Preferred Stock, if any, which remain subject to the conversion notice. Notwithstanding the foregoing, if such shares of Series B Preferred Stock are held in global form, the notice of withdrawal shall instead comply with applicable procedures of DTC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Shares of Series B Preferred Stock as to which the Delisting Event Conversion Right or the Change of Control Conversion Right, as applicable, has been properly exercised and for which the conversion notice has not been properly withdrawn shall be converted into the applicable Conversion Consideration on the applicable Delisting Event Conversion Date or Change of Control Conversion Date unless, prior thereto, the Company provides

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notice of its election to redeem such shares of Series B Preferred Stock, whether pursuant to its Optional Redemption Right or Special Optional Redemption Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company shall deliver the applicable Conversion Consideration no later than the third Business Day following the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Notwithstanding anything to the contrary in this Section 8, no holder of Series B Preferred Stock will be entitled to exercise a Delisting Event Conversion Right or a Change of Control Conversion Right or convert any shares of Series B Preferred Stock into shares of Common Stock to the extent that receipt of shares of Common Stock upon the conversion of such shares of Series B Preferred Stock in accordance with this Section 8 would cause such person or any other person to violate Section 5.7 of Article V of the Charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) In connection with the exercise of any Delisting Event Conversion Right or Change of Control Conversion Right, as applicable, the Company shall comply with all U.S. federal and state securities laws and stock exchange rules in connection with any conversion of shares of Series B Preferred Stock into Conversion Consideration.

Section 9. <u>Voting Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Holders of the Series B Preferred Stock shall not have any voting rights except as set forth in this Section 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Whenever dividends on any outstanding shares of Series B Preferred Stock shall have not been paid for six or more Series B Dividend Periods (whether or not such dividends have been declared or the Series B Dividend Periods are consecutive) (a "Preferred Dividend Default"), the holders of Series B Preferred Stock (and all other classes and series of preferred stock of the Company ranking on parity with the Series B Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding up and upon which like voting rights have been conferred and are exercisable and with which such holders of Series B Preferred Stock are entitled to vote together as a single class, including, without limitation, the Series A Preferred Stock (the "Parity Preferred")) will have the exclusive power, voting together as a single class, to elect two additional directors (the "Preferred Directors"), at each annual meeting of the Company's stockholders and at any special meeting of the Company's stockholders called for the purpose of electing Preferred Directors (pursuant to Section 9(d) hereof or otherwise), until all dividends accrued and unpaid on outstanding shares of Series B Preferred Stock for all past Series B Dividend Periods and the then-current Series B Dividend Period have been fully paid. Unless the number of the Company's directors has previously been increased pursuant to the terms of any other class or series of Parity Preferred with which such holders of Series B Preferred Stock are entitled to vote together as a single class in the election of Preferred Directors, the number of the Company's directors shall automatically increase by two at such time as holders of Series B Preferred Stock become entitled to vote in the election of the Preferred Directors. Unless shares of Parity Preferred remain outstanding and entitled to vote in the election of

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Preferred Directors, the term of office of each Preferred Director will terminate, and the number of the Company's directors shall automatically decrease by two, when all accrued and unpaid dividends for all past Series B Dividend Periods and the then-current Series B Dividend Period have been fully paid. If the right of holders of Series B Preferred Stock to elect the Preferred Directors terminates after the record date for determining holders of shares of Series B Preferred Stock entitled to vote in any election of Preferred Directors but before the closing of the polls in such election, holders of shares of Series B Preferred Stock outstanding as of the applicable record date shall not be entitled to vote in the election of any Preferred Directors. The right of holders of Series B Preferred Stock to elect the Preferred Directors shall again vest if and whenever dividends are in arrears for six Series B Dividend Periods, as described above. In no event shall holders of Series B Preferred Stock be entitled to nominate or elect an individual as a Preferred Director, and no individual shall be qualified to be nominated for election or to serve as a

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Preferred Director, if the individual's service as a Preferred Director would cause the Company to fail to satisfy a requirement relating to director independence of any national securities exchange on which any class or series of Stock is listed or otherwise conflict with the Charter or the Company's Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Preferred Directors shall be elected by a plurality of the votes cast in the election of such directors, and each Preferred Director will serve until the next annual meeting of the Company's stockholders and until his or her successor is duly elected and qualifies, or until such director's term of office terminates as set forth in Section 9(b). Any director elected by holders of Series B Preferred Stock and any Parity Preferred, voting together as a single class, may be removed, with or without cause, only by a vote of holders of a majority of the outstanding shares of Series B Preferred Stock and Parity Preferred with which holders of Series B Preferred Stock are entitled to vote together as a single class in the election of Preferred Directors. At any time that holders of Series B Preferred Stock are entitled to vote in the election of the Preferred Directors, such holders shall be entitled to vote in the election of a successor to fill any vacancy on the Board of Directors that results from the removal of a Preferred Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At any time that holders of the Series B Preferred Stock and any Parity Preferred have the right to elect Preferred Directors as described in Section 9(b) hereof but these directors have not been elected, the Company's secretary must call a special meeting of stockholders for the purpose of electing the Preferred Directors upon the written request of the holders of record of 10% of the outstanding shares of Series B Preferred Stock and Parity Preferred with which holders of Series B Preferred Stock are entitled to vote together as a single class with respect to the election of Preferred Directors, unless the request is received more than 45 days and less than 90 days before the date fixed for the next annual meeting of the Company's stockholders at which such vote would otherwise occur, in which case, the Preferred Directors may be elected at either such annual meeting or at a separate special meeting of the Company's stockholders at the Company's discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) So long as any shares of Series B Preferred Stock are outstanding, the approval of holders of at least two-thirds of the outstanding shares of Series B Preferred Stock and any equally-affected class or series of Parity Preferred with which holders of Series B Preferred Stock are entitled to vote together as a single class shall be required to authorize (i) any amendment, alteration, repeal or other change to any provision of the Charter, including the terms of the Series B Preferred Stock (whether by merger, conversion, consolidation, transfer or conveyance of all or substantially all of the Company's assets or otherwise), that would materially and adversely affect the rights, preferences, privileges or voting powers of the Series B Preferred Stock or (ii) the creation, issuance or increase in the authorized number of shares of any class or series of stock ranking senior to the Series B Preferred Stock (or any equity securities convertible into or exchangeable for any such shares, but not including debt securities convertible into or exchangeable for any such shares prior to the time of conversion) with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding up.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The following actions shall not be deemed to materially and adversely affect the rights, preferences, privileges or voting powers of the Series B Preferred Stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any increase or decrease in the number of authorized Shares of any class or series or the classification or reclassification of any unissued Shares, or the creation or issuance of equity securities, of any class or series ranking, junior or on parity with the Series B Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding up, <u>provided</u> that such action does

![image_3.jpg](image_3.jpg)

not decrease the number of authorized shares of Common Stock below the number (after giving effect to all other outstanding shares capital stock) necessary to permit the Series B Preferred Stock to be converted in full in accordance with the terms hereof; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an amendment, alteration, or repeal or other change to any provisions of the Charter, including the terms of the Series B Preferred Stock, as a result of a merger, conversion, consolidation, transfer or conveyance of all or substantially all of the Company's assets or other business combination (an "Event"), (x) if the Series B Preferred Stock (or securities of any successor person or entity to the Company into which the Series B Preferred Stock has been converted) remains outstanding with the terms thereof unchanged in all material respects or the holders of shares of Series B Preferred Stock receive securities of a successor person or entity with substantially identical rights as those of Series B Preferred Stock, taking into account that, upon the occurrence of an Event, the Company may not be the surviving entity, or (y) if holders of Series B Preferred Stock shall receive the $25.00 liquidation preference per share of Series B Preferred Stock, plus an amount equal to all accrued and unpaid dividends to, but not including, the date of such Event (other than any declared dividends having a Series B Record Date before the date of such Event and a Series B Payment Date after the date of such Event, which shall be paid as provided in Section 3 above), pursuant to the occurrence of any Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding the foregoing, holders of any Parity Preferred shall not be entitled to vote together as a single class with holders of Series B Preferred Stock on any amendment, alteration, repeal or other change to any provision of the Charter, including the terms of the Series B Preferred Stock, unless such action affects holders of Series B Preferred Stock and such Parity Preferred equally. On any matter in which the Series B Preferred Stock may vote, each share of Series B Preferred Stock shall entitle the holder thereof to cast one vote, except that, in class votes, or in determining the percentage of outstanding shares, when voting together as a single class, with shares of one or more class or series of Parity Preferred, shares of different classes and series shall vote, or such determination shall be made, in proportion to the liquidation preference of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The foregoing voting provisions of this Section 9 shall not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required shall be effected, all outstanding shares of Series B Preferred Stock shall have been redeemed or called for redemption upon proper notice and sufficient funds, in cash, shall have been deposited in trust to effect such redemption, in each case, in accordance with the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as expressly stated herein, the Series B Preferred Stock shall not have any relative, participating, optional or other special voting rights and powers and the consent of the holders thereof shall not be required for the taking of any corporate action, including, without limitation, any merger, conversion or consolidation of the Company or a sale of all or substantially all of the assets of the Company, irrespective of the effect that such merger, conversion or consolidation or sale may have upon the rights, preferences, privileges or voting power of holders of Series B Preferred Stock.

Section 10. <u>Information Rights</u>.

During any period in which the Company is not subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act and any shares of Series B Preferred Stock are outstanding, the Company will (i) transmit by mail or other permissible means under the Exchange Act to all holders of Series B Preferred Stock, as their names and addresses appear in the Company's record books and without cost to such holders, copies of the annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K that the Company would have been required to file with the Securities and Exchange Commission (the "Commission"), pursuant to Section 13 or Section 15(d) of the Exchange Act if the Company were subject thereto (other than any exhibits that would have been required) within 15 days after the respective dates by which the Company would have been required to file these reports with the Commission if it were subject to Section 13 or 15(d) of the Exchange Act and (ii) within 15 days following written request, supply copies of these reports to any prospective holder of Series B Preferred Stock.

Section 11. <u>Conversion</u>.

![image_3.jpg](image_3.jpg)

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The Series B Preferred Stock shall not be convertible into any other property or securities of the Company or any other entity, except in accordance with Section 8 hereof and Article V of the Charter.

Section 12. <u>Ranking</u>.

In respect of rights to the payment of dividends and the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company, the Series B Preferred Stock shall rank (i) senior to Common Stock and to all other equity securities issued by the Company, the terms of which expressly provide that such securities rank junior to the Series B Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up; (ii) on parity with all equity securities issued by the Company, the terms of which expressly provide that such securities rank on parity with the Series B Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up; and (iii) junior to all equity securities issued by the Company, the terms of which expressly provide that such securities rank senior to the Series B Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up. All the Series B Preferred Stock shall rank equally with one another and shall be identical in all respects.

Section 13. <u>Restrictions on Transfer and Ownership of Stock of the Series B Preferred Stock</u>.

The Series B Preferred Stock is subject to the terms and conditions (including any applicable exceptions and exemptions) of Article V of the Charter.

Section 14. <u>Status of Acquired Shares of Series B Preferred Stock</u>.

All shares of Series B Preferred Stock which shall have been issued and reacquired in any manner by the Company shall be returned to the status of authorized but unissued preferred stock, and may thereafter be classified, reclassified or issued as any series or class of preferred stock.

Section 15. <u>Record Holders</u>.

The Company may deem and treat the record holder of any share of Series B Preferred Stock as the true and lawful owner thereof for all purposes, and the Company shall not be affected by any notice to the contrary. Except as may be otherwise provided by the Board of Directors (and except in connection with a global certificate held by a securities depositary), holders of Series B Preferred Stock are not entitled to certificates representing the Series B Preferred Stock held by them.

Section 16. <u>Sinking Fund</u>.

The Series B Preferred Stock shall not be entitled to the benefits of any retirement or sinking fund.

Section 17. <u>Physical Certificate Request</u>.

Shares of Series B Preferred Stock shall be eligible for the Direct Registration System service offered by DTC and may be represented in the form of uncertificated or certificated shares, provided, however, that any holder of certificated shares of Series B Preferred Stock and, upon request, every holder of uncertificated shares of Series B Preferred Stock, shall be entitled to have a certificate for shares of Series B Preferred Stock signed by, or in the name of, the Company certifying the number of shares owned by such holder.

Section 18. <u>Exclusion of Other Rights</u>.

The Series B Preferred Stock shall not have any preferences or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption other than expressly set forth in the Charter, including the terms of the Series B Preferred Stock.

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![image_3.jpg](image_3.jpg)

Section 19. <u>Headings of Subdivisions.</u>

The headings of the various subdivisions hereof are for convenience of reference only and shall not affect the interpretation of any of the provisions hereof.

Section 20. <u>Severability of Provisions.</u>

If any preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of the Series B Preferred Stock set forth in the Charter, including the terms of the Series B Preferred Stock, are invalid, unlawful or incapable of being enforced by reason of any rule of law or public policy, all other preferences, conversion or other rights, voting powers, restrictions, limitations as to distributions, qualifications or terms or conditions of redemption of the Series B Preferred Stock set forth in the Charter (including the terms of the Series B Preferred Stock) which can be given effect without the invalid, unlawful or unenforceable provision thereof shall, nevertheless, remain in full force and effect and no preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of the Series B Preferred Stock herein set forth shall be deemed dependent upon any other provision thereof unless so expressed therein.

![image_3.jpg](image_3.jpg)

**Exhibit C**

**<u>GLOBAL NET LEASE, INC.</u>**

**ARTICLES SUPPLEMENTARY**

**7.50% SERIES D CUMULATIVE REDEEMABLE PERPETUAL PREFERRED STOCK**

**(Liquidation Preference $25.00 per Share)**

Global Net Lease, Inc., a Maryland corporation (the "Company"), hereby certifies to the Maryland State Department of Assessments and Taxation that:

FIRST: Under a power contained in Article V of the Charter, the Board and a duly authorized committee thereof, by resolutions duly adopted, classified 7,933,711 authorized but unissued shares of preferred stock, par value $0.01 per share, of the Company as shares of a series of preferred stock, designated as 7.50% Series D Cumulative Redeemable Perpetual Preferred Stock (the "Series D Preferred Stock") with the following preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms and conditions of redemption of the Series D Preferred Stock which, upon any restatement of the Charter, shall become part of Article V of the Charter, with any necessary or appropriate renumbering or relettering of the sections or subsections hereof:

**7.50% Series D Cumulative Redeemable Perpetual Preferred Stock**

Section 1. <u>Number of Shares and Designation</u>.

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A series of preferred stock of the Company designated as the "7.50% Series D Cumulative Redeemable Perpetual Preferred Stock" is hereby established, and the number of shares constituting such series shall be 7,933,711.

Section 2. <u>Definitions</u>.

"Aggregate Share Ownership Limit" shall have the meaning set forth in Article V of the Charter.

"Alternative Conversion Consideration" shall have the meaning set forth in Section 8(a) hereof.

"Alternative Form Consideration" shall have the meaning set forth in Section 8(a) hereof.

"Board of Directors" shall mean the Board of Directors of the Company or any committee authorized by such Board of Directors to perform any of its responsibilities with respect to the Series D Preferred Stock.

"Business Day" shall mean any day other than a Saturday, Sunday or a day on which state or federally chartered banking institutions in New York, New York are not required to be open.

"Capital Gains Amount" shall have the meaning set forth in Section 3(g) hereof.

"Change of Control" shall have the meaning set forth in Section 6(b) hereof.

"Change of Control Conversion Date" shall have the meaning set forth in Section 8(a) hereof.

"Change of Control Conversion Right" shall have the meaning set forth in Section 8(a) hereof.

"Change of Control Redemption Right" shall have the meaning set forth in Section 6(b) hereof.

"Charter" shall mean the charter of the Company.

"Code" shall mean the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp; "Commission" shall have the meaning set forth in Section 10 hereof.

"Common Stock" shall mean the Company's common stock, par value $0.01 per share.

"Common Stock Conversion Consideration" shall have the meaning set forth in Section 8(a) hereof.

"Common Stock Price" shall have the meaning set forth in Section 8(a) hereof.

"Company" shall have the meaning set forth in Article I of the Charter.

"Conversion Agent" shall have the meaning set forth in Section 8(d) hereof.

"Conversion Consideration" shall have the meaning set forth in Section 8(a) hereof.

"Conversion Date" shall have the meaning set forth in Section 8(c) hereof.

"Delisting Event" shall have the meaning set forth in Section 6(a) hereof.

"Delisting Event Conversion Date" shall have the meaning set forth in Section 8(a) hereof.

"Delisting Event Conversion Right" shall have the meaning set forth in Section 8(a) hereof.

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"Delisting Event Redemption Right" shall have the meaning set forth in Section 6(a) hereof.

"DTC" shall have the meaning set forth in Section 8(f) hereof.

"Event" shall have the meaning set forth in Section 9(f)(ii) hereof.

"Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

"NASDAQ" shall mean the Nasdaq Global Select Market or any successor that is a national securities exchange registered under Section 6 of the Exchange Act.

"NYSE" shall mean the New York Stock Exchange or any successor that is a national securities exchange registered under Section 6 of the Exchange Act.

"NYSE American" shall mean the NYSE American LLC or any successor that is a national securities exchange registered under Section 6 of the Exchange Act.

"Optional Redemption Right" shall have the meaning set forth in Section 5(b) hereof.

"Original Issue Date" shall mean the first date on which shares of Series D Preferred Stock are issued.

"Parity Preferred" shall have the meaning set forth in Section 9(b) hereof.

"Preferred Directors" shall have the meaning set forth in Section 9(b) hereof.

"Preferred Dividend Default" shall have the meaning set forth in Section 9(b) hereof.

"REIT" shall have the meaning set forth in Article IV of the Charter.

"Series A Preferred Stock" shall mean the series of preferred stock, par value $0.01 per share, of the Company designated as 7.25% Series A Cumulative Redeemable Preferred Stock.

"Series B Preferred Stock" shall mean the series of preferred stock, par value $0.01 per share, of the Company designated as 6.875% Series B Cumulative Redeemable Perpetual Preferred Stock.

"Series E Preferred Stock" shall mean the series of preferred stock, par value $0.01 per share, of the Company designated as 7.375% Series E Cumulative Redeemable Perpetual Preferred Stock.

"Series D Dividend Period" shall mean the respective periods commencing on and including January 1, April 1, July 1 and October 1 of each year and ending on and including the day preceding the first day of the next succeeding Series D Dividend Period (other than the initial Series D Dividend Period, which shall commence on July 1, 2023 and end on and include September 30, 2023, and other than the Series D Dividend Period during which any shares of Series D Preferred Stock shall be redeemed pursuant to Section 5 or Section 6 (and that is not a Series D Dividend Period of the type contemplated by Section 7(b)), which, solely with respect to the shares of Series D Preferred Stock being redeemed, shall end on and include the day immediately preceding the redemption date with respect to such shares of Series D Preferred Stock being redeemed).

"Series D Payment Date" shall mean, with respect to each Series D Dividend Period, the fifteenth (15<sup>th</sup>) day of the month following the month in which the Series D Dividend Period has ended (January, April, July and October of each year), commencing on October 15, 2023.

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"Series D Preferred Stock" shall mean the series of preferred stock, par value $0.01 per share, of the Company designated as 7.50% Series D Cumulative Redeemable Perpetual Preferred Stock.

"Series D Record Date" shall mean the close of business on the date set by the Board of Directors as the record date for the payment of dividends that is not more than 30 nor fewer than 10 days prior to the applicable Series D Payment Date.

"Shares" shall have the meaning set forth in Article IV of the Charter.

"Share Cap" shall have the meaning set forth in Section 8(a) hereof.

"Special Optional Redemption Rights" shall have the meaning set forth in Section 6(b) hereof.

"Stock Split" shall have the meaning set forth in Section 8(a) hereof.

"Total Distributions" shall have the meaning set forth in Section 3(g) hereof.

Section 3. <u>Dividends and other Distributions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the preferential rights of the holders of any class or series of equity securities of the Company ranking senior to the Series D Preferred Stock with respect to dividend rights, the holders of the then outstanding Series D Preferred Stock shall be entitled to receive, when, as and if authorized by the Board of Directors and declared by the Company, out of funds legally available for the payment of dividends, cumulative cash dividends in the amount of $1.8750 per share each year, which is equivalent to the rate of 7.50% of the $25.00 liquidation preference per share per annum. Such dividends shall accrue and be cumulative from and including July 1, 2023 and shall be payable quarterly in arrears on each Series D Payment Date, commencing October 15, 2023, to all holders of record on the applicable Series D Record Date; <u>provided</u>, <u>however</u>, that if any Series D Payment Date is not a Business Day, the dividend which would otherwise have been payable on such Series D Payment Date may be paid or set apart for payment on the next succeeding Business Day with the same force and effect as if paid or set apart on such Series D Payment Date, and no interest or additional dividends or other sums shall accrue on the amount so payable from such Series D Payment Date to such next succeeding Business Day. Holders of record of all shares of Series D Preferred Stock outstanding on the applicable Series D Record Date will be entitled to receive the full dividend paid on the applicable Series D Payment Date even if such shares were not issued and outstanding for the full applicable Series D Dividend Period.

The initial dividend payable on the Series D Preferred Stock will cover the period from and including July 1, 2023 through September 30, 2023 and will be paid on October 15, 2023. The amount of any dividend payable on the Series D Preferred Stock for each full Series D Dividend Period shall be computed by dividing $1.8750 by four (4), regardless of the actual number of days in such full Series D Dividend Period. The amount of any dividend payable on the Series D Preferred Stock for any partial Series D Dividend Period and for the initial Series D Dividend Period shall be prorated and computed on the basis of a 360-day year consisting of twelve 30-day months. Dividends will be payable to holders of record as they appear in the stockholder records of the Company at the close of business on the applicable Series D Record Date. Notwithstanding any provision to the contrary contained herein, the dividend payable on each share of Series D Preferred Stock outstanding on a Series D Record Date shall equal the dividend payable on each other share of Series D Preferred Stock that is outstanding on such Series D Record Date, and no holder of any share of Series D Preferred Stock shall be entitled to receive any dividends paid or payable on the Series D Preferred Stock with a Series D Record Date before the date such share of Series D Preferred Stock is issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No dividends on the Series D Preferred Stock shall be authorized by the Board of Directors or paid or declared and set apart for payment by the Company at such time as the terms and conditions of any agreement of the Company, including any agreement relating to its indebtedness, prohibit such authorization, payment or setting apart for payment or provide that such authorization, payment or setting apart for payment would constitute a breach

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thereof, or a default thereunder, or if such authorization, payment or setting apart for payment shall be restricted or prohibited by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything contained herein to the contrary, dividends on the Series D Preferred Stock shall accrue with respect to any Series D Dividend Periods whether or not dividends are authorized by the Board of Directors and declared by the Company. No interest or additional dividend shall be payable in respect of any accrued and unpaid dividend on the Series D Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as provided in Section 3(e) below, no dividends shall be declared and paid or set apart for payment and no other distribution of cash or other property may be declared and made, directly or indirectly, on or with respect to shares of Common Stock or shares of any other class or series of equity securities of the Company ranking, with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, on parity with or junior to the Series D Preferred Stock (other than a dividend paid in shares of Common Stock or in shares of any other class or series of equity securities ranking junior to the Series D Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up), nor shall any shares of Common Stock or shares of any other class or series of equity securities of the Company ranking, with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, on parity with or junior to the Series D Preferred Stock be redeemed (or any monies be paid to or made available for a sinking fund for the redemption of any such shares), purchased or otherwise acquired, (except (i) by conversion into or exchange for shares of Common Stock or shares of any other class or series of equity securities of the Company ranking junior to the Series D Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, (ii) for the acquisition of shares made pursuant to the provisions of Section 5.7 of Article V of the Charter and (iii) for the purchase or acquisition of equity securities of the Company ranking on parity with the Series D Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding Series D Preferred Stock and any other shares of any other class or series of equity securities ranking on parity with the Series D Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up), unless full cumulative dividends on the Series D Preferred Stock for all past Series D Dividend Periods shall have been or contemporaneously are declared and paid or declared and a sum sufficient for the payment thereof is set apart for such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) When dividends are not paid in full (or declared and a sum sufficient for such full payment is not so set apart) upon the Series D Preferred Stock and any other class or series of equity securities ranking, with respect to dividend rights, on parity with the Series D Preferred Stock, all dividends (other than any acquisition of shares pursuant to the provisions of Section 5.7 of Article V of the Charter or a purchase or exchange offer made on the same terms to holders of all outstanding shares of Series D Preferred Stock and any such other class or series of equity securities ranking on parity with the Series D Preferred Stock with respect to dividend rights or rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up), declared upon the Series D Preferred Stock and any other class or series of equity securities ranking, with respect to dividend rights, on parity with the Series D Preferred Stock shall be allocated pro rata so that the amount declared per share of Series D Preferred Stock and such other equally ranked classes or series of equity securities shall in all cases bear to each other the same ratio that accrued dividends per share on the Series D Preferred Stock and such other equally ranked class or series of equity securities (which shall not include any accrual in respect of unpaid dividends on such other classes or series of equity securities for prior Series D Dividend Periods if such other class or series of equity securities does not have a cumulative dividend) bear to each other. No interest, or sum of money in lieu of interest, shall be payable in respect of any dividend payment or payments on the Series D Preferred Stock which may be in arrears.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Holders of the Series D Preferred Stock shall not be entitled to any dividend, whether payable in cash, property or stock, in excess of full cumulative dividends on the Series D Preferred Stock as provided herein. Any dividend payment made on the Series D Preferred Stock shall first be credited against the earliest accrued and unpaid dividend.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If, for any taxable year, the Company elects to designate as "capital gain dividends" (as defined in Section 857 of the Code or any successor revenue code or section) any portion (the "Capital Gains Amount") of the total distributions not in excess of the Company's earnings and profits (as determined for United States federal income tax purposes) paid or made available for such taxable year to holders of all classes and series of Stock (the "Total Distributions"), then the portion of the Capital Gains Amount that shall be allocable to holders of Series D Preferred Stock shall be in the same proportion that the Total Distributions paid or made available to the holders of Series D Preferred Stock for such taxable year bears to the Total Distributions for such taxable year made with respect to all classes or series of Stock outstanding.

Section 4. <u>Liquidation Preference</u>.

Upon any voluntary or involuntary liquidation, dissolution or winding-up of the affairs of the Company, before any distribution or payment shall be made to holders of Common Stock or any other class or series of equity securities of the Company ranking, with respect to rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, junior to the Series D Preferred Stock, the holders of shares of Series D Preferred Stock then outstanding shall be entitled to be paid out of the assets of the Company legally available for distribution to its stockholders a liquidation preference of $25.00 per share, plus an amount equal to any accrued and unpaid dividends to, but not including, the date of payment (whether or not declared). If, upon any such voluntary or involuntary liquidation, dissolution or winding-up, the available assets of the Company are insufficient to pay the amount of the distributions payable upon liquidation, dissolution or winding-up of the affairs of the Company, on all outstanding shares of Series D Preferred Stock and the corresponding amounts payable on all shares of other classes or series of securities of the Company ranking, with respect to rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, on parity with the Series D Preferred Stock, the holders of Series D Preferred Stock and each such other class or series of securities ranking, with respect to rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, on parity with the Series D Preferred Stock shall share ratably in any such distribution of assets in proportion to the full liquidating distributions to which they would otherwise be respectively entitled. Written notice of any such voluntary or involuntary liquidation, dissolution or winding up, stating the payment date or dates when, and the place or places where, the amounts distributable in such circumstances shall be payable, shall be given by first-class mail, postage pre-paid, at least 20 days prior to the payment date stated therein, to each record holder of Series D Preferred Stock at the respective addresses of such holders as the same shall appear on the stock transfer records of the Company. After the holders of Series D Preferred Stock have received the full amount of the liquidating distributions to which they are entitled, they will have no right or claim to any of the remaining assets of the Company. The consolidation, conversion or merger of the Company with or into any other person, corporation, trust or entity, or the sale, lease, transfer or conveyance of all or substantially all of the property or business of the Company (whether in connection with a Change of Control or otherwise), shall not be deemed to constitute a liquidation, dissolution or winding-up of the affairs of the Company.

In determining whether any distribution (other than upon voluntary or involuntary dissolution) by dividend, redemption or other acquisition of Shares or otherwise is permitted under the Maryland General Corporation Law, amounts that would be needed, if the Company were to be dissolved at the time of the distribution, to satisfy the preferential rights upon dissolution of the holders of Series D Preferred Stock will not be added to the Company's total liabilities.

Section 5. <u>Optional Redemption</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Series D Preferred Stock shall not be redeemable prior to March 26, 2024, except as provided in Section 5.7 of Article V of the Charter or Section 5(c) or Section 6 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On and after March 26, 2024, the Company, at its option, upon not fewer than 30 nor more than 60 days' written notice as provided in Section 5(e) hereof, may redeem the Series D Preferred Stock, in whole or in part, at any time or from time to time, at a redemption price of $25.00 per share, plus (subject to Section 7(b) hereof) an amount equal to all dividends accrued and unpaid (whether or not declared) thereon to, but not including, the date fixed for redemption, without interest (the "Optional Redemption Right"). If less than all of the outstanding shares

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of Series D Preferred Stock are to be redeemed, the shares of Series D Preferred Stock to be redeemed shall be redeemed *pro rata* (as nearly as may be practicable without creating fractional shares) or by lot. If such redemption is to be by lot, and if, as a result of such redemption, any holder of Series D Preferred Stock would own shares of Series D Preferred Stock in excess of the Aggregate Share Ownership Limit or in violation of any of the other restrictions on ownership and transfer of Shares set forth in Section 5.7 of Article V of the Charter, then, except as otherwise provided in the Charter, the Company will redeem the requisite number of shares of Series D Preferred Stock of such holder such that no holder will violate the Aggregate Share Ownership Limit or any other restrictions on ownership and transfer of Shares set forth in Section 5.7 of Article V of the Charter subsequent to such redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company may redeem all or a part of the Series D Preferred Stock in accordance with the terms and conditions set forth in this Section 5 of these Articles Supplementary at any time and from time to time, whether before or after March 26, 2024, if the Board of Directors determines that such redemption is reasonably necessary for the Company to preserve the status of the Company as a qualified REIT. If the Company calls for redemption any Series D Preferred Stock pursuant to and in accordance with this Section 5(c), then the redemption price for such shares will be an amount in cash equal to $25.00 per share, plus (subject to Section 7(b) hereof) all dividends accrued and unpaid (whether or not declared) thereon to and including the date fixed for redemption, without interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Unless full cumulative dividends on all shares of Series D Preferred Stock shall have been or contemporaneously are declared and paid or declared and a sum sufficient for the payment thereof in cash set apart for payment for all past Series D Dividend Periods, no shares of Series D Preferred Stock shall be redeemed pursuant to this Section 5 unless all outstanding shares of Series D Preferred Stock are simultaneously redeemed and the Company shall not purchase or otherwise acquire directly or indirectly any Series D Preferred Stock (except by exchange for equity securities of the Company ranking junior to the Series D Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up); <u>provided</u>, <u>however</u>, that the foregoing shall not prevent the purchase of the Series D Preferred Stock or any other class or series of equity securities of the Company by the Company in accordance with the terms of Section 5(c) hereof or Section 5.7 of Article V of the Charter or the purchase or acquisition of the Series D Preferred Stock pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding Series D Preferred Stock and the holders of all outstanding shares of any other class or series of preferred stock of the Company ranking on a party with the Series D Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding up.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notice of redemption pursuant to this Section 5 shall be mailed by the Company, postage prepaid, as of a date set by the Company not fewer than 30 nor more than 60 days prior to such redemption date, addressed to the respective holders of record of such shares of Series D Preferred Stock to be redeemed at their respective addresses as they appear on the stock transfer records of the Company. Failure to give such notice or any defect thereto or in the mailing thereof shall not affect the sufficiency of notice or validity of the proceedings for such redemption of any shares of Series D Preferred Stock except as to shares held by a holder to whom notice was defective or not given. A redemption notice which has been mailed in the manner provided herein shall be conclusively presumed to have been duly given on the date mailed whether or not such holder received the redemption notice. In addition to any information required by law or the applicable rules of any exchange upon which Series D Preferred Stock may be listed or admitted to trading, each notice shall state (i) such redemption date; (ii) the redemption price; (iii) the total number of shares of Series D Preferred Stock to be redeemed (and, if less than all the shares held by any holder are to be redeemed, the number of shares to be redeemed from such holder); (iv) the place or places where such shares of Series D Preferred Stock are to be surrendered for payment, together with the certificates, if any, representing such shares (duly endorsed for transfer) and any other documents the Company requires in connection with such redemption; and (v) that dividends on the Series D Preferred Stock to be redeemed shall cease to accrue on such redemption rate.

Section 6. <u>Special Optional Redemption by the Company</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During any period of time (whether before or after March 26, 2024) that both (i) the Series D Preferred Stock is not listed on NASDAQ, the NYSE or the NYSE American and (ii) the Company is not subject to the reporting requirements of the Exchange Act, but any shares of Series D Preferred Stock are outstanding (the occurrence of clauses (i) and (ii) is referred to as a "Delisting Event"), the Company will have the option, upon not fewer than 30 nor more than 60 days' written notice as provided in Section 6(d) hereof, to redeem the outstanding shares of Series D Preferred Stock, in whole but not in part, within 90 days after the occurrence of the Delisting Event, for a redemption price of $25.00 per share, plus (subject to Section 7(b) hereof) an amount equal to all dividends accrued and unpaid (whether or not declared), if any, to, but not including, the redemption date (a "Delisting Event Redemption Right").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, upon the occurrence of a Change of Control, the Company will have the option, upon not fewer than 30 nor more than 60 days' written notice as provided in Section 6(d) hereof, to redeem shares of Series D Preferred Stock, in whole but not in part, within 120 days after the first date on which such Change of Control occurred, for cash at $25.00 per share plus (subject to Section 7(b) hereof) an amount equal to dividends accrued and unpaid (whether or not declared), if any, on the Series D Preferred Stock to, but not including, the redemption date ("Change of Control Redemption Right" and, together with the Delisting Event Redemption Right, the "Special Optional Redemption Rights").

A "Change of Control" occurs when, after the Original Issue Date, the following have occurred and are continuing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the acquisition by any person, including any syndicate or group deemed to be a "person" under Section 13(d)(3) of the Exchange Act of beneficial ownership, directly or indirectly, through a purchase, merger, conversion or other acquisition transaction or series of purchases, mergers, conversions or other acquisition transactions of shares of stock of the Company entitling that person to exercise more than 50% of the total voting power of all outstanding shares of stock of the Company entitled to vote generally in the election of directors (except that such person will be deemed to have beneficial ownership of all securities that such person has the right to acquire, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) following the closing of any transaction referred to in (i) above, neither the Company nor the acquiring or surviving entity, or a parent of the Company or the acquiring or surviving entity, has a class of common equity securities listed on NASDAQ, the NYSE or the NYSE American.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the foregoing, the Company shall not have the right to redeem shares of Series D Preferred Stock upon any Delisting Event occurring in connection with a transaction set forth in clause (i) of the definition of Change of Control unless such Delisting Event also constitutes a Change of Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notice of redemption pursuant to this Section 6 shall be mailed by the Company, postage prepaid, as of a date set by the Company not fewer than 30 nor more than 60 days prior to such redemption date, addressed to the holders of record of the Series D Preferred Stock at their respective addresses as they appear on the stock transfer records of the Company. Failure to give such notice or any defect thereto or in the mailing thereof shall not affect the sufficiency of notice or validity of the proceedings for such redemption of any shares of Series D Preferred Stock except as to a holder to whom notice was defective or not given. A redemption notice which has been mailed in the manner provided herein shall be conclusively presumed to have been duly given on the date mailed whether or not such holder received such redemption notice. In addition to any information required by law or the applicable rules of any exchange upon which Series D Preferred Stock may be listed or admitted to trading, each notice shall state (i) the redemption date; (ii) the redemption price; (iii) the total number of shares of Series D Preferred Stock to be redeemed; (iv) the place or places where such shares of Series D Preferred Stock are to be surrendered for payment, together with the certificates, if any, representing such shares (duly endorsed for transfer) and any other documents the Company requires in connection with such redemption; (v) that the Series D Preferred Stock is being redeemed pursuant to the Delisting Event Redemption Right or the Change of Control Redemption Right, as applicable, in connection with the occurrence of a Delisting Event or a Change of Control, as applicable, and a brief description of the transaction or transactions constituting such Delisting Event or Change of Control, as applicable; (vi) that

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holders of Series D Preferred Stock will not be able to tender shares of Series D Preferred Stock for conversion in connection with the Delisting Event or Change of Control, as applicable, and each share of Series D Preferred Stock tendered for conversion that is selected, prior to the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, for redemption will be redeemed on the related redemption date instead of converted on the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable; and (vii) that dividends on the shares of Series D Preferred Stock to be redeemed will cease to accrue on such redemption date.

Section 7. <u>Additional Provisions Relating to Optional Redemption and Special Optional Redemption by the Company</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If (i) notice of redemption of any shares of Series D Preferred Stock has been given, (ii) the funds necessary for such redemption have been set apart by the Company in trust for the benefit of the holders of any Series D Preferred Stock so called for redemption and (iii) irrevocable instructions have been given to pay the redemption price of $25.00 per share, plus (subject to Section 7(b) hereof) an amount equal to all dividends accrued and unpaid (whether or not declared) to, but not including, the applicable redemption date, then from and after such redemption date, dividends shall cease to accrue on such shares of Series D Preferred Stock, such shares of Series D Preferred Stock shall no longer be outstanding, such shares of Series D Preferred Stock shall not be transferred except with the consent of the Company and all other rights of the holders of such shares will terminate, except the right to receive the redemption price of $25.00 per share, plus (subject to Section 7(b) hereof) an amount equal to any dividends accrued and unpaid (whether or not declared) payable upon such redemption, without interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a redemption date falls after a Series D Record Date and on or prior to the corresponding Series D Payment Date, each holder of shares of Series D Preferred Stock on the Series D Record Date shall be entitled to the dividend payable on such shares on the corresponding Series D Payment Date, notwithstanding such redemption of such shares on or prior to the Series D Payment Date, and each holder of shares of Series D Preferred Stock that are redeemed on such redemption date will be entitled to the dividends, if any, accruing after the end of the Series D Dividend Period to which the Series D Payment Date relates to, but not including, such redemption date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of clause (a)(ii) above, funds shall be deposited in trust with a bank or trust corporation and such deposit shall be irrevocable except that any balance of monies so deposited by the Company and unclaimed by the holders of Series D Preferred Stock entitled thereto at the expiration of two years from the applicable redemption dates shall be repaid, together with any interest or other earnings thereon, to the Company, and after any such repayment, the holders of the shares entitled to the funds so repaid to the Company shall look only to the Company for payment without interest or other earnings.

Section 8. <u>Conversion Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Section 8(j), upon the occurrence of a Delisting Event or a Change of Control, as applicable, each holder of shares of Series D Preferred Stock shall have the right, unless, prior to the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, the Company has provided or provides notice of its election to redeem such shares of Series D Preferred Stock pursuant to the Optional Redemption Right or Special Optional Redemption Rights, to convert some or all of such shares of Series D Preferred Stock held by such holder (with respect to a Delisting Event, the "Delisting Event Conversion Right" and, with respect to a Change of Control, the "Change of Control Conversion Right") on the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, into a number of shares Common Stock per share of Series D Preferred Stock to be converted (the "Common Stock Conversion Consideration") equal to the lesser of (A) the quotient of (i) the sum of $25.00 plus an amount equal to all dividends accrued and unpaid (whether or not declared) on the Series D Preferred Stock to, but not including, the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, (unless such Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, is after a Series D Record Date and prior to the corresponding Series D Payment Date, in which case no additional amount for accrued and unpaid dividends that have been declared and are to be paid on the Series D Payment Date will be included in such sum), divided by (ii) the Common Stock Price and (B) 4.4924 (as adjusted pursuant to the immediately succeeding paragraph, the "Share Cap").

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The Share Cap is subject to *pro rata* adjustments for any stock splits (including those effected pursuant to a Common Stock dividend), subdivisions or combinations (in each case, a "Stock Split") with respect to the Common Stock as follows: the adjusted Share Cap as the result of a Stock Split shall be the number of shares of Common Stock that is equivalent to the product of (i) the Share Cap in effect immediately prior to the Stock Split, multiplied by (ii) a fraction, the numerator of which is the number of shares of Common Stock outstanding after giving effect to the Stock Split and the denominator of which is the number of shares of Common Stock outstanding immediately prior to such Stock Split.

In the case of a Delisting Event or a Change of Control, as applicable, pursuant to, or in connection with, which shares of Common Stock shall be converted into cash, securities or other property or assets (including any combination thereof) (the "Alternative Form Consideration"), a holder of shares of Series D Preferred Stock shall receive upon conversion of such shares of Series D Preferred Stock (subject to the next-following paragraph) the kind and amount of Alternative Form Consideration which such holder would have owned or been entitled to receive had such holder held a number of shares of Common Stock equal to the Common Stock Conversion Consideration immediately prior to the effective time of the Delisting Event or Change of Control, as applicable (the "Alternative Conversion Consideration" and, together with the Common Stock Conversion Consideration, the "Conversion Consideration").

In the event that holders of Common Stock have the opportunity to elect the form of consideration to be received in connection with the Delisting Event or Change of Control, as applicable, the consideration that holders of Series D Preferred Stock shall receive shall be the form of consideration elected by the holders of a plurality of the shares of Common Stock held by stockholders who participate in the election and shall be subject to any limitations to which all holders of Common Stock are subject, including, without limitation, pro rata reductions applicable to any portion of the consideration payable in connection with the Delisting Event or Change of Control, as applicable.

The "Change of Control Conversion Date" with respect to any Change of Control shall be a Business Day fixed by the Board of Directors that is not fewer than 20 days and not more than 35 days after the date on which the Company provides notice of the Change of Control pursuant to Section 8(d). The "Delisting Event Conversion Date" with respect to any Delisting Event shall be a Business Day fixed by the Board of Directors that is not fewer than 20 days and not more than 35 days after the date on which the Company provides notice of such Delisting Event pursuant to Section 8(d).

The "Common Stock Price" for any Change of Control shall be (i) the amount of cash consideration per share of Common Stock, if the consideration to be received in such Change of Control by holders of Common Stock is solely cash, or (ii) the average of the closing prices per share of Common Stock on NASDAQ, the NYSE or the NYSE American (or any other national securities exchange on which Common Stock is then listed) for the ten consecutive trading days immediately preceding, but not including, the effective date of such Change of Control, if the consideration to be received in the Change of Control by holders of Common Stock is other than solely cash. The "Common Stock Price" for any Delisting Event shall be the average of the closing prices per share of Common Stock on NASDAQ, the NYSE or the NYSE American (or any other national securities exchange on which Common Stock is then listed) for the ten consecutive trading days immediately preceding, but not including, the effective date of the Delisting Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No fractional shares of Common Stock shall be issued upon the conversion of the Series D Preferred Stock. In lieu of fractional shares, holders shall be entitled to receive the cash value of the fractional shares based on the Common Stock Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a Change of Control Conversion Date or a Delisting Event Conversion Date (either, a "Conversion Date") falls after a Series D Record Date and on or prior to the corresponding Series D Payment Date, each holder of shares of Series D Preferred Stock at the close of business on the Series D Record Date shall be entitled to the dividend payable on such shares on the corresponding Series D Payment Date, notwithstanding the conversion of such shares on or prior to the Series D Payment Date, and each holder of shares of Series D Preferred Stock that are

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converted on the Conversion Date will be entitled to the dividends, if any, accruing after the end of the Series D Dividend Period to which the Series D Payment Date relates to, but not including, the Conversion Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Within 15 days following the occurrence of a Delisting Event or a Change of Control, as applicable, unless the Company has provided notice of its election to redeem the Series D Preferred Stock pursuant to the Delisting Event Redemption Right or the Change of Control Redemption Right, as applicable, a notice of occurrence of the Delisting Event or the Change of Control, as applicable, describing the resulting Delisting Event Conversion Right or Change of Control Conversion Right, as applicable, shall be delivered to the holders of record of the outstanding shares of Series D Preferred Stock at their addresses as they appear on the Company's stock transfer records. No failure to give the notice or any defect thereto or in the mailing thereof shall affect the validity of the proceedings for the conversion of any share of Series D Preferred Stock except as to the holder to whom notice was defective or not given. Each notice shall state: (i) the events constituting the Delisting Event or the Change of Control, as applicable; (ii) the date of the Delisting Event or the Change of Control, as applicable; (iii) the last date on which the holders of Series D Preferred Stock may exercise their Delisting Event Conversion Right or Change of Control Conversion Right, as applicable; (iv) the method and period for calculating the Common Stock Price; (v) the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable; (vi) that if, prior to the applicable Conversion Date, the Company provides notice of its election to redeem all or any portion of the Series D Preferred Stock, the holders of Series D Preferred Stock will not be able to convert such shares of Series D Preferred Stock called for redemption and such shares of Series D Preferred Stock shall be redeemed on the related redemption date, even if they have already been tendered for conversion pursuant to the Delisting Event Conversion Right or the Change of Control Conversion Right, as applicable; (vii) if applicable, the type and amount of Alternative Conversion Consideration entitled to be received per share of Series D Preferred Stock; (viii) the name and address of the paying agent and the conversion agent (the "Conversion Agent"); and (ix) the procedures that holders of Series D Preferred Stock must follow to exercise the Delisting Event Conversion Right or the Change of Control Conversion Right, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall issue a press release for publication on the Dow Jones & Company, Inc., Business Wire, PR Newswire or Bloomberg Business News (or, if such organizations are not in existence at the time of issuance of such press release, another news or press organization as is reasonably calculated to broadly disseminate the relevant information to the public) containing the information stated in the notice, and post the notice on the Company's website, in any event prior to the opening of business on the first Business Day following any date on which the Company provides notice pursuant to Section 8(d) above to the holders of record of the Series D Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In order to exercise the Delisting Event Conversion Right or the Change of Control Conversion Right, as applicable, a holder of record of shares of Series D Preferred Stock shall be required to deliver, on or before the close of business on the applicable Conversion Date, the certificates, if any, representing any certificated shares of Series D Preferred Stock to be converted, duly endorsed for transfer, together with a completed written conversion notice and any other documents the Company reasonably requires in connection with the conversion, to the Conversion Agent. Such notice shall state: (i) the relevant Delisting Event Conversion Date or Change of Control Conversion Date, as applicable; and (ii) the number of shares of Series D Preferred Stock to be converted. Notwithstanding the foregoing, if such shares of Series D Preferred Stock are held in global form, such notice shall instead comply with applicable procedures of The Depository Trust Company ("DTC").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Holders of the Series D Preferred Stock may withdraw any notice of exercise of a Delisting Event Conversion Right or a Change of Control Conversion Right, as applicable, (in whole or in part) by a written notice of withdrawal delivered to the Conversion Agent prior to the close of business on the Business Day prior to the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable. The notice of withdrawal must state: (i) the number of withdrawn shares of Series D Preferred Stock; (ii) if certificated shares of Series D Preferred Stock have been tendered for conversion and withdrawn, the certificate numbers of the withdrawn certificated shares of Series D Preferred Stock; and (iii) the number of shares of Series D Preferred Stock, if any, which remain subject to the conversion notice. Notwithstanding the foregoing, if such shares of Series D Preferred Stock are held in global form, the notice of withdrawal shall instead comply with applicable procedures of DTC.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Shares of Series D Preferred Stock as to which the Delisting Event Conversion Right or the Change of Control Conversion Right, as applicable, has been properly exercised and for which the conversion notice has not been properly withdrawn shall be converted into the applicable Conversion Consideration on the applicable Delisting Event Conversion Date or Change of Control Conversion Date unless, prior thereto, the Company provides notice of its election to redeem such shares of Series D Preferred Stock, whether pursuant to its Optional Redemption Right or Special Optional Redemption Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company shall deliver the applicable Conversion Consideration no later than the third Business Day following the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Notwithstanding anything to the contrary in this Section 8, no holder of Series D Preferred Stock will be entitled to exercise a Delisting Event Conversion Right or a Change of Control Conversion Right or convert any shares of Series D Preferred Stock into shares of Common Stock to the extent that receipt of shares of Common Stock upon the conversion of such shares of Series D Preferred Stock in accordance with this Section 8 would cause such person or any other person to violate Section 5.7 of Article V of the Charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) In connection with the exercise of any Delisting Event Conversion Right or Change of Control Conversion Right, as applicable, the Company shall comply with all U.S. federal and state securities laws and stock exchange rules in connection with any conversion of shares of Series D Preferred Stock into Conversion Consideration.

Section 9. <u>Voting Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Holders of the Series D Preferred Stock shall not have any voting rights except as set forth in this Section 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Whenever dividends on any outstanding shares of Series D Preferred Stock shall have not been paid for six or more Series D Dividend Periods (whether or not such dividends have been declared or the Series D Dividend Periods are consecutive) (a "Preferred Dividend Default"), the holders of Series D Preferred Stock (and all other classes and series of preferred stock of the Company ranking on parity with the Series D Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding up and upon which like voting rights have been conferred and are exercisable and with which such holders of Series D Preferred Stock are entitled to vote together as a single class, including, without limitation, the Series A Preferred Stock, Series B Preferred Stock and Series E Preferred Stock (the "Parity Preferred")), will have the exclusive power, voting together as a single class, to elect two additional directors (the "Preferred Directors"), at each annual meeting of the Company's stockholders and at any special meeting of the Company's stockholders called for the purpose of electing Preferred Directors (pursuant to Section 9(d) hereof or otherwise), until all dividends accrued and unpaid on outstanding shares of Series D Preferred Stock for all past Series D Dividend Periods and the then-current Series D Dividend Period have been fully paid. Unless the number of the Company's directors has previously been increased pursuant to the terms of any other class or series of Parity Preferred with which such holders of Series D Preferred Stock are entitled to vote together as a single class in the election of Preferred Directors, the number of the Company's directors shall automatically increase by two at such time as holders of Series D Preferred Stock become entitled to vote in the election of the Preferred Directors. Unless shares of Parity Preferred remain outstanding and entitled to vote in the election of Preferred Directors, the term of office of each Preferred Director will terminate, and the number of the Company's directors shall automatically decrease by two, when all accrued and unpaid dividends for all past Series D Dividend Periods and the then-current Series D Dividend Period have been fully paid. If the right of holders of Series D Preferred Stock to elect the Preferred Directors terminates after the record date for determining holders of shares of Series D Preferred Stock entitled to vote in any election of Preferred Directors but before the closing of the polls in such election, holders of shares of Series D Preferred Stock outstanding as of the applicable record date shall not be entitled to vote in the election of any Preferred Directors. The right of holders of Series D Preferred Stock to elect the Preferred Directors shall again vest if and whenever dividends are in arrears for six Series D Dividend Periods, as described above. In no event shall holders of Series D Preferred Stock be entitled to nominate or elect an individual as a Preferred Director, and no individual shall be qualified to be nominated for election or to serve as a Preferred Director, if the individual's

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service as a Preferred Director would cause the Company to fail to satisfy a requirement relating to director independence of any national securities exchange on which any class or series of Stock is listed or otherwise conflict with the Charter or the Company's Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Preferred Directors shall be elected by a plurality of the votes cast in the election of such directors, and each Preferred Director will serve until the next annual meeting of the Company's stockholders and until his or her successor is duly elected and qualifies, or until such director's term of office terminates as set forth in Section 9(b). Any director elected by holders of Series D Preferred Stock and any Parity Preferred, voting together as a single class, may be removed, with or without cause, only by a vote of holders of a majority of the outstanding shares of Series D Preferred Stock and Parity Preferred with which holders of Series D Preferred Stock are entitled to vote together as a single class in the election of Preferred Directors. At any time that holders of Series D Preferred Stock are entitled to vote in the election of the Preferred Directors, such holders shall be entitled to vote in the election of a successor to fill any vacancy on the Board of Directors that results from the removal of a Preferred Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At any time that holders of the Series D Preferred Stock have the right to elect Preferred Directors as described in Section 9(b) hereof but these directors have not been elected, the Company's secretary must call a special meeting of stockholders for the purpose of electing the Preferred Directors upon the written request of the holders of record of 10% of the outstanding shares of Series D Preferred Stock and Parity Preferred with which holders of Series D Preferred Stock are entitled to vote together as a single class with respect to the election of Preferred Directors, unless the request is received more than 45 days and less than 90 days before the date fixed for the next annual meeting of the Company's stockholders at which such vote would otherwise occur, in which case, the Preferred Directors may be elected at either such annual meeting or at a separate special meeting of the Company's stockholders at the Company's discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) So long as any shares of Series D Preferred Stock are outstanding, the approval of holders of at least two-thirds of the outstanding shares of Series D Preferred Stock and any equally-affected class or series of Parity Preferred with which holders of Series D Preferred Stock are entitled to vote together as a single class shall be required to authorize (i) any amendment, alteration, repeal or other change to any provision of the Charter, including the terms of the Series D Preferred Stock (whether by merger, conversion, consolidation, transfer or conveyance of all or substantially all of the Company's assets or otherwise), that would materially and adversely affect the rights, preferences, privileges or voting powers of the Series D Preferred Stock or (ii) the creation, issuance or increase in the authorized number of shares of any class or series of stock ranking senior to the Series D Preferred Stock (or any equity securities convertible into or exchangeable for any such shares, but not including debt securities convertible into or exchangeable for any such shares prior to the time of conversion) with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding up.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The following actions shall not be deemed to materially and adversely affect the rights, preferences, privileges or voting powers of the Series D Preferred Stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any increase or decrease in the number of authorized Shares of any class or series or the classification or reclassification of any unissued Shares, or the creation or issuance of equity securities, of any class or series ranking, junior or on parity with the Series D Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding up, <u>provided</u> that such action does not decrease the number of authorized shares of Common Stock below the number (after giving effect to all other outstanding shares capital stock) necessary to permit the Series D Preferred Stock to be converted in full in accordance with the terms hereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an amendment, alteration, or repeal or other change to any provisions of the Charter, including the terms of the Series D Preferred Stock, as a result of a merger, conversion, consolidation, transfer or conveyance of all or substantially all of the Company's assets or other business combination (an "Event"), (x) if the Series D Preferred Stock (or securities of any successor person or entity to the Company into which the Series D Preferred Stock has been converted) remains outstanding with the terms thereof unchanged in all material respects or the holders of shares of Series D Preferred Stock receive securities of a successor person or entity with substantially

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identical rights as those of Series D Preferred Stock, taking into account that, upon the occurrence of an Event, the Company may not be the surviving entity, or (y) if holders of Series D Preferred Stock shall receive the $25.00 liquidation preference per share of Series D Preferred Stock, plus an amount equal to all accrued and unpaid dividends to, but not including, the date of such Event (other than any declared dividends having a Series D Record Date before the date of such Event and a Series D Payment Date after the date of such Event, which shall be paid as provided in Section 3 above), pursuant to the occurrence of any Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding the foregoing, holders of any Parity Preferred shall not be entitled to vote together as a single class with holders of Series D Preferred Stock on any amendment, alteration, repeal or other change to any provision of the Charter, including the terms of the Series D Preferred Stock, unless such action affects holders of Series D Preferred Stock and such Parity Preferred equally. On any matter in which the Series D Preferred Stock may vote, each share of Series D Preferred Stock shall entitle the holder thereof to cast one vote, except that, in class votes, or in determining the percentage of outstanding shares, when voting together as a single class, with shares of one or more class or series of Parity Preferred, shares of different classes and series shall vote, or such determination shall be made, in proportion to the liquidation preference of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The foregoing voting provisions of this Section 9 shall not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required shall be effected, all outstanding shares of Series D Preferred Stock shall have been redeemed or called for redemption upon proper notice and sufficient funds, in cash, shall have been deposited in trust to effect such redemption, in each case, in accordance with the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as expressly stated herein, the Series D Preferred Stock shall not have any relative, participating, optional or other special voting rights and powers and the consent of the holders thereof shall not be required for the taking of any corporate action, including, without limitation, any merger, conversion or consolidation of the Company or a sale of all or substantially all of the assets of the Company, irrespective of the effect that such merger, conversion or consolidation or sale may have upon the rights, preferences, privileges or voting power of holders of Series D Preferred Stock.

Section 10. <u>Information Rights</u>.

During any period in which the Company is not subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act and any shares of Series D Preferred Stock are outstanding, the Company will (i) transmit by mail or other permissible means under the Exchange Act to all holders of Series D Preferred Stock, as their names and addresses appear in the Company's record books and without cost to such holders, copies of the annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K that the Company would have been required to file with the Securities and Exchange Commission (the "Commission"), pursuant to Section 13 or Section 15(d) of the Exchange Act if the Company were subject thereto (other than any exhibits that would have been required) within 15 days after the respective dates by which the Company would have been required to file these reports with the Commission if it were subject to Section 13 or 15(d) of the Exchange Act and (ii) within 15 days following written request, supply copies of these reports to any prospective holder of Series D Preferred Stock.

Section 11. <u>Conversion</u>.

The Series D Preferred Stock shall not be convertible into any other property or securities of the Company or any other entity, except in accordance with Section 8 hereof and Article V of the Charter.

Section 12. <u>Ranking</u>.

In respect of rights to the payment of dividends and the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company, the Series D Preferred Stock shall rank (i) senior to Common Stock and to all other equity securities issued by the Company, the terms of which expressly provide that such securities rank junior to the Series D Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up; (ii) on parity with Series A Preferred Stock, Series B Preferred Stock, Series E Preferred Stock and all equity securities issued by the

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Company, the terms of which expressly provide that such securities rank on parity with the Series D Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up; and (iii) junior to all equity securities issued by the Company, the terms of which expressly provide that such securities rank senior to the Series D Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up. All the Series D Preferred Stock shall rank equally with one another and shall be identical in all respects.

Section 13. <u>Restrictions on Transfer and Ownership of Stock of the Series D Preferred Stock</u>.

The Series D Preferred Stock is subject to the terms and conditions (including any applicable exceptions and exemptions) of Article V of the Charter.

Section 14. <u>Status of Acquired Shares of Series D Preferred Stock</u>.

All shares of Series D Preferred Stock which shall have been issued and reacquired in any manner by the Company shall be returned to the status of authorized but unissued preferred stock, and may thereafter be classified, reclassified or issued as any series or class of preferred stock.

Section 15. <u>Record Holders</u>.

The Company may deem and treat the record holder of any share of Series D Preferred Stock as the true and lawful owner thereof for all purposes, and the Company shall not be affected by any notice to the contrary. Except as may be otherwise provided by the Board of Directors (and except in connection with a global certificate held by a securities depositary), holders of Series D Preferred Stock are not entitled to certificates representing the Series D Preferred Stock held by them.

Section 16. <u>Sinking Fund</u>.

The Series D Preferred Stock shall not be entitled to the benefits of any retirement or sinking fund.

Section 17. <u>Physical Certificate Request</u>.

Shares of Series D Preferred Stock shall be eligible for the Direct Registration System service offered by DTC and may be represented in the form of uncertificated or certificated shares, provided, however, that any holder of certificated shares of Series D Preferred Stock and, upon request, every holder of uncertificated shares of Series D Preferred Stock, shall be entitled to have a certificate for shares of Series D Preferred Stock signed by, or in the name of, the Company certifying the number of shares owned by such holder.

Section 18. <u>Exclusion of Other Rights</u>.

The Series D Preferred Stock shall not have any preferences or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption other than expressly set forth in the Charter, including the terms of the Series D Preferred Stock.

Section 19. <u>Headings of Subdivisions</u>.

The headings of the various subdivisions hereof are for convenience of reference only and shall not affect the interpretation of any of the provisions hereof.

Section 20. <u>Severability of Provisions</u>.

If any preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of the Series D Preferred Stock set forth in the Charter, including the terms of the Series D Preferred Stock, are invalid, unlawful or incapable of being enforced

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by reason of any rule of law or public policy, all other preferences, conversion or other rights, voting powers, restrictions, limitations as to distributions, qualifications or terms or conditions of redemption of the Series D Preferred Stock set forth in the Charter (including the terms of the Series D Preferred Stock) which can be given effect without the invalid, unlawful or unenforceable provision thereof shall, nevertheless, remain in full force and effect and no preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of the Series D Preferred Stock herein set forth shall be deemed dependent upon any other provision thereof unless so expressed therein.

SECOND: The Series D Preferred Stock has been classified or reclassified, and designated, by the Board of Directors under the authority contained in the Charter. These Articles Supplementary have been approved by the Board of Directors in the manner and by the vote required by law.

THIRD: The undersigned acknowledges the foregoing Articles Supplementary to be the duly authorized corporate act of the Company and, as to all matters or facts required to be verified under oath, hereby acknowledges to the best of his knowledge, information and belief that these matters and facts are true in all material respects and that this statement is made under the penalties for perjury.

[Remainder of page intentionally left blank. Signature page follows.]

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IN WITNESS WHEREOF, the Company has caused these Articles Supplementary to be executed under seal in its name and on its behalf by its Chief Executive Officer and attested to by its Chief Financial Officer on this 8th day of September 2023.

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| | | | |
|:---|:---|:---|:---|
| ATTEST: | ATTEST: | GLOBAL NET LEASE, INC. | GLOBAL NET LEASE, INC. |
| By: | /s/ Christopher Masterson | By: | /s/ James Nelson |
| Name: Christopher Masterson | Name: Christopher Masterson | Name: James Nelson | Name: James Nelson |
| Title: Chief Financial Officer | Title: Chief Financial Officer | Title: Chief Executive Officer | Title: Chief Executive Officer |

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[*Signature Page to Articles Supplementary*]

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**Exhibit D**

**<u>GLOBAL NET LEASE, INC.</u>**

**ARTICLES SUPPLEMENTARY**

**7.375% SERIES E CUMULATIVE REDEEMABLE PERPETUAL PREFERRED STOCK**

**(Liquidation Preference $25.00 per Share)**

Global Net Lease, Inc., a Maryland corporation (the "Company"), hereby certifies to the Maryland State Department of Assessments and Taxation that:

FIRST: Under a power contained in Article V of the charter of the Company (the "Charter"), the Board of Directors of the Company (the "Board"), and a duly authorized committee thereof, by resolutions duly adopted, classified 4,595,175 authorized but unissued shares of preferred stock, par value $0.01 per share, of the Company as shares of a series of preferred stock, designated as 7.375% Series E Cumulative Redeemable Perpetual Preferred Stock (the "Series E Preferred Stock") with the following preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms and conditions of redemption of the Series E Preferred Stock which, upon any restatement of the Charter, shall become part of Article V of the Charter, with any necessary or appropriate renumbering or relettering of the sections or subsections hereof:

**7.375% Series E Cumulative Redeemable Perpetual Preferred Stock**

Section 1. <u>Number of Shares and Designation</u>.

A series of preferred stock of the Company designated as the "7.375% Series E Cumulative Redeemable Perpetual Preferred Stock" is hereby established, and the number of shares constituting such series shall be 4,595,175.

Section 2. <u>Definitions</u>.

"Aggregate Share Ownership Limit" shall have the meaning set forth in Article V of the Charter.

"Alternative Conversion Consideration" shall have the meaning set forth in Section 8(a) hereof.

"Alternative Form Consideration" shall have the meaning set forth in Section 8(a) hereof.

"Board of Directors" shall mean the Board of Directors of the Company or any committee authorized by such Board of Directors to perform any of its responsibilities with respect to the Series E Preferred Stock.

"Business Day" shall mean any day other than a Saturday, a Sunday or a day on which state or federally chartered banking institutions in New York, New York are not required to be open.

"Capital Gains Amount" shall have the meaning set forth in Section 3(g) hereof.

"Change of Control" shall have the meaning set forth in Section 6(b) hereof.

"Change of Control Conversion Date" shall have the meaning set forth in Section 8(a) hereof.

"Change of Control Conversion Right" shall have the meaning set forth in Section 8(a) hereof.

"Change of Control Redemption Right" shall have the meaning set forth in Section 6(b) hereof.

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"Charter" shall mean the charter of the Company.

"Code" shall mean the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp; "Commission" shall have the meaning set forth in Section 10 hereof.

"Common Stock" shall mean the Company's Common Stock, par value $0.01 per share.

"Common Stock Conversion Consideration" shall have the meaning set forth in Section 8(a) hereof.

"Common Stock Price" shall have the meaning set forth in Section 8(a) hereof.

"Company" shall have the meaning set forth in Article I of the Charter.

"Conversion Agent" shall have the meaning set forth in Section 8(d) hereof.

"Conversion Consideration" shall have the meaning set forth in Section 8(a) hereof.

"Conversion Date" shall have the meaning set forth in Section 8(c) hereof.

"Delisting Event" shall have the meaning set forth in Section 6(a) hereof.

"Delisting Event Conversion Date" shall have the meaning set forth in Section 8(a) hereof.

"Delisting Event Conversion Right" shall have the meaning set forth in Section 8(a) hereof.

"Delisting Event Redemption Right" shall have the meaning set forth in Section 6(a) hereof.

"DTC" shall have the meaning set forth in Section 8(f) hereof.

"Event" shall have the meaning set forth in Section 9(f)(ii) hereof.

"Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

"NASDAQ" shall mean the Nasdaq Stock Market or any successor that is a national securities exchange registered under Section 6 of the Exchange Act.

"NYSE" shall mean the New York Stock Exchange or any successor that is a national securities exchange registered under Section 6 of the Exchange Act.

"NYSE American" shall mean the NYSE American LLC or any successor that is a national securities exchange registered under Section 6 of the Exchange Act.

"Optional Redemption Right" shall have the meaning set forth in Section 5(b) hereof.

"Original Issue Date" shall mean the first date on which shares of Series E Preferred Stock are issued.

"Parity Preferred" shall have the meaning set forth in Section 9(b) hereof.

"Preferred Directors" shall have the meaning set forth in Section 9(b) hereof.

"Preferred Dividend Default" shall have the meaning set forth in Section 9(b) hereof.

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"REIT" shall have the meaning set forth in Article IV of the Charter.

"Series A Preferred Stock" shall mean the series of preferred stock, par value $0.01 per share, of the Company designated as 7.25% Series A Cumulative Redeemable Preferred Stock.

"Series B Preferred Stock" shall mean the series of preferred stock, par value $0.01 per share, of the Company designated as 6.875% Series B Cumulative Redeemable Perpetual Preferred Stock .

"Series D Preferred Stock" shall mean the series of preferred stock, par value $0.01 per share, of the Company designated as 7.50% Series D Cumulative Redeemable Perpetual Preferred Stock.

"Series E Dividend Period" shall mean the respective periods commencing on and including January 1, April 1, July 1 and October 1 of each year and ending on and including the day preceding the first day of the next succeeding Series E Dividend Period (other than the initial Series E Dividend Period, which shall commence on July 1, 2023 and end on and include September 30, 2023, and other than the Series E Dividend Period during which any shares of Series E Preferred Stock shall be redeemed pursuant to Section 5 or Section 6 (and that is not a Series E Dividend Period of the type contemplated by Section 7(b)), which, solely with respect to the shares of Series E Preferred Stock being redeemed, shall end on and include the day immediately preceding the redemption date with respect to such shares of Series E Preferred Stock being redeemed).

"Series E Payment Date" shall mean, with respect to each Series E Dividend Period, the fifteenth (15<sup>th</sup>) day of the month following the month in which the Series E Dividend Period has ended (January, April, July and October of each year), commencing on October 15, 2023.

"Series E Preferred Stock" shall mean the series of preferred stock, par value $0.01 per share, of the Company designated as 7.375% Series E Cumulative Redeemable Perpetual Preferred Stock.

"Series E Record Date" shall mean the close of business on the date set by the Board of Directors as the record date for the payment of dividends that is not more than 30 nor fewer than 10 days prior to the applicable Series E Payment Date.

"Shares" shall have the meaning set forth in Article IV of the Charter.

"Share Cap" shall have the meaning set forth in Section 8(a) hereof.

"Special Optional Redemption Rights" shall have the meaning set forth in Section 6(b) hereof.

"Stock Split" shall have the meaning set forth in Section 8(a) hereof.

"Total Distributions" shall have the meaning set forth in Section 3(g) hereof.

Section 3. <u>Dividends and other Distributions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the preferential rights of the holders of any class or series of equity securities of the Company ranking senior to the Series E Preferred Stock with respect to dividend rights, the holders of the then outstanding Series E Preferred Stock shall be entitled to receive, when, as and if authorized by the Board of Directors and declared by the Company, out of funds legally available for the payment of dividends, cumulative cash dividends in the amount of $1.84375 per share each year, which is equivalent to the rate of 7.375% of the $25.00 liquidation preference per share per annum. Such dividends shall accrue and be cumulative from and including July 1, 2023 and shall be payable quarterly in arrears on each Series E Payment Date, commencing October 15, 2023, to all holders of record on the applicable Series E Record Date; <u>provided</u>, <u>however</u>, that if any Series E Payment Date is not a Business Day, the dividend which would otherwise have been payable on such Series E Payment Date may be paid or set apart for payment on the next succeeding Business Day with the same force and effect as if paid or set apart

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on such Series E Payment Date, and no interest or additional dividends or other sums shall accrue on the amount so payable from such Series E Payment Date to such next succeeding Business Day. Holders of record of all shares of Series E Preferred Stock outstanding on the applicable Series E Record Date will be entitled to receive the full dividend paid on the applicable Series E Payment Date even if such shares were not issued and outstanding for the full applicable Series E Dividend Period.

The initial dividend payable on the Series E Preferred Stock will cover the period from and including July 1, 2023 through September 30, 2023 and will be paid on October 15, 2023. The amount of any dividend payable on the Series E Preferred Stock for each full Series E Dividend Period shall be computed by dividing $1.84375 by four (4), regardless of the actual number of days in such full Series E Dividend Period. The amount of any dividend payable on the Series E Preferred Stock for any partial Series E Dividend Period and for the initial Series E Dividend Period shall be prorated and computed on the basis of a 360-day year consisting of twelve 30-day months. Dividends will be payable to holders of record as they appear in the stockholder records of the Company at the close of business on the applicable Series E Record Date. Notwithstanding any provision to the contrary contained herein, the dividend payable on each share of Series E Preferred Stock outstanding on a Series E Record Date shall equal the dividend payable on each other share of Series E Preferred Stock that is outstanding on such Series E Record Date, and no holder of any share of Series E Preferred Stock shall be entitled to receive any dividends paid or payable on the Series E Preferred Stock with a Series E Record Date before the date such share of Series E Preferred Stock is issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No dividends on the Series E Preferred Stock shall be authorized by the Board of Directors or paid or declared and set apart for payment by the Company at such time as the terms and conditions of any agreement of the Company, including any agreement relating to its indebtedness, prohibit such authorization, payment or setting apart for payment or provide that such authorization, payment or setting apart for payment would constitute a breach thereof, or a default thereunder, or if such authorization, payment or setting apart for payment shall be restricted or prohibited by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything contained herein to the contrary, dividends on the Series E Preferred Stock shall accrue with respect to any Series E Dividend Periods whether or not dividends are authorized by the Board of Directors and declared by the Company. No interest or additional dividend shall be payable in respect of any accrued and unpaid dividend on the Series E Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as provided in Section 3(e) below, no dividends shall be declared and paid or set apart for payment and no other distribution of cash or other property may be declared and made, directly or indirectly, on or with respect to shares of Common Stock or shares of any other class or series of equity securities of the Company ranking, with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, on parity with or junior to the Series E Preferred Stock (other than a dividend paid in shares of Common Stock or in shares of any other class or series of equity securities ranking junior to the Series E Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up), nor shall any shares of Common Stock or shares of any other class or series of equity securities of the Company ranking, with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, on parity with or junior to the Series E Preferred Stock be redeemed (or any monies be paid to or made available for a sinking fund for the redemption of any such shares), purchased or otherwise acquired, (except (i) by conversion into or exchange for shares of Common Stock or shares of any other class or series of equity securities of the Company ranking junior to the Series E Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, (ii) for the acquisition of shares made pursuant to the provisions of Section 5.7 of Article V of the Charter and (iii) for the purchase or acquisition of equity securities of the Company ranking on parity with the Series E Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding Series E Preferred Stock and any other shares of any other class or series of equity securities ranking on parity with the Series E Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up), unless full cumulative dividends on the Series E

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Preferred Stock for all past Series E Dividend Periods shall have been or contemporaneously are declared and paid or declared and a sum sufficient for the payment thereof is set apart for such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) When dividends are not paid in full (or declared and a sum sufficient for such full payment is not so set apart) upon the Series E Preferred Stock and any other class or series of equity securities ranking, with respect to dividend rights, on parity with the Series E Preferred Stock, all dividends (other than any acquisition of shares pursuant to the provisions of Section 5.7 of Article V of the Charter or a purchase or exchange offer made on the same terms to holders of all outstanding shares of Series E Preferred Stock and any such other class or series of equity securities ranking on parity with the Series E Preferred Stock with respect to dividend rights or rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up), declared upon the Series E Preferred Stock and any other class or series of equity securities ranking, with respect to dividend rights, on parity with the Series E Preferred Stock shall be allocated pro rata so that the amount declared per share of Series E Preferred Stock and such other equally ranked classes or series of equity securities shall in all cases bear to each other the same ratio that accrued dividends per share on the Series E Preferred Stock and such other equally ranked class or series of equity securities (which shall not include any accrual in respect of unpaid dividends on such other classes or series of equity securities for prior Series E Dividend Periods if such other class or series of equity securities does not have a cumulative dividend) bear to each other. No interest, or sum of money in lieu of interest, shall be payable in respect of any dividend payment or payments on the Series E Preferred Stock which may be in arrears.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Holders of the Series E Preferred Stock shall not be entitled to any dividend, whether payable in cash, property or stock, in excess of full cumulative dividends on the Series E Preferred Stock as provided herein. Any dividend payment made on the Series E Preferred Stock shall first be credited against the earliest accrued and unpaid dividend.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If, for any taxable year, the Company elects to designate as "capital gain dividends" (as defined in Section 857 of the Code or any successor revenue code or section) any portion (the "Capital Gains Amount") of the total distributions not in excess of the Company's earnings and profits (as determined for United States federal income tax purposes) paid or made available for such taxable year to holders of all classes and series of Shares (the "Total Distributions"), then the portion of the Capital Gains Amount that shall be allocable to holders of Series E Preferred Stock shall be in the same proportion that the Total Distributions paid or made available to the holders of Series E Preferred Stock for such taxable year bears to the Total Distributions for such taxable year made with respect to all classes or series of Shares outstanding.

Section 4. <u>Liquidation Preference</u>.

Upon any voluntary or involuntary liquidation, dissolution or winding-up of the affairs of the Company, before any distribution or payment shall be made to holders of Common Stock or any other class or series of equity securities of the Company ranking, with respect to rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, junior to the Series E Preferred Stock, the holders of shares of Series E Preferred Stock then outstanding shall be entitled to be paid out of the assets of the Company legally available for distribution to its stockholders a liquidation preference of $25.00 per share, plus an amount equal to any accrued and unpaid dividends to, but not including, the date of payment (whether or not declared). If, upon any such voluntary or involuntary liquidation, dissolution or winding-up, the available assets of the Company are insufficient to pay the amount of the distributions payable upon liquidation, dissolution or winding-up of the affairs of the Company, on all outstanding shares of Series E Preferred Stock and the corresponding amounts payable on all shares of other classes or series of securities of the Company ranking, with respect to rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, on parity with the Series E Preferred Stock, the holders of Series E Preferred Stock and each such other class or series of securities ranking, with respect to rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up, on parity with the Series E Preferred Stock shall share ratably in any such distribution of assets in proportion to the full liquidating distributions to which they would otherwise be respectively entitled. Written notice of any such voluntary or involuntary liquidation, dissolution or winding up, stating the payment date or dates when, and the place or places where, the amounts distributable in such circumstances shall be payable, shall be given by first-class mail, postage pre-paid, at least 20 days prior to the

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payment date stated therein, to each record holder of Series E Preferred Stock at the respective addresses of such holders as the same shall appear on the stock transfer records of the Company. After the holders of Series E Preferred Stock have received the full amount of the liquidating distributions to which they are entitled, they will have no right or claim to any of the remaining assets of the Company. The consolidation, conversion or merger of the Company with or into any other person, corporation, trust or entity, or the sale, lease, transfer or conveyance of all or substantially all of the property or business of the Company (whether in connection with a Change of Control or otherwise), shall not be deemed to constitute a liquidation, dissolution or winding-up of the affairs of the Company.

In determining whether any distribution (other than upon voluntary or involuntary dissolution) by dividend, redemption or other acquisition of Shares or otherwise is permitted under the Maryland General Corporation Law, amounts that would be needed, if the Company were to be dissolved at the time of the distribution, to satisfy the preferential rights upon dissolution of the holders of Series E Preferred Stock will not be added to the Company's total liabilities.

Section 5. <u>Optional Redemption</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Series E Preferred Stock shall not be redeemable prior to December 18, 2025, except as provided in Section 5.7 of Article V of the Charter or Section 5(c) or Section 6 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On and after December 18, 2025, the Company, at its option, upon not fewer than 30 nor more than 60 days' written notice as provided in Section 5(e) hereof, may redeem the Series E Preferred Stock, in whole or in part, at any time or from time to time, at a redemption price of $25.00 per share, plus (subject to Section 7(b) hereof) an amount equal to all dividends accrued and unpaid (whether or not declared) thereon to, but not including, the date fixed for redemption, without interest (the "Optional Redemption Right"). If less than all of the outstanding shares of Series E Preferred Stock are to be redeemed, the shares of Series E Preferred Stock to be redeemed shall be redeemed *pro rata* (as nearly as may be practicable without creating fractional shares) or by lot. If such redemption is to be by lot, and if, as a result of such redemption, any holder of Series E Preferred Stock would own shares of Series E Preferred Stock in excess of the Aggregate Share Ownership Limit or in violation of any of the other restrictions on ownership and transfer of Shares set forth in Section 5.7 of Article V of the Charter, then, except as otherwise provided in the Charter, the Company will redeem the requisite number of shares of Series E Preferred Stock of such holder such that no holder will violate the Aggregate Share Ownership Limit or any other restrictions on ownership and transfer of Shares set forth in Section 5.7 of Article V of the Charter subsequent to such redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company may redeem all or a part of the Series E Preferred Stock in accordance with the terms and conditions set forth in this Section 5 at any time and from time to time, whether before or after December 18, 2025, if the Board of Directors determines that such redemption is reasonably necessary for the Company to preserve the status of the Company as a qualified REIT. If the Company calls for redemption any Series E Preferred Stock pursuant to and in accordance with this Section 5(c), then the redemption price for such shares will be an amount in cash equal to $25.00 per share, plus (subject to Section 7(b) hereof) an amount equal to all dividends accrued and unpaid (whether or not declared) thereon to and including the date fixed for redemption, without interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Unless full cumulative dividends on all shares of Series E Preferred Stock shall have been or contemporaneously are declared and paid or declared and a sum sufficient for the payment thereof in cash set apart for payment for all past Series E Dividend Periods, no shares of Series E Preferred Stock shall be redeemed pursuant to this Section 5 unless all outstanding shares of Series E Preferred Stock are simultaneously redeemed and the Company shall not purchase or otherwise acquire directly or indirectly any Series E Preferred Stock (except by exchange for equity securities of the Company ranking junior to the Series E Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up); <u>provided</u>, <u>however</u>, that the foregoing shall not prevent the purchase of the Series E Preferred Stock or any other class or series of equity securities of the Company by the Company in accordance with the terms of Section 5(c) hereof or Section 5.7 of Article V of the Charter or the purchase or acquisition of the Series E Preferred Stock pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding Series E Preferred

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Stock and the holders of all outstanding shares of any other class or series of preferred stock of the Company ranking on a party with the Series E Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding up.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notice of redemption pursuant to this Section 5 shall be mailed by the Company, postage prepaid, as of a date set by the Company not fewer than 30 nor more than 60 days prior to such redemption date, addressed to the respective holders of record of such shares of Series E Preferred Stock to be redeemed at their respective addresses as they appear on the stock transfer records of the Company. Failure to give such notice or any defect thereto or in the mailing thereof shall not affect the sufficiency of notice or validity of the proceedings for such redemption of any shares of Series E Preferred Stock except as to shares held by a holder to whom notice was defective or not given. A redemption notice which has been mailed in the manner provided herein shall be conclusively presumed to have been duly given on the date mailed whether or not such holder received the redemption notice. In addition to any information required by law or the applicable rules of any exchange upon which Series E Preferred Stock may be listed or admitted to trading, each notice shall state (i) such redemption date; (ii) the redemption price; (iii) the total number of shares of Series E Preferred Stock to be redeemed (and, if less than all the shares held by any holder are to be redeemed, the number of shares to be redeemed from such holder); (iv) the place or places where such shares of Series E Preferred Stock are to be surrendered for payment, together with the certificates, if any, representing such shares (duly endorsed for transfer) and any other documents the Company requires in connection with such redemption; and (v) that dividends on the Series E Preferred Stock to be redeemed shall cease to accrue on such redemption rate.

Section 6. <u>Special Optional Redemption by the Company</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During any period of time (whether before or after December 18, 2025) that both (i) the Series E Preferred Stock is not listed on NASDAQ, the NYSE or the NYSE American and (ii) the Company is not subject to the reporting requirements of the Exchange Act, but any shares of Series E Preferred Stock are outstanding (the occurrence of clauses (i) and (ii) is referred to as a "Delisting Event"), the Company will have the option, upon not fewer than 30 nor more than 60 days' written notice as provided in Section 6(d) hereof, to redeem the outstanding shares of Series E Preferred Stock, in whole but not in part, within 90 days after the occurrence of the Delisting Event, for a redemption price of $25.00 per share, plus (subject to Section 7(b) hereof) an amount equal to all dividends accrued and unpaid (whether or not declared), if any, to, but not including, the redemption date (a "Delisting Event Redemption Right").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, upon the occurrence of a Change of Control, the Company will have the option, upon not fewer than 30 nor more than 60 days' written notice as provided in Section 6(d) hereof, to redeem shares of Series E Preferred Stock, in whole but not in part, within 120 days after the first date on which such Change of Control occurred, for cash at $25.00 per share plus (subject to Section 7(b) hereof) an amount equal to dividends accrued and unpaid (whether or not declared), if any, on the Series E Preferred Stock to, but not including, the redemption date ("Change of Control Redemption Right" and, together with the Delisting Event Redemption Right, the "Special Optional Redemption Rights").

A "Change of Control" occurs when, after the Original Issue Date, the following have occurred and are continuing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the acquisition by any person, including any syndicate or group deemed to be a "person" under Section 13(d)(3) of the Exchange Act of beneficial ownership, directly or indirectly, through a purchase, merger, conversion or other acquisition transaction or series of purchases, mergers, conversions or other acquisition transactions of shares of stock of the Company entitling that person to exercise more than 50% of the total voting power of all outstanding shares of stock of the Company entitled to vote generally in the election of directors (except that such person will be deemed to have beneficial ownership of all securities that such person has the right to acquire, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) following the closing of any transaction referred to in (i) above, neither the Company nor the acquiring or surviving entity, or a parent of the Company or the acquiring or surviving entity, has a class of common equity securities listed on NASDAQ, the NYSE or the NYSE American.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the foregoing, the Company shall not have the right to redeem shares of Series E Preferred Stock upon any Delisting Event occurring in connection with a transaction set forth in clause (i) of the definition of Change of Control unless such Delisting Event also constitutes a Change of Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notice of redemption pursuant to this Section 6 shall be mailed by the Company, postage prepaid, as of a date set by the Company not fewer than 30 nor more than 60 days prior to such redemption date, addressed to the holders of record of the Series E Preferred Stock at their respective addresses as they appear on the stock transfer records of the Company. Failure to give such notice or any defect thereto or in the mailing thereof shall not affect the sufficiency of notice or validity of the proceedings for such redemption of any shares of Series E Preferred Stock except as to a holder to whom notice was defective or not given. A redemption notice which has been mailed in the manner provided herein shall be conclusively presumed to have been duly given on the date mailed whether or not such holder received such redemption notice. In addition to any information required by law or the applicable rules of any exchange upon which Series E Preferred Stock may be listed or admitted to trading, each notice shall state (i) the redemption date; (ii) the redemption price; (iii) the total number of shares of Series E Preferred Stock to be redeemed; (iv) the place or places where such shares of Series E Preferred Stock are to be surrendered for payment, together with the certificates, if any, representing such shares (duly endorsed for transfer) and any other documents the Company requires in connection with such redemption; (v) that the Series E Preferred Stock is being redeemed pursuant to the Delisting Event Redemption Right or the Change of Control Redemption Right, as applicable, in connection with the occurrence of a Delisting Event or a Change of Control, as applicable, and a brief description of the transaction or transactions constituting such Delisting Event or Change of Control, as applicable; (vi) that holders of Series E Preferred Stock will not be able to tender shares of Series E Preferred Stock for conversion in connection with the Delisting Event or Change of Control, as applicable, and each share of Series E Preferred Stock tendered for conversion that is selected, prior to the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, for redemption will be redeemed on the related redemption date instead of converted on the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable; and (vii) that dividends on the shares of Series E Preferred Stock to be redeemed will cease to accrue on such redemption date.

Section 7. <u>Additional Provisions Relating to Optional Redemption and Special Optional Redemption by the Company</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If (i) notice of redemption of any shares of Series E Preferred Stock has been given, (ii) the funds necessary for such redemption have been set apart by the Company in trust for the benefit of the holders of any Series E Preferred Stock so called for redemption and (iii) irrevocable instructions have been given to pay the redemption price of $25.00 per share, plus (subject to Section 7(b) hereof) an amount equal to all dividends accrued and unpaid (whether or not declared) to, but not including, the applicable redemption date, then from and after such redemption date, dividends shall cease to accrue on such shares of Series E Preferred Stock, such shares of Series E Preferred Stock shall no longer be outstanding, such shares of Series E Preferred Stock shall not be transferred except with the consent of the Company and all other rights of the holders of such shares will terminate, except the right to receive the redemption price of $25.00 per share, plus (subject to Section 7(b) hereof) an amount equal to any dividends accrued and unpaid (whether or not declared) payable upon such redemption, without interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a redemption date falls after a Series E Record Date and on or prior to the corresponding Series E Payment Date, each holder of shares of Series E Preferred Stock on the Series E Record Date shall be entitled to the dividend payable on such shares on the corresponding Series E Payment Date, notwithstanding such redemption of such shares on or prior to the Series E Payment Date, and each holder of shares of Series E Preferred Stock that are redeemed on such redemption date will be entitled to the dividends, if any, accruing after the end of the Series E Dividend Period to which the Series E Payment Date relates to, but not including, such redemption date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of clause (a)(ii) above, funds shall be deposited in trust with a bank or trust corporation and such deposit shall be irrevocable except that any balance of monies so deposited by the Company and unclaimed

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by the holders of Series E Preferred Stock entitled thereto at the expiration of two years from the applicable redemption dates shall be repaid, together with any interest or other earnings thereon, to the Company, and after any such repayment, the holders of the shares entitled to the funds so repaid to the Company shall look only to the Company for payment without interest or other earnings.

Section 8. <u>Conversion Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Section 8(j), upon the occurrence of a Delisting Event or a Change of Control, as applicable, each holder of shares of Series E Preferred Stock shall have the right, unless, prior to the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, the Company has provided or provides notice of its election to redeem such shares of Series E Preferred Stock pursuant to the Optional Redemption Right or Special Optional Redemption Rights, to convert some or all of such shares of Series E Preferred Stock held by such holder (with respect to a Delisting Event, the "Delisting Event Conversion Right" and, with respect to a Change of Control, the "Change of Control Conversion Right") on the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, into a number of shares Common Stock per share of Series E Preferred Stock to be converted (the "Common Stock Conversion Consideration") equal to the lesser of (A) the quotient of (i) the sum of $25.00 plus an amount equal to all dividends accrued and unpaid (whether or not declared) on the Series E Preferred Stock to, but not including, the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, (unless such Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable, is after a Series E Record Date and prior to the corresponding Series E Payment Date, in which case no additional amount for accrued and unpaid dividends that have been declared and are to be paid on the Series E Payment Date will be included in such sum), divided by (ii) the Common Stock Price and (B) 6.605 (as adjusted pursuant to the immediately succeeding paragraph, the "Share Cap").

The Share Cap is subject to *pro rata* adjustments for any stock splits (including those effected pursuant to a Common Stock dividend), subdivisions or combinations (in each case, a "Stock Split") with respect to the Common Stock as follows: the adjusted Share Cap as the result of a Stock Split shall be the number of shares of Common Stock that is equivalent to the product of (i) the Share Cap in effect immediately prior to the Stock Split, multiplied by (ii) a fraction, the numerator of which is the number of shares of Common Stock outstanding after giving effect to the Stock Split and the denominator of which is the number of shares of Common Stock outstanding immediately prior to such Stock Split.

In the case of a Delisting Event or a Change of Control, as applicable, pursuant to, or in connection with, which shares of Common Stock shall be converted into cash, securities or other property or assets (including any combination thereof) (the "Alternative Form Consideration"), a holder of shares of Series E Preferred Stock shall receive upon conversion of such shares of Series E Preferred Stock (subject to the next-following paragraph) the kind and amount of Alternative Form Consideration which such holder would have owned or been entitled to receive had such holder held a number of shares of Common Stock equal to the Common Stock Conversion Consideration immediately prior to the effective time of the Delisting Event or Change of Control, as applicable (the "Alternative Conversion Consideration" and, together with the Common Stock Conversion Consideration, the "Conversion Consideration").

In the event that holders of Common Stock have the opportunity to elect the form of consideration to be received in connection with the Delisting Event or Change of Control, as applicable, the consideration that holders of Series E Preferred Stock shall receive shall be the form of consideration elected by the holders of a plurality of the shares of Common Stock held by stockholders who participate in the election and shall be subject to any limitations to which all holders of Common Stock are subject, including, without limitation, pro rata reductions applicable to any portion of the consideration payable in connection with the Delisting Event or Change of Control, as applicable.

The "Change of Control Conversion Date" with respect to any Change of Control shall be a Business Day fixed by the Board of Directors that is not fewer than 20 days and not more than 35 days after the date on which the Company provides notice of the Change of Control pursuant to Section 8(d). The "Delisting Event Conversion Date" with respect to any Delisting Event shall be a Business Day fixed by the Board of Directors that is not fewer

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than 20 days and not more than 35 days after the date on which the Company provides notice of such Delisting Event pursuant to Section 8(d).

The "Common Stock Price" for any Change of Control shall be (i) the amount of cash consideration per share of Common Stock, if the consideration to be received in such Change of Control by holders of Common Stock is solely cash, or (ii) the average of the closing prices per share of Common Stock on NASDAQ, the NYSE or the NYSE American (or any other national securities exchange on which Common Stock is then listed) for the ten consecutive trading days immediately preceding, but not including, the effective date of such Change of Control, if the consideration to be received in the Change of Control by holders of Common Stock is other than solely cash. The "Common Stock Price" for any Delisting Event shall be the average of the closing prices per share of Common Stock on NASDAQ, the NYSE or the NYSE American (or any other national securities exchange on which Common Stock is then listed) for the ten consecutive trading days immediately preceding, but not including, the effective date of the Delisting Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No fractional shares of Common Stock shall be issued upon the conversion of the Series E Preferred Stock. In lieu of fractional shares, holders shall be entitled to receive the cash value of the fractional shares based on the Common Stock Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) If a Change of Control Conversion Date or a Delisting Event Conversion Date (either, a "Conversion Date") falls after a Series E Record Date and on or prior to the corresponding Series E Payment Date, each holder of shares of Series E Preferred Stock at the close of business on the Series E Record Date shall be entitled to the dividend payable on such shares on the corresponding Series E Payment Date, notwithstanding the conversion of such shares on or prior to the Series E Payment Date, and each holder of shares of Series E Preferred Stock that are converted on the Conversion Date will be entitled to the dividends, if any, accruing after the end of the Series E Dividend Period to which the Series E Payment Date relates to, but not including, the Conversion Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Within 15 days following the occurrence of a Delisting Event or a Change of Control, as applicable, unless the Company has provided notice of its election to redeem the Series E Preferred Stock pursuant to the Delisting Event Redemption Right or the Change of Control Redemption Right, as applicable, a notice of occurrence of the Delisting Event or the Change of Control, as applicable, describing the resulting Delisting Event Conversion Right or Change of Control Conversion Right, as applicable, shall be delivered to the holders of record of the outstanding shares of Series E Preferred Stock at their addresses as they appear on the Company's stock transfer records. No failure to give the notice or any defect thereto or in the mailing thereof shall affect the validity of the proceedings for the conversion of any share of Series E Preferred Stock except as to the holder to whom notice was defective or not given. Each notice shall state: (i) the events constituting the Delisting Event or the Change of Control, as applicable; (ii) the date of the Delisting Event or the Change of Control, as applicable; (iii) the last date on which the holders of Series E Preferred Stock may exercise their Delisting Event Conversion Right or Change of Control Conversion Right, as applicable; (iv) the method and period for calculating the Common Stock Price; (v) the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable; (vi) that if, prior to the applicable Conversion Date, the Company provides notice of its election to redeem all or any portion of the Series E Preferred Stock, the holders of Series E Preferred Stock will not be able to convert such shares of Series E Preferred Stock called for redemption and such shares of Series E Preferred Stock shall be redeemed on the related redemption date, even if they have already been tendered for conversion pursuant to the Delisting Event Conversion Right or the Change of Control Conversion Right, as applicable; (vii) if applicable, the type and amount of Alternative Conversion Consideration entitled to be received per share of Series E Preferred Stock; (viii) the name and address of the paying agent and the conversion agent (the "Conversion Agent"); and (ix) the procedures that holders of Series E Preferred Stock must follow to exercise the Delisting Event Conversion Right or the Change of Control Conversion Right, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall issue a press release for publication on the Dow Jones & Company, Inc., Business Wire, PR Newswire or Bloomberg Business News (or, if such organizations are not in existence at the time of issuance of such press release, another news or press organization as is reasonably calculated to broadly disseminate the relevant information to the public) containing the information stated in the notice, and post the notice on the Company's website, in any event prior to the opening of business on the first Business Day following any date on

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which the Company provides notice pursuant to Section 8(d) above to the holders of record of the Series E Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In order to exercise the Delisting Event Conversion Right or the Change of Control Conversion Right, as applicable, a holder of record of shares of Series E Preferred Stock shall be required to deliver, on or before the close of business on the applicable Conversion Date, the certificates, if any, representing any certificated shares of Series E Preferred Stock to be converted, duly endorsed for transfer, together with a completed written conversion notice and any other documents the Company reasonably requires in connection with the conversion, to the Conversion Agent. Such notice shall state: (i) the relevant Delisting Event Conversion Date or Change of Control Conversion Date, as applicable; and (ii) the number of shares of Series E Preferred Stock to be converted. Notwithstanding the foregoing, if such shares of Series E Preferred Stock are held in global form, such notice shall instead comply with applicable procedures of The Depository Trust Company ("DTC").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Holders of the Series E Preferred Stock may withdraw any notice of exercise of a Delisting Event Conversion Right or a Change of Control Conversion Right, as applicable, (in whole or in part) by a written notice of withdrawal delivered to the Conversion Agent prior to the close of business on the Business Day prior to the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable. The notice of withdrawal must state: (i) the number of withdrawn shares of Series E Preferred Stock; (ii) if certificated shares of Series E Preferred Stock have been tendered for conversion and withdrawn, the certificate numbers of the withdrawn certificated shares of Series E Preferred Stock; and (iii) the number of shares of Series E Preferred Stock, if any, which remain subject to the conversion notice. Notwithstanding the foregoing, if such shares of Series E Preferred Stock are held in global form, the notice of withdrawal shall instead comply with applicable procedures of DTC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Shares of Series E Preferred Stock as to which the Delisting Event Conversion Right or the Change of Control Conversion Right, as applicable, has been properly exercised and for which the conversion notice has not been properly withdrawn shall be converted into the applicable Conversion Consideration on the applicable Delisting Event Conversion Date or Change of Control Conversion Date unless, prior thereto, the Company provides notice of its election to redeem such shares of Series E Preferred Stock, whether pursuant to its Optional Redemption Right or Special Optional Redemption Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company shall deliver the applicable Conversion Consideration no later than the third Business Day following the Delisting Event Conversion Date or the Change of Control Conversion Date, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Notwithstanding anything to the contrary in this Section 8, no holder of Series E Preferred Stock will be entitled to exercise a Delisting Event Conversion Right or a Change of Control Conversion Right or convert any shares of Series E Preferred Stock into shares of Common Stock to the extent that receipt of shares of Common Stock upon the conversion of such shares of Series E Preferred Stock in accordance with this Section 8 would cause such person or any other person to violate Section 5.7 of Article V of the Charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) In connection with the exercise of any Delisting Event Conversion Right or Change of Control Conversion Right, as applicable, the Company shall comply with all U.S. federal and state securities laws and stock exchange rules in connection with any conversion of shares of Series E Preferred Stock into Conversion Consideration.

Section 9. <u>Voting Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Holders of the Series E Preferred Stock shall not have any voting rights except as set forth in this Section 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Whenever dividends on any outstanding shares of Series E Preferred Stock shall have not been paid for six or more Series E Dividend Periods (whether or not such dividends have been declared or the Series E Dividend Periods are consecutive) (a "Preferred Dividend Default"), the holders of Series E Preferred Stock (and all other classes and series of preferred stock of the Company ranking on parity with the Series E Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or

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winding up and upon which like voting rights have been conferred and are exercisable and with which such holders of Series E Preferred Stock are entitled to vote together as a single class, including, without limitation, the Series A Preferred Stock, Series B Preferred Stock and Series D Preferred Stock (the "Parity Preferred")), will have the exclusive power, voting together as a single class, to elect two additional directors (the "Preferred Directors"), at each annual meeting of the Company's stockholders and at any special meeting of the Company's stockholders called for the purpose of electing Preferred Directors (pursuant to Section 9(d) hereof or otherwise), until all dividends accrued and unpaid on outstanding shares of Series E Preferred Stock for all past Series E Dividend Periods and the then-current Series E Dividend Period have been fully paid. Unless the number of the Company's directors has previously been increased pursuant to the terms of any other class or series of Parity Preferred with which such holders of Series E Preferred Stock are entitled to vote together as a single class in the election of Preferred Directors, the number of the Company's directors shall automatically increase by two at such time as holders of Series E Preferred Stock become entitled to vote in the election of the Preferred Directors. Unless shares of Parity Preferred remain outstanding and entitled to vote in the election of Preferred Directors, the term of office of each Preferred Director will terminate, and the number of the Company's directors shall automatically decrease by two, when all accrued and unpaid dividends for all past Series E Dividend Periods and the then-current Series E Dividend Period have been fully paid. If the right of holders of Series E Preferred Stock to elect the Preferred Directors terminates after the record date for determining holders of shares of Series E Preferred Stock entitled to vote in any election of Preferred Directors but before the closing of the polls in such election, holders of shares of Series E Preferred Stock outstanding as of the applicable record date shall not be entitled to vote in the election of any Preferred Directors. The right of holders of Series E Preferred Stock to elect the Preferred Directors shall again vest if and whenever dividends are in arrears for six Series E Dividend Periods, as described above. In no event shall holders of Series E Preferred Stock be entitled to nominate or elect an individual as a Preferred Director, and no individual shall be qualified to be nominated for election or to serve as a Preferred Director, if the individual's service as a Preferred Director would cause the Company to fail to satisfy a requirement relating to director independence of any national securities exchange on which any class or series of Stock is listed or otherwise conflict with the Charter or the Company's Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Preferred Directors shall be elected by a plurality of the votes cast in the election of such directors, and each Preferred Director will serve until the next annual meeting of the Company's stockholders and until his or her successor is duly elected and qualifies, or until such director's term of office terminates as set forth in Section 9(b). Any director elected by holders of Series E Preferred Stock and any Parity Preferred, voting together as a single class, may be removed, with or without cause, only by a vote of holders of a majority of the outstanding shares of Series E Preferred Stock and Parity Preferred with which holders of Series E Preferred Stock are entitled to vote together as a single class in the election of Preferred Directors. At any time that holders of Series E Preferred Stock are entitled to vote in the election of the Preferred Directors, such holders shall be entitled to vote in the election of a successor to fill any vacancy on the Board of Directors that results from the removal of a Preferred Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At any time that holders of the Series E Preferred Stock and any Parity Preferred have the right to elect Preferred Directors as described in Section 9(b) hereof but these directors have not been elected, the Company's secretary must call a special meeting of stockholders for the purpose of electing the Preferred Directors upon the written request of the holders of record of 10% of the outstanding shares of Series E Preferred Stock and Parity Preferred with which holders of Series E Preferred Stock are entitled to vote together as a single class with respect to the election of Preferred Directors, unless the request is received more than 45 days and less than 90 days before the date fixed for the next annual meeting of the Company's stockholders at which such vote would otherwise occur, in which case, the Preferred Directors may be elected at either such annual meeting or at a separate special meeting of the Company's stockholders at the Company's discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) So long as any shares of Series E Preferred Stock are outstanding, the approval of holders of at least two-thirds of the outstanding shares of Series E Preferred Stock and any equally-affected class or series of Parity Preferred with which holders of Series E Preferred Stock are entitled to vote together as a single class shall be required to authorize (i) any amendment, alteration, repeal or other change to any provision of the Charter, including the terms of the Series E Preferred Stock (whether by merger, conversion, consolidation, transfer or conveyance of all or substantially all of the Company's assets or otherwise), that would materially and adversely affect the rights,

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preferences, privileges or voting powers of the Series E Preferred Stock or (ii) the creation, issuance or increase in the number of authorized Shares of any class or series ranking senior to the Series E Preferred Stock (or any equity securities convertible into or exchangeable for any such shares, but not including debt securities convertible into or exchangeable for any such shares prior to the time of conversion) with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding up.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The following actions shall not be deemed to materially and adversely affect the rights, preferences, privileges or voting powers of the Series E Preferred Stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any increase or decrease in the number of authorized Shares of any class or series or the classification or reclassification of any unissued Shares, or the creation or issuance of equity securities, of any class or series ranking, junior or on parity with the Series E Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding up, <u>provided</u> that such action does not decrease the number of authorized shares of Common Stock below the number (after giving effect to all other outstanding shares capital stock) necessary to permit the Series E Preferred Stock to be converted in full in accordance with the terms hereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an amendment, alteration, or repeal or other change to any provisions of the Charter, including the terms of the Series E Preferred Stock, as a result of a merger, conversion, consolidation, transfer or conveyance of all or substantially all of the Company's assets or other business combination (an "Event"), (x) if the Series E Preferred Stock (or securities of any successor person or entity to the Company into which the Series E Preferred Stock has been converted) remains outstanding with the terms thereof unchanged in all material respects or the holders of shares of Series E Preferred Stock receive securities of a successor person or entity with substantially identical rights as those of Series E Preferred Stock, taking into account that, upon the occurrence of an Event, the Company may not be the surviving entity, or (y) if holders of Series E Preferred Stock shall receive the $25.00 liquidation preference per share of Series E Preferred Stock, plus an amount equal to all accrued and unpaid dividends to, but not including, the date of such Event (other than any declared dividends having a Series E Record Date before the date of such Event and a Series E Payment Date after the date of such Event, which shall be paid as provided in Section 3 above), pursuant to the occurrence of any Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding the foregoing, holders of any Parity Preferred shall not be entitled to vote together as a single class with holders of Series E Preferred Stock on any amendment, alteration, repeal or other change to any provision of the Charter, including the terms of the Series E Preferred Stock, unless such action affects holders of Series E Preferred Stock and such Parity Preferred equally. On any matter in which the Series E Preferred Stock may vote, each share of Series E Preferred Stock shall entitle the holder thereof to cast one vote, except that, in class votes, or in determining the percentage of outstanding shares, when voting together as a single class, with shares of one or more class or series of Parity Preferred, shares of different classes and series shall vote, or such determination shall be made, in proportion to the liquidation preference of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The foregoing voting provisions of this Section 9 shall not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required shall be effected, all outstanding shares of Series E Preferred Stock shall have been redeemed or called for redemption upon proper notice and sufficient funds, in cash, shall have been deposited in trust to effect such redemption, in each case, in accordance with the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as expressly stated herein, the Series E Preferred Stock shall not have any relative, participating, optional or other special voting rights and powers and the consent of the holders thereof shall not be required for the taking of any corporate action, including, without limitation, any merger, conversion or consolidation of the Company or a sale of all or substantially all of the assets of the Company, irrespective of the effect that such merger, conversion or consolidation or sale may have upon the rights, preferences, privileges or voting power of holders of Series E Preferred Stock.

Section 10. <u>Information Rights</u>.

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During any period in which the Company is not subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act and any shares of Series E Preferred Stock are outstanding, the Company will (i) transmit by mail or other permissible means under the Exchange Act to all holders of Series E Preferred Stock, as their names and addresses appear in the Company's record books and without cost to such holders, copies of the annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K that the Company would have been required to file with the Securities and Exchange Commission (the "Commission"), pursuant to Section 13 or Section 15(d) of the Exchange Act if the Company were subject thereto (other than any exhibits that would have been required) within 15 days after the respective dates by which the Company would have been required to file these reports with the Commission if it were subject to Section 13 or 15(d) of the Exchange Act and (ii) within 15 days following written request, supply copies of these reports to any prospective holder of Series E Preferred Stock.

Section 11. <u>Conversion</u>.

The Series E Preferred Stock shall not be convertible into any other property or securities of the Company or any other entity, except in accordance with Section 8 hereof and Article V of the Charter.

Section 12. <u>Ranking</u>.

In respect of rights to the payment of dividends and the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company, the Series E Preferred Stock shall rank (i) senior to Common Stock and all other equity securities issued by the Company, the terms of which expressly provide that such securities rank junior to the Series E Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up; (ii) on parity with Series A Preferred Stock, Series B Preferred Stock, Series D Preferred Stock and all equity securities issued by the Company, the terms of which expressly provide that such securities rank on parity with the Series E Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up; and (iii) junior to all equity securities issued by the Company, the terms of which expressly provide that such securities rank senior to the Series E Preferred Stock with respect to dividend rights and rights upon the Company's voluntary or involuntary liquidation, dissolution or winding-up. All the Series E Preferred Stock shall rank equally with one another and shall be identical in all respects.

Section 13. <u>Restrictions on Transfer and Ownership of Stock of the Series E Preferred Stock</u>.

The Series E Preferred Stock is subject to the terms and conditions (including any applicable exceptions and exemptions) of Article V of the Charter.

Section 14. <u>Status of Acquired Shares of Series E Preferred Stock</u>.

All shares of Series E Preferred Stock which shall have been issued and reacquired in any manner by the Company shall be returned to the status of authorized but unissued preferred stock, and may thereafter be classified, reclassified or issued as any series or class of preferred stock.

Section 15. <u>Record Holders</u>.

The Company may deem and treat the record holder of any share of Series E Preferred Stock as the true and lawful owner thereof for all purposes, and the Company shall not be affected by any notice to the contrary. Except as may be otherwise provided by the Board of Directors (and except in connection with a global certificate held by a securities depositary), holders of Series E Preferred Stock are not entitled to certificates representing the Series E Preferred Stock held by them.

Section 16. <u>Sinking Fund</u>.

The Series E Preferred Stock shall not be entitled to the benefits of any retirement or sinking fund.

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Section 17. <u>Physical Certificate Request</u>.

Shares of Series E Preferred Stock shall be eligible for the Direct Registration System service offered by DTC and may be represented in the form of uncertificated or certificated shares, provided, however, that any holder of certificated shares of Series E Preferred Stock and, upon request, every holder of uncertificated shares of Series E Preferred Stock, shall be entitled to have a certificate for shares of Series E Preferred Stock signed by, or in the name of, the Company certifying the number of shares owned by such holder.

Section 18. <u>Exclusion of Other Rights</u>.

The Series E Preferred Stock shall not have any preferences or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption other than expressly set forth in the Charter, including the terms of the Series E Preferred Stock.

Section 19. <u>Headings of Subdivisions</u>.

The headings of the various subdivisions hereof are for convenience of reference only and shall not affect the interpretation of any of the provisions hereof.

Section 20. <u>Severability of Provisions</u>.

If any preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of the Series E Preferred Stock set forth in the Charter, including the terms of the Series E Preferred Stock, are invalid, unlawful or incapable of being enforced by reason of any rule of law or public policy, all other preferences, conversion or other rights, voting powers, restrictions, limitations as to distributions, qualifications or terms or conditions of redemption of the Series E Preferred Stock set forth in the Charter (including the terms of the Series E Preferred Stock) which can be given effect without the invalid, unlawful or unenforceable provision thereof shall, nevertheless, remain in full force and effect and no preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of the Series E Preferred Stock herein set forth shall be deemed dependent upon any other provision thereof unless so expressed therein.

SECOND: The Series E Preferred Stock have been classified or reclassified, and designated, as described in these Articles Supplementary by the Board of Directors under the authority contained in the Charter. These Articles Supplementary have been approved by the Board of Directors in the manner and by the vote required by law.

THIRD: The undersigned acknowledges the foregoing Articles Supplementary to be the duly authorized corporate act of the Company and, as to all matters or facts required to be verified under oath, hereby acknowledges to the best of his knowledge, information and belief that these matters and facts are true in all material respects and that this statement is made under the penalties for perjury.

[Remainder of page intentionally left blank. Signature page follows.]

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IN WITNESS WHEREOF, the Company has caused these Articles Supplementary to be executed under seal in its name and on its behalf by its Chief Executive Officer and attested to by its Chief Financial Officer on this 8th day of September, 2023.

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| | | | |
|:---|:---|:---|:---|
| ATTEST: | ATTEST: | GLOBAL NET LEASE, INC. | GLOBAL NET LEASE, INC. |
| By: | /s/ Christopher Masterson | By: | /s/ James Nelson |
| Name: Christopher Masterson | Name: Christopher Masterson | Name: James Nelson | Name: James Nelson |
| Title: Chief Financial Officer | Title: Chief Financial Officer | Title: Chief Executive Officer | Title: Chief Executive Officer |

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[*Signature Page to Articles Supplementary*]

## Exhibit 31.1

**Exhibit 31.1** 

**CERTIFICATION PURSUANT TO RULE 13a-14(a) AND 15d-14(a) UNDER** 

**THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED**

I, Edward M. Weil, Jr., certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Global Net Lease, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;Dated the 7th day of August, 2025 | /s/ Edward M. Weil, Jr. |
| | Edward M. Weil, Jr. |
| | Chief Executive Officer and President |
| | (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2** 

**CERTIFICATION PURSUANT TO RULE 13a-14(a) AND 15d-14(a) UNDER** 

**THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED**

I, Christopher J. Masterson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Global Net Lease, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;Dated the 7th day of August, 2025 | /s/ Christoper J. Masterson |
| | Christopher J. Masterson |
| | Chief Financial Officer, Treasurer and Secretary |
| | (Principal Financial Officer and Principal Accounting Officer) |

---

## Ex-32

**Exhibit 32** 

**SECTION 1350 CERTIFICATIONS**

This Certificate is being delivered pursuant to the requirements of Section 1350 of Chapter 63 (Mail Fraud) of Title 18 (Crimes and Criminal Procedures) of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

The undersigned, who are the Chief Executive Officer and Chief Financial Officer of Global Net Lease, Inc. (the "Company"), each hereby certify as follows:

The quarterly report on Form 10-Q of the Company, which accompanies this Certificate, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and all information contained in this quarterly report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated the 7th day of August, 2025

---

| |
|:---|
| /s/ Edward M. Weil, Jr. |
| Edward M. Weil, Jr. |
| Chief Executive Officer and President |
| (Principal Executive Officer) |
| /s/ Christopher J. Masterson |
| Christopher J. Masterson |
| Chief Financial Officer, Treasurer and Secretary |
| (Principal Financial Officer and Principal Accounting Officer) |

---

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