Blackwells Capital Reiterates Support for the Combination of Global Net Lease and The Necessity Retail REIT
September 05 2023 - 7:45AM
Business Wire
Blackwells Capital LLC (together with its affiliates,
“Blackwells”), an alternative investment management firm that is a
shareholder of both Global Net Lease, Inc. (NYSE: GNL) (“GNL”) and
The Necessity Retail REIT, Inc. (NASDAQ: RTL) (“RTL”), today
reiterated its support for the companies’ proposed combination.
Jason Aintabi, Chief Investment Officer of Blackwells,
commented:
“Blackwells spent the last year engaging with GNL and RTL to
secure various enhancements, including corporate governance
improvements, that stand to benefit both companies’ shareholders
for years to come. The Special Committees of GNL and RTL, per the
disclosure in the proxies, negotiated multiple internalizations
with the external manager in order to create this valuable
corporate transformation. We estimate this will save the combined
entity more than $75 million annually and give shareholders
best-in-class corporate governance, tremendous scale, synergies,
AFFO accretion, debt reduction and diversification. The internally
managed combination is trading at an implied value of less than
half that of its peer set currently, while we believe the merged
entity will command a premium valuation as the market comes to
understand the strength of a $10 billion REIT platform with all the
attributes above.”
Mr. Aintabi continued:
“Achieving these results cannot come without a cost. We are
focused on a future that we believe promises considerably outsized
returns for shareholders, rather than contemplate continuing to own
two sub-scale, externally managed REITs that do not have the
governance or financial attributes to unlock all the value embedded
within them. A vote against this merger is a vote to maintain the
status quo, which we worked hard to improve. Blackwells will vote
in favor of the merger and related proposals at the Special
Meetings of both GNL and RTL.”
About Blackwells Capital
Blackwells Capital was founded in 2016 by Jason Aintabi, its
Chief Investment Officer. Since that time, it has made investments
in public securities, engaging with management and boards, both
publicly and privately, to help unlock value for stakeholders,
including shareholders, employees and communities. Throughout their
careers, Blackwells’ principals have invested globally on behalf of
leading public and private equity firms and have held operating
roles and served on the boards of media, energy, technology,
insurance and real estate enterprises. For more information, please
visit www.blackwellscap.com.
DISCLAIMER
The views expressed in this press release (the “Press Release”)
represent the opinions of Blackwells and the investment funds it
manages that hold shares in GNL and RTL. The Press Release is for
informational purposes only, and it does not have regard to the
specific investment objective, financial situation, suitability or
particular need of any specific person who may receive the Press
Release, and should not be taken as advice on the merits of any
investment decision. The views expressed in the Press Release
represent the opinions of Blackwells, and are based on publicly
available information and Blackwells’ analyses.
Certain financial information and data used in the Press Release
have been derived or obtained from filings made with the Securities
and Exchange Commission (“SEC”) by GNL and RTL. Blackwells
disclaims any obligation to correct or update the Press Release or
to otherwise provide any additional materials. Blackwells
recognizes that GNL and/or RTL may possess confidential information
that could lead it to disagree with Blackwells’ views and/or
conclusions.
Blackwells currently beneficially owns, and/or has an economic
interest in, shares of GNL and RTL. Blackwells is in the business
of trading—buying and selling—securities. Blackwells may buy or
sell or otherwise change the form or substance of any of its
investments in any manner permitted by law and expressly disclaims
any obligation to notify any recipient of the Press Release of any
such changes. There may be developments in the future that cause
Blackwells to engage in transactions that change its beneficial
ownership and/or economic interest in GNL and/or RTL. The
securities or investment ideas listed are not presented in order to
suggest or show profitability of any or all transactions. There
should be no assumption that any specific portfolio securities
identified and described in the Press Release were or will be
profitable. Under no circumstances is the Press Release to be used
or considered as an offer to sell or a solicitation of an offer to
buy any security.
The information herein contains “forward-looking statements.”
Specific forward-looking statements can be identified by the fact
that they do not relate strictly to historical or current facts and
include, without limitation, words such as “may,” “will,”
“expects,” “believes,” “anticipates,” “plans,” “estimates,”
“projects,” “targets,” “forecasts,” “seeks,” “could,” “should” or
the negative of such terms or other variations on such terms or
comparable terminology. Similarly, statements that describe our
objectives, plans or goals are forward-looking. Forward-looking
statements are subject to various risks and uncertainties and
assumptions. There can be no assurance that any idea or assumption
herein is, or will be proven, correct. If one or more of the risks
or uncertainties materialize, or if Blackwells’ underlying
assumptions prove to be incorrect, the actual results may vary
materially from outcomes indicated by these statements.
Accordingly, forward-looking statements should not be regarded as a
representation by Blackwells that the future plans, estimates or
expectations contemplated will ever be achieved.
The views stated, analysis presented and materials referenced
herein have been prepared by Blackwells alone based on its
independent analysis and have not been independently verified by,
and are not necessarily the views of, RTL or GNL.
PLEASE NOTE: This is NOT a proxy solicitation. Blackwells
is not asking for your proxy card and cannot accept your proxy
card. Please DO NOT send us your proxy card. Executed proxy cards
should be returned according to the instructions.
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Longacre Square Partners Greg Marose / Dan Zacchei, (646)
386-0091 blackwells@longacresquare.com
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