Good morning and welcome to the Global Net Lease Second Quarter 2016 Earnings Call. All participants will be in listen-only mode. After today's presentation, there will an opportunity to ask questions. Please note this call is being recorded. I would now like to turn the conference over to Mr. Matthew Furbish, GNL's Director of Investor Relations. Mr. Furbish, the floor is yours, sir.

Thank you, Mike. Good morning, everyone, and thank you for joining us to review Global Net Lease's earnings for the second quarter 2016. With me today is Scott Bowman, GNL's President and Chief Executive Officer, and Tim Salvemini, GNL's Chief Financial Officer, Treasurer and Secretary. This morning's call is being webcast on our website at globalnetlease.com in the Investor Relations section. Before I turn the call over to Scott, I would like to remind everyone that certain statements and assumptions in this earnings call which are not historical facts will be forward-looking and are being made pursuant to the Safe Harbour provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain assumptions and risk factors, which could cause GNL's actual results to differ materially from these forward-looking statements. The risk factors that could cause these differences are more fully discussed in our filings with the SEC. In addition, the forward-looking statements included in this conference call are only made as of the date of this call. As stated in our SEC reports, GNL disclaims any intent or obligation to update or revise these forward-looking statements except as expressly required by law. Finally, all references to per share earnings including funds from operations, core funds from operations and adjusted funds from operations, are on a basic weighted average share basis. Now, I'd like to turn the call over to GNL's CEO, Scott Bowman. Scott?

Thank you, Matt. Good morning everyone and welcome to GNL's second quarter 2016 earnings call. During today's call, I'll review our operating results and highlights for the quarter and provide a portfolio update. Tim will review the details of our financial performance and balance sheet, and then we'll gladly take your questions. Before we begin our discussions regarding Q2, we're very excited to have announced earlier today that GNL will acquire American Realty Capital Global Trust II, or Global II, enhancing our standing as a premier global single-tenant net lease REIT. We expect this to be an accretive transaction and to close before year-end. This brings together two high-quality global portfolios of single-tenant net lease real estate, and enhances GNL's portfolio diversification and scale, as we continue to grow the company. I'll discuss the transaction in greater detail a little later in the call. Turning to our quarterly results, we are happy to report another quarter of solid performance, growing NOI by 8.7% and AFFO by 23.1% over the prior year, driven by our best-in-class portfolio of primarily mission-critical assets leased to investment-grade tenants on long-term leases. In addition, we continue to make progress in fortifying our balance sheet and diversifying our capital stack, which Tim will discuss in greater detail in a few minutes. We're proud to have been included in the Russell 2000 and Russell 3000 indexes on June 24, an important step for the company. This inclusion will broaden GNL's ownership base and provide us the opportunity for increased institutional ownership, all helping to enhance shareholder value. Following our Russell 2000 and 3000 inclusion, we have seen increased daily trading volume as well as an increase in activity with institutional investors, and we look forward to building those relationships and supplementing our original, primarily retail shareholder base.…

Thank you, Scott, and good morning, everyone. The second quarter of 2016 was another strong one for GNL and our portfolio continues to generate strong underlying cash flows. Our financial results for the second quarter include net income attributable to stockholders of $15.8 million, or $0.09 per share on a fully diluted basis; net operating income of $49.7; year-to-year -- year-over-year increase of 8.7%; mainly defined funds from operations of $39.3 million, or $0.23 per share; core funds from operations of $39.4 million, or $0.23 per share; and adjusted funds from operations of $32.4 million, or $0.19 per share, a year-over-year increase of 23.1%. The reconciliation of GAAP net income to the non-GAAP measure can be found starting on Page 8 of our Earnings release, as well as other GAAP financial information. In the second quarter, we maintained our cash distribution at an annualized rate of $0.71 per share resulting in a payout ratio or 94.7% based on our second quarter AFSL [ph]. We continue to make progress in fortifying our balance sheet. As of June 30, the Company had a total combined net debt of $1.1 billion including $513 million of outstanding mortgage debt. Our enterprise value was $2.5 billion based on the June 30 closing price of $7.95, resulting in a net debt to enterprise value of 46%. We remained focus on actively managing our debt which along with impact of FX movement has lowered our annualized net debt to adjusted EBITDA to 6.7 times in Q2 from 7 times in Q1. The company's total combined debt carried weight, weighted average interest rate of 2.6% consisting of 63.7% fixed rate and 36.3% floating rate debt, and an interest rate coverage ratio of 5.2 times. As of June 30, 856 million or 72.1% of our outstanding debt is denominated…

Thank you, Tim. Our diversified real estate portfolio consisted of 329 assets across the U.S. and Western Europe at quarter-end. Key metrics for the portfolio were our occupancy remained at 100%; our highly-diverse portfolio properties are leased to 86 tenants across 36 industries in five countries. Our top ten tenants comprised 36% of our NOI. The property mix based on NOI includes 54% office, 30% industrial and distribution and 15% retail. And our geographic mix was approximately 61% U.S. and 39% in Europe based on NOI. The quality of our tenant basis is fundamental to GNLs long-term success and is a key differentiator for us in the equity markets. As of June 30, 70.1% of our portfolio's NOI was derived from investment-grade or implied investment-grade rated tenants which is amongst the highest in our net lease peer group. Further, at quarter-end, our weighted average remaining lease term was 10.8 years with 88.7% of leases by NOI possessing contractual rent increases which are tied to both, fixed or indexed escalators. GNL continues to employ a unique global strategy, providing the company with some key strategic advantages. These advantages are GNL is a pure play real estate company focused exclusively on equity investments in properties. Our investment strategy affords us the flexibility to invest in the U.S. and in Western Europe. Our portfolio is built on long-duration leases to pre-dominantly investment-grade tenants. We have the ability to access capital markets in both the U.S. and in Europe. Our strong management teams are resident on both sides of the Atlantic. In summary, we are pleased to present another solid quarter of results and remain confident with the steps we've taken to position the company for long-term success. With that in mind, I will like to talk about the transaction we talked this morning…

Thank you, sir. [Operator Instructions] It looks like we do have a question that comes from Lenny Howard of Crown Capital Securities. Please go ahead.

Yes. I was just curious about the stock transaction. 2.1 shares of GNL for every share of GNLII and you believe that to be accretive.

Lenny, thanks. First to put the right number in there; its 2.27 and we do believe it's accretive. You will be seeing a lot more information as we do release it, as we move into the proxy period. The companies who had the financial advisors, the independent directors form special committees and the information that was provided to them would largely be disclosed during the proxy period that you can see the analysis that was done.

Okay. Thank you very much.

[Operator Instructions] Well, at this time we are showing no further questions. This concludes our question-and-answer session. I would now like to turn the conference back over to Mr. Scott Bowman for the closing remarks.

And thanks Mike and I want to thank everyone for joining us today. We will be holding additional calls and webinars in the future and we will also be providing additional information as we move forward. We again are very excited about the transaction we announced this morning and we believe it moves GNL forward in a way that advantages all of our shareholders. We look forward to updating you again on one of those calls or webinars in the very near future and with that I will say have a great day and I will turn it over to Matt.

Thanks Scott and Tim and thank you everyone for joining us today. As always our management team is available to speak with you should you have any follow up questions? If so, please don't hesitate to contact me directly at 911-745-2153. Have a great day.

And we thank you Mr. Furbish and to the rest of the management team for your time also. The conference call is now concluded. Again we thank you all for attending today's presentation. At this time you may disconnect your line. Thank you, take care and have a great day everyone.