Good day and welcome to the Global Net Lease Third Quarter 2017 Earnings Call. At this time, all participants will be in listen-only mode. A question-and-answer session will follow the formal presentation. Please note this call is being recorded. Hosing the call today is Jim Nelson, GNL’s President and Chief Executive Officer, Nick Radesca, the Chief Financial Officer through November 15, 2017, Chris Masterson, the successor CFO and current Chief Accounting Officer, and Leland O'Connor [ph], Senior Vice President. I would now turn the call over to Nick Radesca. Please go ahead.

Thank you operator. Good afternoon everyone and thank you for joining us for the Global Net Lease third quarter 2017 Earnings Call. This afternoon’s call is being webcast in the Investor Relations section of GNL's website at www.globalnetlease.com. Before reviewing the forward-looking statements, as retiring CFO I want to express my gratitude and appreciation for my time as CFO of GNL. I'll miss my role and everyone at the company and I wish the company tremendous success in the future. I'll now take care of the formal part of the call and introduce Jim Nelson, GNL’s Chief Executive Officer and Chris Masterson GNL’s newly appointed Chief Financial Officer for a discussion of the quarter's results. The discussion today will include certain statements and assumptions which are not historical facts will be forward-looking and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain assumptions and numerous risk factors that could cause GNL's actual results to differ materially from those forward-looking statements. We refer all of you to our SEC filings for a more detailed discussion of the risk factors that could cause these differences. Any forward-looking statements provided during the conference call are only made as of the date of this call. And as stated in the SEC filings, GNL disclaims any intent or obligation to update or revise these forward-looking statements except as expressly required by law. Also during today's call, we will discuss non-GAAP financial measures, which we believe can be useful in evaluating the company's financial performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available in our earnings release. Let me also apologize for the delay in our press release crossing the Wire this afternoon. It will be available shortly on our website in the Investor Section at www.globalnetlease.com. With that let me turn the call over to our CEO Mr. Jim Nelson.

Thank you Nick and thanks again to everyone for joining our call today. As many of you know Nick Radesca will be stepping down as GNL’s CFO effective November 15. On behalf of the entire team at Global Net Lease we will miss the dedication and leadership he’s brought to our company and we congratulate Nick on his retirement and wish him well. Since assuming my role as CEO of GNL in August of this year, the entire team has been working together to execute on our plans for the balance of 2017, while firming up plans to drive additional growth in 2018. A key component of this effort was to successfully reposition our capital structure and we made meaningful progress on this initiative in the third quarter. I'd like to take a few moments to discuss our portfolio’s performance, our ongoing efforts to transform our capital structure and comment on the current investment environment. After that Chris will speak more granularly about our operating performance for the quarter. Overall GNL had a strong third quarter and our portfolio continued to exhibit the characteristics of being one of the best portfolios in our industry. Total rental revenue increased 1.8% to 61.3 million in the third quarter from 60.2 million in the second quarter. Additionally, rental revenue was up nearly 21% on a full-year basis. The acquisition of ARC Global Trust II that we completed in late December 2016 is contributing to the company and we are very pleased with the quality of income being generated. Adjusted FFO for the quarter came in at 34.9 million, which is an increase of 5.4% year-over-year. Comparing to last quarter adjusted FFO is slightly down partially due to the timing of the recognition of income tax expense which Chris will go into in more…

Thanks Jim. Looking at our results, we reported for the third quarter 2017 rental revenues of 61.3 million, which was up 1.8% from prior quarter and we reported adjusted funds from operations of 34.8 million, which was slightly down 3.7% from prior quarter. Rental revenues increased as we continue to have free rent burn off in three European properties and one US property. The increase in rental revenues is offset by two main drivers. The first being an increase in the current portion of the income tax provision due to a timing difference, which we expect to decrease in subsequent quarter. The second driver is in connection to property management fees, which had previously been weighed. As always, a reconciliation of GAAP net income to the non-GAAP measures can be found starting on page 1 of our earnings release as well as other GAAP financial information. Turning to our balance sheet, we ended the third quarter with net debt of 1.4 billion at a weighted average maturity of 3.1 years and a weighted average interest rate of 2.8% with about three-fourths fixed or swapped fixed. When you include the CMBS that was executed shortly after the quarter, the weighted average maturity increases to 3.9 years, while the weighted average interest rate remains relatively low at approximately 2.8%. The components of our debt at the end of the quarter included $418 million on the credit facility, 227 million on our term loan and 799 million of outstanding gross mortgage debt. Our net debt to annualized adjusted EBITDA improved to 7 times with strong interest coverage ratio of 4.4 times. As of September 30, liquidity is approximately 153 million, comprised of 71 million of cash on hand and 82 million of availability under the credit facility. As we mentioned on our last…

We are excited about the strategic steps we took this quarter to further strengthen GNL’s foundation and to better position the company for future growth. We made good progress in these efforts to build the portfolio. As we move ahead, our focus remains to provide our shareholders with a portfolio that supports sustainable and steady long-term growth. With that operator, we can open the lines for questions.

[Operator Instructions] Our first question comes from David Corak with B. Riley FBR.

I will start with a couple of more specific questions before getting into some high level stuff. Can you just talk about the 60 basis point reduction in occupancy, again add some color there? I think you said it was one tenant, it was oil and gas and how many stores is it, what was the rent you’re getting off of that and what are the plans to kind of fill the vacancy there?

Hey, David. This is Leland O'Connor. It was one property just as you said, it is an oil and gas tenant in Houston that we've been monitoring for a little while, don't have the exact number right in front of me. We can definitely get that to you, but it was just a very small part of the portfolio. We've been monitoring it for a while and don't expect any similar kinds going on.

The monthly rent was actually about $66,000. So it was relatively small.

Okay. And that would fall under which industry type in your sub?

Industrial, David.

It might be other. You can get back to me on that if you need to. No worries.

Well, I’m sorry. I guess I said industrial.

Oh, I’m sorry. I didn’t hear it.

Sorry about that.

No worries. All right. So moving on, I might have missed the exact thing here, but can you talk again about what’s bought during the quarter that’s the property type, sector type and quality?

Sure. During the quarter, we bought one Bridgestone tire asset in New Jersey. As we said, the average cap rate was 7.45, a good amount of rental growth throughout the term. So we felt pretty good about that and then after the quarter, one of the big acquisitions we did was, and it’ a industry, as Jim mentioned a little while ago, they’re a very prominent machining and powder coating company in the Midwest region. So I think that acquisition was somewhere around, it was $12.9 million and three different properties spread on that Midwest region and those are all industrial assets as well.

Okay. And you said you had 45 million under contract as well or is that including that?

That is no. What we have closed during the year is about 55. We've got another 45 under contract right now.

And then a little bit bigger picture, do you have a particular goal in mind Jim for kind of the office, industrial, retail exposure? I guess I was under the impression that the goal would be to kind of reduce office, increase industrial, but just kind of an update on your thoughts there would be helpful.

You're absolutely right and that's what we're doing with the new acquisitions. We're primarily focusing on industrial. So as we execute on these acquisitions, you'll see the percentages in the other sectors coming down.

Okay. And then just turning to kind of the retail property you have now, do you have any plans to kind of change or update your sector exposures there with some portfolio churning going forward?

We're taking a very close look at that right now. We do have a very good portfolio with performing assets, but we are taking a very close look at that right now.

Are there any other, I think in the press release, you said that everyone is paying rent in the retail portfolio, but within the whole portfolio, are there any dark assets or anyone not paying rent at this point?

No. Well, other than the one Axon property.

The one property that we’ve discussed.

And then last one for me, just turning to the balance sheet, the new preferred and the CMBS that certainly help extend maturity schedule, which is very helpful, but also makes your dividend coverage a little bit tighter now, so close to one times, how do you guys view the dividend level on coverage from here? I realize that the typical rate escalators expand and the spreads should improve coverage going forward, but even 1.1 is kind of considered tight. So how are you guys thinking about that going forward?

Well, as you know, we have a very high quality portfolio. And as we expand the portfolio and place and continue the acquisitions and close on these acquisitions, that will bring it down. So I think even though it may be a little bit tight, going forward, I'm sure it's going to ease. And if I could add one quick thing David just, as Jim kind of alluded to earlier, we really took time in the third quarter to build out the optimal capital structure, refinancing the credit facility, doing the preferred, doing the CMBS that we announced a little bit after the quarter, we feel like we're in a really good position right now with the right capital structure to really get aggressive about growth and we -- that's reflected in the pipeline for the fourth quarter which -- and where we're expecting to come in on our acquisition guidance for the year. So as we push out and do get really aggressive in acquisitions for the fourth quarter, as Jim mentioned early in the call, that sets us up for 2018 as well to really build up the portfolio, buy some more assets and really drive that growth to expand on the dividend coverage.

[Operator Instructions] This concludes our question-and-answer session. I’d like to turn the conference back over to Jim Nelson for any closing remarks.

Thank you all for joining us today. We look forward to providing an update at NAREIT coming up as well as our fourth quarter results in the winter. Thank you, everybody.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.