Nicholas Schorsch, a major holder at Global Net Lease (GNL), recently bought 100,000 shares. The buy increased his position by less than 1%, and came to a total cost of $840,000.
This marks the first insider buy at the company over the past two years. Schorsch has been the only seller of shares over the past two years, with about half the sales coming at a lower share price than his most recent buy.
Overall, Global Net Lease insiders own 13.3% of shares.
The commercial property real estate investment trust (REIT) is down 2% over the past year.
The past year has seen commercial real estate struggle, particularly with office locations and retail-related businesses showing ongoing signs of weakness. GNL is no stranger to loss, having lost $287 million lats year, even as revenues jumped 112%.
Even with that weak performance, GNL trades at a 20% discount to its book value, giving it some downside protection.
Action to take: Shares have been trending higher since April, but have pulled back slightly in recent weeks.
REITs are structured to provide high current income, and GNL currently pays a 13.1% dividend, although that may have to come down if earnings don’t improve.
For traders, the overall uptrend is higher. The January 2025 $7.50 calls, are about $1.00 in-the-money. Last trading for about $1.30, the option could see mid double-digit returns from a year-end rally.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.