Michael Weil, president and CEO of Global Net Lease (NYSE: GNL), sat down for a video interview at Nareit’s REITweek: 2026 Investor Conference in New York, June 1-4.
Higher interest rates are reinforcing the importance of disciplined underwriting and creating new acquisition opportunities across the net lease sector, according to Weil.
He said today's higher cost of capital rewards strong management teams while exposing weaker business models, making tenant quality more important than ever.
"When money was so cheap...it covered for a lot of bad decisions," he said. "You don't have that luxury in this market."
Global Net Lease's portfolio is more than 60% leased to investment-grade tenants, providing predictable cash flow through long-term lease agreements. Weil said those leases help the company generate stable income even during periods of economic uncertainty.
"When they sign a 20-year lease, being investment grade, we have every reason to expect them to succeed in their business and occupy and pay rent for the full period of their lease," he said.
Looking ahead, Weil expects refinancing challenges to create attractive buying opportunities as loans originated during the low-interest-rate era mature. He said the company is finding assets it wants to own at more attractive prices while continuing to prioritize experienced corporate management teams and long-term business strategies when evaluating investments.