Financial Data and Key Metrics Changes - The company generated AFFO of $71 million or $0.36 per share, representing a year-over-year increase of 5.9% in per-share results, primarily driven by lower interest and G&A expenses [18][19] - The per-share AFFO guidance has been raised to a range of $1.41 to $1.43 for 2024, reflecting improved clarity on estimated results [4][19] - The company ended the quarter with a strong financial position, maintaining a net debt leverage ratio of 4.8 times, down from five times at the end of 2023 [134] Business Line Data and Key Metrics Changes - The healthcare portfolio simplification strategy has successfully reduced healthcare exposure to approximately 13% of ABR as of March 31, 2024, following the sale of 37 healthcare assets for $251.7 million [5][12][123] - The overall portfolio WALT (Weighted Average Lease Term) improved to 10.6 years due to the recent dispositions [123] - Rent collections remained strong at 99.9% excluding Green Valley, with an occupancy rate of 99.2% as of March 31, 2024 [41] Market Data and Key Metrics Changes - The first quarter transaction market represented the lowest single-tenant net lease transaction volume in at least 15 years, indicating a significant misalignment between buyers and sellers [40][119] - The company has invested $202 million year-to-date, with an additional $122 million of investments currently under control, leveraging existing relationships for nearly $150 million of these investments through direct off-market deals [121][123] Company Strategy and Development Direction - The company aims to position itself as an alternative capital provider, focusing on sourcing off-market investments and unique capital allocation opportunities amid constraints on traditional commercial real estate lending [6][14] - The strategy includes a focus on build-to-suit transactions and maintaining a diversified investment approach, particularly in industrial and defensive retail sectors [14][130] - The company is committed to reducing healthcare exposure below 10% of ABR, which will allow for a more balanced portfolio similar to office assets [128] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current challenging environment, emphasizing the importance of operational expertise and creative deal sourcing [122][133] - The company remains vigilant regarding credit risks, particularly in sectors sensitive to discretionary consumer spending, while maintaining strong rent coverage ratios [41][80] - Management is cautiously optimistic about the future, particularly regarding the potential for new tenant leases and the overall health of the portfolio [85][86] Other Important Information - The company approved a $0.29 dividend per common share, marking a 1.8% increase from the previous quarter and a 3.6% increase over the same quarter last year [46] - The company is actively working on a significant retail investment in St. Louis, which is expected to enhance its portfolio [121][129] Q&A Session Summary Question: What is the bad debt assumption in the guidance? - The company started the year with a bad debt assumption of 75 basis points of cash revenue, maintaining this throughout the year, with 15 basis points for the quarter [84] Question: What is the status of Red Lobster in the portfolio? - The company has reduced exposure to Red Lobster from 25 assets to 18, currently representing 1.6% of ABR, and remains cautiously optimistic about its future despite anticipated bankruptcy [85][86] Question: What is the timeline for the remaining healthcare asset sales? - The company is confident it will be below 10% healthcare exposure by the end of the year, with 20% to 25% of sales expected to close in the second half of 2024 [87] Question: How does the company view the current investment environment? - The company is focused on finding direct deals and leveraging relationships, with a strong emphasis on maintaining discipline in capital allocation [137][138] Question: What is the strategy for build-to-suit opportunities? - The company is actively pursuing build-to-suit transactions, viewing them as a significant part of its growth strategy, with a robust pipeline expected to come online in the next 12 to 24 months [49][130]

Portfolio Overview - As of March 31, 2024, the company’s portfolio includes 759 properties, with an annualized base rent (ABR) of $374.1 million[95]. - The portfolio is approximately 99.2% leased, with an ABR weighted average remaining lease term of approximately 10.6 years[95]. - The total rentable square footage of the portfolio is approximately 37.6 million square feet[95]. - Total properties managed by the company amount to 759, with an Annual Base Rent (ABR) of $374,051,000, representing 100% of the total portfolio[101]. - The total square footage of the properties managed is 37,623,000 square feet[101]. - The total number of properties in the U.S. portfolio is 752, with an Annual Base Rent (ABR) of $365,931,000, representing 97.8% of the total portfolio[162]. - The total square footage of the U.S. portfolio is 37,193,000 square feet, with 98.9% of the total portfolio represented[162]. Tenant and Lease Information - Approximately 200 different commercial tenants occupy the properties, with no single tenant accounting for more than 4.3% of the ABR[95]. - Approximately 97.4% of leases have contractual rent escalations, with a minimum increase of 2.0%[95]. - The average annual minimum increase in base rent from lease escalations is 2.0%, with 79.3% of ABR subject to annual escalations[108]. - The top 20 tenants contribute 34% of the total ABR, with a combined ABR of $127,267,000[100]. - The top 10 tenants represent 20.6% of the total ABR, with a combined ABR of $77,212,000[100]. - The company has a diversified tenant base across 38 different industries, with "Other" industries contributing 26.7% of the total ABR[101]. Financial Performance - Net income for the three months ended March 31, 2024, was $68,177,000, an increase of $26,803,000 or 64.8% compared to $41,374,000 for the same period in 2023[121]. - Net earnings per diluted share increased to $0.35, up 66.7% from $0.21 in the prior year[121]. - Total lease revenues for the three months ended March 31, 2024, were $105,366,000, an increase of 0.3% compared to $104,999,000 for the three months ended December 31, 2023[110]. - Total lease revenues, net decreased by $13,626,000 or 11.5% to $105,366,000 for the three months ended March 31, 2024, primarily due to a decrease in lease termination income[121]. - Funds From Operations (FFO) for the three months ended March 31, 2024, was $73,135 thousand, an increase from $69,443 thousand in the previous quarter and a decrease from $81,177 thousand in the same period last year[147]. - Core Funds From Operations (Core FFO) for the three months ended March 31, 2024, was $74,072 thousand, compared to $75,275 thousand in the previous quarter and $74,473 thousand in the same period last year[147]. - Adjusted Funds From Operations (AFFO) for the three months ended March 31, 2024, was $70,873 thousand, slightly down from $71,278 thousand in the previous quarter and up from $67,485 thousand in the same period last year[147]. Impairment and Gains - The impairment charge for the first quarter of 2024 was $26,400,000, resulting from changes in the company's long-term hold strategy and included a $15,200,000 charge on a healthcare property[112]. - The company recognized a gain of $59,132,000 on the sale of 37 properties during the three months ended March 31, 2024, compared to a gain of $6,269,000 on the sale of five properties in the previous quarter[113]. - The company recognized a gain of $59,132,000 on the sale of real estate during the three months ended March 31, 2024, compared to a gain of $3,415,000 in the same period of 2023[119]. Debt and Liquidity - As of March 31, 2024, total debt outstanding was $1.9 billion, with a Net Debt to Annualized Adjusted EBITDAre ratio of 4.8x[127]. - The company had $926.2 million of available capacity under its Revolving Credit Facility as of March 31, 2024[129]. - The company aims to maintain a Leverage Ratio generally less than 6.0x to maximize risk-adjusted returns to stockholders[127]. - The company expects to meet long-term liquidity requirements primarily through borrowings under its Revolving Credit Facility, future debt and equity financings, and limited property sales[132]. - As of March 31, 2024, the total unsecured debt amounts to $1,815,578,000, with $900,000,000 in unsecured term loans and $850,000,000 in senior unsecured notes[134]. - Cash and cash equivalents totaled $222.8 million at March 31, 2024, compared to $19.3 million at March 31, 2023[143]. - The company had net cash used in financing activities of $(73,006,000) for the three months ended March 31, 2024, compared to $(144,739,000) in the same period of 2023[143]. Operating Expenses - Total operating expenses increased by $19,705,000 or 33.1% to $79,264,000 for the three months ended March 31, 2024, driven by higher impairment charges[123]. - Operating expenses billed to tenants decreased to $5,105,000, down 7.4% from $5,513,000 in the previous quarter[110]. - The company reported total operating expenses of $79,264,000 for the three months ended March 31, 2024, a decrease of 6.1% compared to $84,456,000 for the previous quarter[165]. - The company’s general and administrative expenses increased slightly by 0.5% to $9,432,000 compared to the previous quarter[165]. Interest Rate and Currency Risk - The company has 32 interest rate swaps outstanding with an aggregate notional amount of $973.8 million as of March 31, 2024, aimed at managing interest rate risk[142]. - All variable-rate debt was 100% fixed via interest rate swaps as of March 31, 2024, resulting in no effect on annual interest expense from a 1% change in interest rates[174]. - A 1% increase in market interest rates would decrease the fair value of fixed-rate debt by approximately $61.8 million as of March 31, 2024[174]. - A 10% increase or decrease in the exchange rate between the Canadian dollar and USD would result in a corresponding $7.4 million increase or decrease in unrealized foreign currency gain or loss[174].

Maxxa_Satori Broadstone Net Lease, Inc. (NYSE:BNL) is a well-managed and growing industrial-focused real estate investment trust that has considerable potential for FFO expansion in 2024. Broadstone Net Lease is poised to acquire more industrial properties this year, which could fuel the trust’s FFO growth and also lead to yet another dividend hike for shareholders. I think that Broadstone Net Lease is a solid Buy-And-Hold investment, as the trust’s valuation has improved a lot lately. The trust’s stock ...

MarsBars Investing doesn't have to be a popularity contest, and in reality, buying quality names that are temporarily beaten down in price can produce terrific results, especially if they pay a high dividend yield. Such may be the case these days with REITs and income stocks in general, which continue to trade near their 52-week lows despite the broader market indices flying near all-time highs. This brings me to Broadstone Net Lease (NYSE:BNL), which I last covered in May of last year, noting the attractiv ...

kieferpix I can’t say I enjoy talking about my past failures, like how I’ve lost money. But I figure that: It’s the mark of a healthy adult It could keep you from similar failures. If it were completely up to me, of course, I wouldn’t be writing this article at all. Because, if it were completely up to me, I wouldn’t make any mistakes at all. Reality being reality though, I’ve made my fair share of bad calls. Some of them have been innocent, with me making the best possible decision based on the infor ...

RonFullHD We recently bought some Broadstone Net Lease, Inc. (NYSE:BNL). This was a trade by selling Universal Health Realty Income Trust (UHT), another real estate play where we felt the risk-reward had become unattractive. We were looking for defensive plays that would withstand the pricing out of rate cuts from the 2024 roster. At the time, we considered the option of going into Realty Income (O). We last downgraded he monthly dividend company to a hold following a blockbuster rally. It had also pull ...

While making income investments, finding avenues that offer stable inflow even against market fluctuations is similar to discovering hidden treasures. For the perfect blend of reliability and growth, dividend stocks stand tall as fundamental pillars of financial security.Here, the seven dividend stocks listed across diverse sectors present solid prospects for the long term. From the robust real estate ventures of the first one and the second one to the pharmaceutical prowess of the fourth one, these stocks ...

RichHobson/E+ via Getty Images Introduction Count me as one of the people who also think interest rates will be cut sometime soon. When to be exact? No one knows, but I do think we'll get one sometime this year. There's also a chance we can get another increase before cuts as seen by the latest CPI report. So, which one is it? A raise or decrease? Either way rates will eventually decline and when they do, I think investors should be invested in REITs to benefit from their share price appreciation potent ...

Financial Data and Key Metrics Changes - The company reported an AFFO of $1.41 per share for the full year, reflecting a 1.1% year-over-year increase and in line with guidance [29][14] - The company ended the quarter with a net debt leverage of 5 times, slightly up from 4.9 times in the previous quarter [29] - The dividend was maintained at $0.285 per common share, representing a 3.6% increase over the previous year [29] Business Line Data and Key Metrics Changes - The company executed selective dispositions, selling five properties for gross proceeds of $16.5 million at an average cash cap rate of 6.7% in Q4, bringing total disposition proceeds for the year to $200 million at a weighted average cash cap rate of 6% [5][4] - Investment volume for the fourth quarter was $64.1 million, with a full year investment volume of $166 million at a weighted average cash cap rate of 7.2% [5][29] - The company is focusing on simplifying its healthcare portfolio, with plans to sell 75 clinical, surgical, and traditional medical office building assets, reducing healthcare exposure from approximately 17.6% to about 7.5% of ABR [25][26] Market Data and Key Metrics Changes - The company noted a challenging macroeconomic environment characterized by interest rate volatility and muted transaction activity, impacting capital allocation decisions [11][28] - Rent collections remained strong at 99.2% during Q4, with occupancy at 99.4% as of December 31, 2023 [27] Company Strategy and Development Direction - The company is strategically simplifying its portfolio by divesting from complex healthcare assets and focusing on industrial, retail, and restaurant properties [10][25] - The management emphasized a disciplined approach to capital allocation, prioritizing long-term value creation over short-term gains [5][7] - The company aims to redeploy proceeds from asset sales into more stable investment opportunities, particularly in the industrial and defensive retail sectors [33][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for growth opportunities in 2024 and beyond, particularly with the anticipated completion of the UNFI project [7][28] - The management acknowledged the challenges faced in 2023 but believes that the strategic decisions made will position the company for long-term shareholder value [7][11] Other Important Information - The company is actively seeking off-market investment opportunities and unique capital allocation strategies due to constraints in traditional commercial real estate lending [4][33] - The company expects to see some of the healthcare assets sold in 2024, with a focus on achieving optimal disposition outcomes rather than rushing sales [60][61] Q&A Session Summary Question: Can you share any color on the buyer pool for the assets currently under contract? - The company reported a robust buyer pool consisting of dedicated healthcare operators, with no plans to repurpose the assets being sold [15] Question: What is the investment guidance for 2024? - The company plans to be a net acquirer in 2024, depending on market conditions and the resolution of the bid-ask spread [16] Question: How should we think about cap rates on the assets to be sold? - The company expects to sell the healthcare assets at mid to high-7% cap rates, emphasizing a disciplined approach rather than a fire sale [37] Question: What is the expected impact of the UNFI facility on cash flow? - The UNFI facility is expected to start generating rent in Q4 2024, significantly impacting cash flow in 2025 [40] Question: How does the company plan to manage the transition of assets like Red Lobster and Shutterfly? - The company is optimistic about the prospects for both assets, with plans to manage the transition to minimize downtime and maintain value [72]

Broadstone Net Lease, Inc. (BNL) came out with quarterly funds from operations (FFO) of $0.36 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.36 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post FFO of $0.35 per share when it actually produced FFO of $0.36, delivering a surprise of 2.86%.Over the last four quarters, the company has surpassed consensus FFO estimates just once.Broadstone Net Lea ...