In This Article:
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AFFO per Share: $1.43 for 2024, a 1.4% increase compared to 2023.
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Portfolio Leased Rate: More than 99% leased.
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Rent Collection: More than 99% rent collection.
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Total Investments: Over $400 million executed in 2024.
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Build-to-Suit Developments: $227.3 million with initial cash yields in the mid- to high 7% range.
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2025 AFFO Guidance: $1.45 to $1.49 per share, approximately 3% growth at the midpoint.
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Investment Activity 2024: $404.8 million total, including $234.3 million in new property acquisitions.
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Dispositions 2024: 58 properties sold for $364 million.
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Lease Rollovers 2024: 7 executed, 112% weighted average recapture rate.
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Core G&A Expenses: $29.3 million for the year.
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Pro Forma Leverage: 4.9x net debt.
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Dividend: $0.29 per common share and OP unit.
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2025 Investment Volume Guidance: $400 million to $600 million.
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2025 Disposition Volume Guidance: $50 million to $100 million.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Broadstone Net Lease Inc (NYSE:BNL) achieved $1.43 of AFFO per share, reaching the top end of their guidance range.
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The company maintained a portfolio that is more than 99% leased with over 99% rent collection.
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BNL executed over $400 million in total investments and completed their clinical healthcare portfolio simplification strategy.
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The company has a strong pipeline of new investments, including $103.5 million of acquisitions under control and $227.3 million of build-to-suit developments.
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BNL's build-to-suit development strategy offers attractive yields, with straight-line yields in the mid- to high 8% range, providing a powerful tool for long-term growth.
Negative Points
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BNL is facing incremental pockets of credit risk, particularly in consumer-centric industries and some clinical healthcare properties.
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The company is navigating the Zips Car Wash bankruptcy, which involves 10 sites under master leases, accounting for 62 basis points of ABR.
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There is a disconnect between pricing expectations and the quality of opportunities in the regular transaction market, making it competitive.
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BNL's guidance includes 125 basis points of bad debt for 2025, indicating potential challenges in tenant creditworthiness.
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The company does not plan to raise equity in 2025, relying instead on accretive dispositions, which may limit flexibility in funding growth.
Q & A Highlights
Q: Your $400 million to $600 million of investment guidance, is that money out the door? Or is that deals that actually contribute net rents? A: (John Moragne, CEO) That's money out the door. It includes both regular way deals that will contribute net rent today and investments in our build-to-suit program.