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Mar 31, 2020
Broadstone Net Lease Q1 2020 Earnings Report
Broadstone Net Lease's first quarter results for 2020 were reported, and an update on the impacts of the COVID-19 pandemic was provided.
Key Takeaways
Broadstone Net Lease, Inc. reported a revenue increase of 14.3% and an AFFO increase of 20.2% compared to Q1 2019. The company successfully completed the internalization of its management functions. Rent collection remained strong at approximately 98%, with a portfolio that is greater than 99% leased. However, the COVID-19 pandemic has led to tenant requests for rent relief, which the company is addressing on a case-by-case basis.
Revenues increased by 14.3% and adjusted funds from operations (AFFO) increased by 20.2% compared to the three months ended March 31, 2019.
Sold 10 properties for net proceeds of $35.4 million, recognizing a gain of $7.6 million above net book value.
Maintained strong portfolio metrics, including collection of approximately 98% of rents due and a greater than 99% leased portfolio (based on rentable square footage).
Completed on February 7, 2020, the internalization of the external management functions.
Broadstone Net Lease
Broadstone Net Lease
Broadstone Net Lease Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.comCanada Revenue
CapyFin.com Forward Guidance
The company continues to monitor the impact of the COVID-19 pandemic and its associated economic and market disruptions on its business, including its results of operations, liquidity and capital resources, and stockholder value. The most direct impact of the pandemic has manifested itself in the form of tenant requests for potential rent relief.
Positive Outlook
- Safeguarding stockholder value.
- Mitigating portfolio risk by preserving or enhancing our standing and contractual rights under our leases.
- Working with our tenants on rent deferrals, where appropriate, to help them through the current economic disruption.
- Disciplined and rigorous analysis and review process.
- Tenants requesting rent relief are required to answer certain questions and respond to a formal information request, with the aim of providing us with sufficient additional information to assess the tenant’s current financial health and liquidity and provide the appropriate context for the requested relief.
Challenges Ahead
- Rental rates
- Property dispositions
- Lease renewals and occupancy
- Acquisition volume
- Net lease terms
Revenue & Expenses
Visualization of income flow from segment revenue to net income