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Mar 31, 2023

Broadstone Net Lease Q1 2023 Earnings Report

Broadstone Net Lease announced operating results, highlighting strategic capital allocation and portfolio management.

Key Takeaways

Broadstone Net Lease reported a net income of $41.4 million, or $0.21 per share, and AFFO of $67.5 million, or $0.34 per share, for the quarter ended March 31, 2023. The company invested $20.0 million in three properties and sold six properties for gross proceeds of $94.3 million. They collected 100% of base rents and maintained a 99.4% leased portfolio.

Invested $20.0 million in three properties with a 7.0% weighted average initial cash capitalization rate.

Sold six properties for gross proceeds of $94.3 million at a weighted average cash capitalization rate of 5.4%.

Collected 100% of base rents due for the first quarter.

Portfolio was 99.4% leased based on rentable square footage.

Total Revenue
$119M
Previous year: $93.8M
+26.8%
EPS
$0.34
Previous year: $0.35
-2.9%
Rent Collection Rate
100%
Previous year: 100%
+0.0%
Leased Occupancy Rate
99.4%
Previous year: 99.8%
-0.4%
Investment Activity
$20M
Previous year: $210M
-90.5%
Gross Profit
$113M
Previous year: $88.8M
+27.4%
Cash and Equivalents
$15.4M
Previous year: $54.1M
-71.5%
Free Cash Flow
$58.8M
Previous year: $58.3M
+0.8%
Total Assets
$5.34B
Previous year: $4.85B
+10.0%

Broadstone Net Lease

Broadstone Net Lease

Broadstone Net Lease Revenue by Geographic Location

Forward Guidance

The Company has affirmed its per share guidance range for the 2023 full year and currently expects to report AFFO of between $1.40 and $1.42 per diluted share.

Positive Outlook

  • Investments in real estate properties between $300 million and $500 million, which is unchanged.
  • Dispositions of real estate properties between $150 million and $200 million, which has been revised higher.
  • Total cash general and administrative expenses between $32 million and $34 million, which is unchanged.
  • Company expects to report AFFO of between $1.40 and $1.42 per diluted share.
  • The guidance range is based on the following key assumptions

Challenges Ahead

  • The Company does not provide guidance for the most comparable GAAP financial measure, net income
  • The Company does not provide a reconciliation of the forward-looking non-GAAP financial measure of AFFO to net income computed in accordance with GAAP
  • because it is unable to reasonably predict, without unreasonable efforts, certain items that would be contained in the GAAP measure
  • including items that are not indicative of the Company’s ongoing operations
  • These items are uncertain, depend on various factors, and could have a material impact on the Company’s GAAP results for the guidance periods.

Revenue & Expenses

Visualization of income flow from segment revenue to net income