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Mar 31
Broadstone Net Lease Q1 2025 Earnings Report
Broadstone Net Lease, Inc. reported a decrease in net income but maintained its AFFO per diluted share for the first quarter of 2025.
Key Takeaways
Broadstone Net Lease, Inc. announced its operating results for the first quarter ended March 31, 2025, reporting a net income of $17.5 million, a significant decrease from the prior year, primarily due to a $58.7 million decrease in gain on sale of real estate. However, the company's adjusted funds from operations (AFFO) remained stable at $71.8 million, or $0.36 per diluted share. The company continued its investment activity, deploying $88.3 million into new property acquisitions and build-to-suit developments, and maintained a high leased occupancy rate of 99.1%.
Net income decreased by 74.3% to $17.5 million, or $0.09 per share, primarily due to a $58.7 million decrease in gain on sale of real estate.
Adjusted Funds From Operations (AFFO) remained consistent at $71.8 million, or $0.36 per diluted share.
The company invested $88.3 million in new property acquisitions, build-to-suit developments, and revenue-generating capital expenditures.
Portfolio occupancy remained strong at 99.1% leased, with 99.1% of base rents collected for the quarter.
Broadstone Net Lease
Broadstone Net Lease
Broadstone Net Lease Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
For 2025, Broadstone Net Lease, Inc. expects to report AFFO of between $1.45 and $1.49 per diluted share, which remains unchanged. The guidance is based on anticipated investments in real estate properties between $400 million and $600 million, dispositions between $50 million and $100 million, and total core general and administrative expenses between $30 million and $31 million.
Positive Outlook
- Expected AFFO per diluted share to remain stable between $1.45 and $1.49.
- Anticipated significant investments in real estate properties, ranging from $400 million to $600 million.
- Continued focus on disciplined execution and growth strategy.
- Visibility to embedded revenue growth through 2026 and into 2027.
- Strong balance sheet position to execute growth strategy.
Challenges Ahead
- Per share results are sensitive to the timing and amount of real estate investments.
- Per share results are sensitive to property dispositions.
- Per share results are sensitive to capital markets activities.
- Guidance does not include GAAP net income due to inability to reasonably predict certain items.
- Potential impairments of real estate assets, net gain/loss on dispositions, and stock-based compensation expense are uncertain and could materially impact GAAP results.