•
Jun 30, 2021

Broadstone Net Lease Q2 2021 Earnings Report

Announced second quarter 2021 results, highlighting strategic acquisitions, strong portfolio performance, and tightened AFFO guidance.

Key Takeaways

Broadstone Net Lease reported a successful second quarter, marked by $194.0 million invested in 34 properties, 100% rent collection, and consistent occupancy at 99.7%. The company generated net income of $22.8 million, or $0.14 per share, and AFFO of $52.0 million, or $0.33 per share. They also completed a public follow-on equity offering, issuing 11.5 million common shares for net proceeds of $253.5 million.

Tightened 2021 AFFO guidance range to $1.30 to $1.34 per diluted share.

Invested $194.0 million in 34 properties with a weighted average initial cash cap rate of 6.2%.

Collected 100% of base rents due for the second quarter and maintained occupancy at 99.7%.

Generated net income of $22.8 million, or $0.14 per share, and AFFO of $52.0 million, or $0.33 per share.

Total Revenue
$84.8M
Previous year: $80.4M
+5.5%
EPS
$0.33
Previous year: $1.54
-78.6%
Rent Collection Rate
100%
Previous year: 93%
+7.5%
Leased Occupancy Rate
99.7%
Previous year: 99.5%
+0.2%
Investment Activity
$194M
0
Gross Profit
$80.2M
Previous year: $76.2M
+5.3%
Cash and Equivalents
$79M
Previous year: $9.24M
+754.7%
Free Cash Flow
$47.2M
Previous year: $35.4M
+33.6%
Total Assets
$4.42B
Previous year: $4.14B
+6.7%

Broadstone Net Lease

Broadstone Net Lease

Forward Guidance

The Company has narrowed its guidance range for the 2021 full year and currently expects to report AFFO of between $1.30 and $1.34 per diluted share based on key assumptions.

Positive Outlook

  • Investments in real estate properties between $550 million and $650 million, which has been revised higher.
  • Dispositions of real estate properties between $50 million and $100 million, which is unchanged.
  • Total cash general and administrative expenses between $32 million and $34 million, which has been revised lower.
  • Successful deleveraging of balance sheet.
  • Strong acquisitions pipeline.

Challenges Ahead

  • AFFO per share is sensitive to the timing and amount of real estate acquisitions.
  • AFFO per share is sensitive to the timing and amount of property dispositions.
  • AFFO per share is sensitive to the timing and amount of capital markets activities during the year.
  • General economic conditions.
  • Local real estate conditions.