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Jun 30, 2022

Broadstone Net Lease Q2 2022 Earnings Report

Announced second quarter 2022 results, highlighting investment and capital markets activity, and strong operating results.

Key Takeaways

Broadstone Net Lease announced strong second quarter results, with a focus on diversification through strategic property acquisitions and a solid balance sheet supported by capital markets activity. The company invested $182.4 million in 15 properties and maintained a high portfolio occupancy rate.

Invested $182.4 million in 15 properties with a 6.4% weighted average initial cash capitalization rate.

Collected 100% of base rents due for the second quarter, with portfolio 99.8% leased.

Generated net income of $35.6 million, or $0.20 per share.

Generated adjusted funds from operations (AFFO) of $62.8 million, or $0.35 per share.

Total Revenue
$98M
Previous year: $84.8M
+15.6%
EPS
$0.35
Previous year: $0.33
+6.1%
Rent Collection Rate
100%
Previous year: 100%
+0.0%
Leased Occupancy Rate
99.8%
Previous year: 99.7%
+0.1%
Gross Profit
$93.3M
Previous year: $80.2M
+16.4%
Cash and Equivalents
$16.8M
Previous year: $79M
-78.7%
Free Cash Flow
$41.3M
Previous year: $47.2M
-12.5%
Total Assets
$4.98B
Previous year: $4.42B
+12.6%

Broadstone Net Lease

Broadstone Net Lease

Broadstone Net Lease Revenue by Geographic Location

Forward Guidance

BNL has narrowed its guidance range for the 2022 full year and currently expects to report AFFO of between $1.38 and $1.40 per diluted share.

Positive Outlook

  • Investments in real estate properties between $700 million and $800 million, which is unchanged
  • Dispositions of real estate properties between $75 million and $100 million, which is unchanged
  • Total cash general and administrative expenses between $31 million and $33 million, which is unchanged.
  • Strong balance sheet
  • Significant liquidity position to support defensive growth strategy

Challenges Ahead

  • Incremental interest expense associated with new unsecured term loans
  • Accelerated equity raise during the first half of the year
  • AFFO per share is sensitive to the timing and amount of real estate acquisitions
  • AFFO per share is sensitive to property dispositions
  • AFFO per share is sensitive to capital markets activities during the year

Revenue & Expenses

Visualization of income flow from segment revenue to net income