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Sep 30, 2021
Broadstone Net Lease Q3 2021 Earnings Report
Broadstone Net Lease reported strong third quarter results driven by strategic investments and capital market activities.
Key Takeaways
Broadstone Net Lease announced its Q3 2021 operating results, featuring investments of $225.9 million in 18 properties, a successful $375 million public bond offering, an upgraded credit rating from Moody's, and the establishment of a $400 million ATM program. The company reported net income of $30.5 million, or $0.18 per share, and AFFO of $55.8 million, or $0.33 per share. They also collected 100% of base rents and increased occupancy to 99.8%.
Invested $225.9 million in 18 properties with a 6.5% weighted average initial cash cap rate.
Closed $375 million inaugural 10-year public bond offering at a fixed rate of 2.600%.
Collected 100% of base rents due for the third quarter and increased occupancy 10 basis points to 99.8%.
Generated net income of $30.5 million, or $0.18 per share, and AFFO of $55.8 million, or $0.33 per share.
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
BNL has narrowed its guidance range for the 2021 full year and currently expects to report AFFO of between $1.30 and $1.32 per diluted share.
Positive Outlook
- Investments in real estate properties between $600 million and $700 million, which has been revised higher.
- Dispositions of real estate properties between $100 million and $130 million, which has been revised higher to include the aforementioned early lease termination and corresponding property sale.
- Total cash general and administrative expenses between $31 million and $33 million, which has been revised lower.
- The company is focused on a disciplined and targeted acquisition strategy.
- Active asset management that includes selective sales of properties.
Challenges Ahead
- AFFO per share is sensitive to the timing and amount of real estate acquisitions, property dispositions, and capital markets activities during the year.
- Early termination of a lease with an investment-grade office tenant and corresponding sale of the underlying properties to an unrelated third party.
- Incremental interest expense anticipated from advancing the timing of its inaugural public bond offering.
- Variability in EBITDAre caused by the timing of acquisitions and dispositions can temporarily distort leverage ratios.
- Adjusted EBITDAre and Annualized Adjusted EBITDAre are not measurements of performance under GAAP.
Revenue & Expenses
Visualization of income flow from segment revenue to net income