Broadstone Net Lease Q4 2022 Earnings Report
Key Takeaways
Broadstone Net Lease reported strong Q4 2022 results, with significant investment activity, high rent collection rates, and a well-leased portfolio. The company generated net income of $36.8 million and AFFO of $65.6 million, demonstrating growth over the prior year. With a solid leverage profile and ample liquidity, BNL is positioned to selectively pursue attractive investment opportunities in 2023.
Invested $310.3 million at a weighted average initial cash capitalization rate of 6.7%.
Collected 99.9% of base rents due for the fourth quarter.
Portfolio was 99.4% leased based on rentable square footage.
Generated net income of $36.8 million, or $0.20 per share, representing 5.3% growth over the prior year.
Broadstone Net Lease
Broadstone Net Lease
Forward Guidance
For 2023, BNL expects to report AFFO of between $1.40 and $1.42 per diluted share. The guidance range is based on the following key assumptions: (i)investments in real estate properties between $300 million and $500 million; (ii)dispositions of real estate properties between $100 million and $150 million; and (iii)total cash general and administrative expenses between $32 million and $34 million.
Positive Outlook
- Investments in real estate properties between $300 million and $500 million
- Disciplined and targeted acquisition strategy
- Active asset management
- Selective sales of properties
- Prudent real estate underwriting
Challenges Ahead
- Dispositions of real estate properties between $100 million and $150 million
- Total cash general and administrative expenses between $32 million and $34 million.
- Per share results are sensitive to both the timing and amount of real estate investments, property dispositions, and capital markets activities that occur throughout the year.
- Potential impairments of real estate assets
- Uncertainties regarding future distributions to stockholders