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Dec 31, 2023

Broadstone Net Lease Q4 2023 Earnings Report

Announced operating results for the year and quarter ended December 31, 2023, and its healthcare portfolio simplification strategy.

Key Takeaways

Broadstone Net Lease reported its Q4 2023 results, highlighting investment activity, operating results, and a healthcare portfolio simplification strategy. The company collected 99.2% of base rents, invested $64.1 million in properties, and sold properties for $16.5 million, achieving a gain over original purchase price.

Invested $64.1 million in three industrial properties and two restaurant properties.

Sold five properties for gross proceeds of $16.5 million, representing a $5.3 million gain over their original purchase price.

Collected 99.2% of base rents due for the fourth quarter.

Generated net income of $6.8 million, or $0.03 per diluted share, and AFFO of $71.3 million, or $0.36 per share.

Total Revenue
$105M
Previous year: $112M
-6.4%
EPS
$0.36
Previous year: $0.36
+0.0%
Rent Collection Rate
99.2%
Previous year: 99.9%
-0.7%
Gross Profit
$99M
Previous year: $106M
-6.4%
Cash and Equivalents
$19.5M
Previous year: $21.8M
-10.5%
Free Cash Flow
$43.8M
Previous year: $48.2M
-9.2%
Total Assets
$5.27B
Previous year: $5.46B
-3.5%

Broadstone Net Lease

Broadstone Net Lease

Forward Guidance

BNL expects to report AFFO of $1.41 per diluted share for 2024, based on investments in real estate properties between $350 million and $700 million, dispositions between $300 million and $500 million, and total cash general and administrative expenses between $32 million and $34 million.

Positive Outlook

  • Investments in real estate properties between $350 million and $700 million.
  • Dispositions of real estate properties between $300 million and $500 million.
  • Focus on core net lease assets in the industrial, retail, and restaurant sectors.
  • Healthcare portfolio simplification strategy to improve portfolio quality.
  • Expected AFFO of $1.41 per diluted share.

Challenges Ahead

  • Sensitivity to the timing and amount of real estate investments and property dispositions.
  • Uncertainty regarding potential impairments of real estate assets.
  • Dependence on general economic conditions and interest rates.
  • Potential material impact from changes in allowance for credit losses.
  • Inability to reasonably predict certain items for GAAP reconciliation.