Broadstone Net Lease (BNL) has released a promising first-quarter performance for 2025, characterized by robust investment activity and a resilient portfolio. Despite facing a challenging macroeconomic environment, the company has continued to thrive by maintaining a strong investment pipeline.
The company's strategy emphasizes building and sustaining relationships within key middle market industries. This focus is supported by effective capital market operations, which have bolstered Broadstone's ability to execute its investment strategies successfully.
Overall, Broadstone Net Lease's early results in 2025 suggest a solid foundation for future growth as it navigates potential economic fluctuations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Essential Properties Realty Trust Inc (EPRT, Financial) is $35.89 with a high estimate of $40.00 and a low estimate of $32.00. The average target implies an upside of 11.82% from the current price of $32.10. More detailed estimate data can be found on the Essential Properties Realty Trust Inc (EPRT) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, Essential Properties Realty Trust Inc's (EPRT, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Essential Properties Realty Trust Inc (EPRT, Financial) in one year is $34.95, suggesting a upside of 8.88% from the current price of $32.1. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Essential Properties Realty Trust Inc (EPRT) Summary page.
Key Business Developments
Release Date: February 13, 2025
- Investments: $333 million invested through 37 transactions at an 8% weighted average cash yield.
- Average Lease Term: 17.7 years with a 2% annual rent escalation.
- Dispositions: Sold 24 properties for $60.4 million in net proceeds at a 7.0% weighted average cash yield.
- AFFO Per Share: $0.45, a 7% increase from Q4 2023.
- Total AFFO: $81.8 million, up 22% from the same period in 2023.
- Total G&A Expenses: $8.5 million, compared to $7.3 million in Q4 2023.
- Recurring Cash G&A: 4.8% of total revenue for the quarter.
- Cash Dividend: $0.295 with an AFFO payout ratio of 66%.
- Retained Free Cash Flow: $30.6 million in Q4, over $120 million annually.
- Income-Producing Gross Assets: $6 billion at quarter end.
- Forward Equity Sales: $79 million of stock sold on a forward basis at $32.01 per share.
- Net Debt to Annualized Adjusted EBITDAre: 3.8x at quarter end.
- Senior Unsecured Credit Facility: Amended to $2.3 billion with a $1 billion upsized revolver.
- 2025 AFFO Guidance: $1.85 to $1.89 per share, implying over 7% growth at the midpoint.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Essential Properties Realty Trust Inc (EPRT, Financial) invested $333 million in the fourth quarter through 37 transactions, maintaining a strong investment pace.
- The company achieved an AFFO per share of $0.45, marking a 7% increase compared to Q4 2023.
- Tenant concentration is low, with the largest tenant representing only 4.2% of ABR, enhancing risk diversification.
- The company declared a cash dividend of $0.295, with a payout ratio of 66%, indicating strong cash flow management.
- EPRT's balance sheet remains strong with a pro forma net debt to annualized adjusted EBITDAre of 3.8x, reflecting low leverage and significant liquidity.
Negative Points
- The company is dealing with a bankruptcy situation involving Zips Car Wash, which could impact future lease expectations.
- There was a slight increase in total G&A expenses, rising to $8.5 million in Q4 2024 from $7.3 million in Q4 2023.
- The carwash sector exposure remains a concern, with efforts to reduce it from above the 15% soft ceiling.
- Interest rate volatility poses challenges, potentially affecting transaction pricing and cap rate compression.
- Occupancy slightly decreased, with vacant properties increasing from 3 to 7, indicating potential leasing challenges.
