Broadstone Net Lease (BNL, Financial) has announced the addition of a significant new development to its portfolio, committing approximately $78.2 million to the project. This venture is part of a build-to-suit development pipeline and marks the beginning of a collaborative effort with the Prologis (PLD) development team.
The project involves the construction of a state-of-the-art distribution warehouse for FCA US, a subsidiary of Stellantis (STLA). The land for this facility has been secured, and construction is currently underway. The completion and delivery of the facility are projected for the third quarter of 2026.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Broadstone Net Lease Inc (BNL, Financial) is $18.86 with a high estimate of $22.00 and a low estimate of $15.00. The average target implies an upside of 18.30% from the current price of $15.94. More detailed estimate data can be found on the Broadstone Net Lease Inc (BNL) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Broadstone Net Lease Inc's (BNL, Financial) average brokerage recommendation is currently 2.4, 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 Broadstone Net Lease Inc (BNL, Financial) in one year is $17.22, suggesting a upside of 8.03% from the current price of $15.94. 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 Broadstone Net Lease Inc (BNL) Summary page.
BNL Key Business Developments
Release Date: February 20, 2025
- AFFO per Share: $1.43 for 2024, a 1.4% increase compared to 2023.
- Portfolio Leased Rate: More than 99% leased.
- Rent Collection: More than 99% rent collection.
- Total Investments: Over $400 million executed in 2024.
- Build-to-Suit Developments: $227.3 million with initial cash yields in the mid- to high 7% range.
- 2025 AFFO Guidance: $1.45 to $1.49 per share, approximately 3% growth at the midpoint.
- Investment Activity 2024: $404.8 million total, including $234.3 million in new property acquisitions.
- Dispositions 2024: 58 properties sold for $364 million.
- Lease Rollovers 2024: 7 executed, 112% weighted average recapture rate.
- Core G&A Expenses: $29.3 million for the year.
- Pro Forma Leverage: 4.9x net debt.
- Dividend: $0.29 per common share and OP unit.
- 2025 Investment Volume Guidance: $400 million to $600 million.
- 2025 Disposition Volume Guidance: $50 million to $100 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Broadstone Net Lease Inc (BNL, Financial) achieved $1.43 of AFFO per share, reaching the top end of their guidance range.
- The company maintained a portfolio that is more than 99% leased with over 99% rent collection.
- BNL executed over $400 million in total investments and completed their clinical healthcare portfolio simplification strategy.
- The company has a strong pipeline of new investments, including $103.5 million of acquisitions under control and $227.3 million of build-to-suit developments.
- BNL's build-to-suit development strategy offers attractive yields, with straight-line yields in the mid- to high 8% range, providing a powerful tool for long-term growth.
Negative Points
- BNL is facing incremental pockets of credit risk, particularly in consumer-centric industries and some clinical healthcare properties.
- The company is navigating the Zips Car Wash bankruptcy, which involves 10 sites under master leases, accounting for 62 basis points of ABR.
- There is a disconnect between pricing expectations and the quality of opportunities in the regular transaction market, making it competitive.
- BNL's guidance includes 125 basis points of bad debt for 2025, indicating potential challenges in tenant creditworthiness.
- The company does not plan to raise equity in 2025, relying instead on accretive dispositions, which may limit flexibility in funding growth.
