Q4 2024 Broadstone Net Lease Inc Earnings Call Transcript
Key Points
- Broadstone Net Lease Inc (BNL) 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.
- 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.
Hello, and welcome to Broadstone Net Lease's fourth-quarter 2024 earnings conference call. My name is Emily, and I'll be your operator today. Please note that today's call is being recorded.
I will now turn the call over to Brent Maedl, Director of Corporate Finance and Investor Relations at Broadstone. Please go ahead.
Thank you, everyone, for joining us today for Broadstone Net Lease's fourth-quarter 2024 earnings call. On today's call, you will hear prepared remarks from Chief Executive Officer, John Moragne; President and Chief Operating Officer, Ryan Albano; and Chief Financial Officer, Kevin Fennell. All three will be available for the Q&A portion of this call.
As a reminder, the following discussion and answers to your questions contain forward-looking statements, which are subject to risks and uncertainties that can cause actual results to differ materially due to a variety of factors. We caution you not to place undue reliance on these
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