Broadstone Net Lease, Inc. (BNL) Bundle
A Brief History of Broadstone Net Lease, Inc.
Broadstone Net Lease, Inc. (BNL), a real estate investment trust (REIT), primarily focuses on acquiring and managing commercial properties leased to tenants on a long-term basis. The company operates under a net lease structure, which allows them to benefit from stable cash flows and predictable income.
Company Formation and Growth
Founded in 2012, BNL has grown its portfolio significantly through strategic acquisitions and partnerships. As of September 30, 2024, Broadstone Net Lease reported total assets of $5.26 billion, with a diversified portfolio consisting of over 4,991 properties across various sectors, including industrial, retail, and healthcare.
Financial Performance
In the nine months ended September 30, 2024, Broadstone Net Lease generated net income of $141.4 million, compared to $156.5 million in the same period in 2023, representing a decrease of approximately 9.7%. Net earnings per diluted share for the same period were $0.72, down from $0.80 in 2023 .
The company's total revenues for the nine months ended September 30, 2024, were reported at $319.7 million, a decrease from $337.9 million in 2023. Lease revenues for the same period were $108.4 million for Q3 2024, down from $109.5 million in Q3 2023 .
Acquisitions and Dispositions
Throughout 2024, BNL has actively engaged in acquisitions and dispositions as part of its strategic portfolio management. Notably, the company sold 46 properties for gross proceeds of $289.5 million, realizing a gain of $65 million .
| Transaction Type | Number of Properties | Gross Proceeds ($ Million) | Gain on Sale ($ Million) |
|---|---|---|---|
| Sales | 46 | 289.5 | 65.0 |
| Acquisitions | 32 | 234.3 | N/A |
Debt and Equity Financing
As of September 30, 2024, Broadstone Net Lease had total unsecured debt of approximately $1.87 billion, with a weighted average interest rate of 5.09%. The company maintains a robust capital structure, utilizing its at-the-market equity offering program which allows for up to $400 million in gross sales .
| Debt Type | Outstanding Balance ($ Million) | Interest Rate (%) | Maturity Date |
|---|---|---|---|
| Revolving Credit Facility | 125.5 | Applicable SOFR + 0.85 | Mar 2026 |
| Unsecured Term Loans | 896.9 | 1.00 - 1.25 | 2026 - 2029 |
| Senior Unsecured Notes | 850.0 | 2.60 - 5.19 | 2027 - 2031 |
Market Position and Strategy
Broadstone Net Lease continues to focus on diversifying its tenant base and geographic footprint. The company actively pursues opportunities in sectors that exhibit resilience, such as industrial and healthcare, while gradually divesting from non-core assets. The strategic decision to simplify its healthcare portfolio is aimed at enhancing operational efficiency and maximizing shareholder value .
In conclusion, BNL's robust operational framework and disciplined financial strategy position it well to navigate the complexities of the current market landscape, as it continues to pursue growth through strategic acquisitions and portfolio optimization.
A Who Owns Broadstone Net Lease, Inc. (BNL)
Ownership Structure
As of September 30, 2024, Broadstone Net Lease, Inc. (BNL) has a total of 188,507 shares of common stock issued and outstanding. The common stock has a par value of $0.00025 per share, while no preferred stock is issued or outstanding.
Major Shareholders
The ownership of Broadstone Net Lease is diversified with significant institutional and retail investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | Approximately 67,000,000 | 35.5% |
| Retail Investors | Approximately 75,000,000 | 39.8% |
| Insider Ownership | Approximately 46,000,000 | 24.5% |
Recent Share Transactions
During the nine months ended September 30, 2024, Broadstone Net Lease converted 173,034 OP Units valued at $2.8 million into shares of common stock. Additionally, 2,187,700 shares of common stock were sold under the company's At-the-Market (ATM) Program at a weighted average price of $18.29.
Equity Capital Resources
Broadstone Net Lease primarily raises equity capital through its ATM Program, which was recently replaced with a new program allowing for gross sales of up to $400 million. This program enables the company to issue and sell shares of common stock periodically.
Dividend Distribution
As of September 30, 2024, Broadstone Net Lease declared dividends totaling $58.2 million. The dividends were declared at a rate of $0.29 per common share and OP Unit.
Financial Performance Indicators
For the nine months ended September 30, 2024, Broadstone Net Lease reported net income of $141.4 million, with basic earnings per share at $0.72. The company’s total assets as of September 30, 2024, amounted to $5.263 billion.
Debt and Liquidity Position
As of September 30, 2024, Broadstone Net Lease had total debt outstanding of approximately $2 billion, with a Net Debt to Annualized Adjusted EBITDAre ratio of 5.0x. The company maintains a revolving credit facility with $874.5 million available capacity.
Ownership by Non-Controlling Interests
Broadstone Net Lease also has non-controlling interests totaling $139.3 million as of September 30, 2024.
Broadstone Net Lease, Inc. (BNL) Mission Statement
Mission Statement Overview
The mission of Broadstone Net Lease, Inc. (BNL) is to maximize the risk-adjusted return to its stockholders through a diversified investment strategy focused on acquiring, managing, and leasing high-quality net lease properties. The company emphasizes long-term relationships with creditworthy tenants, delivering stable cash flows while maintaining a prudent capital structure.
Core Values
- Integrity: Upholding the highest standards of ethics and transparency in all dealings.
- Innovation: Continuously seeking new opportunities and strategies to enhance portfolio performance.
- Collaboration: Fostering strong partnerships with tenants, investors, and stakeholders.
- Excellence: Committing to superior property management and operational efficiency.
Strategic Focus Areas
BNL's strategic focus includes:
- Investing in properties with long-term leases to creditworthy tenants.
- Employing a disciplined approach to capital allocation.
- Enhancing tenant relationships through proactive management.
- Maintaining a diversified portfolio across various sectors and geographic locations.
Financial Performance Indicators
As of September 30, 2024, BNL reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Debt Outstanding | $2.0 billion |
| Net Debt | $1.9 billion |
| Net Debt to Annualized Adjusted EBITDAre Ratio | 5.0x |
| Total Assets | $5.263 billion |
| Total Equity | $3.138 billion |
| Net Income (Nine Months Ended Sept 30, 2024) | $141.4 million |
| Earnings Per Share (Diluted) | $0.72 |
Portfolio Composition
As of September 30, 2024, BNL's portfolio consists of 773 properties, with a breakdown as follows:
| Property Type | Percentage of Portfolio |
|---|---|
| Industrial | 34% |
| Retail | 30% |
| Healthcare | 10% |
| Restaurant | 15% |
| Office | 11% |
Lease Structure and Tenant Quality
BNL emphasizes a strong lease structure with a weighted average remaining lease term of approximately 10.3 years and an ABR weighted average minimum rent escalation of 2.0%.
Recent Developments
In 2024, BNL executed a significant portfolio simplification strategy by selling 43 healthcare properties for gross proceeds of $289.5 million, with an additional 10 properties sold for $49.5 million post-quarter end. This strategy aims to reduce healthcare's contribution to ABR below 10% and reallocate capital towards higher-performing sectors.
Liquidity and Capital Resources
As of September 30, 2024, BNL maintains a strong liquidity profile with $874.5 million available under its Revolving Credit Facility, supporting its ongoing investment activities and operational needs.
Conclusion on Mission Statement
Broadstone Net Lease, Inc. remains committed to its mission of delivering long-term value to shareholders through strategic investments in high-quality net lease properties, underpinned by a focus on tenant relationships and operational excellence.
How Broadstone Net Lease, Inc. (BNL) Works
Company Overview
Broadstone Net Lease, Inc. (BNL) operates as a real estate investment trust (REIT) focused on acquiring and managing net lease properties. As of September 30, 2024, the company has a diversified portfolio that includes a variety of property types, primarily in the industrial and retail sectors.
Financial Performance
For the three months ended September 30, 2024, BNL reported a net income of $37.268 million, compared to $35.937 million for the previous quarter, reflecting a 3.7% increase. The earnings per diluted share remained stable at $0.19.
Revenue Generation
BNL's lease revenues for the nine months ended September 30, 2024, totaled $319.670 million, a decrease of 5.4% from $337.887 million in the same period of 2023. The breakdown of the lease revenues is as follows:
| Lease Revenue Type | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Contractual Rental Amounts | $289,881 | $290,891 | ($1,010) | (0.3%) |
| Adjustment for Straight-Line Basis | $15,720 | $21,641 | ($5,921) | (27.4%) |
| Variable Rental Amount Earned | $1,901 | $1,306 | $595 | 45.6% |
| Total Lease Revenues, Net | $319,670 | $337,887 | ($18,217) | (5.4%) |
Portfolio Statistics
As of September 30, 2024, BNL's portfolio comprised a total of 203 properties, with a total annualized base rent (ABR) of $398.2 million. The portfolio's diversification by property type is illustrated below:
| Property Type | # Properties | ABR (in thousands) | ABR as % of Total Portfolio | Square Feet (in thousands) | SF as % of Total Portfolio |
|---|---|---|---|---|---|
| Industrial | 203 | $229,680 | 57.8% | 31,450 | 79.2% |
| Restaurant | 102 | $27,107 | 6.8% | 674 | 1.7% |
Debt and Equity Structure
As of September 30, 2024, BNL had total debt outstanding of approximately $1.953 billion, with a net debt of $1.9 billion. The company maintains a Net Debt to Annualized Adjusted EBITDAre ratio of 5.0x.
Interest Expense
For the nine months ended September 30, 2024, BNL reported interest expense of $54.512 million, down from $61.081 million in the same period of 2023, reflecting a decrease of 10.8%. The company utilizes interest rate swaps to manage interest rate risk associated with its variable-rate borrowings.
Cash Flow and Distributions
BNL's net cash provided by operating activities for the nine months ended September 30, 2024, was $212.342 million, compared to $210.492 million in the prior year. The company declared distributions of $0.29 per share and OP Unit during this period.
Liquidity and Capital Resources
BNL has a robust liquidity position, with $874.5 million of available capacity under its Revolving Credit Facility as of September 30, 2024. The company continues to focus on maintaining an investment-grade balance sheet and plans to finance future acquisitions through a mix of debt and equity capital.
Future Outlook
BNL's strategic focus includes expanding its portfolio through acquisitions while managing its leverage and optimizing its capital structure. The company expects to meet its long-term liquidity requirements primarily through borrowings under its credit facilities, future debt and equity financings, and proceeds from property dispositions.
How Broadstone Net Lease, Inc. (BNL) Makes Money
Revenue Sources
Broadstone Net Lease, Inc. (BNL) generates revenue primarily through leasing activities. The company focuses on acquiring and managing a diversified portfolio of net lease properties, which are typically leased to high-quality tenants.
Lease Revenues
For the three months ended September 30, 2024, BNL reported total lease revenues, net of $108.4 million, compared to $109.5 million for the same period in 2023. The breakdown of lease revenues is as follows:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Contractual rental amounts billed for operating leases | $96,596 | $96,333 | $263 | 0.3% |
| Adjustment to recognize contractual operating lease billings on a straight-line basis | $5,438 | $6,891 | ($1,453) | (21.1%) |
| Variable rental amounts earned | $644 | $513 | $131 | 25.5% |
| Earned income from direct financing leases | $691 | $687 | $4 | 0.6% |
| Interest income from sales-type leases | $14 | $14 | $0 | 0.0% |
| Operating expenses billed to tenants | $5,537 | $5,181 | $356 | 6.9% |
| Other income from real estate transactions | $907 | $19 | $888 | >100% |
| Adjustment to revenue recognized for uncollectible rental amounts billed, net | ($1,430) | ($95) | ($1,335) | (1,403.2%) |
Operating Expenses
BNL's operating expenses for the three months ended September 30, 2024, totaled $54.8 million, compared to $54.4 million for the same period in 2023. The detailed operating expenses are shown below:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Depreciation and amortization | $38,016 | $38,533 | ($517) | (1.3%) |
| Property and operating expense | $7,014 | $5,707 | $1,307 | 22.9% |
| General and administrative | $8,722 | $10,143 | ($1,421) | (14.0%) |
| Provision for impairment of investment in rental properties | $1,059 | $0 | $1,059 | N/A |
Net Income and Earnings
For the three months ended September 30, 2024, BNL reported a net income of $37.3 million, or $0.19 per diluted share. This represents an increase from $35.9 million, or $0.19 per diluted share, in the previous quarter.
Gain on Sale of Real Estate
During the nine months ended September 30, 2024, BNL recognized a gain of $65.0 million on the sale of 46 properties. This compares to a gain of $48.0 million on the sale of nine properties during the same period in 2023.
Debt and Leverage
As of September 30, 2024, BNL had total debt of $2.0 billion, with a Net Debt to Annualized Adjusted EBITDAre ratio of 5.0x. The company aims to maintain a leverage ratio generally less than 6.0x to support its investment-grade credit ratings.
Portfolio Performance
BNL's real estate portfolio as of September 30, 2024, consisted of 773 properties with an aggregate base rental (ABR) of $398.2 million. The weighted average remaining lease term was 9.4 years, and the occupancy rate was 98.7%.
| Portfolio Metrics | Value |
|---|---|
| Total Properties | 773 |
| Aggregate Base Rental (ABR) (in thousands) | $398,159 |
| Weighted Average Remaining Lease Term (years) | 9.4 |
| Occupancy Rate (%) | 98.7% |
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Article updated on 8 Nov 2024
Resources:
- Broadstone Net Lease, Inc. (BNL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Broadstone Net Lease, Inc. (BNL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Broadstone Net Lease, Inc. (BNL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.