On July 30, 2024, Broadstone Net Lease Inc (BNL, Financial) released its 8-K filing detailing the company's financial performance for the second quarter ended June 30, 2024. Broadstone Net Lease Inc is an internally managed real estate investment trust (REIT) that invests in, owns, and manages single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants.
Quarterly Highlights
Broadstone Net Lease Inc (BNL, Financial) reported revenues of $105.91 million for Q2 2024, slightly surpassing the analyst estimate of $105.42 million. The company generated a net income of $35.9 million, or $0.19 per share, exceeding the estimated earnings per share of $0.17. Adjusted Funds from Operations (AFFO) stood at $70.4 million, or $0.36 per share, aligning with the previous quarter's performance.
Investment Activity
During the second quarter, Broadstone Net Lease Inc (BNL, Financial) invested $247.8 million, including $165.1 million in new property acquisitions, $52.2 million in transitional capital, and $30.5 million in development fundings. The new property acquisitions had a weighted average initial cash capitalization rate of 7.3%, a weighted average lease term of 11.5 years, and weighted average annual rent increases of 2.3%. The company also sold three properties for gross proceeds of $24.4 million at a weighted average cash capitalization rate of 7.3%.
Operating Results
Broadstone Net Lease Inc (BNL, Financial) generated net income of $35.9 million, or $0.19 per share, and AFFO of $70.4 million, or $0.36 per share. The portfolio was 99.3% leased based on rentable square footage, with only three of the 777 properties vacant and not subject to a lease at quarter end. The company collected 99.0% of base rents due for the second quarter for all properties under lease.
Capital Markets Activity
As of June 30, 2024, Broadstone Net Lease Inc (BNL, Financial) had total outstanding debt of $1.9 billion, a Net Debt to Annualized Adjusted EBITDAre ratio of 5.1x, and a Pro Forma Net Debt to Annualized Adjusted EBITDAre ratio of 4.9x. The company had $920.9 million of capacity on its unsecured revolving credit facility and declared a quarterly dividend of $0.29 per share.
Financial Summary
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Revenues | $105.91 million | $105.37 million | $109.35 million |
| Net Income | $35.9 million | $68.18 million | $63.0 million |
| Net Earnings per Share | $0.19 | $0.35 | $0.32 |
| AFFO | $70.4 million | $70.87 million | $69.0 million |
| AFFO per Share | $0.36 | $0.36 | $0.35 |
Analysis
Broadstone Net Lease Inc (BNL, Financial) demonstrated robust performance in Q2 2024, surpassing revenue and earnings estimates. The company's strategic investments and high occupancy rates underscore its strong market position. The healthcare portfolio simplification strategy and prudent capital management have fortified its balance sheet, positioning BNL for sustainable growth in the coming years.
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Explore the complete 8-K earnings release (here) from Broadstone Net Lease Inc for further details.
