Q1 2024 Broadstone Net Lease Inc Earnings Call Transcript
Key Points
- Broadstone Net Lease Inc successfully executed the sale of 37 healthcare assets, generating gross proceeds of $251.7 million, significantly advancing their healthcare portfolio simplification strategy.
- The company has increased its per-share AFFO guidance to a range of $1.41 to $1.43, reflecting strong operational performance and strategic asset management.
- Broadstone Net Lease Inc reported robust investment activity with $202 million invested year-to-date and an additional $122 million under control, demonstrating effective capital deployment in a challenging market.
- The company maintained high occupancy and rent collection rates, with 99.9% rent collections and 99.2% occupancy as of March 31, 2024, underscoring the strength of its tenant relationships and portfolio quality.
- Broadstone Net Lease Inc is actively reducing its healthcare exposure, aiming to decrease it to below 10% of their ABR, aligning with their strategy to focus more on industrial and defensive retail sectors.
- The transaction market for single-tenant net lease properties is at a historic low, which has created a challenging environment for acquiring new assets.
- Interest rate increases have exacerbated the misalignment between buyers and sellers, further complicating investment activities in the commercial real estate sector.
- Broadstone Net Lease Inc faces incremental pockets of credit risk due to the prolonged higher interest rate environment, which could potentially impact tenant financial stability.
- The company noted specific concerns with tenants like Red Lobster and The Room Place, indicating potential issues in sectors sensitive to discretionary consumer spending.
- While the company is progressing with its healthcare portfolio simplification, the remaining assets expected to be sold in stages may face challenges, potentially affecting the speed and valuation of these dispositions.
Hello everyone and welcome to the Broadstone Net Lease's first-quarter 2024 earnings conference call. My name is Bailey, and I will 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 operator and thank you everyone for joining us today for Broadstone Net Lease's first quarter 2024 earnings call. On today's call you will hear prepared remarks from CEO, John Moragne; President and COO, Ryan Albano; and CFO, 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 forward-looking
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