Maxxa_Satori Broadstone Net Lease, Inc. (NYSE:BNL) is a well-managed and growing industrial-focused real estate investment trust that has considerable potential for FFO expansion in 2024. Broadstone Net Lease is poised to acquire more industrial properties this year, which could fuel the trust’s FFO growth and also lead to yet another dividend hike for shareholders. I think that Broadstone Net Lease is a solid Buy-And-Hold investment, as the trust’s valuation has improved a lot lately. The trust’s stock ...

MarsBars Investing doesn't have to be a popularity contest, and in reality, buying quality names that are temporarily beaten down in price can produce terrific results, especially if they pay a high dividend yield. Such may be the case these days with REITs and income stocks in general, which continue to trade near their 52-week lows despite the broader market indices flying near all-time highs. This brings me to Broadstone Net Lease (NYSE:BNL), which I last covered in May of last year, noting the attractiv ...

kieferpix I can’t say I enjoy talking about my past failures, like how I’ve lost money. But I figure that: It’s the mark of a healthy adult It could keep you from similar failures. If it were completely up to me, of course, I wouldn’t be writing this article at all. Because, if it were completely up to me, I wouldn’t make any mistakes at all. Reality being reality though, I’ve made my fair share of bad calls. Some of them have been innocent, with me making the best possible decision based on the infor ...

RonFullHD We recently bought some Broadstone Net Lease, Inc. (NYSE:BNL). This was a trade by selling Universal Health Realty Income Trust (UHT), another real estate play where we felt the risk-reward had become unattractive. We were looking for defensive plays that would withstand the pricing out of rate cuts from the 2024 roster. At the time, we considered the option of going into Realty Income (O). We last downgraded he monthly dividend company to a hold following a blockbuster rally. It had also pull ...

While making income investments, finding avenues that offer stable inflow even against market fluctuations is similar to discovering hidden treasures. For the perfect blend of reliability and growth, dividend stocks stand tall as fundamental pillars of financial security.Here, the seven dividend stocks listed across diverse sectors present solid prospects for the long term. From the robust real estate ventures of the first one and the second one to the pharmaceutical prowess of the fourth one, these stocks ...

RichHobson/E+ via Getty Images Introduction Count me as one of the people who also think interest rates will be cut sometime soon. When to be exact? No one knows, but I do think we'll get one sometime this year. There's also a chance we can get another increase before cuts as seen by the latest CPI report. So, which one is it? A raise or decrease? Either way rates will eventually decline and when they do, I think investors should be invested in REITs to benefit from their share price appreciation potent ...

Financial Data and Key Metrics Changes - The company reported an AFFO of $1.41 per share for the full year, reflecting a 1.1% year-over-year increase and in line with guidance [29][14] - The company ended the quarter with a net debt leverage of 5 times, slightly up from 4.9 times in the previous quarter [29] - The dividend was maintained at $0.285 per common share, representing a 3.6% increase over the previous year [29] Business Line Data and Key Metrics Changes - The company executed selective dispositions, selling five properties for gross proceeds of $16.5 million at an average cash cap rate of 6.7% in Q4, bringing total disposition proceeds for the year to $200 million at a weighted average cash cap rate of 6% [5][4] - Investment volume for the fourth quarter was $64.1 million, with a full year investment volume of $166 million at a weighted average cash cap rate of 7.2% [5][29] - The company is focusing on simplifying its healthcare portfolio, with plans to sell 75 clinical, surgical, and traditional medical office building assets, reducing healthcare exposure from approximately 17.6% to about 7.5% of ABR [25][26] Market Data and Key Metrics Changes - The company noted a challenging macroeconomic environment characterized by interest rate volatility and muted transaction activity, impacting capital allocation decisions [11][28] - Rent collections remained strong at 99.2% during Q4, with occupancy at 99.4% as of December 31, 2023 [27] Company Strategy and Development Direction - The company is strategically simplifying its portfolio by divesting from complex healthcare assets and focusing on industrial, retail, and restaurant properties [10][25] - The management emphasized a disciplined approach to capital allocation, prioritizing long-term value creation over short-term gains [5][7] - The company aims to redeploy proceeds from asset sales into more stable investment opportunities, particularly in the industrial and defensive retail sectors [33][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for growth opportunities in 2024 and beyond, particularly with the anticipated completion of the UNFI project [7][28] - The management acknowledged the challenges faced in 2023 but believes that the strategic decisions made will position the company for long-term shareholder value [7][11] Other Important Information - The company is actively seeking off-market investment opportunities and unique capital allocation strategies due to constraints in traditional commercial real estate lending [4][33] - The company expects to see some of the healthcare assets sold in 2024, with a focus on achieving optimal disposition outcomes rather than rushing sales [60][61] Q&A Session Summary Question: Can you share any color on the buyer pool for the assets currently under contract? - The company reported a robust buyer pool consisting of dedicated healthcare operators, with no plans to repurpose the assets being sold [15] Question: What is the investment guidance for 2024? - The company plans to be a net acquirer in 2024, depending on market conditions and the resolution of the bid-ask spread [16] Question: How should we think about cap rates on the assets to be sold? - The company expects to sell the healthcare assets at mid to high-7% cap rates, emphasizing a disciplined approach rather than a fire sale [37] Question: What is the expected impact of the UNFI facility on cash flow? - The UNFI facility is expected to start generating rent in Q4 2024, significantly impacting cash flow in 2025 [40] Question: How does the company plan to manage the transition of assets like Red Lobster and Shutterfly? - The company is optimistic about the prospects for both assets, with plans to manage the transition to minimize downtime and maintain value [72]

Broadstone Net Lease, Inc. (BNL) came out with quarterly funds from operations (FFO) of $0.36 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.36 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post FFO of $0.35 per share when it actually produced FFO of $0.36, delivering a surprise of 2.86%.Over the last four quarters, the company has surpassed consensus FFO estimates just once.Broadstone Net Lea ...

VICTOR, N.Y.--(BUSINESS WIRE)--Broadstone Net Lease, Inc. (NYSE: BNL) (“BNL”, the “Company”, “we”, “our”, or “us”), today announced its operating results for the year and quarter ended December 31, 2023, and its healthcare portfolio simplification strategy. MANAGEMENT COMMENTARY “ I am incredibly proud of our 2023 results, which we were able to deliver despite significant economic headwinds and capital market volatility through the year. We thoughtfully navigated a challenging environment by intentionally ...

Financial Performance and Condition - The company recorded impairment charges related to certain properties for the years ended December 31, 2023, 2022, and 2021, which may impact future financial results [2]. - As of December 31, 2023, total mortgages amounted to $79.173 million, down from $86.754 million in 2022, reflecting a decrease of approximately 8.2% [4]. - The company has a total investment in rental property of $120.5 million pledged as collateral against its mortgages [5]. - Tax protection agreements covering three properties could trigger a liability of approximately $10.4 million based on values as of December 31, 2023 [7]. - As of December 31, 2023, the company had approximately $1.9 billion in outstanding principal balance of indebtedness, which may expose it to default risks under its debt obligations [20]. - The total unsecured debt, net, as of December 31, 2023, is $1,831.7 million, a decrease from $1,936.6 million in 2022 [34]. - The weighted average interest rate on all outstanding borrowings as of December 31, 2023, is 5.33% [35]. - The company has a total of $900.0 million in unsecured term loans as of December 31, 2023, with varying interest rates based on one-month adjusted SOFR [34]. - The company has a total of $850.0 million in senior unsecured notes, with varying interest rates and maturities [34]. Risks and Liabilities - The company may face significant environmental liabilities associated with properties, which could adversely affect its financial condition and results of operations [12]. - The company may engage in development or expansion projects, which could expose it to additional risks, including construction delays and cost overruns [13]. - The departure of key personnel could adversely affect the company's business and investment opportunities [14]. - The company is subject to various economic risks, including high inflation and rising interest rates, which could adversely affect tenants' ability to make rental payments and overall financial performance [16]. - The company faces risks related to climate change, which could lead to increased costs and decreased demand for certain properties, impacting overall business operations [18]. - Increased competition for real property investments may affect the company's ability to acquire new properties and maintain existing tenants [16]. - The company may incur mortgage debt on properties, which increases the risk of loss and potential foreclosure actions by lenders [23]. - The company may face a 100% penalty tax on net income from prohibited transactions, which could limit its ability to engage in certain sales [31]. - The company may be liable for tax obligations of certain members of the OP, which could limit the economic feasibility of selling properties [38]. Compliance and Regulatory Issues - Changes in accounting standards may materially and adversely affect the company's reported financial condition and results of operations [3]. - Compliance with new laws and regulations may require significant expenditures, potentially reducing returns for stockholders [19]. - The company must distribute at least 90% of its REIT taxable income each year to maintain its REIT status, which may require raising funds if cash flow is insufficient [30]. - Compliance with REIT requirements may force the company to liquidate or forgo attractive investments, potentially reducing income and increasing tax liabilities [37]. - The company inherited any unpaid tax liabilities from the Blocker Corps, which could impact its financial position [39]. - Changes to U.S. federal income tax laws could adversely affect the company's tax treatment and stockholder interests [40]. Debt and Financing - As of December 31, 2023, the company has future mortgage obligations totaling $1.92 billion, with the largest portion due in 2026 at $507.277 million [6]. - The company’s mortgages have varying interest rates, with the highest being 6.38% and the lowest at 3.62% [4]. - The company is monitoring risks associated with transitioning its Canadian dollar-denominated debt to a new alternative rate following the recommendation to cease CDOR publication after June 30, 2024 [23]. - The company intends to maintain a level of Net Debt generally less than 6.0x its Annualized Adjusted EBITDAre, although this ratio may exceed 6.0x from time to time [24]. - The company’s financial covenants require it to maintain certain financial ratios, and failure to comply could result in accelerated repayment obligations [22]. - Disruptions in financial markets could hinder the company's ability to obtain debt financing on favorable terms, impacting its investment strategy [21]. - The company is in compliance with all loan covenants as of December 31, 2023, which is crucial to avoid defaults that could restrict dividend payments [34]. Market and Stock Performance - The market price and trading volume of the company's common stock may be volatile, influenced by factors unrelated to its operating performance [41]. - Future offerings of debt or preferred equity securities may adversely affect the market price of the company's common stock and dilute existing stockholders' interests [44]. - The company may not be able to make expected cash distributions to stockholders due to insufficient cash flow from properties or restrictions from debt agreements [43]. - A 1% increase in market interest rates would result in a decrease in the fair value of fixed-rate debt by approximately $65.9 million [122]. - A 10% increase or decrease in the exchange rate between the Canadian dollar and USD would result in a $7.5 million increase or decrease in unrealized foreign currency gain or loss [122]. Corporate Governance - The company’s Charter restricts ownership by one person or entity to no more than 9.8% of the value of its outstanding shares, which may deter potential takeover offers [24]. - The company’s Board of Directors has the authority to issue up to 520,000,000 shares of stock and may amend the Charter without stockholder approval, potentially diluting common stock value [24]. - The company’s ability to recover damages from directors and officers is limited under Maryland law, which may reduce stockholders' rights [25]. - The company relies on distributions from the Operating Partnership (OP) to meet obligations and pay dividends, making it structurally subordinated to the OP's liabilities [28]. Litigation and Legal Risks - The company may face substantial costs and management distractions from potential securities class action litigation following stock price volatility [41]. - The company estimates a built-in gain of approximately $56.4 million related to the Blocker Corps' assets, which could trigger corporate income tax if disposed of in a taxable transaction within five years [39]. - The company must distribute earnings and profits accumulated in a non-REIT year before the end of the taxable year following the acquisition of a C corporation [39].