Broadstone(BNL) - 2024 Q3 - Quarterly Results

Company Overview - Broadstone Net Lease, Inc. is an industrial-focused, diversified REIT investing in single-tenant commercial properties with long-term net leases[3]. - The company targets properties with creditworthy tenants in industries with positive business drivers, enhancing long-term lease opportunities[3]. - Broadstone Net Lease continues to diversify its portfolio across various property types, including industrial, restaurant, retail, healthcare, and office[3]. - The management team includes experienced professionals in finance, operations, and acquisitions, ensuring effective leadership[4]. Financial Performance - For Q3 2024, the company reported a significant increase in lease revenues, contributing to overall financial performance[2]. - Total revenues for Q3 2024 were $108,397,000, an increase from$105,907,000 in Q2 2024[5]. - Net income for Q3 2024 was $37,268,000, compared to$35,937,000 in Q2 2024, reflecting a growth of approximately 3.7%[5]. - Funds from Operations (FFO) for Q3 2024 were $73,818,000, slightly up from$73,725,000 in Q2 2024[5]. - Core FFO for Q3 2024 was $73,971,000, an increase from$73,001,000 in Q2 2024[5]. - Adjusted EBITDA for Q3 2024 reached $96.239 million, up from$92.529 million in Q2 2024[18]. - Annualized Adjusted EBITDAre for Q3 2024 was $384.956 million, compared to$376.868 million in Q3 2023[17]. Balance Sheet and Cash Flow - The company maintains a strong balance sheet, with metrics indicating healthy debt management and capital structure[2]. - Total assets as of Q3 2024 were $5,263,286,000, a slight decrease from$5,264,557,000 in Q2 2024[5]. - Total liabilities increased to $2,124,927,000 in Q3 2024 from$2,067,147,000 in Q2 2024[5]. - Cash and cash equivalents decreased to $8,999,000 in Q3 2024 from$18,282,000 in Q2 2024[5]. - Net cash provided by operating activities was $67,303,000 in Q3 2024, down from$74,172,000 in Q2 2024[5]. - The company reported a diluted net earnings per share of $0.19 for Q3 2024, consistent with Q2 2024[5]. Risks and Challenges - Future performance is subject to various risks, including economic conditions and tenant financial health, which could impact actual results[2]. - The company incurred severance and employee transition costs of$98 million during the quarter[9]. Portfolio and Tenant Information - The company has a total of 203 tenants across 55 industries, with 191 brands represented in its portfolio[36]. - The occupancy rate based on square footage is 99.0%, with a rent collection rate of 99.1% in Q3 2024[36]. - The total annualized base rent increased to $398.2 million in Q3 2024, up from$385.5 million in Q2 2024, reflecting a growth of 1.8%[36]. - The company reported a total of 773 properties as of September 30, 2024, down from 777 properties in the previous quarter[36]. Debt and Financing - The company reported a total debt of $1,952,974 million, which constitutes 34.3$580 thousand maturing in 2024[15]. - The company has a weighted average debt maturity of 3.8 years[23]. Acquisitions and Dispositions - In Q3 2024, the company completed 2 acquisitions, totaling an acquisition price of $69.25 million, with a square footage of 357,000[25]. - The company disposed of 46 properties in 2024, with a total acquisition price of$319.77 million and a disposition price of $307.86 million[35]. Industry and Market Trends - Industrial properties make up 57.8% of the total ABR, with manufacturing at 17.5% and distribution & warehouse at 14.1%[43]. - The healthcare sector contributes 10.5% to the total ABR, with animal health services at 2.8%[44]. - The restaurant sector accounts for 13.4% of the total ABR, with casual dining at 6.8% and quick service restaurants at 6.6%[44].