Broadstone(BNL)2023-05-03 16:00Portfolio Overview - As of March 31, 2023, the company’s portfolio includes 801 properties, with an annualized base rent (ABR) of 389,472,000[126] Lease and Rental Income - Approximately 97.3% of leases have contractual rent escalations, with an ABR weighted average minimum increase of 2.0%[118] - Leases contributing 97.3% of the ABR provided for annual increases generally ranging from 1.5% to 3.0%[136] - The company recognized 6,858,000 or 6.1% compared to the previous quarter[144] - The company reported a 16.2% increase in contractual rental amounts billed for operating leases, totaling 84,396,000 for the same period in 2022[153] Property Segmentation - The industrial property type constitutes 51.8% of the total portfolio ABR, with manufacturing alone accounting for 16.5%[122] - Healthcare properties represent 17.4% of the total portfolio ABR, with clinical healthcare making up 7.0%[122] - Restaurant properties account for 13.4% of the total portfolio ABR, with casual dining at 7.0% and quick service restaurants at 6.4%[122] - The healthcare facilities segment has 104 properties with an ABR of 53,141,000, accounting for 13.6% of the total portfolio[126] - The packaged foods and meats segment has 29 properties with an ABR of 104,084,000, representing 26.7% of the total portfolio[126] Financial Performance - The company recognized a net income of 36,773,000 in the previous quarter[151] - Net income for the three months ended March 31, 2023, was 28,441,000 in the same period of 2022[161] - Net earnings per diluted share increased by 31.3% to 0.16 year-over-year[161] - Funds From Operations (FFO) for the three months ended March 31, 2023, was 61,504 thousand for the same period in 2022, reflecting a year-over-year increase of 32%[180] - Core Funds From Operations (Core FFO) for the three months ended March 31, 2023, was 64,076 thousand in the prior year[180] - Adjusted Funds From Operations (AFFO) for the three months ended March 31, 2023, was 60,401 thousand for the same period in 2022[180] Expenses and Impairments - Total operating expenses decreased by 2.9% from 59,559,000 in Q1 2023[139] - The company experienced an increase of 11.8% in general and administrative expenses, rising from 10,416,000[139] - The company reported a provision for impairment of investment in rental properties amounting to 1,473,000 on investments in rental properties during the three months ended March 31, 2023, with no impairment recognized in the same period of 2022[158] Debt and Liquidity - The company has a 891.7 million of available capacity under its Revolving Credit Facility as of March 31, 2023[167] - The company reported a decrease in cash and cash equivalents of 108,330 thousand on its unsecured revolving credit facility as of March 31, 2023[174] Market and Economic Factors - A 1% increase in market interest rates would decrease the fair value of the company's fixed-rate debt by approximately $72.2 million[189] - The company is exposed to foreign currency exchange rate risk due to investments in Canada, funded partially through Canadian dollar borrowings[190] Strategic Management - The company employs a disciplined acquisition strategy and active asset management, including selective property sales[183] - The company expects to meet long-term liquidity needs primarily through borrowings under its Revolving Credit Facility and future debt and equity financings[167]