Broadstone(US:BNL)2025-05-01 20:05Portfolio Overview - As of March 31, 2025, the portfolio includes 769 properties, with 762 located in 44 U.S. states and 7 in four Canadian provinces[105] - The portfolio is approximately 99.1% leased with an annualized base rent (ABR) weighted average remaining lease term of about 10.0 years[110] - The real estate investment portfolio has an annualized base rent (ABR) of $401.3 million, with industrial properties accounting for 59.8% of the total portfolio[115] - The company has 769 total properties, with 39,765 thousand square feet across various sectors[120] - Total leased properties amount to 769, with an Annual Base Rent (ABR) of $401,329,000, representing 100% of the total portfolio[126] - The company has 762 properties in the U.S., contributing $393,570,000 in ABR, which is 98.1% of the total[126] Lease and Rental Information - Approximately 97.5% of leases have contractual rent escalations, with an ABR weighted average increase of 2.0%[110] - As of March 31, 2025, 97.5% of leases provide for future ABR increases, with a weighted average annual increase of 2.0%[126] - The weighted average lease term for build-to-suit developments is 17.7 years, with a weighted average annual rent increase of 1.7%[111] - The top 10 tenants contribute 21.9% of the total ABR, with Roskam Baking Company, LLC being the largest at $16.236 million[118] - The restaurant industry represents 13.8% of the total ABR, with 258 properties generating $55.390 million[119] Financial Performance - Net income for the three months ended March 31, 2025, was $17.49 million, a decrease of $10.11 million, or 36.6%, from the previous quarter[140] - Net income for the three months ended March 31, 2025, was $17.5 million, a decrease of 74.3% compared to $68.2 million for the same period in 2024[150] - Net earnings per diluted share decreased to $0.09, down 75.1% from $0.35 in the prior year[150] - Lease revenues, net decreased by $3.4 million, or 3.1%, to $108.69 million for the three months ended March 31, 2025, primarily due to a $2.2 million write-off of accrued rental income[133] - Total operating expenses decreased by $6.58 million, or 8.5%, to $70.79 million, driven by a reduction in depreciation and amortization expenses[134] Investment Activity - During the three months ended March 31, 2025, total investments amounted to $88.333 million, with an initial cash capitalization rate of 7.2%[111] - The investment activity for acquisitions during the same period had an acquisition price of $59.004 million and an initial cash capitalization rate of 7.2%[111] - The company completed investments of $61.8 million in acquisitions and revenue-generating capital expenditures at a weighted average cash capitalization rate of 7.2% during the quarter[133] - The company has invested $52,200,000 in transitional capital, with an annualized initial cash NOI yield of 7.6%[130] Debt and Liquidity - Total debt outstanding as of March 31, 2025, was $2.0 billion, with a Net Debt to Annualized Adjusted EBITDAre ratio of 5.1x[153] - The company had approximately $336.0 million of expected obligations due throughout the remainder of 2025, including $183.8 million for investments and $58.2 million for declared dividends[157] - As of March 31, 2025, the company had $825.9 million of available capacity under its Revolving Credit Facility[157] - The company expects to meet long-term liquidity needs primarily through borrowings under its Revolving Credit Facility and proceeds from dispositions[160] - The company amended its Revolving Credit Facility on February 28, 2025, extending the maturity date to March 31, 2029, and increasing the facility size from $1.5 billion to $2.5 billion[166] Market Conditions and Risks - Current macroeconomic conditions have led to a challenging lending environment, impacting transaction volumes and earnings growth rates compared to historical periods[109] - The company is exposed to interest rate risk from floating-rate borrowings, which may affect net income and cash flow[174] - The company reported a 1% increase in market interest rates would lead to a decrease in the fair value of fixed-rate debt by approximately $34.1 million[201] - A 10% fluctuation in the exchange rate between the Canadian dollar and USD would result in a corresponding $7.0 million change in unrealized foreign currency gain or loss[204] Project Management and Development - As of March 31, 2025, the total project investment for in-process and stabilized developments is estimated at $438.036 million, with a cumulative investment of $428.595 million[112] - The company expects to update project timing estimates on a quarterly basis, indicating a proactive approach to project management[113] - The company has 5 in-process developments and 2 untenanted properties as of March 31, 2025[126] Other Financial Metrics - Funds From Operations (FFO) for the three months ended March 31, 2025, was $72.6 million, compared to $73.1 million for the same period in 2024[186] - Core Funds From Operations (Core FFO) increased to $75.3 million for the three months ended March 31, 2025, from $74.1 million in the prior year[186] - Adjusted Funds From Operations (AFFO) was $71.8 million for the three months ended March 31, 2025, compared to $70.9 million for the same period in 2024[186] - The company had 31 effective and seven forward-starting interest rate swaps with an aggregate notional amount of $1.4 billion as of March 31, 2025[175]