Broadstone(US: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 $389.5 million[118] - The portfolio is approximately 99.4% leased, with an ABR weighted average remaining lease term of approximately 10.8 years[118] - The company’s properties are diversified across 54 different industries, with no single tenant accounting for more than 4% of the ABR[118] - The total square footage of the portfolio is 39,058,000 square feet[126] - The company has a total of 801 properties with an overall 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 $7.5 million in lease termination income in Q1 2023, contributing to an increase in net lease revenues[138] - Total lease revenues, net for the three months ended March 31, 2023, increased by $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 $98,102,000 for the three months ended March 31, 2023, compared to $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 $53,183,000, making up 13.7% of the total portfolio[126] - The restaurant segment consists of 250 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 $38,843,000, representing 10.0% of the total portfolio[126] - The other industries category includes 39 industries with an ABR of $104,084,000, representing 26.7% of the total portfolio[126] Financial Performance - The company recognized a net income of $41,374,000 for the three months ended March 31, 2023, reflecting a 12.5% increase from $36,773,000 in the previous quarter[151] - Net income for the three months ended March 31, 2023, was $41,374 thousand, a 45.5% increase from $28,441,000 in the same period of 2022[161] - Net earnings per diluted share increased by 31.3% to $0.21, up from $0.16 year-over-year[161] - Funds From Operations (FFO) for the three months ended March 31, 2023, was $81,177 thousand, compared to $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 $74,473 thousand, up from $64,076 thousand in the prior year[180] - Adjusted Funds From Operations (AFFO) for the three months ended March 31, 2023, was $67,485 thousand, compared to $60,401 thousand for the same period in 2022[180] Expenses and Impairments - Total operating expenses decreased by 2.9% from $61,320,000 in Q4 2022 to $59,559,000 in Q1 2023[139] - The company experienced an increase of 11.8% in general and administrative expenses, rising from $9,318,000 to $10,416,000[139] - The company reported a provision for impairment of investment in rental properties amounting to $1,473,000 in Q1 2023[139] - The company recognized an impairment charge of $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 $1.0 billion unsecured revolving credit facility established on January 28, 2022[117] - The company maintained a Net Debt to Annualized Adjusted EBITDAre ratio of 5.1x, below the target of 6.0x[163] - The company has $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 $40,730 thousand for the three months ended March 31, 2023[179] - The company had an outstanding balance 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]