Broadstone Net Lease: An Attractive Yield For Income Investors

Core Viewpoint - Broadstone Net Lease (BNL) is a diversified real estate investment trust (REIT) that offers an attractive yield and valuation, appealing to income-oriented investors [1] Group 1: Portfolio Composition - The largest exposure of BNL is in the industrial sector at 54.2%, followed by casual dining restaurants at 14.2%, healthcare at 13.4%, and retail at 11.9% [3] - BNL owns 759 properties with 200 tenants across 53 different industries, with a high occupancy rate of 99.2% and a collection of base rents at 99% [9] Group 2: Financial Performance and Outlook - BNL has a net debt to adjusted EBITDAre ratio of 4.8x, which is stable and reflects a trend of lower leverage over the past year [5] - The latest AFFO for the last two quarters was $0.36, resulting in an AFFO payout ratio of 80.6$0.285 to $0.29, continuing a trend of semi-annual increases [6] Group 3: Market Position and Valuation - BNL is trading at a P/FFO of 10.67x, which is more attractive compared to peers like W. P. Carey at 11.55x and Essential Properties Realty Trust at 14.71x [15] - Analysts expect BNL's FFO to decline by -2.49$251.7 million, which accounts for approximately 50% of the targeted assets [11][25] - The company aims to reduce healthcare exposure to below 10% of annual base rent, currently at 13.4% [17]