VICTOR, N.Y.--(BUSINESS WIRE)-- #acquisitions--Broadstone Net Lease Announces Two Additional Build-to-Suit Developments for $62.1 million. ...

Core Insights - Broadstone Net Lease has announced its financial results for the fourth quarter and full year of 2025, highlighting significant performance metrics and strategic developments [1] Financial Performance - The company reported a total revenue increase, showcasing a strong growth trajectory compared to previous periods [1] - Net income figures for the fourth quarter and full year indicate a positive trend, reflecting effective management and operational efficiency [1] Strategic Developments - Broadstone Net Lease has made notable acquisitions during the year, contributing to its portfolio expansion and diversification [1] - The company continues to focus on enhancing shareholder value through strategic investments and asset management [1]

Core Insights - Broadstone Net Lease has scheduled its Fourth Quarter 2025 earnings release and conference call, indicating a proactive approach to investor communication and transparency [1] Company Summary - The earnings release and conference call are set to provide insights into the company's financial performance and strategic direction for the upcoming quarter [1]

Core Insights - Omega Healthcare Investors (OHI) stock has achieved a significant performance milestone with its Relative Strength (RS) Rating increasing to 81, up from 78 the previous day, indicating improved technical performance [1][3]. Group 1: Performance Metrics - The RS Rating for Omega Healthcare Investors has jumped into the 80-plus percentile, reflecting a strong upward trend in its stock performance [1][3]. - The latest RS Rating upgrade for Omega Healthcare Investors signifies a rising price performance, with the rating now at 84 [3]. Group 2: Market Position - Omega Healthcare Investors is recognized among stocks showing improved relative strength, highlighting its potential for continued market leadership [3].

Core Insights - Broadstone Net Lease has scheduled its third quarter 2025 earnings release and conference call [1] Group 1 - The earnings release will provide insights into the company's financial performance for the third quarter of 2025 [1] - A conference call will follow the earnings release, allowing for further discussion and analysis of the results [1]

Core Viewpoint - Broadstone Net Lease has successfully closed a $350 million senior notes offering, indicating strong market demand and confidence in the company's financial stability [1] Group 1 - The offering consists of senior notes that are expected to enhance the company's capital structure and provide additional liquidity for future investments [1] - The proceeds from the offering will be utilized for general corporate purposes, which may include funding acquisitions and other growth initiatives [1] - This move reflects the company's strategy to optimize its financing options and support its ongoing growth trajectory in the net lease sector [1]

Group 1 - Broadstone Net Lease has announced the pricing of $350 million in senior notes due in 2032 [1] - The issuance of these senior notes is part of the company's strategy to enhance its capital structure [1] - The proceeds from the notes will be used for general corporate purposes, which may include funding acquisitions and other investments [1]

Group 1 - The net lease sector has faced significant challenges in recent years, with some leading figures struggling to adapt [1] - Realty Income Corporation is highlighted as a prominent example within the net lease REIT space [1]

Financial Data and Key Metrics Changes - The company raised its full year 2025 AFFO guidance to $1.48 to $1.50 per share, reflecting a 4.2% growth at the midpoint, with a second quarter AFFO per share of $0.38, representing a 5.6% increase compared to 2024 [4][34] - Year-to-date bad debt totaled 45 basis points, and the bad debt reserve for the remainder of the year was reduced from 125 basis points to 75 basis points [34][80] Business Line Data and Key Metrics Changes - The company has invested approximately $262.2 million in new property acquisitions, build-to-suit developments, transitional capital, and revenue-generating CapEx [24] - The build-to-suit pipeline includes eight projects totaling over $370 million, expected to generate $28 million of new incremental ABR through 2026, representing a growth of 6.9% off the current ABR [15][26] Market Data and Key Metrics Changes - The company reported a 99.1% lease rate at quarter end, with only two of its 766 properties vacant, and collected 99.6% of base rents due for the quarter, a 60 basis point increase compared to Q2 2024 [31] - The company has closed $113.7 million in new property acquisitions with a weighted average initial cash cap rate of 7.2% [30] Company Strategy and Development Direction - The company is focused on a differentiated growth strategy, emphasizing build-to-suit projects and relationship-based acquisitions to mitigate competition [15][56] - The management team has successfully repositioned the portfolio, reducing clinical healthcare exposure to 2.4% of ABR, while still growing AFFO per share [6][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through tenant credit events, citing successful resolutions in the past [8][80] - The company anticipates attractive mid-single-digit AFFO per share growth in 2026 and beyond, supported by a strong portfolio and committed pipeline [20][21] Other Important Information - The company plans to host an Investor Day on December 2, 2025, to discuss its differentiated strategy and preliminary guidance for 2026 [22] - The Board of Directors declared a $0.29 dividend per share, payable on or before October 15, 2025 [34] Q&A Session Summary Question: Plans for incremental developments in 2025 - The company still aims for $500 million in incremental developments in 2025, focusing on long-term growth [39] Question: Details on acquisitions under control - The acquisitions under control are primarily industrial deals with expected cap rates around 7%, and most are anticipated to close in the third quarter [44][45] Question: Impact of accelerated depreciation on deals - There has been excitement in the market regarding accelerated depreciation, particularly in sectors like car washes, which may drive additional deal flow [48] Question: Competition in build-to-suit projects - The company is not filtering out opportunities but is focused on maximizing the number of deals to choose from, ensuring the best risk-adjusted returns [50] Question: Insights on bad debt guidance - The reduction in bad debt guidance is due to positive resolutions with tenants like Zips, At Home, and Claire's, along with strong performance from the rest of the portfolio [79]

Investment Ratings - Cold Storage REITs: Lineage Inc. (LINE, Buy) [5] - Industrial REITs: Prologis Inc. (PLD, Neutral) [16] - Industrial REITs: Terreno Realty Corp (TRNO, Buy) [31] - Self Storage REITs: Extra Space Storage Inc. (EXR, Buy) [44] - Self Storage REITs: Public Storage Inc. (PSA, Buy) [54] - Retail REITs: Brixmor Property Group (BRX, Buy) [63] - Retail REITs: Phillips Edison & Co (PECO, Buy) [74] Core Insights - The report highlights a mixed outlook across various REIT sectors, with some companies like LINE, TRNO, EXR, PSA, BRX, and PECO receiving "Buy" ratings, while PLD is rated "Neutral" [5][16][31][44][54][63][74] - Economic occupancy for LINE decreased by 290 basis points sequentially and 260 basis points year-over-year in Q1 2025, indicating potential challenges in maintaining occupancy levels [5] - Prologis Inc. is focusing on the implications of tariff policies on global supply chains, which may disrupt tenant activities and leasing demand [16] - Terreno Realty Corp is observing a shift in leasing dynamics post-tariff announcements, with domestic customers becoming more active compared to those operating across borders [31] - Extra Space Storage Inc. is prioritizing occupancy over rent in the current environment, reflecting a strategic shift in response to market conditions [44] - Public Storage Inc. is experiencing a significant impact from regional events, such as fires in Los Angeles, which account for 15% of its NOI [54] - Brixmor Property Group is seeing a steady increase in billed occupancy, which has risen by an average of 100 basis points over the last four years [63] Summary by Sections Cold Storage REITs - Lineage Inc. (LINE) reported a decline in economic occupancy and revenue per occupied pallet, with management expressing confidence in maintaining AFFO/share and EBITDA guidance for 2025 [5][6][7] Industrial REITs - Prologis Inc. (PLD) is navigating the complexities of global supply chains and tariff impacts, with expectations for occupancy and rent growth improvements in the second half of 2025 [16][20] - Terreno Realty Corp (TRNO) is adapting to changes in leasing activity and tenant retention amid tariff uncertainties, focusing on domestic customer engagement [31][36] Self Storage REITs - Extra Space Storage Inc. (EXR) is adjusting its strategy to prioritize occupancy over rent, with a focus on counter-cyclical demand drivers [44][46] - Public Storage Inc. (PSA) is managing its rent versus occupancy strategy while facing challenges from regional disruptions [54][56] Retail REITs - Brixmor Property Group (BRX) is experiencing a positive trend in occupancy and leasing spreads, with a focus on tenant credit and market dynamics [63][66] - Phillips Edison & Co (PECO) is observing volatility in the market due to tariff updates, impacting leasing velocity and transaction activity [74]