Broadstone(BNL)2025-02-21 00:47Financial Data and Key Metrics Changes - The company achieved an adjusted funds from operations (AFFO) of 404.8 million, with a weighted average initial cash cap rate of 7.3% and a weighted average straight-line yield of 8.1% [26][35] - The pro forma leverage was maintained at 4.9% with over 500 million in additional build-to-suit developments, with a strong pipeline of new investments [18][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's resilience despite incremental credit risks due to the higher interest rate environment [30][31] - The company anticipates a 3% growth in AFFO per share for 2025, with guidance set at 1.49 per share [18][37] Other Important Information - The company maintained its dividend at 0.29 per share, which remains well covered [37] - The board of directors will see changes with the departure of two members and the addition of two new members, enhancing the board's expertise [8][9] Q&A Session Summary Question: Clarification on investment guidance - The 400 million to $600 million investment guidance includes both regular way deals and build-to-suit investments [41][42] Question: Credit side and bad debt expectations - The guidance includes 125 basis points for bad debt, which is an increase from the previous year's expectations [51][53] Question: Funding for developments - The company plans to fund developments primarily through the revolving credit facility and disposition proceeds [55][56] Question: Zips Car Wash bankruptcy implications - The company is actively negotiating terms and expects to maintain a favorable position despite the bankruptcy [70][72] Question: Changes in competitive landscape for build-to-suit developments - The company is experiencing increased interest from prospective tenants, with solid returns on longer lease terms [81][82]