Broadstone Net Lease (BNL) Q4 2023 earnings summary

Executive summary

• FY23 AFFO was $1.41 per share, in line with the midpoint of guidance; the portfolio was 99.4% leased and collected 99.8% of annual base rent due.

• Strategy shifts toward core industrial, retail, and restaurant net lease assets, including sales of clinically oriented healthcare properties representing ~11% of ABR.

• Year-end leverage was 5.0x Net Debt to Annualized Adjusted EBITDAre, with $909.6 million of revolver capacity and no material debt maturities until 2026.

Financial highlights

• FY23 revenue was $442.9 million versus $407.5 million in FY22; net income was $163.3 million, or $0.83 per diluted share, versus $129.5 million, or $0.72.

• FY23 AFFO was $277.7 million, or $1.41 per share, versus $252.0 million, or $1.40; Core FFO was $298.9 million, or $1.52 per share.

• Q4 revenue was $105.0 million; net income was $6.8 million, or $0.03 per diluted share, and AFFO was $71.3 million, or $0.36 per share.

• FY23 G&A was $39.4 million, including $6.0 million stock-based compensation and $1.6 million severance and executive transition costs.

Outlook and guidance

• FY24 AFFO guidance is $1.41 per diluted share; assumptions include $350–$700 million of investments, $300–$500 million of dispositions, and $32–$34 million of cash G&A.

• FY24 per-share results are sensitive to the timing and amount of property investments, dispositions, and capital markets activity.

• 37 contracted healthcare property sales, priced at ~$253.0 million, were expected to close in Q1 2024; 75 assets have been identified for sale.