Victor, New York, April 3, 2024–(BUSINESS WIRE)–Broadstone Net Lease, Inc. (NYSE: BNL) (“Broadstone”, “BNL”, “Company”, “we”, “our”, or “us”) today announced that Additionally, the company announced that it will participate in the Morgan Stanley Triple Net REIT Day on April 9, 2024.
Business Update for Q1 2024
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In the first quarter, we invested $40.1 million, including $37.1 million in development funds and $3.0 million in proceeds generating capital expenditures. The development funds primarily relate to the previously disclosed state-of-the-art 1 million square foot tri-climate logistics facility in Sarasota, Florida, which is expected to open in the third quarter of 2024. This facility is leased under UNFI. Convert to a 15-year net lease with multiple renewal options and 2.50% annual rent increases. Upon completion, the stable yield is estimated to be approximately 7.2%, and when combined with rent increases, the GAAP capitalization rate will be approximately 8.3%. The income generating capital expenditures had a weighted average initial cash capitalization rate of 8.0%, a lease term of 8.0 years, and an annual rental accretion rate of 2.5%.
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As of the date of this release, the Company has made $282.8 million in managed acquisitions, $74.1 million in development capital commitments, and $5.8 million in capital expenditure generating capital commitments with existing tenants. We have committed investments of $282.7 million. The $202.8 million in acquisitions under management, which we define as under contract or executed letters of intent, includes $105.7 million in industrial real estate and $97.1 million in retail and restaurant real estate. Masu. Of the acquisition price, $149.5 million was an off-market transaction financed directly through developer and other relationships. These acquisitions are expected to be completed between April and May 2024.
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During the first quarter, the Company sold 37 clinically oriented healthcare properties for total proceeds of $251.7 million and a weighted average capitalization rate of 7.9%. These properties represent approximately 48% of the Company’s clinically oriented healthcare portfolio and have a weighted average remaining lease term of 4.4 years. As a result of the sale, our healthcare portfolio decreased to 13.4% of ABR as of March 31, 2024. Our industrial, restaurant, retail and office portfolios accounted for 54.2%, 14.2%, 11.9% and 6.3% of ABR, respectively. March 31, 2024.
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During the first quarter, the Company collected 99.0% of base rent on all properties under lease. Our portfolio is 99.2% leased based on leasable area, and as of the quarter, only three properties out of a total of 759 properties were vacant and not subject to lease. end.
Management commentary
“As part of our healthcare portfolio simplification strategy, we have completed the sale of $251.7 million of clinically oriented real estate, with the entire net proceeds scheduled to be reallocated to $282.7 million of investments under management. I am pleased to announce this.” John Moragne, Chief Executive Officer of BNL, said: “With the portfolio’s strong performance in the first quarter and balance sheet fundamentals remaining strong, this is critical to building the momentum needed for multiple expansions, long-term growth, and increasing shareholder value. “We remain optimistic about the future.”We remain confident in our ability to execute on our strategic vision and drive sustained growth across our diversified real estate assets. ”
About Broadstone Net Lease Co., Ltd.
BNL is an industrial-focused, diversified net-lease REIT that primarily invests in single-tenant commercial real estate properties that are net-leased on a long-term basis to a diverse group of tenants. Leveraging an investment strategy backed by strong fundamental credit analysis and prudent real estate underwriting, as of March 31, 2024, BNL’s diversified portfolio includes 752 properties in 44 U.S. states and 7 properties in 4 Canadian provinces. The properties consist of 759 individual net lease commercial real estate properties. We work with all types of real estate: industrial, restaurant, healthcare, retail, and office.
Forward-looking statements
This press release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans and strategies. Masu. , both business and financial outlook. Such forward-looking statements generally include “outlook,” “potential,” “could,” “intend,” “should,” “potential,” “aim,” “approximately” You can identify them by the use of forward-looking terminology, such as “. “anticipate”, “anticipate”, “expect”, “intend”, “anticipate”, “estimate”, “plan”, “will”, “believe”, “continue” , or the negative of these words, or other equivalent words. Forward-looking statements, including our 2024 guidance and assumptions, involve known and unknown risks and uncertainties that could cause BNL’s actual future results to differ materially from expected results. There is a possibility. limited to increases in inflation rates and interest rates, local real estate conditions, the financial health of tenants, real estate investments and acquisitions, the timing and uncertainty of completion of these real estate investments and acquisitions, and uncertainty regarding future distributions to shareholders. It will not be. . These and other risks, assumptions and uncertainties are discussed in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 22, 2024. Described under “Risk Factors”. Please read it. It is available on the SEC’s website (www.sec.gov). If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, actual results may differ from those indicated or anticipated by such forward-looking statements. The results may differ significantly from those shown. You are therefore cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation, and does not currently intend, to update any forward-looking statements after the date of this press release, whether as a result of new information, future events, changes in assumptions or otherwise.
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contact address
Company contact:
brent meadle
Director of Corporate Finance and Investor Relations
brent.maedl@broadstone.com
585.382.8507
