VICTOR, N.Y. - Broadstone Net Lease, Inc. (NYSE: BNL), a diversified net lease real estate investment trust (REIT), has announced its business activity through September 8, 2024, with year-to-date investments totaling $375.6 million. This includes $234.3 million in new property acquisitions, $86.1 million in development fundings, $52.2 million in transitional capital, and $3.0 million in revenue-generating capital expenditures.
The company has also committed $453.7 million to fund developments and $8.0 million for revenue-generating capital expenditures with existing tenants. These commitments are expected to deliver rent commencement by the end of 2025 for approximately one-third of the developments, with the remainder in the first half of 2026.
In a recent move, Broadstone sold 2.0 million shares of common stock for approximately $36.5 million under its ATM program. The sales, which have not yet settled, can be completed at the company's discretion any time before September 2025.
Broadstone's industrial property investments dominate its portfolio, with $248.6 million allocated to this sector, followed by $124.0 million in retail and restaurant properties, and $3.0 million in an animal health services property.
The company has commenced contractually scheduled rent with United Natural Foods , Inc. (NYSE:UNFI) following the substantial completion of construction in early September 2024. Upon finalizing additional development expenses in the fourth quarter of 2024, UNFI is projected to become Broadstone's second-largest tenant based on annualized base rent.
Furthermore, Broadstone has resolved negotiations with Red Lobster amidst the restaurant chain's bankruptcy proceedings. This resolution ensures the continuation of operations at all 18 Broadstone-leased Red Lobster locations, which represent 1.6% of the company's annualized base rent (ABR) as of June 30, 2024.
CEO John Moragne expressed confidence in the company's growth strategy, emphasizing the development funding pipeline as key to future accretive growth.
Broadstone's portfolio includes 777 individual net leased commercial properties across the U.S. and Canada, spanning various sectors such as industrial, restaurant, healthcare, retail, and office property types.
This report is based on a press release statement from Broadstone Net Lease, Inc.
In other recent news, Broadstone Net Lease has seen a series of developments. Truist Securities has adjusted its financial outlook for the company, raising the real estate investment trust's price target from $16.00 to $18.00 while maintaining a hold rating. The firm revised its adjusted funds from operations (AFFO) estimates for the upcoming years, with a slight increase for 2024 and a reduction for 2025. These changes are attributed to a shift in focus towards development spending over acquisitions.
Broadstone Net Lease also reported a robust second-quarter performance, maintaining its full-year AFFO guidance. The company has an investment pipeline of approximately $408.6 million and generated an AFFO of $70 million, or $0.36 per share. As part of its strategy, Broadstone is reducing healthcare portfolio exposure and focusing on industrial and quick-service restaurant build-to-suit investments.
In addition to financial developments, Broadstone announced changes in its executive leadership. Timothy D. Dieffenbacher, the company's Senior Vice President, Chief Accounting Officer, and Treasurer, has resigned, with Jennie O’Brien set to succeed him. These recent developments highlight Broadstone Net Lease's strategic shifts and strong financial performance.
InvestingPro Insights
In light of Broadstone Net Lease, Inc.'s (NYSE: BNL) recent business activity, the company's financial health and stock performance metrics offer a comprehensive picture for current and potential investors. As per InvestingPro data, Broadstone Net Lease boasts a robust market capitalization of approximately $3.44 billion, reflecting investor confidence and the company's significant presence in the real estate investment trust market.
The company's price-to-earnings (P/E) ratio stands at 21.92, indicating how much investors are willing to pay for one dollar of earnings. This metric, along with a slightly higher adjusted P/E ratio of 25.82 for the last twelve months as of Q2 2024, can help investors gauge the company's valuation compared to its peers. Notably, Broadstone has maintained impressive gross profit margins, with a remarkable 94.68% reported for the same period, underscoring its operational efficiency and strong control over costs.
InvestingPro Tips highlight several key factors that may be of interest to shareholders and potential investors. Broadstone Net Lease has a record of raising its dividend for four consecutive years, currently offering an attractive dividend yield of 6.36%. This consistent growth in dividends is a testament to the company's commitment to returning value to its shareholders. Additionally, Broadstone's liquid assets exceed its short-term obligations, which is a reassuring sign of the company's liquidity and financial stability.
For those looking to delve deeper into Broadstone Net Lease's performance and future outlook, InvestingPro offers numerous additional tips. In fact, there are 7 more InvestingPro Tips available, which provide insights into the company's profitability, stock performance, and analyst predictions for the year.
Overall, Broadstone's strategic investments and development funding pipeline, coupled with its strong financial indicators and positive stock performance, present a compelling case for investors considering adding BNL to their portfolios.
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