{"id":815123,"date":"2025-02-19T16:30:03","date_gmt":"2025-02-19T21:30:03","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/broadstone-net-lease-announces-fourth-quarter-and-full-year-2024-results\/"},"modified":"2025-02-19T16:30:03","modified_gmt":"2025-02-19T21:30:03","slug":"broadstone-net-lease-announces-fourth-quarter-and-full-year-2024-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/broadstone-net-lease-announces-fourth-quarter-and-full-year-2024-results\/","title":{"rendered":"Broadstone Net Lease Announces Fourth Quarter and Full Year 2024 Results"},"content":{"rendered":"

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Broadstone Net Lease Announces Fourth Quarter and Full Year 2024 Results<\/b><\/p>\n

VICTOR, N.Y.–(BUSINESS WIRE<\/a>)–
\nBroadstone Net Lease, Inc. (NYSE: BNL) (\u201cBNL\u201d, the \u201cCompany\u201d, \u201cwe\u201d, \u201cour\u201d, or \u201cus\u201d), today announced its operating results for the year and quarter ended December 31, 2024.\n<\/p>\n

MANAGEMENT COMMENTARY<\/b><\/p>\n

\u201cI am extremely proud of our 2024 results, achieving $1.43 of AFFO per share, at the top end of our guidance, and executing on over $400 million in total investments while substantially completing our clinical healthcare portfolio simplification strategy. We are well set up for growth in 2025 and beyond through our differentiated core building blocks of growth, including a strong pipeline of new investments and more than $200 million of high-quality build-to-suit developments scheduled to phase into completion during 2025 and 2026,\u201d<\/i> said John Moragne, BNL\u2019s Chief Executive Officer. \u201cDuring 2024 we grew our high-quality portfolio of diversified properties with strong operating metrics, pruned tenant credit risk and lease rollover risk through targeted dispositions, and maintained a fortified investment grade balance sheet with low leverage at 5.0x and ample liquidity to capitalize on additional investment opportunities. We are proud of our accomplishments in 2024 and excited for what\u2019s to come in 2025.\u201d<\/i><\/p>\n

\nAs of December 31, 2024, we have substantially completed our healthcare portfolio simplification strategy, reducing our clinical & surgical assets to 3.2% of our ABR from 9.7% at the end of 2023. As a result, we updated our core property types to industrial, retail, and other to realign our portfolio reporting and emphasize our core growth property types.\n<\/p>\n

FULL YEAR 2024 HIGHLIGHTS<\/b><\/p>\n\n\n\n\n
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OPERATING<\/b><\/p>\n

RESULTS<\/b><\/p>\n<\/td>\n

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  • \nGenerated net income of $169.0 million, or $0.86 per share, representing a 3.6% increase compared to the same period in the prior year.\n<\/li>\n
  • \nGenerated adjusted funds from operations (\u201cAFFO\u201d) of $282.0 million, or $1.43 per diluted share, representing a 1.4% increase compared to 2023 and achievement of the top end of our guidance range for 2024.\n<\/li>\n
  • \nIncurred $38.0 million of general and administrative expenses, representing a 3.6% decrease compared to the previous year. Incurred core general and administrative expenses of $29.3 million, which excludes $7.4 million of stock-based compensation, $0.9 million of non-capitalized transaction costs, and $0.4 million of severance and employee transition costs, representing a 7.9% decrease compared to the previous year.\n<\/li>\n
  • \nPortfolio was 99.1% leased based on rentable square footage, with only two of our 765 properties vacant and not subject to a lease at quarter end.\n<\/li>\n
  • \nCollected 99.1% of base rents due for the year for all properties under lease.\n<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
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INVESTMENT & DISPOSITION ACTIVITY<\/b><\/p>\n<\/td>\n

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  • \nInvested $404.8 million, including $234.3 million in new property acquisitions, $115.3 million in build-to-suit developments, $52.2 million in transitional capital, and $3.0 million in revenue generating capital expenditures. The completed acquisitions and revenue generating capital expenditures had a weighted average initial cash capitalization rate of 7.3%, weighted average lease term of 10.8 years, weighted average annual rent increase of 2.4%, and a weighted average straight-line yield of 8.1% on new property acquisitions. Total investments consist of $276.6 million in industrial properties and $128.2 million in retail properties.\n<\/li>\n
  • \nSubsequent to year end, we invested $32.2 million, including $22.3 million in build-to-suit developments and $9.9 million in acquisitions. As of the date of this release, we have a total of $200.7 million in remaining estimated investments for build-to-suit developments to be funded through the third quarter of 2026.\n<\/li>\n
  • \nAs of the date of this release, we have an additional $103.5 million of acquisitions under control and $5.4 million of commitments to fund revenue generating capital expenditures with existing tenants.\n<\/li>\n
  • \nCommenced contractually scheduled rent with our build-to-suit tenant, United Natural Foods, Inc. (\u201cUNFI\u201d), based on the substantial completion of construction in early September 2024, with the final funding and full construction completed in January 2025. The capitalization rate upon rent commencement was 7.2%, and, together with rent escalations, represents a straight-line yield of 8.6%.\n<\/li>\n
  • \nDuring the year and through the date of this release, we sold 58 properties for gross proceeds of $364.0 million at a weighted average cash capitalization rate of 7.8% on tenanted properties, substantially completing our strategic clinical healthcare portfolio simplification. As a result, we updated our core property types to industrial, retail, and other to align with the composition of our remaining portfolio.\n<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
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CAPITAL MARKETS ACTIVITY<\/b><\/p>\n<\/td>\n

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