The following is a summary of the Broadstone Net Lease, Inc. (BNL) Q2 2024 Earnings Call Transcript:

Financial Performance:

• AFFO for the quarter was $70 million, or $0.36 per share, showing a 2.9% increase in per-share results year-over-year.

• Adjusted the AFFO guidance range from $1.41 to $1.43 per share.

• For the second quarter, revenue generating activities included $247.8 million of investments, $165.1 million of acquisitions with a cap rate of 7.3%, additional funding of $30.5 million associated with a UNFI build-to-suit investment, and $52.2 million relating to transitional capital initiatives.

Business Progress:

• Successfully executed the healthcare portfolio simplification strategy, with $342.5 million in clinical health care asset dispositions year-to-date.

• Undertook significant growth initiatives including investing in specialized industrial and QSR build-to-suit assets expected to deliver in 2025 and 2026, and continued to develop a strong pipeline of investments totaling $408.6 million.

• Plans on reducing healthcare exposure to approximately 11% of total ABR by end of 2024.

Opportunities:

• The company's substantial investments and commitments in build-to-suit developments ($307 million), focusing on specialized industrial areas such as food distribution, cold storage, and manufacturing, present opportunities for capturing higher capitalization rates and yields.

• Early delivery of contracted developments and strong pipeline of investments under control are poised to offer significant growth in coming periods.

Risks:

• Broadstone Net Lease noted the impact of sustained high interest rates potentially affecting consumer-centric industries and entities with rigid capital structures. This economic backdrop presents credit risks especially given their exposure to such industries.

• There are ongoing concerns with consumer spending sensitivity which might impact the leasing demand and financial stability of tenants.

More details: Broadstone Net Lease IR

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