Broadstone Net Lease Inc (BNL) Announces Q3 2023 Earnings: Net Income of $52.1 Million
BNL invested $16.5 million in four industrial properties and one retail property in Q3 2023.
Net income of $52.1 million, or $0.26 per share, was generated in the third quarter.
Adjusted funds from operations (AFFO) of $70.0 million, or $0.36 per share, were reported.
99.9% of base rents due for the third quarter were collected.
On November 1, 2023, Broadstone Net Lease Inc (NYSE:BNL) announced its operating results for the quarter ended September 30, 2023. The report highlighted the company's investment activity, operating results, and capital markets activity.
Investment Activity and Operating Results
In the third quarter, BNL invested $16.5 million in four industrial properties and one retail property. This included $4.8 million in revenue-generating capital expenditures and $11.7 million in both new and existing development fundings. The company collected 99.9% of base rents due for the third quarter for all properties subject to a lease. The portfolio was 99.4% leased based on rentable square footage, with only two of the 800 properties vacant and not subject to a lease at quarter end.
BNL generated a net income of $52.1 million, or $0.26 per share, and adjusted funds from operations (AFFO) of $70.0 million, or $0.36 per share. The company incurred $10.1 million of general and administrative expenses, inclusive of $1.5 million of stock-based compensation.
Capital Markets Activity
BNL ended the quarter with total outstanding debt of $1.9 billion, Net Debt of $1.9 billion, and a Net Debt to Annualized Adjusted EBITDAre ratio of 4.9x. The company declared an increase in its quarterly dividend from $0.28 to $0.285, a 1.8% increase over the prior period.
We remained highly selective this quarter in light of the current economic environment and rapid increase in interest rates, deploying capital only into previously identified development projects and revenue generating capital expenditures with existing tenants," said John Moragne, BNLs Chief Executive Officer.
Financial Results
For the three months ended September 30, 2023, BNL reported revenues of $109.5 million, a net income of $52.1 million, and net earnings per share - diluted of $0.26. For the nine months ended September 30, 2023, the company reported revenues of $337.9 million, a net income of $156.5 million, and net earnings per share - diluted of $0.80.
Real Estate Portfolio Update
As of September 30, 2023, BNL owned a diversified portfolio of 800 individual net leased commercial properties with 793 properties located in 44 U.S. states and seven properties located in four Canadian provinces.
Balance Sheet and Capital Markets Activities
As of September 30, 2023, BNL had total outstanding debt of $1.9 billion, Net Debt of $1.9 billion, and a Net Debt to Annualized Adjusted EBITDAre ratio of 4.9x. The company had $925.9 million of available capacity on its revolving credit facility as of quarter end.
2023 Guidance
The company affirmed its per share guidance range for the 2023 full year and currently expects to report AFFO of between $1.40 and $1.42 per diluted share.
Explore the complete 8-K earnings release (here) from Broadstone Net Lease Inc for further details.
This article first appeared on GuruFocus.
