Q2 2025 Broadstone Net Lease Inc Earnings Call Transcript
Key Points
- Broadstone Net Lease Inc (BNL) raised its full-year 2025 AFFO guidance to $1.48 to $1.50 per share, reflecting a 4.2% growth at the midpoint.
- The company successfully repositioned its portfolio by reducing clinical healthcare exposure to 2.4% of ABR while still growing AFFO per share.
- BNL has a robust pipeline of build-to-suit projects, with eight projects totaling over $370 million, expected to generate $28 million in new incremental ABR by Q3 2026.
- The company closed approximately $135 million in new property acquisitions this year and has another $234.6 million in acquisitions under control.
- BNL's portfolio is 99.1% leased, with a high rent collection rate of 99.6% for the quarter, demonstrating strong operational performance.
- Tenant credit events, such as At Home and Claire's potential bankruptcies, have been weighing on BNL's valuation.
- The company faces fierce competition in the traditional net lease acquisitions market, particularly in industrial and retail sectors.
- BNL's stock price and equity multiple do not currently reflect the company's performance and growth potential, according to management.
- The company has not conducted a significant equity raise in almost three years, which may limit funding options for future growth.
- BNL's leverage is at 5.2x net debt, with a willingness to go up to 6x, which could pose a risk if not managed carefully.
Hello, and welcome to Broadstone Net Lease's second-quarter 2025 earnings conference call. My name is Elliot, and I will be your operator today. Please note that today's call is being recorded. I'll now turn the call over to Brent Maedl, Director of Corporate Finance and Investor Relations at Broadstone. Please go ahead.
Thank you, everyone, for joining us today for Broadstone Net Lease's second-quarter 2025 earnings call. On today's call, you will hear prepared remarks from Chief Executive Officer, John Moragne; President and Chief Operating Officer, Ryan Albano; and Chief Financial Officer, Kevin Fennell. All three will be available for the Q&A portion of this call.
As a reminder, the following discussion and answers to your questions contain forward-looking statements, which are subject to risks and uncertainties and that can cause actual results to differ materially due to a variety of factors. We caution you not to place undue reliance on these forward
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