Broadstone Net Lease Delivers Strong Q4 Earnings, Sets Ambitious 2025 Growth Plan
Broadstone Net Lease (BNL) has reported a solid fourth quarter and full-year 2024, with net earnings per share (AFFO) reaching $1.43, representing a 1.4% increase compared to the previous year. In his remarks during the company's Q4 conference call, CEO John Moragne highlighted the achievement as "a home run" considering the significant portfolio repositioning efforts undertaken by BNL in 2023.
The company's substantial completion of its clinical health care portfolio simplification strategy is a key highlight of its Q4 results. The strategy involved reducing the company's clinical and surgical assets to just 3.2% of its Average Basis Rent (ABR) from 9.7% at the end of 2023. This move has allowed BNL to focus on its core growth property types, including industrial, retail, and other properties.
Brent Maedl, Director of Corporate Finance and Investor Relations, emphasized that BNL's Q4 results demonstrate the company's continued commitment to executing its differentiated investment strategy. The company's 2025 plan and strategy for growth are ambitious, with goals aimed at positioning BNL for even better growth in 2026 and beyond.
As announced during the conference call, Shekar Narasimhan and Denise Brooks-Williams will not be standing for re-election to BNL's Board of Directors. In their place, Rick Imperiale and Joe Saffire have been appointed to the Board, bringing with them extensive experience in managing investments in REITs and alternative asset strategies.
The appointment of these new board members is seen as a strategic move by the company to further implement its differentiated investment strategy built upon core building blocks of growth. CEO Moragne expressed his excitement about welcoming Rick Imperiale and Joe Saffire to BNL's Board, highlighting their invaluable insights that will benefit the company's continued evolution.
Looking ahead to 2025, BNL aims to continue delivering solid in-place portfolio performance through 2% weighted average annual rent escalations. The company also plans to invest in revenue-generating CapEx with existing tenants, which will help improve the quality of its portfolio and provide better-than-market returns.
The Q4 results demonstrate BNL's commitment to executing its differentiated investment strategy, which is driven by four core building blocks: solid in-place portfolio performance, revenue-generating CapEx, strategic property acquisitions, and a disciplined capital recycling program. As the company continues to execute on this strategy, investors can expect to see further growth and improved returns in 2025 and beyond.
