John Moragne, CEO of Broadstone Net Lease, Inc. (NYSE: BNL), sat down for a video interview at Nareit’s REITweek: 2024 Investor Conference, held in New York from June 3-6. He discussed the macro trends influencing the real estate market and outlined Broadstone's strategic initiatives for the year.
Moragne identified Federal Reserve policy and interest rate fluctuations as significant disruptors, noting that "transaction volumes are at historic lows." He emphasized the need for rate environment certainty to see a rebound in transaction activities.
Despite these challenges, Broadstone exceeded earnings expectations in the first quarter and raised its full-year guidance, Moragne said. He attributed this confidence to successful execution of the health care portfolio simplification strategy.
"We've got about $400 million that we've already closed on this year in terms of new investments," he said, noting that includes new properties and development fundings, with the company redeploying capital faster than anticipated.
Moragne highlighted Broadstone's unique position in the net lease space, focusing on its industrial assets. He explained that more than 50% of the REIT’s annual base rent (ABR) comes from industrial tenants, allowing them to invest significantly in revenue-generating capital expenditures. Additionally, the disruption in commercial real estate lending has presented opportunities for developments.
"We think our differentiated strategy should give people a lot of compelling reasons to invest with Broadstone,” Moragne added.