Broadstone Net Lease Taking Selective, Disciplined Approach to Capital Allocation

John Moragne, CEO of Broadstone Net Lease, Inc. (NYSE: BNL), participated in a video interview at Nareit’s REITweek: 2023 Investor Conference, held in New York June 6-8.

Moragne discussed Broadstone’s capital allocation strategy and his view on opportunities and challenges in today’s market, how Broadstone’s leasing levels position it for the rest of the year, and whether Broadstone has taken any notable steps to position itself defensively, given ongoing market uncertainty.

Key takeaways from Moragne’s interview include:

• The market backdrop is “particularly difficult,” with transaction volumes falling off considerably from the last couple of years. Broadstone has responded by taking a selective, disciplined approach.
• Broadstone is excited about a $200 million-plus build-to-suit industrial asset for an operator in the food distribution space. Rent commencement should start in 2024.
• Broadstone has 99.4% occupancy with 100% rent collection, so the portfolio is performing “exceedingly well.” The REIT is also benefitting from low leverage and a high level of liquidity on a revolver facility. “We are as defensively positioned as possible.”
• Broadstone has sold $120 million of assets, giving it accretive capital to recycle.