Broadstone Net Lease Provides Q1 2024 Business Update

Author: Benzinga Newsdesk | April 03, 2024 04:13pm

• During the first quarter, we invested $40.1 million, including $37.1 million in development fundings and $3.0 million in revenue generating capital expenditures. The development fundings primarily relate to our previously disclosed state-of-the-art one million square foot tri-climate distribution facility in Sarasota, Florida, which is expected to open in the third quarter of 2024. The facility will be leased to UNFI pursuant to a 15-year net lease with multiple renewal options and 2.50% annual rent escalations. The stabilized yield upon completion is estimated to be approximately 7.2%, and together with rent escalations will translate into a GAAP capitalization rate of approximately 8.3%. The revenue generating capital expenditures had a weighted average initial cash capitalization rate of 8.0%, lease term of 8.0 years, and annual rent increase of 2.5%.
• Through the date of this release, we have $282.7 million of committed investments, including $202.8 million in acquisitions under control, $74.1 million of commitments to fund developments, and $5.8 million of commitments to fund revenue generating capital expenditures with existing tenants. The $202.8 million in acquisitions under control, which we define as under contract or executed letter of intent, include $105.7 million in industrial properties and $97.1 million in retail and restaurant properties. $149.5 million of the acquisitions are off-market deals sourced directly through developer and other relationships. We anticipate these acquisitions will close during April and May of 2024.
• During the first quarter, we sold 37 clinically-oriented healthcare properties for gross proceeds of $251.7 million at a weighted average capitalization rate of 7.9%. The properties represented approximately 48% of our clinically-oriented healthcare portfolio and had a weighted average remaining lease term of 4.4 years. As a result of the sale, our healthcare portfolio decreased to 13.4% of ABR at March 31, 2024. Our industrial, restaurant, retail, and office portfolio represented 54.2%, 14.2%, 11.9%, and 6.3%, respectively, of ABR at March 31, 2024.
• During the first quarter, we collected 99.0% of base rents due for all properties under lease, and our portfolio was 99.2% leased based on rentable square footage, with only three of our 759 total properties vacant and not subject to a lease as of quarter end.

Posted In: BNL