Broadstone reaffirms narrowed FY22 AFFO outlook

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Broadstone Net Lease (NYSE:BNL) reaffirmed its outlook for full year 2022 and expects AFFO between $1.38 and $1.40 per share, which it had narrowed while reporting Q2 results on Aug. 3.

Consensus FFO Estimate for 2022 is $1.47.

The company said in an Oct. 4 release that the guidance range was based on certain assumptions, which include — investments in real estate properties between $900M and $1B, which has been revised higher (previously $700M to $800M); dispositions of real estate properties between $50M and $75M, which has been revised lower (previously $75M to $100M); and total cash general and administrative expenses in the range of $31M to $33M, which is unchanged.

“Exceptional capital markets execution during the quarter allowed us to lock in a cost of capital that accretively complements our robust pipeline of recently closed and under control opportunities as we move toward finishing 2022 on a strong note,” said CEO Chris Czarnecki.

Broadstone noted that during Q3 it invested $204.5M in 28 properties at a weighted average initial cash capitalization rate of 6.5%.

Investments were heavily weighted towards industrial opportunities ($175.9M), with a smaller amount of restaurant ($12.8M), healthcare ($9.2M), and retail ($6.6M) transactions, the company added.

In Q3, the company sold one property for net proceeds of $1.7M.

Broadstone said that YTD, it completed investments worth $596.9M and currently has $368.5M of investment opportunities under control.

The company added that it collected 100% of base rents due for Q3 for all properties under lease, and its portfolio was 99.3% leased based on rentable square footage, with three of 790 total properties vacant and not subject to a lease as of quarter end.