BNL - Earnings call transcript Q4 2020 | Broadstone Net Lease, Inc.

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Operator

Hello and welcome to Broadstone Net Lease’s Fourth Quarter 2020 Earnings Conference Call. My name is Carrie and I will be your operator today. Please note that today’s call is being recorded. I will now turn the call over to Kevin Fennell, Senior Vice President of Capital Markets at Broadstone. Please go ahead.

Kevin Fennell

us call. Broadstone joining quarter Lease’s for earnings XXXX you today Net for fourth Thank call, will today’s our On you CFO, Czarnecki CEO, Ryan and Chris Albano. hear from our

refer the materially. risks are subject or pandemic. Chris differ differences. call risks XX, we our of results remind Form XXXX, to caution Any want now to Before during this forward-looking you not that are including, of XX-K December Should or more to more not to actual filings, contains will the those turn a may we the which factors everyone ended one discussion related and statements begin, to made date that detailed provided uncertainties year you to statements, materialize, Czarnecki. forward-looking following undue the our forward-looking We call but as to these of limited for the on this CEO, reliance conference uncertainties, SEC such of for only I statements cause presentation COVID-XX ongoing including call. over risk the and may our place these

Chris Czarnecki

a in expect B&L for we hope the months analysts that past joining Thank from earnings and I X XXXX the to quarters off and they B&L up IPO. almost to talked that with roadshow, should are about safe IPO then during we everyone. start to after leading you, and closing, investors the what XXXX the everyone our healthy It’s call. hard is believe Kevin welcome and QX to

on our on while our quarters focus high continued the of maintaining of building XXXX, the already-strong and leased percentage first First team from and foremost, a management three intense communicated collections also assets. results portfolio

intention an focus we to lease and strategy our industrial, investment executing with net QSR on healthcare, overweighted properties. retail continue communicated on select diversified an Next,

an important and markets last I The update substantial and the debt long-term call. grade objectives source rating B&L all as our capital. several gaining initiatives, these a tackled of achieving an outlined excited investment team progress we very of bond access made to the capital am and XXXX we future since have market Finally, to including second credit into provide in QX, on

most portfolio quarter. ended we in well, efforts the With were perform vaccination the our in XXXX, tunnel. underway, lease near regarding daily vaccine finally coming of country, XX% reducing collection continued the the supply updates are that appears we end distribution across and broad to for As of case at and among light our be incremental net fourth the and there at encouraged best counts the space, results to

been Ryan deploying Our has to strengthen provide collections focused XXXX team and February’s late trends on in September a raised in accretive the only XXXX, continued January our moment. update capital we Since will into and IPO the have an on into results acutely acquisitions.

across $XX term, a first briefly leasebacks warehouse highlight the real square completed we brewer evenly of distribution are the existing acquisitions average characteristics. very of purchased tenants foot industrial largest transactions, property with and repeat assumptions, the lease were want sourcing during as lease and in approximately X% the property $XXX.X term distributes weighted for its newly quarter’s The for X.X% quarter for XX Broadstone’s quarter rent and heavily bottling at was representing total of of outside Minnesota of with The estate rent brokers as production add-on complementing overall and channels, investments. though complementary to investments third-parties We cap years year including weighted XXX,XXX two XX.X facility. types transactions between and for The the center skewed were as manufactures contract and to to fourth a core transactions, a escalations. and approximately Our in and remaining and successful types has sale the investment opportunities nearby split total. escalations leading remaining average annual existing sourcing X.X% serves tenanted the in acquisition facility, a tenant’s weighted comprising Acquisitions developers. our for key include XX the best-in-class of escalations. towards for the the The we year company The located leases multiple transactions lease in I duration by strategically long beverages itself portfolio, mix channels rate as of million. cash and million. diversified property annual Minneapolis, is portfolio’s our facility distribution XX% and were lease and X asset closed properties average rent well existing operations terms in and it

term $XX.X X located master exposure We XX our continued annual million. for X% broadly lease existing properties. of and space these master our demonstrated Jack Jack’s to and perform remaining well footprint. lease restaurants, also the X states rent to master and was the added approximately increased approximately USR second-largest tenant in acquisition during quick-service with resiliency restaurants The connection to increases across of new specifically Family provides for with the grow lease pandemic, its years the

our a and with in we source the our in million opportunities the both assets. value weighted will predict, $X X.X% tenant the during total, million our The our existing routinely on incremental fourth two investments We invested that which which lease average for and these return weighted of existing will In investments portfolio engage a difficult to generate quarter, these create average $XX.X we return. incremental properties. portfolio, generate to X.X% like XXXX, we remaining be base of size tenants, term. over invested tenant timing In we but also can made

million sales dental several of clinics of original we assets, X During fourth approximately cap generally the exposure properties over proactively years. $X including on sold reducing the price. representing at million have weighted several approximately average X.X% These that the rate $XX for non-core properties, a over we been quarter, purchase our of tenanted gain to were past

for properties at XX proceeds over of rate net of sold properties, price. million we weighted $XX.X year, representing original tenanted million on $X.X the purchase cap of average For X.X% gain a a

leases As XX.X from declined our XXXX. X Occupancy former now across leases been XX in assets states Canada. commencing at site. average portfolio in X properties with XX.X% XX just XXX Art remaining which reported was of driven by This includes change The and December the We X XX, rent had basis of was annual property Art of including X weighted retendered XXXX, a largest have and former X.X% lease primarily quarter. points our at leased had vacant short-term during of QX term escalations. expiring years, the sites approximately with Van Van year-end, portfolio

XXXX. and forward in X.X% through lease are highly representing total of Our maturities also ABR XXXX a of X.X% of manageable, ABR just

As part provide of ongoing they evaluate updates occur. process, X-year lease as expirations our basis potential we and property maturities we’ll and a relevant management forward-looking on

it during navigate makes number additional near-term debt one as exposure, Red refinanced progress some to pandemic the provide quarter, flexibility financial should normal returning Finally, tenant and maturity naturally Lobster, operations. our company which to continues the the its large

also our continue initial notes bank with This capital immediate term strong diversifies remains access substantiated us existing further of we majority the was comes primarily second rating credit our and to sources an rating costs January. with balance rating sheet public a and raised benefits debt, the future of funding in investment-grade interest with received with of bond in for as deploy reduced recently we financial A BBB line by as outperformance to stable balance sheet provides form and the significant by flexibility our strength in credit. we the initial outlook market offering. Our credit our portfolio our on investment-grade issuance. us S&P providing credit revolving of The of

historically sequence in experience to and With year. the at evaluating investment we opportunities cross certainly the of million. of While of opportunities of of during closing low access about activity just quarter, The north first guidance with the speak midpoint to pandemic’s team Ryan is competition, seeing the have are in liquidity moment, $XXX will of acquisitions and strong at the our quarter. has strong our as we shape capital, typically take near in-sourcing rates XXXX active $XXX more interest support following expect ample not potential we the growth continue asset currently near-term active to opportunities but new expanded enhanced flows a complete to we opportunities. volume quality creation million sufficient and and of source continuation objectives. types, between we investment a year-end, formal combination lighter our million highly to but We have of $XXX have acquisition

while attractive occurring any ensures ability team experienced where and strategy flexibility also within diversified property potential us our pursue find effects have single be affords each of before, also within types. negative sector said returns, our to to any limiting we disruption of highly growth, the have I tenant. with the It or As we selective the single risk-adjusted

proud focus team patient, opportunities greater quarter backdrop to degrees to selectivity of the management experiencing for on to traded reviewing detail. am very as results remain our has we in and and type Ryan be instituting are higher now focused pandemic. while of committed The in the significant team’s full and value what requires publicly and to turn call by company am levels our naturally excited risk-adjusted We property market I generating our first I’d in greater each energy within the sectors opportunities to we our our us. have accomplished shareholders. I of and attractive over nimble ahead long-term from a disruption creating sometimes of go like returns current over us and

Ryan Albano

quarter all sheet you million We by an ended I’d overall and adjusting for our net facility. and dividend update paid cash Chris and to on as of on the us begin $XX providing the net million have adjusted on of EBITDAre with $XXX XX balance January credit X.XXx December Thanks, joining to fourth after today. our availability liquidity We of in debt, thank like full currently XX. $X.X carried resulting billion of debt for position.

bank of savings. we XX represents a received the Chris BBB basis as in points, by million of As of decreased which unsecured from February on X, And rating loans term $X.X S&P January. rates interest annual $XXX over our million mentioned, interest

generation, effectively internal we investment returned In financial collection offer to like robust as profile. activity our profile, our to cash strategy, prudent Our continue to insight while to collections our flexibility generation together to on leverage to strong robust rent internal diversified provide would detail significant I levels. have cash provide collection as of sources capital maintaining ample further multiple come our driven access execute our credit resilient on and liquidity we pre-COVID efforts by to near-term

which rent, we we quarter the fourth high of XX% third the collected favorable in we XX% quarter today, trend continues consistently when of as mentioned, experienced rates. Chris As observed collection

January as have rent today, respectively. of collected we and XX.X% of and Additionally, February, for XX.X%

December of $X we are less of receive than million XX, remaining deferred to scheduled rent. As

As agreed, rent as percentage million of agreement, abatement pay ended. in sales did of February abatement The clause QX the rent the periods deferral have X, which all as we XXXX we received single granted the XXXX, for in partial quarter. to totaled fourth rent continued $X.X during and we and we additional in

since have of we request additional any received the for pandemic. the Finally, early relief rent part not

our briefly assets continued substantial moment results, a and previously in financial to I’d leased Before to the Van moving progress take like by of our Furniture. Art resolution cover on

an X achieve asset, XX-year commencement later outcome representing the quarter, footage smaller the one rents. with business to a for and rents. of bankruptcy Art entered XX that subsequent to former to fourth remaining approach Signature largest the the to lease management mattress prior into the our both our related assets proceeding assets, under XXX% on We of happy leading has last year navigating XX.X% the approximately in with patient representing rents footage of experienced at square XX% operator, of XX been square call to these mentioned long-term are years. we in lease Van XX-year of we leased prior quarter a And leased leases the Art mattress that retailer second of strategy American this who the we Van regional XX% were for to quarter able prior over furniture and methodical In we XX% for of asset for We upon with in assets. end,

sale matter than Art opportunities and Van consider of which resolved. Van We effectively pursuing are assets, represent re-leasing two and currently footage the Art square be to X.X% X.X% our final former the total or for of ABR only we less

of AFFO reported per we diluted results, financial quarter, representing million QX $XX.X our in to turning Now fourth $X.XX share. the

with performance basis coupled were per December full a the from results acquisitions closings on our execute which serve as the rate primarily is our per of from basis first While is contribution per the full QX which compared late a this share to public estimate the as since in run plan. post-IPO for view, business see savings provide share shares performance especially attributable all nearly a company connection additional the QX. decrease to the of QX we considering additional in XXXX. IPO, we beginning in $X.X This and with QX growth costs, of by In expect interest issued full share quarter when comparison the debt results earnings for to with reflect the IPO, on partially million line offset our our These expectations, of repayment. of impact

For G&A million driven full expenses as G&A as notably, total cash sequential by of of $X performance-related $X.X a expenses public incremental the compensation. in fourth of G&A. quarter, increase cash D&O well was insurance million company from The we costs including in quarter incurred largely

continue time as discussed, expenses to structure. achieving our portfolio growth scale expect to As our with we of respect previously outpaces over economies G&A cost

guidance our during ramp we gain to continued the the providing after IPO, year. clear the are have into we today course expenses expect insight pipeline initial As refine acquisition that to we XXXX of for and operating

of rate following expenses million our occurred that million per X.X% $X.XX share expect between represents markets sensitive assumptions: cash share compared on the activity, diluted during $XX key noting between volume XXXX total particularly and that to to and run we volume and million annualized. million. our on to $XXX rate implied consider of the the both year. acquisition the worth between XXXX and be $XXX based based our investment and capital $XXX report per G&A XX.X% amount of $XX an year, growth and million, million view are the results $XX for For and It’s we guidance AFFO full total to timing which is share, to $X.XX what results year between per QX This dispositions activities disposition

of on XXXX XX, XX, per a XX, March unit February record before our XXXX, meeting, April distribution our directors at Finally, board to OP share common payable set in $X.XX or holders of XXXX. as

to continue will base in low and board increases we earnings to XX% target range. future to grow our it evaluate Chris. our will long-term I our that, We dividend payout a intend with back over as AFFO turn to to ratio the With mid-XX%

Chris Czarnecki

the I prepared the we by set demonstrate capital market our execute our disposal. expanded by long-term. quarter remain in Ryan. to strategy remarks Thanks, excited reiterating and will at the to Fourth set the that ability continued end of our market prove quality opportunity our the over tool and

to risk-adjusted proud returns. of what continuing positive attractive and B&L long-term on hard This our great creation for our can to concludes an Operator, am on and I the you time XXXX. team’s forward for line are you Thank the focused We for afternoon. deliver prepared look emphasis shareholders attention a remarks. questions. value your with this open now results and work incredibly up

Operator

Instructions] The is Caitlin [Operator Goldman question of first Sachs. Burrows from

Caitlin Burrows

to want rates Hi, think in I Acquisitions were everyone. a lot QSR, etcetera. in of healthy industrial, afternoon. be the volumes cap and sectors investors that Good quarter in,

detail on the you So how can just six give transactions you some more quarter? in the sourced

Chris Czarnecki

Yes, notes the hey, was that, during very Chris. sourcing quarter. well I diversified think it’s of our Caitlin, around Couple

larger industrial developer before. we our that was with with the One acquisitions transacted of had

prior And industrial market. with to one front, shelf was transaction healthcare then we us. we have put existing the fairly on was The that on was existing was then an to So transactions the of that expand Also, had that and chosen time. to for with the an seller COVID looking within the as came and one other and back started outbreak on QSR over tenant been that tenant natural working it the well.

as we regard. one also for in opportunities, the first brokerage then broad line that sourcing that in well network smaller working reengage of So on and the sort of so to were matter very industrial

Caitlin Burrows

of thinking And your million. it, how acquisition activity midpoint, see I guidance the Got at to prepared million does does how $XXX you that in the historical average XXXX compare acquisitions okay. you that then mentioned to was this today out assumes the compare about $XXX and to levels? historical pipeline think it remarks

have compares what I on Now, that was you in past? how the to wondering just worked

Chris Czarnecki

Sure.

I think think for with whatnot. average, consistent the XXXX, historical XXXX and and XXXX obvious call X-year at our, you the $XXX is the IPO excluding fairly if it, million between with reasons midpoint

that’s little of So accomplishable Sitting time referenced very diversified on depth range I the types team a relationships. that like industrial. those focused quarter certainly set property occasionally million today, quality but nicely but that can a like that of be the opportunity across really we number quieter, first the all select bit feel their point feels $XXX given here we a and the what medical, virtually team is on, is it’s working the the in retail, in are

us where amount and very with our keep selectivity that’s And opportunities our work keep to perspective, for from sign it and so focus on to just needs high a the to our good of be.

where about I So moment. is am at that good feeling the

Caitlin Burrows

know company just on it, costs. maybe touched And Got how public G&A were guys side, on okay. there I then the last you more one,

think the not do of going call how to that or then just think be it then forward, X would second we public or costs? increase you company you As half ‘XX more that you growing out then is it see those when And due also the years? next, further, about say you XXXX over stable the and do go should versus

Chris Czarnecki

of a the it. longer-term. of sort increase saw we cost was we give towards obviously of cost with thought insurance that a Sure. public is a our where information, the but there would from you factored increase one that We sort I guide in now. G&A is D&O did increased quick in drove QX The will D&O company be capacity that in biggest lot

longer And So to want maybe Ryan, the term? you think estimate. helps talk that I then

Ryan Albano

Sure.

we cash In it take. the or give term, thinking we are a maybe line in $X and are mark with million looking longer communicated XXXX call, at about terms right we during the what the is are where we way quarter of G&A and QX

in for we our guidance of and there kind whole. as came we then we what So, about and carries QX through XXXX realized think that a as

As we we as G&A, of migrate probably longer migrate G&A to into far top the here forward longer with in view, as we the a certainly I overall sort only add cost incremental incremental the term say expect growth our move of sense in would term. into line outpace we

Caitlin Burrows

Got okay. you. it, Thank

Operator

from Paolone is of JPMorgan. question The next Anthony

Anthony Paolone

thanks. Yes,

healthcare unique. Your vertical fairly is

don’t opportunity You about big the yields could lease there you many over XX think a and just set and that hear how to next peers the that focal as net your about talking about can flow? talk be months of just as point, deal

Chris Czarnecki

Sure.

hospital with a is did certain tenant, bit. of are transactions there. we does some historical one So down. QX, It an benefit touch as that in rates and that a some area focus that as The their or transaction regional – regional Cap QX on of Xs, also the and of tenants, again, existing a interesting transactions groups growing a opportunities bit little volume does Tony, mid in a everybody, of some niche-oriented they specialist know well. contemplating one then at around either practices. are contemplating you adjacencies affiliated on in and more working we’re large it’s a circumstances It’s well. are look is healthcare. the move moment, transactions the we for do think who in we’re in where of that up I opportunity group, in this, of you certainly gross little physicians’ we that focus number the set within campus And our that being And with there currently there. but for if was at an have somewhere portfolio There one large flex existing are maybe physicians are the

Anthony Paolone

I could that with maybe as if thank just that rent Okay, I to Ryan, down XQ, happens that how to for forward us you didn’t to fast stays just what just other of you. it on item, roll help then But write percentage we you or how was to touch related is structured want and enough. think number And whether like the it’s mentioned also, kind about my in and abatement? think

Ryan Albano

Sure.

it In off show see terms of QX last up. burned time in really that percent abatement itself rent is January. The number. The we in

So incremental we QX. it during see shouldn’t I’d And fairly forward. that going say was

Anthony Paolone

Okay, sure.

thinking run rent about to roll much base the have out? of adjustment that an are laid just that we We like really so use for make don’t rate, the in kind you guys

Ryan Albano

Correct.

Anthony Paolone

Van Perfect. of just around backfilling process? Art magnitude dollar the any is annualized detail And or the rent incremental what order amount other the from was

Chris Czarnecki

I That site follow-up figure of rents. was was Ryan, at struggling you. a don’t you. sorry, XX% maybe the put of but for dollar that that top we the I’m off with that done my know. to done – to released we on prior head, can I’m large at

Ryan Albano

mentioned. location But the pretty released during XX%, had and we rents. released that rents released that at X but out after of we larger released then that of end of the quarter, QX, a we we that the again, amount-wise. about the nominal I talked as Chris that No, – we XXX% as asset nature, call at dollar and small follow about at has it, released The the prior we we was can the one think last about the smaller of in about initially previous XX XX%

Anthony Paolone

you. those Okay. get I will rents. go back and will Thank

Chris Czarnecki

you. Thank

Operator

is next Capital of Markets. John from BMO question The Kim

John Kim

Good afternoon.

Chris Czarnecki

afternoon. Good

John Kim

expected narrow acquisition take retail or a rise in spread volume Just if just or right are now? than to the I’m if rates, to wondering you lower there given other more that sectors just that attractive willing risk you interest is or is become

Chris Czarnecki

that’s a Sorry, repeat the just piece last you choppy for me, John. could little got

John Kim

the Are Sorry. weighting interest this more willing your of current or other of spread to you at environment, rates look as far acquisitions? do rates between outside narrow in asset types the you as take and cap industrial

Chris Czarnecki

Yes.

our maybe think is robust. what I that’s fundamentally, move of property the competition some the view on selectively model between is of of to sort ability I – strength types, the where most depending the

ways So I the But else. heard is fight than you we quite within one have – think that more and the it’s industrial our anything we probably our probably today strong certainly few some over ability more weeks enough keep space of competition have to done as that to for to that distribution this industrial do peers about from the last is spreads robust, against before. and thinking that’s try even the generic adjacencies

of then we So at as opportunities done alluded stronger. those spread in you little asset to is And also some moment, risk-adjusted there other classes a return. looking bit to, to are think processing which keep our we better the the food some can we’ve a at our and ways where past, pivot

bit opportunities, care So and part that the certainly view, little later a at ultimately with ability in are industrial the regard well. to our health to year solid QX a as but add still bigger of select little moment QSR see the thinking about and bit retail then which

I there Ryan, if there. don’t throw is I know So should in anything

So...

Ryan Albano

certain say, thought industrial to little guidance in or our given different feel full we could confident we ability Chris costs mentioned, very higher I the less general guidance interest that year in in the those add how contemplated about in would feel our given but in impact. borrowing number the or that, confident diversified very world. could source our investment on that And spreads bit certainly of just the spread and acquisition And and strategy in that frankly, of some areas whatever, knowing the front, we an a has and to where maybe in we as say I if rates compression compressed be areas, – numbers

Chris Czarnecki

where us, That’s great. and is That’s confidence so from said, in we the today. well the especially guidance sit strong

John Kim

sales as year? earnings I And half the anything on there of well guess, the guys seasonality that impact question. Okay. mentioned you side acquisitions, timing of But you and do would more be back in year acquisitions two-part if your quarter whether your the to which as the tends change is and One, the is this also and again, second more view? the the will on spread the could provide the of you more And the dispositions from year? point or of to that beginning be that seller’s half second color pace not towards, could or any or evenly seasonality, acquisitions of in

Chris Czarnecki

Yes.

maintain gives where the working of future opportunities, So and pipeline a changing bit at quarter doing and one sit see longer-term terms I of focused with guidance tenants weighted, the that in and the I that, probably at commitment our seasonality half, but long-term. but moment the to AFFO in pipeline. really the keeping if the back second But What on midpoint I’d near-term ago. our impacts weighting business towards it has a into on we’re it’s go of their is the you part timing and about timing, and the exists, I the we vibrant the as guidance long-term more already also of guidance feeling today, slight points component. concentrated into about a us forward really where wouldn’t growth it we too and certainly well, us, especially long-term, thinking some in and know for all respect the with that puzzle seasonality, a far on on say mean, it terms first little most the has visibility for some of good think is

that incorporated thinking at the we where on we’ve estimate So based sit our best moment. our of into just

John Kim

to in Okay. versus anniversary of prepared owners of sell upon Do your X-month the And long-term you the of what coincides likely the Chris, with that percentage of which IPO, my remarks your any the date? expiration at you’re the those mentioned indication restrictions. of question. have owners the you more final when expiration lockup

Chris Czarnecki

Sure.

diversified hundreds wealth I of So It’s hundreds of shareholder it’s a base. individuals and think managers. X,XXX-plus very

hard a very made. to meeting institutional contact We stay them in had with worked the specific as do we period have We we progress run all shareholders. with close to our the about talk January new over through

were the people us, the night base. provide to that know, is Ryan, for to to in and there feeling I that future think part changes shareholder I are want me not as plus, doing much are any as appreciated long-term specific what clarity well? the plan of last thoughts guess, executing business put our with expect anything we we feedback the don’t them as in we of positive group to doing, headline and progression the so seeing be is business there in around and and them The we want you’re general you holders. important else can very because entire on

Ryan Albano

think No, up that sum I well, Chris. you

Chris Czarnecki

Okay.

John Kim

very That’s Thank helpful. you.

Chris Czarnecki

Thank you.

Operator

The Morgan comes Vikram next Stanley. of question Malhotra from

Vikram Malhotra

Thanks the question. for taking

you’re seems the And Just maybe expectations that’s through of in even us you’re just of kind competition are other picked both going just – board, just on you and acquisitions kind walk back to it side, public-private the up broadly segments? between maybe both healthcare any acquisitions, across can industrial through pricing for that lease, seeing the net the of participants. seeing differences two segments? your year? What sort What the

Chris Czarnecki

more space. certainly of estate ways, it net continuing one to spaces think less with Yes, the real look lease a I take around investable of uncertainty folks market just of number at many there the constructs. today some in is the Sure. the In business is a

that acquisition a different on leads looking on transactions seen, QSR private we’re the of of retail us, REIT who competitor extent buyers are a and the certainly, broad beating select is. space we’ve segments. in broad Industrial, obviously, more there set within you for us the be a and to competitor. at obviously For of to institutional that we opportunities, buyers diversified competition, public know as our and transactions front, pretty us specialist to so More with competitors different the see the compete range tend

see to there, public buyers have involved we more focus there, care the private do more tend see health On side, more a private because assets. healthcare I as many niche of don’t we aggregators and REITs think but

actively transaction, – to cap plus that’s little range, thinking each how mid-X of feel very we transactions we’re at X% about acquisitions I’d generally individual and at close be or like minus can More that’s effective different. rate zone, say, a So moment. thinking sort on between and about the broadly, X% the

Vikram Malhotra

then earlier, Okay, sorry. this But great. of And the occupancy can expectations through may missed just remind guidance – within is sort have I what year? the you for me

Chris Czarnecki

Sure.

all other site being said leasing basis sort equal I change, other with leasing some points, the Art points as in large be basis was occupancy, XX done. down was remarks Chicago, we’ve about but the things reverting the So in Van about plus of the of we’ll of opening which XX

a the So if Ryan, we would don’t know, we exact fairly I see occupancy that’s specific the have being Ryan? thought good to robust. around number model.

Ryan Albano

Sure.

In terms use from about modeling we of cash just it guidance points assumption perspective, XX basis thinking rent. a and on an of

that to think basis points, sits vacancy today, so... or close and general portfolio about leakage comfortable our of probably We��ve run rent where feels inside so occupancy the XX I and of with such, historically on. that, collections terms In

Chris Czarnecki

Where collections perfection. the moment. being for basis January That’s are points on for what, and appropriate just, XX February shy

Vikram Malhotra

remember, last the of you to assuming months, anticipate. as see about where just you capital you more lastly, much sounds you But the higher get And you next it talk are don’t then event a XX to volumes you of in thinking need about clarify, kind volume lot kind it’s higher just like over Can and done. are outlined than time these an of funding? acquisitions this how well, external time kind just necessarily

Ryan Albano

Sure.

think you absolutely are I correct.

we necessarily year outlined, and capital. about accomplish that additional the guidance we plan full can we’ve without think that the As

can a that so it is we certainly, to capital, so set capital, on. progress that the be on the than we additional opportunity And In near and that place. if and say the offerings forward exceed the back term, other to come those that about it put The tool whether As or avenues some We’d we’re I’d thinking size an the obviously, arises we’ll think be way for we is, could needed of capital. would the to sooner certainly follow-on market looking ATM in certainly it about we numbers. depending use.

Vikram Malhotra

Great. Thanks so much.

Operator

BTIG. The Gorman is from of next Michael question

Michael Gorman

more get XXXX. afternoon. your market XX-year anniversary, much inverse in XX think seeing whether opportunities competitors of private looks? you’re some a have I Good better about acquisition this, your is when in back, the Are think rate in you that do that borrowing you you question, volatility was I get there but opportunities? track was record maybe the thanks. so company. you more can’t on acquisition Yes, a see in obviously, taper tantrum the longer in of you if the and time the When thinking the about kind where coming your X-month interest it up run-up as disruption the And as – financing, or in of and you

Chris Czarnecki

ready is thinking Not call. this the a would lines and taper something that to it’s was for and waited along their tantrum, What disjointed, that’s how back little is, and I remember – shook that was volume funny. cost bit people capital those I very actually see kind thinking morning at I that out. of to and explicitly the same time getting say of

And given many I supply-demand think rates rise as down. XXXX being opportunities in players think don��t In So a there in disruption the recall around cap are the is impactful market how then at more more and market I component, I time. volume. and specifically any huge that the really what rates, the actually and slowed component

bread changes early. been macro But don’t to million of of acquisitions, buyers, the us margin able some there for and and better some have in $XX is to smaller it million of incrementally buyers think picture do more because that debt on that’s happy we and is of cost are thinking of the And and think $X you are I lock of when bigger capital. – do their part an butter. I and the capital long-term do inflection lose cost in are our well-capitalized who institutional

and think it’s all to because be about team we’re depending the do if So I more was excited have others just a push a pull, it. little and that But on acquisitive situation there opportunity that pulled bit some of little the there. to an bit a

Michael Gorman

the Do being of of And that about, opportunities have some visible. now seeking terms of care the wonder more talked as a great. maybe Chris, space? public specialized out kind bit I in just whether you that’s for and and of a a acquisitions, of then of X you the health people little more company Broadstone if out months the up, strategy kind it’s been you kind as more specialized a aware And in No, buyer in past getting are types. – story find their there facility property you following do as properties of you’ve

Chris Czarnecki

investors, discussion transactions as markets access ATM we’ve term second us big It able that’s capital being new feel that part company. I’d And have grading. think our very and was us public market, as do always starting BOE an that a think capital eyeballs proverbial greater bond about little some is was of incremental I got the we as the high-grade hurt of think a that a for now to it seen our observation the clear team is bit. I company. That with being we acquisitions to to such the I absorb have that toolkit. public private were to, say, or the very the old in overnight, on doesn’t a use a But as the talked credible going we’ve to

So less a are discussion bit a point. little of things those

on least bit interviews when being have little whatnot, So builds seen continue and value say of us they bit we incremental are acquisitions sort a to that doing time public I at I’d a think brand. of team, more the name execute strategy. But little having only in over especially as our of and a

Michael Gorman

Thanks Great. very much.

Chris Czarnecki

Thanks, Michael.

Operator

question Ki Truist. Bin is of from next Kim The

Ki Bin Kim

than have more manufacturing assume of seem risk Thanks more the good afternoon. distribution assets parking plant the Tangoe of around I and just should coverage Can tenant like nature boxes warehouses, about have that the good be industrial turnover? a buying those build-out. talk specific the ever reducibility assets, may there you’re Because with you and some of the a mill characteristics might different

Chris Czarnecki

Yes, absolutely.

acquisitions, I think you since of client couple I space base. obvious we serves the warehousing more think, and a as more is did generic industrial said, a

to. into of what pay think I get attention something a is lot we that you

manufacturing was of quarter one industrial and during acquisitions the warehousing So, smaller a facility. the fourth

but you are small available are be think that to on space of closely can base, users bit slightly you’ve types other So there very I think capacity in little in broader got you’ve market. change you focused a of buying it’s have the who shared there, is there look a there. also you there, confidence And got real space. both the who operational and user through a What you’re their got over the the try if tenant, the take of estate and did broader fundamentals. have but And next to for user

with asset. And to in there sure you anything you’re balancing of to there know, trying buyer, not balance else real check it’s with? varies it taking about other. asset think things Ryan, those each and they really if a just don’t buyer, So and for broader I of focus those our reasonably I credit to in back make things are it two jump sort us, if estate not is you’re

Ryan Albano

No, that’s a I summary. think good

Ki Bin Kim

for Okay, And second to of thanks. of spreads kind in there benefit the terms credit a getting are market? balance you sheet, one, And did your that is what you’re rating? if plans from your getting the get any tangible

Chris Czarnecki

Sure, take you Ryan, do that to want one?

Ryan Albano

Sure.

recently at flat. S&P. from So get second BBB a we credit came in that just it did rating And

all debt, our currently today does It on it. points So well term from on on has our bank debt use in-place we certainly provide savings basis as savings Moody’s notch where revolver interest up roughly of XX us. a as as immediately

public market on. with and bond also increased us certainly and capital access place so now provides in the benefits So via to

Ki Bin Kim

sorry timing for Yes, And thought bond plans any market? unsecured that that. rating. I on about having first the the was

Ryan Albano

Sure.

think cost there So whether year. certainly certainly such where first an market putting say longer market, evaluating to perspective come deployment a half of the into the it we cost certainly, current and thinking take really not from opportunistically into is in But term think be near-term, looking more for about in today, of I balance our later the place see especially potentially the what debt things, work out on in frankly, to as is about capital to something bond a will would debt year, likely What where then we it’s that don’t need the sheet. versus we I as do debt, accessed will have probably it in the the that year, that attractive. is in would it’s something later be to so public of in attractive the and acquisitions line

Ki Bin Kim

thank Okay, you.

Operator

from Caitlin next is follow-up Sachs. Burrows a question Goldman of The

Caitlin Burrows

but was bankruptcy credit talked again. XXXX a know if little what if that’s additional assumptions, Hi, you and bit that actual I events, before about how a in I guidance, whether or levels, debt through compare occupancy, could are any, wondering to results? go you bad assumed XXXX would

Chris Czarnecki

that? take to want you do Ryan, So

Ryan Albano

Sure.

it. is assumption assumption do into we vacancy a in-place we What would basis any cash events say guidance, specific have in don’t have occupancy rents. So – or that on credit layered vacancy on I point XX

of XX inside to we’ve it points. the it, thoughts and guidance modeling perspective, that, closer basis around call But from points. into about our basis we’ve layered So XX a historically somewhere run

Chris Czarnecki

And nothing specific.

Caitlin Burrows

Okay, how that relates got you before. mentioned it. what And to

not what a property acquisition are it’s type an right office are tenants? in you’re that could lease know advance I you could of give properties then but to from place? dispose now, there update And kind And hearing some you target Okay. look of in expirations of on

Chris Czarnecki

Sure, absolutely.

And expect, with focus tenants. as a us for not noted, acquisition our at maintain you’d office very to the moment. as close continuing you So an it’s dialogue

it is work ago. more is to basis. what to they there continuing return And that quarter their the fulsome and a than obviously was more evaluate sort in that to think thinking, on we of is a I are variability real discussion today hear continue

they near-term continue us, matter specific we the talked we’ve I a but only stay to to goes we office nationwide Xish will be and close, they to before the out pandemic, their see is on years XXXX the the returning for that have monitoring. that So have perspective after it them. pack not how that ultimately, think from Nothing we with rent, about are sale to office of

with And property, the dialogue they with advantageous so to right what will tenant to to if then they is the maintain building. solution plan we it’s there about certainly now, consider how the more respect just But that do us for and And an it. of position X.X for the of whole, just strength, years strong for again, the as have gross we the there from only about credit be us portfolio, to XX% a portfolio a profile in continue – office ability if about to ABR, of very term. thoughtful strong generally,

the basis. thoughtful people work think So be a their a to ability as on we more through patient return global to have

we where that’s sit So for the office.

Caitlin Burrows

Thanks. it. Got

Operator

remarks. And this any concludes to over our question-and-answer the session. Chris I would Czarnecki for conference turn to back closing now like

Chris Czarnecki

questions much everybody Great. Thank joining and attention appreciate call. the the for Very you all today.

so Net excited like very I focused in from team about said, of Have what results the our is and up XXXX shape, all to We great you of things that and shareholders, for will much. excellent growth we catching with great will as feel is our Thank portfolio Lease. everybody the are, soon. forward Broadstone for day. perspective I a and a look on a deliver set bring

Operator

The concluded. attending conference today’s you presentation. now for has all Thank

disconnect now lines. a day. your great You Have may

Broadstone Net Lease (BNL) 28 Feb 212020 Q4 Earnings call transcript