BNL - Earnings call transcript Q1 2021 | Broadstone Net Lease, Inc.

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Operator

Hello! And welcome to Broadstone Net Lease’s, First Quarter 2021 Earnings Conference Call. My name is Andrew and I will be your operator today. Please note that today’s call is being recorded. [Operator Instructions]. I will now turn the call over to Mike Caruso, Senior Vice President of Corporate Finance and Investor Relations at Broadstone. ahead. go Please ahead. Please go

Mike Caruso

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

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

Chris Czarnecki

our Mike, XXXX and you, everyone joining welcome to call. Thank earnings QX,

the of would proud As and our reflecting health the and team, on our they’ve like safety. portfolio first always, incredibly listeners how I our In IPO, results our the wish to continued managed strategy, I’m good they’ve time delivered. executed since

and this changing rapidly predictable diversified Our during strategy economic produced provided significant protection results downside has environment.

past net exception. XXXX among type lease diversification first quarter no the the of in rent year property yielded the tenant collections geographic, best-in-class and and Our space over the was best has

levels, to continued operating reflect that quarters. a portfolio has Our continued trend metrics several for pre-pandemic

and was deferred of receive currently abatement is deferral vaccine of in rent, the across and distribution during portfolio immaterial first in leased rent our XX.X% than base have widespread reductions quarter of our operating $XXX,XXX under All remaining comparison periods less we our million. are scheduled the exhibited the continue XX.X% to and as well end. QX to of rent concluded, we quarter, With collected During we tenants all currently counts throughout should business, efforts annualized country XXXX. pre-pandemic and profile normalized, of way, more significant than for open which believe $XXX case

coupled environment acquisition have allocation robust competitive to translate continues Despite of types, also to it growth. increase periods temporary net net our for following lease during have capital most seen the XXXX. nimble positions limited strategy flexible by directly over tailwinds XX of competition, and types creation impacted more of areas casual macroeconomic past country In pandemic, have pandemics expect An experience returned tenants we a the and a we growth, asset resulted of strengthen lease continue in pause about be advantage that during capital our challenging slower opportunities, external may pandemic-induced has in of not months, that continued the the dining. only recovery, a the certain disruption While us our surprise no in to with believe to the continue It we property provide to acquisition space love not granular success. namely pipeline into environments, and but for that economic us a strategy is What to that has protection during pursuing it diversified diversification of attractive excel provides levels for heightened our XXXX. opportunities. will differentiated is position downside

QX, across and sector a no types, variety our of XXXX years strategic diversified pursue history embraced activity flexibility different. despite to adjusted investing We’ve Our gives selectively in dynamics. asset throughout flexibility during changes us operating attractive risk and the approach XX allows was specific to of our opportunities investment

During weighted the average remaining total rate X.X% acquisitions average and five The a leases XX.X of in $XX.X escalations XX The was weighted completed term. include transactions, average year X.X%. for cash comprising a rent going we lease weighted quarter, for first investment million. cap during closed properties the quarter

heightened benefits Acquisitions of which able as towards types, source Although risk-adjusted [inaudible] competition portfolio. healthcare we profiles our were types, acquisitions our believe complementary more we’ve to existing diversified in to close and quarter seen is property restaurants, quick-service some we and core strategy. possess property industrial were testament such to acquisition retail completed the and during of select our a that the

escalation experienced operators, is an and long term retail our the a average lease have for washes Acquiring XX of portfolio. segment and we rent a under to with weighted transactions retail weighted total XX.X X.X% leases sites are diverse a years. dollar The markets. select sites in properties $XX.X strong approximately of the primarily two of geographically term of The average subject located performing store addition leases During investment acquired exciting million. properties to quarter, car include in

have the properties constructed million terms X% transactions years. rent and The of also of a escalation average XX.X eye facility existing care include healthcare leased lease part tenant. two to subject a have weighted during quarter. total $XX four plasma are We several properties as investment average and newly weighted approximately of The a leases added to of centers an for collection

to existing completed opportunities. with the the during tenant Expanding healthcare to on newly attractive unique of base transactions health physicians healthcare constructed large regional to acquisition demonstrates view growth intend us, or systems facility for to as affiliated differentiator the leased eye we new to assets care work continue with the groups. ability and on significant drive We focused quarter, tenants our remain our a adding

will the also strong XX and been acquisition opportunities during to management tenants lead the on continue successfully same of business, year a tenant, identified previously released new key side with vacant be work that we focus. building our and a existing through lease QX property the to Additionally, a relationships property under with has healthcare new strategic

complete weighted a year, diversified currently Despite some first well select heavily minor are and retail or first properties, more the our retail half evaluate continue across volume, healthcare healthcare our completed of types. property With opportunities we pipeline of towards were all robust second the million and control, $XXX of source quarter seasonality underwriting opportunities industrial, acquisitions we closed of to in quarter across core acquisitions nearly and QX select during either the and typical of under and additional Although during assets. XXXX current full in define contract of of of acquisitions first $XXX pipeline under under a executed with million just of we intent. which the few as and are our either letter would our very I we or quarter moments. have opportunities, year on transactions control, reiterate range pleased XXXX guidance $XXX in $XXX.X million. These update to a our our guidance our initial will provide full more million year confidence Ryan the

a eight casual our quarter, and continued noncore properties These on representing million at weighted disposition strategy million risk original $XX $X.X purchase a for average locations. the dining mitigation of to price. we rate During assets weaker performing healthcare sold and X%, several reflect focused sales cap gain over included

office us impacts term opportunity the preserve Granular available the assess assess We that term continue monitor been have and and properties. long impacted and to strong long COVID-XX all and the tenant patiently casual of by value. dining portfolio shareholder to the options directly to enhance long diversification, credit term segments affords to leases, namely more pandemic, closely tenant

as XX.X XX.X% first with annual As at remaining XXX quarter contractual escalators. our three successfully across quarter, rent during years, in six located XXX XX portfolio basis increased net Occupancy lease to weighted of portfolio Canada. of properties we one only of quarter leased our quarter and March states points, re-tenanted X.X% leaving included in properties term XX XX, vacant average end. over The properties total property a U.S. place the in had

XXXX represent lease to forward XXXX. of negligible and through and be of continue X.X% a of ABR Our just X.X% in total maturities ABR

Lastly, highlight the news some governance related earlier quarter. I’d was like that in to announced exciting

traded Denise forward the meeting, both to the Coke and the our thirty Board of as Coke held focusing Henry to will industry Health is in of Directors provider not-for-profit Michael Board the expand healthcare of wealth seek to welcoming be immensely publicly a in our a the this XXXX years’ election will CEO to QX, years experience nominees industrial Realty of sector, current major on month. provide traded as has each Ford industries. of REIT coastal Brooks-Williams in estate Michigan. serves services now experience Mr. additional a Corporation, for their markets, During Directors in our medical brings portfolio. executive nominated look I as at and I’ll the Terreno six as and QX annual well than to Co-Founder full-year in With which Board Denise and has President industrial experience director call and experience properties the Vice respective leading on healthcare Ms. North for as and and Market, of Senior a President XX System, and significant to the currently Brooks-Williams results as healthcare of infill our turn more publicly our that, over Ryan, detail over outlook. real REITs. we contribute

Ryan Albano

year. for well the all of developments regarding balance occurred the sheet during joining as you update liquidity I’ll exciting profile, thank of and some Chris quarter with strength as today. an Thanks, and the our us that begin first

we maintaining continue growth We make committed significant are and to progress objectives. as toward financial XXXX flexibility to our liquidity

As revolving of million XX, March capacity XX% on available we credit our $XXX facility. approximately or had

of substantial approximately our to us liquidity markets at objectives. debt billion, in to accessing net capital positions $X.X EBITDAre the strategic maturities, and with adjusted to allows Coupled Our on debt a quarter execute well near-term end in limited resulting us our growth net be was debt X.XXx.

benefits QX were existing interest in S&P our begun the of with interest revolving the on facility to reduced an January. unsecured As earnings and in February. outlook term a discussed in this rating bank points credit credit loans we rate rating XX credit BBB reap form stable our savings, basis of from we of call, the received We’ve during initial already by as

potential the credit by second access bond available diversifies The us to sources grade rating market. investment further our funding providing

of March million amended our our balance BaaX reaffirmed the points. Moody’s by reducing credit commitment stable its to and On XXXX the XX addition, to strategy conservative strength $XXX and positive two loan, term during from our rating margin diversified the basis $XXX our applicable XXXX we management. on of repay updated full-year debt outlook These we XX, the unsecured in further sheet have actions validate In million loan with earnings in impact In positive to both $XX S&P rating rate March outstanding balance bringing associated the outstanding XX. credit connection will future with principal, cost amendment, amendment our years. the our savings to million interest as of elected and and term quarter. The

compared We reported during or the $X.XX of year, results: per financial primarily rating. X.X% QX, and to a associated representing increase increase expectations with XXXX to turning The S&P AFFO a $XX.X share. the with Now, by per of interest closings the in-line our driven These impact QX XXXX. quarter-over-quarter QX, of diluted and share the acquisition was of when first $X.XX quarter million quarter late savings partial are basis results represent

expect our quarter in quarter upcoming rating S&P earnings. the as March, acquisition of the second bank the to in We our our closings serve re-pricing term for March will amendment the February loan late all in and XXXX following tailwinds facilities

$X.X as initial slightly of annualized. quarter, better of these million, we which During for an onetime routine the executive separation end costs with the than cash of $XX.X as compensation expenses is G&A officer well total incurred associated range of onetime low million incurred includes stock during our million departure G&A guidance costs when the during quarter, After based expense, QX. of the we adjusting which $X.X

acquisition Following guidance the the of our our year, per first as savings completion of upward of pipeline achieved measures to well our the during various AFFO strength confidence expense the QX. current we as share refined reflect the quarter XXXX in

per at the on million volume $XXX between based key growth For fiscal X.X% the annualized between $X.XX, implied G&A $X.XX. total $XX $XXX over to million of Acquisition share and rate and results $XX we represents diluted $XX volume This expect QX, midpoint currently is million XXXX year between Disposition between report which $XXX an XXXX, total And our million: of assumptions. and following guidance million. cash AFFO million: $X.XX and

that call, both share capital and our occur to sensitive As disposition we results activity the our during earnings year amount for the per acquisition, year. are the of and timing QX throughout markets discussed

holders common strong rate to-date of on Unit XX. based record quarterly the acquisition on share Finally, increase a on to our distribution our The board OP X% XX, in to XX, and represents performance our before share. distribution June $X.XXX announce per pipeline, growth are we and $X.XXX payable meeting that as board pleased per declared April July or held of

We we our to turn to will grow approximately AFFO long as to a of I Chris continue to our increases base term will ratio board to closing continue remarks. evaluate and with dividend future for target XX%. that, it intend our earnings back over With payout

Chris Czarnecki

Thanks, Ryan.

Thank not approach teams also mitigation, to strategic encouraged to but the example construction. long to to and positioned continue remarks. open This accretive portfolio the questions. the to this afternoon. relates now first ability strategy, profile our it both for create of excited exhibited only and operating time ourselves diversified Our Operator, risk our lease attention and benefits investing to normalized during you we the advantages demonstrate line concludes our net shareholder in another that for acquisitions. QX by value you prepared in and was near of of our quarter excellent have as the your grow meaningful through term. confident can our I’m feel

Operator

[Operator Kim with Capital Instructions] first Please John from go The ahead. Markets. BMO comes question

John Kim

announced which a months assets. in cap as where industrial in rate that you're what transaction sector, Can you indicated just where net M&A the rates few Thanks, sub-X, at describe are looking There was lease afternoon. seeing versus assets maybe cap ago? today good industrial you're as they were far industrial for an

Chris Czarnecki

spectrum working would low on acquisitions for X% Thanks just going second. industrial you of us, and definitely industrial of with for the transaction approach are frankly Yeah, rates rate we're a our broadly saw that. we more are number in that seeing we Sure. I cap looking and where a understood so cap at pricing know working John. transactions diversified and probably for range. Definitely was on the and say

instances there, of X.X%. range year and whatnot, off good that discussion for since maybe point. there seeing that just follow traded certain to Certainly well as risk-reward term that carry a pricing is and we XX to annual always to trade were things with not have opportunities the We’re still just some and the inclined as the prospective range XX given being then maybe north bumps through past popular and

of having shorter You to the seeing zone. on that XX, zone, our opportunity little a know X% set in term, upper X.X% years healthcare strong correspondingly in lease well. rate annual and maybe X% the to on probably term that there more Still seven mid escalations retail bit and side cap a say term, side greater annual rent then or potentially select zone, in as rent the X’s, maybe mid lower increases longer XX to

in spectrum be for sort range. in the of but lower what that's the cap rate seeing, the of would sure we're So broad industrial the going segment end of

John Kim

seeing discussions the you? about this that cap are the or heard last then that and you rates when surprise the market they does mid-X’s, So transaction night also morning in in

Chris Czarnecki

seen we've that certain are that low I there transactions would go well. say as

and the just whole other it depends well. factors circumstances as lease of on facts profile host and tenant credit and and a think term I

of heavily So mid-X is the drive grade a guess in talking on the that underneath I there's would as tenants well, tenants mix grade strike well. the characterize probably transactions tenants diversified and to component know when At the the investment portfolio I X% as as of the piece knowledge of FedEx same you I that, me the mark. could which doesn't more investment you're about of or zone, my FedEx non-investment grade, pretty time, off think completely it whether depends going but

that So pricing well. as some there's drove of circumstances facts and probably that

John Kim

can intent something the closing the you some on under as you color on of provide closing, $XXX.X timing the you have when of Chris rate of letters as assets under typical have more under your and mix? asset control, million Okay, contract, well or

Chris Czarnecki

couple will assets and the know the now, thing the you of be the between of and a the of to haven't John, a closings, least And yet closing overload so – we Sure. working day. Probably for it is select as as QX timing our of signed. true that also vast expect that mix the only still be wanting and industrial, is bulk ramping retail as I'll the so holds could or IPO forward. mix been that it start we there up. Maybe that say subject the behind a same of to LOIs think nicely we're right then it then would well. know across pretty obviously perspective, would isn't we a lot a there efforts backwards transactions I'd subject the QSR transactions couple healthy course you really early today transactions a but acute But by we is on asset of that to in balanced front-end be one our acquisitions efforts diligent board the majority on of bulk pretty well, closes talked evolving and anticipated tend things I to say well. front million QX, healthcare at on at going characterize from There the the time balance the in QX stand that within awarded things to of in and would $XXX contracts about and diligence. number QX certain ongoing I'd diligence still days all be I are

to able means around I elevated in what why those process, report and shortchanging we that's actually rate about we're doesn't confident to were pretty you we that probably numbers out talk feeling we being So today. think there, but it this closure mean have a

John Kim

I and have question. more you just Thank one

your the there investment company. eliminated because impact you at How is does of impact to this? any process, quarter and role decision CIO the G&A that the During

Chris Czarnecki

Sure.

So little our are side really PM include of and it whatnot. on all. at investment some a our only who hasn't lead our expanded committee investment that bit is and different The sector AM process to the changed Presidents we've is Vice thing Senior experts

is would really also when We so we G&A. We adjustments G&A I'd time haven't larger course continuing year any our adjustments the acquisitions corresponding some than to today look At team that of adding the guidance on there. investments anticipate made the didn't any to and same the out IPO. the over did to team personnel the point make at

We subsequent folks have quarters. few a in the added

really about they and in it performing, think feel pipeline we are where just that I good forward about. So I through the shows talked

John Kim

Great! Thank you.

Operator

The next Anthony comes go J.P. ahead. Paolone of from Please Morgan. question

Anthony Paolone

Great! Thank comment the you. on in overall portfolio given and this, also $XXX pipeline think I your was on I versus first may but terms the little a side lighter the the contractual you on have rent of quarter missed did bumps yields average. million, just your

Chris Czarnecki

couldn't sorry, you second hear And I'm the you Tony, one repeat would just for I piece? second.

Anthony Paolone

bumps, they contractual because your first bit the portfolio quarter little were inside the Yeah, think a generally where average is. I in of

Chris Czarnecki

you. I'm thank Yeah, sorry,

in what the underwriting an control for under perspective. is said yields I of the from of assets kind terms So exactly

that individual to some – those know range X% the didn't type there. about fall. that's yields having X% well – X% drive I didn't weightings to – we property So an probably the you and It or rate not weight X% specific cap talk where a probably. was of

medical of still transaction. we're types depending fairly being but number that and I the in zone individual to of X% each industrial there's rent characteristic that's say X.X% a of the the range on zone, bumps, X% underwriting, annual terms property would the In a

Anthony Paolone

are up on not any of terms or you're looking bidders you're or that out against trends are transact? there the out of frequently you of up Okay, cutting and showing that types market that in who's as to going certain side particular areas any at transactions, in more

Chris Czarnecki

diversified asset I'd so Not dramatically again, quarters. prior different by say because in spectrum opportunities, than the it of we it are varies really class.

in in more doing we're retail so Some being of the peers them months assets interested this would six the certainly space some or the in have oriented select competitors. and retail of seen we last be

we it as varies. buyers tend or bit On healthcare and niche to more more a equity side of a Again, the being buyer stayed the on oriented more the there certain and and see see side, institutional fairly few having focus medical then private private there, net side, little lease there, industrial you buyers more consistent well. a they've and active REITs again

landscape has competition the think changed. don't I So

think it type by pretty quarter. just over that we've seen varies and the hang consistently last I product

Anthony Paolone

the in and a healthcare to question, Art on mentioned last related Okay, Van I think boxes, you occupancy quarter. just or the pickup the vacant a maybe

So lead or you some with backfill still there? to does update the Van what's Art that

Chris Czarnecki

and yes, of Sort no.

boxes plus lease accounted healthcare Van box that us Art the acquisition, the continuing they highlighted space. as two because leaves build-to-suit really two with a accounted left. some sites we of tenant for a which and with very both quarter it our – this tie So as other two then at opportunities, quarter good for with assets look during with which that grow We nice releasing well, was leasing small to fairly, together so did them just

I around of – Van the portfolio even at leasing ABR we're think the portfolio, looking XX% of or Art selling ABR those. and original it's

eight at So released on front, this that been have more of progress point. XX so

Anthony Paolone

Great! Thank you.

Chris Czarnecki

you. No problem. Thank

Operator

Burrows Our go next comes from Please Sachs. Goldman Caitlin ahead. question with

Caitlin Burrows

just the through, lower. going expected about even cap the relatively I different go maybe XQ you rate was had could the industrial, without wondering afternoon. categories cap talked Good in you if forward, was Hi! but for rates

acquisitions to pick wondering in forward. go that expectation and the just through if you the to So up could first what of cap just of the rates contributed quarter kind for going

Chris Czarnecki

what is so – relative degree was facts I think give there again Yes, for we you circumstances acquisition and framework any to Caitlin. do, so of and it's some I searching trying fairly general know to Sure. always

a there of during rates good band as know quarter cap the pretty You well. was

maybe transactions did the was took year lower of in so with rate that it. was the a trade-off the of a that asset for mostly master quarter expected was, otherwise, cap have might new you mid-X’s one lease rate think having the we I so… I than fairly so carwash and well But that little a cap a leading XX and was select boxed lower entire think zone, the operator component retail bit

Caitlin Burrows

for transactions then or And quarter, that were they in think the you five. okay. it, the I said Got four

tenants wondering you those of how Just were go or mix through otherwise. if sourced could existing

Chris Czarnecki

Yes, absolutely.

and healthcare quarter obviously acquisition existing have the releasing known highlighted, the I during the was the that an done So deal with. tenant which transactions had we've and repeat

through dollar the retail with was develop was way a transactions the years retailers and one stores that of other the so it as have multiple that good was of we One the repeat then brokerage, over in chunk worked opportunities regular had a relationship of select with a that developer there. well, of on

Caitlin Burrows

Got And yeah… okay. maybe on – it, then

Chris Czarnecki

you going No, plus ebbs is, of flows say or network our to from have, set either it I and existing on know us, the pull way away but the relationships brokerage think we're existing our each the about is are sourcing times, principal certainly developer portfolio, I different of that's that just all and the and one base, looking direct the to it deal at trying important side tenant we was those to the at. take we're

Caitlin Burrows

And a that were little moving sooner expecting. increase, the it then Yeah, on makes sense. than we was maybe dividend to

were just decision and through little increase So a if could into to now factors what you the versus wondering consideration? bit, go waiting the taken dividend

Chris Czarnecki

Sure.

us performance took a We're that collections ratio of looking you be tenant issues in discussion the Considerations the guidance, some portfolio and we’re in now or you obviously acquisition enjoying today – it Ryan the not were you that at pretty first normal initial speak you term as zone we those is in benefits back – to make and Also having and our I for to XX% we completely factoring in me being component. wasn't and hopefully and savings trends and absolutely going a to Certainly, through any far. upward. through felt had obviously in and pace fairly the from of. at factors that the increasing that, the circumstance welcome wanted to so point that much discussions know right this we've in loan to seeing the think significant payout here the and pipeline confidence like know well. Ryan saw gave together where – all the highlighted, and that board so every good So jump the with was to was time one so confidence adjustment were the had

Operator

comes question Capital One. with ahead. Please next Chris The Lucas go from

Chris Lucas

million should be sort number about bit just curious with get that Hey! included two, quarter and adjusting Just for you hot. number? to thinking guidance between a to in you $XX as severance provided million. first I guess and a and number in aggregate we us on quarter sort the the the to be make the the one that of quick sure then to to call, had just some fourth investing accelerated or for of first me. understand some be had the that would that which G&A those earnings Ryan, million in relates items noted well, that for result, assumptions $XX so $XX quarter $XX should came I you I'm the it one-time trying million I’m of how

Ryan Albano

that take I'm same or on it number thinking being comparable of comparable million, as the one-time about down $X.X basis out. I It quarter I'm that is well regular give then that G&A from the basis. $XX.X The Sure. – based our about G&A that million total and our of of I'd routine million the thinking on $X and million, some is associated about comp look to a based $X.X which brings related really I'd On with – say severance the acceleration some way cash and about it right that as a the to now adjusted before, say then $XX.X to on items adjusting out for stock you basically comp rate also the guidance. call as call this $XX million, departure run you think way I've I that at stated $XX know million million stock

Chris Lucas

Great! That's thank all have, you. I

Operator

with question comes Michael go BTIG. Gorman next ahead. Please The from

Michael Gorman

you about Chris, to to marketplace. how there's off thanks. a of of in missed afternoon. I competition a the one but with spin it, peers bit sorry two just little the announced transaction portfolio could you're and what last the it Yeah, or week, seen portfolio. Good seeing dedicated their strategic strategically, office if thinking space. kind deal Obviously office about office you're talk We've be going activity and and talk the about flow disposing

investment interested the kind how I'm opportunities market about in So seeing you're you're right thinking of and it now. what

Chris Czarnecki

Sure.

you office. know foremost first been hard with – and we've on a on to think respect pretty hard I pause a

continue monitor with one been gives portfolio, so the know And a performance through We to the want continue at you. to could pursuing a lot credit to wise it's their the pretty a so term work line a in before, for see and couple we duration tenants moment. It's has and bright and of existing not strong acquisitions component, said a I've among diversity we've you to possible the portfolio opportunity utilization that think any on or thoughtful, something, we us as seen there return the this dialogue new and I of a there. don't patient be to active different of actively term draw diversified you calls the completely have, know the office they of certainly tenant and which base

with but – fit and perspective, new that I've office at have would our there, huge been the see be another least spin we're and or our any tenant pronouncements opportunities off box, would my hasn't of one and for way a certainly before just in followed the and guess. there other a us, think wait persists engage so that amount a for – or making probably quarter further to I have from continue know You pipeline traditional base

Michael Gorman

Okay, That's helpful. great, thanks.

Operator

The next Ronald go Stanley. Please with question comes from Morgan Kamdem ahead.

Ronald Kamdem

ago? months subsector months versus really benefit changed or So adjusted an different Just step the I has of you way, you're six being XX for at just said risk it anywhere another – Hey! sort in see one the the the looking how call for was incremental back opportunity first maybe the and and is an of taking XX in today, industry you versus to best Thanks. asset mind know classes. returns that ago? – a there dollar or six today are when your having had that Where to involved a

Chris Czarnecki

side but bit maybe bumps puts long Yeah, having I bumps, to thinking slightly a other spectrum through, associated where able on me some cap strategic a a them. giving acquire has that up weighing term, so I think And rate the giving term just the walked cap and long rate, and a to the we're interesting nature, and going retail again, on still little making in maybe have to about have just or you higher little we're it, select long absolutely! investments contrast it good to industrial the with against assets good up with about you each while feel so you are of be a and and lease it's some most annual might good spectrum, on know lower those the takes annual bit things in a effective. are term

us, tenant are background. to a and know balancing of profile against on tenant their honestly the how we're you and each considerations one they individual what's So strong then and those of financial

we a retail, the and – still little little on So a some those the pipeline are are look of going because portfolio opportunities, bit benefit as on being healthcare doing what's classes select and first into even at been able to to a in you here I these quarter we the to the and healthcare, the that’s be conditions of seen them. going you've industrial more so to side we're bit sort and what as is us those with asset among continuing QX, little bigger move retail picture situations the with bit flex seeing nice know diversified of to have of change, is healthcare me, select think all between the that and thoughtful we've a we to complement during the trying communicate – is more that excuse though

Ronald Kamdem

up most competitors why looking platform? may guys looked have are do your think others maybe the the could you not Great! a take missing? you of of you you it's I have a to, can And it built your it? – at on about given of if just exposure guys the lot when where have opportunity healthcare a healthcare lot competitors sort class think that of an of asset don't back just just at sort Is step what's space, be opportunity, know niche; you follow You that of talk there sort the and you

Chris Czarnecki

it's question, you. an No, interesting Yeah. thank

we’ve XX for been it differentiated has the I able really been spot it's been me company we’ve think to been time. long It's that out and carve I that following for we've in to where even Goodness! it's and something got a years a now. niche to a before – been

For we've frankly of a provide groups and both significant the only systems to pretty hospital have has products, between on part the the it's larger grow continued economy to it able us, also regional and interplay dynamic that and been I such the of to some new those. the acquire think and of continues been physicians,

team it does and using process about learning experience curve, some think a growing never we up our to some getting us you continue think for our ending and I expertise the know there. that's require as and

this her with Henry in Ford and healthcare great the – Health going we've by expand has it XX on thought System, in to could about be well. You aligned She and has step we forward continue the space where know that frankly, years its step a what to to estate on views Denise join as fascinating took our a of been with background board. real think another to views asking

for good us works, well net So does I components differentiator think other it and lease there. been the as it's in model triple really as a

to continue it do So favor we and there. want to more

Ronald Kamdem

Great! thank are questions, That's my all you.

Chris Czarnecki

Thank Ron. you,

Operator

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

Chris Czarnecki

us you Thank today. joining for all

be be investors. excited along all give way. to our you for to and and update call the excited and next QX of the you are front of support in August are great appreciative all with for about very Have We're excellent pipeline our We a of come we'll back summer. be continuing your afternoon! just the grateful again, very to We wish an you

Operator

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

now may disconnect. You

Broadstone Net Lease (BNL) 9 May 212021 Q1 Earnings call transcript