BNL - Earnings call transcript Q2 2022 | Broadstone Net Lease, Inc.

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Operator

Hello, and welcome to Broadstone Net Lease's Second Quarter 2022 Earnings Conference Call. My name is Sarah, and I will be your operator today. Please note that today's call is being recorded. I will now turn the call over to Mike Caruso, Senior Vice President of Corporate Finance and Investor Relations at Broadstone. Please go ahead.

Mike Caruso

thank Lease's for call. second and for us operator, Net Broadstone quarter you, you, joining everyone, today Thank XXXX earnings today's Q&A. Financial hear Chris will John Moragne, our call, Chief be Officer, On Officer, available will Executive for Chief from Operating Czarnecki; Ryan Officer, our Chief who Albano; and our you

of for materially and Form may presentation statements, the to which call Any differ are statements Before we of such over to to to including like results as that forward-looking year would due can forward-looking remind now Czarnecki. XX-K differences. everyone Chief detailed actual I to cause Officer, on filings, date the the refer for of made contains caution during this are our risks only discussion uncertainties call. Chris call forward-looking variety begin, I risk that that cause will you Executive the place this the statements and of SEC conference factors. provided following XX, not you factors a subject December XXXX, these ended a undue our to more our We turn reliance to

Chris Czarnecki

and Mike, everyone. you, morning, Thank good

both second As level of facets consistent macroeconomic to lease results we business. strategy equity shareholders. across of a quarter report of heightened our and debt our the Despite another in half and pleased way to all to predictable our uncertainty diversified of the persistent make XXXX, continue generate on markets, we into strong rely net results our I'm volatility for and

defensively us environment. moment to I'd results, net in operating today's to reiterate lease QX a diversified market into take dive I Before dynamic how our positions strategy like

and of strategy, us portfolio, perform a relative defensive sectors, well-constructed our to by provides previous in to of all strategy periods calls, REIT differentiated advantages cost across economic other Diversification Relative sheet, along resilient lease highly I've flexibility rates to market net to peers economic capital. our and of BNL provides that proven be lease navigate diversified the As of both and stress, cycles changes with backdrops. our stated periods times. defensive economic net many during challenging positions offensive uniquely on and during balance and cap or in changes we feel to diversified fortified both dislocation has

the Our inflationary rate during environment. strategy to benefits current continues and unique offer rising

well XXX tenants with to Granular a portfolio We are our diversify consistent confident positions industries, face as of reliable and it rent X% escalations of defensive of weighted annualized rent. our us average that external coupled in with of accretive growth. accounting defensive properties achieve same-store as perspective, internal no XXX translates is From to pressures. economic strategy both the comprised tenant than growth growth more strong consistent and annual base across of X% XX single into for diversification, current

been to positioned credit downturns. and withstand constructed we tenant Many are are nature which has portfolio to of the are Our deliberately in event. industries in better economic invested withstand nondiscretionary any single

tenants, hyper non-investment-grade cost to the property sudden having year-end. pleased of as an to response has all us portfolio XXX% wider a pivot capital. includes today quickly quarter leased of report box than collected second allows higher for REITs when during end. create investment-grade dramatic changes to lower profile of were debt From otherwise view, long-term our types multiple buy the net considerably to In offensive compared a Clearly, that in and point lease diversification the of would of or cost risk in is many XX.X% am addition, simple was base I to is portfolio metric while indicate. proven of rents comprised synthetically quarter, a

specifically year-to-date non-investment-grade sheet strategy those for cost details balance capital the In equity tenants. and will the the in execution have for part a and but Ryan changed position we to remainder ourselves the our of moments more has well focused markets few net on on REITs, how addition, of proactively business all of provide this year. lease managed

rates certain asset have in we changes yet commensurate year-to-date, capital rates in meaningful increases have expansion see cap with While classes experienced the cost of in cap year-to-date. to experienced

has new approach During our period ability diversified acquisitions. spreads on maintain dislocation, to pivot the this of accretive investing to given to quickly us

pleased that we're we've to be we selective chosen While the to been opportunities have given pursue forced more with year-to-date. environment, the

quarter, weighted leases $XXX cap The rate in million lease properties cash solid translated robust rate a into weighted initial of second XX weighted invested years, average the we escalations, term of X.X% GAAP During and strong average include average X.X%. annual of cap XX X%. at approximately a rent

to diversified allocation has adjust our to Our approach changes in us to investing our allowed response capital cost decision-making in capital. of sudden

expansion during second quarter in with rate many cash cap average meaningful committed closed the transactions QX, in we quarter-over-quarter. weighted our pleased While the that we are initial were to

Although relative the provide retail were past by respectively. restaurant source accretion investment and to opportunities at several industrial to smaller to to We wide X%, that quarter on. and to were concentrated to Acquisitions more percentage care pleased helps year, produced opportunities out and but during they transactions transactions. heavily concentration additional completed the pleased at not quarter, last retail first we're are transactions. quarter a near detail both able where were heavier spreads as QX long-term with XX% health balance of during I'm the with XX% second The a attractive more included and industrial this quarter

the a food grow we leaseback leases These transactions five announced a weighted of X.X% expansion rent opportunities, separate XX-year annual purchased escalations eight transaction of the Last agreed acquired we a and was to transaction, industrial unique they occurred upon in tenant our including the in average invest include one and average second expansion opportunity $XXX initial well existing total weighted assets in the a showcases facilities, lease underway to investing. of which tenant tenants significant term. of which fund existing the a time partnership-based several support facilities costs portion a This include their of to and the During as The million. QX, year, our completion, At of with and located refrigerated business in Wisconsin. an processing two-property approach sale unique the facility. for completed quarter. an transactions of we properties of

out Properties hardwood manufacturing located in assets leased change In portfolio addition, transaction the we across conditions master during after were floor financing Southeast. and to dropped leaseback the these process as other several several are a rapidly. attractive completed a able distribution We on sale and acquire and QX. assets of of markets buyers

in see ready to future. transaction to this continue as market such this the occur attractive We industrial in present theme themselves and as execute the are opportunities

During acquire investment-grade pressures. leased the inflationary several retailers, quarter, continued to discount are which assets and/or recessionary to relatively from we insulated

to our transactions complement attractive to as sourcing small view continue investment-free an efforts. one-off larger We

site state-of-the-art education year. medical opportunity completion time new Finally, The a designed of and facility education we our in and of leading $XXX results, national now a the base levels is the smaller was relative with facility constructed was modest million. capital to acquired annual as able term lab escalations. growth dedicated commenced X% and our With range well year in that an current on sourced at the This $XX execution, I'm XX-year XXXX of and we're single our nursing million of confidence peers, a our I'll as capital through developer million. includes of rent earnings attractive pleased programs. the lease an XXXX. to environment tenants by $XX guidance medical The for of approximately future. existing having call current and which we sheet XX% The contract intent. or allocation additional market opportunities $XXX approximately net approximately letter opportunity full to $XX acquisitions reiterate our midpoint closed executed year-to-date $XXX acquisitions. quarterly strategy of an current we or and relatively control acquisition detail million our highly us of confident expectations control, many that a of acquisitions of under define under to either With a produce current in in guidance million risk markets are as meaningful the guidance, selective, balance positioning and turn closed the requires financial end, to lease an set for Since to asset will and into have diversified additional to recent half that of second hopeful we're provide to currently return we've million that our developer relationship continue quarter over will yield relationship, transactions our the meets additional remain opportunities or but the translate Ryan to

Ryan Albano

and you, everyone. good Chris, Thank morning,

period same approximately flat compared we generated AFFO last share, over share quarter, XXXX, $XX.X per largely share QX per per accelerated our Acquisitions during AFFO second by QX as represents driven from $X.XX the quarter-over-quarter million by which earnings. expected results revenue equity the the the acquisitions, During or X.X% derisked that growth is tailwind to back year. generated QX when to was offset year. late raise in capital QX which predominantly and execution are serve of were our in markets completed half the June closed a from to has of

general we of expenses cash million the of which administrative quarter-over-quarter. $X.X total $X.X During consistent and million incurred expenses, quarter, includes

sheet Turning quarter. now the activity balance our during second to

through focused for We rising where about concerned potential the flexibility. investors are we are market and backdrop activity and experiencing on inflation, balance proactive maintain capital this to markets sheet remain environment dynamic an navigating and currently rates recession, a strength

stock of share of weighted X.X proceeds we program million shares million. QX, ATM common net our price for average During $XX.XX $XX.X under sold sale of per a at

half and committed of a to the the less ATM conservative We of in Equity six was in provided match via end, opportunities quarter million approximately on acquisitions. accretive leverage additional fuel ended annualized debt to net of liquidity effectively growth remain profile our As has half basis year We intend capacity the X.X opportunistically capacity profile EBITDAre of continue our to of the second our with utilize of times. the manage to funding and to leverage there adjusted first year. quarter remaining of issuance the $XXX than leverage ATM selective leverage on program. to our the times

a term make continue pipeline are as pricing of on five-year term a including and new opportunities. addition, available into equity our interest based our million the at ratings loan rates corresponding applicable commensurate methods in August loan XXXX. on The to and loans credit loans, was Proceeds million repay on $XXX to BaaX that based loans, of and two balance X.XX% term a In with unsecured loan our to respectively. revolver. seven-year entered to On alternative the the new raise and bank relative total SOFR variable $XXX rating. XXXX XXXX outstanding in and our we for acquisition in margin from that evaluate our investment-grade sense matures to prepared five-year X, million matures in bear term BBB seven-year portion we dynamics unsecured us The the on and margin term term plus execute were $XXX loans term used borrowings X.XX%

bank bond have unsecured current maturity lengthen state and market, the XXXX. turned relative market of debt additional Given at markets maturities the conditions to currently debt to attractive the pricing both we and provide We runway no the significant investment-grade until profile capital until stabilize. our

term remain flexibility a growth degree in committed in high the with a we was market bank of the the market investment-grade a to current long-term time at and loan our decision provides that we objectives. aligns this prudent believe While bond issuer repeat being accessing future,

year are activity nearing is XXXX, This share. fiscal the capital driven growth to diluted guidance represents per at to of acceleration $X.XX the an $X.XX the For implied midpoint of per of we which AFFO AFFO our to half the results X.X% year. XXXX revision rate $X.XX our first share, range full guidance markets year of by primarily our during over our

which short-term million, key between remains based on between million decisions of This unchanged; modest million, to to the which creation. disposition unchanged; structure in remains on and today million, long-term cash proactive $XX derisking we believe million and $XXX continue on value the total is earnings, will acquisition following drag these balance unchanged. capital strategic volume volume allow range our between pursuit $XX $XX $XXX million shareholder us execute G&A the and $XXX which assumptions: Although and and sheet remains create guidance objectives a growth

year. share per the for amount the activity year and disposition sensitive markets both occurs timing and our reminder, that acquisition, a capital the of throughout to are As results

XX. $X.XX at holders July our Finally, held per XX, a October OP our Board on payable XX, on unit dividend common of declared as meeting share before of and record September or to directors

Board our it turn a that, to our dividend increases over on to continue for will additional remarks. evaluate to Chris We I closing with quarterly future basis. With back

Chris Czarnecki

shows principles North long about today and of Stars and the want Thanks, John for how BNL by of key I and reiterating has to Ryan the this close some how how Ryan. this operated I term. quarter think business running in

First base grow. to of a supports will always operations very maintain and diversified foremost, our allows that we portfolio us defensive and

difference run flexible points strongest our our is cap and ultimately on very and business, our something And And of you possible that finally, company best we a value committed drive balance of over back of ago XX initial over the think that that and by conditions we into Second, few reflective are term space. sheet pivot exciting a cash and short-term and maintaining to long-term basis market the QX and to QX what's will The shareholders. for in the an strategy. equity. risk-adjusted as the term then along a returns move how evidenced as of the to pull that a of cornerstones change the going loan that ability from pipeline. from versus robust comes basis seven-year days long to and we These thinking is strong forward the acquisition rates and completed just with make the trade-off see half is the comes three year, this and our But me interesting again we factors very shareholders. ability as our clearly for are of support best

want so net line the environment. to can we that, And right is factors as to reiterate the lease With you company think why for I those today's Broadstone operator, for open questions.

Operator

question the Truist. comes ahead. Ki Your Kim Instructions] of with from go first line [Operator Please

Ki Bin Kim

the and for the Thanks environment? pricing progress and the What's you -- might good you of serving just morning. change year? Can in acquisition describe how remainder

ChrisCzarnecki

would got repeating little mind you It Ki, that? choppy on a our end.

the just so your asking think hear about acquisition environment, sure you I I but great. be if we would that were you make repeat it, question,

Ki Bin Kim

Yes, sure.

environment or year?. remainder If progressing -- acquisition think the pricing? this pool about of you can talk or the the about you how And throughout

ChrisCzarnecki

Sure. talk bit and more John little to I'll well. Absolutely. it I'll off, to give a as Maybe start

past robust. the level, box I think our positive year strong. And transaction a volume $X previous that talked than that, To have about remained more set from the something great high it very very opportunity put quarter north we year. we that or has strong is second a things we very transaction of on little about buy been that bit billion fit and we've a feel so did around that very for math underwritten last through than of the calls

our significant a company. increase that's for So of size our

X.X% exciting. keep rates classes, ultimately it. this ultimately, are excuse levered little very what's for been factors has cap that that seen and a we're competitive dynamics very a there's the environment, different relief certain us so at market all driving and been that's exit attractive. selective relative through And financing buyers, look a this then as the for that secured market, say working and than PE-backed We've in few both was net has our buyer, impacting three that months be it also is positive uncertain but still Obviously, buyer us that clearly And the ago. to asset allowed rate cap generally allows came I'd where of more bit the the which created active to to set me, pipeline an quarter

like manufacturing clearly processing, So -- and with store things non-investment-grade food industrial that. you food very the saw that space

being dynamics bid. cost ultimately, transactions. are that return created market different changing You of and the see backdrops interesting who are transactions two the how for those certain those still and being is And expectations of active capital also some in have

We XXX number a XXX are to parties bid seeing points of being across ranges basis sophisticated wide.

to folks six and number cap of as a you means for backdrop with that that's in interesting up more unable coming parameters might return is that chooses folks couple with coming certain a and continue that I'd set around it, come not a two out the at or then transactions to as an a times perform ultimately also structure certain of or three buyer at And to certain can a X.X expectations or there's well. in cap. come some back market a So or perform. have And some

into last BNL move And so of established reputation able pretty strong more are like The with very and back and with saw a to between weighted in towards ability to move we that retail a asset to execute. pivot in restaurant. opportunities those you classes, heavily and obviously significant whereas for is stable it clearly our companies clearly industrial are this and our quarter piece way, be QX,

cap good through the good we on more we feel property and that's sure today are we but Again, for our year, we of saw And to And see us each rest going-in on pretty tell lot together, excitement I feel year. factors in well. for and John that bit And and where we of XX, about being acquisition really one today. so there's talk of a individual so guidance XX little size the we good it what's impacting QX. range. we what just a beyond all granularly being pipeline the ultimately able sit was that, going rate for execute are to back not to about I'll but was and as really do the that to to factors of can basis opportunities within that of opportunities drove sets, as and those does some those half putting the maybe if one component that QX able about the execute the market basis the differential good between kick you of that a go points can parse I'm give

John Moragne

Yes.

forward even was, So a that placed pace a historical diversified to that, and evaluate where which think significant about billion differentiated from $XX remains high Chris currently us strengths increase is very a but year. this from strategy. our investment to on we year, in from market competitive, carry opportunities we are last The over with

you said care, pivot as in to these restaurant, the QX types, ability industrial, out his increase point basis retail, rate in health remarks, XX is cap Our in unique Chris from that space. see think between play in that to asset And we can QX.

see high our for with as mid-six continue to underwriting and We standards range employ up in us the great Xs. opportunities disciplined well to the strategy investment that as that execution we

So been a area some Retail pipeline. of in activity, lot in in be to half been That's stand health and we and the today. is we great there's of the an always restaurant strategy, continue a some we to the from expect second has to continue to But our talked well. to year this interesting, we space. execute about the half year some light. something the back And care. really able play to think we've hope Industrial, opportunities little opportunities in where good on hope bit to we as where that additional is this with particular, some of additional on be going year growth have opportunistically see

Ki Bin Kim

prices to raising spread think to a you guys fund How question. equity little -- equity the sector -- between assets, smaller. acquisitions Obviously, if have versus raise the you assets? of balance buy second is just been bit spot do but the additional your And

different think curious about avenues. you those Just handling how

ChrisCzarnecki

Ryan get We'll into Sure. that.

Ryan Albano

light Sure. our about certainly lower about little a That's assets too pruning a bit disposition always today, we the are performers. different. before we we're and maybe of Frankly, portfolio, but strategy. as main that not think have thought different Look, dispositions

it think could fact like about today see assets and want costs we to to we very dispositions manner. frictional that in assets our a levels think that really the accretive you As it to positively We raise pricing associated at equity these sell capital, the exist and we and recycle portfolio with take put various the that don't that, through capital and the work you long in meaningful ability to recycle hold them term. an for versus way about

than certainly assets bunch things the the costs funding two like So But through acquisitions feel weigh when we related to that capital own it, and should we perspective. out, a very evaluate shrinking frictional anybody a incurring with at for equity look from portfolio to we comfortable term. of allocation want those it rather long

Operator

of ahead. line the BTIG. from Michael comes question Please next with Gorman Your go

Michael Gorman

in good the a And morning. of But was have the and if tenants Yes, in wondering about a in given your how market. look the thinking approaching different about in in there the lot cost impact underwriting deals at you of this you financial sector, maybe portfolio on the change capital as just volatility capital you minute for different this obviously, of financial markets. discussions of you're having cost how I'm thanks, could wondering talk of underwriting. I how for buyers pipeline, that tenants about change an structures out REIT and in is the capital that your you're strengths

ChrisCzarnecki

absolutely. Yes,

relative I where sit we different. probably think to isn't dramatically history, that today

change today clearly bit a about is consumer sectors closer and making incremental underwriting lens think see in way, oriented always very sit more performing highest the and we could the I obviously in health is or on been the you the highest some the industrial health that acquiring biggest restaurant thinking our and sure terms in same. very up-tiering of through quality, little doing and the much we're just care, putting But where where on that perhaps or picture. sites Probably a tenants' portfolio philosophy of regard. possible regular pressure financial in we've difference retail downside

of stress tenant testing Our team, or time our and in lot diligent a spends team with underwriting. credit each conjunction thoughtful risk acquisition

And basis that and fixed what stack gone by does do most to So bullet their out across coverage ultimately that common then the they've acquisition points, could margin or obligations. what rising charge XX% an in math a more their is that their also the one of memo that XXX and and obligations. stress XXX, do meet and that points set overall rates, margin of tenant tested looking being carefully the downside does at of of occur to compression same sort to of compression ability tenant's And XX%.

in And we XX three, been thinking years, pretty years. how number basis good And our heightened a we strong a is the at to embedded talking today of the about such handle capital type and next so is as last pushed are as about a ever. I we've we obviously, our in just two, those able risk and that's portfolio who debt of bunch metrics of discussion have and trying than think lot and a a non-investment-grade collect make well. then always long that, push on refinancing are for four that refinancings our risk focus a which looking tenants of that have and on to Most a time spent refinancing more understanding a might out the of same in way that where topic but tenants years, out a stack as future tenant today, possible have maturities sure the in

think focused more today on I are what ever. we're both factors all So than

Michael Gorman

close? some as And range as as to maybe this not industrial started helpful. and just the bid where and winning of bid transactions back on you close of increasingly to the you close you're coming sellers to entered are starting are market, even certainty then some of on when to able being the top the accepting you maybe specifically for you've transactions because bid top seen see of So That's these, time? Great. the see side, wider your you reputation not

ChrisCzarnecki

sure around from surety that. are terms close to And in a We I'll up financing record sure a view John brokers the because have I'll having that the examples. a with have track I'm give we market we when because also Yes. signed that we with and I that to deal a we to love there's deals absolutely. XX-year not we've going all, is got where we with examples that unless no, and absolutely market, integrity work sellers a of at let cash up are diligence, with that underwritten need have unknown they're reputation having done are say and that make that the just to track track sellers he's winning and of that do that And record matters in close. part of in no comes with folks shorter ensure slightly it want coming this they to in that of financing or this during some we have and particularly are comparing that contingencies deal. and that the financing this or at their real make in record hand looking at that saying key operational end the to that going strategy, business sure us contingencies,

it's talking on about these has So that also or walk walking the would ability I mean, execute the transactions. I absolutely say, played a part to in our talk.

put set to it price more we far an change honor for. that long-standing today, the important over on know a and us an the and we out But to it March, and than to steady in incremental picked spirit while we of early hand for repeat close. was And took a what well industrial up partner really relationship, there. honored differently a for continue closed during in We to that and shook squabble transaction deal that it be this hands We probably. July we've a time brokerage

with that we're John And it's to happening so that's serve after so. day as opportunities to said, going every environment, continue today's that And will think well. us I

Michael Gorman

Okay. Great. And Ryan. for one maybe then

think it, of interest to maturities. out Just potential sticking think, thinking, with drag certainly wonder the the about take I market, financing short next next years other And versus of years far over to you access how think about at looking should your stack? thoughts care indication balance probably going side of the rates you you to how this think lot three pending of things. two the out, And or especially maturities. XXXX to I a how folks is I this out capital are in where extending be would your three term you completely than take in wanting over you're where understand, further is going but just two on right, as we some of capital type as rate

Ryan Albano

Sure.

quarter's little if even talked think I bit we sort we to need maybe reference back previous of didn't conversations that I a believe about the I go fact call, last to or of driven be market it bond the year, pace really this year say by acquisitions. more to early permanent next maybe until source the and financing out late or a would

about solid, We're term has we excited Our about and recently the that very very pace of loan acquisitions also excited that. had. just we're been execution

we're capital. forms always, bit market debt I as dislocated And has believe, this and at all redeal point. As you the there been been itself bond since, a a of April out, pointed hasn't frankly, and assessing our executed really choppy

term we due to are, loan. rates really an banking relationships. not unsecured So loans other sort financing. were permanent the the rates thought identify as creating our of through And up of taking our in fact shoring access a fact opportunity we we strength of are any and long be balance locking seven-year than We our with view where did to we the where may relationships, discussing able sheet, while saw term headed, banking that liquidity

say, of, pricing seven basis, Xs that overall And five-year So swapped loan. term a an the term in that time a what the not seven-year or is $XXX all on out versus year. perspective. REITs loan $XXX kind perspective, seven-year seven high can call on an seven access alternative from market all-in a million did -- just was talking, term you're and of on XX mid-Xs it, a bond frame we loan -year million At from

no-brainer, it locking we perspective, permanent all more locking little bit And day long. from no-brainer it in cost drag out us, meant financing interim that take a to of or a would we was a capital was So a that into that a if put the drag, source. debt of near-term today, decided

Operator

go John line with ahead. Capital question next BMO comes Kim Your the Please from of Markets.

Unidentified Analyst

It's good Hi John. for guys, morning. Eric on

that just reason a in your kind better it is keep On of markets. sense than the new -- secured more flexibility facility, is market give theme to today or capital versus with you is on the sticking swapping that facility? variable the to unsecured Just

Ryan Albano

a little I'll Maybe Sure. just bit of color. add

XXXX debt, of term the $XXX pay swapped our total $XXX million million loan which to was out. So the down used term we already

a a swaps we unsecured majority swaps have a of pool and debt, bank variability. that which our pool balance pool with of -- of of So sheet, removes the that

So XXX five- XXX out fixing the -year for seven At the tenors. evaluating referencing. point, rather to to is already loan swapped rate or new out. And exposure all-in I term that all XXX that's remaining we're was this

now to some look right that likely out. and we're it fix So of evaluating

Unidentified Analyst

has does added And kind maybe watch that your on one then removed? given been change the view How there environment anything current Perfect. list. of or the Is today? at all

Ryan Albano

take I'll Okay. that.

or overall, a since In terms with nothing the our and maybe sort have of QX. perspective, gone and them. tenant one Only looking of watch it. continue of to off they that been of uncertainty, in really there's a weakness But say, change new to way chain-related from the on of trying the monitor inflationary backdrop, any or real no each associated varying of say to of market from from next. the quarter a I'd tenants. the at dislocations one of thematic Obviously, we changes specifically clearly, pressures, supply handful has material Chris' understand piggyback list, degree perspective off in I'd tenants meaningful come strength on how them, where to terms points impacts

spending, have consumer on had space. certainly how Chris focused We're that our restaurant see we play discretionary through. where that the one we keeping And portfolio? focused watch impact referenced So no is that do tenant area an other way discretionary its make overall, more actual consumer identified But that that's that a thematic, would spaces. few eye to list point. and of this sort on does at

Operator

of Your next from line Kamdem Ronald Stanley. Morgan go ahead. question comes the Please with

Ronald Kamdem

Just of ones. quick couple a

question Just sort going on bank loans. back of the to the

the let in quarter, X.X Asked just of have sort to a that equity way, back you was on are come before go how to at as opportunities different you times you debt-to-EBITDA of evaluate end high to markets? the

Ryan Albano

Sure.

leverage, operating that we're low zone. sort I've think mid-X% in about think we As to our I said that comfortable of

subsequent one to raised quarter to And We end. ATM to were X.X operating also the the think identified next, the off comfortable we're certainly So I of in equity X.X. We've we some quarter mid-Xs. deals. from

environment. us still in feels I'd this comfortable that to very mid-five So say zone

Ronald Kamdem

comments, talk acquisitions so can and And last missed Great. of you opportunity looking the you if covered, quarter, the sort I apologies forth? Canada set what it's what the opening so maybe but in about just that like is market,

ChrisCzarnecki

to excluding doing. what we quarter as the Ron, we to last Canada portfolio continue Sure. we're complementary as did about think

differentiate sort spot three three a I we -- them our provide then joke. focused assets, as portfolios some looked but and two seems bidding a And sale-leaseback think buyer a who a assets like at dialogue Canada for good we neither us on -- pretty solution and and to of we through we've a one also to as It's the domestic purely active U.S. looking asset. only fruition, continue with holistic thinking were to are continue add in one came transaction. Canadian well. or value be they where of that at and that's And to ourselves industrial have internal whereas can plus process space would we're quarter, U.S. tenants this to

are year. is for where And the the rest of sort that we so of

across preliminary but that's We retail also to Canada, verticals there's more continue if more point. bit opportunities this little explore a the within at

as as of up more So diversified or an two leasebacks a in incremental competitive a where to those ourselves differentiate we on part the asset generally way pick larger focused landscape. portfolio sale or portfolio a might

Ronald Kamdem

where order of you you're right buckets, lot Great. And was opportunity a of widening seeing to dollar? guys rates, sort incremental have most the just cap of my just the now sort look opportunities best last is for the different at the and on where one

ChrisCzarnecki

we a certainly but seen talked of industrial I widening have non-investment-grade think Yes, the call, Sure. early the in more part little it space. about bit the in

light and some the a on has of care vertical, sort of then us So for widening the a which bit up it, retail year, seen again, quieter. this processing secondarily little taking Health out our non-investment-grade bit. distribution little manufacturing, has of but that third food been is that has also widened

XX strong. not movements also pretty XX investment-grade little of a any bit retail maybe space call there the we're in the pricing widening, but dramatic hung ready So buy been to has has there and because

that today, yesterday, being think, the with fairly for weighted the now at the other dollar is space, towards So pipeline like incremental more is, half equally I the heavily something weighted were where right we remainder. our about and three pipeline industrial that verticals for which after non-investment-grade looking

Operator

concludes Chris question-and-answer will this turn to session. And the I call the Czarnecki.

Chris Czarnecki

good. for earnings Sounds second much, you our everybody, so Thank quarter us for joining call.

you of back look investors, of We front of November. continue we end being in forward And and early to appreciate wish with a results of the we strong QX summer. our in the Bye. great support all you to

Operator

This concludes today's conference call.

your disconnect line. now may You

Broadstone Net Lease (BNL) 7 Aug 222022 Q2 Earnings call transcript