- Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to Broadstone Net Lease's Third Quarter 2022 Earnings Conference Call. My name is Drew, and I'll be coordinating your call today. Please note that today's call is also 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.

Michael Caruso

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

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

Christopher Czarnecki

good and you, Thank Mike, morning, everyone.

navigate quarter, focus environment the third to capital allocation prudent economic we the and dynamic continued capital with backdrop and During on current keen carefully markets a discipline selectivity.

rents XXX% base of the BNL quarter, of the portfolio during announced we completion mineral perform update our in well to the As QX vacancies. with following business continues and collected

the earnings same-store during first growth, strong the on challenging close capital the to continue translated of addition, of another XXXX quarter source into invest growth. markets which have year despite to accretive both external a the has in strong and year performance positioned backdrop. execution a footing, portfolio delivering of we us market during quarters out opportunities consistent accretively to X Proactive In capital

allocation we heightened and prudent they portfolio remain our lease as underwriting uncertainty. to we to dislocation. levels disciplined and of and public our management, management, serve and year, B&L private calendar competencies, current net a core navigate approach continue economic sheet capital future focused during as we proactive Given as key this success uncertainty pillars on market new balance of will period Conservative economic

September more X properties all across of XXXX, subject As were by and single our XXX a but than different XXX our ABR. of XX, lease, XX were no X.X% of accounting industries occupied for tenants tenant commercial with to properties

the term the As weighted average and was rent average remaining of X% years. annual end, lease XX.X sits quarter weighted portfolio's at escalation

the of any As many as lowest operating provides and I've net in event lease mentioned times a shareholder preserve defensive the protect past, tenant with work to the flexibility any through credit us value. tenant highly patiently tenant concentrations as some one-off in against model the of diversification to space, matters our levels look serves diversified singular hedge long-term we

when effective GAAP term. of successfully as Arizona a require an X X.X% without pursue For following the risks, a crafted X.X% can care operator new ability not to the situations business yield quarter, third in of health is occasionally the solution. At of experienced property located under completion were XX-year lease appreciate arise course solution a the hospital released patiently we only to ABR, afforded calculated investing positive the possible. example, lease feeling a as we an asset long-term of with over taking that net pressure to backfill the that quickly loss a and carefully We

billion, full growth $XXX $X in revised October. in and of we million on on at best for leases XXXX $XX define On X.X% year-to-date, of guidance of weighted our early remaining Our properties pressure to XX business during approximately investment lease on for were solid at at investment of resulting growth remain of with our capital quarter. translating under outcome given capital of that range retail health in activity as care the XX towards presciently X% selectively execution in Proactive of spreads these a of approximately and in investments focused powder the new guidance opportunities spanning $XXX weighted has acquisitions closed allows acquisition given the of executed rate strong average industry-leading and during industrial we at we've letter the environment. weighted annual continues supports years include restaurants outlook upward an year initial cash investing rent additional revised acquisition million contract range having to us in rate Since escalations, quarter approximately in we million which cap dry deploying volume for the control investment end, diversification markets rates. situations. predominantly our quarter, shareholders the a term $XXX current The X%, million market update previously average markets accretive cautious to XX% lock X%. average which and at closed remainder GAAP transactions one-off our an third acquisitions spread We invested front, provide $XXX of of to us and the X% are external pipeline. year-to-date allowed prevailing risk-mitigating fourth capital external This into million reflects the accretive an either the quarter's cost weighted benefits we have opportunities currently our the reaffirming cap These With X.X%. intent. control, or a acquisitions pursue volatility or under cap our

the to capital I'm of to far external growth private that like where in and We, year our highly recognize values private current we market market requires on are prudent in in near many during be thus this in focus asset capital measured a adjustment and all commensurate the has near that forced a the tracking we approach environment term. take us to Changes of XXXX continue without REITs While dislocation. to of peers, term, from period we've accomplished end public public all selective allocation of the many perspective. for will capital in proud more cost an

we opportunity the to to a at However, pipeline rate and characteristics. to to the changes allocate of cost wake and as provides in by expansion our currently us seller in of cap movement I'm box expand to in pricing encouraged continue the expect seeing broadly near the unique our in accelerated types reset capital buyer due are further see have expectations we cap pace believe demand will capital. term diversified where property sector-specific supply buy rates or more

and Before a I to several to provide quarter. few call additional want Ryan, passing the to on completed to during detail transactions the third subsequent take moments

average acquired X.X% rent QX, average weighted During and industrial a properties escalations we lease $XXX The and separate X annual transactions XX of for term. include weighted leases XX-year million.

revenue-generating completed addition, food we property transaction initial QX and in and an In during Largest was space. with yield quarter distribution the X.X%. existing an production one industrial invested XX CapEx tenant acquisition well-established profit of the during in at sales a lease

portfolio. economic exposure space to continue environment, on remain high-quality grow the with given of We our this we're and during to challenging resiliency its acquisition pleased the bullish

directly We has the the a quarter, part very leaseback that completion acquired of addition, assets a transaction history. and strong following food sale sourced as closed we BNL's the X transaction manufacturer operating successfully In with of history. a largest in

buyers to costs. debt continue opportunities We the side-line levered industrial compelling as space see light the in in many on remain of rising

average retail both to quarter, we granular continued during approximately nondiscretionary size asset million. for account transactions across with $X.X acquire Finally, an and million investments of spaces. These the restaurant $XX.X

often to I'll turn Ryan. We continue view sourcing an call over investments to to one-off large effective these as our With the efforts. smaller that, now complement

Ryan Albano

execution Chris, balance morning, report to as approach positioning during provide to of everyone. pleased our details regard you, quarter capital good Thank and the additional and quarter we solid with another sheet earnings year-end. am and I markets

many in of and opportunities. that approach our available us. lock we evolving Chris and capital to equity all proactively has capital acquisition raising results pressure volatility opening markets on of Year-to-date, pipeline the rising both cost approach traded This of As rates us markets remarks, capital REITs. capital debt have stated to in taken of in complements publicly placed via cost attractive for has allowed an opportunistic to his inflation, tools interest an

X As million XXXX. matures that we highlighted unsecured bank quarter, XXXX. have a into loans during currently We loan term matures loan new $XXX in $XXX in that our including until August, entered debt maturities no and we call a X-year term term last X-year in million major XXXX

the achieve summer. we conditions I Given bond decision profile were the in at the investment-grade extend to maturity the to with pleased am during market, attractive pricing relative our able current

a borrowing August XXXX. notional total a SOFR In entered million weighted addition, interest swaps fix of of $XXX with of rate into at to average component until X.XX% the rate interest fixed of we value rate

With the unsecured addition rate hedged. interest swaps, bank term loans of remain these our entirely

the on During raised of of our sale on There $XX.XX. was net of a proceeds ATM capacity of we $XXX.X million ATM quarter, approximately price our $XX.X quarter remaining opportunistically third weighted average at as end. million

per In at of of addition, common we price August. shares $XX.XX a completed a stock of share offering forward sell XX public in million

adjusted the in proceeds As net of EBITDAre forma net agreement a approximately we resulting September forward X.Xx. XX, pro $XXX.X that sale annualized million, to anticipate XXXX, provide of will of debt

This end. conservative of given of approach part during the in We especially have remain capital second a maintaining opportunistic provided forward for dry us ample year raise leverage sale and We agreement current the committed macroeconomic the term. near to positions to with uncertainty. fuel any powder of profile quarter half not the liquidity, the the has growth as accretive acquisitions to settled disciplined

cash had revolver million $XX liquidity, $XXX on outstanding approximately on which our As $XXX and million $X.X million of of of end, quarter of we includes hand, billion forward of availability equity. approximately

to turning financial our Now results.

year. which equity to by AFFO $X.XX of quarter, flat waiting offset or X.X% a million the same $XX.X share, AFFO share is from raised driven acquisitions, for generated per results the share largely approximately growth quarter compared late generated revenue last during QX. During was share we count full represents quarter-over-quarter period over QX, from by which when per per QX

Although fixed, debt the line expense outstanding of interest of rising on our XX.X% in revolving our caused is have total increased form of rates credit. pressure

XXX quarter, the During SOFR points. basis increased

in on We acquisitions the We the quarter million fall total which keeping expect tailwind us $X.X earnings guidance final cash $X.X of to a year. serve within includes expenses late SG&A expenses, incurred million during and administrative range. to general QX and early of track of QX, QX as will our

our press X between per XXXX October based is of Acquisition $XXX results and year are on $X.XX our X.X% diluted billion, range guidance share, total release. the $XX following fiscal $X.XX unchanged assumptions at $XX range guidance rate disposition we represents over share. which remain growth reaffirming per $X an which of our $XX AFFO million volume of 'XX, and implied to between midpoint For $X.XX and volume the cash key G&A million million. in between since million $XX million This

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

Board $X.XXX on Finally, dividend meeting This increase share per our common October at the represents a held declared XX, directors unit. over our October a OP dividend. X.X% in

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

Christopher Czarnecki

shareholders. The has been P&L year this is immensely proud of all Thank our behalf that team on accomplished you, at of Ryan.

constructed, believe remain highly economic of during to purposely seek allocation and the period questions. that difficult in thoughtful and continue is position We that valuations of private continue public capital position we tenants conditions. and to rates during in open to our this We coming perform to diversified market favorably can line between for positioned portfolio are cap now evolve as quarters. ourselves the comprised Operator, dislocation

Operator

[Operator Instructions].

from today Ki Kim Truist. Our first Bin is from question

Ki Bin Kim

guys? you they color mechanism is for coming this to of need reserve the new where you a what Cruz about not maybe the economics versus And type this from might talk have of there Santa on of cash it operator loan new Can kind was sure any I'm deal previously? operate some the the operator Hospital, hospital? what in

Christopher Czarnecki

great XX and Bin. XX deep a to group Ki reboots. They've that a had about team the in a Sure, talk operating new one we're are turnarounds has had and the excited and They The they're space is Happy operator. in some one that out management hospital together really about to experience and to years that the obviously hospital collectively operator property. think is going at very of do things California. currently

a and very capital being their able in portfolio the before, have to the towards in able view the well. of one private through They're end to private they investors years community We in backed, begin to excited were by who have step not to they're another deliver and private expect the equity be coming adding they'll year Cruz more services and this several again. and take been to and the Santa about property as

general their background. in are Arizona that's So area. based the They

ours. thinking from us that's one facility anything actively that to want another and through more get do and lease also lines with for that a And or looking dollars, it associated us out those TI reconfiguring associated about Ryan, the positive as they're along about own with potentially did talk So actually you key their to have of capacity through not that and it not at positive the clear, is should be I any the well. the lease? economics

Ryan Albano

Hi it, any your as last We don't the lease, expect in of time. sort I and out we in terms the Bin, terms specifics and specifics. that careful to of the them to very Sure. see ramp-up provide to lay structuring new new of of lease Ki and question, around you'll our thoughtful were in some loan

hospital a relicense So we timing lease that new lease that's enrollment. an perspective, period the into the on in lease XX-year with From specifics dependent the The to of variable the over rent built ability lease. Medicare a a yield achieve free of GAAP is effective is new that's duration have entities' the X.X% and of term.

a to the that, through they is would achieving period August would rent escalate depending rent they Xx our yield effective begin or shorter a that just through XXXX, lease which at that of a or that on and free January of XX% XXXX, next After use full up period period, in overall increase frame. run from initial assuming over prior investments that would and From the year that scaling consider X.X% be operations would of to time it could over and I September or of that rent. of referenced the be the that year scale we XXXX represent eventually beginning rent period, So there, what stabilized the that rent X.X% on of there annually results to life yield X%, end as period, scale of the earlier.

Ki Bin Kim

or other list, when operators tenant Okay. have a you watch on Great. your your And look what's at in that might are there list situation similar any general?

Christopher Czarnecki

of today, credit it. the go of watch Sure. say through of a and to The handful heightened watch of Santa list ramp obviously they're none Within Ki Bin, is I'd monitor we'll facility on which continue individual list names. keep their comprised bulk are Cruz the period thematic, up the them tenant names. makes they as that,

in So for your matters reference tenant that most list bespoke to have Cruz. Santa simply things any of the specifics watch other the to been a are time and don't on long tied have

Ki Bin Kim

list, But X% rent? say, situations? up are rise the smaller you of to let's those being tenants kind they do of over on point the of, Or watch

Christopher Czarnecki

of tenants, They're and and and relatively of... all to we for monitor very X.X, small to X.X again, pay so of them situations rent, small the a they've term. long continued kind handful continue

Operator

from next question Chris Lucas Capital Our from One comes Securities.

Christopher Lucas

cash situation. to of anything the Chris, rent? third quarter hospital in of couple just follow-ups a Did terms it contribute on

Christopher Czarnecki

It credit hospital So this in had thought to from perspective. Chris, risk of that transaction thought structuring key when we traditional letter we we was one a part we system. of went initial profile about and the a relative when placed structured about a this, the more the of components of

end accounting accrued put quarter, the ultimately stumbles at letter rental the of by and the on we had of in time wrote-off ended place X-year And cash-based up we and the covered the tenant income. first of quarter, When to towards quarters the having switched X the second credit letter were then transaction. of drew credit, some then the in the that was So a wanted a we come for remained be to credit lease the The is remainder all new equipment facility. and other because then the time, component, and operator medical and is during fourth obtain the effectuate place to in of quarter. in keep income letter which the the of through will acquire ours entire the and the especially to as key the to records, the entity able them the FF&E ultimately

lease new maintained quarter the was And So kicked that period. through the the time in just then after ultimately, over. lease

Christopher Lucas

just workers businesses many How remains still inability that questions as the to of painful find guess different various to Okay. on one that of the processes lines your impacting perspective inflation. relates follow-up lines and sort for is, is of it one is business, business? of underwriting I wage of

Christopher Czarnecki

great Yes. a Chris. That's question,

was over of one that think a obviously point was struggle I was honest. that That the be level was having Santa months staffing. to perfectly of Cruz the a pain things right the for them for winter

think I spaces in question, that impacts anything. lower-margin more tenants it than your to probably operate

the haven't last little lower-margin retail there's the X a So much space, we as and over quarters there. in done business been a of bit obviously restaurant

there, labor relative to an think attention certainly comes there. to And one the on at. And the something think side, lower up investment restaurant the us space. I that the then be every every margins that's individual and costs little margin that and quarters, if close they've higher in of to to businesses of tenants labor. with on those for it's that able lighter coming as it's industrial those we're retail labor tenants shows committees But and transaction during a specific most that labor impact future absorb been a it for and cost associated through we of component more most sourcing, the some I question underwriting bit availability through were margins think as trying acquisitions well are in looking fundamental to probably such we'd paying do we're in in

Christopher Lucas

And then you just... Okay. mentioned industrial.

I think longer industrial at Nareit, June rates out talked to when back met related single as tenant were gapping fact about duration that cap we in you the leases. it

guys and last the stalled Or you've quarter. the over seen the been further? in has that of executing levels it cap You that third rate sort Have quarter out executed on here gap months. the at on several second you

Christopher Czarnecki

that the well, but as but done Sure. in we've I'll theme take on the quarter let that... do your so... facilities on food with as I'd we've processing executed it, John continue John, well fourth

John Moragne

Sure. Hey Chris.

move, our That's strategy diversified rate right. cap of to as this, where exactly multi-class we've pivot don't it's has where highlight to You're the we very allows where the QX, installed. broader I have on are most in since if reflected on acquisition the goes place that's strategy at place that our and do in in risk-adjusted well, it things you for quickly was aperture seen to It QX, like markets the QX that see us benefit expansion. than we been which the started as first but industrial same a to Chris know certainly that opportunity most, the to in a seeing focus as certainly QX, and a focus when think focus. be and moving the basis, of momentum the best us will I continue really acquisitions indicated

Christopher Lucas

cap of or invested that the starting comparable other in underwritten so you kind that that or with you rate any stock? lines show show have are industrial adjustment of saw seeing quickly you Are business to

John Moragne

a of shift had in move. At we've of not That that we Not overall point. the industrial a move. that in for some slowing in environment, would just point, enough market, that rates, of as when would point host XXXX everything interest really rates at of recession down this the cap about from they see volume at you where terms impaired starting looming capitals to this at a cost drop-off the we on being rising you're overall and people, non-IG full the have macro hear of space, that fears said, dining QSR. else, continuing in away you're and sort casual of the think restaurants, a although we're Certainly, to whole retail level not focus phasing to have in

what's move, to focus as allows them places approach have evaluate right things those now everything to prudent happening capital to to, we'll pace on those case-by-case best disciplined we on as our and which to going and given is basis allocating move allocate since spaces catch they where the But us happening, that's begin so see a they're to to industrial. opportunities, elsewhere. And those at to up

Operator

Stanley. comes next Kamdem from Our from Morgan Ronald question

Ronald Kamdem

hospital, to make Just just sure on I the understand.

into was? sounds said going goes sense. just end the capital some your no sort operator of So line. like And from clarify through income it, in rent the is then of it which Can XQ it are coming what XX% and the on other previous, you things you that dollars into makes

Christopher Czarnecki

Oh, sure.

had letter the was year's June, it rents of quarter and transaction we and believe, of operator. a third a we the I portion So were the during negotiating applied while new credit run. And to

residual that, nonrecurring. of other treated rest so and backed because now AFFO quarter it's next be out income And it will of the the of as is

Ronald Kamdem

Okay. Got it.

Okay. sense. Makes

to sort Just talk moving funding. want I a little of bit on, about

million sort term hedged, guess I also number see understand trying entirely that the million was said one, Or am what when there? I it's think, the loans. the to swapped? other $XXX of, Is of $XXX you I I'm guess, XXX swapped. there's unsecured missing I I

Christopher Czarnecki

jump Ryan let in I'll there. No,

Ryan Albano

of a this pool loans of unsecured all term of think We're pool as unsecured our a swapped on Sure. We about out entirely and point. it at debt. swaps

there in we as existing are that debt, of So place. already swaps some refinance

So the incremental was swapped for needs debt weren't amount that added we out. incremental already

loans unsecured our that, out. were swapped the term upon So entirely of completion

Ronald Kamdem

And on with you ballpark in? rate put that those a does Got just fixed factored it. where swaps

Ryan Albano

Yes.

rate was debt. fixed total quarter XX.X% end, at debt of So our

Ronald Kamdem

Got it.

to the of sidelines 'XX, right? rates, the 'XX, for XX%, 'XX thinking $X good seems more in tricky, Should funding obviously, is the That's right, stock which how like of you're then But that and but the 'XX. of most really transactions expect mean, is... I just lot guys the you below fund stock and And on it you Okay. be did transactions about may in X about good guys you Or sort to guys bit really as a are should helpful. locked transaction business obviously comes really just a back? incremental you XX.X%. the we given stay little thinking good until did

Ryan Albano

Yes. Sure.

As last we front we're moving we really right 'XX, $XX-ish of continue think now. to on the quarter markets the year the And about under invest with up million as execution capital over pleased frankly, about we the to very and, proactive It be set the fourth think able us as control to a have capital. through quarter, whole.

moderating amount expand. So we cap of powder rates to with But with this our we're XXXX. that bit change sitting work we be watch a market able our dry very dynamic expectation decent into a way are as to

brings with leverage the think forward forma equity pro I our agreement, end, a to quarter about it at the us As X.Xx.

point at make continue runway that our way the to situation. certainly some So us gives and this XXXX assess to into

Ronald Kamdem

to would I I'm is for you here? out. So 'XX what issue So guess trying equity figure

Ryan Albano

I don't have. the today, make that we that to Well, decision runway given luckily, have

rates moving where looking a cap move. at to of right? with of think one that expectation it today, and few before continue sit sort variables variable, we highlighted John There and the they I some that's are

our capital that where we on existing versus price we think Other appropriately to market execute share in want them Do recycling. and is. So at of pipeline levers it's opportunities. about are really priced that portfolio positive they think our is a and of matter the looking our

at today. sense raising We a given have certainly of properties a incremental that look more equity the dollar make think handful than good I that we've

to decision right that However, now. need again, happy we make don't

Operator

next comes question BTIG. Our Michael from Gorman from

Michael Gorman

you channels. if was you it, sourcing missed of to trend. I'm move where of could pricing you those your the kind to across in about first to if talk I different the and seeing builder I Or sellers maybe tightening I are I'm the on if back, you some things. Chris, cap We've coming the different but wondering could potential moving start their movements heard go the where are across cracks just and that with market starting seeing well? as side just rates starting wondering things But are was for market discussions are you're merchant current talked owners lending wondering you up, as from? expectations appear see sorry

Christopher Czarnecki

to. markets start, probably on types very that that relative options and then the for debt also as on individual cap sort sophisticated with jump movement cap X.X% rate think to and negative we rates, recognize you this. he's owner public in John since we are I'd in blended is do. leverage lag Sure. can I'll the quarter. side, too ground here then much where that that first picked more the about seeing say probably yield faster always we to that even markets about of alluded a March, on relative we the are are I And might in markets Folks not be this quarter there transactions on funny November, it's private property as talking it attractive the that. it's when in talked about the other an closed July, up and today call certain that for in than include the transaction adjusted appreciation in also and And certainly results we the

accepted thoughts specific builder would a might front. again, is there by of slower I have rates we've don't more been and some the while understand more there it, new been ones that flow we've to I cap know, seen owners as late. sophisticated a have on reality say, maybe pretty the pleased the who So John folks the the movement recognition probably individualized more than take do be has through. But helpful. that

John Moragne

benefits other proactive interest increasingly rate they as a our about the low environment, I'd they're that to tenants financing Well, all the they to think that think not thinking looking opportunities now it, are our more put more are can But of market are only to liking I tenants coming to funding is where effort we're talk. thing difficult. terms of In strategy a you be be as a trying that us into to potential we one sources, situation creatively, up know like on they're this the are expand. where add, seeing to relationship the in would continue sometimes tenant leading

really presents and And real it. a so that excited us with in something we uptick seen get that we've about,

well tenants, more rates expansion, where they're So of and are people the open rate the dislocation the taking our advantage in of of of existing that well to that's and tenants. deals as terms as cap deals, opportunities direct the of in those we relationships that the growing the of of QX beginning where some our end as development of closed at we're pipeline large sort the there existing as with those majority out with seeing reflective QX

Michael Gorman

just then -- at And branch helpful. That's discussion the lease new the Great. or one taking of off restructure maybe about your Cruz, lease Chris. Santa

that that get right backed? assuming is 'XX? private doing equity a private of top is And a the with you just the be equity-backed backed. new right And isn't now, could potential more portfolio, kind curious pricing, percentage your tenant you within in You would private kind the of mentioned at base could the economic speak Or existing comfortable equity that what's I'm the if in you deals? slowdown of there market tenant on to more of concern

Christopher Czarnecki

consistent first the last PE has portfolio, relatively your couple that is which been to least time, the about our answer The at in question of years. in over it's backed X/X Sure.

alluded as relative I business about we and that or of is importantly, in defensive other it's in, stack think again, is answer lot more to question PE what certainly One go into line, portfolio. Ryan opportunities business of less our more a it. they're the how variables the your the does to, sort to deals, up have

the before perspective, they How or defensive no. they theoretically So focus some about especially the processing does at there, of compression real on binary a given and or where be that a And from need break also, -- it capitalization the if type a you I environment, lot sponsor a going acquiring decline time. a And today, think a really do where it's one heavy sales estate has management it's get I trouble? economic debt structure we yes Mike. the we're tenants things got where you much we've look the to we downside about we their it. into structure finally, well. think us but only of equity-backed in to not see obviously, the of of implying gives place, this when in have the comfort I PE Then tenant, is the as profile. weren't then of talked time, But margin of into this Thanks, a any food business what assessing of mentioned more as are transactions quality here the another team successful investment. last nature the as quality that And charge them know capitalization need during would it they all maturity of fixed any issues. financing pending see difficult would those private they coverage do, is what to very then it But behind think from Mike, that's from

Operator

next Our from BMO John Kim comes Capital Markets. question from

John Kim

noted market a going very activity? and Chris, What's good this disconnect far You've capital markets. in forward pace active the already quarter. as acquisitions investment as between been But you've quarterly the transaction

Christopher Czarnecki

a It's question, good John.

that take will going I be think variable. it it's And to always we're one quarter-by-quarter.

we've the lot of a so that is see bit a October and date we're perspective, just And of of quarter $XX from or in million seeing and yesterday so even, to reflective through the us, what's at a -- little to moderation relative in closed fourth that for under can control closed the and thinking you through. activity

Ryan so outlined, is continue going cap market way certainly to of into next to And we're today. grow. putting X% to it's a we completely we're don't number the as on us, north -- pace We're but continue the in the have I'd for that year. seeing I today, to know capacity, liking thoughtful that opportunities going disciplined a exactly go

So we're to information But or not market going bit anything front. that going it's the February see, of wait expect be in would transaction that's we'll of on a be dynamic, provide and continue but that that of to to little a out more and nature.

John Kim

activity? noticed typically And year, seasonality haven't your this remind in back just can I us it if acquisition at... but you looking there's

Christopher Czarnecki

I you make just want you sure just say -- say I to John? Could seasonality, heard you.

John Kim

Yes, that's right.

Christopher Czarnecki

year-end and to we've levels time Yes say we've much strategy, a continue a quarter. quarter done fourth year, more similar busier this the tax the having there I'd diversified been I'd we've continued each is to closed. our no. say far motivated activity transaction and consistent. of consistent and team more of to as And use sellers transactions historically, get certain was when job grow

far that spikes there QX think consistent I see. certain we can but view, more from we're in our quarter-over-quarter, So be

John Kim

On any acquisitions increases tenants annual was escalators the increasing this the discussions given quarter, think X.X%, the with those at the but wondering there of I annual were you industrial just I rent inflationary mentioned environment. if

Christopher Czarnecki

John let Sure. jump I'll there. in

John Moragne

talk at. of certainly deals that about that we we one look mean I the Yes, on every

that very space. how with They to squeezed of industrial focus in X% the to think is, we me, in months average thinking one in X.X% new XX at line space rates industrial moved about look acquisitions the really last starting space, places of in the and weighted the almost the quickly, portfolio thinking when and were ago, over months the were been in of the quickly, getting cap I terms XX we've in sort range. about they movement for for industrial back the in

feel very we are. where So comfortable we

XX-year of Our occupancy tenants lease. a over or XX- continue the focus to course costs on overall

bumps overall difficult than to or period at bit little basis on XX- over an a starts compounded from And XX-year so looking place. occupancy higher a be a X%

comfortable that deals, terms that we these feel receiving So very the on in we're a of return overall number. good is X%

John Kim

just ASO from rent You Thank also the Cruz. you the but credit you you wondering operator. detail that have free until Okay. letter year will But the then that the all if as mentioned, for what extends I'm And that next just next for transition on the be? impact do one the occurs. provided. credit current of follow-up year, Santa letter of

John Moragne

you that. Ryan I'll give let

Ryan Albano

Sure.

relicensing hospital. impact come is the and much rent exercised period year That is of free the on down drive the next be. know how really versus not, will will really you the it will what AFFO Medicare of So approval which dependent to on

will In credit terms through of the second letter piece of year. that that the question, all this flush of with

John Moragne

through income, a The credit Ryan other have AFFO just, won't rest tied said, there's lease an but letter lease that as original the as in and of now together were and place, new flushes impact. the

Operator

further are questions There no this time. at

So now you Czarnecki hand closing I'll Chris back remarks. to for over

Christopher Czarnecki

Excellent. is all Bye. you look proud to reiterate the to on Thank again. behalf just in everybody we've of year We'll of and this shareholders accomplished so. for today. how team all talk forward I'd questions a seeing at Nareit our your all that thoughtful week soon you Again, or

Operator

This concludes Inc. Conference Earnings Call. Broadstone Lease, QX Net XXXX

may You disconnect. now

Broadstone Net Lease (BNL) 6 Nov 222022 Q3 Earnings call transcript