Earnings call transcript Q1 2023

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Operator

Hello and welcome to Broadstone Net Lease's First Quarter 2023 Earnings Conference Call. My name is Emily and I'll 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 Strategy and Investor Relations at Broadstone. Please go ahead.

Mike Caruso

thank Lease's for call. first and for us operator Net Broadstone quarter you, you joining everyone today Thank XXXX earnings today's Ryan hear Moragne; will Fennell. call from On John CEO, prepared President and Albano; remarks COO, CFO Kevin and you available will Q&A the be call. portion All this for three of

a Before materially everyone cause of risks the and variety that would can following due are presentation remind I we which to to contains results subject differ to actual to begin, like that forward-looking statements, factors. uncertainties

We place forward-looking caution filings provided are date statements of reliance statements such of for XX undue and Form conference discussion this only risk SEC made this during as detailed December the the our cause not differences. our XXXX factors you Any to more may of the call on call. for year ended forward-looking refer these you including a XX-K to that

to the will over now turn John. I call

John Moragne

to morning XXXX Thank challenging results. good quarter you, I'm Mike first macroeconomic and what everyone. be to our environment, a proud report continues In

core Federal act against long-term inflation in through market managing and the headwinds in and the of its continues estate. stockholder lease fight a the is create real Our investing net uncertainty There in surface banking as value and remains to the balancing Reserve mission lot major persistent world.

approach uncertain and As is path belief. believe this stewards we of reflect navigate to our and market capital allocation selective first capital conservative, prudent, a best to quarter that investor the results

feel rates increased significant capital. potential and risks, current dynamics justify and sourced market cap outlays new dollars evaluated had not acquisitions, did we billions given to of in While of enough we pricing that

our and quarter, and purposeful those to opportunities sourced appropriately earnings. first we priced evaluated believe limited we in accretive the how to were that investments only year-to-date were we pursuit During

developers in debt lending an rates as Times and and dislocations like opportunities to partner us higher and capital we adjusted existing to interest but tenants have discipline the alternative and also systems require opportunism well turned structural with these solution. our who banking to as markets financing selectivity creativity saw the as as

we tenants with creative and capital existing in to relationships, accretive real and into on these ways fundamentals. deploy relationships risk-adjusted a were basis estate Through to strong secure able

we As growth interested I is current the principle always rather been environment. stated BNL that growth in capital but decisions on and not that one growth's This are long-term. sake, accretive over drive making in and in February, core focused sustainable are allocation for important we the prudent earnings a critically has

expect we results reliable to us in volatility don't and positioned strength fortified near for balance and have shareholders. to our dissipate uncertainty to the the sheet term deliver consistent of continue we existing While do our believe portfolio and

BNL diversification, positions to XXX our XX this different economic uncertainty industries of different in best-in-class defensively sustained With weather and period pressure. tenants

including risk tenants While remain heightened susceptible may believe is we substantially are scrutiny face paying structures and medium with attention who our all tenants' pressures only near in to a healthy, of be today's term. given topical level underlying backdrop prudent operating and environment tenants the the more may close today's to profiles refinancing that capital of

as the first its portfolio of in macro occupancy XXX% headwinds as that demonstrate XX.X% the evidenced despite and captured Our of many collections headlines resiliency to continues rent late quarter. have by

the net annualized to our these a X.X at our basis XXXX. balance like remainder growth has have liquidity times to debt sheet Market of adjusted properties XXX a on ample we selective EBITDAre not fuel conditions also for and vacant and quarter of As flexibility leverage end, certainly to subject strategy of which demand fortified a flexible lease. were BNL and only two

More to. from want we year markets this. last ability we the execution to has to decisions us have make Kevin come capital to not on afforded Prudent decisions

capital remain extended an of changes seller and period the price of in front, lag continue discovery expectations On as cost in private we high capital. buyer ourselves find both to allocation public and

provide been this of able like which opportunities, dislocation capitalize unique on. have successfully we always to many of Periods

had spreads. continued success assets have current possess accretive dry within credit benefits powder so believe accretively types done we at risk we heightened and mitigating be residual we the provide at the First, selling to building simultaneous while portfolio that of attractive rates. recycled These cap attractive have risk sales and/or of

opportunities in Second, traditional provider as sourcing financing the given we debt the an alternate have had conditions markets. success

existing and Our mutually to partner relationship-based projects tenants yielded expenditure that capital opportunities approach to provide investing a pipeline revenue-generating with a solution. of has our beneficial

us helped to sourcing at continue acquisition deploy our channels. more have yields projects to addition traditional accretive capital These to in

portfolio transaction, We our make market maintaining to provide long-term will dislocations growth have exciting state-of-the-art, add the opportunities for XXX-plus largest for BNL's food discipline on asset profile. Most in milestone partner our build-to-suit a most single developers reward an will Opportunities to with notably temperature-controlled earnings benefits our This facility. also future increase shareholders, the transactions. seen are throughout selectivity like numerous and and distribution importantly year. million in this, the and

solid the been Through growth in over have ago. This a annual escalations, a possible with locked long-term a just leading investment we on an into transaction, will with high-quality asset includes investment. would accretive of that rent corresponding that consistent this fixed not coupled translate a operator the life and yield spread lease, have year earnings

mission challenging environment. our over on despite accretive allocation focused just the shareholders the and this not opportunities current drive decisions, and that are our prudent to on making for current showcases execute encapsulates calendar ability and year We value in the source, long-term, capital opportunity that

investment over build-to-suit I on who with the our to additional Ryan, of our existing including provide will and efforts capital activity details this now portfolio, will the And that, exciting turn opportunity. call health recycling our accretive

Ryan Albano

to thank joined have who Thanks, today. listeners, all John and the us you

factors. on tenant standpoint, previous both focusing granular, which individual Carvana, detail From pressures, Green and efforts thematic we Given monitoring. our discussed in to and business closely as current well individual Center, We're continue as to exposure economic conditions start tenant an earnings portfolio our Valley with monitor Lobster we call. on Medical our considerations, higher more Red let's currently

tenants. no there despite which comprised These list, tenants, February, percentage investments of portion since confident been handful our of these of largely ABR, estate updates smaller value three individualized we While the coupled our consistent remain with call of a real the our of tenant-specific other recent tenants as headlines and in watch have a the quarter-over-quarter. is the material many in underlying concerning

in John Rent continue collections the structures tenants, measures portfolio. more the of the to XXX% Our most include and during lending capital whose may accurate we're refinancing first health current to susceptible XX.X% the be earlier, monitoring market. occupancy And conditions thematic the quarter. stated on near-term and focusing be our respectively risk, as efforts real-time of given

opportunities management estate. conditions, and/or While the prudent also pricing the proactive in possess market assets we outsized efforts risk, attractive presents at The portfolio for management sell our a asset these it residual environment to credit of underlying believe real quality requires current has to provided initiatives. enhanced levels monitoring unique opportunity due

gross X.X%. office together an rate include simultaneous million of sold cash capitalization which The million first all-in cash During average a asset, three a of properties dispositions quarter, with an $XX.X we buyout represented rate lease of a X%. for weighted capitalization proceeds million of of the $XX at sale $X.X

of of exposure X.X% quarter weighted and of ABR additional end. quarter have our X.X% result end, the sold reduced a for sale, rate an three we As to of execution. million cash at capitalization assets stages additional office of dispositions average a various total we pipeline of $XX.X have Since at a a at

Together strategically be with dispositions, sell cash continue our our of within sold assets portfolio risk, we've first at proceeds six We rate intend X.X%. also million, redeployed. weighted to average proactively to accretively existing proceeds while of properties for generating quarter gross to $XX.X to a mitigate capitalization

intentionally in should we identify start On of discovery are that activity risk it demand have seller and market. opportunities the of market appropriately, our that especially, higher. dynamics, incrementally pricing in segment the not the and believe We absorbed basis pace we fully move priced a Supply of high investment and non-investment-grade continuing made XXXX. challenging stubbornly the risk-adjusted external have to to the expectations slowed amount rates the growth cap believe yet front, on

During a have price more miscalibration on the $X new of which opportunities and in of majority view million on pricing in attractive risk sourced expectations, large first stabilize. cases the achieving our hopes Sellers market we approximately we adjust elected between in the continue when acquisition their many transacting conditions of delayed given quarter, slowly return. future to pass to and

providing tenants. with revenue-generating sourcing we traditional channels creative accretively capital deploy more finding to to projects With on ways have existing focused our opportunities, capital, starting with continue expenditure suboptimal

acquisition one-off quarter activity average weighted a included quarter activity rate for investment The existing million X%, single of cap revenue-generating with at projects, investment majority in totaled property of of $X.X a first our which tenants. $XX approximately capital form million. expenditure the cash First initial came retail

invested we existing a compelling provider with little our growing accretive $XX.X capital at our X%. tenants a in underlying to two million of way industrial the attractive, risk. average weighted assets yields while a total generate with cap initial cash of a simultaneously existing QX, of assets has of Partnering During rate value as very been

a future $XX seen commitments investments opportunities, currently million our consideration. in tighter as have properties, an of additional active with have increase conditions projects future growing pipeline unfunded potential currently of become types lending these We and existing in towards of under

which under with under-controlled existing which substantial from worked letter we million the is comprised have executed of investments build-to-suit mentioned currently have as control, is John define The earlier, volume of transaction We majority past. the we $XXX.X relationship intent. who of of or contract in sourced an

X capital in million the development as to North leased distribution facility solution, to Florida fund a the have state-of-the-art opportunity foot Acting leading of we a square American temperature-controlled food operator. a

be estimated million of rent the XXXX, to are expect we subsequent of of balance targeted will total, deal, estimated for finalizing QX with year approximately early terms negotiating we still XXXX. the delivery $XXX While of funded during the next commencement and which half and fund

on translates an earn capital, in period, an into which low During initial the of we the our upon construction cash Xs. will attractive interest invested rent capitalized commencement yield the at yield

are completion, with be subject acting We to will industrial provider Upon the development portfolio. solely with an consistent capital long-term and asset a our escalations party. at-risk not annual rent a as lease

deal contract the following in are will provide disclosure we additional execution. we process, where Given

are to high-quality return an demonstrates with to which patient invest for will that profile risk-adjusted We and will market, strong a growth. earnings a capital future the shareholders basis asset approach for years generate our on allocation, in come. a in transaction value thrilled opportunity This drive thoughtful with attractive to our

turn now will I call that, with the to Kevin. And over

Kevin Fennell

morning, Ryan, and good everyone. you, Thank

powder dry quarter, again with available this priced both cost, we significant on appropriately focused in that risk-adjusted attractive capital reiterated are an opportunities and a selectively John on on with basis. As even accretive hand are deploying

We strength capital the once being again ended financial markets period during and flexibility quarter. a activity no of position the there in despite

we remaining the borrowing were resulting balance revolver $XX activity that by to Given million in able $XXX more of reduce Ryan on million than disposition our outlined, in quarter, the nearly capacity. the

our with maturities combined we with pursue significant This, to profile provide and continues selectively until XXXX, liquidity, as low investment us opportunities. leverage ample no

for has substantially for of us Our insulated expectations. with fixed higher associated upward interest structure the longer pressures rate debt rate capital many

$XXX our XXXX of beginning rate debt, our have through at fixed average maturities that in swaps considering nearly revolver, of interest excluding the and XXXX. is after interest effect running of X.X% a All our staggered weighted rate million

ATM equity, about of investment to think strategy our raising core allows alongside us needed. as that As we volume opportunistically overall continue market our equity a to view capital consider we component if

capacity activity of million quarter, Given maintained the in we on program. $XXX no current the

Turning to our results. financial

$X.XX decline additional per of or we million generated or QX. million the $X.XX at was AFFO of driven the with quarter, versus settling the G&A We of shares million in $X.X our cash incurred effect year. the per guidance. forward The During which by in expense $XX.X million in offering tracks XX from $XX.X share quarter, share, share the line the of end

X.X% OP Directors to represents and unit, dividend range meeting, high on to At in fifth is increase net quarterly attractive common a aligns be many payout lease The or with to is $X.XX our our represents increase and semiannual Board relative This of before which covered, our from dividend our a per last holders quarter. of targeted in mid since payable continues July peers. XX, our ratio approved to well dividend share dividend an XX% the yield our AFFO XXXX. IPO

have disposition an increasing experienced maintaining year-to-date. success share our today, per we Finally, are volume $X.XX XXXX we are our to of per share, guidance so AFFO the with given we $X.XX range

We into asset gain the the into pace as and capital markets. will we continue to in evaluate both guidance clarity the progress repricing conditions and of revisions further more year

following the year $XXX $XX million, unchanged. $XXX aforementioned volume investment reflects transaction; range and $XXX amounts be and between which which total $XX to million funded this volume guidance between revised which Our higher; between assumptions: been key $XXX disposition million, million and the and million million includes build-to-suit under remains cash G&A has

results As markets acquisitions, amount the activities of are year throughout for a and per timing the reminder, to and capital our share that the year. both dispositions occur sensitive

And with we'll now that, questions. up call open for the

Operator

Paolone Thank question ahead. JPMorgan. first Please, you. comes [Operator go Our with Instructions] from Anthony today

Anthony Paolone

maybe the Thank talk details that any of you I more credit question you I further there. build-to-suit operator announced. first you'll But developer in the bit it quarters. Good the you. large details behind Okay. or is either guess future My about morning. say a more on give nature you just know can said, or

John Moragne

Thanks Tony.

As Is Ts to it. still needs to got dot some we cross one that -- we mentioned, on some

one. in out to net stable a business transaction there's in a we'll of feel be good that great the remarks, for and now going really terms some as But about unique that we happening is more really this really unique excited the that is that distribution right It's we're So have really is be happened operator, our completed. market. solid it's the the once facility model will prepared lease information location, us for in This we credit, talked in future. of

it gets the that with past on being debt is Traditional capital things financing put markets, additional often financing gotten One stressed of a lot XX the the about than system. of availability months. has that's has talked stress the build-to-suit the in for more

source And ago like were so -- an a year us really to they in provides in here way they opportunity and the find a of us for the for. to alternative were looking capital it a step able perfectly companies operating that as financing be markets great

was were we built it if and backside would fully significantly stabilized And of to be below afford at the is it properly. it we to when where able on today this would look and the pricing it, be out,

on that it. in There's it have about we look lot and documentation excited very to you we're all So more going come once detail with we're a a to more to at point. forward definitive talking

Anthony Paolone

you you how of that how do shrinking just maybe about follow-up. in just the And then maybe a about sort assets I stock of buying the leverage that back But and makes terms a comes negative of talk business the and how that. Okay. like selling as can Maybe scale bit the context and thought economics on about more get sense. and overall with of guess you think I that

John Moragne

Yes.

start we to our is that place first the maybe believe with So are continue shares undervalued. there to

of grow capital place a going not portfolio. a that's terms we're cost how of from to so looking And standpoint that this we're at in

Ryan about about the it's lease to the at estate solid a or underlying the industry. fundamentals that assets they opportunity other long-term real of tenant's from of that as sets of but a are of rollover attractive lease buyers in concerns to we off whether sell operations mitigation have holders continue end a sort in business outside for net where it's talked standpoint, profile, credit still place, some are industry have risk We we risk it, have

it's on we in we'll think we So the and looking a long share with undervalued. about those are is for range, in we're as it's that, relative to to great into where at that that X% about cap continue spread. a as lean we're low-Xs high-Xs get excited the reinvesting able price then to execute that dislocation we we so and feel accretive talked We something

to think throughout Now the are utilize you you that put in to a we in And and went it's be this toolkit. now not year you we over wanted been each not have place put repurchase where position place. is last we were year adding program, would a one place a we're we right ever in but where public And added. we it if windows toolkit tool. able so in limited could have do. as tools to where in the years it, didn't tool in There's back. currently we something Kevin shares the it put which no saw that we you three But since place the you the latest buy another would we just the that's that tell we one

Anthony Paolone

Okay. Thank you.

Operator

John. Our next John BMO. question comes Please from ahead, with go Kim

Eric Borden

on what's John. acquisition Thanks. between split and the Hey. great. on for the the the transactions maybe the control, today? Good between you investments if pipeline. triple-net Eric to of morning, pipeline size and with I Outside assets start could and just of would then traditional want And guys. marketed It's split opportunistic the investments comment under off-marketed be

John Moragne

in volumes at XXXX, So it that everyone XXXX. period, where can pipeline, if XXXX the to XXXX are point lower lot I to this particularly, back a year. a more comparing XXXX look you're volumes XXXX, you're agree, and like And think,

us of if now. much pipeline, what's to any there a lease there's back that the think set out take agree right I on could you company For and net step pretty available facts think a about

particularly the this the environment. marketplace, expectations sale. or of longer conditions are In are looking to Financing to much that product sellers rate lower are hold out for for stubbornly stay buyers they predominantly best waiting continue interest seeing best Levered to volumes, even for point, product. of seller at you're higher The are, addition to are sort the it where in tighter. post because

market. all bit. little like it in top the they to XXXX the in have moved And now XX of stress months, plateaued a of last cap rates bit lot looks little XX but that, then, a a seeing You're on

take So, view are that and cap places people when in with the operators rates bond cap risk where have. we rates, necessarily don't you pricing how all the market you the believe for compare the moved and in they the should have

can agree to still choose those XXX% go to So, can all and facts of you a them of directions. and you have couple in different

that deploy be said, to we're with is There's I the capital. available way up with because decide allocate and whatever prudent, done is their to we've into put how continue chosen want we've agree to product to others there. everything work just out patient and What they looking capital to selective, spectrum risk can it

of in the in that's in a it's a getting split pretty of product anticipating, the out, healthy result difficulties financing. debt seeing on of assumptions on volume everyone market are So terms is come terms we as more product new deals as sale-leaseback

market finance they're the their to to how for So becoming is sale-leaseback CFOs going more attractive about think business.

that just example, was a not that to obligations. build-to-suit back to because that's to the opportunity their to complete and bring maybe commit capital the came it able financing opportunity perfect provider us on source the And

to they a brought so financing and broken situation had And it us. back

overall, before, in it on. we're the So, right is conservative but taking was market to way to ample seeing it execute we're still now. the certainly approach just are capital We be going to than opportunity the deploying leaner that

Eric Borden

helpful. a then picture And for That's me. big Okay. one more of

and portion is of yourself just signs maybe the not if is data point from predominant if thoughts telling some the kind seeing that, as from the or anything restaurant you you change are as of could affluence where any levels foot underlying behavior and Just just there? to regions industrial, understand curious you across what behavior. any but the consumer you're retail changing curious you curious the traffic in have seeing consumer the I

Ryan Albano

Sure.

space least dining you year look but some We have as generally certainly last healthy. seen over at remain or the so back casual softness the in

sites. foot with to those correlate think traffic that to continue AUVs I along seems at

any we little that end comfortable by I the categorically about overall. say it. softening. hasn't day concept impact So of really We've pretty amount region the bit a difference wouldn't it of a seen there's of specific. significant feel or by at But been been And

Eric Borden

the guys. Appreciate time. Thanks, helpful. That's

Operator

Our comes Gorman Michael, next with question ahead. please Michael BTIG. from go

Michael Gorman

didn't I minute go some back much billion underwrote and wonder, And Yeah. $X we an was issue? just acquisition kind walk transacting. Thanks. of how to interesting I Ryan the Good market comment pricing wind that if those of through made that then could the for actually of think up sellers you that morning. strictly a a

there was that or there the still So out for bid-ask a because on actually is ultimately pricing of amount side? mismatched of spread, sense your is any of much -- the if even what how seller did went that to the

Ryan Albano

track weighted which rate or higher reapproached back would versus the at we cap hard stalled say to that little dating transactions terms seller A heavily maybe above board. probably seen sort of from some the rates think the of overall, certainly levels X% breakdown that of cap I reapproached above little I'm on I more a to towards pricing across When even QX what's last at of expectations some have clearing our I'd QX What billion. say rate the about market a sorry mix levels. terms Sure. is through that those of levels what's of basis in pricing year in bit higher lower -- $X cap what's and below out a XX-XX maybe about have

Michael Gorman

activity out, I part billion did because And guess also a follow-up any transaction at Okay. maybe getting was of of as that I is rethought standards about what you've the you economic kind then as $X Great. within beyond on exposure kind going of just because think market work? pricing of of or to putting credit rethought what's the you money in fall

Ryan Albano

price on current it related We bit real where weren't estate in the majority to would needs it. that did into market. versus credit categories that feel majority the say passed of look on be passing that comfortable a us from was say this fundamental we of to pricing the passed the good actively perspective. breakdown fall pricing expectation and either that we related at by wider or when were Yes I'd on with I the in a risk I absolutely.

based today. our of there aggressive levels us generally deploying continued pricing is sense capital some actually at capital where we if opportunities about work were on at economically That transact make that chose Where just wouldn't could speaking, not for made dry to. well transacted all seeing certainly has forward and as have the we're disposition the proceeds plus we you X% that you're market our where those that, peers cost as the think powder. of But said, from mark

Michael Gorman

property Got it. the maybe back in Got to That's helpful. -- me it. market today that maybe a the maybe you maybe Is originate market And that bit versus origination kind just lending and becoming target a the I that on for seeing -- the the looking just pressure companies because to sale-leaseback one other of guess, in little don't options goes are they difference some of they last this now. increased better and past is those have between the any secondary off-market question. But any had market? of

Ryan Albano

beginning work have sort And their through. think also access expectations don't stack way stages, and level. seller I way to what working of say capital they are still are companies early understand their at to what pricing and capital I their are truly what options or think and that I'd their through

And on at are can moves that, stages abundantly in think amount at that solution opportunities of What early we terms think has new we things for build-to-suit to good least clear opportunity of dried on has here. I forward seeing the opportunities. access sale-leaseback a be that's in side So are is that where of market market. sort of the the seeing capital front build-to-suit that bit a as up I we time a build and become

Michael Gorman

guys. Great. Thanks for time the

Operator

Kim comes Please Bin Ki with go ahead. Our next Truist. question from

Ki Bin Kim

in store updates on terms in your can portfolio? Good Thanks. Red performance Lobster the Any share morning. of you

Ryan Albano

Red Yeah. say little that say a a I of neutral I lag of seen the see did But it some Thai -- what in been we're front. news we've on pretty financial is reporting. would Lobster We quarter-over-quarter. has performance positive recent that out would Union was terms Lobster Red bit on

estate be stages overall, position, to pretty it performance seems So of sites good that the turnaround. on feel we as as quarter-over-quarter. about But early the we those operating well real have at value our

Ki Bin Kim

might that tenants the other note? any of And list be watch entering

Ryan Albano

add had We one off. one note. of additional list we and Nothing come the to had watch

a perspective. We had on say just They gave more Carvana update Lobster. immaterial recent debt see considering perspective, for from the hospital continue talked a a kind did And licensing. progress to update news before just Medical on then swap, of about maybe Red an news to Valley some from we've along. I'd we've so they potentially. of some that's items creditors larger you just continue couple the move ones equity So positive that a towards Green I early

Ki Bin Kim

And one just pretty mostly evidence Bob a is And facility? is a here. like or vibrant that that tenant restaurants, The distribution actually is last that today?

Ryan Albano

both. have We

look restaurants have We industrial both good. facilities at performance as well as comfortable with both operating

Ki Bin Kim

Okay. Thank you.

Operator

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

Unidentified Analyst

on have Ron. for You Jenny

question. for my taking thanks So

my a to focused dry first Thanks. how disposition on talk much can more Maybe is sector I see that you little about more powder little bit you're now? guidance. sell? a like do talk So raised have you on bit specific any your you

Kevin Fennell

part metrics. first the the think question think around staying of heard us probably having you've past pretty I talk at in inside religion I clear Yeah, the Xx some leverage

that So you business there. if range. about mid-five the more think where And we of room today are say there's thematically in I'd a bit we operate quite

our room So in take range. pretty of got we've answer inside availability run And our out, a conjunction to revolver if clear back talk the on we've that deposition of about lot have with. and then pointed want you that's had that into can front of the sort you guidance to we sort as the success And a unique opportunistic Ryan, on of us if that disposition capital for source with piece? you

Ryan Albano

Sure.

this six various negotiating we bring market of working disposition market. identified could that think And that $XX-plus couple of In stages million another in that dispositions, to all we we've about hundred cap its call million mark. of the behind way opportunities active these terms through around we and a of it sellers have then activity have of

Unidentified Analyst

X%. more how With I it the level? regards like is little your do or like you Thanks. talk what's a Thanks. cap like is the your bit to more rate more a comfortable see you expect much pipeline acquisition X Can rate cap

Ryan Albano

Sure. target very risk I'd we're very say there's versus not return a on selective. being and in We're specific focused mind.

So advancing executing X% pipeline in us on mark. the see are that things that or around you the

the We specifically in that We so There opportunities are chosen interested not point. push whatnot comfortable risk don't we'd pricing spot at but have risk. taking to feel that it's the think this to of to out dearth we're and on on could. we We be not certainly additional with do the spectrum.

continue you to say and but expect around not that rule. opportunities I'd yield zone, a that's hard So to X% identify should us fast

Unidentified Analyst

Thanks.

Operator

question next from Kim Ki Please Truist. Our a go question follow-up from ahead. Bin is

Ki Bin Kim

Hello. again. Thanks

Because Just to dispositions, assets possible that look question kind assets. dispositions obviously the on you portfolio, it of make at the low-six to cap to of rate higher sell yielding you that is I with quick cost guess, buy take it what you're can assume, a when the of a or where scope going realistic to lower? capital a continue at is, is total

Ryan Albano

price well that stock our Sure. pricing market certainly in inside we feel assets right our are perspective, now. I'd say a from general, of

the think of disposition on room that execute opportunity to there's in today's we So and front, plenty market.

with either we risk necessarily risk or there properties residual/rollover and properties The that didn't we was where focused tenants those were want incur. on early felt credit themes associated to that heightened like two we heightened key on

and have market end execute pricing continued at opportunity to there. the we be we'll think We seller still was aggressively. the a the day where would to be of But today continue we

Ki Bin Kim

a So will different rate of other way. your Quick in maybe asset ask cap classes. likely Restaurants lower than get some it Service I can a

basket you guess, kind down trying just models I to like, when So selling in category a what sense understand our how I'm go much accretive list, like? like, to have the of trying Just deals. runway of these you more terms forecasting does that in get look and of

Ryan Albano

and hundred Sure. the Look, I long. Q&A negotiated the referenced that aren't think just that look a that market couple in $XXX of we earlier could When opportunities million the are well at opportunities runway at we we've for to session, million $XX far to now million I sale. market today got that being actively dollars as as right of bring another is

in don't lot We're today on I executing a at with redeploying think moment. what's whole beyond So to use of one-by-one go accretively front does focused of that. and us the it that

us I guidance machine. plenty accomplish think that gives of our year to and to the continue runways fuel this

Ki Bin Kim

again. you Thank Okay.

Operator

this [Operator we have questions At time, registered. no further Instructions]

John, So the to closing I'll call turn remarks. for back

John Moragne

the for interest questions looking appreciate everybody. BNL. and We're forward you many you at conferences. Really to of today. Thanks the seeing Thank upcoming in joining your

already the not out you're our get Caruso, calendar. you we'll on please on reach Mike If to schedule,

With portfolio, in a strong well thank great all time. balance your grow and we're all We We believe flexible you And hope XXXX navigate beyond. accretive and XXXX sheet. pipeline, positioned to for fortified a have really you day.

Operator

Thank your you joining concludes our disconnect now And This for us may everyone lines. today. call. you

Broadstone Net Lease (BNL) 4 May 232023 Q1 Earnings call transcript