Loading...
01/11 03:22
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents a mixed outlook. Positive elements include a stable dividend, strong financial health with a solid credit facility, and a robust build-to-suit pipeline. However, concerns about tenant health due to tariffs, unclear management responses on bad debt, and lack of a share repurchase program weigh negatively. The market cap indicates moderate reactions, leading to a neutral stock price prediction.
Property Acquisitions and Investments $103,900,000 invested year-to-date, with a year-over-year increase attributed to disciplined execution and growth in the build-to-suit pipeline.
Committed Build-to-Suit Developments $305,900,000 committed, with $255,800,000 remaining to be funded through Q3 2026, representing a strategic advantage amid market uncertainty.
Incremental ABR Growth $22,600,000 expected from committed developments, representing approximately 5.6% growth in current ABR.
New Project Announcement $78,200,000 project added to the pipeline, enhancing growth prospects and expanding developer partnerships.
Adjusted Funds from Operations (AFFO) $71,800,000 or $0.36 per share, reflecting lower operating expenses and recent investments.
Core General and Administrative Expenses $7,400,000 for the quarter, indicating a focus on controlling expenses.
Bad Debt 86 basis points, primarily due to nonpayment from Stanislaus, with expectations of only 9-10 basis points of bad debt from Zips in 2025.
Revolving Credit Facility $1,000,000,000 amended to extend maturity to March 2029 and reduce borrowing rate by 10 basis points.
Term Loan Refinancing $400,000,000 term loan refinanced with a new maturity in March 2028, including a $100,000,000 delayed draw option.
Pro Forma Leverage 5.0 times net debt, indicating a strong financial position with $826,000,000 available on the revolving credit facility.
Dividend $0.29 per share maintained, reflecting confidence in financial stability.
New Project Announcement: Broadstone announced a new $78,200,000 project in partnership with Prologis, marking a significant addition to their build to suit development commitments.
Investment in New Properties: Year to date, Broadstone has invested $103,900,000 in new property acquisitions, build to suit developments, and revenue-generating CapEx.
Pipeline of Developments: Broadstone has approximately $305,900,000 of committed build to suit developments, with an expected growth of approximately 5.6% in current ABR.
Occupancy Rate: Broadstone reported a 99.1% occupancy rate and 99.1% rent collection for the first quarter.
Adjusted Funds from Operations (AFFO): The company generated adjusted funds from operations of $71,800,000 or $0.36 per share.
Strategic Focus: Broadstone is focused on disciplined growth through a differentiated strategy, emphasizing build to suit developments and maintaining a strong investment-grade balance sheet.
Guidance Maintenance: The company is maintaining its 2025 AFFO guidance range at $1.45 to $1.49 per share, reflecting a cautious approach amid macroeconomic uncertainties.
Macroeconomic Environment: The company is closely monitoring the impacts of actual or potential tariffs, overall economic conditions, capital markets, and consumer spending trends, indicating a risk of economic uncertainty affecting operations.
Credit Risk: Incremental credit risks are noted, particularly in consumer-centric industries and entities with less flexible capital structures, due to prolonged high interest rates and potential tariff-induced inflation.
Tenant Monitoring: The company is vigilant in monitoring tenants, especially those in consumer-centric sectors and healthcare properties, to mitigate risks associated with potential bankruptcies or financial difficulties.
Zips Bankruptcy: The company is managing the aftermath of Zips' bankruptcy, expecting to recover approximately 80% of the ABR previously generated by Zips, with minimal bad debt anticipated.
Construction Risks: The company has structures in place to mitigate risks associated with construction delays and cost overruns, including budget contingencies and fixed-price contracts.
Supply Chain Challenges: Concerns regarding supply chain disruptions and cost increases due to tariffs are acknowledged, with strategies in place to manage these risks.
Health of Tenants: There are concerns regarding the health of tenants in the food processing and warehousing space, particularly due to tariff impacts on shipments and inventory.
Exposure to Specific Tenants: The company is monitoring specific tenants like Claire's and Stanislaus Surgical for potential risks related to their financial health and operational challenges.
Build to Suit Pipeline: Broadstone has approximately $305.9 million of committed build to suit developments with $255.8 million in remaining estimated investments to be funded through Q3 2026, with initial cash cap rates in the 7s and straight line yields in the mid-8s to mid-9s.
New Project Announcement: A new $78.2 million project was added to the pipeline, partnering with Prologis, indicating a growing network of development partners.
Investment Strategy: Year to date, Broadstone has invested $103.9 million in new property acquisitions, build to suit developments, and revenue-generating CapEx.
Portfolio Performance: 99.1% occupancy and 99.1% rent collection for Q1 2025, indicating strong portfolio resilience.
2025 AFFO Guidance: Maintaining AFFO guidance range at $1.45 to $1.49 per share, approximately 3% growth at the midpoint.
Future Growth Projections: Expecting to add at least $500 million in additional build to suit developments to stabilize and begin paying rent in 2026 and 2027.
2026 Base Case Growth: A preview of forecasted base case growth for 2026 will be provided later this year based on contributions from core building blocks and execution in 2025.
Bad Debt Guidance: Maintaining bad debt guidance at 125 basis points for the year, with expectations of recovering approximately 80% of ABR previously generated by Zips.
Dividend per Share: $0.29 per share, payable to holders of record as of 06/30/2025 on or before 07/15/2025.
Shareholder Return Plan: The company is maintaining its focus on disciplined growth and aims to add at least $500,000,000 in additional build to suit developments to its committed schedule of projects that would stabilize and begin paying rent in 2026 and 2027.
Share Repurchase Program: None
The earnings call presents a positive outlook with raised AFFO guidance, robust build-to-suit pipeline, and high lease rates. The Q&A section reflects confidence in future growth and financial stability, despite minor competition concerns. The strong investor interest in unsecured notes issuance and strategic financial management further bolster a positive sentiment. Given the company's market cap, the stock price is likely to experience a positive movement in the 2% to 8% range over the next two weeks.
The earnings call and Q&A session highlight strong financial performance, strategic partnerships, and growth plans, including a new project with Prologis and robust build-to-suit pipeline. Despite concerns about stock price and competition, management's commitment to growth and strategic investments, along with high occupancy and rent collection, suggest a positive outlook. The market cap suggests moderate sensitivity, supporting a 'Positive' prediction for stock price movement.
The earnings call presents a mixed outlook. Positive elements include a stable dividend, strong financial health with a solid credit facility, and a robust build-to-suit pipeline. However, concerns about tenant health due to tariffs, unclear management responses on bad debt, and lack of a share repurchase program weigh negatively. The market cap indicates moderate reactions, leading to a neutral stock price prediction.
The earnings call reflects a mixed outlook. While there are positive aspects like stable dividends and robust development pipelines, concerns persist regarding tariffs, healthcare tenant issues, and bad debt. The Q&A highlighted management's vague responses to specific risks, which may raise investor caution. The lack of a share repurchase program and unchanged financial metrics further contribute to a neutral sentiment. Given the company's market cap, the stock is likely to remain stable with minor fluctuations.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
