Broadstone Net Lease, Inc. reported a net income of $169.0 million for the fiscal year ending December 31, 2024, translating to $0.86 per diluted share, a 3.6% increase from the previous year’s net income of $163.3 million or $0.83 per diluted share. The company generated funds from operations (FFO) of $300.7 million, or $1.52 per diluted share, reflecting a slight increase from $298.6 million in 2023. Adjusted funds from operations (AFFO) rose by 1.4% to $282.0 million, or $1.43 per diluted share, compared to $277.7 million in the prior year. Total lease revenues decreased by 2.5% to $431.8 million, primarily due to a reduction in lease termination fee income and realizable revenues from clinical healthcare properties, which were impacted by the company's strategic simplification of its healthcare portfolio.
In 2024, Broadstone Net Lease executed significant operational changes, including the sale of 58 clinical healthcare properties for gross proceeds of $364.0 million, which contributed to a gain of $73.2 million on the sale of real estate. The company has shifted its focus to industrial and retail properties, reducing its exposure to clinical healthcare assets to 3.2% of its annualized base rent (ABR). The company invested a total of $404.8 million during the year, which included $234.3 million in new property acquisitions and $115.3 million in build-to-suit developments. The weighted average initial cash capitalization rate for these investments was 7.3%, with a weighted average remaining lease term of 10.8 years.
As of December 31, 2024, Broadstone Net Lease's portfolio consisted of 765 properties, with an occupancy rate of 99.1% and a weighted average remaining lease term of approximately 10.2 years. The company reported a diverse tenant base, with 202 different commercial tenants across 55 industries, ensuring no single tenant accounted for more than 4.1% of its ABR. The company maintained strong rent collection, with 99.1% of base rents collected during the year. The strategic focus on diversifying its portfolio by property type and geography has helped mitigate risks associated with economic fluctuations.
Looking ahead, Broadstone Net Lease aims to continue its growth trajectory through a combination of revenue-generating capital expenditures, build-to-suit developments, and a diversified acquisition pipeline. The company plans to maintain its leverage ratio below 6.0x, with total outstanding debt of $1.9 billion as of year-end 2024. The company’s management remains optimistic about its ability to navigate the current economic landscape, leveraging its strong relationships with brokers and developers to identify attractive investment opportunities while managing its debt and capital structure effectively.
About Broadstone Net Lease, Inc.
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