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Broadstone Net Lease (BNL)
NYSE:BNL

Broadstone Net Lease (BNL) AI Stock Analysis

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Broadstone Net Lease

(NYSE:BNL)

Rating:67Neutral
Price Target:
$17.00
▲( 9.18% Upside)
Broadstone Net Lease's overall stock score reflects a stable financial position with strong cash flow and a robust growth strategy. However, profitability concerns, bearish technical indicators, and macroeconomic uncertainties weigh on the score.
Positive Factors
Development Projects
Started construction on one build-to-suit development project for $78.2M with PLD as its development partner, which is seen as a positive for BNL given minimal execution risks.
Portfolio Strategy
BNL continues to add to build to suit development pipeline, achieving higher yields, and not pursuing thin margin acquisitions.
Negative Factors
Acquisition Performance
BNL acquired $59.0M of assets, which is below its previously-disclosed acquisitions under control, although this may be timing-related.
Credit Loss Guidance
BNL's 2025 guidance includes a 125 bps credit loss, largely due to specific tenants like Zips Car Wash and Stanislaus Surgical.

Broadstone Net Lease (BNL) vs. SPDR S&P 500 ETF (SPY)

Broadstone Net Lease Business Overview & Revenue Model

Company DescriptionBNL is an internally-managed REIT that acquires, owns, and manages primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. The Company utilizes an investment strategy underpinned by strong fundamental credit analysis and prudent real estate underwriting. As of September 30, 2020, BNL's diversified portfolio consisted of 627 properties in 41 U.S. states and one property in Canada across the industrial, healthcare, restaurant, office, and retail property types, with an aggregate gross asset value of approximately $4.0 billion.
How the Company Makes MoneyBroadstone Net Lease generates revenue primarily through rental income from its portfolio of net-leased properties. Under net lease agreements, tenants are responsible for most property-related expenses, such as taxes, insurance, and maintenance, providing BNL with stable and predictable cash flows. The company strategically acquires properties with creditworthy tenants and long lease terms to ensure reliable income. Additionally, BNL may benefit from property appreciation and engage in selective property sales to optimize or rebalance its portfolio. Key factors contributing to its earnings include the occupancy rate of its properties, lease renewals, and the company's ability to effectively manage and expand its property portfolio.

Broadstone Net Lease Financial Statement Overview

Summary
Broadstone Net Lease shows strong cash flow and balance sheet health, with no significant debt. However, the recent net loss and inconsistent revenue growth are concerns. Overall, the company's financials demonstrate operational efficiency but need improvement in profitability and revenue growth.
Income Statement
65
Positive
Broadstone Net Lease shows a mixed performance in its income statement. The Gross Profit Margin remains strong, indicating efficiency in managing costs relative to revenue. However, the Net Profit Margin has declined significantly, with the company experiencing a net loss in the most recent year, which is concerning. Revenue growth has been inconsistent, with a decline in the most recent period. The EBIT and EBITDA margins demonstrate effective operational management, but the net loss is a critical weakness.
Balance Sheet
70
Positive
The balance sheet of Broadstone Net Lease is relatively robust with a strong equity base and no total debt in the most recent period, which reduces financial risk. The Debt-to-Equity ratio has improved significantly, reflecting a healthier leverage position. Return on Equity has turned negative due to the net loss, which is a concern. The Equity Ratio is strong, indicating a solid capital structure and financial stability.
Cash Flow
75
Positive
Cash flow analysis reveals a positive outlook for Broadstone Net Lease. The company has maintained strong Free Cash Flow and Operating Cash Flow, which supports sustainability. However, the Free Cash Flow Growth Rate has shown some volatility. The Free Cash Flow to Net Income ratio is high due to the net loss, indicating reliance on cash flow generation rather than profitability.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
436.16M431.80M442.89M407.51M382.88M321.64M
Gross Profit
336.17M407.06M420.31M385.74M364.42M304.16M
EBIT
213.48M212.89M380.89M199.29M195.91M139.77M
EBITDA
395.07M369.07M380.89M354.10M328.01M272.45M
Net Income Common Stockholders
96.58M162.44M155.48M122.11M102.43M51.18M
Balance SheetCash, Cash Equivalents and Short-Term Investments
221.74M14.85M19.49M21.79M21.67M100.49M
Total Assets
5.27B5.22B5.27B5.46B4.62B4.26B
Total Debt
1.95B1.91B1.91B2.02B1.69B1.54B
Net Debt
1.73B1.90B1.89B2.00B1.67B1.44B
Total Liabilities
2.05B2.07B2.07B2.20B1.88B1.78B
Stockholders Equity
3.07B3.00B3.05B3.09B2.58B2.30B
Cash FlowFree Cash Flow
259.19M259.46M224.82M224.54M243.34M168.22M
Operating Cash Flow
276.85M276.25M271.07M255.91M244.94M179.03M
Investing Cash Flow
-349.32M-59.70M24.34M-859.64M-582.30M-60.24M
Financing Cash Flow
-139.27M-221.19M-334.82M636.00M254.41M-28.38M

Broadstone Net Lease Technical Analysis

Technical Analysis Sentiment
Negative
Last Price15.57
Price Trends
50DMA
16.19
Negative
100DMA
15.94
Negative
200DMA
16.49
Negative
Market Momentum
MACD
-0.04
Positive
RSI
40.51
Neutral
STOCH
29.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNL, the sentiment is Negative. The current price of 15.57 is below the 20-day moving average (MA) of 16.05, below the 50-day MA of 16.19, and below the 200-day MA of 16.49, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 40.51 is Neutral, neither overbought nor oversold. The STOCH value of 29.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BNL.

Broadstone Net Lease Risk Analysis

Broadstone Net Lease disclosed 65 risk factors in its most recent earnings report. Broadstone Net Lease reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
We may engage in development or expansion projects, including speculative development projects, which would subject us to additional risks that could negatively impact our operations. Q4, 2024

Broadstone Net Lease Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$6.40B27.836.01%3.62%25.47%-4.35%
OLOLP
70
Neutral
$526.47M18.029.57%7.38%1.82%-1.03%
BNBNL
67
Neutral
$3.02B26.863.79%7.27%0.73%-37.65%
WPWPC
67
Neutral
$13.37B31.495.02%5.76%-5.89%-26.36%
60
Neutral
$2.82B10.380.33%8508.19%5.98%-17.49%
GNGNL
60
Neutral
$1.73B-13.01%13.08%16.69%39.04%
CTCTO
60
Neutral
$600.40M36.87-1.05%8.34%17.48%-172.41%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BNL
Broadstone Net Lease
15.57
1.38
9.73%
CTO
CTO Realty Growth
17.86
1.69
10.45%
OLP
One Liberty Properties
23.72
2.08
9.61%
WPC
W. P. Carey Inc.
60.36
6.39
11.84%
GNL
Global Net Lease
7.64
1.14
17.54%
EPRT
Essential Properties Realty
31.87
5.99
23.15%

Broadstone Net Lease Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: -3.77%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call demonstrates a robust growth strategy with a strong build-to-suit pipeline and high occupancy rates, balanced by caution due to macroeconomic uncertainties and tenant credit risks. While significant investments and stable financial guidance are positive, tenant-related challenges and broader economic concerns temper the outlook.
Q1-2025 Updates
Positive Updates
Strong First Quarter Results
Broadstone Net Lease reported strong first quarter results with disciplined execution, focusing on long-term shareholder value. There was a 5.6% growth in current ABR from committed build-to-suit developments.
Build-to-Suit Pipeline Growth
Year-to-date investments totaled $103.9 million, with a committed pipeline of $305.9 million in build-to-suit developments. Notably, a new $78.2 million project was added with Prologis.
High Occupancy and Rent Collection
The company maintained a 99.1% occupancy rate and 99.1% rent collection for the first quarter.
Stable Financial Outlook
Broadstone maintained its 2025 AFFO guidance range of $1.45 to $1.49 per share, with approximately 3% growth at the midpoint.
Negative Updates
Macroeconomic Uncertainty
The company is cautious due to macroeconomic uncertainty, including potential tariffs and economic conditions impacting consumer spending.
Tenant Credit Risks
There are concerns about tenant credit risks, particularly in consumer-centric industries and clinically oriented healthcare properties, including exposure to Claire's and Stanislaus Surgical.
Zips Car Wash Bankruptcy
Zips Car Wash, accounting for 62 basis points of ABR, filed for bankruptcy, though a resolution is expected with rent recovery.
Company Guidance
During Broadstone Net Lease's first-quarter 2025 earnings call, the company maintained its guidance for adjusted funds from operations (AFFO) at $1.45 to $1.49 per share, projecting approximately 3% growth at the midpoint. The company reported investments of $103.9 million in new property acquisitions, build-to-suit developments, and revenue-generating capital expenditures. Furthermore, they have a committed pipeline of $305.9 million in build-to-suit developments, with an estimated $255.8 million remaining to be funded through the third quarter of 2026. Initial cash cap rates for these projects range from 7% to straight-line yields in the mid-8s to mid-9s. Additionally, Broadstone has secured $132.9 million in acquisitions under control and $4.5 million in commitments for revenue-generating capital expenditures. They also highlighted a new $78.2 million project in partnership with Prologis, contributing to their growth strategy. Despite considering raising the lower end of their guidance range due to positive developments, they decided to maintain it due to macroeconomic uncertainties and will reassess as the year progresses.

Broadstone Net Lease Corporate Events

Business Operations and Strategy
Broadstone Net Lease Expands with Prologis Partnership
Positive
Apr 25, 2025

On April 24, 2025, Broadstone Net Lease announced a significant addition to its build-to-suit development pipeline with a $78.2 million project in partnership with Prologis, Inc. This collaboration marks a strategic expansion of BNL’s network of development partners and aligns with its industrial-focused investment strategy. The new development includes a state-of-the-art distribution warehouse for FCA US, LLC, expected to be completed in the third quarter of 2026. This partnership with Prologis, a leader in high-barrier, high-growth markets, is expected to enhance BNL’s market positioning and long-term value creation.

Financial Disclosures
Broadstone Net Lease to Announce Q1 2025 Results
Neutral
Apr 2, 2025

On April 2, 2025, Broadstone Net Lease, Inc. announced that it will release its financial and operating results for the first quarter of 2025 on April 30, 2025, after market close. The company will also host an earnings conference call and webcast on May 1, 2025, at 11:00 a.m. Eastern Time. This announcement is significant for stakeholders as it provides an opportunity to assess the company’s financial health and operational performance, which could impact investor confidence and market positioning.

Private Placements and Financing
Broadstone Net Lease Closes $1.5 Billion Credit Agreement
Positive
Mar 3, 2025

On February 28, 2025, Broadstone Net Lease, Inc. announced the closing of a $1.5 billion Amended and Restated Credit Agreement, which includes a $1 billion revolving credit facility and a $500 million term loan. The new credit facilities, which replace the existing $400 million term loan due in February 2026, enhance the company’s financial flexibility by providing increased liquidity, improved borrowing rates, and favorable adjustments to financial covenants. This move is expected to support Broadstone’s growth objectives and strengthen its financial position, with no near-term debt maturities until April 2027.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.