Broadstone Net Lease, Inc. · NYSE:BNL
Broadstone Net Lease — Q1 2020 Earnings Presentation
23 slides from Broadstone Net Lease's earnings presentation, May 12, 2020
Slide 1: Business Update May 2020
BUSINESS UPDATE MAY 2020 EXHIBIT 99.1 BROADSTONE NET LEASE INC.
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use o
Slide 3: Slide 3
Slide 4: Q1 2020 Highlights
Q1 2020 HIGHLIGHTS 99%+ 98% Leased Rent collection $35.4mm $7.6mm of asset dispositions gain above net book value 71 $1.6mm employees internalized of cash flow savings in Q1 $93.2mm $144mm of cash on hand at quarter end of corporate liquidity1 Strong operating performance with high occupancy levels
Slide 5: Key Milestone for Broadstone Net Lease: Internalization of Management
KEY MILESTONE FOR BROADSTONE NET LEASE BNL Successfully Completed the Internalization of Management on February 7, 2020 Internalization Yields Immediate Cost Savings as well as Other Key Strategic Benefits STRATEGIC BENEFITS PREVIOUS EXTERNALLY MANAGED STRUCTURE CURRENT INTERNALIZED STRUCTURE SIMPLI
Slide 6: The Same Team…Now Entirely Dedicated to BNL
THE SAME TEAM…NOW ENTIRELY DEDICATED TO BNL Working Together to Build Broadstone Since 2015 Average Tenure: 7.4 Years Kevin Fennell SVP, Capital Markets Formerly Bank of Montreal Began covering BNL in 2014 Worked closely with Chris and Ryan on $1.5B+ of bank capital Joined Broadstone team: 2019 Chri
Slide 7: Q1 2020 At-A-Glance
Q1 2020 At-A-GLANCE For Three Months Ended ($ in thousands, except per share data) 3/31/2020 3/31/2019 Revenues $78,231 $68,430 Net Income $11,848 $15,022 Earnings Per Share $0.41 $0.62 Funds From Operations (‘FFO’) $35,572 $38,949 FFO Per Share $1.29 $1.62 Adjusted Funds From Operations (‘AFFO’) $4
Slide 8: Current Portfolio Diversification Breakdown
CURRENT PORTFOLIO DIVERSIFICATION BREAKDOWN Industrial 43.5% Manufacturing 13.8% Distribution & ...Warehouse 13.6% Food Processing 6.2% Flex and R&D 5.7% Cold Storage 4.2% Office 9.8% Strategic ...Operations 4.6% Corporate ...Headquarters 3.3% Call Center 1.9% Tenant Property Type # Properties ABR a
Slide 9: Well Capitalized Balance Sheet
WELL CAPITALIZED BALANCE SHEET ($ in thousands) March 31, 2020 Equity Common Stock 26,855 Membership Units 3,057 Common Stock & Membership Units1 29,912 Price Per Share / Unit2 $85.00 Implied Equity Market Capitalization $2,542,526 % of Total Capitalization 54.3% Debt Unsecured Revolving Credit Faci
Slide 10: Emphasis Placed on Liquidity
EMPHASIS PLACED ON LIQUIDITY $116.5mm Increase in Cash Reserves Note: Information as of 3/31/20 1 Calculated as of 4/30/20 2Calculated in accordance with current unsecured credit facility agreement 3Metric shown as of last quarterly calculation adjusted for full quarter of savings from internalized
Slide 11: Tenant Update
TENANT UPDATE Benefits of a Diversified Strategy: BNL’s highly diversified portfolio has acted as a natural hedge against recent economic distress, as many industries deemed ‘essential’ and open-for-business have helped to offset those more directly impacted by mandatory shutdowns and shelter-in-pla
Slide 12: Rent Statistics Relative to Public Net Lease REITs
RENT STATISTICS RELATIVE TO PUBLIC NET LEASE REITs APRIL RENT COLLECTIONS RENT DEFERRAL REQUESTS RECEIVED1 Source: Company Filings April Rent Collections Strong Relative to Less Diversified Retail Focused Net Lease REITs Rent Relief Requests In-Line with Public Net Lease REITs Note: BNL Information
Slide 13: Rent Relief Requests by Industry
RENT RELIEF REQUESTS BY INDUSTRY Rent Relief Requests Portfolio Diversification % of % of % of # ABR Portfolio Property # ABR Portfolio Industry Properties ($000s) ABR Type ABR Properties ($000s) ABR Restaurants 186 34,357 11.8% 74.1% 246 46,337 15.9% Auto Parts & Equipment 25 9,555 3.3% 94.6% 31 10
Slide 14: Rent Relief Requests by Property Type
RENT RELIEF REQUESTS BY PROPERTY TYPE PORTFOLIO CONCENTRATION / RENT RELIEF REQUESTS REQUESTS AS A PERCENTAGE OF PROPERTY TYPE ABR Portfolio Diversification Rent Relief Requests 636 properties $291mm ABR 321 properties 36.3% ABR Rent Relief Requests Largely Consistent with Portfolio Diversification
Slide 15: Rent Relief Request by Location
RENT RELIEF REQUEST BY LOCATION States Begin to Reopen and Mandatory Closures are Lifted Uncertainty Remains Elevated Despite Easing of Social-Distancing Measures Note: Information as of 5/11/20 Partial reopening Reopening soon Shut down or restricted BNL Properties with a Rent Request BROADSTONE NE
Slide 16: Determined Share Value
DETERMINED SHARE VALUE ($ in thousands, except per share data) 3/31/2020 12/31/2019 Investment in Rental Property $4,344,570 $4,427,567 Debt (2,233,159) (2,047,860) Other Assets and Liabilities, net 355,113 (16,149) Net Asset Value $2,466,524 $2,363,558 Shares and OP Units Outstanding 29,912 27,738
Slide 17: Other Strategic Items
OTHER STRATEGIC ITEMS Given the Economic Uncertainty and Rapidly Evolving Circumstances Related to the COVID-19 Pandemic, the Board of Directors has determined BNL will Temporarily Suspend its Current Monthly Distribution Previously announced distribution of $0.44 per share for the month of April (r
Slide 18: Looking Forward - Key Focus Areas for BNL
LOOKING FORWARD - KEY FOCUS AREAS FOR BNL Focus on asset management of the portfolio as top priority Work to maintain consistent level of rent collections Take efforts to preserve strong liquidity position and maximum financial flexibility Negotiate rent deferrals only when necessary with a focus on
Slide 19: Q&A Session
Q&A SESSION
Slide 20: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS DAN BLASI VICE PRESIDENT, INVESTOR RELATIONS dan.blasi@broadstone.com 585.287.6504 NICOLE CALCAGNI DIRECTOR, INVESTOR RELATIONS nicole.calcagni@broadstone.com 585.287.6476 BROADSTONE NET LEASE INC. 20 BUSINESS UPDATE MAY 2020
Slide 21: Additional Information
BROADSTONE WMI NET LEASE, INC ADDITIONAL INFORMATION
Slide 22: GAAP Reconciliations: FFO and AFFO
GAAP RECONCILIATIONS FUNDS FROM OPERATIONS (FFO), ADJUSTED FUNDS FROM OPERATIONS (AFFO) GAAP RECONCILIATIONS FUNDS FROM OPERATIONS (FFO), ADJUSTED FUNDS FROM OPERATIONS (AFFO) (in thousands, except per share data) For the three months ended March 31 2020 2019 Net Income $ 11,848 $ 15,022 Real proper
Slide 23: GAAP Reconciliations: EBITDA, EBITDAre, Net Debt
GAAP RECONCILIATIONS EBITDA, EBITDAre, Adjusted EBITDAre, Net Debt to Annualized Adjusted EBITDAre GAAP RECONCILIATIONS EBITDA, EBITDAre, Adjusted EBITDAre, Net Debt to Annualized Adjusted EBITDAre For the three months ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 March 31,