John Moragne, CEO Broadstone Net Lease, Inc. (NYSE: BNL), sat down for a video interview at Nareit’s REITweek: 2024 investor conference, held in New York on June 3-6. He discussed the macro trends impacting the real estate market and outlined Broadstone’s strategic initiatives for the year.
Moragne cited Federal Reserve policy and interest rate fluctuations as key disruptors, noting that “transaction volumes are at historically low levels.” He stressed the need for certainty in the rate environment to improve transaction activity.
Despite these challenges, Broadstone exceeded earnings expectations in the first quarter and raised its full-year guidance, Moragne said. He attributed this confidence to the successful execution of the healthcare portfolio simplification strategy.
“We have about $400 million in new investments this year,” he said, adding that this includes new properties and growth funding, and the company is redeploying capital faster than expected.
Moragne highlighted Broadstone’s unique position in the net lease space, given its focus on industrial properties. He pointed out that more than 50% of the REIT’s annual base rent (ABR) comes from industrial tenants, allowing them to invest significantly in revenue-producing capital expenditures. Additionally, disruptions in commercial real estate lending have presented growth opportunities.
“We believe our differentiated strategy will give people a number of compelling reasons to invest in Broadstone,” Moragne said.
