John Moragne, CEO Broadstone Net Lease, Inc.(NYSE:BNL) participated in a video interview during Nareit’s REITworld:2023 annual conference, held November 14-16 in Los Angeles.
Morgan said that although 2023 was a difficult year for the net lease REIT space, he is proud of Broadstone’s focus on operational expertise, a flexible, strong balance sheet and a solid portfolio performance.
“There’s a lot we can’t control with respect to what’s happening in interest rates and the broader macro environment, but with a solid portfolio and a really good, conservative strategy, [we were] Able to be disciplined and selective in execution [last year],” He said.
Morgan said one of the biggest changes the company has seen over the past five years has been a much greater focus on the industrial sector, noting that Broadstone’s industrial rents have increased from 31% to 51% in that time frame.
“This is a deliberate, strategic change for us,” he said. “There’s a lot we like in the industrial sector in terms of the fundamentals of real estate, the industries our tenants are in, the credit fundamentals we have, as well as the opportunity to expand those relationships.”
Morgan said Broadstone also had development financing opportunities in 2023, and as a result, has more than $200 million of industrial projects in Florida that it is funding and trying to bring online in 2024.