BNL - Broadstone Net Lease: An Insulated Portfolio Protected From Rates And Turmoil
2024-02-06 00:41:27 ET
Summary
- Net lease REITs have been impacted by speculation and uncertainty surrounding interest rates.
- Broadstone's portfolio is diversified and primarily industrial.
- Broadstone has few refinancing obligations and lease expirations over the next two years, protecting the REIT from market turmoil.
Interest rate speculation continues to wreak havoc across the net lease sector and real estate. Since the sector reached a bottom in October, net lease REITs have rallied as investors remained optimistic that near term rate cuts were a possibility. The sector speculated and priced in interest rate relief in the early part of 2024. However, recent news from the Federal Reserve indicates that near term interest rate cuts are unlikely. This past week, Powell signaled a March cut was probably off the table entirely, and the consensus for a cut has moved to May or June at the earliest. The news had a broad impact on the net lease sector....
Broadstone Net Lease: An Insulated Portfolio Protected From Rates And Turmoil