BNL - Broadstone Net Lease: Higher For Longer Interest Rates Keeping The Stock Undervalued
2024-06-03 13:54:05 ET
Summary
- Broadstone Net Lease is an Industrial-focused Real Estate Investment Trust with 759 net leased properties.
- Their business collected 99% of base rents in the first quarter, cooling concerns in the commercial real estate industry.
- Furthermore, 99.2% of rentable square footage is in a lease, with only 3 of 759 properties vacant.
As interest rates remain higher for longer, there is one industry that has continued to be punished, and that is the real estate industry. In fact, we may not see rates come down for another 3-6 months, which may mean REIT stock prices could remain low. However, despite the macroeconomic impacts and many fears in the REIT space from an office-space perspective, Broadstone Net Lease ( BNL ) shines bright, reducing those fears - due to their specific real estate concentration, balance sheet composition and performance. The specific concentration that calms the fears is Industrial. Why Industrial? Think - warehouse space for large consumer-driven companies (i.e., Amazon ( AMZN ), Target ( TGT ), etc.)....
Broadstone Net Lease: Higher For Longer Interest Rates Keeping The Stock Undervalued