BNL Intrinsic Value – Broadstone Net Lease Offers Attractive ~7% Yield for Diversified Investors
December 14, 2023
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Broadstone Net Lease ($NYSE:BNL) (BNL) is an internally-managed real estate investment trust (REIT) that focuses on acquiring, owning and managing a diversified portfolio of commercial properties throughout the United States. BNL offers investors an attractive 7% yield and is a great option for those who are looking for an opportunity to diversify their portfolio with a reliable investment. BNL’s main objective is to generate attractive risk-adjusted returns through the acquisition and management of its diversified portfolio of net-leased properties. The company’s portfolio of properties consists primarily of single-tenant net-leased office, industrial, retail, and other space. BNL has strategic relationships with regional and national tenants across a variety of industries. The company’s goal is to achieve a balance between short-term growth and long-term stability.
BNL believes that by investing in high quality properties and tenants, it will generate consistent cash flow and a steady return for investors. The company’s portfolio is diversified across asset types, tenancy, and geographic locations, which helps to reduce risk and provide stability in the long term. With its attractive 7% yield, Broadstone Net Lease is an excellent option for investors looking to diversify their portfolio and benefit from the stability of net leased assets. The company’s experienced management team has built a portfolio of quality properties that will generate steady cash flow and an attractive return for years to come.
Analysis – BNL Intrinsic Value
At GoodWhale, we perform an extensive analysis of BROADSTONE NET LEASE to give our investors an overview of the company’s fundamentals. Through our proprietary Valuation Line, we have calculated that the fair value of BROADSTONE NET LEASE shares is around $21.4. However, the current price of BROADSTONE NET LEASE is only at $16.4, which means it is undervalued by 23.5%. In other words, it provides an excellent opportunity for investors to buy these shares at a discounted rate. We are confident that BROADSTONE NET LEASE has a bright future ahead and therefore recommend it as a strong investment opportunity. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BNL. More…
| Total Revenues | Net Income | Net Margin |
| 450.02 | 183.62 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BNL. More…
| Operations | Investing | Financing |
| 274.56 | -859.64 | 636 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for BNL. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.34k | 2.06k | 16.66 |
Key Ratios Snapshot
Some of the financial key ratios for BNL are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 50.7% |
| FCF Margin | ROE | ROA |
| – | – | – |
Peers
The commercial real estate sector is extremely competitive, with many companies vying for the same tenants and properties. Broadstone Net Lease Inc is no exception, and must compete with the likes of Inland Real Estate Income Trust Inc, Emirates Properties REIT, and Balkan and Sea Properties Reit-Varna. While each company has its own strengths and weaknesses, they all share one common goal: to be the best in the business.
– Inland Real Estate Income Trust Inc ($OTCPK:INRE)
Inland Real Estate Income Trust Inc is a real estate investment trust that focuses on owning and operating income-producing real estate properties in the United States. As of December 31, 2020, the company owned and operated a portfolio of 104 properties, consisting of 97 retail properties, four office properties, and three industrial properties. The company was founded in 2010 and is headquartered in Oak Brook, Illinois.
– Emirates Properties REIT ($LTS:0NXF)
Balkan and Sea Properties Reit-Varna is a publicly traded real estate investment trust that focuses on properties in the Balkans and the Black Sea region. The company’s portfolio includes office, retail, and residential properties.
Summary
Broadstone Net Lease (BNL) is a publicly traded REIT offering investors an enticing 7% yield, the highest in its peer group. BNL’s diversified portfolio consists of investments in a variety of property types, including retail, office, industrial, medical office, student housing and self-storage. It has a conservative balance sheet, with a low leverage ratio and a focus on long-term leases with high-quality tenants.
Additionally, BNL has an experienced management team that has consistently generated strong operating and financial results over the past few years. With a solid balance sheet, a focus on long-term leases with quality tenants, and an impressive track record of delivering strong financial results, BNL has the potential to be an attractive investment for those looking for a high-yield REIT with a diversified portfolio.
