Broadstone Net Lease, Inc. (NYSE:BNL) Q4 2023 Results Conference Call February 22, 2024 11:00 AM ET

Company Participants

Brent Maedl - Director of Corporate Finance and Investor Relations

John Moragne - CEO

Ryan Albano - President and COO

Kevin Fennell - CFO

Conference Call Participants

Spenser Allaway - Green Street

Anthony Paolone - JP Morgan

Fisher Rhodes - BTIG

Mitch Germain - JMP Securities

John Kim - BMO Capital Markets

Ki Bin Kim - Truist

Ronald Kamdem - Morgan Stanley

Operator

Hello, everyone. And welcome to the Broadstone Net Lease Fourth Quarter 2023 Earnings Conference Call. My name is Bruno, and I'll be operating your call today. Please note that today's call is being recorded [Operator Instructions].

I will now turn the call over to Brent Maedl, Director of Corporate Finance and Investor Relations at Broadstone. Please go ahead.

Brent Maedl

Thank you, operator. And thank you everyone for joining us today for Broadstone Net Lease’s fourth quarter 2023 earnings call. On today's call, you will hear prepared remarks from CEO, John Moragne; President and COO, Ryan Albano; and CFO, Kevin Fennell. All three will be available for the Q&A portion of this call. As a reminder, the following discussion and answers to your questions contain forward looking statements, which are subject to risk and uncertainties that can cause actual results to differ materially due to a variety of factors. We caution you not to place undue reliance on these forward-looking statements and refer you to our SEC filings, including our Form 10-K for the year ended December 31, 2023, for a more detailed discussion of the risk factors that may cause such differences. Any forward-looking statements provided during this conference call are only made as of the date of this call. In conjunction with and included within our earnings release, we provided details on our ongoing efforts to simplify our healthcare portfolio to the disposition of clinically oriented assets. These materials have been furnished with the SEC and may be found on the Investor Relations section of our Web site at broadstone.com. With that, I'll turn the call over to John.

John Moragne

Thank you, Brent. Good morning, everyone. I'm proud of what our team accomplished throughout 2023 and what was a uniquely challenging year on many fronts. But before jumping into perspectives on our fourth quarter and full year results and market conditions, I would like to take a few minutes to discuss our decision and ongoing efforts to simplify our portfolio composition through the sale of our clinically oriented healthcare assets, specifically clinical, surgical and traditional medical office building properties, commencing with our announcement of an agreement to sell 37 of these assets for $253 million that we anticipate to close in the first quarter. The volatile macroeconomic conditions and suppressed transaction environment we experienced in my first year as CEO provided our team with a great opportunity for internal process and portfolio evaluation. We completed a number of internal objectives and priorities. But perhaps the greatest was the clarity we obtained and our decision to simplify our portfolio, sell our clinical, surgical and traditional MOB assets, focus more intently and proactively on the industrial space and our other core investment verticals of retail and restaurant assets and remove the complexity caused by holding healthcare assets not customarily included in the net lease wrapper.