Broadstone Net Lease (BNL) has announced its decision to divest its clinically-oriented healthcare properties, with approximately half of them already under contract. The real estate investment trust (REIT) stated that this move aligns with their strategy to focus on core net lease assets in the industrial, retail, and restaurant sectors.
According to BNL’s fourth-quarter 2023 results announcement from their headquarters in Victor, NY, the identified assets for sale do not typically fall within single-tenant net lease portfolios. These include clinical facilities such as surgical centers and traditional medical office buildings.
While these types of properties may be appealing to dedicated healthcare investors and managers due to their unique characteristics, they can present challenges in the net lease space. This is because they often have shorter leases with more landlord responsibilities and potential downtime upon maturity.
In total, BNL plans to sell 75 healthcare properties which make up about 7% of its overall portfolio. Currently, contracts have been executed for 37 of these assets valued at a combined $253 million while others are still being sold at varying stages.
After completing these sales transactions,BNL’s remaining healthcare portfolio will consist primarily of consumer-centric medical facilities commonly found among publicly-traded net lease REITs such as plasma centers,dialysis clinics,and veterinary services.These typesofassetshave strong real estate fundamentals criticaltothe tenant’s businesswith minimal regulatory risk involved.This strategic shift reflects BNL’s commitment towards maximizing value for shareholders by focusing on high-quality core investments within key sectors.
