Hello and welcome to Broadstone Net Lease's quarterly update call, recapping the first quarter of 2020. My name is Dan Blasi, and I serve as Vice President of Investor Relations here at Broadstone Net Lease or BNL. As a reminder for today, the following presentation may contain forward-looking statements regarding, among other things, our plans, strategies, and prospects, both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize those objectives. We caution you not to place undue reliance on these forward-looking statements, which speak only as of the dates indicated. The information included in the -- in this presentation and covered during this call is based on the information and disclosures contained in BNL's quarterly report on Form 10-Q and earnings release for the quarter ended March 31, 2020, which was filed with the SEC on Thursday, May 7, and is available on BNL's corporate website at investors.bnl.broadstone.com or by request. In a moment, I will hand the reins over to our Chief Executive Officer, Chris Czarnecki, who will deliver a recap of BNL's first quarter of 2020. After Chris, you will hear from Executive Vice President and Chief Financial Officer, Ryan Albano, who will discuss our financial results. We invite you to submit questions through the web face -- the webcast interface which we will address at the close of the presentation, along with questions that we have received in advance of today's call. Without further ado, here is BNL's CEO, Chris Czarnecki.

Thank you, Dan, and thank you to everyone joining this important Broadstone Net Lease update call. We are grateful for your continued support as we work through this difficult time. Our remarks today will briefly focus on Q1 results along with an update on key portfolio and balance sheet metrics as of the end of the quarter. The remainder of the presentation will focus on updates related to our portfolio's performance in April and May and our response to the COVID-19 crisis. The presentation was crafted to be a stand-alone document for those that are unable to attend this afternoon's call and is available for download on the BNL website and was filed with the SEC this morning. As with most in the net lease space, Q1 collections and occupancy results were strong and consistent, with the timing of COVID-related impacts beginning to fully manifest themselves in April and May. During Q1, the BNL portfolio was 99-plus percent leased, and we collected over 98% who rent due to us. The 98% figure was slightly below our historical averages and the difference arose from the bankruptcy of our -- one of our large tenants, Art Van Furniture. This tenant event was unrelated to COVID and began to unfold in February and March of 2020. Gross AFFO increased 20.2% over the first quarter of last year. This was mainly reflective of the contribution provided by the large industrial portfolio acquisition that we closed during the third quarter of 2019 combined with the effects of annual rent escalations on our same-property portfolio and the cost savings that we began recognizing during this quarter under our new internalized structure. Q1 2020 AFFO came in at $1.41 per share in OP Units. The major milestone for the quarter was the completion of the previously announced…

Thank you, Chris, and good afternoon, everyone. Before I begin, I'd like to thank all of you for joining us on today's call. I hope that all of you are safe while we continue to navigate through these challenging times. I'd also like to take a moment and recognize all of our employees for their excellent work during this difficult time. It is truly remarkable that over a weekend, roughly 8 weeks ago, we converted to an almost entirely remote work environment and have not missed a beat. Today, I will begin with a brief review of our first quarter operating results and important portfolio activity and finish with a review of our balance sheet and liquidity profile. From there, I will turn it back over to Chris for further discussion related to COVID-19 and some post quarter end matters. Looking at our first quarter, we reported strong quarterly results with AFFO of $41.1 million, representing an increase of $6.9 million or 20.2% compared to Q1 of 2019. This is mainly driven by the contribution provided by the large industrial portfolio acquisition that we closed during the third quarter of 2019 combined with the effects of annual rent escalations on our same-property portfolio and the cost savings that we began recognizing during this quarter under our new internalized structure. On an AFFO per share basis, we were slightly down by $0.01 per share when compared to the same period last year. This decrease was primarily due to the short-term dilution caused by the immediate increase in BNL's weighted average shares outstanding resulting from the consideration paid in conjunction with the internalization this quarter. Upon confirmation of the transaction in February, BNL began recognizing cash flow and AFFO benefits due to the immediate cost savings achieved by operating a REIT with…

Thank you, Ryan. I'm now going to turn the presentation to updates on the second quarter portfolio performance. We believe the BNL portfolio has performed well given the current conditions across the country, with many states still on mandatory lockdowns or with significant restrictions on commerce. The reason we believe we've enjoyed success to date is our highly diversified strategy and approach to portfolio construction. As Ryan discussed, the portfolio is very diversified across a variety of property types, geographies and tenant industries, all of which help lessen the impact that any one industry, tenant or asset has on our overall portfolio performance. Through last night, we have received more than 88% of April rents, which is a very strong result. In addition, based upon ongoing discussions with tenants, we have line of sight to that figure climbing above 90% in the coming week. Our May rent collections sit at approximately 81.8%, which is also very strong given that most industry experts anticipate that May would bring worse results than April as the crisis is more fully realized. For some perspective, it took us until April 27 to achieve -- to exceed 80% rent collected for that month. As you'll see on the following slides, this performance is very strong relative to our peer set and does give us optimism for the months to come. At the same time, our management team and Board are cautious as there remain many, many unknown variables that may play out in the coming months. We do not know if and how a second wave of the virus will impact the country and potentially cause additional shelter-in-place restrictions. With respect to our tenants, many came into the crisis with reasonable liquidity and strong inventory backlogs that allowed them to continue to operate their business…

Thank you, Chris. First question, you've cited your strategy of growth through acquisitions. In the current environment, do those opportunities exist? And when do you think you'll be able to return to growth via acquisition?

Thanks, Dan. And just so folks know, we have grouped these questions because they do have some similar themes between them. So we're hitting them by section by section. At the moment, and as we just talked about, the acquisition market is generally on pause for BNL and for virtually the entire space. There certainly will be some residual transactions closing in Q2 that may have been negotiated before COVID hit and will ultimately show up in Q2 results, but we expect that, that will be relatively small -- far and few between. That being said, external growth by acquisitions is very important to all net lease businesses and certainly to BNL as well. I think as we continue to move forward and think about how we grow the portfolio, first, the considerations that we need to address are really about the next source of capital for BNL, which is a lot of what I just talked about on the concluding slide or two, really making sure we have that pinned down first and then that also helps inform acquisitions volume and expectations around that. I will tell you our real estate investment committee of the Board and management are meeting later this week to continue to review the acquisition landscape talk about transactions that we do see available at the moment and prepare our strategy further as we are anxious to continue to grow the REIT's asset base.

Thanks, Chris. Next question, with the continued increase in dispositions, has BNL changed its business model to rely more and more on the buying and selling of assets versus its traditional REIT business model?

No, I'd have to say, Dan, that we are focused on our traditional model of buying well, planning to hold for the long-term and managing effectively and collecting rents. The increase in dispositions that you see rolling through the financials in the end of Q -- of 2019, excuse me, in early 2020 were directly tied to our deleveraging strategy after the large industrial acquisition that Ryan spent time talking about. So we were able to accelerate the disposition of noncore assets that, ultimately, we were then able to use a portion of the proceeds to pay down debt. We found the market very receptive from these sales. And so it was a good time to execute on that to help us deleverage and bring ourselves closer to our investment-grade credit rating guidelines. So ultimately, the model is not changing. It was a point in time in a series of strategic transactions that drove the increase in disposition activity.

Thank you, Chris. What is the status of the previously announced IPO? Is management considering resuming its private offerings or adopting new programs for redemption and dividend reinvestment?

Yes. Very fair question. And I think a lot of it, again, goes back to some of my concluding remarks. And while I appreciate that they may sound a little bit cliched or unsatisfying, it is very much the truth that our management team and the Board are looking at all strategic options for BNL and its path forward. We're in continuous discussions with our financial advisers to make sure we have the most up-to-date information on what's happening in the capital markets and other forms of capital raising and considering other decisions around the redemption programs and dividend reinvestment and whatnot. I'd point out, though -- and those discussions are robust and ongoing. And as we've moved past the initial wave of the crisis and stabilized our process and worked through a lot of our rent relief requests, this work will obviously take on a more important and focal point for our management team as we've moved through Phase I and are sort of into Phase 2 of our COVID crisis and what are -- thinking about the different options available to us. I also point out, though, we are only 8 weeks into this at the moment, roughly. And our Board and management team, again, which I highlighted in my closing remarks are diligent and thoughtful and cautious, and we want to continue to make sure we evolve and see all of the evolving landscape as clearly as we can and make the best long-term decisions. We will absolutely communicate with investors when more details are available and when it's appropriate to do so. And we will review all the key topics again at our August Board meeting that impacts shareholders as well.

Thanks, Chris. Along those lines, why now -- and this is referring prior to the virus, did you make the decision to pursue an IPO? And how have the -- those conditions changed versus prior years?

Sure. So if you folks are interested, there is a -- going back to listen to last week's annual meeting, I did spend a little bit of time -- we had a slide on this topic as to what informed our decision to pursue an IPO and launch the IPO process at the start of the year. So please feel free to go listen to that. That probably has a more elegant voice over. But ultimately, our rationale for pursuing the IPO earlier in the year centered around several key ideas. And those were: our portfolio composition compared to our peers; capital access and the ability to expand that; and then ultimately, to a lesser extent, the ability to offer investors more liquidity. On the portfolio comparison to peers, I'd really point out 2 different things. One, we feel that -- and still do, our portfolio was thoughtfully constructed and compares very well to the peers on almost all the important metrics that the space follows: weighted average remaining lease term, rent increases, diversification, significant industrial concentration, which is one of the most sought-after assets today, all line up very well with those in the public space. At the same time, we also have a long and established track record and a substantial base of assets. We are not what is often referred to in the space as a make REIT, a pool of assets that was quickly assembled with the intention of launching an IPO. And that's a very important factor. But we also are unique in the sense that we have a strong growth profile and a smaller base of assets than our peers, which could ultimately lead to us continuing to acquire and scale and driving better AFFO per share growth rates than the rest of the…

Thanks, Chris. You mentioned that the Board will revisit the suspension of the distribution in August. Does that mean that the suspension is for May, June, July and August at a minimum?

I would offer a minor clarification there. So April's dividend, which was previously declared as being paid this week on schedule on Friday. The dividend is suspended for the month of May, June and July. And under a normal cadence, August dividend would be declared at our August Board meeting and paid in September. So we're not just spending for 4 months. It's simply the coming 3 months. And then ultimately, when our Board gets together in early August, I don't remember the exact date, we'll obviously pick up the topic again there. We'll certainly be talking to the Board a lot in between there as well, but that would be the formal decision point.

Thank you, Chris. How does Broadstone's payout ratio compare to taxable REIT income? Will the distribution eventually be made up or only up to the REIT minimum requirements?

I'm going to pass that one to Ryan, if that's all right.

Sure. Thanks, Chris. In terms of how Broadstone's payout ratio compares to taxable REIT income, I guess I'd start off by saying, historically, our payout ratio has been roughly 90% of AFFO. AFFO, obviously exceeds taxable income. One of the significant adjustments between the 2 is depreciation and amortization as well as some other things. So naturally, along the way we have historically distributed in excess of what would be required along the way. In terms of the second part of the question, I think Chris had mentioned earlier that the Board of Directors will continue to evaluate the distribution as we continue to move forward in sort of this temporary suspension thereof. They'll continue to look at that on a quarterly basis and determine what the next step with it is. From there, I guess what I would say, though, is in terms of overall REIT minimum requirements that are necessary to comply with REIT status and such, to the extent that we fall short towards the end of the year in terms of what we've already distributed out or will be distributing out versus the actual minimum requirement, we'll continue to monitor that period by period. And to the extent a catch-up distribution is necessary, we will certainly look to do so to maintain REIT status.

Thanks, Ryan. With the decline in interest rates, we've been -- have we been able to benefit from restructuring our debt?

Sure. Chris, I'll take that one.

Yes.

So as we think about decrease in interest rates, I think there are a few important factors here. A lot of what we see is news around decrease or increase or interest rate movement in general with respect to risk-free rates or base rates, right? Whether they be treasury rates or LIBOR rates and so on. Obviously, since this crisis has occurred, we've seen a fairly significant downward trajectory with respect to base rates, with treasuries pulling in quite a bit. As I look at it, I think if we measure the beginning of this being somewhere in the late February, beginning of March time frame on a global basis, you saw rates sort of in that -- senior treasuries in the roughly north of 150 basis points, and they've compressed into the 70s at this point. That said, the second factor to this is really the overall credit spread. So as we look at credit spreads in the investment-grade space, along with, say, net lease specifically, we've seen a significant widening out of those investment-grade credit spreads, in some cases, north of 300 basis points during the same time period. So although the headline rates are obviously decreasing on an all-in basis when you add the spread to it, it's really been a net widening out of interest rates. So ultimately, we haven't done anything other than what I outlined in my commentary with respect to balance sheet management or changing anything with respect to our debt profile during the quarter. What I would say though is that we have benefited from some of the lower base rate movement through our floating rate debt component of the balance sheet at this point.

Thank you, Ryan. And the next question also relates to interest rates. Why has the value of your interest rate swaps increased from a net liability of $21 million to a net liability of $80 million?

Sure. So a lot of the same discussion points that I just outlined in the last question sort of play through to this. So we move period to period, and there's a fair value done of those interest rate swaps or just in general our fixed rate debt. Those same dynamics effectively play out and move the valuation around whether rates increase or decrease or spreads widen or tighten. Those all have an impact on it, and what you're seeing there is effectively the movement from quarter-to-quarter.

Thank you. How much availability does BNL have on its credit facility?

I'll take that one again, Dan. In terms of availability on the credit facility, as I outlined in some of the commentary, leading up to quarter end as well as through the beginning of April, we took a significant amount of our revolving line capacity and turned it from available capacity into cash on the balance sheet. So I had referenced $75 million of effectively available capacity that we turned into cash on the balance sheet. Above that, we lost a little bit of room based on where our current covenant structure existed and such that we had about a little north of $25 million of room after that borrowing as additional available borrowings under the current credit facility.

Thanks again, Ryan. Next question, how did Broadstone determine the approximately $300 million payout to the former management group?

Sure, Dan. I'll jump in there. I would take us back to some of our presentations from last fall. And really, the process was a diligent and detailed one led by a special committee of the Board, which was comprised of only independent and disinterested directors. So all of our independent directors were active, but there was a special committee put in place to undertake and review this transaction. Ultimately, the special committee believed many of the same thing -- absolutely the same things that we highlighted in our presentation today as to what the positive benefits for shareholders were and how, in addition to the internalization and all the simplifying corporate structures and things that we talked about, the substantial cash savings and alignment of the -- alignment work were really important. And so the negotiation and the work around the $300 million figure was a negotiated transaction. The special committee -- had investment bankers from Moelis & Company to act as their financial adviser and Alston & Bird to represent them on the legal side. And they carefully studied the cash flow and AFFO savings anticipated from the transaction, plus the future growth prospects in the company and, ultimately, the other strategic benefits that came through internalization when making the decision to move forward and agree to the $300 million price that was listed there. I also think it's very important, though, that -- it's worth noting that our ownership group at Broadstone Real Estate, which was comprised of Amy Tait, Stone Point Capital and a collection of the employees -- or all the employees, I should say, all very much believed in the transaction and believed in the long-term future of the company as well. And you can see that through the high levels of stock that everybody took in the transaction. Both Amy and her family -- and Amy remains on the Board and remains as Chairman, took 100% of their consideration in shares and units. The Stone Point Capital team did the same, and management took very heavy concentrations as well in stock. And so ultimately, while it was a complicated process, we and the special committee were very much locked in arms on both the benefits to shareholders and our future view of BNL's prospects going forward. And so hopefully, we created some tremendous alignment through that.

Thanks, Chris. BNL recognized approximately $340 million of goodwill. What did this relate to? And how is it calculated?

Sure. I'll take that one, Chris. That's a great question. This is actually the first time that we're seeing goodwill show up in the financial statements of BNL. So ultimately, the $340 million of goodwill was a result of the internalization transaction. Mechanically speaking, goodwill represents effectively the excess of the purchase price over the acquired assets and liabilities. So in this case, it's really a present value of the future cash flow savings that were -- are expected under the internalization transaction. So good question. Definitely the first time we're seeing it come up, and it will continue to be around as we go forward.

Thank you, Ryan. Next question. The communication refers to an earnout liability recognition of over $40 million. In the face of the economic uncertainty, is it possible to achieve an earnout?

Sure. I can take that again. So as Chris mentioned, there's an earnout in place in conjunction with the internalization transaction. If you look towards the 10-Q filing and whatnot, we have laid out quite a bit of detail around it. Ultimately, the answer is yes. We have multiple tranches associated with the earnout that span over a long time period, up to, say, 5 years. There are 2 tranches that total $25 million that are available for potential earning in 2020 to 2021. And then 2 additional tranches on top of that, that total $50 million that span over performance periods of 2021 through 2024. So as we think about a lot of the uncertainty and sort of negative headline news that we're talking about today, a lot of that, in our view, is clearly near-term in nature versus spanning over a long period of time.

Thank you, Ryan. Is BNL still on target to realize approximately $25 million in savings for the first year of the internalization? And what will the savings be in Q2?

I can grab that one, Dan. Thanks. So I think some of this is explained on the early slides in the presentation where we gave the walk from the internal and external structures, and I'd encourage folks to take a look at that because I think it's very informative. I think the -- ultimately, the $25 million savings figure was both a result of expectations of savings that would run through the balance sheet. So kind of what we showed on that earlier slide with the changes in the G&A profile and the replacement of management fees and ultimately lower internalized G&A costs coming on there. And on Q1 basis, we estimated that savings to be -- if we had been operating on an internalized basis for the full quarter in the $3.7 million range, I think that's a pretty fair estimate for Q2 given limited transaction activity, again, plus or minus for small unexpected items. The remainder of the $25 million savings was obviously tied to transaction activity and not paying acquisition, disposition fees and things of that nature. Ultimately, the back half of the year is a TBD, with acquisitions and disposition volumes still to be determined by a host of factors. So we will have to wait and see how that progresses. But even with the uncertainty around the volume -- transaction volumes for the balance of the year, I think it's really an important positive and we will focus on that. We're really still enjoying substantial savings during the year. They'll continue to grow over time and as we continue to leverage our base and the company is still benefiting from all the strategic optionality created by having an internalized management team. So more to come on that front. But we should have a pretty clear view of where Q2 can line up and then, ultimately, we'll continue to report to you on that as the year progresses.

Thank you, Chris. Have any tenants, in addition to Art Van Furniture, filed for bankruptcy or indicated an intent to file?

Yes. So we had 1 additional tenant, Dan, a small industrial tenant that filed for bankruptcy in April. It's not a top 20 tenant. Ultimately, the business operations for that tenant to continue, it's -- maybe probably a more elegant way to say this was a prepackaged bankruptcy, where all of the creditors agreed to the terms of the bankruptcy before the company actually filed and entered the process. So it should be a relatively short process based upon what we understand, and we anticipate receiving rent collections during the proceedings and then after as the company emerges from bankruptcy as well.

Thank you, Chris. STORE has re-leased its Art Van properties at approximately 70% of base rent with possession occurring on May 8 and rent beginning in July. What is the status and expected time line of the Art Van stores that Broadstone Net Lease owns?

Yes, Dan. That is correct. I've seen those press releases and headlines. We've been part of the ongoing negotiations. And to the best of my knowledge, we've had similar discussions with the same tenant that STORE has appeared to execute the re-lease with. Ultimately, we didn't feel and don't feel at the time that the potential tenants offer was really the appropriate outcome for BNL. What drove that decision and why we chose not to move forward with that tenant at this time is that the tenant had a fairly strong financial ask of BNL to help finance their inventory purchase from the Art Van estate. And we're looking for other support for working capital needs. Although I don't know this to be sure, I assume that the same-store pass was made of STORE, but I'm not privy to those discussions. So ultimately, we were not looking to negotiate or execute upon that deal. I will note that the bankruptcy process continues. It appears, from our discussions with bankruptcy counsel that going out of business or liquidation sales will commence in early June or, frankly, as soon as it's safe to practically open the sites. It is worth noting that BNL should have priority claims for rent for a period during the bankruptcy as it continues to play out and they operate our sites and we've been storing furniture for them and then ultimately selling it. And from there, our team continues to negotiate with a number of interested parties for our sites, either to lease or sell. We've seen good interest in a variety of them. I would anticipate these conversations accelerate as the world opens up further and tenants have a better view or line of sight into when they can actually operate the stores after the bankruptcy's proceeding there are closed. So that's where we are today.

Thank you, Chris. Next question, how many of BNL's properties are currently not open as a result of the COVID-19 pandemic?

Yes. We talked about this in the slides, so I'll move through it pretty quickly. But we estimate about 2/3 are open and 1/3 are closed or partially closed. We would also estimate that 70% are deemed essential, whereas 30% of the businesses are deemed nonessential. Obviously, this is a moving target by the day, and we continue to follow it very closely based on all the state regulations. But folks can point to Page 13 of the presentation for more detail there.

Thank you, Chris. When BNL has agreed to rent deferrals, what terms and provisions has the company agreed to?

Yes. So I would define this as, first and foremost, we're looking to maintain muscle memory with our tenants. If we agree to some form of deferment, I think we should pay some -- they should pay some amount of rent each month, and that's been in each one of our agreements. In terms of what we've actually deferred, it has been between 25% and 75% of monthly rent for approximately 1 quarter. We've been expecting to be repaid primarily by the end of the year, and that's been the general term. And then as I alluded to earlier, we continue to examine other ways to add value with other leases -- lease enhancements as well, and so that puts an outline.

Thanks again, Chris. In cases where we do decline rent relief requests, are the tenants continuing to pay?

So that's a good question. In many cases, those who have been declined have continued to pay rent, but it's certainly not all. As you can tell from our numbers, we have a portion that is unresolved, which includes some unpaid rents. Some of the discussions also involve what we would describe as an understanding note to the tenant by which we tell them that we have looked at their financial situation, and we feel like they should pay rent in the short-term and that we want to maintain close contact with them as the months continue to unfold, such that we don't miss the proverbial forest for the trees and I turn them away, miss a significant risk that appears in their business. So a complicated question, but generally, most are paying rents when we have asked them to continue to do so.

Next question, how many tenants have received PPP loans? And are they required to pay BNL with those funds?

Yes. I'll take it, Dan. A handful of our tenants have reported receiving PPP loans, and some have actually withdrawn the rent release request as a result of receiving these loans, which is great. We definitely make all tenants aware of it when we're in discussions, and they've reached out to us and to help them understand the applicability to their business. And any agreement we sign that the tenant -- does require the tenant to use PPP loans to be applied towards rent if they are received and they receive a loan.

Thanks, Chris. You've done a nice job presenting rent relief requests by property type. Can you provide percent of approved requests by property type as well?

Thank you. Absolutely, we can consider including this in our next report to investors. It probably becomes a little bit more meaningful once we've finalized all the requests and worked through all those. But at a high level, those that we've signed up generally are smaller franchisees in the casual dining and quick-service space and then a few warehouses, industrial assets that serve the retail value chain. So our housing and distributing products that end up in retail stores have been the ones that jump to mind as our most common executions to date.

Thank you, Chris. What is the median rent coverage ratio for our tenants? Many of the other triple net lease REITs report on this number.

Sure. I checked with the credit team this morning just to make sure we are caught up on this one. We track it for our retail and restaurant tenants, which are most applicable from a 4-wall coverage or EBITDAR coverage. Our Q1 average rent coverage ratio was 3.0 for the portfolio for assets appraised.

Thank you, Chris. What is -- management's calculation of NAV, DSV and cap rates do not factor in the impact of the COVID-19 pandemic, even though it's apparent that many industries have been negatively impacted by the pandemic. Why hasn't the impact of the pandemic been factored in yet?

Yes. So I think this goes back to our discussions and slides on the determined share value. I very much agree that many industries have been negatively impacted by the pandemic. And what I'd point out is, our methodology and valuations are very data-driven and consistently applied. And they focus heavily on sales comparables and sales comparables for assets that are similar to what we own. And we research those every single quarter. And ultimately, the Q1 sales data is really not reflective of the impacts of COVID simply because most of the transactions that are closed in Q1 were the result of negotiations that happened in year-end or early 2020 and the marketplace had not digested the information associated with COVID yet. A transaction market for the moment is certainly on pause with the lack of debt financing, inability to visit sites and visibility towards rental payments in the short term. But it definitely will rebound in future quarters, and we will look to incorporate changes in pricing to our assets as we continue to see more data available through subsequent transactions. So ultimately, wanted to be consistent for our investors, thoughtful and incorporate the best available information we had. And unfortunately, that is just not reflected in where the sales comparables were in Q1. Real estate tends to be -- private real estate tends to be a slow laggard in terms of reporting, given the long lead times to negotiate and close transactions.

Thank you, Chris. Many companies are considering actions to reduce operating expenses, including reducing G&A through, among other actions, reducing third party fees, director fees and payroll. What actions has BNL taken to reduce operating expenses?

Ryan, do you want to take that one?

I'll jump in here. Yes. And give you a break. Yes, absolutely, good point and should have highlighted this a little bit before. So I'm glad it was brought up. In terms of how we're thinking about operating expenses, today, obviously, a little bit different than before. Before the -- before this current global pandemic and COVID-19, we internalize, as we've talked about at length during this call, it really changed our overall cost structure from one that was primarily focused on fees that are paid to the external manager to internal costs. Those costs include payroll-related costs, travel and entertainment and various other things. So we obviously have a decrease in those costs as compared to our old structure and then have continued to monitor them as we headed into this sort of uncertain time. Some things that have sort of naturally occurred, right, in terms of G&A, is that there's clearly no travel happening right now. We've frozen our marketing budget. In terms of office administration costs, they're clearly down. All sorts of normal cost that we incur for third parties and consultant usage and things of that nature are naturally down. We also aren't currently hiring. With that said, though, I'd say that in terms of our employee base and whatnot, we aren't looking at any furloughs at this time or anything of that nature. The team has been carefully redeployed in cases where they have some idle capacity, such as the acquisitions at the moment, has been heavily focused on working through tenant-related matters and engaging in dialogue with some of the same individuals that they originally did deals with. So from a bigger picture perspective, we obviously want to have a full team in place. It's carefully constructed over the last 5 years, as I…

No, you said it beautifully. I think it's right. We're being cautious on all the right fronts. And the team is busy and productive, and they're doing great things. And we need their services now, and we will want their services going forward. And so because we have a large scale and a relatively low overhead, we're watching expenses very closely on all the appropriate fronts and, ultimately, feel like we're going to be in a good spot with this.

Thank you, Chris and Ryan. Was BNL eligible for any of the government stimulus funds or the Fed's liquidity programs?

Yes. That's a good one, Dan. And we've heard that from a few different folks, similar questions. We did not meet the requirements of the PPP program based upon our liquidity profile and the fact that we were seeing good rent collections. Some of the provisions there -- well, excuse me, some companies receiving that stimulus are required to evident -- to offer evidence in the test of their liquidity needs. And the expectation is that the stimulus would be used for a last resort. Given that we have revolver capacity and a lot of cash on hand, it was not something that made sense for us. And ultimately, I think you've seen a lot of larger public companies -- not peers, I should say, but public companies and other industries returning proceeds that they had drawn from the program in earlier days. One of the things on the other Fed liquidity programs that the person who asked this question focused on is one that we follow closely. Nothing has been applicable to us yet. I do spend a lot of time joining our Washington Advocacy Group, NAREIT, the National Association of Real Estate Investment Trusts, and they have done an excellent job keeping the industry abreast on how these programs are impacting us, changes at Treasury, changes with REIT status and REIT requirements and all that kind of stuff. And so that's a position where I've spent a lot of my time -- not a lot, but at least a reasonable amount of my time focusing on and using that resource to help us make sure we're well tuned into anything that might be a fit for us going forward, so...

Thank you, Chris. And thank you all for your time and questions today. Almost 400 shareholders and interested parties joined today's call. And as you can imagine, we have received significantly more questions than we have time to address on this call on a 1-by-1 basis. We do have a log of all those calls. And if we didn't have an opportunity to get to your specific question today, a member of our IR team will follow up with you. I'll turn it over to Chris in case he has any final comments.

Thanks, Dan. Yes, it's definitely -- we've kept you a lot longer than we planned to and appreciate the tremendous interest. I -- the 400 shareholders is very, very interesting and wonderful to see we had such good turnout for us. I hope that you found all of the information very, very informative. The team worked very hard on it to give you as clear a picture and view as we possibly could as to where BNL sits at the moment. And as Dan alluded to, we will continue to focus on transparent and consistent communication with you as the process moves forward and we continue to advance in this. Dan Blasi and Nicole Calcagni from our Investor Relations teams are available to assist you and they'll follow up if there's any questions that we didn't specifically address. And I'll just close by saying I'm deeply grateful and thankful for all of the ongoing support for Broadstone Net Lease. We wish you all very well and look forward to speaking with you soon, and have a great afternoon. Bye now.