VICTOR, N.Y.--(BUSINESS WIRE)--October 29, 2025--
Broadstone Net Lease, Inc. (NYSE: BNL) ("BNL", the "Company", "we", "our", or "us"), today announced its operating results for the quarter ended September 30, 2025.
MANAGEMENT COMMENTARY
"Our strong third-quarter results reflect the continued success of our differentiated growth strategy as well as the deep expertise and strategic acumen of our team," said John Moragne, BNL's Chief Executive Officer. "This quarter we invested $204 million in an attractive pipeline of accretive acquisitions and development projects, collected 100% of our rents, resolved both the At Home and Claire's situations with all leases assumed and no bad debt incurred from either, and secured 1.2% sequential quarterly growth in contractual rental obligations. As a result, and reflecting our year-to-date success and our ongoing commitment to driving long-term shareholder value, we are raising our full-year guidance to $1.49 to $1.50 of AFFO per share, representing 4.2% to 4.9% growth for the year. We are proud of what we have accomplished so far but are no less determined to push BNL even higher."
THIRD QUARTER 2025 HIGHLIGHTS
OPERATING Generated net income of $27.1 million, or
RESULTS $0.14 per diluted share, representing a
26.3% decrease compared to the same period
in the prior year. The decrease is
primarily related to a $10.1 million
increase in interest expenses and a $5.9
million increase in the provision for
impairment of investment in rental
properties.
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Generated adjusted funds from operations
("AFFO") of $74.3 million, or $0.37 per
diluted share, representing a 5.7%
increase compared to the same period in
the previous year.
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Incurred $10.0 million of general and
administrative expenses, representing a
14.4% increase compared to the same period
in the prior year. Incurred core general
and administrative expenses of $7.4
million, which excludes $2.5 million of
stock-based compensation, and $0.1 million
of non-capitalized transaction costs,
representing an 8.7% increase compared to
the same period in the prior year.
Increases are largely driven by updated
expectations for performance based
incentives, and core general and
administrative expenses remain in-line
with full year guidance expectations.
Portfolio was 99.5% leased based on
rentable square footage, with only three
of our 759 properties vacant and not
subject to a lease at quarter end.
Collected 100.0% of base rents due for the
quarter for all properties under lease.
Successfully navigated through At Home and
Claire's bankruptcy proceedings with all
leases assumed and no concessions on rent.
As a result of the lease assumptions, the
Company does not anticipate realizing any
lost rent in 2025 associated with either
tenant, with Claire's already paid in full
for 2025.
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INVESTMENT & DISPOSITION ACTIVITY Invested $203.9 million quarter-to-date,
including $139.5 million in new property
acquisitions, $41.0 million in
build-to-suit developments, $17.9 million
in transitional capital, and $5.5 million
in revenue generating capital
expenditures. The completed acquisitions
and revenue generating capital
expenditures had a weighted average
initial cash capitalization rate, lease
term, and annual rent increase of 7.1%,
12.2 years, and 2.4%, respectively. The
completed acquisitions had a weighted
average straight-line yield of 8.1%.
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Through the third quarter, we invested
$433.0 million, including $253.2 million
in new property acquisitions, $130.8
million in build-to-suit developments,
$40.7 million in transitional capital, and
$8.3 million in revenue generating capital
expenditures. The completed acquisitions
and revenue generating capital
expenditures had a weighted average
initial cash capitalization rate, lease
term, and annual rent increase of 7.1%,
12.3 years, and 2.5%, respectively. The
completed acquisitions have a weighted
average straight-line yield of 8.2%.
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Subsequent to quarter end through October
24, we invested $119.6 million, consisting
of $100.2 million in new property
acquisitions of industrial properties and
$19.4 million of build-to-suit
developments, bringing total year-to-date
investment activity to $552.6 million.
We have a total of $235.8 million in
remaining estimated investments for
build-to-suit developments to be funded
through the fourth quarter of 2026.
Additionally, we have $67.0 million of
acquisitions under control and $1.0
million of commitments to fund revenue
generating capital expenditures with
existing tenants.
During the quarter, we sold 12 properties
for gross proceeds of $38.7 million at a
weighted average cash capitalization rate
of 7.0% on tenanted properties.
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CAPITAL MARKETS ACTIVITY On September 26, 2025, we completed a public
offering of $350.0 million 5.00% senior unsecured
notes due in 2032, issued at 99.15% of the
principal amount. The proceeds were used to repay
borrowings on the unsecured revolving credit
facility, to fund investments in real estate, and
for general corporate purposes. In conjunction with
this offering, we terminated $335 million in
existing interest rate swaps to realign our
notional swap value with our floating rate exposure
as a result of our public bond offering.
Ended the quarter with total outstanding debt of
$2.4 billion, Net Debt of $2.3 billion, a Net Debt
to Annualized Adjusted EBITDAre ratio of 5.7x, and
a Pro Forma Net Debt to Annualized Adjusted
EBITDAre ratio of 5.4x.
As of September 30, 2025, we had $904.2 million of
capacity on our unsecured revolving credit
facility.
Declared a quarterly dividend of $0.29 per share.
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