Broadstone Net Lease, Inc. · NYSE:BNL
Broadstone Net Lease — Investor Presentation (November 2024)
34 slides from Broadstone Net Lease's investor presentation, November 2024
Slide 1: Investor Presentation November 2024
November 2024 Investor Presentation Broadstone Net Lease, Inc. | NYSE: BNL
Slide 2: Disclaimer
DISCLAIMER CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other thing
Slide 3: Broadstone At-a-Glance
BROADSTONE AT-A-GLANCE 3 INVESTOR PRESENTATION NOVEMBER 2024
Slide 4: Broadstone At-a-Glance
BROADSTONE AT-A-GLANCE $398.2 Million 39.7 Million Annualized Base Rent Rentable Square Footage 57.8%Industrial 13.4% Restaurant 12.5% Retail 10.5% Healthcare 99.0% Occupancy 1 5.8% Office 99.1% 10.3 Years WALT 2 Rent Collections in Q3 2.0% Annual Escalation 94.0% Financial Reporting3,4 773 Properti
Slide 5: Investment Thesis
INVESTMENT THESIS Established REIT with Longstanding Track Record of Success Delivering Shareholder Value 15+ year operating history pursuing a diversified net lease strategy with a leading team, now proven through two cycles Publicly traded on the NYSE (BNL) with experience operating under subs
Slide 6: Longstanding operating history and employee tenure
BROADSTONE NET LEASE (NYSE: BNL) Longstanding operating history and track record of success delivering results to shareholders ($mm) AVERAGE EMPLOYEE TENURE: 5.5 YEARS ESTIMATED GROWTH IN GROSS ASSET VALUE SINCE INCEPTION1 5+ 60% $5,491 Employee Tenure $5,427 $5,391 4 3% (Years) 3 14% 2 $4,572 4% <2
Slide 7: Q3 2024 At-a-Glance
Q3 2024 AT-A-GLANCE Diversified portfolio continues to generate consistent results and steady same-store growth PORTFOLIO OVERVIEW KEY OPERATING METRICS $398.2 Million 773 39.7 Million Annualized Base Rent Properties Square Footage $93.9mm 99.1% Investments Rent Collection $5.7 billion 44 + 4 Enterp
Slide 8: Portfolio Diversification
PORTFOLIO DIVERSIFICATION TOP 20 TENANTS PROPERTY TYPE DIVERSIFICATION (BY ABR) ABR as a # of Tenant Property Type % of Total Properties Portfolio Industrial 57.8% Roskam Foods* Industrial / Office 7 4.0% Manufacturing 17.5% UNFI Industrial 1 3.4% Distribution & Warehouse 14.1% AHF Products* Industr
Slide 9: Top 10 Tenant Descriptions
TOP 10 TENANT DESCRIPTIONS TENANT BUSINESS DESCRIPTION Founded in 1923 and headquartered in Grand Rapids, Michigan, Roskam Baking Company is a food manufacturer with over 2 million square feet of manufacturing space and over 30 manufacturing and packaging lines. Roskam manufactures a diverse product
Slide 10: Top 10 Tenant Descriptions (Cont.)
TOP 10 TENANT DESCRIPTIONS (CONT.) TENANT BUSINESS DESCRIPTION For 85 years, Tractor Supply Company (NASDAQ: TSCO) has operated hardware store locations, selling lawn care supplies, power tools, fencing, irrigation system parts, and more. Tractor Supply Company operates over 2,181 stores across 49 s
Slide 11: Diversified Portfolio
DIVERSIFIED PORTFOLIO 11 INVESTOR PRESENTATION NOVEMBER 2024
Slide 12: Portfolio At-a-Glance: Industrial
PORTFOLIO AT-A-GLANCE: INDUSTRIAL PROPERTY TYPE BREAKDOWN PROPERTY TYPE OVERVIEW 203 $230mm 31.5mm Properties ABR SF Industrial Flex and Services 6.4% R&D 7.1% 99 2.1% Wtd. Avg. 11.3 Years Manufacturing Tenants Rent Escalations WALT Cold 30.4% Storage Industrial exposure has grown from 31.2% at YE 2
Slide 13: UNFI Build-to-Suit Development
UNFI BUILD-TO-SUIT DEVELOPMENT Transaction Summary Sourcing Initial Cash Yield Off-Market - Direct 7.2% Max Funding Amount Straight Line Yield $204.5 Million 8.6% Total Funded Amount1 Lease Term $190.2 Million 15 years Annual Base Rent Annual Rent Escalation $14 Million 2.5% Size Tenant 1,016,120 SF
Slide 14: Remaining Portfolio At-a-Glance
REMAINING PORTFOLIO AT-A-GLANCE TOP TENANTS KEY STATISTICS PROPERTY TYPE BREAKDOWN ABR % | $: 13.4% | $54mm RESTAURANT Casual Dining, Properties: 253 50.6% Square Feet: 1.2mm 13.4% ABR WALT: 13.0 years QSR 49.4% Wtd Avg. Annual 1.8% Rent Escalation: ABR % | $: 12.5% | $50mm Automotive 24% Properties
Slide 15: Healthcare Simplification – Pro Forma Portfolio
HEALTHCARE SIMPLIFICATION – PRO FORMA PORTFOLIO Successfully brought healthcare exposure below 10% as of October 2024 December 2023 October 2024 Post-Assets to be Sold Portfolio Concentration 5.9% 5.9% 6.1% 13.5% Industrial 13.6% 14.0% Healthcare Completed 11.4% Assets to Retail 51.5% Dispositions 1
Slide 16: Significant Geographic Diversity
SIGNIFICANT GEOGRAPHIC DIVERSITY TOTAL PROPERTIES: 773 TOTAL STATES/PROVINCES: 44 + 4 Canadian provinces ABR as a % of State Total Portfolio 1 TX 9.5% 2 MI 9.0% 3 FL 6.8% 4 CA 6.1% 5 IL 5.7% 6 WI 4.9% 7 OH 4.2% 8 MN 4.0% 9 TN 3.8% 10 IN 3.7% Top 10 States 57.7% Data as of September 30, 2024 16 INVES
Slide 17: Significant Cross-Diversification
SIGNIFICANT CROSS-DIVERSIFICATION Significant Geographic, Property Type, and Industry Diversification helps mitigate state specific risk STATE EXPOSURE AT-A-GLANCE State: Texas ($ in millions) Dallas Concentration: 1 $6.2 Houston $1.1 ABR: % | $ 9.5% | $37.6mm $12.0 Austin $1.4 Tenants: 36 Sherman $
Slide 18: Top-Tier Portfolio Metrics
TOP-TIER PORTFOLIO METRICS RENT COLLECTION RENT ESCALATION 1 1 1 99.9% 99.9% 99.2% 99.0% 99.0% 99.1% 2.5% Contractual Fixed Increases 2.3% 85.4% Portfolio, 2.0% 2.1% 1.8% CPI- 1.4% Related 12.0% Flat 2.6% Restaurant Retail Industrial Office Healthcare Q2 Q3 Q4 Q1 Q2 Q3 79.4% Leases with 2023 2024 An
Slide 19: Top-Tier Portfolio Metrics
TOP-TIER PORTFOLIO METRICS Portfolio composition and underlying metrics rank toward the top of the net lease space INDUSTRIAL EXPOSURE WEIGHTED AVERAGE LEASE TERM REMAINING 63.5% 14.1 57.8% 12.2 10.3 10.1 10.0 9.5 9.4 7.9 7.3 14.6% 3.5% 0.0% 0.0% 0.0% 0.0% 0.0% PORTFOLIO RENT ESCALATIONS LEASE ROLLO
Slide 20: Attractive Relative Valuation
ATTRACTIVE RELATIVE VALUATION 2024E AFFO MULTIPLE DIVIDEND YIELD Discounted valuation despite Dividend Yield of 6.6% company’s performance and position 6.6% 18.2x 6.3% 17.9x 5.8% 15.8x 5.4% 5.3% 14.1x Peer Average, 14.5x Peer Average, 5.1% 5.3% 13.5x 5.1% 12.9x 12.2x 12.1x 11.8x 4.1% 3.7% Source: Pu
Slide 21: Investment Strategy
INVESTMENT STRATEGY 21 INVESTOR PRESENTATION NOVEMBER 2024
Slide 22: Systematic Investment Approach
SYSTEMATIC INVESTMENT APPROACH INVESTMENT TEAMS: INDUSTRIAL RESTAURANT RETAIL CURRENT BROKERAGE DEVELOPMENT TENANT PRIVATE SOURCING CHANNELS: UPREIT OWNERS NETWORK PARTNERS RELATIONSHIPS EQUITY INVESTMENT TYPE DESCRIPTION SALE Acquire single-tenant property with a simultaneous new long-term lease
Slide 23: Differentiated Investment Approach
DIFFERENTIATED INVESTMENT APPROACH Agile Investment Strategy Enables Identification of Attractive Investment Opportunities Diversified Core Attractive Capital Proven Property Sectors Allocation Investment Strategy A decade plus of experience Flexibility to identify adjacent property ✔ Increased
Slide 24: Proven & Disciplined Investment Approach
PROVEN & DISCIPLINED INVESTMENT APPROACH Recent investment activity heavily weighted to industrial opportunities given risk-adjusted returns, but maintain acquisition flexibility to execute on diversified pipeline of assets Volume ($mm) Industrial Investments 2019 – 2024 YTD $2.2 Billion Industrial
Slide 25: Balance Sheet Management
BALANCE SHEET MANAGEMENT 25 INVESTOR PRESENTATION NOVEMBER 2024
Slide 26: Conservative Balance Sheet & Prudent Capital Allocation
CONSERVATIVE BALANCE SHEET & PRUDENT CAPITAL ALLOCATION 1 Defensive leverage profile with broad access to diversified capital sources 2 Carefully constructed platform built to deliver accretive external growth 3 Specialized, national sourcing model with robust pipeline of opportunities 4 Diversified
Slide 27: Well Capitalized Balance Sheet
WELL CAPITALIZED BALANCE SHEET Investment grade credit rated balance sheet with well laddered maturities and strong liquidity TOTAL CAPITALIZATION DETAIL TOTAL CAPITALIZATION ON SEPTEMBER 30, 2024 ($ in thousands) September 30, 2024 1.4% 2.2% Equity Common Stock Common Stock 188,507 14.9% OP Units O
Slide 28: Emphasis Placed on Liquidity
EMPHASIS PLACED ON LIQUIDITY Conservative leverage profile & ample liquidity to navigate current and future economic uncertainly KEY CREDIT METRICS AS OF SEPTEMBER 30, 2024 PRO FORMA LEVERAGE PROFILE EVOLUTION2 Net Debt / Annualized Adj. EBITDAre 4.9x 4.6x BBB / Baa2 Pro Forma Net Debt / Annualized
Slide 29: Corporate Governance
CORPORATE GOVERNANCE 29 INVESTOR PRESENTATION NOVEMBER 2024
Slide 30: Board of Directors & Governance
BOARD OF DIRECTORS & GOVERNANCE BOARD OF DIRECTORS KEY GOVERNANCE HIGHLIGHTS Name, tenure Experience Laurie Hawkes (Chairman) Co-Founder and Former President & COO, Director since 2016 American Residential Properties 50-60 Chairman since 2021 Former President, U.S. Realty Advisors, LLC 22% 33% 4
Slide 31: Corporate Responsibility
CORPORATE RESPONSIBILITY Commitment to Corporate Responsibility We are committed to being a responsible corporate citizen by conducting our operations in a sustainable and ethical manner. We strive to foster a culture that is inclusive, collaborative, and based on trust, and invest heavily in the he
Slide 32: Appendix
APPENDIX Broadstone Net Lease, Inc. | NYSE: BNL
Slide 33: GAAP Reconciliations
GAAP RECONCILIATIONS FUNDS FROM OPERATIONS (FFO), CORE FFO, AND ADJUSTED FUNDS FROM OPERATIONS (AFFO) Three Months Ended September 30, June 30, (in thousands) 2024 2024 Net income $ 37,268 $ 35,937 Real property depreciation and amortization 37,932 37,320 Gain on sale of real estate (2,441) (3,384)
Slide 34: GAAP Reconciliations
GAAP RECONCILIATIONS EBITDA, EBITDAre, ADJUSTED EBITDAre, NET DEBT TO ANNUALIZED ADJUSTED EBITDAre As of (in thousands) September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Debt Unsecured revolving credit facility $ 125,482 $ 79,096 $ 73,820 $ 90,434 $ 74,060 Unsecure
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