Broadstone Net Lease, Inc. · NYSE:BNL
Broadstone Net Lease — Investor Presentation (November 2020)
26 slides from Broadstone Net Lease's investor presentation, Nov 17, 2020
Slide 1: Investor Presentation November 2020
INVESTOR PRESENTATION NOVEMBER 2020 Exhibit 99.1 BROADSTONE NET LEASE, INC.
Slide 2: Disclaimer: Cautionary Statements Concerning Forward-Looking Statements
DISCLAIMER CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS Various statements contained in this presentation, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. Forward-looking stat
Slide 3: Broadstone At-A-Glance
628 Properties 41 States 1 Canadian Province >$600 Million Annual Acquisitions 2017 - 2019 182 / 169 / 54 Tenants / Brands / Industries 2.5% Top Tenant3 18.7% Top Ten Tenants3 10.8 Years WALT 2.1% Annual Escalation 97.9% Rent Collections in Q3 94.8% Financial Reporting2 99.8% Leased1 34.2% Master Le
Slide 4: Diversified Portfolio with Best-in-Class Metrics
Thoughtfully Constructed and Diversified Portfolio with Best-in-Class Metrics Deliberate and highly granular diversified strategy with exposure to desirable net lease sectors including industrial and healthcare Significant property type and tenant diversification has acted as a proven defensive hedg
Slide 5: Longstanding operating history and track record of success
BROADSTONE NET LEASE (NYSE: BNL) Longstanding operating history and track record of success delivering results to shareholders ~30% GAV1 Growth CAGR since 2015 ACCELERATED GROWTH 1 Gross asset value “GAV” means undepreciated book value, which represents the fair value of the assets as of the date ac
Slide 6: Q3 2020 At-A-Glance
Q3 2020 AT-A-GLANCE For Three Months Ended ($ in thousands, except per share data) 9/30/2020 6/30/2020 Revenues $80,744 $80,371 Net income $9,711 $17,098 Net earnings per common share, diluted $0.08 $0.14 FFO $54,726 $56,485 FFO per share, diluted $0.44 $0.47 AFFO $47,077 $46,056 AFFO per share, dil
Slide 7: Highly Diversified by Tenant & Industry
HIGHLY DIVERSIFIED BY TENANT & INDUSTRY Industrial 44% Manufacturing 14% Distribution & Warehouse 14% Food Processing 6% Flex and R&D 6% Cold Storage 4% Office 10% Strategic Operations 5% Corporate Headquarters 3% Call Center 2% Healthcare 20% Clinical 9% Surgical 3% Animal Health Services 3% Life S
Slide 8: Targeted Property Types: Industrial and Healthcare
TARGETED PROPERTY TYPES INDUSTRIAL HEALTHCARE ABR % | $: 20% | $58mm Properties: 120 Square Feet: 2.6mm WALT: 8.4 years Avg. Annual Rent Escalation: 2.3% Clinical 44% Surgical 17% Animal Health Services 14% Life Science 13% Healthcare Services 12% Top Tenants KEY STATISTICS PROPERTY TYPE BREAKDOWN T
Slide 9: Targeted Property Types: Restaurants, Office, Retail, Other
TARGETED PROPERTY TYPES RESTAURANTS Top Tenants KEY STATISTICS ABR % | $: 16% | $45mm Properties: 240 Square Feet: 1.1mm WALT: 16.1 years Avg. Annual Rent Escalation: 1.9% QSR 55% Casual Dining 45% OFFICE ABR % | $: 10% | $29mm Properties: 17 Square Feet: 2.1mm WALT: 7.7 years Avg. Annual Rent Escal
Slide 10: Significant Geographical Diversity
SIGNIFICANT GEOGRAPHICAL DIVERSITY 10.5% (TX) 6.3% (IL) 3–6% 0.1–3% Portfolio concentration (by ABR) 628 Properties 41 States + Canada (British Columbia) As of September 30, 2020; Map is shown for U.S. only, excluding single property in Canada (British Columbia) State ABR as a % of Total Portfolio 1
Slide 11: Significant Cross-Diversification
SIGNIFICANT CROSS-DIVERSIFICATION Significant Geographic, Property Type, and Industry Diversification Helps to Mitigate State Specific Risk $30.2mm of ABR $30.2mm of ABR STATE DIVERSIFICATION BY MSA STATE DIVERSIFICATION BY INDUSTRY STATE DIVERSIFICATION BY PROPERTY TYPE State: Texas Concentration:
Slide 12: Top-Tier Portfolio Metrics
TOP-TIER PORTFOLIO METRICS WEIGHTED AVERAGE RENT ESCALATION STRONG RENT ESCLATIONS Lease Escalation Frequency Lease Escalation Provisions Flat 1.7% Other Frequencies1 10.8% Annual79.1% Flat 1.7% WALT: 10.7 8.4 16.1 7.7 11.0 11.6 Weighted Average of 2.1% LONG WEIGHTED AVERAGE LEASE DURATION WITH MINI
Slide 13: Rent Collection Summary
Q3 Uncollected Rent 2.1% Abated Rent 1.4% Deferred Rent 0.6% Bankruptcy Related 0.1% RENT COLLECTION SUMMARY Q3 Collected Rent 97.9% RENT COLLECTION PROGRESSION 95.5% 97.9% Q3 2020 October Q2 2020 98.5% Granular Diversification and Active Portfolio Management Have Yielded Top Tier Rent Collections C
Slide 14: Rent Collections by Top Tenant Industries
RENT COLLECTIONS BY TOP 20 TENANT INDUSTRIES Q3 2020 RENT COLLECTIONS FROM TOP 20 TENANT INDUSTRIES Highly Diversified Portfolio has Mitigated Property Type and Industry Specific Risk Q3 Base Rent (% Pre-Pandemic Rents) Portfolio Diversification # ABR Portfolio Industry Collected Deferred Abated Ban
Slide 15: Differentiated Investment Approach
DIFFERENTIATED INVESTMENT APPROACH Agile Investment Strategy Enables Identification of Attractive Investment Opportunities A decade plus of experience sourcing, underwriting, and managing a portfolio diversified across traditional and emerging net lease sectors Significant presence in industrial, he
Slide 16: Systematic Investment Approach
SYSTEMATIC INVESTMENT APPROACH LEASE ASSUMPTION SALE LEASEBACK FORWARD COMMITMENTS EXISTING PORTFOLIO ADD-ONs PROPERTY EXPANSIONS & Improvements EXISTING PORTFOLIO NEW OPPORTUNITIES INVESTMENT TYPE DESCRIPTION Acquire single-tenant property with a simultaneous new long-term lease with seller Maximum
Slide 17: Proven Investment Approach
% of GAV1 38.0% 26.8% 26.5% 19.3% 25.5% Acquisitions Cap Rate2 6.9% 6.8% 7.2% 6.9% 6.6% PROVEN INVESTMENT APPROACH CONSISTENT ANNUAL ACQUISITION VOLUME OF $500mm+ From 2015 - 2019 As of September 30, 2020 ¹ Gross asset value “GAV” means undepreciated book value, which represents the fair value of th
Slide 18: Attractive Pipeline of Opportunities
ATTRACTIVE PIPELINE OF OPPORTUNITIES ~$17.3bn of Deals Sourced and Reviewed YTD Well Positioned to Continue Driving Growth and Attractive Risk-Adjusted Returns RESTAURANTS & RETAIL INDUSTRIAL HEALTHCARE LOI CLOE >$600mm of Annual Acquisitions 2017-2019 Annualized Deal Flow of ~$20.0bn Acquisition pi
Slide 19: Platform Well Positioned to Continue Executing Growth Strategy
PLATFORM WELL POSITIONED TO CONTINUE EXECUTING GROWTH STRATEGY Defensive leverage profile with strong access to capital Carefully constructed platform built to sustain targeted growth levels Specialized, national sourcing model with growing pipeline of opportunities Diversified acquisition strategy
Slide 20: Well Capitalized Balance Sheet
WELL CAPITALIZED BALANCE SHEET ($ in thousands) Sept 30, 2020 Equity Common Stock 141,273 OP Units 12,226 Common Stock & OP Units 153,499 Price Per Share / Unit $16.78 Equity Market Capitalization $2,575,710 % of Total Capitalization 62.4% Debt Unsecured Revolving Credit Facility $ – Unsecured Term
Slide 21: Emphasis Placed on Liquidity
EMPHASIS PLACED ON LIQUIDITY As of September 30, 2020 1Reflects net proceeds from partial exercise of underwriters overallotment option subsequent to quarter end 2Calculated in accordance with current unsecured credit facility and unsecured term loans and senior notes 3 Net Debt / Annualized Adjuste
Slide 22: Shareholder Friendly Governance
SHAREHOLDER FRIENDLY GOVERNANCE Name, tenure Prior experience Amy L. Tait (Chairman) 13 years Founder, Broadstone Net Lease Former EVP & Director, Home Properties Inc. Christopher J. Czarnecki 3 years President & CEO, Broadstone Net Lease Joined BNL in 2009 Agha S. Khan 5 years Senior Principal, Sto
Slide 23: A Culture of Corporate Responsibility
A CULTURE OF CORPORATE RESPONSIBILITY Environmental Responsibility Social Responsibility Community Engagement Diversity Hiring Practices BNL is constantly exploring initiatives that promote sustainable environmental practices “Go Green” Initiative Subcommittee Environmental Considerations In Our Off
Slide 24: Additional Information
ADDITIONAL INFORMATION BROADSTONE NET LEASE, INC.
Slide 25: GAAP Reconciliations: FFO and AFFO
GAAP RECONCILIATIONS FUNDS FROM OPERATIONS (FFO), ADJUSTED FUNDS FROM OPERATIONS (AFFO) (1) Excludes 216 weighted average shares of unvested restricted common stock for the three months ended September 30, 2020. (2) Excludes $46 from the numerator for the three months ended September 30, 2020, relat
Slide 26: GAAP Reconciliations: EBITDA, EBITDAre, Net Debt
GAAP RECONCILIATIONS EBITDA, EBITDAre, Adjusted EBITDAre, Net Debt to Annualized Adjusted EBITDAre For the three months ended September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 Net income $ 25,038 $ 27,712 $ 11,848 $ 17,098 $ 9,711 Depreciation and amortization 28,3
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