Broadstone Net Lease, Inc. · NYSE:BNL
Broadstone Net Lease — Q4 2024 Earnings Presentation
33 slides from Broadstone Net Lease's earnings presentation, Feb 20, 2025
Slide 1: Q4 2024 Quarterly Supplemental Information
Q4 2024 QUARTERLY SUPPLEMENTAL INFORMATION Broadstone Net Lease, Inc. (NYSE: BNL) is an industrial- focused, diversified net lease real estate investment trust (REIT) that invests in single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of te
Slide 2: Table of Contents
Table of Contents Section Page About the Data 3 Company Overview 4 Quarterly Financial Summary 5 Balance Sheet 6 Income Statement Summary 7 Funds From Operations (FFO), Core Funds From Operations (Core FFO), and Adjusted Funds From Operations (AFFO) 8 Lease Revenues Detail 9 Capital Structure 10 Equ
Slide 3: About the Data
About the Data This data and other information described herein are as of and for the three months ended December 31, 2024 unless otherwise indicated. Future performance may not be consistent with past performance and is subject to change and inherent risks and uncertainties. This information should
Slide 4: Company Overview
Company Overview Broadstone Net Lease, Inc. (NYSE:BNL) (the “Company”, “BNL”, “us”, “our”, and “we”) is an industrial-focused, diversified net lease real estate investment trust (“REIT”) that invests in primarily single-tenant commercial real estate properties that are net leased on a long-term basi
Slide 5: Quarterly Financial Summary
Quarterly Financial Summary (unaudited, dollars in thousands except per share data) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Financial Summary Investment in rental property $ 4,994,057 $ 5,018,626 $ 4,840,961 $ 4,666,969 $ 4,915,911 Less accumulated depreciation (672,478 ) (644,214 ) (627,871 ) (606,
Slide 6: Balance Sheet
Balance Sheet (unaudited, in thousands) December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Assets Accounted for using the operating method: Land $ 778,826 $ 784,545 $ 773,224 $ 724,199 $ 748,529 Land improvements 357,142 357,090 324,138 316,170 328,746 Buildings and
Slide 7: Income Statement Summary
Income Statement Summary (unaudited, in thousands except per share data) Three Months Ended December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Revenues Lease revenues, net $ 112,130 $ 108,397 $ 105,907 $ 105,366 $ 105,000 Operating expenses Depreciation and amortizat
Slide 8: FFO, Core FFO, and AFFO
Funds From Operations (FFO), Core Funds From Operations (Core FFO), and Adjusted Funds From Operations (AFFO) (unaudited, in thousands except per share data) Three Months Ended December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Net income $ 27,607 $ 37,268 $ 35,937 $
Slide 9: Lease Revenues Detail
Lease Revenues Detail (unaudited, in thousands) Three Months Ended December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Contractual rental amounts billed for operating leases $ 98,193 $ 96,596 $ 95,736 $ 97,549 $ 97,182 Adjustment to recognize contractual operating lea
Slide 10: Capital Structure
Capital Structure (in thousands, except per share data) EQUITY Shares of Common Stock 188,626 OP Units 8,646 Common Stock & OP Units 197,272 Price Per Share / Unit at December 31, 2024 $ 15.86 IMPLIED EQUITY MARKET CAPITALIZATION $ 3,128,727 % of Total Capitalization 62.0 % DEBT Unsecured Revolving
Slide 11: Equity Rollforward
Equity Rollforward (in thousands) Shares of Total Diluted Common Stock OP Units Shares Balance, January 1, 2024 187,614 8,928 196,542 Grants of restricted stock awards - employees 778 — 778 Vesting of performance-based restricted stock units – employees 44 — 44 Retirement of common shares under equi
Slide 12: Debt Outstanding
Debt Outstanding (in thousands) December 31, December 31, 2024 2023 Interest Rate Maturity Date Unsecured revolving credit facility $ 93,014 $ 90,434 Applicable reference rate Mar. 20264 + 0.85%1 Unsecured term loans: one-month adjusted SOFR + 2026 Unsecured Term Loan 400,000 400,000 1.00%2 Feb. 202
Slide 13: Interest Rate Swaps
Interest Rate Swaps (dollars in thousands) December 31, 2024 Fixed Notional Fair Counterparty Maturity Date1 Rate2 Variable Rate Index Amount Value Effective Swaps: Bank of Montreal January 2025 1.91 % daily compounded SOFR $ 25,000 $ 2 Truist Financial Corporation April 2025 2.20 % daily compounded
Slide 14: EBITDA, EBITDAre, and Other Non-GAAP Operating Measures
EBITDA, EBITDAre, and Other-Non GAAP Operating Measures (unaudited, in thousands) Three Months Ended December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Net income $ 27,607 $ 37,268 $ 35,937 $ 68,177 $ 6,797 Depreciation and amortization 42,987 38,016 37,404 37,772 39
Slide 15: Net Debt Metrics & Covenants
Net Debt Metrics (in thousands) December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Debt Unsecured revolving credit facility $ 93,014 $ 125,482 $ 79,096 $ 73,820 $ 90,434 Unsecured term loans, net 897,201 896,887 896,574 896,260 895,947 Senior unsecured notes, net 846
Slide 16: Debt Maturities and Swap Maturities
Debt Maturities (dollars in millions) The Company utilizes diversified sources of debt capital including unsecured bank debt, unsecured notes, and secured mortgages (where appropriate). Weighted Average Debt Maturity: 3.6 years1 1 Our Revolving Credit Facility reflected above assumes exercise of two
Slide 17: Investment Activity
Investment Activity (square feet and dollars in thousands) The following tables summarize the Company’s investment activity during 2024. Q4 2024 Q3 2024 Q2 2024 Q1 2024 YTD 2024 Acquisitions: Number of transactions — 2 6 — 8 Number of properties — 2 21 — 23 Square feet — 357 1,094 — 1,451 Acquisitio
Slide 18: Transitional Capital & Build-to-Suit Development Projects
Transitional Capital The following table summarizes the Company’s transitional capital investments, which are excluded from real estate investment portfolio statistics: Q4 2024 Transitional Capital: Type Preferred Equity Investment (’000s)1 $ 52,200 Stabilized cash capitalization rate2 8.0 % Annuali
Slide 19: Dispositions
Dispositions (square feet and dollars in thousands) The following table summarizes the Company’s property disposition activity during 2024. Q1 2024 Number of Acquisition Disposition Net Book Property Type Properties Square Feet Price Price Value Other 37 706 $ 250,079 251,700 $ 199,098 Total Propert
Slide 20: Portfolio at a Glance: Key Metrics
Portfolio at a Glance: Key Metrics1 December September December 31, 30, June 30, March 31, 31, 2024 2024 2024 2024 2023 Properties 765 773 777 759 796 U.S. States 44 44 44 44 44 Canadian Provinces 4 4 4 4 4 Total annualized base rent $395.5M $398.2M $385.5M $374.1M $392.2M Total rentable square foot
Slide 21: Diversification: Tenants & Brands
Diversification: Tenants & Brands Top 20 Tenants ABR as a SF as a % of Square % of # of ABR Total Feet Total Tenant Property Type Properties (’000s) Portfolio (’000s) Portfolio Roskam Baking Company, LLC* Food Processing 7 $ 16,236 4.1 % 2,250 5.7 % United Natural Foods, Inc. Distribution & Warehous
Slide 22: Top Tenant Descriptions
Top 20 Tenant Descriptions1 BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2025 Broadstone Net Lease, LLC. All rights reserved. 22
Slide 23: Top Tenant Descriptions (continued)
Top 20 Tenant Descriptions1 (continued) BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2025 Broadstone Net Lease, LLC. All rights reserved. 23
Slide 24: Top Brands
Top 20 Brands ABR as a SF as a % of Square % of # of ABR Total Feet Total Brand Property Type Properties (’000s) Portfolio (’000s) Portfolio Roskam Baking Company, Food Processing 7 16,236 4.1 % 2,250 5.7 % LLC* United Natural Foods, Inc. Distribution & Warehouse 1 13,680 3.5 % 1,016 2.6 % AHF Produ
Slide 25: Diversification: Property Type
Diversification: Property Type (rent percentages based on ABR) BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2025 Broadstone Net Lease, LLC. All rights reserved. 25
Slide 26: Diversification: Property Type (continued)
Diversification: Property Type (continued) ABR as a % SF as a % ABR of Total Square Feet of Total Property Type # of Properties (’000s) Portfolio (’000s) Portfolio Industrial Manufacturing 80 $ 69,835 17.7 % 12,319 31.3 % Distribution & Warehouse 49 69,247 17.5 % 10,446 26.6 % Food Processing 34 49,
Slide 27: Key Statistics by Property Type
Key Statistics by Property Type Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Industrial Number of properties 210 207 206 197 197 Square feet (000s) 31,898 31,898 30,602 29,980 29,921 Weighted average lease term (years) 11.0 11.1 11.0 11.3 11.5 Weighted average annual rent escalation 2.1 % 2.1 % 2.0 % 2.0
Slide 28: Diversification: Tenant Industry
Diversification: Tenant Industry ABR as a % SF as a % # of ABR of Total Square Feet of Total Industry Properties (’000s) Portfolio (’000s) Portfolio Restaurants 257 $ 54,839 13.9 % 1,231 3.1 % Packaged Foods & Meats 35 48,033 12.1 % 5,541 14.1 % Food Distributors 7 26,576 6.7 % 2,534 6.4 % Healthcar
Slide 29: Diversification: Geography
Diversification: Geography (rent percentages based on ABR) ABR as SF as a ABR as SF as a a % of Square % of a % of Square % of State / # of ABR Total Feet Total State / # of ABR Total Feet Total Province Properties (’000s) Portfolio (’000s) Portfolio Province Properties (’000s) Portfolio (’000s) Por
Slide 30: Lease Expirations
Lease Expirations (rent percentages based on ABR) SF as a % of # of ABR ABR as a % of Square Feet Total Expiration Year Properties # of Leases ('000s) Total Portfolio ('000s) Portfolio 2025 15 16 $ 4,680 1.2 % 251 0.6 % 2026 23 24 $ 11,793 3.0 % 915 2.3 % 2027 28 30 $ 25,762 6.5 % 2,257 5.7 % 2028 2
Slide 31: Occupancy
Occupancy Occupancy by Rentable Square Footage Change in Occupancy Number of properties Vacant properties at January 1, 2024 2 Lease expirations1 3 Leasing activities (2 ) Vacant dispositions — Vacant properties at March 31, 2024 3 Lease expirations1 1 Leasing activities — Vacant dispositions (1 ) V
Slide 32: Definitions and Explanations
Definitions and Explanations Adjusted NOI, Annualized Adjusted NOI, Adjusted Cash NOI and Annualized Adjusted Cash NOI: Our reported results and net earnings per diluted share are presented in accordance with accounting principles generally accepted in the United States of America (GAAP). Adjusted N
Slide 33: Definitions and Explanations (continued)
Definitions and Explanations (continued) Gross Debt: We define Gross Debt as total debt plus debt issuance costs and original issuance discount. Net Debt: Net Debt is a non-GAAP financial measure. We define Net Debt as our Gross Debt less cash and cash equivalents and restricted cash. Occupancy: Occ