Broadstone Net Lease, Inc. · NYSE:BNL
Broadstone Net Lease — Merger or Acquisition (November 2019)
10 slides from Broadstone Net Lease's merger presentation, Nov 22, 2019
Slide 1: Internalization Presentation
Broadstone Net Lease, Inc.Internalization Presentation Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements Cautionary Statement Regarding 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, amo
Slide 3: Internalization Impact on Organizational Structure
Existing Structure Pending Transaction Post-Transaction Structure BRE BRE BNL BRE BNL PROPERTIES EMPLOYEES CONTRACTUALFEES PAID MANAGEMENT SERVICES PROVIDED Internalization Impact on Organizational Structure EMPLOYEES REAL ESTATE 60+ EMPLOYEES REAL ESTATE 60+ EMPLOYEES Employed by BRE Servicing thre
Slide 4: Management team joining BNL
Sean Cutt | Chief Investment Officer Joined BRE in 2012 Responsible for managing acquisitions, dispositions, asset management, credit analysis, investment policy, and real estate underwriting Chris Czarnecki | Chief Executive Officer Joined BRE in 2009 Responsible for leading the overall organizatio
Slide 5: Transaction Details
Transaction Details Upfront Consideration $300 million of upfront consideration to be paid at closing, comprised of: Approximately $175 million of stock / OP units (issued at $85.00 per share) Approximately $31 million of cash paid (majority to be used by BRE employees to pay taxes) Estimated ~$94 m
Slide 6: Internalization Benefits
Internalization Benefits Financial Highlights Anticipated cash cost savings of $25M expected in the first fiscal year AFFO / share expected to be neutral in year one, solidly accretive thereafter Expected unlevered 8.4% initial yield in year one, levered IRR in the mid teens Lowers cost of capital f
Slide 7: Illustrative Impact of Internalization on Recent Acquisition
Illustrative Impact of Internalization on Recent Acquisition ($ in thousands) External Internalized Purchase Price $11,329 $11,329 Acquisition & Leasing Fee 227 - Other Closing Costs 113 113 All-In Purchase Price $11,668 $11,442 Acquisition Cap Rate 7.0% 7.0% Rental Income $793 $793 Vacancy Reserve
Slide 8: Illustrative Impact on Net Asset Value (NAV)
($ in thousands, except per share amounts) NAV component: September 30, 2019 Internalization Pro Forma Investment in rental property $4,465,457 - $4,465,457 Management Company Value - 300,000 300,000 Debt (2,180,100) (94,000) (2,274,100) Other assets and liabilities, net 4,372 (31,000) (26,628) NAV
Slide 9: Frequently Asked Questions
FREQUENTLY ASKED QUESTIONS 200 Gente Net ese, eA saved. United 192018
Slide 10: In Summary
In Summary IMMEDIATE COST SAVINGS of over $25 million in the first year, equating to an expected initial unlevered yield on upfront consideration of 8.4% and a levered IRR in the mid teens 1 2 3 4 ECONOMIES OF SCALE with significant growth potential through elimination of variable rate cost structur
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