Broadstone Net Lease, Inc. · NYSE:BNL
Broadstone Net Lease — Q2 2018 Earnings Presentation
29 slides from Broadstone Net Lease's earnings presentation, Aug 10, 2018
Slide 1: Q2 2018 Quarterly Supplemental Information
Q2 2018 QUARTERLY SUPPLEMENTAL INFORMATION Broadstone Net Lease, Inc. is a publicly reporting, privately offered Real Estate Investment Trust (REIT) that acquires and holds freestanding, single-tenant, net-leased commercial properties. www.broadstone.com
Slide 2: Table of Contents
Table of Contents Section Page
Slide 3: About the Data
About the Data This data and other information described herein are as of and for the three months ended June 30, 2018 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 be
Slide 4: Company Overview
Company Overview Broadstone Net Lease, Inc. is an externally managed REIT, formed as a Maryland corporation in 2007 to acquire and hold single-tenant, net-leased commercial real estate properties throughout the United States that are leased to the properties’ operators under long-term leases. We foc
Slide 5: Slide 5
Slide 6: Quarterly Financial Summary
Quarterly Financial Summary (unaudited, dollars in thousands, except per share data) Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Financial Summary Investment in rental property, net $ 2,415,399 $ 2,293,548 $ 2,227,758 $ 1,933,320 $ 1,816,900 Total assets 2,815,258 2,681,669 2,578,756 2,244,099 2,138,177
Slide 7: Income Statement Summary
Income Statement Summary (unaudited, in thousands, except per share data) Three Months Ended June 30, March 31, December 31, September 30, June 30, Revenues Rental income from operating leases $ 53,590 $ 51,832 $ 46,603 $ 43,233 $ 41,256 Earned income from direct financing leases 1,074 Operating exp
Slide 8: Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)
Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) (unaudited, in thousands, except per share data) Three Months Ended June 30, March 31, December 31, September 30, June 30, Net income $ 18,386 $ 18,995 $ 16,826 $ 12,990 $ 15,992 Real property depreciation and amortization 20,232
Slide 9: Balance Sheet
Bal ance Sheet (unaudited, in thousands) June 30, March 31, December 31, September 30, June 30, Assets Accounted for using the operating method, net of accumulated depreciation $ 2,373,376 $ 2,251,938 $ 2,186,141 $ 1,891,708 $ 1,775,293 Accounted for using the direct financing method 42,023 41,610 4
Slide 10: Broadstone Net Lease, Inc.
BROADSTONE ma NET LEASE. INC.
Slide 11: Capitalization
(unaudited, in thousands, except per share data) EQUITY ($ in thousands, except per share amounts) Shares of Common Stock 20,239 Membership Units 1,737 Common Stock & OP Units 21,976 Price Per Share / Unit $ 83.00 IMPLIED EQUITY MARKET CAPITALIZATION $ 1,824,018 % of Total Capitalization 58.6 % DEBT
Slide 12: sor $108
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Slide 13: Debt Outstanding
Debt Outstan ding (unaudited, in thousands) Year of Maturity 2015 Unsecured Term Loan Agreement 5.5-Year Term Loan 7-Year Term Loan Revolver 2017 Senior Notes Mortgages and Notes Payable Total $ — $ — $ — $ — $ — $ 1,731 $ 1,731 325,000 — — — — 3,644 328,644 — — — — — 9,081 9,081 — — — — — 18,584 18
Slide 14: Debt Maturities and Interest Rate Exposure
Debt Maturities and Interest Rate Exposure (unaudited, dollars in millions) Debt Maturities Broadstone Net Lease utilizes diversified sources of debt capital including unsecured bank debt, private placement and secured mortgages (where appropriate).
Slide 15: Interest Rate Exposure
$325 million term loan facility depicted with extension options. Interest Rate Exposure Broadstone Net Lease uses interest rate swaps to mitigate the impact of interest rate variability. The intended net impact of the swaps is that the Company pays a fixed interest rate on its variable rate borrowin
Slide 16: Interest rate exposure not inclusive of floating rate debt
Interest rate exposure not inclusive of floating rate debt, as borrowings are short-term in nature.
Slide 17: Credit Facility and Notes Covenants
Credit Facility and Notes Covenants (unaudited) The following is a summary of key financial covenants for the Company’s unsecured credit facility. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of June 30, 2018, the Company believes it i
Slide 18: Acquisitions and Dispositions
Acquisitions (unaudited, square feet and dollars in thousands) The following table summarizes the Company’s property acquisition activity during 2018. Q1 2018 Property Type Number of Properties Square Feet ('000s) Weighted Average Lease Term (years) Acquisition Price ($'000s) Retail 20.0 $ 67,903 In
Slide 19: Portfolio at a Glance: Key Metrics
Portfolio at a Glance: Key Metrics Properties
Slide 20: Diversification: Tenants & Brands
Diversification: Tenants & Brands (unaudited, rent percentages based on contractual rent over the next twelve months) Top 20 Tenants Tenant # Properties NTM Rent ($'000s) NTM Rent as a % of Total Portfolio Square Feet ('000s) SF as a % of Total Portfolio Art Van Furniture $ 8,157 3.9 % 3.8 % Red Lob
Slide 21: Diversification: Property Type
Diversification: Property Type (unaudited, rent percentages based on contractual rent over the next twelve months)
Slide 22: Diversification: Geography
Diversification: Geography (unaudited, rent percentages based on contractual rent over the next twelve months)
Slide 23: Properties by State
TOTAL PROPERTIES: 558 TOTAL STATES: 42 State # Properties NTM Rent ($'000s) NTM Rent as a % of Total Portfolio Square Feet ('000s) SF as a % of Total Portfolio State # Properties NTM Rent ($'000s) NTM Rent as a % of Total Portfolio Square Feet ('000s) SF as a % of Total Portfolio TX $ 19,506 9.3 % 1
Slide 24: Lease Expirations
Lease Expirations (unaudited, rent percentages based on contractual rent over the next twelve months) WEIGHTED AVERAGE REMAINING LEASE TERM: 12.9 YRS
Slide 25: Lease Expiration Schedule
Expiration Year # Properties NTM Rent ($'000s) NTM Rent as a % of Total Portfolio Square Feet ('000s) SF as a % of Total Portfolio — — — % — — % 0.1 % <0.1 % 1,112 0.5 % 0.5 % 0.4 % 0.1 % 2,477 1.2 % 0.5 % 6,424 3.1 % 4.0 % 14,194 6.8 % 1,741 10.0 % 1,909 0.9 % 0.7 % 11,977 5.7 % 4.6 % 18,653 8.9 %
Slide 26: Portfolio Occupancy
Portfolio Occupancy (unaudited, based upon square feet)
Slide 27: Dividends Paid Per Share
Dividends Paid Per Share (unaudited)
Slide 28: Year-to-date total return through June 30, 2018
Year-to-date total return through June 30, 2018, assuming dividend reinvestment, was 5.79%. On August 8, 2018, the Determined Share Value of our common stock was increased 2.41%, from $83.00 to $85.00. Year-to-date total return, assuming dividend reinvestment, through August 31, 2018 is projected to
Slide 29: Important Disclosures and Definitions Regarding BNL
Important Disclosures and Definitions Regarding Broadstone Net Lease, Inc. (BNL) Not an offer to sell securities : Offers to sell interests in BNL are made exclusively through BNL’s Private Placement Memorandum (PPM). Offers, solicitations, and sales are not made in jurisdictions where not lawful or