Broadstone Net Lease, Inc.

What they do

BNL invests in single-tenant commercial real estate net leased on a long-term basis, with tenants generally retaining operational control of properties while BNL owns the real estate. As of December 31, 2025, the portfolio included 771 properties, 764 in 44 U.S. states and seven in four Canadian provinces, totaling approximately 41.6 million rentable square feet. The portfolio was approximately 99.8% leased with an ABR weighted average remaining lease term of approximately 9.6 years, excluding renewal options, and was occupied by 206 commercial tenants operating 197 distinct brands across 57 industries.

Revenue drivers

• Industrial and retail net lease rents — Rental revenue from primarily single-tenant net leased properties diversified across industrial and retail property types, with meaningful concentrations in distribution and warehouse, manufacturing, food processing, general merchandise, quick service restaurants, and casual dining. Annual revenue was $454.1M in 2025.
• Contractual rent escalations — Approximately 97.6% of leases have contractual rent escalations, with an ABR weighted average increase of 2.1%, providing embedded same-store NOI growth.
• Property acquisitions — In 2025, BNL invested $429.9 million in new property acquisitions at a 7.0% weighted average initial cash capitalization rate and an 8.4% weighted average straight-line yield, with a weighted average remaining lease term of 14.2 years.
• Build-to-suit developments — In 2025, BNL invested $209.3 million in build-to-suit developments and $100.8 million in transitional capital; build-to-suit investments are a stated core growth building block.

Recent performance

For the quarter ended June 30, 2026, BNL reported revenues of $122.3 million, up from $113.0 million in the prior-year quarter, and net income of $40.3 million, or $0.21 per diluted share, a 110.0% increase year over year. AFFO was $78.2 million, or $0.39 per diluted share, up 2.6% from the previous year. Same-store rental revenue grew 2.2% year over year, and the company collected 99.9% of base rents due. For the six months ended June 30, 2026, revenues were $243.7 million versus $221.7 million for the same period in 2025.

Strategy

BNL states it expects to grow revenues and earnings through three core building blocks: embedded same-store NOI growth, build-to-suit developments, and a diversified acquisition pipeline. In 2025, the company invested $748.4 million, including $429.9 million in new acquisitions, $209.3 million in build-to-suit developments, $100.8 million in transitional capital, and $8.3 million in revenue generating capital expenditures. During the second quarter of 2026, it invested $91.5 million, including $77.3 million in build-to-suit developments and $13.5 million in transitional capital. The company also sold nine properties in Q2 2026 for $62.0 million and sold forward 2.2 million shares under its ATM program at a weighted average gross price of $20.77 for about $45.5 million.

Risks

• Single-tenant lease concentration — Single-tenant leases expose BNL to significant risks of tenant default and vacancy, which could materially and adversely affect the company.
• Limited rent growth under long-term leases — BNL has limited opportunities to increase rents under long-term leases, which could impede growth despite the 2.1% average contractual escalations.
• Interest rate and debt exposure — As of December 31, 2025, BNL had approximately $2.5 billion principal balance of indebtedness outstanding, and rising market interest rates could increase interest costs and adversely affect the stock price.
• Geographic and property-type concentration — The portfolio is concentrated in certain states and property types, and adverse developments in those markets could materially and adversely affect the company; no single geographic concentration exceeded 10.2% of ABR as of December 31, 2025.

Outlook

Management raised the midpoint of its full-year 2026 AFFO per share guidance range to $1.56, citing 2.1% in-place rent increases, a committed build-to-suit pipeline of $645 million, and sound balance sheet management. BNL announced a $303 million build-to-suit development for a Fortune 20 investment-grade tenant and, as of the earnings release date, had approximately $149.3 million in remaining estimated investments for build-to-suit developments to be funded through the fourth quarter of 2026. Subsequent to quarter-end, the company entered a new $300 million senior unsecured delayed-draw term loan maturing January 30, 2030, and amended pricing grids to reduce applicable margins by 5 basis points.