Broadstone Net Lease, Inc. · NYSE:BNL
Broadstone Net Lease — Investor Presentation (August 2022)
23 slides from Broadstone Net Lease's investor presentation, August 2022
Slide 1: Investor Presentation August 2022
INVESTOR PRESENTATION AUGUST 2022
Slide 2: Disclaimer
DISCLAIMER CAUTIONARY STATEMENTS CONCERNING 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, among other thing
Slide 3: Broadstone At-A-Glance
BROADSTONE AT-A-GLANCE $360 Million 34.4 Million Annualized Base Rent Rentable Square Footage 48% Industrial 19% Healthcare 14% Restaurant 12% Retail 99.8% Leased 1 7% Office 100.0% 10.6 Years WALT Rent Collections in Q1 2.0% Annual Escalation 94.0% Financial Reporting2 $182.4 Million 764 Properties
Slide 4: Investment Thesis
INVESTMENT THESIS Established REIT with Longstanding Track Record of Success 15-year operating history pursuing a diversified net lease strategy with a leading team, now proven through two cycles Publicly traded on the NYSE (BNL) with experience operating under substantially all public company r
Slide 5: Longstanding operating history and employee tenure
BROADSTONE NET LEASE (NYSE: BNL) Longstanding operating history and track record of success delivering results to shareholders ($mm) AVERAGE EMPLOYEE TENURE: 4.6 YEARS 5+ 38% Employee Tenure 4 19% $5,297 (Years) 3 12% 2 10% $4,572 $5,172 <2 21% $4,043 $4,037 AVERAGE SENIOR EMPLOYEE TENURE: 6.2 YEARS
Slide 6: Q2 2022 At-A-Glance
Q2 2022 AT-A-GLANCE Diversified Portfolio Remains Well Positioned For Growth Despite Challenging Market Dynamics Execution in Capital Markets and Acquisitions Allows Flexibility For Remainder of 2022 PORTFOLIO OVERVIEW KEY OPERATING METRICS $360 Million 764 34.4 Million 99.8% 100.0% Annualized Base
Slide 7: Highly Diversified by Tenant & Property Type
HIGHLY DIVERSIFIED BY TENANT & PROPERTY TYPE TOP 20 TENANTS PROPERTY TYPE DIVERSIFICATION (BY ABR) ABR as a # of Tenant Property Type % of Total Properties Portfolio Industrial 48% Jack’s Family Restaurants* Restaurant 43 2.0% Manufacturing 15% Joseph T Ryerson & Son Industrial 11 1.8% Distribution
Slide 8: Portfolio Property Types
PORTFOLIO PROPERTY TYPES TOP INDUSTRIAL TENANTS KEY STATISTICS PROPERTY TYPE BREAKDOWN ABR % | $: 48% | $171mm Services 6% Cold Storage 8% Manufacturing Properties: 166 32% Flex and R&D Square Feet: 25.3mm 10% 48% WALT: 10.8 years ABR Food Processing 14% Wtd Avg. Annual 2.0% Rent Escalation: Distrib
Slide 9: Portfolio Property Types: Restaurant, Retail, Office
PORTFOLIO PROPERTY TYPES TOP TENANTS KEY STATISTICS PROPERTY TYPE BREAKDOWN ABR % | $: 14% | $52mm RESTAURANT Properties: 247 QSR Square Feet: 1.2mm Casual 14% 48% Dining WALT: 15.0 years ABR 52% Wtd Avg. Annual 1.8% Rent Escalation: Home Furnishings ABR % | $: 12% | $43mm 16% General Properties: 20
Slide 10: Significant Geographic Diversity
SIGNIFICANT GEOGRAPHIC DIVERSITY TOTAL PROPERTIES: 764 TOTAL STATES/PROVINCES: 44 + 4 Canadian provinces ABR as a % of State Total Portfolio 1 TX 10.4% 2 IL 6.0% 3 WI 5.8% 4 MI 4.8% 5 FL 4.5% 6 OH 4.4% 7 CA 4.3% 8 IN 4.2% 9 MN 4.0% 10 TN 3.9% Top 10 States 52.3% As of June 30, 2022, rent percentage
Slide 11: Significant Cross-Diversification
SIGNIFICANT CROSS-DIVERSIFICATION Significant Geographic, Property Type, and Industry Diversification Helps to Mitigate State Specific Risk STATE EXPOSURE AT-A-GLANCE ($ in millions) State: Texas $0.7 Concentration: 1 Dallas $4.5 $1.0 Houston ABR: % | $ 10.4% | $37.5mm Austin $1.3 $14.5 Tenants: 36
Slide 12: Top-Tier Portfolio Metrics
TOP-TIER PORTFOLIO METRICS RENT COLLECTION RENT ESCALATION 100.0% 100.0% 100.0% 100.0% 100.0% 2.4% Contractual Fixed Increases 2.2% 84.4% 2.0% 1.8% 1.6% CPI- Related 12.9% Flat 2.7% Industrial Healthcare Restaurant Retail Office Q2 Q3 Q4 Q1 Q2 78.2% Leases with 2021 2022 Annual Increases LONG WALT W
Slide 13: Differentiated Investment Approach
DIFFERENTIATED INVESTMENT APPROACH Agile Investment Strategy Enables Identification of Attractive Investment Opportunities Diversified Core Attractive Capital Proven Property Sectors Allocation Investment Strategy A decade plus of experience Flexibility to identify adjacent property ✔ Increased
Slide 14: Systematic Investment Approach
SYSTEMATIC INVESTMENT APPROACH INVESTMENT TEAMS: INDUSTRIAL HEALTHCARE RESTAURANT / RETAIL CURRENT BROKERAGE DEVELOPMENT TENANT PRIVATE SOURCING CHANNELS: UPREIT OWNERS NETWORK PARTNERS RELATIONSHIPS EQUITY INVESTMENT TYPE DESCRIPTION SALE Acquire single-tenant property with a simultaneous new lon
Slide 15: Proven Investment Approach
PROVEN INVESTMENT APPROACH Long-Standing Diversified Strategy Provides Acquisition Flexibility from Year to Year Without Dramatically Influencing Overall Portfolio Concentration Volume ($mm) $1,032 Industrial Guidance Range: $800 Healthcare $684 $655 $700 $607 Restaurant $550 $859 $206 $519 $183 Clo
Slide 16: Platform Well Positioned to Continue Executing Growth Strategy
PLATFORM WELL POSITIONED TO CONTINUE EXECUTING GROWTH STRATEGY 1 Defensive leverage profile with strong access to diversified capital sources 2 Carefully constructed platform built to sustain targeted growth levels 3 Specialized, national sourcing model with robust pipeline of opportunities 4 Divers
Slide 17: Well Capitalized Balance Sheet
WELL CAPITALIZED BALANCE SHEET Investment Grade Credit Rated Balance Sheet with Well Laddered Maturities and Strong Liquidity TOTAL CAPITALIZATION DETAIL TOTAL CAPITALIZATION ON JUNE 30, 2022 ($ in thousands) June 30, 2022 1.7% 5.7% Equity Common Stock Common Stock 172,023 OP Units 15.2% OP Units 10
Slide 18: Emphasis Placed on Liquidity
EMPHASIS PLACED ON LIQUIDITY Conservative Leverage Profile & Ample Liquidity to Execute Growth Strategy KEY CREDIT METRICS LEVERAGE PROFILE EVOLUTION2 5.3x 5.3x 4.2x BBB / Baa2 Fixed Charge 5.1x 5.1x 5.1x Net Debt / Annualized Issuer Ratings Adjusted EBITDAre Coverage Ratio1 4.8x 1.8% $696 Million S
Slide 19: A Culture of Corporate Responsibility
A CULTURE OF CORPORATE RESPONSIBILITY Corporate Responsibility Has Been a Cornerstone of Broadstone Since Inception Environmental Responsibility BNL is constantly exploring initiatives that promote sustainable environmental practices “Go Green” Initiative Subcommittee Environmental Considerations In
Slide 20: Environmental, Social & Governance (ESG)
ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) BOARD OF DIRECTORS (INDEPENDENT) KEY GOVERNANCE HIGHLIGHTS Name, tenure Experience Laurie A. Hawkes (Chairman) Majority independent board Co-founder, American Residential Properties Director since 2016 Former President, U.S. Realty Advisors Chairman sinc
Slide 21: Additional Information
BROADSTONE ai NET LEASE, INC. ADDITIONAL INFORMATION
Slide 22: GAAP Reconciliations: FFO, Core FFO, AFFO
GAAP RECONCILIATIONS FUNDS FROM OPERATIONS (FFO), CORE FFO, AND ADJUSTED FUNDS FROM OPERATIONS (AFFO) Three Months Ended June 30, March 31, (in thousands) 2022 2022 Net income $ 35,552 $ 28,441 Real property depreciation and amortization 35,479 34,259 Gain on sale of real estate (4,071) (1,196) Prov
Slide 23: GAAP Reconciliations: EBITDAre and Net Debt
GAAP RECONCILIATIONS EBITDA, EBITDAre, Adjusted EBITDAre, Net Debt to Annualized Adjusted EBITDAre As of (in thousands) June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 Debt Unsecured revolving credit facility $ 320,657 $ 266,118 $ 102,000 $ — $ — Unsecured term loans,
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