Broadstone Net Lease, Inc. · NYSE:BNL
Broadstone Net Lease — Investor Presentation (May 2022)
23 slides from Broadstone Net Lease's investor presentation, May 2022
Slide 1: Investor Presentation May 2022
INVESTOR PRESENTATION May 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 $348 Million 32.8 Million Annualized Base Rent Rentable Square Footage 46% Industrial 19% Healthcare 15% Restaurants 99.8% Leased 1 12% Retail 8% Office 100% 10.5 Years WALT Rent Collections in Q1 2.0% Annual Escalation 94.2% Financial Reporting2 $210.0 Million 752 Properties
Slide 4: Investment Thesis
INVESTMENT THESIS Established REIT with Longstanding Track Record of Success ▪ 15-year operating history pursuing a diversified net lease strategy with a leading team, now proven through two cycles ▪ Publicly traded on the NYSE (BNL) with experience operating under substantially all public company r
Slide 5: Longstanding operating history and track record of success
BROADSTONE NET LEASE (NYSE: BNL) Longstanding operating history and track record of success delivering results to shareholders ($mm) AVERAGE EMPLOYEE TENURE: 4.5 YEARS 5+ 39% Employee Tenure 4 18% $5,297 (Years) 3 13% 2 11% $4,572 $5,172 <2 19% $4,043 $4,037 AVERAGE SENIOR EMPLOYEE TENURE: 5.9 YEARS
Slide 6: Q1 2022 At-A-Glance
Q1 2022 AT-A-GLANCE Strong Start to 2022 with Solid Same-Store Portfolio Performance & External Growth Strategic Use of the ATM During Q1 Provides Flexibility for the Remainder of 2022 PORTFOLIO OVERVIEW KEY OPERATING METRICS $348 Million 752 32.8 Million 99.8% 100% Annualized Base Rent Properties S
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 46% Jack’s Family Restaurants* Restaurants 43 2.1% Manufacturing 15% Red Lobster* Restaurants 21 1.9% Distribution & Wareho
Slide 8: Portfolio Property Types: Industrial and Healthcare
PORTFOLIO PROPERTY TYPES TOP INDUSTRIAL TENANTS KEY STATISTICS PROPERTY TYPE BREAKDOWN ABR % | $: 46% | $161mm Services 5% Cold Storage 8% Manufacturing Properties: 158 32% Flex and R&D Square Feet: 23.9mm 11% 46% WALT: 10.3 years ABR Food Processing 14% Wtd Avg. Annual 2.0% Rent Escalation: Distrib
Slide 9: Portfolio Property Types: Restaurants, Retail, Office
PORTFOLIO PROPERTY TYPES TOP TENANTS KEY STATISTICS PROPERTY TYPE BREAKDOWN ABR % | $: 15% | $52mm RESTAURANTS Properties: 250 QSR Square Feet: 1.2mm Casual 15% 48% Dining WALT: 15.3 years ABR 52% Wtd Avg. Annual 1.9% Rent Escalation: Home Furnishings ABR % | $: 12% | $42mm 17% General Properties: 2
Slide 10: Significant Geographic Diversity
SIGNIFICANT GEOGRAPHIC DIVERSITY TOTAL PROPERTIES: 752 TOTAL STATES: 43 + Canada ABR as a % of State Total Portfolio 1 TX 10.5% 2 IL 6.1% 3 WI 5.7% 4 MI 4.8% 5 FL 4.7% 6 OH 4.5% 7 CA 4.5% 8 MN 3.9% 9 AZ 3.8% 10 NC 3.7% Top 10 States 52.2% As of March 31, 2022, rent percentage based on ABR 10 INVESTO
Slide 11: Significant Cross-Diversification
SIGNIFICANT CROSS-DIVERSIFICATION Significant Geographic, Property Type, and Industry Diversification Helps to Mitigate State Specific Risk STATE EXPOSURE AT-A-GLANCE STATE DIVERSIFICATION BY MSA ($ in millions) State: Texas $0.7 Concentration: 1 Dallas $4.4 $1.0 Austin ABR: % | $ 10.5% | $36.4mm Ho
Slide 12: Top-Tier Portfolio Metrics
TOP-TIER PORTFOLIO METRICS RENT COLLECTION RENT ESCALATION 100.0% 100.0% 100.0% 100.0% 2.5% Contractual Fixed Increases 2.2% 84.2% 2.0% 1.9% 1.6% CPI- Related 13.1% 99.8% Flat 2.7% Industrial Retail Office Healthcare Restaurants Q1 Q2 Q3 Q4 Q1 77.5% Leases with 2021 2022 Annual Increases LONG WALT W
Slide 13: Differentiated Investment Approach
DIFFERENTIATED INVESTMENT APPROACH Agile Investment Strategy Enables Identification of Attractive Investment Opportunities Diversified Core Attractive Capital Proven Property Sectors Allocation Investment Strategy ▪ A decade plus of experience ▪ Flexibility to identify adjacent property ✔ Increased
Slide 14: Systematic Investment Approach
SYSTEMATIC INVESTMENT APPROACH INVESTMENT TEAMS: INDUSTRIAL HEALTHCARE RESTAURANTS / RETAIL CURRENT BROKERAGE DEVELOPMENT TENANT PRIVATE SOURCING CHANNELS: UPREIT OWNERS NETWORK PARTNERS RELATIONSHIPS EQUITY INVESTMENT TYPE DESCRIPTION SALE ◼ Acquire single-tenant property with a simultaneous new lo
Slide 15: Proven Investment Approach
PROVEN INVESTMENT APPROACH Long-Standing Diversified Strategy Provides Acquisition Flexibility from Year to Year Without Dramatically Influencing Overall Portfolio Concentration Volume ($mm) $1,032 Industrial Guidance Range: $800 Healthcare $684 $655 $700 $607 Restaurants $550 $859 $206 $519 $183 $6
Slide 16: Platform Well Positioned to Continue Executing Growth Strategy
PLATFORM WELL POSITIONED TO CONTINUE EXECUTING GROWTH STRATEGY 1 Defensive leverage profile with strong access to diversified capital sources 2 Carefully constructed platform built to sustain targeted growth levels 3 Specialized, national sourcing model with robust pipeline of opportunities 4 Divers
Slide 17: Well Capitalized Balance Sheet
WELL CAPITALIZED BALANCE SHEET Investment Grade Credit Rated Balance Sheet with Well Laddered Maturities and Strong Liquidity TOTAL CAPITALIZATION DETAIL TOTAL CAPITALIZATION ON MARCH 31, 2022 ($ in thousands) March 31, 2022 4.7% 1.7% Equity Common Stock Common Stock 168,750 OP Units 14.9% OP Units
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 5.25x 5.14x 4.27x BBB / Baa2 5.06x 5.13x 5.14x Net Debt / Annualized Fixed Charge Issuer Ratings Adjusted EBITDAre Coverage Ratio1 4.76x 2.0% $788 Mi
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 a 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 March 31, December 31, (in thousands) 2022 2021 Net income $ 28,441 $ 32,226 Real property depreciation and amortization 34,259 33,451 Gain on sale of real estate (1,196) (3,732)
Slide 23: GAAP Reconciliations: EBITDAre and Net Debt
GAAP RECONCILIATIONS EBITDA, EBITDAre, Adjusted EBITDAre, Net Debt to Annualized Adjusted EBITDAre As of (in thousands) March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Debt Unsecured revolving credit facility $ 266,118 $ 102,000 $ — $ — $ 15,000 Unsecured term loans,
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