Broadstone Net Lease, Inc. · NYSE:BNL
Broadstone Net Lease — Investor Presentation (February 2025)
32 slides from Broadstone Net Lease's investor presentation, February 2025
Slide 1: Investor Presentation
February 2025 Investor Presentation Broadstone Net Lease, Inc. | NYSE: BNL
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 3 INVESTOR PRESENTATION FEBRUARY 2025
Slide 4: Broadstone At-a-Glance
BROADSTONE AT-A-GLANCE $395.5 Million 39.4 Million Annualized Base Rent Rentable Square Footage 59.6% Industrial 31.2% Retail 99.1% Occupancy 1 9.2% Other 99.2% 10.2 Years WALT 2 Rent Collections in Q4 2.0% Annual Escalation 94.2% Financial Reporting3,4 765 Properties $404.8 Million 2024 Investments
Slide 5: Investment Strategy
INVESTMENT STRATEGY 5 INVESTOR PRESENTATION FEBRUARY 2025
Slide 6: Investment Thesis
INVESTMENT THESIS Established REIT with Longstanding Track Record of Success Delivering Shareholder Value 15+ year operating history pursuing a diversified net lease strategy with a leading team, now proven through two cycles Publicly traded on the NYSE (BNL) with experience operating under subs
Slide 7: 'Core Building Blocks' of AFFO Growth
‘CORE BUILDING BLOCKS’ OF AFFO GROWTH Differentiated strategy compared to triple-net peers focused on driving long-term sustainable growth EMBEDDED SAME - REVENUE GENERATING BUILD-TO-SUIT CURRENT YIELDING 1 STORE NOI GROWTH 2 CAPITAL EXPENDITURES 3 DEVELOPMENTS 4 ACQUISITION ACTIVITY Existing port
Slide 8: Build-to-Suit Pipeline Economics & Timing
BUILD-TO-SUIT PIPELINE ECONOMICS & TIMING Rent Total Investment % Initial Yield Straight line Term Annual Rent Tenant Developer Project Commencement ($, mm) Funded (Inc. cap. int.) Yield (years) Increases UNFI Sansone Tri-climate, cross-docked distribution facility Sept’ 24 $201.0 100% 7.2% 8.6% 15
Slide 9: Build-to-Suit Pipeline
BUILD-TO-SUIT PIPELINE Sierra Nevada (2) Southwire 7-Brew (2) Industrial Industrial Retail Building Type Manufacturing Manufacturing / DC QSR Location Dayton, OH Bremen, GA High Point, NC; Charleston, SC Two 122k sqft. airplane MRO hangars 1.2mm sqft. cross-docked distribution Two 540 sqft. drive-th
Slide 10: Proven & Disciplined Investment Approach
PROVEN & DISCIPLINED INVESTMENT APPROACH Investment activity heavily weighted to industrial opportunities given risk-adjusted returns, but maintain acquisition flexibility to execute on diversified pipeline of assets Volume ($mm) Industrial Investments 2019 – 2024 $2.3 Billion $1,032 72% of Total Vo
Slide 11: Diversified Portfolio
DIVERSIFIED PORTFOLIO 11 INVESTOR PRESENTATION FEBRUARY 2025
Slide 12: Significant Geographic Diversity
SIGNIFICANT GEOGRAPHIC DIVERSITY TOTAL PROPERTIES: 765 TOTAL STATES/PROVINCES: 44 + 4 Canadian provinces ABR as a % of State Total Portfolio 1 TX 9.6% 2 MI 9.2% 3 FL 6.5% 4 CA 6.1% 5 IL 5.8% 6 WI 4.9% 7 OH 4.2% 8 MN 4.0% 9 TN 3.8% 10 IN 3.6% Top 10 States 57.7% Data as of December 31, 2024 12 INVEST
Slide 13: Portfolio Diversification
PORTFOLIO DIVERSIFICATION TOP 20 TENANTS PROPERTY TYPE DIVERSIFICATION (BY ABR) ABR as a # of Tenant Property Type % of Total Properties Portfolio Roskam Foods* Industrial / Other 7 4.1% UNFI Industrial 1 3.5% Industrial 59.6% Manufacturing 17.7% AHF Products* Industrial 8 2.4% Distribution & Wareho
Slide 14: Cross-Diversification
CROSS-DIVERSIFICATION Geographic, Property Type, and Industry Diversification helps mitigate state specific risk STATE EXPOSURE AT-A-GLANCE State: Texas ($ in millions) Dallas Concentration: 1 $6.2 Houston $1.1 ABR: % | $ 9.6% | $37.8mm $12.1 Austin $1.4 Tenants: 36 Sherman $1.5 $37.8mm Properties:
Slide 15: Top 10 Tenant Descriptions
TOP 10 TENANT DESCRIPTIONS TENANT BUSINESS DESCRIPTION Founded in 1923 and headquartered in Grand Rapids, Michigan, Roskam Baking Company is a food manufacturer with over 2 million square feet of manufacturing space and over 30 manufacturing and packaging lines. Roskam manufactures a diverse product
Slide 16: Top 10 Tenant Descriptions (Cont.)
TOP 10 TENANT DESCRIPTIONS (CONT.) TENANT BUSINESS DESCRIPTION For 85 years, Tractor Supply Company (NASDAQ: TSCO) has operated hardware store locations, selling lawn care supplies, power tools, fencing, irrigation system parts, and more. Tractor Supply Company operates nearly 2,300 stores across 49
Slide 17: Portfolio At-a-Glance: Industrial
PORTFOLIO AT-A-GLANCE: INDUSTRIAL PROPERTY TYPE BREAKDOWN PROPERTY TYPE OVERVIEW 210 $236mm 31.9mm Properties ABR SF Cold Storage 4.3% Industrial Services 6.3% 102 2.1% Wtd. Avg. 11.0 Years Manufacturing Tenants Rent Escalations WALT Flex and 29.6% R&D 9.4% Industrial exposure has grown from 31.2% a
Slide 18: Recently Completed Build-to-Suit Development: UNFI
Sourcing Initial Cash Yield Off-Market - Direct 7.2% Total Funded Amount1 Straight Line Yield $200.1 Million 8.6% Annual Base Rent1 Initial Lease Term $14 Million 15 years Recently Completed Size Annual Rent Escalation Tenant: 1 Million SF; 114 2.5% Build-to-Suit Development United Natural Foods, In
Slide 19: Portfolio At-a-Glance: Retail
PORTFOLIO AT-A-GLANCE: RETAIL PROPERTY TYPE BREAKDOWN PROPERTY TYPE OVERVIEW 520 $123mm 5.7mm Quick Service Properties ABR SF Restaurant, 21.6% Automotive, 9.8% Animal 82 1.7% Wtd. Avg. 10.2 Years Services, 9.2% Tenants Rent Escalations WALT Home 31.2% Furnishings, ABR 6.0% Healthcare Casual Service
Slide 20: Top-Tier Portfolio Metrics
TOP-TIER PORTFOLIO METRICS RENT COLLECTION RENT ESCALATION 1 1 1 99.9% 99.2% 99.0% 99.0% 99.1% 99.2% Contractual Fixed Increases 2.4% 85.3% 2.1% Portfolio, 2.0% 1.7% CPI- Related 12.1% Flat 2.6% Other Industrial Retail Q3 Q4 Q1 Q2 Q3 Q4 79.5% Leases with 2023 2024 Annual Increases LONG WALT WITH MIN
Slide 21: Top-Tier Portfolio Metrics
TOP-TIER PORTFOLIO METRICS Portfolio composition and underlying metrics rank toward the top of the net lease space INDUSTRIAL EXPOSURE WEIGHTED AVERAGE LEASE TERM REMAINING 64.0% 14.0 59.6% 12.3 10.2 10.2 9.9 9.8 9.3 7.9 7.3 14.5% 3.5% 0.0% 0.0% 0.0% 0.0% 0.0% PORTFOLIO RENT ESCALATIONS LEASE ROLLOV
Slide 22: Attractive Relative Valuation
ATTRACTIVE RELATIVE VALUATION 2025E AFFO MULTIPLE DIVIDEND YIELD Discounted valuation despite company’s Dividend Yield of 7.3% performance and differentiated strategy 16.9x 16.6x 7.3% 15.7x Peer Average, 13.8x 6.1% 6.0% 5.9% 5.8% 12.6x 12.6x 5.7% 13.1x 12.1x Peer Average, 5.3% 11.1x 10.9x 5.1% 4.4%
Slide 23: Balance Sheet Management
BALANCE SHEET MANAGEMENT 23 INVESTOR PRESENTATION FEBRUARY 2025
Slide 24: Well Capitalized Balance Sheet
WELL CAPITALIZED BALANCE SHEET Investment grade rated balance sheet with well-laddered maturities and strong liquidity TOTAL CAPITALIZATION DETAIL TOTAL CAPITALIZATION ON December 31, 2024 ($ in thousands) December 31, 2024 1.5% 1.8% Equity Common Stock Common Stock 188,626 16.8% OP Units OP Units 8
Slide 25: Emphasis Placed on Liquidity
EMPHASIS PLACED ON LIQUIDITY Conservative leverage profile & ample liquidity to navigate current and future economic uncertainly KEY CREDIT METRICS AS OF DECEMBER 31, 2024 PRO FORMA LEVERAGE PROFILE EVOLUTION2 Net Debt / Annualized Adj. EBITDAre 4.9x 4.3x BBB / Baa2 Pro Forma Net Debt / Annualized A
Slide 26: Corporate Governance
CORPORATE GOVERNANCE 26 INVESTOR PRESENTATION FEBRUARY 2025
Slide 27: Board of Directors & Governance
BOARD OF DIRECTORS & GOVERNANCE BOARD OF DIRECTORS KEY GOVERNANCE HIGHLIGHTS Name, tenure Experience Laurie Hawkes (Chairman) Co-Founder and Former President & COO, Director since 2016 American Residential Properties 50-60 Chairman since 2021 Former President, U.S. Realty Advisors, LLC 28% 27% 4
Slide 28: Corporate Responsibility
CORPORATE RESPONSIBILITY Commitment to Corporate Responsibility We are committed to being a responsible corporate citizen by conducting our operations in a sustainable and ethical manner. We strive to foster a culture that is inclusive, collaborative, and based on trust, and invest heavily in the he
Slide 29: Appendix
APPENDIX Broadstone Net Lease, Inc. | NYSE: BNL
Slide 30: Remaining Portfolio: Other
REMAINING PORTFOLIO: OTHER PROPERTY TYPE BREAKDOWN PROPERTY TYPE OVERVIEW 35 $36mm 1.7mm Properties ABR SF Clinical, 34.9% 28 2.4% Wtd. Avg. 5.0 Years Tenants Rent Escalations WALT 9.2% ABR Office, 65.1% TOP TENANTS OTHER NON-CORE ASSETs Rank Tenant Property Use # Prop. ABR ($M) % ABR Includes rem
Slide 31: GAAP Reconciliations: FFO, Core FFO and AFFO
GAAP RECONCILIATIONS FUNDS FROM OPERATIONS (FFO), CORE FFO, AND ADJUSTED FUNDS FROM OPERATIONS (AFFO) Three Months Ended December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Net income $ 27,607 $ 37,268 $ 35,937 $ 68,177 $ 6,797 Real property depreciation and amortizat
Slide 32: GAAP Reconciliations: EBITDAre and Net Debt
GAAP RECONCILIATIONS EBITDA, EBITDAre, ADJUSTED EBITDAre, NET DEBT TO ANNUALIZED ADJUSTED EBITDAre As of (in thousands) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Debt Unsecured revolving credit facility $ 93,014 $ 125,482 $ 79,096 $ 73,820 $ 90,434 Unsecured
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