Broadstone Net Lease, Inc. · NYSE:BNL
Broadstone Net Lease — Investor Presentation (November 2022)
23 slides from Broadstone Net Lease's investor presentation, November 2022
Slide 1: Investor Presentation November 2022
INVESTOR PRESENTATION NOVEMBER 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 $372 Million 36.8 Million Annualized Base Rent Rentable Square Footage 49% Industrial 18% Healthcare 14% Restaurant 12% Retail 99.3% Leased 1 7% Office 100.0% 10.7 Years WALT Rent Collections in Q3 2.0% Annual Escalation 94.1% Financial Reporting2 $204.5 Million 790 Properties
Slide 4: Investment Thesis
INVESTMENT THESIS Established REIT with Longstanding Track Record of Success ▪ 15-year operating history pursuing a diversified net lease strategy with a leading team, now proven through two cycles ▪ Publicly traded on the NYSE (BNL) with experience operating under substantially all public company r
Slide 5: Longstanding operating history and track record of success
BROADSTONE NET LEASE (NYSE: BNL) Longstanding operating history and track record of success delivering results to shareholders ($mm) AVERAGE EMPLOYEE TENURE: 4.7 YEARS 5+ 37% $5,522 Employee Tenure 4 23% (Years) $5,397 3 13% $4,572 2 4% <2 23% $4,043 $4,037 AVERAGE SENIOR EMPLOYEE TENURE: 6.4 YEARS
Slide 6: Q3 2022 At-a-Glance
Q3 2022 AT-A-GLANCE Our Diversified Portfolio Continues to Generate Consistent Results and Steady Same-Store Growth Opportunistic Capital Markets Execution Has Allowed for External Growth via Accretive Acquisitions PORTFOLIO OVERVIEW KEY OPERATING METRICS $372 Million 790 36.8 Million 99.3% 100.0% A
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 49% AHF Products* Industrial 9 2.4% Manufacturing 16% Jack’s Family Restaurants* Restaurants 43 1.9% Distribution & Warehou
Slide 8: Portfolio Property Types: Industrial and Healthcare
PORTFOLIO PROPERTY TYPES TOP INDUSTRIAL TENANTS KEY STATISTICS PROPERTY TYPE BREAKDOWN ABR % | $: 49% | $182mm Industrial Services Cold Storage 6% 7% Manufacturing Properties: 185 33% Flex and R&D Square Feet: 27.6mm 9% 49% WALT: 11.2 years ABR Food Processing 16% Wtd Avg. Annual 2.0% Rent Escalatio
Slide 9: Portfolio Property Types: Restaurant, Retail, Office
PORTFOLIO PROPERTY TYPES TOP TENANTS KEY STATISTICS PROPERTY TYPE BREAKDOWN ABR % | $: 14% | $52mm RESTAURANT Properties: 250 QSR Square Feet: 1.2mm Casual 14% 47% Dining WALT: 14.8 years ABR 53% Wtd Avg. Annual 1.8% Rent Escalation: Home Furnishings ABR % | $: 12% | $43mm 16% General Properties: 20
Slide 10: Significant Geographic Diversity
SIGNIFICANT GEOGRAPHIC DIVERSITY TOTAL PROPERTIES: 790 TOTAL STATES/PROVINCES: 44 + 4 Canadian provinces ABR as a % of State Total Portfolio 1 TX 10.6% 2 IL 6.4% 3 WI 5.6% 4 OH 4.8% 5 MI 4.6% 6 FL 4.3% 7 CA 4.2% 8 IN 4.2% 9 MN 4.2% 10 TN 4.1% Top 10 States 53.0% As of September 30, 2022, rent percen
Slide 11: Significant Cross-Diversification
SIGNIFICANT CROSS-DIVERSIFICATION Significant Geographic, Property Type, and Industry Diversification Helps to Mitigate State Specific Risk STATE EXPOSURE AT-A-GLANCE ($ in millions) State: Texas Dallas Concentration: 1 $1.0 $5.8 Houston $1.0 ABR: % | $ 10.6% | $39.3mm Austin $14.6 Tenants: 38 Sherm
Slide 12: Top-Tier Portfolio Metrics
TOP-TIER PORTFOLIO METRICS RENT COLLECTION RENT ESCALATION 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 2.5% Contractual Fixed Increases 2.2% 84.7% 2.0% 1.8% 1.6% CPI- Related 12.5% Flat 2.8% Healthcare Office Restaurant Retail Industrial Q2 Q3 Q4 Q1 Q2 Q3 78.5% Leases with 2021 2022 Annual Increases L
Slide 13: Differentiated Investment Approach
DIFFERENTIATED INVESTMENT APPROACH Agile Investment Strategy Enables Identification of Attractive Investment Opportunities Diversified Core Attractive Capital Proven Property Sectors Allocation Investment Strategy ▪ A decade plus of experience ▪ Flexibility to identify adjacent property ✔ Increased
Slide 14: Systematic Investment Approach
SYSTEMATIC INVESTMENT APPROACH INVESTMENT TEAMS: INDUSTRIAL HEALTHCARE RESTAURANT / RETAIL CURRENT BROKERAGE DEVELOPMENT TENANT PRIVATE SOURCING CHANNELS: UPREIT OWNERS NETWORK PARTNERS RELATIONSHIPS EQUITY INVESTMENT TYPE DESCRIPTION SALE ◼ Acquire single-tenant property with a simultaneous new lon
Slide 15: Proven Investment Approach
PROVEN INVESTMENT APPROACH Long-Standing Diversified Strategy Provides Acquisition Flexibility from Year to Year Without Dramatically Influencing Overall Portfolio Concentration Guidance Volume ($mm) $1,032 Range: $1,000 Industrial $900 Healthcare Closed in Q4 / $305 Properties $684 Under Control $6
Slide 16: Conservative Balance Sheet Management & Prudent Capital Allocation
Conservative Balance Sheet Management & Prudent Capital Allocation 1 Defensive leverage profile with broad access to diversified capital sources 2 Carefully constructed platform built to deliver accretive external growth 3 Specialized, national sourcing model with robust pipeline of opportunities 4
Slide 17: Well Capitalized Balance Sheet
WELL CAPITALIZED BALANCE SHEET Investment Grade Credit Rated Balance Sheet with Well Laddered Maturities and Strong Liquidity TOTAL CAPITALIZATION DETAIL TOTAL CAPITALIZATION ON SEPTEMBER 30, 2022 ($ in thousands) September 30, 2022 4.5% 1.9% Equity Common Stock Common Stock 173,115 OP Units 17.3% O
Slide 18: 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 SEPTEMBER 30, 2022 LEVERAGE PROFILE EVOLUTION3 Forward Equity Proceeds Outstanding 1 5.5x / 4.8x 3.9x BBB / Baa2 Pro Forma Net Debt / Annualized A
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: Board of Directors & Governance
BOARD OF DIRECTORS & GOVERNANCE 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 since 2021 ✓A
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 September 30, June 30, (in thousands) 2022 2022 Net income $ 28,709 $ 35,552 Real property depreciation and amortization 39,366 35,479 Gain on sale of real estate (61) (4,071) Pro
Slide 23: GAAP Reconciliations: EBITDAre and Net Debt
GAAP RECONCILIATIONS EBITDA, EBITDAre, Adjusted EBITDAre, Net Debt to Annualized Adjusted EBITDAre As of (in thousands) September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 Debt Unsecured revolving credit facility $ 219,537 $ 320,657 $ 266,118 $ 102,000 $ — Unsecured
Broadstone Net Lease — Investor Presentation (November 2022) on 6ix