Broadstone Net Lease Provides First Quarter 2024 Business Update

Broadstone Net Lease, Inc. (NYSE: BNL) (“Broadstone,” “BNL,” the “Company,” “we,” “our,” or “us”), today provided a business update for the quarter ended March 31, 2024. Additionally, the Company announced that it will be participating in the Morgan Stanley Triple Net REIT Day on April 9, 2024.

Q1 2024 BUSINESS UPDATE

• During the first quarter, we invested $40.1 million, including $37.1 million in development fundings and $3.0 million in revenue generating capital expenditures. The development fundings primarily relate to our previously disclosed state-of-the-art one million square foot tri-climate distribution facility in Sarasota, Florida, which is expected to open in the third quarter of 2024. The facility will be leased to UNFI pursuant to a 15-year net lease with multiple renewal options and 2.50% annual rent escalations. The stabilized yield upon completion is estimated to be approximately 7.2%, and together with rent escalations will translate into a GAAP capitalization rate of approximately 8.3%. The revenue generating capital expenditures had a weighted average initial cash capitalization rate of 8.0%, lease term of 8.0 years, and annual rent increase of 2.5%.
• Through the date of this release, we have $282.7 million of committed investments, including $202.8 million in acquisitions under control, $74.1 million of commitments to fund developments, and $5.8 million of commitments to fund revenue generating capital expenditures with existing tenants. The $202.8 million in acquisitions under control, which we define as under contract or executed letter of intent, include $105.7 million in industrial properties and $97.1 million in retail and restaurant properties. $149.5 million of the acquisitions are off-market deals sourced directly through developer and other relationships. We anticipate these acquisitions will close during April and May of 2024.
• During the first quarter, we sold 37 clinically-oriented healthcare properties for gross proceeds of $251.7 million at a weighted average capitalization rate of 7.9%. The properties represented approximately 48% of our clinically-oriented healthcare portfolio and had a weighted average remaining lease term of 4.4 years. As a result of the sale, our healthcare portfolio decreased to 13.4% of ABR at March 31, 2024. Our industrial, restaurant, retail, and office portfolio represented 54.2%, 14.2%, 11.9%, and 6.3%, respectively, of ABR at March 31, 2024.
• During the first quarter, we collected 99.0% of base rents due for all properties under lease, and our portfolio was 99.2% leased based on rentable square footage, with only three of our 759 total properties vacant and not subject to a lease as of quarter end.

MANAGEMENT COMMENTARY