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BNL Broadstone Net Lease

Filed: 1 Nov 21, 4:26pm

 

Exhibit 99.2

img213941062_0.jpg 

Q3 2021 QUARTERLY SUPPLEMENTAL INFORMATION Broadstone Net Lease, Inc. (NYSE: BNL) is a Real Estate Investment Trust (REIT) that acquires, owns, and manages single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. www.broadstone.com

 


 

Table of Contents

 

Section

Page

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About the Data

3

Company Overview

4

Quarterly Financial Summary

5

Balance Sheet

6

Income Statement Summary

7

Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)

8

EBITDA, EBITDAre, and Other Non-GAAP Operating Measures

9

Lease Revenues Detail

10

Capital Structure

11

Equity Rollforward

12

Debt Outstanding

13

Net Debt Metrics

14

Covenants

14

Debt Maturities

15

Acquisitions

16

Dispositions

17

Portfolio at a Glance: Key Metrics

18

Diversification: Tenants and Brands

19-20

Diversification: Property Type

21-22

Key Statistics by Property Type

23

Diversification: Tenant Industry

24

Diversification: Geography

25

Lease Expirations

26

Portfolio Occupancy

27

Definitions and Explanations

28-29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 2

 


 

About the Data

 

This data and other information described herein are as of and for the three months ended September 30, 2021 unless otherwise indicated. Future performance may not be consistent with past performance and is subject to change and inherent risks and uncertainties. This information should be read in conjunction with Broadstone Net Lease, Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, including the financial statements and the management's discussion and analysis of financial condition and results of operations sections.

 

Forward Looking Statements

 

Information set forth herein contains forward-looking statements, which reflect our current views regarding our business, financial performance, growth prospects and strategies, market opportunities, and market trends. Forward-looking statements include all statements that are not historical facts. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. All of the forward-looking statements herein are subject to various risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results, performance, and achievements could differ materially from those expressed in or by the forward-looking statements and may be affected by a variety of risks and other factors. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from such forward-looking statements. These factors include, but are not limited to, risks and uncertainties related to the COVID-19 pandemic and its related impacts on us and our tenants, general economic conditions, local real estate conditions, tenant financial health, and property acquisitions and the timing of these acquisitions. These and other risks, assumptions, and uncertainties are described in our filings with the SEC, which are available on the SEC’s website at www.sec.gov.

 

You are cautioned not to place undue reliance on any forward-looking statements included herein. All forward-looking statements are made as of the date of this document and the risk that actual results, performance, and achievements will differ materially from the expectations expressed or referenced herein will increase with the passage of time. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 3

 


 

Company Overview

 

Broadstone Net Lease, Inc. (NYSE:BNL) (the “Company,” “BNL,” “us,” “our” and “we”) is an internally-managed REIT, formed as a Maryland corporation in 2007 that acquires, owns, and manages primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. Since our inception, we have selectively invested in real estate across the industrial, healthcare, restaurant, retail, and office property types. We target properties with credit-worthy tenants in industries characterized by positive business drivers and trends, where the properties are an integral part of the tenants’ businesses and there are opportunities to secure long-term net leases. Through long-term net leases, our tenants are able to retain operational control of their strategically important locations, while allocating their debt and equity capital to fund their core business operations rather than real estate ownership.

 

Executive Team

Christopher J. Czarnecki

Chief Executive Officer, President, and Director

Ryan M. Albano

Executive Vice President and Chief Financial Officer

John D. Moragne

Executive Vice President and Chief Operating Officer

John D. Callan, Jr.

Senior Vice President, General Counsel, and Secretary

Michael B. Caruso

Senior Vice President, Corporate Finance & Investor Relations

Timothy D. Dieffenbacher

Senior Vice President, Chief Accounting Officer, and Treasurer

Kristen Duckles

Senior Vice President, Chief Administrative Officer

Kevin M. Fennell

Senior Vice President, Capital Markets & Credit Risk

Laurier James Lessard, Jr.

Senior Vice President, Asset Management

Roderick A. Pickney

Senior Vice President, Acquisitions

Molly Kelly Wiegel

Senior Vice President, Human Resources

Andrea T. Wright

Senior Vice President, Property Management

 

Board of Directors

Laurie A. Hawkes

Chairman of the Board

Christopher J. Czarnecki

Chief Executive Officer and President

Denise Brooks-Williams

Michael A. Coke

David M. Jacobstein

Agha S. Khan

Shekar Narasimhan

Geoffrey H. Rosenberger

James H. Waters

 

 

Company Contact Information

Michael Caruso
SVP, Corporate Finance & Investor Relations

michael.caruso@broadstone.com

585-402-7842

 

 

Transfer Agent

Computershare Trust Company, N.A.

250 Royall Street

Canton, Massachusetts 02021

800-736-3001

 

 

 

 

 

 

 

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 4

 


 

Quarterly Financial Summary

(unaudited, dollars in thousands, except per share data)

 

 

 

Q3 2021

 

 

Q2 2021

 

 

Q1 2021

 

 

Q4 2020

 

 

Q3 2020

 

Financial Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in rental property

 

$

4,110,958

 

 

$

3,954,597

 

 

$

3,794,850

 

 

$

3,734,121

 

 

$

3,666,961

 

Less accumulated depreciation

 

 

(407,354

)

 

 

(390,236

)

 

 

(369,683

)

 

 

(349,977

)

 

 

(332,057

)

Investment in rental property, net

 

 

3,703,604

 

 

 

3,564,361

 

 

 

3,425,167

 

 

 

3,384,144

 

 

 

3,334,904

 

Cash and cash equivalents

 

 

16,182

 

 

 

78,987

 

 

 

10,205

 

 

 

100,486

 

 

 

101,787

 

Restricted cash

 

 

3,895

 

 

 

8,021

 

 

 

8,145

 

 

 

10,242

 

 

 

7,200

 

Total assets

 

 

4,501,972

 

 

 

4,423,611

 

 

 

4,206,045

 

 

 

4,258,483

 

 

 

4,204,469

 

Unsecured revolving credit facility

 

 

 

 

 

 

 

 

15,000

 

 

 

 

 

 

 

Mortgage and notes payable, net

 

 

97,530

 

 

 

105,748

 

 

 

106,559

 

 

 

107,382

 

 

 

108,752

 

Unsecured term loans, net

 

 

646,458

 

 

 

910,994

 

 

 

910,732

 

 

 

961,330

 

 

 

961,115

 

Senior unsecured notes, net

 

 

843,665

 

 

 

472,637

 

 

 

472,551

 

 

 

472,466

 

 

 

472,380

 

Total liabilities

 

 

1,785,847

 

 

 

1,700,103

 

 

 

1,713,348

 

 

 

1,779,402

 

 

 

1,782,762

 

Total Broadstone Net Lease, Inc.
   stockholders' equity

 

 

2,552,004

 

 

 

2,554,653

 

 

 

2,312,532

 

 

 

2,299,105

 

 

 

2,191,794

 

Total equity (book value)

 

 

2,716,125

 

 

 

2,723,508

 

 

 

2,492,697

 

 

 

2,479,081

 

 

 

2,421,707

 

Revenues

 

 

122,777

 

 

 

84,759

 

 

 

82,698

 

 

 

82,291

 

 

 

80,744

 

General and administrative -
   other

 

 

7,628

 

 

 

7,704

 

 

 

8,864

 

 

 

8,039

 

 

 

6,418

 

Stock based compensation

 

 

924

 

 

 

951

 

 

 

1,769

 

 

 

1,193

 

 

 

796

 

General and administrative

 

 

8,552

 

 

 

8,655

 

 

 

10,633

 

 

 

9,232

 

 

 

7,214

 

Total operating expenses

 

 

76,065

 

 

 

44,452

 

 

 

47,963

 

 

 

46,078

 

 

 

57,496

 

Interest expense

 

 

15,611

 

 

 

15,430

 

 

 

16,108

 

 

 

17,123

 

 

 

18,511

 

Net income

 

 

30,522

 

 

 

22,820

 

 

 

23,960

 

 

 

17,619

 

 

 

9,711

 

Net earnings per common share,
   diluted

 

$

0.18

 

 

$

0.14

 

 

$

0.15

 

 

$

0.11

 

 

$

0.08

 

FFO

 

 

91,947

 

 

 

50,184

 

 

 

51,929

 

 

 

44,198

 

 

 

54,726

 

FFO per share, diluted

 

$

0.54

 

 

$

0.32

 

 

$

0.33

 

 

$

0.28

 

 

$

0.44

 

AFFO

 

 

55,836

 

 

 

52,024

 

 

 

49,410

 

 

 

46,894

 

 

 

47,077

 

AFFO per share, diluted

 

$

0.33

 

 

$

0.33

 

 

$

0.31

 

 

$

0.30

 

 

$

0.38

 

Net cash provided by operating
   activities

 

 

88,303

 

 

 

47,235

 

 

 

51,780

 

 

 

46,064

 

 

 

53,506

 

Net cash (used in) provided by
   investing activities

 

 

(205,667

)

 

 

(175,051

)

 

 

(67,661

)

 

 

(76,443

)

 

 

5,469

 

Net cash (used in) provided by
   financing activities

 

 

50,433

 

 

 

196,474

 

 

 

(76,497

)

 

 

32,120

 

 

 

40,170

 

Distributions declared

 

 

43,423

 

 

 

43,484

 

 

 

39,653

 

 

 

39,299

 

 

 

20,477

 

Distributions declared per diluted
   share

 

$

0.255

 

 

$

0.255

 

 

$

0.250

 

 

$

0.250

 

 

$

0.135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Properties

 

 

696

 

 

 

684

 

 

 

661

 

 

 

641

 

 

 

628

 

Rentable square feet

 

31.4M

 

 

30.2M

 

 

28.4M

 

 

28.2M

 

 

27.3M

 

Occupancy

 

 

99.8

%

 

 

99.7

%

 

 

99.7

%

 

 

99.2

%

 

 

99.8

%

Weighted average remaining
   lease term (years)

 

 

10.6

 

 

 

10.4

 

 

 

10.6

 

 

 

10.7

 

 

 

10.8

 

 

 

 

 

 

 

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 5

 


 

Balance Sheet

(unaudited, in thousands)

 

 

 

September 30,
2021

 

 

June 30,
2021

 

 

March 31,
2021

 

 

December 31,
2020

 

 

September 30,
2020

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounted for using the operating
   method, net of accumulated
   depreciation

 

$

3,674,206

 

 

$

3,534,884

 

 

$

3,395,609

 

 

$

3,354,511

 

 

$

3,304,002

 

Accounted for using the direct financing
   method

 

 

28,830

 

 

 

28,911

 

 

 

28,991

 

 

 

29,066

 

 

 

30,902

 

Accounted for using the sales type
   method

 

 

568

 

 

 

566

 

 

 

567

 

 

 

567

 

 

 

 

Investment in rental property, net

 

 

3,703,604

 

 

 

3,564,361

 

 

 

3,425,167

 

 

 

3,384,144

 

 

 

3,334,904

 

Cash and cash equivalents

 

 

16,182

 

 

 

78,987

 

 

 

10,205

 

 

 

100,486

 

 

 

101,787

 

Accrued rental income

 

 

112,163

 

 

 

109,278

 

 

 

105,674

 

 

 

102,117

 

 

 

97,517

 

Tenant and other receivables, net

 

 

940

 

 

 

618

 

 

 

1,022

 

 

 

1,604

 

 

 

3,957

 

Prepaid expenses and other assets

 

 

13,819

 

 

 

18,846

 

 

 

18,862

 

 

 

22,277

 

 

 

19,522

 

Interest rate swap, assets

 

 

 

 

 

 

 

 

239

 

 

 

 

 

 

 

Goodwill

 

 

339,769

 

 

 

339,769

 

 

 

339,769

 

 

 

339,769

 

 

 

339,769

 

Intangible lease assets, net

 

 

301,046

 

 

 

296,134

 

 

 

288,592

 

 

 

290,913

 

 

 

288,971

 

Debt issuance costs – unsecured
   revolving credit facility, net

 

 

4,658

 

 

 

5,250

 

 

 

5,842

 

 

 

6,435

 

 

 

7,027

 

Leasing fees, net

 

 

9,791

 

 

 

10,368

 

 

 

10,673

 

 

 

10,738

 

 

 

11,015

 

Total assets

 

$

4,501,972

 

 

$

4,423,611

 

 

$

4,206,045

 

 

$

4,258,483

 

 

$

4,204,469

 

Liabilities and equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured revolving credit facility

 

$

 

 

$

 

 

$

15,000

 

 

$

 

 

$

 

Mortgages and notes payable, net

 

 

97,530

 

 

 

105,748

 

 

 

106,559

 

 

 

107,382

 

 

 

108,752

 

Unsecured term loans, net

 

 

646,458

 

 

 

910,994

 

 

 

910,732

 

 

 

961,330

 

 

 

961,115

 

Senior unsecured notes, net

 

 

843,665

 

 

 

472,637

 

 

 

472,551

 

 

 

472,466

 

 

 

472,380

 

Interest rate swap, liabilities

 

 

36,196

 

 

 

46,335

 

 

 

43,662

 

 

 

72,103

 

 

 

81,326

 

Earnout liability

 

 

 

 

 

10,063

 

 

 

6,385

 

 

 

7,509

 

 

 

13,177

 

Accounts payable and other liabilities

 

 

79,606

 

 

 

75,463

 

 

 

71,072

 

 

 

74,936

 

 

 

55,339

 

Accrued interest payable

 

 

9,895

 

 

 

3,885

 

 

 

9,896

 

 

 

4,023

 

 

 

9,453

 

Intangible lease liabilities, net

 

 

72,497

 

 

 

74,978

 

 

 

77,491

 

 

 

79,653

 

 

 

81,220

 

Total liabilities

 

 

1,785,847

 

 

 

1,700,103

 

 

 

1,713,348

 

 

 

1,779,402

 

 

 

1,782,762

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadstone Net Lease, Inc. stockholders'
   equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, $0.00025 par value

 

 

40

 

 

 

40

 

 

 

36

 

 

 

27

 

 

 

27

 

Class A Common Stock, $0.00025 par
   value

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

8

 

Additional paid-in capital

 

 

2,895,219

 

 

 

2,890,131

 

 

 

2,625,320

 

 

 

2,624,997

 

 

 

2,506,008

 

Cumulative distributions in excess of
   retained earnings

 

 

(305,665

)

 

 

(293,622

)

 

 

(274,140

)

 

 

(259,673

)

 

 

(239,520

)

Accumulated other comprehensive
   income

 

 

(37,590

)

 

 

(41,896

)

 

 

(38,684

)

 

 

(66,255

)

 

 

(74,729

)

Total Broadstone Net Lease, Inc.
   stockholders’ equity

 

 

2,552,004

 

 

 

2,554,653

 

 

 

2,312,532

 

 

 

2,299,105

 

 

 

2,191,794

 

Non-controlling interests

 

 

164,121

 

 

 

168,855

 

 

 

180,165

 

 

 

179,976

 

 

 

229,913

 

Total equity

 

 

2,716,125

 

 

 

2,723,508

 

 

 

2,492,697

 

 

 

2,479,081

 

 

 

2,421,707

 

Total liabilities and equity

 

$

4,501,972

 

 

$

4,423,611

 

 

$

4,206,045

 

 

$

4,258,483

 

 

$

4,204,469

 

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 6

 


 

 

Income Statement Summary

(unaudited, in thousands, except per share data)

 

 

 

Three Months Ended

 

 

 

September 30,
2021

 

 

June 30,
2021

 

 

March 31,
2021

 

 

December 31,
2020

 

 

September 30,
2020

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease revenues, net

 

$

122,777

 

 

$

84,759

 

 

$

82,698

 

 

$

82,291

 

 

$

80,744

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

36,682

 

 

 

31,225

 

 

 

30,713

 

 

 

30,182

 

 

 

31,363

 

Property and operating
   expense

 

 

4,842

 

 

 

4,572

 

 

 

4,605

 

 

 

4,986

 

 

 

4,187

 

General and administrative

 

 

8,552

 

 

 

8,655

 

 

 

10,633

 

 

 

9,232

 

 

 

7,214

 

Provision for impairment of
   investment in rental
   properties

 

 

25,989

 

 

 

 

 

 

2,012

 

 

 

1,678

 

 

 

14,732

 

Total operating expenses

 

 

76,065

 

 

 

44,452

 

 

 

47,963

 

 

 

46,078

 

 

 

57,496

 

Other income (expenses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

6

 

 

 

5

 

 

 

4

 

 

 

 

Interest expense

 

 

(15,611

)

 

 

(15,430

)

 

 

(16,108

)

 

 

(17,123

)

 

 

(18,511

)

Cost of debt extinguishment

 

 

(242

)

 

 

 

 

 

(126

)

 

 

(3

)

 

 

(392

)

Gain on sale of real estate

 

 

1,220

 

 

 

3,838

 

 

 

4,733

 

 

 

5,260

 

 

 

1,060

 

Income taxes

 

 

(473

)

 

 

(301

)

 

 

(413

)

 

 

141

 

 

 

(129

)

Internalization expenses

 

 

 

 

 

 

 

 

 

 

 

(182

)

 

 

(1,929

)

Change in fair value of
   earnout liability

 

 

(1,059

)

 

 

(5,604

)

 

 

1,124

 

 

 

(6,706

)

 

 

6,362

 

Other income (expenses)

 

 

(25

)

 

 

4

 

 

 

10

 

 

 

15

 

 

 

2

 

Net income

 

 

30,522

 

 

 

22,820

 

 

 

23,960

 

 

 

17,619

 

 

 

9,711

 

Net income attributable to
   non-controlling interests

 

 

(1,824

)

 

 

(1,606

)

 

 

(1,737

)

 

 

(1,357

)

 

 

(961

)

Net income attributable to
   Broadstone Net Lease, Inc.

 

$

28,698

 

 

$

21,214

 

 

$

22,223

 

 

$

16,262

 

 

$

8,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

Basic1

 

 

159,226

 

 

 

146,119

 

 

 

145,338

 

 

 

143,916

 

 

 

111,155

 

Diluted1

 

 

169,587

 

 

 

157,430

 

 

 

156,724

 

 

 

155,956

 

 

 

123,381

 

Net earnings per common share2

 

 

 

 

 

 

 

Basic and diluted

 

$

0.18

 

 

$

0.14

 

 

$

0.15

 

 

$

0.11

 

 

$

0.08

 

1 Excludes 378, 387, 334, 341 and 216 weighted average shares of unvested restricted common stock for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively.

2 Excludes $95, $97, $104, $85 and $46 from the numerator for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively, related to dividends declared on shares of unvested restricted common stock.

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 7

 


 

Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)

(unaudited, in thousands, except per share data)

 

 

 

Three Months Ended

 

 

 

September 30,
2021

 

 

June 30,
2021

 

 

March 31,
2021

 

 

December 31,
2020

 

 

September 30,
2020

 

Net income

 

$

30,522

 

 

$

22,820

 

 

$

23,960

 

 

$

17,619

 

 

$

9,711

 

Real property depreciation and
   amortization

 

 

36,656

 

 

 

31,202

 

 

 

30,690

 

 

 

30,161

 

 

 

31,343

 

Gain on sale of real estate

 

 

(1,220

)

 

 

(3,838

)

 

 

(4,733

)

 

 

(5,260

)

 

 

(1,060

)

Provision for impairment of investment
   in rental properties

 

 

25,989

 

 

 

 

 

 

2,012

 

 

 

1,678

 

 

 

14,732

 

FFO

 

$

91,947

 

 

$

50,184

 

 

$

51,929

 

 

$

44,198

 

 

$

54,726

 

Capital improvements / reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,662

 

Straight-line rent adjustment

 

 

(3,434

)

 

 

(4,979

)

 

 

(4,632

)

 

 

(5,125

)

 

 

(6,943

)

Lease termination fee

 

 

(35,000

)

 

 

 

 

 

 

 

 

 

 

 

 

Adjustment to provision for credit
   losses

 

 

 

 

 

 

 

 

(1

)

 

 

(6

)

 

 

(15

)

Cost of debt extinguishment

 

 

242

 

 

 

 

 

 

126

 

 

 

3

 

 

 

392

 

Amortization of debt issuance costs

 

 

962

 

 

 

956

 

 

 

914

 

 

 

917

 

 

 

819

 

Amortization of net mortgage
   premiums

 

 

(34

)

 

 

(37

)

 

 

(35

)

 

 

(36

)

 

 

(34

)

Loss (gain) on interest rate swaps and
   other non-cash interest expense

 

 

85

 

 

 

(42

)

 

 

(41

)

 

 

(41

)

 

 

(42

)

Amortization of lease intangibles

 

 

(940

)

 

 

(641

)

 

 

(728

)

 

 

(1,150

)

 

 

151

 

Internalization expenses

 

 

 

 

 

 

 

 

 

 

 

182

 

 

 

1,929

 

Stock-based compensation

 

 

924

 

 

 

951

 

 

 

1,769

 

 

 

1,193

 

 

 

796

 

Severance

 

 

 

 

 

32

 

 

 

1,243

 

 

 

68

 

 

 

 

Change in fair value of earnout liability

 

 

1,059

 

 

 

5,604

 

 

 

(1,124

)

 

 

6,706

 

 

 

(6,362

)

Other (income) expenses

 

 

25

 

 

 

(4

)

 

 

(10

)

 

 

(15

)

 

 

(2

)

AFFO

 

$

55,836

 

 

$

52,024

 

 

$

49,410

 

 

$

46,894

 

 

$

47,077

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average shares
   outstanding
1

 

 

169,587

 

 

 

157,430

 

 

 

156,724

 

 

 

155,956

 

 

 

123,381

 

Net earnings per diluted share2

 

$

0.18

 

 

$

0.14

 

 

$

0.15

 

 

$

0.11

 

 

$

0.08

 

FFO per diluted share2

 

 

0.54

 

 

 

0.32

 

 

 

0.33

 

 

 

0.28

 

 

 

0.44

 

AFFO per diluted share2

 

 

0.33

 

 

 

0.33

 

 

 

0.31

 

 

 

0.30

 

 

 

0.38

 

1 Excludes 378, 387, 334, 341 and 216 weighted average shares of unvested restricted common stock for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively.

2 Excludes $95, $97, $104, $85 and $46 from the numerator for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively, related to dividends declared on shares of unvested restricted common stock.

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 8

 


 

EBITDA, EBITDAre, and Other-Non GAAP Operating Measures

(unaudited, in thousands)

 

 

 

Three Months Ended

 

 

 

September 30,
2021

 

 

June 30,
2021

 

 

March 31,
2021

 

 

December 31,
2020

 

 

September 30,
2020

 

Net income

 

$

30,522

 

 

$

22,820

 

 

$

23,960

 

 

$

17,619

 

 

$

9,711

 

Depreciation and amortization

 

 

36,682

 

 

 

31,225

 

 

 

30,713

 

 

 

30,182

 

 

 

31,363

 

Interest expense

 

 

15,611

 

 

 

15,430

 

 

 

16,108

 

 

 

17,123

 

 

 

18,511

 

Income taxes

 

 

473

 

 

 

301

 

 

 

413

 

 

 

(141

)

 

 

129

 

EBITDA

 

$

83,288

 

 

$

69,776

 

 

$

71,194

 

 

$

64,783

 

 

$

59,714

 

Provision for impairment of investment in
   rental properties

 

 

25,989

 

 

 

 

 

 

2,012

 

 

 

1,678

 

 

 

14,732

 

Gain on sale of real estate

 

 

(1,220

)

 

 

(3,838

)

 

 

(4,733

)

 

 

(5,260

)

 

 

(1,060

)

EBITDAre

 

$

108,057

 

 

$

65,938

 

 

$

68,473

 

 

$

61,201

 

 

$

73,386

 

Adjustment for current quarter acquisition
   activity
1

 

 

3,534

 

 

 

2,761

 

 

 

1,365

 

 

 

1,703

 

 

 

 

Adjustment for current quarter disposition
   activity
2

 

 

(1,387

)

 

 

(353

)

 

 

(278

)

 

 

(318

)

 

 

(78

)

Adjustment to exclude non-recurring and other
   expenses
3

 

 

 

 

 

 

 

 

2,100

 

 

 

182

 

 

 

1,929

 

Adjustment to exclude change in fair value
   of earnout liability

 

 

1,059

 

 

 

5,604

 

 

 

(1,124

)

 

 

6,706

 

 

 

(6,362

)

Adjustment to exclude write-off of accrued
   rental income

 

 

1,496

 

 

 

 

 

 

442

 

 

 

242

 

 

 

 

Adjustment to exclude cost of debt
   extinguishments

 

 

242

 

 

 

 

 

 

126

 

 

 

 

 

 

392

 

Adjustment to exclude lease termination
   fees

 

 

(35,000

)

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDAre

 

$

78,001

 

 

$

73,950

 

 

$

71,104

 

 

$

69,716

 

 

$

69,267

 

General and administrative

 

 

8,537

 

 

 

8,650

 

 

 

10,632

 

 

 

9,219

 

 

 

7,214

 

Adjusted Net Operating Income ("NOI")

 

$

86,538

 

 

$

82,600

 

 

$

81,736

 

 

$

78,935

 

 

$

76,481

 

Straight-line rental revenue, net

 

 

(5,789

)

 

 

(5,245

)

 

 

(4,762

)

 

 

(5,339

)

 

 

(6,947

)

Other amortization and non-cash charges

 

 

(616

)

 

 

(642

)

 

 

(737

)

 

 

(1,170

)

 

 

1,810

 

Adjusted Cash NOI

 

$

80,133

 

 

$

76,713

 

 

$

76,237

 

 

$

72,426

 

 

$

71,344

 

Annualized EBITDAre

 

$

432,221

 

 

$

263,761

 

 

$

273,888

 

 

$

244,805

 

 

$

293,544

 

Annualized Adjusted EBITDAre

 

 

311,998

 

 

 

295,808

 

 

 

284,414

 

 

 

278,867

 

 

 

277,068

 

Annualized Adjusted NOI

 

 

346,145

 

 

 

330,410

 

 

 

326,944

 

 

 

315,743

 

 

 

305,924

 

Annualized Adjusted Cash NOI

 

 

320,524

 

 

 

306,863

 

 

 

304,948

 

 

 

289,704

 

 

 

285,376

 

 

1 Reflects an adjustment to give effect to all acquisition during the quarter as if they had been acquired as of the beginning of the quarter.

2 Reflects an adjustment to give effect to all dispositions during the quarter as if they had been sold as of the beginning of the quarter.

3 Amounts include $1.2 million of severance and $0.9 million of accelerated stock-based compensation associated with the departure of executive officers during the three months ended March 31, 2021, and expenses directly associated with the Internalization in 2020.

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 9

 


 

Lease Revenues Detail

(unaudited, in thousands)

 

 

 

Three Months Ended

 

 

 

September 30,
2021

 

 

June 30,
2021

 

 

March 31,
2021

 

 

December 31,
2020

 

 

September 30,
2020

 

Contractual rental amounts billed for
   operating leases

 

$

78,886

 

 

$

75,011

 

 

$

73,245

 

 

$

72,558

 

 

$

69,270

 

Adjustment to recognize contractual
   operating lease billings on a straight-
   line basis

 

 

4,942

 

 

 

4,724

 

 

 

4,367

 

 

 

4,256

 

 

 

6,768

 

Variable rental amounts earned

 

 

130

 

 

 

114

 

 

 

91

 

 

 

455

 

 

 

234

 

Earned income from direct financing
   leases

 

 

726

 

 

 

728

 

 

 

730

 

 

 

756

 

 

 

757

 

Interest income from sales-type
   leases

 

 

14

 

 

 

15

 

 

 

14

 

 

 

5

 

 

 

 

Operating expenses billed to tenants

 

 

4,414

 

 

 

4,196

 

 

 

4,388

 

 

 

4,389

 

 

 

3,389

 

Other income from real estate
   transactions

 

 

33,515

 

 

 

28

 

 

 

5

 

 

 

(16

)

 

 

64

 

Adjustment to revenue recognized for
   uncollectible rental amounts billed, net

 

 

150

 

 

 

(57

)

 

 

(142

)

 

 

(112

)

 

 

262

 

Total Lease revenues, net

 

$

122,777

 

 

$

84,759

 

 

$

82,698

 

 

$

82,291

 

 

$

80,744

 

 

 

 

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 10

 


 

Capital Structure

(unaudited, in thousands, except per share data)

img213941062_4.jpg 

 

 

EQUITY

 

 

 

Shares of Common Stock

 

 

161,255

 

OP Units

 

 

10,370

 

Common Stock & OP Units

 

 

171,625

 

Price Per Share / Unit at September 30, 2021

 

$

24.81

 

IMPLIED EQUITY MARKET CAPITALIZATION

 

$

4,258,017

 

% of Total Capitalization

 

 

72.7

%

DEBT

 

 

 

Unsecured Revolving Credit Facility - 2023

 

$

 

Unsecured Term Loan Facilities

 

 

650,000

 

Unsecured Term Loan - 2022

 

 

60,000

 

Unsecured Term Loan - 2024

 

 

190,000

 

Unsecured Term Loan - 2026

 

 

400,000

 

Senior Unsecured Notes

 

 

850,000

 

Senior Unsecured Notes - 2027

 

 

150,000

 

Senior Unsecured Notes - 2028

 

 

225,000

 

Senior Unsecured Notes - 2030

 

 

100,000

 

Senior Unsecured Notes - 2031

 

 

375,000

 

Mortgage Debt - Various

 

 

97,868

 

TOTAL DEBT

 

$

1,597,868

 

% of Total Capitalization

 

 

27.3

%

% of Total Capitalization Floating Rate Debt

 

 

0.3

%

% of Total Capitalization Fixed Rate Debt

 

 

27.0

%

 

 

 

 

ENTERPRISE VALUE

 

 

 

Total Capitalization

 

$

5,855,885

 

Less: Cash and Cash Equivalents

 

 

(16,182

)

Enterprise Value

 

$

5,839,703

 

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 11

 


 

Equity Rollforward

(unaudited, in thousands)

 

 

 

 

Shares of Common Stock

 

 

OP Units

 

 

Total Diluted Shares

 

Balance, January 1, 2021

 

 

 

145,609

 

 

 

11,399

 

 

 

157,008

 

Q1 2021 board of directors fees

 

 

 

12

 

 

 

 

 

 

12

 

Q1 2021 stock-based compensation activity

 

 

 

199

 

 

 

 

 

 

199

 

Q1 2021 retirement of common stock

 

 

 

(45

)

 

 

 

 

 

(45

)

Q1 2021 OP Unit conversions

 

 

 

38

 

 

 

(38

)

 

 

 

Balance, March 31, 2021

 

 

 

145,813

 

 

 

11,361

 

 

 

157,174

 

Q2 2021 board of directors fees

 

 

 

13

 

 

 

 

 

 

13

 

Q2 2021 stock-based compensation activity

 

 

 

1

 

 

 

 

 

 

1

 

Q2 2021 retirement of common stock

 

 

 

(16

)

 

 

 

 

 

(16

)

Q2 2021 OP Unit conversions

 

 

 

1,127

 

 

 

(1,127

)

 

 

 

Q2 2021 Earnout tranche 1 issuance

 

 

 

145

 

 

 

248

 

 

 

393

 

Q2 2021 Public follow-on equity offering

 

 

 

11,500

 

 

 

 

 

 

11,500

 

Balance, June 30, 2021

 

 

 

158,583

 

 

 

10,482

 

 

 

169,065

 

Q3 2021 board of directors fees

 

 

 

13

 

 

 

 

 

 

13

 

Q3 2021 retirement of common stock

 

 

 

(3

)

 

 

 

 

 

(3

)

Q3 2021 forfeiture of common stock

 

 

 

(5

)

 

 

 

 

 

(5

)

Q3 2021 OP Unit conversions

 

 

 

1,723

 

 

 

(1,723

)

 

 

 

Q3 2021 Earnout tranche 2, 3, and 4 issuance

 

 

 

944

 

 

 

1,611

 

 

 

2,555

 

Balance, September 30, 2021

 

 

 

161,255

 

 

 

10,370

 

 

 

171,625

 

Percentage ownership of OP at September 30, 2021

 

 

94.0

%

 

 

6.0

%

 

 

100

%

 

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 12

 


 

Debt Outstanding

(unaudited, in thousands)

 

 

 

Outstanding Balance

 

 

 

 

 

 

 

September 30,

 

 

December 31,

 

 

 

 

 

 

 

2021

 

 

2020

 

 

Interest Rate

 

Maturity Date

Unsecured revolving credit facility

$

 

 

$

 

 

one-month LIBOR + 1.00%

 

Sep. 2023

Unsecured term loans:

 

 

 

 

 

 

 

 

 

 

2022 Unsecured Term Loan

 

 

60,000

 

 

 

60,000

 

 

one-month LIBOR + 1.00%

 

Feb. 2022

2023 Unsecured Term Loan

 

 

 

 

265,000

 

 

one-month LIBOR + 1.10%

 

Jan. 2023

2024 Unsecured Term Loan

 

190,000

 

 

 

190,000

 

 

one-month LIBOR + 1.00%

 

Jun. 2024

2026 Unsecured Term Loan

 

 

400,000

 

 

 

450,000

 

 

one-month LIBOR + 1.00%

 

Feb. 2026

Total unsecured term loans

 

 

650,000

 

 

 

965,000

 

 

 

 

 

Unamortized debt issuance costs, net

 

 

(3,542

)

 

 

(3,670

)

 

 

 

 

Total unsecured term loans, net

 

 

646,458

 

 

 

961,330

 

 

 

 

 

Senior unsecured notes:

 

 

 

 

 

 

 

 

 

 

2027 Senior Unsecured Notes - Series A

 

150,000

 

 

 

150,000

 

 

4.84%

 

Apr. 2027

2028 Senior Unsecured Notes - Series B

 

225,000

 

 

 

225,000

 

 

5.09%

 

Jul. 2028

2030 Senior Unsecured Notes - Series C

 

100,000

 

 

 

100,000

 

 

5.19%

 

Jul. 2030

2031 Senior Unsecured Public Notes

 

 

375,000

 

 

 

 

 

2.60%

 

Sep. 2031

Total senior unsecured notes

 

 

850,000

 

 

 

475,000

 

 

 

 

 

Unamortized debt issuance costs and
   original issuance discount, net

 

 

(6,335

)

 

 

(2,534

)

 

 

 

 

Total senior unsecured notes, net

 

 

843,665

 

 

 

472,466

 

 

 

 

 

Total unsecured debt, net

 

$

1,490,123

 

 

$

1,433,796

 

 

 

 

 

 

 

 

 

Origination

 

Maturity

 

 

 

 

 

 

 

 

 

 

Date

 

Date

 

Interest

 

September 30,

 

 

December 31,

 

Lender

 

(Month/Year)

 

(Month/Year)

 

Rate

 

2021

 

 

2020

 

Wilmington Trust National Association

 

Apr-19

 

Feb-28

 

4.92%

 

$

47,064

 

 

$

47,945

 

Wilmington Trust National Association

 

Jun-18

 

Aug-25

 

4.36%

 

 

19,657

 

 

 

19,947

 

PNC Bank

 

Oct-16

 

Nov-26

 

3.62%

 

 

17,196

 

 

 

17,498

 

T2 Durham I, LLC

 

Jul - 21

 

Jul -24

 

Greater of Prime + 1.25% or 5.00%

 

 

7,500

 

 

 

 

Aegon

 

Apr-12

 

Oct-23

 

6.38%

 

 

6,451

 

 

 

7,039

 

Sun Life

 

Mar-12

 

Oct-21

 

5.13%

 

 

 

 

 

10,469

 

M&T Bank

 

Oct-17

 

Aug-21

 

one - month
LIBOR+3%

 

 

 

 

 

4,769

 

Total mortgages

 

 

 

 

 

 

 

 

97,868

 

 

 

107,667

 

Debt issuance costs, net

 

 

 

 

 

 

 

 

(338

)

 

 

(285

)

Mortgages, net

 

 

 

 

 

 

 

$

97,530

 

 

$

107,382

 

 

Year of Maturity

 

Revolving Credit Facility

 

 

Term Loans

 

 

Senior Notes

 

 

Mortgages

 

 

Total

 

2021

 

$

 

 

$

 

 

$

 

 

$

707

 

 

$

707

 

2022

 

 

 

 

 

60,000

 

 

 

 

 

 

2,907

 

 

 

62,907

 

2023

 

 

 

 

 

 

 

 

 

 

 

7,582

 

 

 

7,582

 

2024

 

 

 

 

 

190,000

 

 

 

 

 

 

9,760

 

 

 

199,760

 

2025

 

 

 

 

 

 

 

 

 

 

 

20,195

 

 

 

20,195

 

Thereafter

 

 

 

 

 

400,000

 

 

 

850,000

 

 

 

56,717

 

 

 

1,306,717

 

Total

 

$

 

 

$

650,000

 

 

$

850,000

 

 

$

97,868

 

 

$

1,597,868

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 13

 


 

Net Debt Metrics

(unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,
2021

 

 

June 30,
2021

 

 

March 31,
2021

 

 

December 31,
2020

 

 

September 30,
2020

 

Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving Credit Facility

 

$

 

 

$

 

 

$

15,000

 

 

$

 

 

$

 

Unsecured term loans, net

 

 

646,458

 

 

 

910,994

 

 

 

910,732

 

 

 

961,330

 

 

 

961,115

 

Senior unsecured notes, net

 

 

843,665

 

 

 

472,637

 

 

 

472,551

 

 

 

472,466

 

 

 

472,380

 

Mortgages and notes payable, net

 

 

97,530

 

 

 

105,748

 

 

 

106,559

 

 

 

107,382

 

 

 

108,752

 

Debt issuance costs

 

 

10,215

 

 

 

6,625

 

 

 

6,988

 

 

 

6,489

 

 

 

6,829

 

Gross Debt

 

 

1,597,868

 

 

 

1,496,004

 

 

 

1,511,830

 

 

 

1,547,667

 

 

 

1,549,076

 

Cash and cash equivalents

 

 

(16,182

)

 

 

(78,987

)

 

 

(10,205

)

 

 

(100,486

)

 

 

(101,787

)

Restricted cash

 

 

(3,895

)

 

 

(8,021

)

 

 

(8,145

)

 

 

(10,242

)

 

 

(7,200

)

Net Debt

 

$

1,577,791

 

 

$

1,408,996

 

 

$

1,493,480

 

 

$

1,436,939

 

 

$

1,440,089

 

Net Debt to Annualized EBITDAre

 

3.65x

 

 

5.34x

 

 

5.45x

 

 

5.87x

 

 

4.91x

 

Net Debt to Annualized Adjusted
   EBITDAre

 

5.06x

 

 

4.76x

 

 

5.25x

 

 

5.15x

 

 

5.20x

 

 

 

Covenants

(unaudited)

 

The following is a summary of key financial covenants for the Company’s unsecured credit facility and unsecured term loans and senior notes. The covenants associated with the Revolving Credit Facility, Unsecured Term Loans with commercial banks, and the Series A-C Senior Unsecured Notes, are reported to the lenders via quarterly covenant reporting packages. The covenants associated with the 2031 Senior Unsecured Public Notes are not required to be reported externally to third parties, and are instead calculated in connection with borrowing activity and for financial reporting purposes only. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of September 30, 2021, the Company believes it is in compliance with the covenants.

 

Covenants

 

Required

 

Revolving Credit Facility and Unsecured Term Loans

 

 

Senior Unsecured Notes Series A, B, & C

 

 

2031 Senior Unsecured Public Notes

 

Leverage ratio

 

≤ 0.60 to 1.00

 

 

0.34

 

 

 

0.35

 

 

Not Applicable

 

Secured indebtedness ratio

 

≤ 0.40 to 1.00

 

 

0.02

 

 

 

0.02

 

 

Not Applicable

 

Unencumbered coverage ratio

 

≥ 1.75 to 1.00

 

 

7.90

 

 

Not Applicable

 

 

Not Applicable

 

Fixed charge coverage ratio

 

≥ 1.50 to 1.00

 

 

4.29

 

 

 

4.29

 

 

Not Applicable

 

Total unsecured indebtedness to
   total unencumbered eligible
   property value

 

≤ 0.60 to 1.00

 

 

0.35

 

 

 

0.36

 

 

Not Applicable

 

Dividends and other restricted
   payments

 

Only applicable
in case of default

 

Not Applicable

 

 

Not Applicable

 

 

Not Applicable

 

Aggregate debt ratio

 

≤ 0.60 to 1.00

 

Not Applicable

 

 

Not Applicable

 

 

 

0.36

 

Consolidated income available for
   debt to annual debt service
   charge

 

≥ 1.50 to 1.00

 

Not Applicable

 

 

Not Applicable

 

 

 

4.69

 

Total unencumbered assets to
   total unsecured debt

 

≥ 1.50 to 1.00

 

Not Applicable

 

 

Not Applicable

 

 

 

2.86

 

Secured debt ratio

 

≤ 0.40 to 1.00

 

Not Applicable

 

 

Not Applicable

 

 

 

0.02

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 14

 


 

Debt Maturities

(unaudited, dollars in millions)

Debt Maturities

The Company utilizes diversified sources of debt capital including unsecured bank debt, unsecured notes, and secured mortgages (where appropriate).

img213941062_5.jpg 

 

 

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 15

 


 

Portfolio Activity

Acquisitions

(unaudited, square feet and dollars in thousands)

The following table summarizes the Company’s property acquisition activity during 2021.

QTD Q1 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Type

 

Number of Properties

 

 

Square Feet ('000s)

 

 

 Weighted Average Lease Term (years)

 

 

 Weighted Average Annual Rent Increase

 

 

Acquisition Price ($'000s)

 

Retail

 

 

24

 

 

 

178

 

 

 

16.3

 

 

 

1.1

%

 

$

68,158

 

Healthcare

 

 

4

 

 

 

51

 

 

 

11.5

 

 

 

2.0

%

 

 

18,983

 

Restaurant 1

 

 

 

 

 

 

 

 

16.8

 

 

 

2.9

%

 

 

181

 

Total Properties

 

 

28

 

 

 

229

 

 

 

15.3

 

 

 

1.3

%

 

$

87,322

 

Weighted average initial cash cap rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QTD Q2 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Type

 

Number of Properties

 

 

Square Feet ('000s)

 

 

 Weighted Average Lease Term (years)

 

 

 Weighted Average Annual Rent Increase

 

 

Acquisition Price ($'000s)

 

Industrial

 

 

12

 

 

 

1,553

 

 

 

15.5

 

 

 

1.5

%

 

$

115,078

 

Healthcare

 

 

11

 

 

 

136

 

 

 

10.5

 

 

 

1.7

%

 

 

46,050

 

Retail

 

 

11

 

 

 

218

 

 

 

9.8

 

 

 

0.4

%

 

 

32,830

 

Total Properties

 

 

34

 

 

 

1,906

 

 

 

13.2

 

 

 

1.4

%

 

$

193,959

 

Weighted average initial cash cap rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QTD Q3 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Type

 

Number of Properties

 

 

Square Feet ('000s)

 

 

 Weighted Average Lease Term (years)

 

 

 Weighted Average Annual Rent Increase

 

 

Acquisition Price ($'000s)

 

Industrial

 

 

9

 

 

 

1,358

 

 

 

18.4

 

 

 

1.9

%

 

$

142,695

 

Retail

 

 

8

 

 

 

105

 

 

 

8.4

 

 

 

0.5

%

 

 

23,229

 

Healthcare

 

 

1

 

 

 

148

 

 

 

25.0

 

 

 

2.0

%

 

 

60,000

 

Total Properties

 

 

18

 

 

 

1,611

 

 

 

19.4

 

 

 

1.8

%

 

$

225,924

 

Weighted average initial cash cap rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD Q3 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Type

 

Number of Properties

 

 

Square Feet ('000s)

 

 

 Weighted Average Lease Term (years)

 

 

 Weighted Average Annual Rent Increase

 

 

Acquisition Price ($'000s)

 

Industrial

 

 

21

 

 

 

2,911

 

 

 

17.1

 

 

 

1.7

%

 

 

257,773

 

Healthcare

 

 

16

 

 

 

335

 

 

 

18.2

 

 

 

1.9

%

 

 

125,033

 

Retail

 

 

43

 

 

 

501

 

 

 

13.0

 

 

 

0.8

%

 

 

124,217

 

Restaurant 1

 

 

 

 

 

 

 

 

16.8

 

 

 

2.9

%

 

 

181

 

Total Properties

 

 

80

 

 

 

3,746

 

 

 

16.4

 

 

 

1.5

%

 

 

507,204

 

Weighted average initial cash cap rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.4

%

 

1 Acquisition of additional land to an existing property.

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 16

 


 

Dispositions

(unaudited, square feet and dollars in thousands)

The following table summarizes the Company’s property disposition activity during 2021.

QTD Q1 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Type

 

Number of Properties

 

 

Square Feet ('000s)

 

 

Acquisition Price ($'000s)

 

 

Disposition Price ($'000s)

 

 

Net Book Value ($'000s)

 

 

Cash Cap Rate

 

 

Healthcare

 

 

5

 

 

 

31

 

 

 

12,420

 

 

 

14,689

 

 

$

10,773

 

 

 

7.4

%

 

Restaurant

 

 

3

 

 

 

14

 

 

 

6,965

 

 

 

8,181

 

 

 

6,599

 

 

 

6.4

%

 

Total Properties

 

 

8

 

 

 

45

 

 

$

19,385

 

 

$

22,870

 

 

$

17,373

 

 

 

7.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QTD Q2 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Type

 

Number of Properties

 

 

Square Feet ('000s)

 

 

Acquisition Price ($'000s)

 

 

Disposition Price ($'000s)

 

 

Net Book Value ($'000s)

 

 

Cash Cap Rate

 

 

Restaurant

 

 

10

 

 

 

36

 

 

$

17,973

 

 

$

20,876

 

 

$

15,694

 

 

 

6.4

%

 

Healthcare

 

 

1

 

 

 

6

 

 

 

1,689

 

 

 

1,400

 

 

 

1,506

 

 

N/A

 

2

Total Properties

 

 

11

 

 

 

42

 

 

$

19,662

 

 

$

22,276

 

 

$

17,200

 

 

 

6.4

%

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QTD Q3 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Type

 

Number of Properties

 

 

Square Feet ('000s)

 

 

Acquisition Price ($'000s)

 

 

Disposition Price ($'000s)

 

 

Net Book Value ($'000s)

 

 

Cash Cap Rate

 

 

Office 4

 

 

2

 

 

 

407

 

 

$

54,600

 

 

$

16,000

 

 

$

41,085

 

 

N/A

 

2

Restaurant

 

 

3

 

 

 

20

 

 

 

7,037

 

 

 

8,067

 

 

 

6,639

 

 

 

6.0

%

3

Retail

 

 

1

 

 

 

29

 

 

 

5,758

 

 

 

2,500

 

 

 

2,508

 

 

N/A

 

2

Total Properties

 

 

6

 

 

 

455

 

 

$

67,396

 

 

$

26,567

 

 

$

50,232

 

 

 

6.0

%

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD Q3 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Type

 

Number of Properties

 

 

Square Feet ('000s)

 

 

Acquisition Price ($'000s)

 

 

Disposition Price ($'000s)

 

 

Net Book Value ($'000s)

 

 

Cash Cap Rate

 

 

Restaurant

 

 

16

 

 

 

70

 

 

$

31,975

 

 

$

37,124

 

 

$

28,932

 

 

 

6.3

%

3

Healthcare

 

 

6

 

 

 

37

 

 

 

14,109

 

 

 

16,089

 

 

 

12,279

 

 

 

7.2

%

3

Office 4

 

 

2

 

 

 

407

 

 

 

54,600

 

 

 

16,000

 

 

 

41,085

 

 

N/A

 

2

Retail

 

 

1

 

 

 

29

 

 

 

5,758

 

 

 

2,500

 

 

 

2,508

 

 

N/A

 

2

Total Properties

 

 

25

 

 

 

543

 

 

$

106,443

 

 

$

71,713

 

 

$

84,805

 

 

 

6.5

%

3

 

2 Properties were vacant at the time of disposition.

3 Weighted average cash cap rate on tenanted properties sold.

4 During the third quarter, we executed the termination of a long-term, master lease with an investment-grade office tenant in exchange for a termination fee of $35.0 million. Simultaneously, we sold the underlying properties to an unrelated third party for gross proceeds of $16.0 million. The $35.0 million lease termination fee was recognized separately as Lease revenue, net.

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 17

 


 

Portfolio at a Glance: Key Metrics

 

Properties

696

 

img213941062_6.jpg 

States

42

 

Canada

1

 

Total Rentable Sq. Footage

31.4M

 

Tenants

197

 

Brands

184

 

Industries

56

 

Occupancy (based on SF)

99.8%

 

Top Ten Tenant Concentration

17.6%

 

Top Twenty Tenant Concentration

30.3%

 

Investment Grade (tenant/guarantor)

15.3%

 

Financial Reporting Coverage1

93.9%

 

Rent Coverage Ratio2

3.5x

 

Weighted Average Annual Rent Increases

2.0%

 

Weighted Average Remaining Lease Term

10.6 years

 

 

1 Includes 8.8% related to tenants not required to provide financial information under the terms of our lease, but whose financial statements are available publicly.

2 Represents rent coverage ratio for Restaurant property type only.

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 18

 


 

Diversification: Tenants & Brands

(unaudited)

 

Top 20 Tenants

 

Tenant

 

Property Type

 

#
Properties

 

 

ABR
($'000s)

 

 

ABR as a
% of Total
Portfolio

 

 

Square
Feet
('000s)

 

 

SF as a
% of Total
Portfolio

 

Jack's Family Restaurants LP

 

Quick Service Restaurants

 

 

43

 

 

$

7,026

 

 

 

2.2

%

 

 

147

 

 

 

0.5

%

Red Lobster Hospitality & Red Lobster
   Restaurants LLC

 

Casual Dining

 

 

22

 

 

 

6,994

 

 

 

2.1

%

 

 

181

 

 

 

0.6

%

Joseph T. Ryerson & Son, Inc

 

Distribution & Warehouse

 

 

11

 

 

 

6,395

 

 

 

2.0

%

 

 

1,537

 

 

 

4.9

%

Axcelis Technologies, Inc.

 

Flex and R&D

 

 

1

 

 

 

5,859

 

 

 

1.8

%

 

 

417

 

 

 

1.4

%

Hensley & Company

 

Distribution & Warehouse

 

 

3

 

 

 

5,756

 

 

 

1.8

%

 

 

577

 

 

 

1.8

%

BluePearl Holdings, LLC

 

Animal Health Services

 

 

13

 

 

 

5,309

 

 

 

1.6

%

 

 

160

 

 

 

0.5

%

Outback Steakhouse of Florida LLC

 

Casual Dining

 

 

22

 

 

 

5,192

 

 

 

1.6

%

 

 

140

 

 

 

0.4

%

Krispy Kreme Doughnut Corporation

 

Quick Service Restaurants/
Food Processing

 

 

27

 

 

 

5,034

 

 

 

1.5

%

 

 

156

 

 

 

0.5

%

Siemens Medical Solutions USA, Inc.
   & Siemens Corporation

 

Manufacturing/Flex
and R&D

 

 

2

 

 

 

4,862

 

 

 

1.5

%

 

 

545

 

 

 

1.7

%

Big Tex Trailer Manufacturing, Inc.

 

Automotive/Distribution &
Warehouse/Manufacturing/ Corporate Headquarters

 

 

17

 

 

 

4,860

 

 

 

1.5

%

 

 

1,302

 

 

 

4.1

%

Total Top 10 Tenants

 

 

 

 

161

 

 

$

57,287

 

 

 

17.6

%

 

 

5,162

 

 

 

16.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Santa Cruz Valley Hospital

 

Healthcare Facilities

 

 

1

 

 

$

4,500

 

 

 

1.4

%

 

 

148

 

 

 

0.5

%

Nestle' Dreyer's Ice Cream Company

 

Cold Storage

 

 

1

 

 

 

4,409

 

 

 

1.4

%

 

 

310

 

 

 

1.0

%

Tractor Supply Company

 

General Merchandise

 

 

17

 

 

 

4,406

 

 

 

1.4

%

 

 

341

 

 

 

1.1

%

Arkansas Surgical Hospital

 

Surgical

 

 

1

 

 

 

4,260

 

 

 

1.3

%

 

 

129

 

 

 

0.4

%

American Signature, Inc.

 

Home Furnishings

 

 

6

 

 

 

4,224

 

 

 

1.3

%

 

 

474

 

 

 

1.5

%

Cascade Aerospace Inc.

 

Manufacturing

 

 

1

 

 

 

4,084

 

 

 

1.2

%

 

 

231

 

 

 

0.7

%

Dollar General Corporation

 

General Merchandise

 

 

40

 

 

 

4,077

 

 

 

1.2

%

 

 

371

 

 

 

1.2

%

Fresh Express Incorporated

 

Food Processing

 

 

1

 

 

 

3,869

 

 

 

1.2

%

 

 

335

 

 

 

1.1

%

Aventiv Technologies, LLC

 

Corporate Headquarters

 

 

1

 

 

 

3,819

 

 

 

1.2

%

 

 

154

 

 

 

0.5

%

Kith Kitchens

 

Manufacturing

 

 

3

 

 

 

3,561

 

 

 

1.1

%

 

 

843

 

 

 

2.7

%

Total Top 20 Tenants

 

 

 

 

233

 

 

$

98,496

 

 

 

30.3

%

 

 

8,498

 

 

 

27.1

%

 

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 19

 


 

Top 20 Brands

(unaudited)

 

Brand

 

Property Type

 

#
Properties

 

 

ABR
($'000s)

 

 

ABR as a
% of Total
Portfolio

 

 

Square
Feet
('000s)

 

 

SF as a
% of Total
Portfolio

 

Jack's Family Restaurants

 

Quick Service Restaurants

 

 

43

 

 

$

7,026

 

 

 

2.2

%

 

 

147

 

 

 

0.5

%

Red Lobster

 

Casual Dining

 

 

22

 

 

 

6,994

 

 

 

2.1

%

 

 

181

 

 

 

0.6

%

Ryerson

 

Distribution & Warehouse

 

 

11

 

 

 

6,395

 

 

 

2.0

%

 

 

1,537

 

 

 

4.9

%

Axcelis

 

Flex and R&D

 

 

1

 

 

 

5,859

 

 

 

1.8

%

 

 

417

 

 

 

1.4

%

Hensley

 

Distribution & Warehouse

 

 

3

 

 

 

5,756

 

 

 

1.8

%

 

 

577

 

 

 

1.8

%

BluePearl Veterinary Partners

 

Animal Health Services

 

 

13

 

 

 

5,309

 

 

 

1.6

%

 

 

160

 

 

 

0.5

%

Bob Evans Farms

 

Casual Dining/Food
Processing

 

 

21

 

 

 

5,247

 

 

 

1.6

%

 

 

282

 

 

 

0.9

%

Krispy Kreme

 

Quick Service Restaurants/
Food Processing

 

 

27

 

 

 

5,034

 

 

 

1.5

%

 

 

156

 

 

 

0.5

%

Siemens

 

Manufacturing/Flex
and R&D

 

 

2

 

 

 

4,862

 

 

 

1.5

%

 

 

545

 

 

 

1.7

%

Big Tex Trailers

 

Automotive/Distribution &
Warehouse/Manufacturing/
Corporate Headquarters

 

 

17

 

 

 

4,860

 

 

 

1.5

%

 

 

1,302

 

 

 

4.1

%

Total Top 10 Brands

 

 

 

 

160

 

 

$

57,342

 

 

 

17.6

%

 

 

5,304

 

 

 

16.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wendy's

 

Quick Service Restaurants

 

 

31

 

 

$

4,549

 

 

 

1.5

%

 

 

88

 

 

 

0.3

%

Santa Cruz Valley Hospital

 

Healthcare Facilities

 

 

1

 

 

 

4,500

 

 

 

1.4

%

 

 

148

 

 

 

0.5

%

Outback Steakhouse

 

Casual Dining

 

 

20

 

 

 

4,492

 

 

 

1.4

%

 

 

126

 

 

 

0.4

%

Nestle'

 

Cold Storage

 

 

1

 

 

 

4,409

 

 

 

1.4

%

 

 

310

 

 

 

1.0

%

Tractor Supply Co.

 

General Merchandise

 

 

17

 

 

 

4,406

 

 

 

1.4

%

 

 

341

 

 

 

1.1

%

Arkansas Surgical Hospital

 

Surgical

 

 

1

 

 

 

4,260

 

 

 

1.3

%

 

 

129

 

 

 

0.4

%

Value City Furniture

 

Home Furnishings

 

 

6

 

 

 

4,224

 

 

 

1.3

%

 

 

474

 

 

 

1.5

%

Taco Bell

 

Quick Service Restaurants

 

 

31

 

 

 

4,122

 

 

 

1.2

%

 

 

80

 

 

 

0.2

%

Cascade Aerospace

 

Manufacturing

 

 

1

 

 

 

4,084

 

 

 

1.2

%

 

 

231

 

 

 

0.7

%

Dollar General

 

General Merchandise

 

 

40

 

 

 

4,077

 

 

 

1.2

%

 

 

371

 

 

 

1.2

%

Total Top 20 Brands

 

 

 

 

309

 

 

$

100,465

 

 

 

30.9

%

 

 

7,602

 

 

 

24.2

%

 

 

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 20

 


 

Diversification: Property Type

(unaudited, rent percentages based on ABR)

 

img213941062_7.jpg 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 21

 


 

Diversification: Property Type (continued)

(unaudited)

Property Type

 

# Properties

 

 

ABR
($'000s)

 

 

ABR as a %
of Total
Portfolio

 

 

Square Feet ('000s)

 

 

SF as a %
of Total
Portfolio

 

Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Manufacturing

 

 

61

 

 

$

47,962

 

 

 

14.8

%

 

 

8,715

 

 

 

27.8

%

Distribution & Warehouse

 

 

44

 

 

 

47,563

 

 

 

14.6

%

 

 

9,052

 

 

 

28.8

%

Food Processing

 

 

16

 

 

 

21,357

 

 

 

6.6

%

 

 

2,405

 

 

 

7.7

%

Flex and R&D

 

 

7

 

 

 

17,025

 

 

 

5.2

%

 

 

1,457

 

 

 

4.6

%

Cold Storage

 

 

4

 

 

 

12,620

 

 

 

3.9

%

 

 

933

 

 

 

3.0

%

Services

 

 

19

 

 

 

7,787

 

 

 

2.4

%

 

 

446

 

 

 

1.4

%

Industrial Total

 

 

151

 

 

 

154,314

 

 

 

47.5

%

 

 

23,008

 

 

 

73.3

%

Healthcare

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clinical

 

 

50

 

 

 

25,009

 

 

 

7.7

%

 

 

1,055

 

 

 

3.4

%

Healthcare Services

 

 

28

 

 

 

12,413

 

 

 

3.8

%

 

 

463

 

 

 

1.5

%

Animal Health Services

 

 

27

 

 

 

10,196

 

 

 

3.1

%

 

 

405

 

 

 

1.3

%

Surgical

 

 

11

 

 

 

9,611

 

 

 

3.0

%

 

 

316

 

 

 

1.0

%

Life Science

 

 

9

 

 

 

7,655

 

 

 

2.4

%

 

 

549

 

 

 

1.7

%

Untenanted

 

 

2

 

 

 

 

 

 

0.0

%

 

 

23

 

 

 

0.1

%

Healthcare Total

 

 

127

 

 

 

64,884

 

 

 

20.0

%

 

 

2,811

 

 

 

9.0

%

Restaurant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quick Service Restaurants

 

 

148

 

 

 

24,522

 

 

 

7.5

%

 

 

505

 

 

 

1.6

%

Casual Dining

 

 

82

 

 

 

19,362

 

 

 

6.0

%

 

 

527

 

 

 

1.7

%

Untenanted

 

 

1

 

 

 

 

 

 

0.0

%

 

 

5

 

 

 

0.0

%

Restaurant Total

 

 

231

 

 

 

43,884

 

 

 

13.5

%

 

 

1,037

 

 

 

3.3

%

Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Merchandise

 

 

90

 

 

 

15,958

 

 

 

4.9

%

 

 

1,178

 

 

 

3.8

%

Automotive

 

 

68

 

 

 

12,914

 

 

 

4.0

%

 

 

844

 

 

 

2.7

%

Home Furnishings

 

 

13

 

 

 

6,999

 

 

 

2.2

%

 

 

797

 

 

 

2.5

%

Untenanted

 

 

1

 

 

 

 

 

 

0.0

%

 

 

34

 

 

 

0.1

%

Retail Total

 

 

172

 

 

 

35,871

 

 

 

11.1

%

 

 

2,853

 

 

 

9.1

%

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Headquarters

 

 

6

 

 

 

10,221

 

 

 

3.1

%

 

 

671

 

 

 

2.1

%

Strategic Operations

 

 

5

 

 

 

9,587

 

 

 

3.0

%

 

 

615

 

 

 

2.0

%

Call Center

 

 

4

 

 

 

5,853

 

 

 

1.8

%

 

 

391

 

 

 

1.2

%

Office Total

 

 

15

 

 

 

25,661

 

 

 

7.9

%

 

 

1,677

 

 

 

5.3

%

Total

 

 

696

 

 

$

324,614

 

 

 

100.0

%

 

 

31,386

 

 

 

100.0

%

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 22

 


 

Key Statistics by Property Type

Industrial

 

 

 

Number of properties

 

 

151

 

Square feet (000s)

 

 

23,008

 

Weighted average lease term (years)

 

 

10.6

 

Weighted average annual rent escalation

 

 

2.0

%

 

 

 

 

Healthcare

 

 

 

Number of properties

 

 

127

 

Square feet (000s)

 

 

2,811

 

Weighted average lease term (years)

 

 

9.1

 

Weighted average annual rent escalation

 

 

2.2

%

 

 

 

 

Restaurants

 

 

 

Number of properties

 

 

231

 

Square feet (000s)

 

 

1,037

 

Weighted average lease term (years)

 

 

15.1

 

Weighted average annual rent escalation

 

 

2.0

%

 

 

 

 

Retail

 

 

 

Number of properties

 

 

172

 

Square feet (000s)

 

 

2,853

 

Weighted average lease term (years)

 

 

10.6

 

Weighted average annual rent escalation

 

 

1.6

%

 

 

 

 

Office

 

 

 

Number of properties

 

 

15

 

Square feet (000s)

 

 

1,677

 

Weighted average lease term (years)

 

 

6.7

 

Weighted average annual rent escalation

 

 

2.5

%

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 23

 


 

Diversification: Tenant Industry
(unaudited)

Industry

 

# Properties

 

 

ABR
($'000s)

 

 

ABR as a %
of Total
Portfolio

 

 

Square Feet ('000s)

 

 

SF as a %
of Total
Portfolio

 

Healthcare Facilities

 

 

100

 

 

$

51,781

 

 

 

16.0

%

 

 

2,022

 

 

 

6.4

%

Restaurants

 

 

232

 

 

 

44,549

 

 

 

13.7

%

 

 

1,067

 

 

 

3.4

%

Packaged Foods & Meats

 

 

8

 

 

 

14,212

 

 

 

4.4

%

 

 

1,404

 

 

 

4.5

%

Distributors

 

 

24

 

 

 

13,906

 

 

 

4.3

%

 

 

2,519

 

 

 

8.0

%

Food Distributors

 

 

7

 

 

 

12,978

 

 

 

4.0

%

 

 

1,556

 

 

 

5.0

%

Auto Parts & Equipment

 

 

39

 

 

 

12,427

 

 

 

3.8

%

 

 

2,387

 

 

 

7.6

%

Specialized Consumer Services

 

 

47

 

 

 

12,078

 

 

 

3.7

%

 

 

720

 

 

 

2.3

%

Metal & Glass Containers

 

 

8

 

 

 

9,796

 

 

 

3.0

%

 

 

2,206

 

 

 

7.0

%

Healthcare Services

 

 

18

 

 

 

9,088

 

 

 

2.8

%

 

 

515

 

 

 

1.6

%

Home Furnishing

 

 

5

 

 

 

8,898

 

 

 

2.7

%

 

 

1,785

 

 

 

5.7

%

Specialty Stores

 

 

21

 

 

 

8,813

 

 

 

2.7

%

 

 

1,064

 

 

 

3.4

%

Home Furnishing Retail

 

 

16

 

 

 

8,794

 

 

 

2.7

%

 

 

1,149

 

 

 

3.7

%

Aerospace & Defense

 

 

7

 

 

 

8,675

 

 

 

2.7

%

 

 

952

 

 

 

3.0

%

Electronic Components

 

 

2

 

 

 

6,658

 

 

 

2.1

%

 

 

466

 

 

 

1.5

%

General Merchandise Stores

 

 

65

 

 

 

6,657

 

 

 

2.1

%

 

 

584

 

 

 

1.9

%

Other (41 industries)

 

 

93

 

 

 

95,304

 

 

 

29.3

%

 

 

10,928

 

 

 

34.8

%

Untenanted properties

 

 

4

 

 

 

 

 

 

 

 

 

62

 

 

 

0.2

%

Total

 

 

696

 

 

$

324,614

 

 

 

100.0

%

 

 

31,386

 

 

 

100.0

%

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 24

 


 

Diversification: Geography

(unaudited, rent percentages based on ABR)

img213941062_8.jpg 

 

State

 

#
Properties

 

 

ABR
($'000s)

 

 

ABR as a
% of Total
Portfolio

 

 

Square Feet ('000s)

 

 

SF as a %
of Total
Portfolio

 

 

 

State

 

#
Properties

 

 

ABR
($'000s)

 

 

ABR as a
% of Total
Portfolio

 

 

Square Feet ('000s)

 

 

SF as a %
of Total
Portfolio

 

TX

 

 

61

 

 

$

32,960

 

 

 

10.2

%

 

 

3,468

 

 

 

11.0

%

 

 

NJ

 

 

3

 

 

$

4,900

 

 

 

1.5

%

 

 

366

 

 

 

1.2

%

IL

 

 

25

 

 

$

19,980

 

 

 

6.2

%

 

 

1,986

 

 

 

6.3

%

 

 

MO

 

 

10

 

 

$

4,822

 

 

 

1.5

%

 

 

959

 

 

 

3.1

%

WI

 

 

34

 

 

$

18,548

 

 

 

5.7

%

 

 

1,884

 

 

 

6.0

%

 

 

WA

 

 

15

 

 

$

4,203

 

 

 

1.3

%

 

 

150

 

 

 

0.5

%

FL

 

 

47

 

 

$

16,350

 

 

 

5.0

%

 

 

859

 

 

 

2.7

%

 

 

LA

 

 

4

 

 

$

3,394

 

 

 

1.0

%

 

 

194

 

 

 

0.6

%

CA

 

 

12

 

 

$

16,035

 

 

 

4.9

%

 

 

1,563

 

 

 

5.0

%

 

 

NE

 

 

6

 

 

$

3,027

 

 

 

0.9

%

 

 

509

 

 

 

1.6

%

OH

 

 

36

 

 

$

14,879

 

 

 

4.6

%

 

 

1,400

 

 

 

4.5

%

 

 

MD

 

 

4

 

 

$

2,903

 

 

 

0.9

%

 

 

293

 

 

 

0.9

%

MI

 

 

34

 

 

$

14,854

 

 

 

4.6

%

 

 

1,411

 

 

 

4.5

%

 

 

NM

 

 

8

 

 

$

2,782

 

 

 

0.9

%

 

 

96

 

 

 

0.3

%

AZ

 

 

9

 

 

$

13,092

 

 

 

4.0

%

 

 

909

 

 

 

2.9

%

 

 

MS

 

 

8

 

 

$

2,759

 

 

 

0.9

%

 

 

334

 

 

 

1.1

%

NC

 

 

35

 

 

$

12,893

 

 

 

4.0

%

 

 

1,308

 

 

 

4.2

%

 

 

IA

 

 

4

 

 

$

2,704

 

 

 

0.8

%

 

 

622

 

 

 

2.0

%

IN

 

 

29

 

 

$

12,746

 

 

 

3.9

%

 

 

1,759

 

 

 

5.6

%

 

 

WV

 

 

16

 

 

$

2,466

 

 

 

0.8

%

 

 

109

 

 

 

0.3

%

MN

 

 

20

 

 

$

12,662

 

 

 

3.9

%

 

 

2,021

 

 

 

6.4

%

 

 

SC

 

 

13

 

 

$

2,461

 

 

 

0.8

%

 

 

308

 

 

 

1.0

%

AL

 

 

49

 

 

$

10,784

 

 

 

3.3

%

 

 

836

 

 

 

2.7

%

 

 

CO

 

 

4

 

 

$

2,408

 

 

 

0.7

%

 

 

125

 

 

 

0.4

%

NY

 

 

26

 

 

$

10,660

 

 

 

3.3

%

 

 

680

 

 

 

2.2

%

 

 

UT

 

 

3

 

 

$

2,345

 

 

 

0.7

%

 

 

280

 

 

 

0.9

%

TN

 

 

42

 

 

$

10,509

 

 

 

3.2

%

 

 

509

 

 

 

1.6

%

 

 

CT

 

 

2

 

 

$

1,690

 

 

 

0.5

%

 

 

55

 

 

 

0.2

%

MA

 

 

5

 

 

$

10,286

 

 

 

3.2

%

 

 

1,026

 

 

 

3.3

%

 

 

MT

 

 

7

 

 

$

1,544

 

 

 

0.5

%

 

 

43

 

 

 

0.1

%

AR

 

 

11

 

 

$

7,391

 

 

 

2.3

%

 

 

282

 

 

 

0.9

%

 

 

NV

 

 

2

 

 

$

1,332

 

 

 

0.4

%

 

 

80

 

 

 

0.3

%

GA

 

 

21

 

 

$

7,375

 

 

 

2.3

%

 

 

1,056

 

 

 

3.4

%

 

 

DE

 

 

4

 

 

$

1,130

 

 

 

0.3

%

 

 

133

 

 

 

0.4

%

OK

 

 

20

 

 

$

7,126

 

 

 

2.2

%

 

 

944

 

 

 

3.0

%

 

 

ND

 

 

2

 

 

$

933

 

 

 

0.3

%

 

 

28

 

 

 

0.1

%

PA

 

 

14

 

 

$

6,689

 

 

 

2.1

%

 

 

1,010

 

 

 

3.2

%

 

 

VT

 

 

2

 

 

$

413

 

 

 

0.1

%

 

 

24

 

 

 

0.1

%

KY

 

 

20

 

 

$

5,813

 

 

 

1.8

%

 

 

672

 

 

 

2.1

%

 

 

WY

 

 

1

 

 

$

307

 

 

 

0.1

%

 

 

21

 

 

 

0.1

%

VA

 

 

17

 

 

$

5,367

 

 

 

1.7

%

 

 

204

 

 

 

0.6

%

 

 

Total US

 

 

695

 

 

$

320,530

 

 

 

98.8

%

 

 

31,155

 

 

 

99.3

%

KS

 

 

10

 

 

$

5,008

 

 

 

1.5

%

 

 

639

 

 

 

2.0

%

 

 

Total Canada

 

 

1

 

 

 

4,084

 

 

 

1.2

%

 

 

231

 

 

 

0.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grand Total

 

 

696

 

 

$

324,614

 

 

 

100.0

%

 

 

31,386

 

 

 

100.0

%

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 25

 


 

Lease Expirations

(unaudited, rent percentages based on ABR)

 

img213941062_9.jpg 

 

Expiration Year

 

# Properties

 

 

ABR
($'000s)

 

 

ABR as a % of Total Portfolio

 

 

Square Feet ('000s)

 

 

SF as a % of Total Portfolio

 

2021

 

 

2

 

 

$

294

 

 

 

0.1

%

 

 

37

 

 

 

0.1

%

2022

 

 

3

 

 

 

2,466

 

 

 

0.8

%

 

 

85

 

 

 

0.3

%

2023

 

 

6

 

 

 

4,867

 

 

 

1.5

%

 

 

515

 

 

 

1.6

%

2024

 

 

11

 

 

 

13,858

 

 

 

4.3

%

 

 

1,689

 

 

 

5.4

%

2025

 

 

19

 

 

 

7,889

 

 

 

2.4

%

 

 

682

 

 

 

2.2

%

2026

 

 

34

 

 

 

18,679

 

 

 

5.8

%

 

 

1,404

 

 

 

4.5

%

2027

 

 

27

 

 

 

23,128

 

 

 

7.1

%

 

 

2,010

 

 

 

6.4

%

2028

 

 

35

 

 

 

23,283

 

 

 

7.2

%

 

 

2,352

 

 

 

7.5

%

2029

 

 

71

 

 

 

21,713

 

 

 

6.7

%

 

 

2,711

 

 

 

8.6

%

2030

 

 

98

 

 

 

52,598

 

 

 

16.2

%

 

 

5,080

 

 

 

16.2

%

2031

 

 

23

 

 

 

7,636

 

 

 

2.3

%

 

 

737

 

 

 

2.3

%

2032

 

 

45

 

 

 

26,218

 

 

 

8.1

%

 

 

3,023

 

 

 

9.6

%

2033

 

 

42

 

 

 

16,866

 

 

 

5.2

%

 

 

1,717

 

 

 

5.5

%

2034

 

 

32

 

 

 

5,850

 

 

 

1.8

%

 

 

376

 

 

 

1.2

%

2035

 

 

16

 

 

 

11,602

 

 

 

3.6

%

 

 

1,552

 

 

 

4.9

%

2036

 

 

84

 

 

 

24,085

 

 

 

7.4

%

 

 

2,608

 

 

 

8.3

%

2037

 

 

24

 

 

 

17,256

 

 

 

5.3

%

 

 

1,367

 

 

 

4.4

%

2038

 

 

33

 

 

 

6,839

 

 

 

2.1

%

 

 

306

 

 

 

1.0

%

2039

 

 

12

 

 

 

9,131

 

 

 

2.8

%

 

 

933

 

 

 

3.0

%

2040

 

 

33

 

 

 

5,906

 

 

 

1.8

%

 

 

317

 

 

 

1.0

%

Thereafter

 

 

42

 

 

 

24,450

 

 

 

7.5

%

 

 

1,823

 

 

 

5.8

%

Untenanted properties

 

 

4

 

 

 

 

 

 

 

 

 

62

 

 

 

0.2

%

Total

 

 

696

 

 

$

324,614

 

 

 

100.0

%

 

 

31,386

 

 

 

100.0

%

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 26

 


 

Portfolio Occupancy

(unaudited, based on square feet)

img213941062_10.jpg 

 

 

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Definitions and Explanations

Adjusted NOI, Annualized Adjusted NOI, Adjusted Cash NOI and Annualized Adjusted Cash NOI: Our reported results and net earnings per diluted share are presented in accordance with accounting principles generally accepted in the United States of America (GAAP). Adjusted NOI and Adjusted Cash NOI are non-GAAP financial measures that we believe are useful to assess property-level performance. We compute Adjusted NOI by adjusting Adjusted EBITDAre (defined below) to exclude general and administrative expenses incurred at the corporate level. Given the net lease nature of our portfolio, we do not incur general and administrative expenses at the property level. To compute Adjusted Cash NOI, we adjust Adjusted NOI to exclude non-cash items included in total revenues and property expenses, such as straight-line rental revenue and other amortization and non-cash items, based on an estimate calculated as if all investment and disposition activity that took place during the quarter had occurred on the first day of the quarter. We then annualize quarterly Adjusted NOI and Adjusted Cash NOI by multiplying each amount by four to compute Annualized Adjusted NOI and Annualized Adjusted Cash NOI, respectively, which are also non-GAAP financial measures. We believe Adjusted NOI and Adjusted Cash NOI provide useful and relevant information because they reflect only those income and expense items that are incurred at the property level and present such items on an unlevered basis. We believe that the exclusion of certain non-cash revenues and expenses from Adjusted Cash NOI is a useful supplemental measure for investors to consider because it will help them to better assess our operating performance without the distortions created by non-cash revenues or expenses. You should not unduly rely on Annualized Adjusted NOI and Annualized Adjusted Cash NOI as they are based on assumptions and estimates that may prove to be inaccurate. Our actual reported Adjusted NOI and Adjusted Cash NOI for future periods may be significantly different from our Annualized Adjusted NOI and Annualized Adjusted Cash NOI. Additionally, our computation of Adjusted NOI and Adjusted Cash NOI may differ from the methodology for calculating these metrics used by companies in our industry, and, therefore, may not be comparable to similarly titled measures reported by other companies.

Annualized Base Rent (ABR): We define ABR as the annualized contractual cash rent due for the last month of the reporting period, excluding the impacts of the short-term rent deferrals and abatements agreed to as a result of tenant requests for rent relief related to the COVID-19 pandemic, and adjusted to remove rent from properties sold during the month and to include a full month of contractual cash rent for properties acquired during the last month.

Cash Cap Rate: Cash Cap Rate represents the estimated first year cash yield to be generated on a real estate investment property, which was estimated at the time of investment based on the contractually specified cash base rent for the first full year after the date of the investment, divided by the purchase price for the property.

EBITDA, EBITDAre, Adjusted EBITDAre, and Annualized Adjusted EBITDAre: EBITDA, EBITDAre, Adjusted EBITDAre, and Annualized Adjusted EBITDAre are non-GAAP financial measures. We compute EBITDA as earnings before interest, income taxes and depreciation and amortization. EBITDA is a measure commonly used in our industry. We believe that this ratio provides investors and analysts with a measure of our performance that includes our operating results unaffected by the differences in capital structures, capital investment cycles and useful life of related assets compared to other companies in our industry. We compute EBITDAre in accordance with the definition adopted by Nareit. Nareit defines EBITDAre as EBITDA excluding gains (loss) from the sales of depreciable property and provisions for impairment on investment in real estate. We believe EBITDA and EBITDAre are useful to investors and analysts because they provide important supplemental information about our operating performance exclusive of certain non-cash and other costs. Adjusted EBITDAre represents EBITDAre, adjusted to reflect revenue producing acquisitions and dispositions for the quarter as if such acquisitions and dispositions had occurred as of the beginning of the quarter, and to exclude certain GAAP income and expense amounts that are either non-cash, such as cost of debt extinguishments or the change in fair value of our earnout liability, or that we believe are one time, or unusual in nature because they relate to unique circumstances or transactions that had not previously occurred and which we do not anticipate occurring in the future, and to eliminate the impact of lease termination fees, and other items that are not a result of normal operations. We then annualize quarterly Adjusted EBITDAre by multiplying it by four to compute Annualized Adjusted EBITDAre. Our reported EBITDA, EBITDAre, Adjusted EBITDAre, and Annualized Adjusted EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider these measures as alternatives to net income or cash flows from operating activities determined in accordance with GAAP.

Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO): FFO and AFFO are non-GAAP measures. We believe the use of FFO and AFFO are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO and AFFO should not be considered alternatives to net income as a performance measure or to cash flows from operations, as reported on our statement of cash flows, or as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. We compute FFO in accordance with the standards established by Nareit, which defines FFO as GAAP net income or loss adjusted to exclude net gains (losses) from sales of certain depreciated real estate assets, depreciation and amortization expense from real estate assets, gains and losses from change in control, and impairment charges related to certain previously depreciated real estate assets. To derive AFFO, we modify the Nareit computation of FFO to include other adjustments to GAAP net income related to certain non-cash and non-recurring revenues and expenses, including straight-line rents, the change in fair value of our earnout liability, lease termination fees, cost of debt extinguishments, amortization of lease intangibles, amortization of debt issuance costs, amortization of net mortgage premiums, (gain) loss on interest rate swaps and other non-cash interest expense, realized gains or losses on foreign currency transactions, internalization expenses, stock based compensation, severance, extraordinary items, and other specified non-cash items. We believe excluding such items assists management and investors in distinguishing whether changes in our operations are due to growth or decline of operations at our properties or from other factors.

 

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Definitions and Explanations (continued)

Gross Debt: We define Gross Debt as total debt plus debt issuance costs and original issuance discount.

Net Debt: Net Debt is a non-GAAP financial measure. We define Net Debt as our Gross Debt less cash and cash equivalents and restricted cash.

Occupancy: Occupancy or a specified percentage of our portfolio that is “occupied” means as of a specified date the quotient of (1) the total rentable square footage of our properties minus the square footage of our properties that are vacant and from which we are not receiving any rental payment, and (2) the total square footage of our properties.

Rent Coverage Ratio: Rent Coverage Ratio means the ratio of tenant-reported or, when available, management’s estimate, based on tenant-reported financial information, of annual earnings before interest, taxes, depreciation, amortization, and cash rent attributable to the leased property (or properties, in the case of a master lease) to the annualized base rental obligation as of a specified date.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, LLC. All rights reserved. 29