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Image source: The Motley Fool. Thursday, July 30, 2026 at 11:00 a.m. ET Director of corporate finance and investor relations - Brent Maedl Chief Executive Officer - John D. Moragne President and Chief Operating Officer - Ryan Albano Chief Financial Officer - Kevin Fennell Operator: Hello. And welcome to Broadstone Net Lease's second quarter 26 earnings conference call. My name is Matthew, and I will be your operator today. Please note that today's call is being recorded. I will now turn the call over to Brent Maedl, director of corporate finance and investor relations at Broadstone. Please go ahead. Brent Maedl: Thank you, everyone, for joining us today for Broadstone Net Lease's second quarter 26 Earnings Call. On today's call, you will hear prepared remarks from Chief Executive Officer, John D. Moragne President and Chief Operating Officer Ryan Albano, and Chief Financial Officer, Kevin Fennell. All 3 will be available for the Q&A portion of this call. As a reminder, the following discussion and answers to questions contain forward-looking statements that are subject to risks and uncertainties that can cause actual results to differ materially due to a variety of factors. We caution you not to place undue reliance on these forward looking statements. For a more detailed discussion of risk factors that may cause such differences, please refer to our SEC filings, including our Form 10-K for the year ended 12/31/2025, and note that such risk factors may be updated in our quarterly SEC filings. Any forward looking statements provided during this conference call are only made as of the date of this call. With that, I will turn the call over to John. John D. Moragne: Thank you, Brent, and good morning, everyone. Second quarter was, in many respects, the quarter we have been building toward for the last few years. 1 that underscores the earnings power of our differentiated growth strategy and the strength of our portfolio, We advanced our committed build to suit platform through both existing and new relationships, raised our full year investment guidance by more than $100 million at the midpoint, lowered our bad debt assumption which is a direct reflection of the sustained improvement in our portfolio performance, and are raising the midpoint of our full year AFFO per share guidance range to $1.56 representing nearly 5% earnings growth over 2025. And subsequent to quarter end, we announced the largest transaction in our history as a public company, Collectively, these results give us a lot of conviction as we enter the back half of the year and into 2027. Before I walk through the quarter, I want to spend a moment on the news we announced on July 8. Because it is emblematic of everything we have been working toward over the last few years. Subsequent to quarter end, we entered into a joint venture to develop an advanced technology facility in Colorado for a Fortune 20 investment grade company. Adding a $303 million to our committed build to suit pipeline. This is a landmark development for 1 of the most creditworthy tenants in the world. And upon rent commencement, this tenant is expected to become Broadstone's largest by ABR. And the investment is expected to be meaningfully accretive to both our 2027 and 2028 earnings. It is a powerful validation of the strategy we have built and the caliber of opportunities our team and our long standing developer relationships continue to source. The facility will be delivered as a powered shell with 100 megawatts of capacity. All of which is already committed to the site today. Under a 15 year triple net lease with 2 5-year extension options and 3% annual rent increases. The transaction generates a straight line yield of approximately 11.6% with initial cash yields that step up as power is delivered. Approximately 8.5% in year 1 rising to approximately 9.7% in year 2. Substantial completion and rent commencement are anticipated by mid-2027. The joint venture owns and controls the land for the full campus. With a site designed to accommodate a second 100 megawatt powered shell building which the tenant holds a right of first refusal. I would frame that second building as future optionality. And not committed pipeline that we are including in our stated numbers today. But it is a real potential opportunity and is exactly the kind of embedded optionality makes our build to suit strategy uniquely valuable. We are funding the project through our build to suit pipeline over the construction period with approximately $233 million of estimated remaining investment. Turning to our broader investment activity. During the second quarter, we invested $91.5 million comprised primarily of $77.3 million in build to suit developments, $13.5 million in transitional capital. With the addition of the Colorado development, our in process build to suit pipeline now stands at approximately $645 million. Providing a laddered, derisked runway of high quality developments scheduled to reach stabilization through 2027. In total, from our build to suit pipeline alone, we expect approximately $17 million of incremental annualized base rent to come online during the third and fourth quarters of this year, with an additional $29 million coming online in the first half of 2027 as the Colorado development and other projects reach rent commencement. That is approximately $46 million of incremental ABR from committed in process developments reaching stabilization between the third quarter of 2026 and the first half of 2027, equating to over 10% growth on our current in place portfolio ABR. That is a degree of forward visibility into growth that is rare in our space. Turning to our in place portfolio. It continues to perform exactly as designed with no significant concerns. We ended the quarter nearly fully occupied with all but 1 of our 766 properties subject to a lease, and 99.9% of base rents collected. Also remained active with dispositions, continuing to opportunistically recycle capital out of mature and noncore assets into the accretive, growth oriented opportunities our pipeline provides. We sold 9 properties during the quarter for gross proceeds of $62 million at a 6.4% capitalization rate on tenanted properties. And subsequent to quarter end, we sold 2 additional properties, for gross proceeds of $4.2 million bringing our year to date total to 12 properties sold for gross proceeds of $78.3 million. At a weighted average capitalization rate of 6.2%. On tenanted properties. I also want to briefly note that we continue to be incredibly excited about Project Triboro. We made meaningful progress this quarter on each of our 3 key work streams, including power, zoning, and leasing, and our conviction in the value this asset can create for shareholders continues to grow. Brian will provide a more detailed update in a few moments. Based on the strength of our year to date performance, the accretive investment activity we have layered in, and the visibility that our build to suit pipeline provides into the back half of this year and into 2027, we are raising our full year 2026 guidance. We now expect AFFO per share of $1.55 to $1.57 revised up from $1.53 to $1.57, with the midpoint of our guidance range moving to 1.56 representing nearly 5% earnings growth over 2025. This raise reflects both the durability of our in place portfolio and our conviction in the pipeline we have assembled. Which gives us a clear line of sight into earnings growth that we have had in our history. On the capital side, the environment is more constructive for us than it has been at any point in the last few years. Our shares are trading at 52-week highs, Our cost of equity has improved materially. Our balance sheet is well structured, and our pipeline of accretive investment opportunities is the deepest it has been since we became a public company. That combination of a strong cost of capital alongside a high quality visible opportunity set is exactly the setup in which disciplined capital deployment can create the most value for shareholders. That said, our approach has not changed. And we will remain disciplined and opportunistic across all of our capital sources. During the quarter, we raised approximately $45.5 million of equity under our ATM program, on a forward basis at a weighted average price of $20.77 per share. And as I noted earlier, we continue to recycle capital through accretive dispositions, with year to date gross proceeds of $78.3 million at a weighted average capitalization rate of 6.2%, Together, this balance of constructive equity capital and accretive dispositions has kept us well funded for the pipeline ahead, while maintaining the financial discipline that has defined our approach over the last few years. Kevin will take you through the details of our balance sheet and funding plan in a moment. The momentum we are carrying into the back half of this year is not accidental. It is the product of our differentiated growth strategy and years of disciplined execution, deliberate portfolio construction, and a unique build to suit platform that is now delivering at scale, with meaningful contributions still ahead in 2027 and 2028. I am excited about what we have in front of us, happy to hand the call over to Ryan and Kevin who will each walk you through more of what is driving our confidence. Ryan Albano: Thank you, John, and good morning, everyone. The Colorado transaction speaks for itself in terms of scale. But I want to spend a moment on what it says about our platform more broadly because the same discipline is showing up across the entire pipeline. Let me walk you through where that pipeline stands today how our in place portfolio is performing, and then turn to Project Triboro, where we made real progress this quarter. Starting with the pipeline, inclusive of Colorado, our committed and in process built to suit investments now total approximately $645 million with a weighted average estimated initial cash yield of approximately 7.9% and a weighted average straight line yield of approximately 9.9% supported by weighted average lease term of approximately 13.7 years and annual rent escalations of approximately 2.7%. These are tenant driven, mission critical developments structured from the outset to mitigate the risks that typically come with ground up development. And they are the engine behind the growth John just walked you through. Turning to our in place portfolio. Occupancy remained strong at nearly 100% on a square footage basis during the quarter, with all but 1 property subject to a lease. Same-store rental revenue grew 2.2% year over year, led by 3.3% growth across our industrial portfolio, and our remaining 2026 lease expirations are modest. At approximately 1.9% of ABR. I also want to spend a moment on our redevelopment activity because it is a good example of value creation that is only possible because of the platform we have built. Having in house development capability trusted external advisers, and a deep network of developers means that when these roles were not limited to selling the asset or holding it vacant. Redevelopment is a real option. 1 we evaluate asset by asset. This quarter, we began redeveloping a functionally obsolete office asset in the Chicago MSA, previously leased to C. H. Robinson into industrial space. The site sits in a dense infill industrial submarket with limited supply and robust tenant demand given its proximity to O'Hare. We have commenced demolition of the existing building and plan to construct a new approximately 156 thousand-square-foot building on-site. Total estimated project investment is approximately $17.9 million. The asset carried original annualized base rent of approximately $1.4 million. We expect stabilized ABR of approximately $2.7 million upon completion nearly double what rent was expiring. With stabilization targeted for the second quarter of 27. We are already seeing interest from tenants in the market and are responding to several RFPs. We added a second redevelopment project at the start of the third quarter. Our former Claire's asset in Hoffman Estates, Illinois along Interstate 90. We evaluated several options for the property, including re leasing, a vacant sale and redevelopment. We believe the market backdrop supports a redevelopment project, scrape and rebuild and we currently are sharpening our evaluation between a full-- any renovation of the existing structure to make it more functional and desirable for future tenants. Separately, continue to market the property for lease or sale while we advance that work as we do with all of our assets. Now turning to Project Triboro. As a reminder, this is a large site in Northeastern Pennsylvania more than 550 acres of land with a committed 1 gigawatt power supply. We made meaningful progress this quarter, and I want to be clear about why we continue to view this as such a unique asset. We did not underwrite Triborough as a single outcome investment and today, we see 3 distinct paths forward each of which creates real value for shareholders. First, we could monetize the land in the near term, either by selling some or all of the individual parcels to industrial developers, as a powered land sale or given the site and power work we have advanced today, to a data center developer. We have received unsolicited interest at valuations that are potentially multiples of our approximately $120 million of invested capital. And we would participate in any upside from a sale under the terms of our joint venture. Second, as originally underwritten, the site can support 4 large box industrial buildings totaling approximately 4.5 million square feet. Representing an estimated $520 million of total development with a mid to high 7% yield on cost range at current market rent levels. Our view is that stabilized valuations would reflect approximately 150 basis points or more of spread relative to that yield on cost. That view is supported by the leasing environment on the ground, where large box products in Northeastern Pennsylvania remain scarce. With well under 2 million square feet of existing 700 thousand-plus-square-foot space in the submarket. And the 2 large box leases signed in the market over the past year closed at rents consistent with our underwriting. Our first building could be delivered as early as mid 28. And third, currently our highest and best use, a hyperscale data center campus with a multiphase build out, power beginning to deliver as early as mid 28 and total project costs in excess of $2.5 billion. The economics here would likely look similar to the transaction we just announced in Colorado. Turning to the work underway to advance all 3 paths. On-site work, we continue to progress earthwork that is common to both an industrial and a data center outcome. Meaning this work supports our optionality across paths rather than committing us to 1. The first of 4 building pads remains on track to be pad ready during the fourth quarter, with the remaining 3 following during 2027. Empower, PPL has completed its required public town hall meetings and has selected both the site for its new substation, and the transmission line path to our property. We currently are reviewing a draft of the electric service agreement. And design and engineering work on our on-site substation continues. The time line remains consistent with our previous expectations. On zoning, we continue to engage constructively with the borough regarding our position that a data center is permitted by right under the property's existing zoning. At the same time, the borough has adopted a zoning ordinance amendment that allows data centers as a conditional use, providing an alternative path to development if needed. We remain focused on working collaboratively with the borough to advance the project while preserving the flexibility afforded by both the by-right and conditional use paths. Along side this work, we have seen increased interest from potential hyperscale tenants and we are currently engaging with several on the project. Overall, we continue to expect clarity on zoning, power, and tenant demand this year, which supports our target of deciding among our 3 paths near term land monetization, industrial development, or hyperscale data center campus, still our view of the site's highest and best use by year end. Taken together, Colorado and Triborough represent the clearest demonstration yet of what this platform can do. Our pipeline has never been deeper, Our external adviser and developer relationships have never been stronger. And the growth visibility we are building into 2027 and 2028 is something very few companies in our space can offer. With that, I will turn the call over to Kevin. Kevin Fennell: Thank you, Ryan. During the quarter, we generated adjusted funds from operations of $78.2 million or $0.39 per share. Representing a 2.6% increase over the second quarter of 25. Results benefited from same store rent growth and from recent investment activity in build to suits reaching stabilization. General and administrative expenses were in line with expectations. With core G&A of $7.3 million pacing nicely to achieve our full year G&A guidance. of $30 million to $31 million. With respect to the balance sheet, we ended the quarter with total debt of $2.7 billion pro form a leverage of 5.9 times. We took 2 steps subsequent to quarter-end to strengthen our financial flexibility and lower our cost of capital. First, we entered into a new $300 million delayed draw term loan with our banks. The facility has a 12-month delayed draw period, a 01/30/2030 initial maturity, comes with 2 12-month extension options, providing us incremental optionality in future years. The delayed draw structure aligns well with our funding needs into 2027 including the Colorado development. Second, in connection with this financing, we amended the pricing grids on our existing bank loans to reduce the applicable margin by 5 basis points. We appreciate the continued commitments from our highly supportive bank group as we evaluate and navigate this highly volatile medium and long term rate backdrop. On the equity side, during the second quarter, we sold 2.2 million shares of common stock on a forward basis at a weighted average gross price of $20.77 per share. Subsequent to quarter end, we sold an additional 1.6 million shares at a weighted average gross price of $21.45 per share. Bringing our total unsettled equity sales to approximately $163 million at a weighted average price of $19.97. We have approximately $197 million of capacity remaining under our existing ATM program, and we continue to evaluate forward sales to more closely match fund our capital with rent commencements from our build to suit pipeline. The combination of our new term loan, existing revolver capacity, and unsettled equity provide us with approximately $1 billion of in place liquidity. Looking ahead, we will continue to assess all potential sources of funding. Managing around a pro form a leverage target of 6x. And optimally finding ourselves in a position to opportunistically reduce pro form a leverage inside of that level. Creating additional capacity to pursue incremental investments as opportunities arise. Last week, our board of directors declared a quarterly dividend of $0.2925 per share payable to holders of record as of 09/30/2026, on or before October 15. Now turning to guidance updates that John alluded to. Given our strong year to date performance and accretive investment activity, we are raising our full year 2026 AFFO guidance to a range of $1.55 to $1.57 per diluted share. This guidance is based on investments in real estate of between $600 million and $800 million revised up from $500 to $625 million. Dispositions of between $100 and $150 million revised up from $75 to $100 million. And finally, total core general and administrative expenses of between $30 and $31 million. Additionally, we are lowering our full year bad debt assumption to 50 basis points from 75 basis points. This reduction is a direct reflection of the work we have done across the business over the last 3 years. Which has improved our tenant base and strengthened our proactive asset management. As always, it is worth reminding everyone that our per share results for the year are sensitive to the timing, amount, and mix of investment and disposition activity as well as any capital markets activities that may occur during the year. Please reference last night's earnings release for additional details we will now open the call up for questions. Operator: We will now begin the question and answer session. Please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please press 1 to raise your hand. To withdraw your question, press 1 again. We ask that you pick up your handset closer to your mouth when asking a question to allow for optimum sound quality If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Anthony Paolone. From JPMorgan. Anthony, your line is open. Please go ahead. Anthony Paolone: Brent. Thank you. I guess my first question is on the Colorado data center deal. I mean, with the yield that high and just, given what seems like a really strong transaction, like, how do you think about keeping something like that long term, or is this something where this becomes a very attractive source of capital in the future? John D. Moragne: Thanks, Tony. Great question. it is something that we talk about with every asset in our portfolio. Every asset that we look at in our PRC in terms of our hold sales strategy, we evaluate what is the right decision to make Should we be holding this for the long term? And as you said, I mean, the yield on this is really attractive. The tenant is very attractive. This is a fantastic opportunity for us to have a Fortune 20 tenant as our number 1 tenant, which we will be very proud to have. But at the same time, every asset is for sale at some price. And so if it makes the most sense for us to recycle that capital at some point in the future, we are certainly open to it, but we will take that day by day, asset by asset. Anthony Paolone: Okay. And, you know, you have a partner on the deal, and I am not sure if there is any sort of a promote structure for them or how that would work. But can you maybe describe that at all, whether they stay in or out or if you own this 100% or if any sort of promote changes that yield as we look ahead. John D. Moragne: Yeah. Promote structure would not change the yield. In terms of what we are getting in on current cash and rent basis. It is what it is. Which is why we have got those upfront yields of for the first year and the first second year in there. But there is a promote structure built in. You know, our partner on the deal does have the ability to get some additional upside if we were to sell this in the future. But just like with the other JVs that we have, we do participate in the upside as well. So, everyone's got incentives aligned in terms of whether we are staying in or we potentially sell this in the future. Anthony Paolone: Okay. Thank you. Operator: Your next question comes from the line of Jay Kornreich from the office of Cantor Fitzgerald. Jay Kornreich: Hey. Thanks. Good morning. I guess, at a broader level, previous goalpost for the annual announced build to suit developments was $350 to $500 million number. And as the platform, you know, has really gotten bigger relationships with developers and tenants have expanded, really highlighted by the recent Colorado $303 million PowerShell deal. How do you think about the next phase of growth for BNL? Maybe what are the new goalposts for volume of annually announced deals, just as the overall platform is running on full cylinders at this point? John D. Moragne: Yeah. 350 to 500 is the goal that we had for the year. We certainly exceeded that with the Colorado deal. But that being said, the Colorado deal is unique in terms of its size and scope. So we are not expecting to sort of continually land $100 million build to suits, every single quarter, quarter in and quarter out. So we do want it to grow over time as the denominator grows. You know, we are not looking to be here 5 years from now, still talking about $350 to $500 million in a committed build-to-suit pipeline. So we want it to grow. We expect it to grow. That is the goal for us to sort of take $350 to 500 incrementally higher in 2027 than 2028 and so forth? But, you know, we are not planning on taking a huge leap forward where all of a sudden it is going to go to $600 to a billion or something like that. It will be more incremental from there. Jay Kornreich: Okay. Appreciate that. And then I guess just, you know, moving to Triborough. Appreciate all the color you gave at the beginning of the call. I guess as things stand now, I guess what is the current level conviction of being able to get approval for the data center is there any thoughts around timeline to getting that? John D. Moragne: Yeah. We are cautiously optimistic since you heard Ryan's comments, we are doing everything we can in terms of working productively with the borough council to sort of work this to a place where it can move forward. We feel very strong in our by right conviction around our opportunity there for data center development. We do have multiple paths to extract value from that opportunity, but we feel cautiously optimistic right now, and we are hopeful that, we are closer than we have been this year to getting some resolution, but, you know, the next couple of months and quarters will determine that. Jay Kornreich: Okay. Appreciate it. I will hold it there. Thank you. Operator: Your next question comes from the line of Caitlin Burrows from the office of Goldman Sachs. Caitlin, your line is open. Please go ahead. Caitlin Burrows: Hi, everyone. Congrats on the quarter and all that you have done this year. I guess maybe just looking at the amount of dispositions you have done, it is in line with guidance. I would not say it is surprising. But when you are considering funding with dispositions versus your option of equity now, I guess, what is made dispositions attractive? Is it just the pricing and the market was there, managing risk? So, yeah, what drove that disposition activity, and then also what will drive the timing of the equity settlement? John D. Moragne: I will take the first part on dispositions and let Kevin take the second. From a disposition scaling everything that you said. Opportunity to sell these at prices that we think are really attractive. Relative to how we think about the value. Risk mitigation continues to play a role in it. You know, we are not necessarily selling things that we are super excited to continue to hold. it is often going to be that clinical noncore or, you know, short remaining lease term or you name it. You know, our asset management team has done a fantastic job of combing through the portfolio, really thinking about where are the opportunities to sell and to do so accretively. And if you look at what we have done this year, $74 million at a 6.2% cap rate, that is a fantastic place for us to be recycling capital, and it continues to trend from the last 4 years in terms of our ability to control our own destiny, sell assets, recycle those proceeds accretively. Kevin Fennell: And now, thankfully, we are in a place where, you know, our equity is far more constructive than it is been at any time in the last 4 years. And so we have been raising incrementally on the ATM. And I will let Kevin take the second part. Yeah. Sure. I think the punch line on settlement is just look at the build-to-suit delivery schedule. We will look to match fund as best as we are able in those quarters where those properties deliver. And I think more macro based, you know, the granular level focus on how we are funding our investments probably a little bit extra intense over here, whether that is a dispo dollar or dollar from the ATM. We are really thinking about it by project So, future settlement alongside rent commencement is the short answer. Caitlin Burrows: Got it. Thanks. And then maybe so it sounds like you guys have 2 redevelopments going on now? I guess I would say those are different from your build to suits in that you do not have the tenant in hand yet. So first, wondering if you can talk about what gives you comfort in those 2 pursuits And then second, as you look into next year, you do have some additional office expirations. Do you think there is further opportunity to redevelop office into industrial, or do you think this is more of like a 1 off opportunity? Ryan Albano: Sure. I will take that 1. This is Ryan. I would say, you know, when we comb the portfolio, we are looking at all assets inclusive of the office bucket for redevelopment opportunities. I would consider these probably more 1-off There are a few others that we are evaluating right now. But I would consider these more of a 1 off situation. More to your first question, you know, we have high conviction in the C.H. Robinson redevelopment. The O'Hare market is very strong. Like I had mentioned in earlier in the presentation. We are already fielding tenant interest in RFPs on the property, and that was even before we started to take the building down. We feel very comfortable with that. I would say the second 1 that we have added as consideration at this point and are pursuing We feel good about the market. We feel good about where our exiting or expiring rent level is versus where market rent levels are. We are still kind of evaluating whether it is a scrape and rebuild or kind of retooling the existing building itself. Think that there are options under both But as we sort of hone our focus there, sharpen the pencil and the numbers, you know, we will have further thoughts and detail to share. That said, as with all of our properties, we will continue to keep this listed for lease or sale. We continue to entertain offers on the property. And we will weigh these 2 against each other like we do for you know, all of our properties under management. Caitlin Burrows: 1 more follow-up. On the, C.H. Robinson location, you guys listed as a target stabilization of May 2027. Does that mean that you expect you will have somebody rent paying May 2027, or just that it will be completed in available by then? Ryan Albano: That we will have rent paying by then. Caitlin Burrows: Thanks. Thanks. Operator: Your next question comes from the line of Ryan Caviola. From the office of Green Street. Ryan, your line is now open. Go ahead. Ryan Caviola: Thank you, and good morning, everyone. The growth in the development pipeline has been very impressive. But just coming to kind of how we were looking, you know, going into 2026. If I remember correctly, there is sort of a soft target to get a larger portion or, you know, maybe closer to half of the investment volume through just regular property acquisitions. Where we stand today, obviously, with the large build-to-suit pipeline and just the $60 million of acquisitions, halfway through the year. Could you just walk us through what shifted throughout 2026 that made developing so much more attractive than buying assets outright? John D. Moragne: Yeah. Actually, we started the year with the expectation that the majority of our activity this year was going to come from the build to suit. The opposite was last year. Last year, we did the majority of our investment activity through regular way acquisitions, sale lease backs, lease assumptions. But we knew coming into the year in terms of the way that we were thinking about our original guidance range for investment activity that the majority of it starting on January 1,, was going to be in build to suit. So the year has played out really exactly as we would expect it. We were not planning on having a huge amount of regular way deal flow. We continue to pursue it. There are a handful of things that we are pretty excited about that should hopefully come in, in the second half of this year. But in terms of the weighting, you know, our expectation for this year and going forward is that the majority of our investment activity will be in our build to suit, which we think is uniquely valuable in the net lease space. Ryan Caviola: Got it. Appreciate that. And then just on the Colorado deal, of seems like the language around labeling it as an advanced technology facility was purposeful. Can you just walk us through, any reasoning behind that, differences between that and just being a traditional data center, or if it just is that with a different label. Anything that could be could be helpful. Thanks. John D. Moragne: Yeah. The terminology that we use is very intentional relative to what the tenant is using it for. This will look and feel like a data center for others in the sense of, you know, if it was going to have a different tenant that was using it. But for this particular tenant and for what they are planning on, this is the way that they think about it, and so that is the way that we think about it. Ryan Caviola: Got it. that is all for me. Thank you. Operator: Your next question comes from the line of Ronald Kamdem from the office of Morgan Stanley. Ronald, your line is now open. Please go ahead. Jenny: Hey. Good morning. This is Jenny on for Ronald. Congrats on the strong quarter. I think on the Colorado deal, I think the yield came in really attractive. I am just curious, do you see more competition or more capital chasing these kinds of deals or do you think this is reputable? Like, that is my question. John D. Moragne: Yeah. So this came out of the strength of our developer relationships. You know, I do not think this is 1 that is going to be out there sort of on a heavily marketed basis in terms of the yields that people are able to get. But, of course, anything that is data center related or data center adjacent right now has just ungodly amounts of money chasing it. And so we feel, you know, very lucky to have the types of relationships in our Rolodex that allow us to, you know, secure opportunities like this 1. Jenny: Cool. I guess my second is I am curious, do you guys have a ROFR for the other campuses of this tenant? Or just this 1 or 2? For now? John D. Moragne: Just this site. So not with respect to the tenant more generally, but with respect to the potential opportunity for this tenant on for another facility on this site. And it is not a roofer for it is we already own the site. So if they are going to execute on their ROFR, it will be, you know, on the other side of the access road from us. Jenny: Okay. Got it. Okay, cool. Thank you. Operator: Your next question comes from the line of Upal Rana from the office of KeyBanc Capital Markets. Paul, your line is now open. Go ahead. Upal Rana: Brent. Thank you. A question for John or Ryan. You know, you have completed only 1 regular acquisition so far this year. Is that a function of you just seeing better opportunities in the build to suit pipeline or something else? And maybe you can talk about what you are seeing in the build to suit today and as well as the regular acquisitions and any color on those types of deals size, pricing, quality would be helpful. Thanks. John D. Moragne: Yeah. I think a lot of people have heard us talk about this throughout the year. We continue to think the best place to be allocating capital, generally speaking, is in the build to suit pipeline. Getting brand new buildings, fantastic tenant credits, you know, better overall economics. You know, when you look at our build to suit pipeline and you are talking about $645 million of estimated project investment at a 7.9% upfront cap rate and a 9.9% you know, straight line yield. You know, those are not the types of deals that you are going to be getting in the regular market right The regular-way market continues to be heavily competitive. there is a lot of buyers out there for a not sort of parabolically increasing amount of deal flow. So the supply demand characteristics continue to put pressure on pricing in those areas. And then you are also going to be looking at potentially dated real estate, maybe some credit in terms of what we can get in our build to suit pipeline. So we continue to be very open to regular deal flow. We have got some deals that we did earlier in the year, some deals that we are looking at right now. But we are very selective. We want to pursue them. We think there are fantastic opportunities sort of add to the return and the investment that we are gonna be doing in a year, serving our clients as they come to us with opportunities that we never want to say no to if the deal makes sense. But, you know, if you are giving me a new dollar today to allocate, and I can only put it in 1 spot, it is going to be in build to suit. Upal Rana: Brent. Thank you. And then, you know, John, you incurred a $1.6 million you know, cost this quarter on a build to suit option that you ultimately did not pursue. You know, what caused you to walk away and maybe should we expect some more of these kind of pursuit costs like this as the development platform scales further? Kevin Fennell: Yeah. Upal, I will take the first part of what the number is. It is just a deposit and some legal costs associated with the deal we walked away from. It was really an embedded option on the deal we did complete. And so in terms of our underwriting, we thought about that as a portion of our first opportunity. We still like the economics in total. And then, you know, in terms of anticipating these in the future, will there be some? I am sure. Do we know when or what they will be? No. I think it is as facts play out. You know? But, John's been saying this for better part of 2 years now that this is what gets us to the table on some of these more interesting opportunities. And so, you know, to the extent that we are able, we will absolutely pursue and finish them off. And if it makes sense for us to opt out of them, we will do that. You know, from time to time as well. Upal Rana: Okay. Brent. Thank you. Operator: Your next question comes from the line of John Kim of the office of BMO Capital Markets. John, your line is now open. Please go ahead. John Kim: Thank you. I mean, it sounds like you are doing more spec development or redevelopment, which is consistent with the value creation that you have been doing on BTS, and that is just spread investing. But I just wanted to know about how you think about IRR thresholds or yields on non build to suit development versus redevelopments and if any additional cost that we should think about as far as hiring more people in house. Ryan Albano: Yeah. I would say when we are looking at opportunities that may be, slightly earlier entry point or have a little less decision around the tenant, which by and large, is not what we are doing or what we are pursuing. But to the extent that we do, I would say we are looking for typical LP style returns associated with that. For any institutional limited partner investor. You know, I would call that, you know, levered IRRs in the 20% plus mark, and MOIC is somewhere in that 2 times range. And we are looking for yield on cost versus stabilized value spread delta in that kind of 150 ish basis point range. John Kim: Okay. And on the Colorado developments I know that there is been a lot of discussion on this. The yield is very attractive. The tenant is attractive. And it just leads us to ask if there is any associated risk when you have a return that is attractive. So I was wondering if there was any CapEx requirements that you foresee in the future Is this an advanced manufacturing type of facility where you will have to again, put in CapEx or maybe be difficult to release down the road? John D. Moragne: Yeah. No material CapEx for us. Our yields are baked into the $300 million that we have already disclosed, and we are not anticipating any changes there. Not a manufacturing facility. You know, this continues to be, as we said, an advanced tech facility that will be used, and for most others, it would be in that sort of data center or data center adjacency area, you know, this is also it is a nice little barbell where it is not only just some of the best yields and economics that we are getting from our investment activity, but this will be easily by far the best credit in our portfolio. So we have got no long term concerns about, you know, the 15-year lease and receiving the benefit of the bargain that we struck up front. John Kim: You. Operator: Your next question comes from the line of Michael Goldsmith with the office of UBS. Michael, your line is now open. Please go ahead. Michael Goldsmith: Good morning. Thanks for taking my questions. Just on these data center leases, if you do not meet the development guidelines, like, how do the economics change? Just trying to understand the risk here. Ryan Albano: Yeah. I would say if there are certain cushions to those deadlines built into the lease agreement. To the extent that there is a time delay on delivery beyond some of those cushions. There are rent credits or rent abatements to it. In until rent actually starts. So it does not really change the yield profile does not really change the overall lease itself. it is more a matter of when does rent start and is it along with some operating expenses abated for a period of time during that time delay? Obviously, that excludes things like force majeure and the like of it. So I would call it not all that dissimilar to you know, what we see in a regular way kind of industrial build to suit. Just with in this case, slightly larger numbers on a monthly run basis. Michael Goldsmith: Got it. Thanks for that. And as a follow-up, you sold a bunch of vacant assets in the quarter, and then I think you still have some near term lease expirations coming up. I am just wondering just trying to understand, you know, what the negotiations are like for some of these near term maturity or leases expiring and have they been productive or could these be potential additional vacant disposals? Thanks. John D. Moragne: Yeah. Very productive. For the 1.9% that we have remaining for the year, I want to say almost all of that or all of it has already been taken care of, but you just got to get through the final inking of the docs to the point where we are already having conversations about 2027 and 28. Lease rolls and focusing on, you know, farther out in the future than where we are today. So the team's done a fantastic job of working through, you know, the first year we have had a little bit more elevated lease rolls than we have had in the past, and it is a good prep going into next year and in 2028 as well. So they have done a fantastic job, and we are in a position for the remainder of 2026 and the next couple of years. Thanks. Michael Goldsmith: And if I can ask 1 more, I do apologize. You had same-store rental revenue growth 2.2% with positive growth in industrial and retail, but other was negative, down 1.6%. What was that? Ryan Albano: Yeah. that is just the dead C.H. Robinson asset Ryan was talking about flipping into the redevelopment bucket. Would have been formerly an office asset now under redevelopment. So that is that rent rolling off. As it turned into that new property for us. Michael Goldsmith: Perfect. Yeah. Thank you very much. Good luck in the back half. Operator: Your next question comes from the line of Michael Gorman from the office of BTIG. Michael, your line is now open. Please go ahead. Zach Light: Good morning. This is Zach Light on for Mike Gorman. Thanks for taking my question. Building on 1 of the earlier questions with the delayed draw term loan in place, what is the thought process regarding the financing structure for larger assets like the Colorado project and the portfolio? And then longer term, as you continue to get additional large opportunities like this, what is the framework for approaching those financing components? Kevin Fennell: Yeah. Look. I think we manage the business in totality, and obviously, large projects have an impact on how we think through that in this case and, frankly, in all cases. The nice thing about what we are doing is we have got, on average, 12 to 14 months of forward visibility. Think about our sources of capital. And so, in this case, you know, that term loan certainly helps out on the backside of Colorado given it is sort of back end weighted. But I think the principle is the same. I mentioned this earlier. there is very granular thinking going on in terms of the mix of debt and equity and the types of debt specifically, as we roll forward. And so as has been the case for us for many years, you know, financial flexibility and opportunistic decision making carries a day. And so we did with these term loans, continues to keep that window open about thinking about longer term financing decisions. Got it. Zach Light: Thank you. that is all from my side. Operator: Your next question comes from the office. Of Eric Borden. Of BMO Capital Markets Eric, your line is now open. Please go ahead. Eric Borden: Brent. Thanks for taking my question. John, in your earlier remarks, you talked about taking the incremental development build-to-suit pipeline, you know, adding additional $300 million to $500 million incrementally, but just curious if you are announcement in Colorado and Project Triboro has kind of opened the door and you have seen more inbounds for more powered land or data center-esque developments come to your door. John D. Moragne: it is something that we look at, but I would say it is not pervasive in any way similar to what we are seeing for industrial and retail. You know, these are certainly more unique 1 off type opportunities that we are seeing with respect to Triborough in Colorado. Eric Borden: And if those opportunities were to, you know, come knocking on your door, would you, you know, contemplate potentially adding them to the pipeline in an effort to kind of keep that 10% growth that you alluded to in your prepared remarks. Just keep that 10% growth consistent going forward? John D. Moragne: Yeah. I mean, we are certainly open to it. In terms of seeing good opportunities, but, we have got to be mindful about you know, does it work for us? You know, going back to the last question, how Kevin would be thinking about financing it, where are we from an equity cost to capital standpoint? Do we need to bring in a joint venture partner? Those projects are always much, much larger than the traditional build to suit opportunities. So it just requires a more nuanced, more thoughtful approach to sort of the longer term financing and return structure. So we are very pleased with what we have today. Very happy to see some good movement in the pipeline for regular-way, I mean, for build to suit industrial deals and retail deals that should be filling in around some of these bigger opportunities like Colorado, and if we see more of those, we will certainly evaluate them and see if it is something that makes sense for us to invest or allocate in allocate to. Eric Borden: Thank you very much. Appreciate the time. Operator: Your final question comes from Caitlin Burrows of Goldman Sachs. Caitlin, your line is open. Go ahead. Caitlin Burrows: Hi again. I feel like the answer could be no since it has not come up yet. But, anyways, I was wondering if you had any updates to give on the Charles River project and the, I guess, seemingly industrial development that you are planning on that site and leasing discussions? Ryan Albano: Sure. On the Charles River site, we have progressed. We are in the process of just about to begin sort of landlord work of separating the 2 parcels and putting in the individualized sort of infrastructure associated with the long term parcel. On the short-term, you know, continue to manage it, and we will be receiving sort of inbound interest on it. We have also started exploring externally leasing activity. So dialogue is occurring. We are still working through site plans and redevelopment efforts and consideration around all of that. So kind of early innings there but at least from the initial work and the things that we plan to accomplish by this point in the year, we are well on track. Caitlin Burrows: I think that is all. Thanks. Operator: There are no further questions at this time. I will now turn the call back to John D. Moragne for closing remarks. John D. Moragne: Thanks all for joining us today. If we do not see you or have a 1-on-1 with you, over the next couple of weeks, hope you have a great rest of the summer, and we will look forward to seeing everyone when conference season kicks back up again in the fall. Thanks all. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Broadstone Net Lease, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadstone Net Lease wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Broadstone Net Lease (BNL) Q2 2026 Earnings Call was originally published by The Motley Fool

Interested in Broadstone Net Lease, Inc.? Here are five stocks we like better. Broadstone raised its 2026 AFFO guidance to $1.55–$1.57 per diluted share after second-quarter AFFO increased 2.6% year over year to $78.2 million, supported by rent growth and stabilized build-to-suit investments. The company added a $303 million Colorado powered-shell development for a Fortune 20 investment-grade tenant, expanding its committed build-to-suit pipeline to approximately $645 million. The 15-year lease is expected to begin generating rent by March 2027. Broadstone increased its 2026 investment outlook to $600–$800 million and expects $100–$150 million of dispositions, while maintaining strong portfolio performance with 99.9% rent collection and occupancy near 100%. 3 Stocks to Ride the Manufacturing Sector's Big Comeback Broadstone Net Lease (NYSE:BNL) raised its 2026 adjusted funds from operations guidance after reporting second-quarter results supported by same-store rent growth, build-to-suit investments reaching stabilization and continued portfolio occupancy near 100%. The company reported adjusted funds from operations, or AFFO, of $78.2 million, or $0.39 per share, for the second quarter, up 2.6% from the year-earlier period. Chief Financial Officer Kevin Fennell said results benefited from same-store rental growth and recently stabilized build-to-suit investments. → Microsoft Just Flipped the AI Spending Narrative Overnight Broadstone raised its full-year AFFO guidance to $1.55 to $1.57 per diluted share, compared with its prior range of $1.53 to $1.57. The revised midpoint of $1.56 represents nearly 5% growth over 2025, according to Chief Executive Officer John Moragne. Following the quarter’s end, Broadstone entered a joint venture to develop an advanced technology facility in Colorado for a Fortune 20 investment-grade company. The transaction adds an estimated $303 million to Broadstone’s committed build-to-suit pipeline and is the largest transaction in the company’s history as a public company, Moragne said. → 2 Unique Space ETFs That Could Upend the Industry The powered-shell facility will have 100 megawatts of capacity, all committed under a 15-year triple-net lease with two five-year extension options and 3% annual rent escalations. Broadstone expects substantial completion and rent commencement by March 2027. The project is expected to generate an approximately 11.6% straight-line yield, with initial cash yields of about 8.5% in the first year and 9.7% in the second year as power is delivered. Moragne said the tenant is expected to become Broadstone’s largest by annualized base rent, or ABR, once rent begins, and that the investment is expected to be meaningfully accretive to earnings in 2027 and 2028. → MarketBeat Week in Review – 07/27- 07/31 The joint venture controls land for a full campus that could support a second 100-megawatt powered-shell building. The tenant has a right of first refusal on that future building, though Broadstone is not including it in its committed pipeline. Including the Colorado project, Broadstone’s committed in-process build-to-suit pipeline totaled approximately $645 million at quarter-end. President and Chief Operating Officer Ryan Albano said the pipeline has a weighted-average estimated initial cash yield of about 7.9%, a weighted-average straight-line yield of roughly 9.9%, a 13.7-year weighted-average lease term and average annual rent escalations of 2.7%. The company expects about $17 million of incremental annualized base rent from its build-to-suit pipeline to begin during the third and fourth quarters of 2026, followed by an additional $29 million in the first half of 2027. In total, Broadstone expects approximately $46 million of ABR from committed developments to stabilize between the third quarter of 2026 and the first half of 2027. Broadstone ended the quarter with all but one of its 766 properties subject to a lease and collected 99.9% of base rents. Same-store rental revenue rose 2.2% year over year, led by 3.3% growth in the industrial portfolio. Remaining lease expirations for 2026 represented about 1.9% of ABR. During the quarter, the company invested $91.5 million, including $77.3 million in build-to-suit development activity and $13.5 million in transitional capital. Broadstone also sold nine properties for $62 million during the second quarter at a 6.4% capitalization rate on tenanted assets. After selling two additional properties subsequent to quarter-end, the company had sold 12 properties year-to-date for $78.3 million at a weighted-average cap rate of 6.2% on tenanted properties. Moragne said the disposition activity allows the company to recycle capital from mature and non-core assets toward its growth pipeline. In response to investor questions, he said the company evaluates potential sales asset by asset, including the Colorado facility, although he described the new project’s tenant and yield as attractive. Broadstone began redeveloping a functionally obsolete Chicago-area office property previously leased to C.H. Robinson into an industrial facility. The company has begun demolishing the existing building and plans to construct an approximately 156,000-square-foot building near O’Hare International Airport. The project is expected to require about $17.9 million of investment. Broadstone expects stabilized ABR of approximately $2.7 million, compared with $1.4 million of annualized base rent at the prior property, with stabilization targeted for the second quarter of 2027. Albano said Broadstone expects to have a rent-paying tenant by that time and has received tenant interest and requests for proposals. The company also began evaluating redevelopment alternatives for its former Claire’s property in Hoffman Estates, Illinois, including either a full rebuild or renovation. Albano said Broadstone will continue marketing the property for lease or sale while it evaluates those options. Broadstone also reported progress at Project Triborough, its more than 550-acre site in northeastern Pennsylvania with a committed one-gigawatt power supply. The company is evaluating three potential paths for the site: selling powered land, developing approximately 4.5 million square feet of industrial space, or pursuing a multistage hyperscale data-center campus. Albano said Broadstone has received unsolicited interest for a powered-land sale at valuations potentially representing multiples of its approximately $120 million of invested capital. Under an industrial scenario, the company estimates total development costs of about $520 million and a yield on cost in the mid-to-high 7% range. A hyperscale data-center campus could entail total costs exceeding $2.5 billion. The first of four building pads is expected to be ready during the fourth quarter, while the remaining pads are planned for 2027. Broadstone said it expects more clarity on zoning, power and tenant demand by year-end before determining the site’s highest and best use. Broadstone ended the quarter with $2.7 billion of total debt and pro forma leverage of 5.9 times. Subsequent to quarter-end, it entered a new $300 million delayed-draw term loan with a 12-month draw period and an initial maturity of Jan. 30, 2030. The company also amended pricing grids on existing bank loans, reducing applicable margins by five basis points. During the second quarter, Broadstone sold 2.2 million shares on a forward basis at a weighted-average gross price of $20.77 per share. It subsequently sold another 1.6 million shares at $21.45 per share. Total unsettled equity sales were approximately $163 million at a weighted-average price of $19.97 per share. Fennell said the company had approximately $1 billion of in-place liquidity when combining the new term loan, revolver capacity and unsettled equity. Broadstone intends to manage toward a pro forma leverage target of about six times. The company increased its 2026 real estate investment guidance to $600 million to $800 million from $500 million to $625 million. It also raised expected dispositions to $100 million to $150 million from $75 million to $100 million and lowered its bad-debt assumption to 50 basis points from 75 basis points. Broadstone’s board declared a quarterly dividend of $0.2925 per share, payable on or before Oct. 15 to shareholders of record as of Sept. 30. Broadstone Net Lease, Inc (NYSE: BNL) is a publicly traded real estate investment trust focused on owning and operating single-tenant commercial properties under long-term net leases. The company specializes in acquiring properties that are leased to creditworthy tenants, allowing it to generate predictable, stable rental income while transferring most operating expenses and responsibilities to its lessees. Broadstone Net Lease’s portfolio spans a variety of property types, including industrial facilities, distribution centers, manufacturing plants, life science and office buildings, and essential retail locations. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Broadstone Net Lease Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a strategic milestone with the largest transaction in the company's history as a public entity, a joint venture for a 100 megawatt powered shell facility in Colorado for one of the world's most creditworthy tenants. Leveraged a differentiated build-to-suit platform to secure high-quality developments, providing rare forward visibility into approximately 10% ABR growth through mid-2027. Maintained high portfolio quality with 99.9% rent collection and nearly 100% occupancy, enabling a reduction in full-year bad debt assumptions to 50 basis points. Executed disciplined capital recycling by selling mature assets at a 6.2% weighted average cap rate to fund accretive, growth-oriented opportunities. Capitalized on a constructive equity environment and improved cost of capital to raise full-year investment guidance by over $100 million at the midpoint. Advanced Project Triboro across power, zoning, and leasing workstreams, maintaining optionality between land monetization, industrial development, and hyperscale data centers. Raised full-year 2026 AFFO per share guidance to $1.55-$1.57, reflecting nearly 5% growth over 2025 driven by portfolio durability and pipeline conviction. Anticipates $46 million of incremental ABR to reach stabilization between Q3 2026 and the first half of 2027 from the committed build-to-suit pipeline. Targets a decision on the highest and best use for Project Triboro by year-end 2026, with potential for a hyperscale data center campus exceeding $2.5 billion in costs. Plans to match-fund capital needs by settling forward equity sales in alignment with rent commencements from the build-to-suit pipeline. Expects the Colorado development to be meaningfully accretive to earnings in 2027 and 2028 upon substantial completion and rent commencement. Incurred a $1.6 million pursuit cost for a build-to-suit option that was ultimately not pursued, characterized as a strategic decision to opt out of an embedded option. Commenced redevelopment of a functionally obsolete office asset in Chicago into industrial space, targeting a stabilized yield nearly double the expiring rent. Secured a new $300 million delayed draw term loan to enhance liquidity and align funding with the 2027 delivery schedule of the Colorado project. Identified a second redevelopment opportunity for a former Claire's asset in Illinois, evaluating a full scrape-and-rebuild versus renovation. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management views the 11.6% straight-line yield and Fortune 20 credit as highly attractive for a long-term hold. Confirmed that while they are proud to have the tenant as their largest by ABR, they remain open to opportunistic capital recycling if valuations warrant a sale. Exceeded the initial $350-$500 million annual target due to the Colorado deal, but noted that deal was unique in size. Expects incremental growth in the pipeline as the company's denominator grows, but does not anticipate a permanent leap to a $1 billion annual run rate. Lease structures include cushions for development deadlines; delays beyond these result in rent credits or abatements rather than yield profile changes. The Colorado facility is delivered as a powered shell, mitigating typical ground-up development risks while securing 100 megawatts of committed capacity. Management explicitly prefers build-to-suit opportunities due to superior economics (7.9% cash yields) compared to a highly competitive regular-way market. Regular-way deal flow remains a secondary focus, used selectively to supplement returns when pricing and asset quality align with strict criteria.

VICTOR, N.Y., July 29, 2026--(BUSINESS WIRE)--Broadstone Net Lease, Inc. (NYSE: BNL) ("BNL", the "Company", "we", "our", or "us"), today announced its operating results for the quarter ended June 30, 2026. MANAGEMENT COMMENTARY "Our second quarter results underscore the earnings power of our portfolio and the continued strength of our investment activity," said John Moragne, BNL’s Chief Executive Officer. "The highlight of the quarter, and arguably of our history as a public company, was the announcement of our $303 million build-to-suit development for a Fortune 20 Investment-Grade Company, a transaction that validates everything we have been building toward and demonstrates what is possible when you combine our differentiated strategy with the execution capabilities of our team and the depth of our developer relationships. With 2.1% in-place rent increases across the portfolio, a committed build-to-suit pipeline of $645 million, and sound balance sheet management, we have the visibility and confidence to raise the midpoint of our full-year AFFO per share guidance range to $1.56, and we enter the back half of 2026 with real conviction in what lies ahead." SECOND QUARTER 2026 HIGHLIGHTS SUMMARIZED FINANCIAL RESULTS FFO, Core FFO, and AFFO are measures that are not calculated in accordance with accounting principles generally accepted in the United States of America ("GAAP"). See the Reconciliation of Non-GAAP Measures later in this press release. REAL ESTATE PORTFOLIO AND INVESTMENT UPDATE As of June 30, 2026, we owned a diversified portfolio of 766 individual net leased commercial properties with 759 properties located in 44 U.S. states and seven properties located in four Canadian provinces, comprising approximately 41.7 million rentable square feet of operational space. As of June 30, 2026, all but one of our properties were subject to a lease, and our properties were occupied by 206 different commercial tenants, with no single tenant accounting for more than 3.8% of our annualized base rent ("ABR"). Properties subject to a lease represent 100.0% of our portfolio’s rentable square footage. The ABR weighted average lease term and ABR weighted average annual rent increase, pursuant to leases on properties in the portfolio as of June 30, 2026, was 9.3 years and 2.1%, respectively. Subsequent to quarter-end and as previously announced on July 8, 2026, we entered into a joint venture to develop an advanced technology facility in Colorado for a Fortune 20 Investment Grade Company, adding an estimated $303 million investment to our committed build-to-suit pipeline. The property will be delivered as a powered shell with 100 megawatts of contracted utility capacity under a 15-year triple-net lease with two five-year extension options and 3% annual rent increases, generating a year-one cash yield of approximately 8.5%, a year-two cash yield of approximately 9.7%, and a straight-line yield of approximately 11.6%. Substantial completion and rent commencement are anticipated by March 2027, at which point the Fortune 20 investment-grade tenant is expected to become BNL's largest tenant. The transaction is expected to be meaningfully accretive to 2027 and 2028 earnings The joint venture owns and controls the land for the full campus, and the site is designed to accommodate a second 100-megawatt powered shell building in which the tenant holds the right of first refusal, providing meaningful future development optionality. For a detailed funding schedule for our committed build-to-suit pipeline, please reference our financial supplemental and investor presentation. BALANCE SHEET AND CAPITAL MARKETS ACTIVITIES As of June 30, 2026, we had total outstanding debt of $2.7 billion, Net Debt of $2.7 billion, a Net Debt to Annualized Adjusted EBITDAre ratio of 6.4x, and a Pro Forma Net Debt to Annualized Adjusted EBITDAre ratio of 5.9x. We had $542.1 million of available capacity on our unsecured revolving credit facility as of quarter end, and no material maturities until 2027. During the second quarter, we sold on a forward basis, 2.2 million shares of common stock at a weighted average gross price per share of $20.77 for estimated gross proceeds of approximately $45.5 million under our ATM Program, none of which has been settled. Subsequent to quarter-end, we sold on a forward basis 1.6 million shares of common stock at a weighted average gross price per share of $21.45 for estimated gross proceeds of approximately $35.0 million under our ATM program. Since the fourth quarter of 2025, we have sold, on a forward basis, 8.2 million shares of common stock at a weighted average gross price per share of $19.97 for estimated gross proceeds of approximately $163.0 million. These sales may be settled, at our discretion, any time before twelve-months of each respective sale date. As of the date of this release, we have approximately $197.0 million of capacity remaining under our $400 million ATM Program. Subsequent to quarter-end, we entered into a new $300 million senior unsecured delayed draw term loan facility (the "Term Loan"). The Term Loan has a twelve-month delayed draw period and matures on January 30, 2030, with two twelve-month extension options. We expect to use proceeds from the Term Loan for investment activity and general corporate purposes. Additionally, we amended the pricing grids on our existing $1.0 billion in senior unsecured term loans and $1.0 billion senior unsecured revolving credit facility (the "Revolving Credit Facility"). Based on our current credit ratings, the applicable SOFR-based margin was lowered to 0.90% from 0.95% for all outstanding term loan borrowings and the new Term Loan, and 0.800% from 0.85% for all Revolving Credit Facility borrowings. DISTRIBUTIONS At its July 23, 2026 meeting, our board of directors declared a quarterly dividend of $0.2925 per common share and OP Unit to holders of record as of September 30, 2026, payable on or before October 15, 2026. DEVELOPMENT PROJECTS The following tables summarize our in-process build-to-suit ("BTS") and redevelopments as of July 29, 2026. 1 Represents our pro-rata share of the estimated first year yield to be generated on a real estate investment, which was computed at the time of investment based on the estimated annual straight-line rental income computed in accordance with GAAP, divided by the estimated total project investment. 2 Development represents our common and preferred equity investments in a consolidated joint venture, and excludes amounts attributed to non-controlling interest holders. 2026 GUIDANCE For 2026, BNL expects to report AFFO of between $1.55 to $1.57 per diluted share, revised up from $1.53 to $1.57 per diluted share, as a result of our portfolio's strong year-to-date performance and accretive investment activity. The guidance is based on the following key assumptions: (i) investments in real estate properties between $600 and $800 million, revised up from $500 to $625 million; (ii) dispositions of real estate properties between $100 and $150 million; revised up from $75 to $100 million; (iii) total core general and administrative expenses between $30 million and $31 million. Our per share results are sensitive to both the timing and amount of real estate investments, property dispositions, and capital markets activities that occur throughout the year. The Company does not provide guidance for the most comparable GAAP financial measure, net income, or a reconciliation of the forward-looking non-GAAP financial measure of AFFO to net income computed in accordance with GAAP, because it is unable to reasonably predict, without unreasonable efforts, certain items that would be contained in the GAAP measure, including items that are not indicative of the Company’s ongoing operations, including, without limitation, potential impairments of real estate assets, net gain/loss on dispositions of real estate assets, changes in allowance for credit losses, and stock-based compensation expense. These items are uncertain, depend on various factors, and could have a material impact on the Company’s GAAP results for the guidance periods. CONFERENCE CALL AND WEBCAST The Company will host its earnings conference call and audio webcast on Thursday, July 30, 2026, at 11:00 a.m. Eastern Time. To access the live webcast, which will be available in listen-only mode, please visit: https://events.q4inc.com/attendee/863656141. If you prefer to listen via phone, U.S. participants may dial: 1-833-461-5787 (toll free) or 1-585-542-9983 (local), meeting ID: 863 656 141. Analysts may pre-register with the following link: https://events.q4inc.com/analyst/863656141?pwd=10S710iX. A unique code will be provided to use when dialing in. A replay of the conference call webcast will be available approximately one hour after the conclusion of the live broadcast. To listen to a replay of the call via the web, which will be available for one year, please visit: https://investors.bnl.broadstone.com. About Broadstone Net Lease, Inc. BNL is an industrial-focused, diversified net lease REIT that invests in primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. Utilizing an investment strategy underpinned by strong fundamental credit analysis and prudent real estate underwriting, as of June 30, 2026, BNL’s diversified portfolio consisted of 766 individual net leased commercial properties with 759 properties located in 44 U.S. states and seven properties located in four Canadian provinces across the industrial, retail, and other property types. Forward-Looking Statements This press release 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 things, our plans, strategies, and prospects, both business and financial. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "outlook," "potential," "may," "will," "should," "could," "seeks," "approximately," "projects," "predicts," "expect," "intends," "anticipates," "estimates," "plans," "would be," "believes," "continues," or the negative version of these words or other comparable words. Forward-looking statements, including our 2026 guidance and assumptions, rent commencement timing, and build-to-suit developments, involve known and unknown risks and uncertainties, which may cause BNL’s actual future results to differ materially from expected results, including, without limitation, risks and uncertainties related to general economic conditions, including but not limited to increases in the rate of inflation and/or fluctuation of interest rates, local real estate conditions, tenant financial health, property investments and acquisitions, and the timing and uncertainty of completing these property investments and acquisitions, and uncertainties regarding future distributions to our stockholders. These and other risks, assumptions, and uncertainties are described in Item 1A "Risk Factors" of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 19, 2026 which you are encouraged to read, and is available on the SEC’s website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The Company assumes no obligation to, and does not currently intend to, update any forward-looking statements after the date of this press release, whether as a result of new information, future events, changes in assumptions, or otherwise. Notice Regarding Non-GAAP Financial Measures In addition to our reported results and net earnings per diluted share, which are financial measures presented in accordance with GAAP, this press release contains and may refer to certain non-GAAP financial measures, including Funds from Operations ("FFO"), Core Funds From Operations ("Core FFO"), AFFO, Net Debt, and Net Debt to Annualized Adjusted EBITDAre. We believe the use of FFO, Core 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, Core 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 believe presenting Net Debt to Annualized Adjusted EBITDAre is useful to investors because it provides information about gross debt less cash and cash equivalents, which could be used to repay debt, compared to our performance as measured using Annualized Adjusted EBITDAre. You should not consider our Annualized Adjusted EBITDAre as an alternative to net income or cash flows from operating activities determined in accordance with GAAP. A reconciliation of non-GAAP measures to the most directly comparable GAAP financial measure and statements of why management believes these measures are useful to investors are included below. Reconciliation of Non-GAAP Measures The following is a reconciliation of net income to FFO, Core FFO, and AFFO for the three months ended June 30, 2026 and March 31, 2026 and for the six months ended June 30, 2026 and 2025. Also presented is the weighted average number of shares of our common stock and OP Units used for the diluted per share computation: 1 Amount includes $1.3 million and $1.4 million of unrealized foreign exchange gain for the three months ended June 30, 2026 and March 31, 2026, respectively, and $2.7 million and ($3.8) million of unrealized foreign exchange gain (loss) for the six months ended June 30, 2026 and June 30, 2025, respectively, primarily associated with our Canadian dollar denominated revolving borrowings. 2 Excludes 1,102,192 and 1,084,415 weighted average shares of unvested restricted common stock for the three months ended June 30, 2026 and March 31, 2026, respectively. Excludes 1,093,353 and 1,044,640 weighted average shares of unvested restricted common stock for the six months ended June 30, 2026 and June 30, 2025, respectively. 3 Excludes $0.3 million from the numerator for the three months ended June 30, 2026 and March 31, 2026, respectively. Excludes $0.6 million from the numerator for the six months ended June 30, 2026 and June 30, 2025, respectively. Our reported results and net earnings per diluted share are presented in accordance with GAAP. We also disclose FFO, Core FFO, and AFFO, each of which are non-GAAP measures. We believe the use of FFO, Core 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, Core 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 the Board of Governors of Nareit, the worldwide representative voice for REITs and publicly traded real estate companies with an interest in the U.S. real estate and capital markets. Nareit 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, and impairment charges related to certain previously depreciated real estate assets. FFO is used by management, investors, and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers, primarily because it excludes the effect of real estate depreciation and amortization and net gains (losses) on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. We compute Core FFO by adjusting FFO, as defined by Nareit, to exclude certain GAAP income and expense amounts that we believe are infrequently recurring, unusual in nature, or not related to its core real estate operations, including write-offs or recoveries of accrued rental income, cost of debt extinguishment, lease termination fees and other non-core income from real estate transactions, non-capitalized demolition and other redevelopment costs, unrealized and realized gains or losses on foreign currency transactions, gain on insurance recoveries, severance and employee transition costs, and other extraordinary items. Exclusion of these items from similar FFO-type metrics is common within the equity REIT industry, and management believes that presentation of Core FFO provides investors with a metric to assist in their evaluation of our operating performance across multiple periods and in comparison to the operating performance of our peers, because it removes the effect of unusual items that are not expected to impact our operating performance on an ongoing basis. We compute AFFO, by adjusting Core FFO for certain revenues and expenses that are non-cash or unique in nature, including straight-line rents, adjustment to provision for credit losses, amortization of lease intangibles, amortization of debt issuance costs, amortization of net mortgage premiums, non-capitalized transaction costs such as acquisition costs related to deals that failed to transact, (gain) loss on interest rate swaps and other non-cash interest expense, deferred taxes, stock-based compensation, and other specified non-cash items. We believe that 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. We use AFFO as a measure of our performance when we formulate corporate goals, and is a factor in determining management compensation. We believe that AFFO 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. Specific to our adjustment for straight-line rents, our leases include cash rents that increase over the term of the lease to compensate us for anticipated increases in market rental rates over time. Our leases do not include significant front-loading or back-loading of payments, or significant rent-free periods. Therefore, we find it useful to evaluate rent on a contractual basis as it allows for comparison of existing rental rates to market rental rates. FFO, Core FFO, and AFFO may not be comparable to similarly titled measures employed by other REITs, and comparisons of our FFO, Core FFO, and AFFO with the same or similar measures disclosed by other REITs may not be meaningful. Neither the SEC nor any other regulatory body has passed judgment on the acceptability of the adjustments to FFO that we use to calculate Core FFO and AFFO. In the future, the SEC, Nareit or another regulatory body may decide to standardize the allowable adjustments across the REIT industry and in response to such standardization we may have to adjust our calculation and characterization of Core FFO and AFFO accordingly. The following is a reconciliation of net income to EBITDA, EBITDAre, Adjusted EBITDAre, and Pro Forma Adjusted EBITDAre, debt to Net Debt and Pro Forma Net Debt, Net Debt to Annualized Adjusted EBITDAre, and Pro Forma Net Debt to Annualized Adjusted EBITDAre as of and for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025: 1 Reflects an adjustment to give effect to all investments during the quarter, including developments that have reached rent commencement, as if they had been made 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 Amount includes non-capitalized demolition costs recognized in connection with demolition of a property being redeveloped for the three months ended June 30, 2026 4 Represents estimated contractual revenues based on in-process development spend to-date. 1 Represents pro forma adjustment for estimated net proceeds from forward sale agreements that have not settled as if they have been physically settled for cash as of the period presented. We define Net Debt as gross debt (total reported debt plus debt issuance costs and original issuance discount) less cash and cash equivalents and restricted cash. We believe that the presentation of Net Debt to Annualized EBITDAre and Net Debt to Annualized Adjusted EBITDAre is useful to investors and analysts because these ratios provide information about gross debt less cash and cash equivalents, which could be used to repay debt, compared to our performance as measured using EBITDAre. 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, as EBITDA excluding gains (losses) 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. EBITDA and EBITDAre are not measures of financial performance under GAAP, and our EBITDA and EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider our EBITDA and EBITDAre as alternatives to net income or cash flows from operating activities determined in accordance with GAAP. We are focused on a disciplined and targeted investment strategy, together with active asset management that includes selective sales of properties. We manage our leverage profile using a ratio of Net Debt to Annualized Adjusted EBITDAre, and Pro Forma Net Debt to Annualized Adjusted EBITDAre, each discussed further below, which we believe is a useful measure of our ability to repay debt and a relative measure of leverage, and is used in communications with our lenders and rating agencies regarding our credit rating. As we fund new investments using our unsecured Revolving Credit Facility, our leverage profile and Net Debt will be immediately impacted by current quarter investments. However, the full benefit of EBITDAre from new investments will not be received in the same quarter in which the properties are acquired. Additionally, EBITDAre for the quarter includes amounts generated by properties that have been sold during the quarter. Accordingly, the variability in EBITDAre caused by the timing of our investments and dispositions can temporarily distort our leverage ratios. We adjust EBITDAre ("Adjusted EBITDAre") for the most recently completed quarter (i) to recalculate as if all investments and dispositions had occurred at the beginning of the quarter, (ii) to exclude certain GAAP income and expense amounts that are either non-cash, such as cost of debt extinguishment, realized or unrealized gains and losses on foreign currency transactions, or gains on insurance recoveries, 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 (iii) to eliminate the impact of lease termination fees and other items that are not a result of normal operations. While investments in build-to-suit developments have an immediate impact to Net Debt, we do not make an adjustment to EBITDAre until the quarter in which the lease commences. We define our Pro Forma Adjusted EBITDAre as Adjusted EBITDAre adjusted to show the impact of estimated contractual revenues based on in-process development spend to-date. Our Pro Forma Net Debt is defined as Net Debt adjusted for estimated net proceeds from forward sale agreements that have not settled as if they have been physically settled for cash as of the period presented. We then annualize quarterly Adjusted EBITDAre and Pro Forma Adjusted EBITDAre by multiplying them by four ("Annualized Adjusted EBITDAre" and "Annualized Pro Forma Adjusted EBITDAre"). You should not unduly rely on this measure as it is based on assumptions and estimates that may prove to be inaccurate. Our actual reported EBITDAre for future periods may be significantly different from our Annualized Adjusted EBITDAre. Adjusted EBITDAre and Annualized Adjusted EBITDAre are not measurements of performance under GAAP, and our Adjusted EBITDAre and Annualized Adjusted EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider our Adjusted EBITDAre and Annualized Adjusted EBITDAre as alternatives to net income or cash flows from operating activities determined in accordance with GAAP. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729337807/en/ Contacts Company Contact: Brent MaedlDirector, Corporate Finance & Investor [email protected] 585.382.8507

VICTOR, N.Y., July 02, 2026--(BUSINESS WIRE)--Broadstone Net Lease, Inc. (NYSE: BNL) ("Broadstone," "BNL," the "Company," "we," "our," or "us"), today announced that it will release its financial and operating results for the quarter ended June 30, 2026, after the market closes on Wednesday, July 29, 2026. The Company will host its earnings conference call and audio webcast on Thursday, July 30, 2026, at 11:00 a.m. Eastern Time. Conference Call and Webcast DetailsTo access the live webcast, which will be available in listen-only mode, please visit: https://events.q4inc.com/attendee/863656141. If you prefer to listen via phone, U.S. participants may dial: 1-833-461-5787 (toll free) or 1-585-542-9983 (local), meeting ID: 863 656 141. Analysts may pre-register with the following link: https://events.q4inc.com/analyst/863656141?pwd=10S710iX. A unique code will be provided to use when dialing in. A replay of the conference call webcast will be available approximately one hour after the conclusion of the live broadcast. To listen to a replay of the call via the web, which will be available for one year, please visit: https://investors.bnl.broadstone.com. About Broadstone Net Lease, Inc.BNL is an industrial-focused, diversified net lease REIT that invests in primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. Utilizing an investment strategy underpinned by strong fundamental credit analysis and prudent real estate underwriting, as of March 31, 2026, BNL’s diversified portfolio consisted of 773 individual net leased commercial properties with 766 properties located in 44 U.S. states and seven properties located in four Canadian provinces across the industrial, retail, and other property types. Forward-Looking StatementsThis press release 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 things, our plans, strategies, and prospects, both business and financial. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "outlook," "potential," "may," "will," "should," "could," "seeks," "approximately," "projects," "predicts," "expect," "intends," "anticipates," "estimates," "plans," "would be," "believes," "continues," or the negative version of these words or other comparable words. Forward-looking statements, including our 2026 guidance and assumptions, involve known and unknown risks and uncertainties, which may cause BNL’s actual future results to differ materially from expected results, including, without limitation, risks and uncertainties related to general economic conditions, including but not limited to increases in the rate of inflation and/or interest rates, local real estate conditions, tenant financial health, property investments and acquisitions, and the timing and uncertainty of completing these property investments and acquisitions, and uncertainties regarding future distributions to our stockholders. These and other risks, assumptions, and uncertainties are described in Item 1A "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which was filed with the SEC on February 19, 2026, which you are encouraged to read, and will be available on the SEC’s website at www.sec.gov. Please note that such Risk Factors will be updated, if necessary, through the filing of Quarterly Reports on Form 10-Q. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The Company assumes no obligation to, and does not currently intend to, update any forward-looking statements after the date of this press release, whether as a result of new information, future events, changes in assumptions, or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260702649917/en/ Contacts Company Contact: Brent MaedlDirector, Corporate Finance & Investor [email protected] 585.382.8507

This article first appeared on GuruFocus. AFFO Growth: 5.6% year-over-year increase. New Development Projects: Over $90 million added year-to-date. Property Acquisitions: $61.2 million in new acquisitions. Build-to-Suit Developments: $99.4 million invested. Incremental Investments: $10.4 million in existing projects. Total Deployment: $171.9 million during the quarter. Initial Cash Cap Rate: 7.2% for new build-to-suit investments. Weighted Average Lease Term: 14 years for new investments. Same-Store Rent Growth: 2.8% year-over-year. Adjusted Funds from Operations (AFFO): $76.9 million or $0.38 per share. G&A Expenses: $7.8 million, a 5.4% increase year-over-year. Pro Forma Leverage: 5.8 times, unchanged quarter-over-quarter. Dividend: $0.2925 per share. 2026 Guidance: AFFO per share range of $1.53 to $1.57. Warning! GuruFocus has detected 10 Warning Signs with BNL. Is BNL fairly valued? Test your thesis with our free DCF calculator. Release Date: April 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Broadstone Net Lease Inc (NYSE:BNL) reported a 5.6% year-over-year growth in adjusted funds from operations (AFFO), indicating strong financial performance. The company successfully deployed $171.9 million during the quarter, including significant investments in new property acquisitions and build-to-suit developments. BNL achieved a 119% recapture rate on lease maturities, demonstrating effective lease management and strong tenant relationships. The inclusion of BNL in the S&P 600 index is expected to improve its cost of equity capital and expand its investor base. The company maintains a robust build-to-suit pipeline with approximately $382 million in high-quality developments, providing visibility to long-term growth. There is uncertainty surrounding Project Triboro due to zoning and infrastructure challenges, which could impact timelines and costs. BNL's guidance assumes 75 basis points of lost rent for the year, despite no bad debt in the first quarter, indicating potential concerns about tenant health. The company faces challenges in aligning seller pricing expectations with its risk profile, which could limit acquisition opportunities. BNL's exposure to the home furnishing sector, although limited, remains a concern due to the sector's flat sales and foot traffic. The potential for political and regulatory hurdles in Project Triboro could delay or complicate development plans. Q: On Project Triboro, are you responsible for the infrastructure improvements, and what might the capital commitment be? A: Ryan Albano, President and COO, explained that the universal site work and infrastructure improvements are necessary regardless of whether the site is used for data center or industrial purposes. The majority of costs specific to the data center are deferred until further along in the decision-making process, with total costs for this year expected to be less than $15 million. Q: Regarding the Boston acquisition, what is your conviction level in finding tenants, and how do you assess the risk involved? A: John Moragne, CEO, stated that the project is attractive due to its location and potential for industrial development. They have already received interest from a tenant for a build-to-suit on-site. The project is expected to yield a low to mid-7% cap rate, with stabilized asset values in the mid to high-5% cap range, making it a potentially lucrative investment. Q: What needs to happen for Project Triboro to move forward with data center development, and is there a risk of the council extending the 180-day review period? A: John Moragne, CEO, mentioned that the council aims to move forward quickly, and the 180-day period is a precaution. The timeline remains unchanged, with expectations to have zoning, power, and tenant interest solidified by the end of 2026. Q: How should we think about equity issuance for the rest of the year, and what conditions might lead to changes in issuance? A: John Moragne, CEO, emphasized that equity issuance will be opportunistic, depending on share price and investment opportunities. The company is encouraged by the improved cost of equity and will consider issuance if attractive opportunities arise. Q: How do you assess the opportunity set for regular acquisitions, and are there changes in cap rates? A: John Moragne, CEO, noted increased transaction activity, particularly in industrial portfolios. The company remains disciplined in capital deployment, focusing on build-to-suit programs and maintaining conservative guidance assumptions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, April 30, 2026 at 11 a.m. ET Chief Executive Officer — John Moragne President and Chief Investment Officer — Ryan Albano Chief Financial Officer — Kevin Fennell John Moragne: Thank you, Brent. Good morning, everyone. After a strong finish to 2025, we carried that momentum into 2026, delivering 5.6% AFFO growth year over year, continuing to execute on our investment strategy, and driving strong operational outcomes across our in-place portfolio. We advanced our committed build-to-suit platform through both existing and new relationships, adding over $90 million in new development projects year to date, invested over $60 million in a compelling acquisition, realized no bad debt during the quarter, and addressed nearly half of our 2026 lease maturities with a recapture rate of 119%—a strong start to the year. Collectively, our results reflect the progress we have made executing on our core building blocks and underscore the strength of our high-quality, mission-critical portfolio and the increasing visibility we are providing to long-term sustainable growth. In total, we deployed $171.9 million during the quarter, including $61.2 million in new property acquisitions, $99.4 million in build-to-suit developments, and $10.4 million in incremental investments in existing transitional capital projects. As previously announced earlier in the quarter, we added two additional build-to-suits, including a new state-of-the-art subsame-day distribution center located in Sarasota, Florida for Amazon, sourced through an existing developer relationship. We also added a retail development for Academy Sports in Magnolia, Texas, a rapidly growing suburb of Houston, that was directly sourced through the tenant and delivered in partnership with a new developer relationship. Continuing our momentum, subsequent to quarter end and as we announced in our earnings release last night, we closed on the land and started funding a new presort battery recycling facility for Tesla that will be located approximately three miles from the Gigafactory in Austin, Texas. Together, these three build-to-suit investments represent high-quality real estate paired with top-tier, investment-grade-quality tenants that blend to a first-year initial cash cap rate of 7.2% with attractive straight-line yields of 8.3%, a weighted average lease term of 14 years, and valuations on each asset that are likely at least 75 to 100 basis points below our development yields, further demonstrating the value creation of our build-to-suit strategy. As anticipated, on April 1, the second of two maintenance, repair, and overhaul hangars for Sierra Nevada Corporation rent commenced, supporting its continued work with the U.S. Air Force replacing an aging fleet of Nightwatch planes. We are proud to be a part of this effort, and I could not be more pleased to have both projects reach stabilization on time and under our budgeted project investments, underscoring our team's ability to execute on our strategy and create value for our shareholders, regardless of broader macroeconomic uncertainty and frequent market-moving headlines. With the completion of Sierra Nevada and the three new projects I just walked through, our build-to-suit pipeline remains in a strong position, with approximately $382 million of high-quality development scheduled to reach stabilization throughout 2026 into 2027, providing visibility to over $28 million of new incremental ABR. Additionally, our opportunity set remains robust, driven largely by existing relationships, and Ryan will go into more detail on our active build-to-suit pipeline in a few moments. During the quarter, we invested $61.2 million in a 60-acre campus approximately 20 miles north of Boston, Massachusetts, tenanted by Charles River Laboratories, a leading global pharmaceutical and biotechnology contract research organization. The sale-leaseback investment includes a long-term 12-year net lease with initial cash rents of $1.5 million and annual rent increases of 3%, and a short-term one-year net lease with cash rents of $4 million, for a blended 9% initial cash cap rate and four years of weighted average lease term. We intend to redevelop approximately 48 acres of the 60-acre campus that are subject to the short-term lease in partnership with the Sanzone Group, as part of our growing build-to-suit development program. We think this transaction is yet another great example of creatively driving additional value. Turning to Project Triborough. As I said during our last call, our goal for 2026 is to advance three key workstreams related to a potential data center development: zoning, power, and tenant identification. All three of these workstreams continue to advance, and our goals and timelines for each have not changed. To date, we have invested approximately $106 million in the project through our transitional capital platform, maintaining meaningful optionality as we evaluate the best path forward. The highest and best use for this site remains a hyperscale data center campus, and our backup option for a multibuilding industrial build-to-suit development also remains intact. We continue to be immensely excited by this opportunity, and by the end of the year, we expect we will be able to decide our best path forward for this project—whether that be a powered land sale, a commitment to stay involved on a powered shell development, or a decision to pursue multibuilding industrial development—and communicate the same to our investors. I am confident in our ability to deliver. Ryan will provide a more detailed update in his remarks, and you can expect we will provide relevant updates as we have them. Finally, to cap off a strong quarter of results and execution, I also want to highlight an important milestone for Broadstone Net Lease, Inc.: our inclusion in the S&P 600 index. We view our inclusion as providing incremental support for our improving cost of equity capital and believe it will help expand our investor base over time, with the increased amount daily liquidity has helped provide. More broadly, we have been encouraged by improving market sentiment around REITs and the progress we have seen in our equity multiple. As our cost of equity improves, it expands our opportunity set and enhances our ability to fund growth in a disciplined and accretive manner. As you saw in our earnings release last night, we raised $71 million of equity under our ATM during the quarter at a weighted average price of $19.13, bringing total gross proceeds to approximately $82.5 million on a forward basis at a weighted average price of $19.20. Going forward, we expect issuances to remain measured and opportunistic as we evaluate our cost of capital alongside our investment opportunities. With that, I will hand the call over to Ryan and Kevin to take you through some of these topics in greater detail. Ryan Albano: Thank you, John, and thank you all for joining us today. As John highlighted, the first quarter clearly demonstrated the effectiveness of our strategy and the strength of our team and portfolio. In today's environment, we believe creativity and structure are just as critical as sourcing. Our focus is on transactions where thoughtful structuring can materially enhance outcomes—driving higher yields, embedding growth, and protecting downside through multiple pathways. A strong example is the $61.2 million investment we completed this quarter with Charles River Laboratories in Wilmington, Massachusetts. The transaction involves the acquisition of a 60-acre campus approximately 20 miles north of Boston, delivering both a long-term accretive sale-leaseback and a strategically structured short-term investment with meaningful future value potential. The two leases together generate approximately $5.5 million of first-year cash rent, representing a blended initial cash cap rate of 9%. As John noted, the first lease is a 12-year net lease, with initial annual rent of $1.5 million and 3% annual rent escalations, nearly 100 basis points above our current and increasing weighted average rent growth. The second lease is a short-term lease with a term of one year covering approximately 48 acres of the campus. This shorter lease duration was intentional, allowing us to preserve near-term cash flow while maintaining flexibility to unlock value through redevelopment. Specifically, the site has the potential to support up to 440 thousand buildable square feet of industrial development. The campus benefits from a prime infill location with access to a population of more than 4 million people within a 30-mile radius, along with strong connectivity to major transportation corridors and labor pools—factors we believe underpin sustained long-term demand. Importantly, we did not underwrite this as a single-outcome investment. The 48-acre parcel provides flexibility for build-to-suit opportunities, effectively extending our pipeline of committed development projects. While we actively pursue this upside, we are supported by a strong underlying land value and the optionality it affords, reinforcing our conviction in this investment. Overall, this transaction highlights our ability to leverage relationships and apply a creative, solutions-oriented approach to structuring investments that deliver attractive initial yields while positioning us to generate additional long-term value. As a broader update on our development pipeline, following the early and under-budget delivery of the two MRO facilities for SNC, we currently have 11 in-process developments representing approximately $382 million of total projected investment. These projects are expected to generate strong initial cash yields of 7.3% and weighted average straight-line yields of 8.4%, supported by a weighted average lease term of 12.9 years and annual rent escalations of 2.5%. Importantly, these tenant-driven developments are structured to mitigate traditional development risks, including construction timing and cost pressures. As we have discussed, build-to-suit remains a core pillar of our differentiated strategy and a key driver of embedded growth visibility. We aim to consistently maintain an active, committed build-to-suit pipeline in the $350 million to $500 million range, and we continue to see a robust set of opportunities to support that run rate. Currently, we are actively evaluating approximately $1.3 billion of build-to-suit opportunities across both existing and new relationships, reinforcing our ability to drive visible, long-term growth. In the stabilized transaction market, we continue to see steady deal flow, including several larger portfolio opportunities, particularly within industrial. That said, we remain disciplined. In many cases, seller pricing expectations—particularly around cap rates—do not align with our view of the underlying risk profile, and we will not pursue volume at the expense of quality. Dispositions remain an important component of our capital allocation strategy. On a routine basis, we use dispositions to refine the portfolio and proactively manage credit, lease rollover, and sector exposure. Opportunistically, when market pricing allows us to recycle capital on an accretive basis, we will act. This was reflected in our $12 million disposition during the quarter at a 5.6% cap rate on an industrial asset with seven years of remaining lease term. Subsequent to quarter end, we completed the sale of three additional assets for total gross proceeds of $54.8 million, including two opportunistic dispositions totaling $50.4 million at a weighted average cap rate of 6.3%, as well as the sale of a small vacant asset as part of our ongoing portfolio management. Turning to our in-place portfolio, same-store performance remains strong with 2.8% year-over-year growth driven by contractual rent increases and successful releasing activity in prior periods. At the start of the year, we had 22 leases scheduled to expire in 2026. We have already addressed half of those leases, achieving a weighted average recapture rate of 119% and an average new lease term of six years on extended leases. For the remaining 11 leases, representing approximately 2% of ABR, we are well underway in our leasing efforts and expect continued positive outcomes. Finally, with respect to our watch list, activity this quarter was relatively uneventful, reflecting the strength of our portfolio and proactive asset management efforts in recent periods. As noted last quarter, Gardner White Furniture assumed all six locations previously occupied by American Signature as part of its bankruptcy process. Since then, we have executed a new 10-year master lease across all six sites, further enhancing what was already a strong outcome. Now shifting our focus to Project Triborough, and building on John's earlier update, it may be helpful to frame where we are in the overall development life cycle. Over the past several months, our efforts have been focused on advancing the site's foundational elements while simultaneously progressing key workstreams across power, zoning, and leasing. This coordinated approach is intended to derisk the project, preserve flexibility around ultimate use, and position us to respond efficiently as milestones are achieved and market opportunities continue to evolve. We are actively advancing the site to a pad-ready condition, including the installation of erosion and sediment controls, clearing and grubbing, mine remediation, and mass grading. This also involves completing the core civil infrastructure required to create developable pads, such as stormwater management systems, internal access roads, and underground utilities—universal site work that must be completed regardless of whether the site is ultimately developed as a hyperscale data center campus or as multiple industrial buildings. We are approaching this site work in a deliberate, phased manner, carefully sequencing activities to align with the project's multiphase nature and preserve maximum flexibility as we pursue value creation for our shareholders. On the power side, this continues to be one of the defining attributes of the site. Importantly, the one gigawatt power commitment is supported by existing generation capacity, and we are not reliant on future power generation buildout to establish that supply. Our current focus is on coordinating the infrastructure required to transmit and deliver the power to the site, as well as developing the on-site infrastructure necessary to receive it as it becomes available. In this regard, PPL plans to construct a new substation switchyard along with approximately eight miles of new transmission line. These upgrades are intended to support broader load growth and new customer demand, including Project Triborough, while also enhancing overall system reliability. PPL currently anticipates commencing construction in 2027 with completion targeted for 2030. At the site level, we plan to develop a dedicated substation to receive the delivered power, with the first phase of energization—consisting of 300 megawatts—currently anticipated to commence between 2027 and Q1 2028, with the additional 700 megawatts to follow thereafter. We remain in close and ongoing coordination with PPL and are actively working through the required electric and construction service agreements necessary to advance Project Triborough. With respect to zoning, in recent months, Alphonse Borough has considered amending its zoning ordinance to expressly allow data centers in the CM-2 District, where Project Triborough is located. We understand Pennsylvania municipalities must accommodate all lawful land uses somewhere within their boundaries, including data centers, but may regulate them through standards such as siting rules, setbacks, and required studies and reports, which are typical for real estate development. As drafted, Project Triborough aligns with the framework contemplated by the proposed amendment. At its most recent meeting, borough council chose not to adopt the amendment as written and instead started a process giving it up to 180 days to address data centers in the ordinance. We will continue working with the council on the amendment during this period. To protect our rights in the meantime, we filed a zoning permit application last week and formally asserted that the proposed data center campus is permitted by right under the current ordinance and may proceed as planned. Accordingly, despite heightened attention on data center development, we remain confident in our path forward and do not expect any impact to our anticipated 2026 timeline. Finally, with respect to leasing efforts, we are currently engaged in active discussions with multiple hyperscale users that have expressed strong interest in Project Triborough. We look forward to providing updates as these discussions progress, and as we gain greater clarity on potential structures and timing. As John has consistently stated, our objective is to have clarity on the optimal path for Project Triborough by the end of 2026 based on the progress achieved relative to several milestones, including zoning, power, and leasing, and we remain focused on maximizing shareholder value while preserving optionality. With that, I will now turn the call over to Kevin. Kevin Fennell: Thank you, Ryan. During the quarter, we generated adjusted funds from operations of $76.9 million, or $0.38 per share, representing a 5.6% increase over 2025. Results benefited from strong same-store rent growth of 2.8% and from recent investment activity and build-to-suits reaching stabilization. The quarter's results also notably benefited from no lost rent realized during the quarter and lower nonreimbursable property expenses. G&A remains well controlled, core expenses totaling $7.8 million during the first quarter. While this represents an increase of 5.4% year over year, this change was largely impacted by one-time or timing-related expenses, including employer tax expense for stock vesting and professional services. We remain well on track to achieve our G&A guidance. With respect to the balance sheet, we ended the quarter with pro forma leverage of 5.8 times, unchanged quarter over quarter. At quarter end, we had approximately $82.5 million of unsettled equity and nearly $600 million available on our revolver. With limited debt maturities through 2027, we maintain sufficient financial flexibility as we look ahead. Last week, our board of directors elected to maintain our $0.[inaudible] dividend per share, payable to holders of record as of 06/30/2026 on or before July 15. Lastly, we are maintaining our 2026 per share guidance range of $1.53 to $1.57, with no changes to our key assumptions. Despite no bad debt in the first quarter, we are also maintaining our full-year assumption of 75 basis points of lost rent within our 2026 guidance and plan to revisit this assumption throughout the year. It is always worth reminding everyone that our per share results for the year are sensitive to the timing, amount, and mix of investment and disposition activity, as well as any capital markets activities that may occur during the year. Please reference last night's earnings release for additional details. We will now open the call for questions. Thank you. Operator: We will now begin the question-and-answer session. If you would like to ask a question today, please do so now by pressing star followed by the number one on your telephone keypad. If you change your mind or you feel like your question has already been answered, you can press star followed by 2 to remove yourself from the queue. Our first question today comes from Anthony Paolone with JPMorgan. Please go ahead. Your line is now open. Anthony Paolone: Great. Thanks, and good morning. Just on Project Triborough, you mentioned that there will be some infrastructure improvements there that are done irrespective of what the ultimate use of the land is. Are you all responsible for that, and just wondering what that capital commitment might be in the meantime. Ryan Albano: Sure. This is Ryan. Yes, we are talking about that universal site work—that is site work and infrastructure improvements that we would be looking at regardless of whether we were going to proceed with data center usage or industrial usage. The infrastructure that would relate specifically to the data center itself, I think the majority of that cost is being pushed off at this point until we are a little further along in our decision-making process. Anthony Paolone: Okay. But it sounds like then the rest of those costs are fairly small, or should we expect bigger checks to be written? Ryan Albano: In the near term, I would say total at the moment, probably for this year, less than $15 million. Anthony Paolone: Got it. And then just my other one relates to the Boston acquisition. Can you talk a bit more around conviction level that you will find some tenants there to take on that risk, Samsung's role in all of that, and also just as a step back—do a transaction like that and Triborough, for instance—your appetite to take on what I guess is sort of land risk for future type of build-to-suits? John Moragne: Yeah. Thanks, Tony. This is John. I think it is a great example of the ways that our strategy can unlock value by creatively structuring solutions for our developer partners and clients. This is not the first time that we have done something that is a little more creatively structured with Sanzone. We did it with Sunset Hills. We are doing it with Triborough. We have it with Charles River, and we have other things in the hopper that we are considering with them. They continue to grow as a fantastic partner for us with our business as we are helping them grow theirs. This project was particularly attractive to us because there were certain things that needed to be solved for the overall transaction to move forward for Charles River. They needed a long-term sale-leaseback for the assets that they were looking to double down on and continue to invest in, and then they had some assets that they were looking to move on from but needed a transition period for. This is a premier location in the Northern Boston market right off of I-93 and that I-93/I-95 corridor—strong industrial area. We have underwritten this, as you heard from Ryan, to 440 thousand square feet of industrial build. It is probably four buildings somewhere in the, give or take, 100 thousand square foot range. You are talking shallow-bay industrial, which is perfect for that space. Our cost basis is slightly below market, so we feel like if we did need to get out of this, there is going to be interest in the site where we are going to be able to make some money on the back end whether we develop it or not. But our intention is to develop this. We think there is a good opportunity for build-to-suit in this area. We have already had interest from one tenant for a build-to-suit on site. The way we pencil this out is we are looking at yield-to-cost in that low- to mid-7% range and, on a stabilized basis, you are going to have values in these assets in the mid- to high-5% cap range. So this potentially is a home run for us, and we are very excited about it. But we also made sure that as we underwrote it, we found good optionality. So to answer your question about appetite for more—if we can find deals like this, we have all sorts of appetite for it because this is the place where our strategy really shows the value of the build-to-suit focus on real estate operation and investment, and not just doing the commodity net lease trade that we have seen often in other places. Anthony Paolone: Okay. Got it. Thank you. Operator: Thank you. Our next question comes from Eric Borden with BMO. Eric, please go ahead. Eric Borden: Hey, good morning. Thanks, everyone. Just kind of going back to Project Triborough and around the council decision to take 180 days to address the data centers in the ordinance. Just curious what needs to happen there to get that cleared and you are able to kind of move forward with data center development. And is there any risk around the council to push that 180-day review even further out? Thank you. John Moragne: Yeah. So 180 days is “up to.” Our understanding is that the council wants to move this forward as quickly as possible, although it was prudent for them to take the 180 days. I think it is important—there are other interests in land in that particular park besides us. So it does not change our timeline. As you heard Ryan say, by the end of 2026, which is what I have been saying for a long time, we are looking to have zoning, power, and tenant interest solidified so we can make the right decision to maximize value. And, you know, sometimes real estate development work can be a little messy—zoning in particular. So none of this is out of the ordinary. None of it is a problem. We will work through it over time, and we expect to stay on the timeline that we have announced without any hiccups. Eric Borden: Great. Thanks. Then you were active on the ATM this quarter. How should we be thinking about equity issuance for the rest of the year, and what conditions would lead you to accelerate or pause the issuance here? Just obviously, share price is a big factor, but just, you know, capital and so on and so forth. Thanks. John Moragne: Yeah. Share price is a big factor for sure. I think “opportunistic” is the right word to use. It is entirely dependent on both share price—which is far more constructive than it was; we have been very excited to see the increase in the returns that we have been providing on the share price, certainly including the 600 index, which was a wonderful surprise—but then it is also opportunistic related to our opportunity set and the pipeline. With the types of deals that we can see, if we find other Charles River-type deals or opportunities to deploy capital in an accretive manner—and as you know, our focus is on direct, relationship-based deals like Charles River and some of these others—put those two things together, and there may be more opportunity to do this in the future. Eric Borden: Right. Appreciate it. Operator: Thank you. Our next question comes from Jay Kornreich with Cantor Fitzgerald. Jay, please go ahead. Jay Kornreich: Hi. Thanks very much. I guess first off, just following up on that last question, how do you assess the opportunity set for regular acquisitions currently? How is the pipeline? Are you seeing any changes in cap rates? And do you see an opportunity to maybe push what is already embedded in guidance throughout the year? What are your thoughts on that? John Moragne: Yeah. We are certainly seeing increased transaction flow—more portfolio deals, more industrial portfolio deals—right down the middle of the fairway for things that we are looking at. We are having an increasing number of conversations with our relationships—tenants, sponsors, things like that—and finding good opportunities. We are being really disciplined about where we deploy capital. There was not a ton that we needed this year to hit our guidance range from a growth standpoint. We are allocating a lot towards the build-to-suit program. As everyone knows, that is where the focus is for us for the long-term, derisked, attractive, accretive growth into the future. But there are incremental deals that are out there that are interesting to us. We are spending time on them. And just like last year, we are starting at a place where our guidance and our assumptions around this are relatively conservative in terms of what we think we can do. And as the opportunity set starts to form and as we have a better view on what the longer-term cost of capital is going to be for us with the better and more constructive stock price, hopefully there is an opportunity for us to do more and potentially push that guidance towards the back half of the year. Jay Kornreich: Okay. Appreciate that. And then, moving to the core part of the company with the industrial build-to-suits, you have announced the target of $350 million to $500 million of new deals annually and also mentioned evaluating a really robust $1.3 billion of new development opportunities. Can you maybe just comment on what is driving such an increase in volume being evaluated? Is it really just the Broadstone Net Lease, Inc. name brand getting stronger in the development space? And within that, is it safe to say you feel pretty good about hitting that target in 2026? John Moragne: Yeah. We feel very good about hitting that target. We have a lot of opportunities we are evaluating right now. I think it is a handful of things. One, I have to give all the credit to the team. Ryan and Will Garner, Ryan Sam DeLemos, Ryan Rehauser—the folks that are really driving the build-to-suit development process for us—are hitting the ground and really making a lot of phone calls, reaching out to their contacts, finding new relationships, really honing in on existing relationships, getting views of entire pipelines of deal flow to see what we have got there. And then it is also that we are getting some calls. Our name is getting out there. People have heard what we have been able to do. The referral network is great. You do a good job for one developer and you provide a solid outcome; they are more likely to recommend you to somebody who is in a different geographic area or operates in a different type of retail or industrial space. So the team is working really hard to build out this pipeline, and then we are also getting a little bit lucky as the name gets out there and the space expands and people are starting to call us as well. So all of those things are putting us in a great spot to execute on the strategy and to hit the numbers that we plan. Jay Kornreich: Okay. Thanks. I will hold it there. Appreciate it. Operator: Thank you. Our next question comes from Caitlin Burrows with Goldman Sachs. Caitlin, please go ahead. Caitlin Burrows: Hi. Good morning, everyone. Ryan Albano: Good morning. Caitlin Burrows: As we think of the incremental build-to-suit announcements and what it means for 2027 completions, can you give some parameters or a range of how many quarters would you say is average for a project to get completed? Obviously, we could look at what you have in the disclosure right now, but is it four? Is it more? I am just wondering if incremental 2026 announcements that are larger than, say, $5 million at this point could open in 2027, or would it be later in 2027? John Moragne: Yeah. Good question. We usually work on an assumption of, on average in the pipeline, about 15 months. Certainly there are ones that come inside that and others that take a little bit more, so call it 12 to 18 months, generally speaking. So there is a handful of things that could come in 2027. But at this point, a lot of our attention has been filling out the pipeline for 2027 so we are having that consistent rent commencement from the build-to-suit pipeline over time. There are a handful of things that are near completion right now that should add to that, and then the stuff that is a little bit higher up in the pipeline would likely be more into 2027. Caitlin Burrows: Got it. Okay. And then maybe just on the tenant side, last quarter you brought up the Claire’s location and how you were evaluating to either sell or re-tenant that, and then also taking another look at the Red Lobster exposure. So wondering if you have any update on either of those. John Moragne: Yeah. Not really. Claire’s—we are still working through the releasing and the sale process. No announcements to make on that front. We still have time to work through it, so we still feel good there. And then on Red Lobster, we have not had any material change in the position. We continue to monitor them, and we continue to look for opportunities for us to reduce that exposure over time while finding accretive ways to dispose those assets. But no material updates on either one. Thanks. Operator: Thank you. Our next question comes from Analyst with Morgan Stanley. Please go ahead. Analyst: Hey. Good morning. This is Jenny on for Ron. Just a follow-up on the tenant health. So the bad debt guide—you still hold 75 basis points for the year given there is no lost rent in Q1? John Moragne: Yeah. So no lost rent in Q1, 100% rent collection, which we feel great about. It is still early—we always have to remind ourselves that it is still the first half of the year—and so we have always taken the position that we will reevaluate our bad debt assumption at least halfway through the year, so at the end of Q2. So, yes, we are still holding it at 75, but that is just our more conservative stance that we have taken historically. We said at the beginning of the year we would leave it until at least after Q2. Analyst: Got it. Just to follow up on the Charles River Laboratories acquisition, how should we think about the tenant health there given the lab has a challenging demand environment? It seems like they had a softer environment recognized in Q4. Maybe talk a little bit more about how you got comfortable with this type of tenant and, on the credit side, how you feel about it. John Moragne: Yeah. We feel pretty good there. We do internal risk ratings, of course, but if you want to look at their agency ratings, S&P has them at BB+, Moody’s at Ba1. They have $4 billion plus of revenue; they are at 2.8 times on a leverage basis, and they have fixed charge coverage of three and a half. So we feel very good. The longer-term piece here—obviously, the short-term piece is the majority of the rents in the near term, the $4 million over the course of the next year—but the other piece of this is fairly small given the overall size of Charles River. It is $1.5 million a year on a 12-year lease, so we feel very comfortable with the credit relative to our exposure. Analyst: Got it. Thank you. Operator: Our next question comes from Michael Goldsmith with UBS. Michael Goldsmith: Good morning. Thanks a lot for taking my question. As you think about the dispositions in 2026—I think you did one in the quarter, you got three subsequent to the quarter—what characteristics most often trigger a sale here? Is it asset age? Is it tenant credit? Is it cap rate arbitrage or just kind of strategic noncore exposure? John Moragne: Yeah. I think it comes on both sides of the barbell for us. There are the risk-mitigation-type sales, which hit a number of things you have talked about in terms of tenant exposure, real estate fundamentals, underlying credit—maybe there was a change in control that we did not particularly love—all sorts of stuff that could put something noncore, as you mentioned, into the bucket of one side of the barbell that we are just looking to reduce over time. And then, as Ryan highlighted in his comments, we are also very happy to do some cap rate arbitrage, and if there is an opportunistic sale that we can have, we are more than willing to do it. We have a couple of the deals that we have done this year that were the result of unsolicited offers to sell at fantastic cap rates. And so part of our job is to make sure that we are accretively recycling our real estate, and when we can do that and put that back to work in a fashion that is going to help us grow our earnings, we are very pleased to do it. Michael Goldsmith: Got it. Thanks so much for that. And then you had that exposure to American Signature and that has been streamlined with Gardner White taking over those boxes. But can you talk a little bit about how much exposure you have to the home furnishing space, how comfortable you are with this exposure, and are there plans to reduce this exposure over time? John Moragne: Yeah. We do not have a huge exposure. I want to say it is in the 2% range, maybe mid-twos—just a couple of handful of tenants in there. We certainly would be open to reducing that exposure over time. If you look at consumer data over the last couple of quarters, home furnishings has been roughly flat in terms of sales and foot traffic. So it is not exactly growing, but it is not shrinking the same way that it was for a period of time once the post-COVID boom fell off and they all started experiencing a little bit of difficulties. But we are very pleased with the resolution for American Signature with Gardner White. We think they have a great team in place and a great business model that they are going to be pushing through with our stores in addition to a handful of additional stores that they got from the American Signature bankruptcy. So we feel like we are in a great spot with that new master lease and 10-year term, but that does not mean that we would not look to reduce that over time depending on where we see demographic trends and sales trends going. Operator: Thank you. The next question comes from Upal Rana with KeyBanc Capital Markets. Please go ahead. Upal Rana: Great. Thank you. Kevin, on equity issuances, you sold $3.7 million during the quarter—I know this topic comes up often, but any updated thoughts there or likelihood to issue more or not would be helpful. Thank you. Kevin Fennell: Yeah, sure. I think John addressed it for the most part a little bit ago, but it is all relative to the opportunity set. We are certainly working with a better cost of capital in the equity slice today versus the last three years, frankly. And so it has opened up the door on the margin, but we are still not looking to pour on in a big way. We get a question very often as an expansion of this, which is, should we be expecting some type of balance sheet reset and large overnight? And the answer is still no. So measured, opportunistic is still the thing. Upal Rana: Okay. Great. That was helpful. And then could you give us an update on the total addressable market for the build-to-suit side? It just seems demand for development has increased broadly recently. So just wondering how that pool has changed, or competition, or any comments on pricing would be helpful. John Moragne: Yes. The total addressable market for us is continuing to increase. Obviously there is the nationwide market, but then we are thinking more in terms of what we are seeing and what we have an opportunity for, and that has been growing quarter over quarter since we initiated the program. There is increased development activity. I think people are continuing to look for opportunities to onshore and nearshore, to increase the sophistication of their facilities. We have seen it with some of the work that we have done as people are getting out of older facilities and looking to put in narrow racking, robotics—all the things that they can do with a build-to-suit that they cannot necessarily do with just walking into a blank spec. And then I think you even saw with today’s GDP numbers that even though the consumer is a little bit more muted than people would like, you are seeing a huge increase in investment on the business side with 10.4% growth on a period-over-period basis. So people are looking to put money to work. They are looking to get into the right types of buildings for their business. They are looking to make investments into the equipment that is going to help them grow their businesses as well. So we see a huge amount of opportunity here, and we are very glad that we got into this space early when we did, and started building the reputation that has allowed us to execute the way that we have. Upal Rana: Okay. Great. That was helpful. Thank you. Operator: Thank you. The next question comes from Analyst with Green Street Advisors. Please go ahead. Analyst: Thank you, and good morning, everyone. In this new world of AI, how do you view your portfolio's durability against any secular changes caused by technological advancements? Do you differ between the retail side of the portfolio and the industrial side and maybe even that small office side that is still in the portfolio? Thanks. John Moragne: Yeah. If there is anything, maybe on the office side—because of utilization, people are going to be reducing headcount or looking at different arrangements—but we think that there is a lot of resiliency built into our industries and our asset classes, and in the retail and restaurant category people are still going to want to go out to eat and shop. They are still going to be looking for those products to be delivered, for the food to be manufactured—all of the things that our real estate provides and supports. Those industries do not concern us. Office, I think there are broader secular trends, and AI is only going to potentially accelerate those. Analyst: Thanks. Appreciate that. And then just one quick one on the disposition front. Just seeing if there is a pricing read-through here on the one asset you sold during the quarter—just noticed there is a mid-5s cap rate with a sub-10-year lease term, which is kind of interesting. So just any color there. Thanks. John Moragne: Yeah. Great opportunistic sale for us. That was an unsolicited offer to sell. We will always look for places where we have got an asset valued in one place and somebody else thinks it is inside—so they are willing to pay more for it. If we can make that arbitrage work, we will. We are not looking at going around selling our best trophy assets. These are places where we have seen good opportunities for assets that we would put in the middle of the pack for us, but somebody else sees it as a gem. If that is the case, we are happy to sell it to them at a mid-5% cap. Analyst: Got it. Thank you. Operator: Thank you. The next question comes from John Kim with BMO Capital Markets. John, please go ahead. John Kim: Thank you. This quarter, you had a 119% recapture rate. That is above what you did last quarter of 110%. Is that mainly driven by industrial leasing? And secondly, do you have visibility on what your current mark-to-market is with your portfolio just to see how recurring this could be going forward? John Moragne: Yeah. Mostly driven by industrial. A lot of times, the retail assets that are going to roll are going to a fixed rent bump as the way they go through, but we have a little bit more ability to mark to market on the industrial side. We are not looking necessarily at the assets that have 10-plus years of term left on a mark-to-market basis—I mean, that is anyone's guess at this point, what is going to be rent in those periods of time. We do look at it, though, for the next two to four years. We have our releasing pretty much under control already for 2026. We have a little bit of a heftier volume for 2027, but we started working on those last year. And so we have a view on a mark-to-market and then also looking out into 2028 and 2029. Generally speaking, without putting a number on it, we feel very good that, on an aggregate basis, we are in a good spot from a same-store growth standpoint for the assets that are going to release moving forward. John Kim: But a 119%—is that something that could occur again, or is this sort of an aberration this quarter? John Moragne: It depends. We have had good results. The last couple of years, we have looked at something like 107% to 108%. So 119% is a little bit higher than what we have seen in the last year or so. Happy to continue to push for those when we can get it; that is maybe a little bit more on the high watermark side. John Kim: And on Project Triborough, it was a very thorough update, which is helpful. I think at your Investor Day, you talked about hyperscaler interest in acquiring that site from you and its premium. Given the process could be elongated and maybe it could end up getting pretty political, is that an option that is still on the table for you, or something that you are considering? John Moragne: Yeah. Our conversations with hyperscalers have primarily been in the zone of leasing—so leasing the sites to them. But powered land sale and us exiting the opportunity still is on the table. There continues to be interest from all sorts of institutional buyers that would like to get access to it. So the hyperscaler conversation has been much more in the vein of leasing, and to the extent that we believe the right value-maximization opportunity is for us to sell, there are plenty of folks that are interested in the site. John Kim: Great. Thank you. Operator: The next question comes from Analyst with BTIG. Please go ahead. Analyst: Hi. This is Zach Light on for Michael Gorman. Thanks for taking my question. Just building on the first question asked and going back to the Boston transaction in the quarter—it is a unique deal relative to typical acquisitions in the past. Given the implications and additional infrastructure spend and build-to-suit development component mentioned in the remarks, was this a broadly marketed process or a relationship-sourced transaction? And is this type of partial structured sale-leaseback with embedded development something that you are actively seeking to replicate, or more of an opportunistic one-off in the quarter? John Moragne: Direct deal all the way. This was not broadly marketed. This was one that we partnered with Sanzone on to find a solution for them and for Charles River to make this work in an attractive way for us. These are the types of deals that we think we absolutely excel at because there are a lot of other folks that would look at something like this and just say no—and they would walk away because it would involve a little bit more work, and it is a little bit more outside of, as I said, the commodity net lease business that prevails in a lot of other places. So we absolutely would look for more opportunities like this. We think we have built a good reputation as someone who can creatively structure deals that work for everybody but still provide a great way for us to grow our earnings and find ways to deploy capital to interesting places that can provide value in the future. This is not something where you can necessarily find opportunities like this just on the listings that are out there from brokers. These are relationship-based type deals, and these are the types of deals that we believe are going to come through our network, and we hope to be able to find more. Because if this plays out the way that we have underwritten and the way that we believe, it is going to be a heck of a success for Broadstone Net Lease, Inc. Analyst: That is great. Thanks. And then just a follow-up, switching over to the portfolio. We noticed industrial exposure continues to climb. As industrial concentration approaches that two-thirds range in the portfolio, how are you thinking about the appropriate ceiling for industrial exposure? And does the mix shift within industrial reflect a specific strategy, or is this simply the composition of available deal flow? John Moragne: I will take the second part first. I think it is a little bit more about deal flow and some of the relationships that we have. Often, our partners will specialize in one particular type of thing versus another, and so you are just going to naturally see more of a particular industrial type than something else if you are working with the same developer or the same sponsor or seller. We saw that with food processing as we grew that over the last few years. We were working with sponsors that did a lot of work in food processing, so it naturally became a bigger percentage. In terms of the mix, we have been 70-plus percent allocated toward industrial from an investment dollar standpoint since 2018–2019, so not really any difference in the overall strategy in the way that we are allocating capital and deploying it. I would expect over time that you should see our industrial exposure grow into that 65% to 75%. As we work our way down on office and the remaining buckets like clinical healthcare and things, you should also expect that retail and restaurants end up in that 25% to 35%. That would be the mix that I would expect in the near to medium term for Broadstone Net Lease, Inc. going forward. Analyst: Okay. Great. Thanks for the time. Operator: Thank you. We have no further questions, and so I will turn the call back over to John Moragne for closing remarks. John Moragne: Great. Thanks, everybody, for the time today. We have enjoyed walking you through our strategy and what we have been working on. We are getting right into the heat of conference season starting next week and all the way through NAREIT in June, so we look forward to seeing many of you in person. Hope you all have a great rest of your day. Thank you. Operator: Thank you, everyone, for joining us today. This concludes our call, and you may now disconnect your lines. Before you buy stock in Broadstone Net Lease, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadstone Net Lease wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Broadstone (BNL) Q1 2026 Earnings Transcript was originally published by The Motley Fool

AFFO rose 5.6% year-over-year to $76.9 million ($0.38/share), driven by 2.8% same-store rent growth, no lost rent in the quarter, controlled G&A, 100% rent collection, and management kept the quarterly dividend and 2026 guidance unchanged. Broadstone deployed $171.9 million in Q1—including $99.4 million in build-to-suits—and said new developments blend to a ~7.2% first-year cash cap rate (8.3% straight-line yield) while targeting an active committed build-to-suit pipeline of $350M–$500M and evaluating about $1.3 billion of opportunities. The company invested $61.2 million in a 60-acre Charles River campus with a 12-year net lease and blended ~9% initial cash cap rate while preserving redevelopment optionality on ~48 acres (potentially ~440,000 buildable sq ft); separately, Project Triboro remains a potential hyperscale data center site with ~1 GW power commitment and management plans to decide the development path by end-2026. Interested in Broadstone Net Lease, Inc.? Here are five stocks we like better. 3 Stocks to Ride the Manufacturing Sector's Big Comeback Broadstone Net Lease (NYSE:BNL) reported first-quarter 2026 adjusted funds from operations (AFFO) growth of 5.6% year over year, supported by same-store rent gains, investment activity, and contributions from build-to-suit developments reaching stabilization. Management also emphasized progress in its build-to-suit platform, early leasing outcomes on 2026 maturities, and ongoing workstreams at its Project Triboro transitional capital investment. Chief Financial Officer Kevin Fennell said the company generated adjusted funds from operations of $76.9 million, or $0.38 per share, up 5.6% from the first quarter of 2025. Fennell attributed the quarter’s performance to “strong same store rent growth of 2.8%” along with “recent investment activity and build-to-suits reaching stabilization.” He added that results “notably benefited from no lost rent realized during the quarter” and lower non-reimbursable property expenses. → Corning Beats Q1 Estimates but Drops 9% on Guidance Miss General and administrative expenses were “well controlled,” Fennell said, with core expenses totaling $7.8 million. While that was a 5.4% year-over-year increase, he said the change was “largely impacted by one-time or timing related expenses, including employer tax expense for stock vesting and professional services,” and reiterated the company remains on track to meet its G&A guidance. On leasing, President and Chief Operating Officer Ryan Albano said same-store performance remained strong at 2.8% year-over-year growth, driven by contractual escalations and prior re-leasing. Albano added that the company began 2026 with 22 leases set to expire during the year and has “already addressed half of those leases,” achieving a weighted average recapture rate of 119% and an average new lease term of six years on extended leases. CEO John Moragne later said the strong recapture performance was “mostly driven by industrial” and called 119% “a little bit higher than what we’ve seen” recently. → Is Oracle Undervalued as Cloud Growth Accelerates? Albano also provided an update on a previously discussed tenant situation, noting that Gardner-White Furniture assumed six former American Signature locations through the bankruptcy process and that Broadstone executed a new “10-year master lease across all six sites.” Moragne said the company deployed $171.9 million during the quarter, including: $61.2 million in new property acquisitions $99.4 million in build-to-suit developments $10.4 million in incremental investments in existing transitional capital projects → Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall? Moragne said Broadstone added two build-to-suits earlier in the quarter: a “sub same-day distribution center” in Sarasota, Florida for Amazon sourced through an existing developer relationship, and a retail development for Academy Sports in Magnolia, Texas sourced through the tenant and delivered with a new developer relationship. He also said that after quarter end the company “closed on the land and started funding a new pre-sort battery recycling facility for Tesla” near the Gigafactory in Austin, Texas. Moragne said the three build-to-suit investments “blend to a first-year initial cash cap rate of 7.2%” with “attractive straight-line yields of 8.3%,” a weighted average lease term of 14 years, and valuations he said were “likely at least 75 basis points-100 basis points below our development yields.” As anticipated, Moragne said the second of two maintenance, repair and overhaul hangars for Sierra Nevada Corporation commenced rent on April 1, supporting work with the U.S. Air Force. He said both projects reached stabilization “on time and under our budgeted project investments.” Albano said the company now has “11 in-process developments representing approximately $382 million of total projected investment,” expected to generate initial cash yields of 7.3% and weighted average straight-line yields of 8.4%, with a weighted average lease term of 12.9 years and annual rent escalations of 2.5%. He said Broadstone aims to keep an active committed build-to-suit pipeline of $350 million to $500 million and is “actively evaluating approximately $1.3 billion of build-to-suit opportunities across both existing and new relationships.” Moragne told analysts he felt “very good about hitting that target” for the platform. During the quarter, Broadstone invested $61.2 million in a 60-acre campus near Boston tenanted by Charles River Laboratories. Moragne said the sale-leaseback includes a 12-year net lease with initial cash rent of $1.5 million and 3% annual rent increases, plus a short-term one-year net lease with cash rent of $4 million, producing a blended 9% initial cash cap rate. The company intends to redevelop about 48 acres subject to the short-term lease “in partnership with the Sansone Group,” Moragne said. Albano said the structure was intentional, preserving near-term cash flow while maintaining flexibility to unlock future redevelopment value. He said the 48-acre portion “has the potential to support up to 440,000 buildable square feet of industrial development.” Moragne described the location as “a premier location in the northern Boston market” and said Broadstone’s cost basis is “slightly below market,” adding the company has already had interest from one tenant for a build-to-suit on the site. He characterized the deal as “direct” and “not broadly marketed,” telling analysts Broadstone would seek similar relationship-driven, creatively structured transactions. Asked about tenant credit, Moragne said management felt “pretty good” about Charles River and cited internal risk ratings and agency ratings, along with financial metrics including “$4 billion+ of revenue,” leverage of 2.8x, and fixed charge coverage of 3.5x. Management reiterated that Project Triboro remains targeted toward a hyperscale data center campus, with a backup option of multi-building industrial development. Moragne said Broadstone has invested about $106 million in the project through its transitional capital platform and expects to decide the “best path forward” by the end of 2026, including potential outcomes such as a powered land sale, a powered shell development, or an industrial development approach. Albano said Broadstone is advancing universal site work—activities that would be required whether the outcome is data center or industrial—such as erosion controls, clearing and grubbing, mine remediation, mass grading, stormwater systems, internal roads, and utilities. In response to a question on capital commitments, Albano said the company expects “less than $15 million” of total Project Triboro spend for this year related to that universal site work, while “the majority” of data center-specific infrastructure costs are being deferred until later in the decision process. On power, Albano said the site’s 1 GW commitment is supported by existing generation capacity, with efforts focused on transmission and delivery infrastructure. He said PPL plans to build a new substation and switchyard and approximately eight miles of new transmission lines, with construction anticipated to begin in summer 2027 and completion targeted for summer 2030. Albano said the company anticipates first phase energization of 300 MW between the fourth quarter of 2027 and first quarter of 2028, with the remaining 700 MW to follow. On zoning, Albano said Allentown Borough considered amending its ordinance to expressly allow data centers in the CM2 district but chose not to adopt the amendment as written, beginning a process allowing up to 180 days to address data centers in the ordinance. Albano said Broadstone filed a zoning permit application asserting the data center campus is permitted by right under the current ordinance, and Moragne said the zoning process did not change the company’s timeline. Fennell said Broadstone ended the quarter at 5.8x pro forma leverage, unchanged from the prior quarter, with “nearly $600 million available on our revolver” and limited debt maturities through the first half of 2027. He also noted approximately $82.5 million of unsettled equity at quarter end. Moragne highlighted Broadstone’s inclusion in the S&P 600 Index, which he said should provide support for the company’s cost of equity and help expand its investor base and liquidity. He said the company raised $71 million of equity under its at-the-market (ATM) program during the quarter at a weighted average price of $19.13, bringing total gross proceeds to about $82.5 million on a forward basis at a weighted average price of $19.02. Both Moragne and Fennell said future equity issuance would remain “measured and opportunistic,” dependent on share price and the opportunity set. The board maintained the quarterly dividend at $0.2925 per share, payable on or before July 15 to shareholders of record as of June 30, Fennell said. The company also maintained its 2026 per-share guidance range of $1.53 to $1.57. Despite reporting no bad debt in the first quarter and 100% rent collection, management said it is maintaining its full-year assumption of 75 basis points of lost rent within 2026 guidance, with Moragne saying the company expects to revisit the assumption after the second quarter. Albano said Broadstone completed a $12 million disposition during the quarter at a 5.6% cap rate on an industrial asset with seven years of remaining lease term. After quarter end, he said the company sold three additional assets for $54.8 million of gross proceeds, including two opportunistic dispositions totaling $50.4 million at a weighted average cap rate of 6.3%, plus a small vacant asset. Moragne said dispositions can serve both risk mitigation and opportunistic cap rate arbitrage, including responding to unsolicited offers. On portfolio mix, Moragne said Broadstone has historically allocated more than 70% of investment dollars to industrial since 2018–2019 and expects industrial exposure to rise into the “65%-75%” range over time, while retail and restaurants could settle in the “25%, 35%” range as office and other sectors decline. Broadstone Net Lease, Inc (NYSE: BNL) is a publicly traded real estate investment trust focused on owning and operating single-tenant commercial properties under long-term net leases. The company specializes in acquiring properties that are leased to creditworthy tenants, allowing it to generate predictable, stable rental income while transferring most operating expenses and responsibilities to its lessees. Broadstone Net Lease’s portfolio spans a variety of property types, including industrial facilities, distribution centers, manufacturing plants, life science and office buildings, and essential retail locations. The article "Broadstone Net Lease Q1 Earnings Call Highlights" was originally published by MarketBeat.

VICTOR, N.Y., April 29, 2026--(BUSINESS WIRE)--Broadstone Net Lease, Inc. (NYSE: BNL) ("BNL", the "Company", "we", "our", or "us"), today announced its operating results for the year and quarter ended March 31, 2026. MANAGEMENT COMMENTARY "We are off to a great start for the year, delivering 5.6% year-over-year AFFO growth during the quarter," said John Moragne, BNL's Chief Executive Officer. "We strengthened our committed build-to-suit pipeline, invested over $60 million in high yielding stabilized acquisitions, and realized no lost rent, highlighting another quarter of diligent execution across the organization. We remain focused on adding to our growing pipeline of build-to-suits and driving long-term sustainable shareholder value." FIRST QUARTER 2026 HIGHLIGHTS SUMMARIZED FINANCIAL RESULTS FFO, Core FFO, and AFFO are measures that are not calculated in accordance with accounting principles generally accepted in the United States of America ("GAAP"). See the Reconciliation of Non-GAAP Measures later in this press release. REAL ESTATE PORTFOLIO AND INVESTMENT UPDATE As of March 31, 2026, we owned a diversified portfolio of 773 individual net leased commercial properties with 766 properties located in 44 U.S. states and seven properties located in four Canadian provinces, comprising approximately 41.9 million rentable square feet of operational space. As of March 31, 2026, all but two of our properties were subject to a lease, and our properties were occupied by 209 different commercial tenants, with no single tenant accounting for more than 3.8% of our annualized base rent ("ABR"). Properties subject to a lease represent 99.8% of our portfolio’s rentable square footage. The ABR weighted average lease term and ABR weighted average annual rent increase, pursuant to leases on properties in the portfolio as of March 31, 2026, was 9.5 years and 2.1%, respectively. During the quarter, we invested $61.2 million in a 60-acre industrial campus approximately 20-miles north of Boston, Massachusetts, tenanted by Charles River Laboratories, a leading global pharmaceutical and biotechnology contract research organization. The sale leaseback investment includes: a long-term, 12-year net lease with initial cash rents of $1.5 million and annual rent increases of 3.0%, and a short-term, 1-year net lease with cash rents of $4.0 million, for a blended 9.0% initial cash cap rate and 4.0 years of weighted average lease term. We intend to redevelop approximately 48-acres of the 60-acre campus that are subject to the short-term lease in partnership with the Sansone Group as part of our build-to-suit development program. Additionally, we reached stabilization on the second of two maintenance, repair and overhaul hangars, commonly referred to as MROs, at Dayton International Airport, supporting Sierra Nevada Corporation’s work with the U.S. Air Force at nearby Wright-Patterson Air Force Base. Contractual rent commencement for the second facility started on April 1, 2026. Subsequent to quarter end, we commenced one additional build-to-suit development for Tesla, Inc, with an estimated total project investment of $30.4 million. The project includes a presort battery recycling facility that will be located approximately 3 miles from the Gigafactory in Austin, Texas. We expect the project to reach stabilization in the fourth quarter of 2027. BALANCE SHEET AND CAPITAL MARKETS ACTIVITIES As of the March 31, 2026, we had total outstanding debt of $2.7 billion, Net Debt of $2.6 billion, a Net Debt to Annualized Adjusted EBITDAre ratio of 6.1x, and a Pro Forma Net Debt to Annualized Adjusted EBITDAre ratio of 5.8x. We had $591.9 million of available capacity on our unsecured revolving credit facility as of quarter end, and no material maturities until 2027. During the first quarter, we sold on a forward basis, 3,718,219 shares of common stock at a weighted average gross price per share of $19.13 for estimated gross proceeds of approximately 71,115,296 under our ATM Program, none of which has been settled. In total, on a forward basis, we have sold 4,339,706 of shares common stock at a weighted average gross price per share of $19.02 for estimated gross proceeds of $82.5 million. These sales may be settled, at our discretion, at any time prior to December 31, 2026. As of the date of this release, we have approximately $281.0 million of capacity remaining under our $400 million 2024 ATM Program. DISTRIBUTIONS At its April 23, 2026 meeting, our board of directors declared a quarterly dividend of $0.2925 per common share and OP Unit to holders of record as of June 30, 2026, payable on or before July 15, 2026. BUILD-TO-SUIT DEVELOPMENT PROJECTS The following table summarizes our in-process and stabilized developments as of April 29, 2026. 2026 GUIDANCE For 2026, BNL expects to report AFFO of $1.53 to $1.57 per diluted share, which remains unchanged. The guidance is based on the following key assumptions: Our per share results are sensitive to both the timing and amount of real estate investments, property dispositions, and capital markets activities that occur throughout the year. The Company does not provide guidance for the most comparable GAAP financial measure, net income, or a reconciliation of the forward-looking non-GAAP financial measure of AFFO to net income computed in accordance with GAAP, because it is unable to reasonably predict, without unreasonable efforts, certain items that would be contained in the GAAP measure, including items that are not indicative of the Company’s ongoing operations, including, without limitation, potential impairments of real estate assets, net gain/loss on dispositions of real estate assets, changes in allowance for credit losses, and stock-based compensation expense. These items are uncertain, depend on various factors, and could have a material impact on the Company’s GAAP results for the guidance periods. CONFERENCE CALL AND WEBCAST The Company will host its earnings conference call and audio webcast on Thursday, April 30, 2026, at 11:00 a.m. Eastern Time. To access the live webcast, which will be available in listen-only mode, please visit: https://events.q4inc.com/attendee/613304153. If you prefer to listen via phone, U.S. participants may dial: 1-404-975-4839 (toll free) or 1-646-844-6383 (local), access code 797103. International access numbers are viewable here: https://www.netroadshow.com/conferencing/global-numbers?confId=97882. A replay of the conference call webcast will be available approximately one hour after the conclusion of the live broadcast. To listen to a replay of the call via the web, which will be available for one year, please visit: https://investors.bnl.broadstone.com. About Broadstone Net Lease, Inc. BNL is an industrial-focused, diversified net lease REIT that invests in primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. Utilizing an investment strategy underpinned by strong fundamental credit analysis and prudent real estate underwriting, as of March 31, 2026, BNL’s diversified portfolio consisted of 773 individual net leased commercial properties with 766 properties located in 44 U.S. states and seven properties located in four Canadian provinces across the industrial, retail, and other property types. Forward-Looking Statements This press release 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 things, our plans, strategies, and prospects, both business and financial. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "outlook," "potential," "may," "will," "should," "could," "seeks," "approximately," "projects," "predicts," "expect," "intends," "anticipates," "estimates," "plans," "would be," "believes," "continues," or the negative version of these words or other comparable words. Forward-looking statements, including our 2026 guidance and assumptions, rent commencement timing, and build-to-suit developments, involve known and unknown risks and uncertainties, which may cause BNL’s actual future results to differ materially from expected results, including, without limitation, risks and uncertainties related to general economic conditions, including but not limited to increases in the rate of inflation and/or fluctuation of interest rates, local real estate conditions, tenant financial health, property investments and acquisitions, and the timing and uncertainty of completing these property investments and acquisitions, and uncertainties regarding future distributions to our stockholders. These and other risks, assumptions, and uncertainties are described in Item 1A "Risk Factors" of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 19, 2026 which you are encouraged to read, and is available on the SEC’s website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The Company assumes no obligation to, and does not currently intend to, update any forward-looking statements after the date of this press release, whether as a result of new information, future events, changes in assumptions, or otherwise. Notice Regarding Non-GAAP Financial Measures In addition to our reported results and net earnings per diluted share, which are financial measures presented in accordance with GAAP, this press release contains and may refer to certain non-GAAP financial measures, including Funds from Operations ("FFO"), Core Funds From Operations ("Core FFO"), AFFO, Net Debt, and Net Debt to Annualized Adjusted EBITDAre. We believe the use of FFO, Core 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, Core 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 believe presenting Net Debt to Annualized Adjusted EBITDAre is useful to investors because it provides information about gross debt less cash and cash equivalents, which could be used to repay debt, compared to our performance as measured using Annualized Adjusted EBITDAre. You should not consider our Annualized Adjusted EBITDAre as an alternative to net income or cash flows from operating activities determined in accordance with GAAP. A reconciliation of non-GAAP measures to the most directly comparable GAAP financial measure and statements of why management believes these measures are useful to investors are included below. Reconciliation of Non-GAAP Measures The following is a reconciliation of net income to FFO, Core FFO, and AFFO for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025. Also presented is the weighted average number of shares of our common stock and OP Units used for the diluted per share computation: Our reported results and net earnings per diluted share are presented in accordance with GAAP. We also disclose FFO, Core FFO, and AFFO, each of which are non-GAAP measures. We believe the use of FFO, Core 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, Core 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 the Board of Governors of Nareit, the worldwide representative voice for REITs and publicly traded real estate companies with an interest in the U.S. real estate and capital markets. Nareit 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, and impairment charges related to certain previously depreciated real estate assets. FFO is used by management, investors, and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers, primarily because it excludes the effect of real estate depreciation and amortization and net gains (losses) on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. We compute Core FFO by adjusting FFO, as defined by Nareit, to exclude certain GAAP income and expense amounts that we believe are infrequently recurring, unusual in nature, or not related to its core real estate operations, including write-offs or recoveries of accrued rental income, cost of debt extinguishments, lease termination fees and other non-core income from real estate transactions, gain on insurance recoveries, severance and employee transition costs, and other extraordinary items. Exclusion of these items from similar FFO-type metrics is common within the equity REIT industry, and management believes that presentation of Core FFO provides investors with a metric to assist in their evaluation of our operating performance across multiple periods and in comparison to the operating performance of our peers, because it removes the effect of unusual items that are not expected to impact our operating performance on an ongoing basis. We compute AFFO, by adjusting Core FFO for certain revenues and expenses that are non-cash or unique in nature, including straight-line rents, adjustment to provision for credit losses, amortization of lease intangibles, amortization of debt issuance costs, amortization of net mortgage premiums, non-capitalized transaction costs such as acquisition costs related to deals that failed to transact, (gain) loss on interest rate swaps and other non-cash interest expense, deferred taxes, stock-based compensation, and other specified non-cash items. We believe that 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. We use AFFO as a measure of our performance when we formulate corporate goals, and is a factor in determining management compensation. We believe that AFFO 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. Specific to our adjustment for straight-line rents, our leases include cash rents that increase over the term of the lease to compensate us for anticipated increases in market rental rates over time. Our leases do not include significant front-loading or back-loading of payments, or significant rent-free periods. Therefore, we find it useful to evaluate rent on a contractual basis as it allows for comparison of existing rental rates to market rental rates. FFO, Core FFO, and AFFO may not be comparable to similarly titled measures employed by other REITs, and comparisons of our FFO, Core FFO, and AFFO with the same or similar measures disclosed by other REITs may not be meaningful. Neither the SEC nor any other regulatory body has passed judgment on the acceptability of the adjustments to FFO that we use to calculate Core FFO and AFFO. In the future, the SEC, Nareit or another regulatory body may decide to standardize the allowable adjustments across the REIT industry and in response to such standardization we may have to adjust our calculation and characterization of Core FFO and AFFO accordingly. The following is a reconciliation of net income to EBITDA, EBITDAre, Adjusted EBITDAre, and Pro Forma Adjusted EBITDAre, debt to Net Debt and Pro Forma Net Debt, Net Debt to Annualized Adjusted EBITDAre, and Pro Forma Net Debt to Annualized Adjusted EBITDAre as of and for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025: We define Net Debt as gross debt (total reported debt plus debt issuance costs and original issuance discount) less cash and cash equivalents and restricted cash. We believe that the presentation of Net Debt to Annualized EBITDAre and Net Debt to Annualized Adjusted EBITDAre is useful to investors and analysts because these ratios provide information about gross debt less cash and cash equivalents, which could be used to repay debt, compared to our performance as measured using EBITDAre. 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, as EBITDA excluding gains (losses) 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. EBITDA and EBITDAre are not measures of financial performance under GAAP, and our EBITDA and EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider our EBITDA and EBITDAre as alternatives to net income or cash flows from operating activities determined in accordance with GAAP. We are focused on a disciplined and targeted investment strategy, together with active asset management that includes selective sales of properties. We manage our leverage profile using a ratio of Net Debt to Annualized Adjusted EBITDAre, and Pro Forma Net Debt to Annualized Adjusted EBITDAre, each discussed further below, which we believe is a useful measure of our ability to repay debt and a relative measure of leverage, and is used in communications with our lenders and rating agencies regarding our credit rating. As we fund new investments using our unsecured Revolving Credit Facility, our leverage profile and Net Debt will be immediately impacted by current quarter investments. However, the full benefit of EBITDAre from new investments will not be received in the same quarter in which the properties are acquired. Additionally, EBITDAre for the quarter includes amounts generated by properties that have been sold during the quarter. Accordingly, the variability in EBITDAre caused by the timing of our investments and dispositions can temporarily distort our leverage ratios. We adjust EBITDAre ("Adjusted EBITDAre") for the most recently completed quarter (i) to recalculate as if all investments and dispositions had occurred at the beginning of the quarter, (ii) to exclude certain GAAP income and expense amounts that are either non-cash, such as cost of debt extinguishments, realized or unrealized gains and losses on foreign currency transactions, or gains on insurance recoveries, 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 (iii) to eliminate the impact of lease termination fees and other items that are not a result of normal operations. While investments in build-to-suit developments have an immediate impact to Net Debt, we do not make an adjustment to EBITDAre until the quarter in which the lease commences. We define our Pro Forma Adjusted EBITDAre as Adjusted EBITDAre adjusted to show the impact of estimated contractual revenues based on in-process development spend to-date. Our Pro Forma Net Debt is defined as Net Debt adjusted for estimated net proceeds from forward sale agreements that have not settled as if they have been physically settled for cash as of the period presented. We then annualize quarterly Adjusted EBITDAre and Pro Forma Adjusted EBITDAre by multiplying them by four ("Annualized Adjusted EBITDAre" and "Annualized Pro Forma Adjusted EBITDAre"). You should not unduly rely on this measure as it is based on assumptions and estimates that may prove to be inaccurate. Our actual reported EBITDAre for future periods may be significantly different from our Annualized Adjusted EBITDAre. Adjusted EBITDAre and Annualized Adjusted EBITDAre are not measurements of performance under GAAP, and our Adjusted EBITDAre and Annualized Adjusted EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider our Adjusted EBITDAre and Annualized Adjusted EBITDAre as alternatives to net income or cash flows from operating activities determined in accordance with GAAP. View source version on businesswire.com: https://www.businesswire.com/news/home/20260429830039/en/ Contacts Company Contact: Brent Maedl Director, Corporate Finance & Investor Relations [email protected] 585.382.8507