VICTOR, N.Y.--(BUSINESS WIRE)-- #acquisitions--Broadstone Net Lease Announces Two Additional Build-to-Suit Developments for $62.1 million. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________________________________ FORM 10-K __________________________________________________________________ (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to ...

Financial Data and Key Metrics Changes - The company generated adjusted funds from operations (AFFO) of $296.3 million or $1.49 per share for the full year, representing a 4.2% increase year-over-year [30] - For Q4 2025, adjusted funds from operations were $75.8 million or $0.38 per share, a 5.6% increase over Q4 2024 [30] - Lost rent totaled 31 basis points for the year, down from 67 basis points during 2024, indicating improved portfolio performance [30] Business Line Data and Key Metrics Changes - The company maintained a solid portfolio performance, ending the year 99% leased with 99.8% of rents collected [8] - Approximately $748.4 million was deployed in investments, including $429.9 million in new property acquisitions and $209.3 million in build-to-suit developments [8][21] - The weighted average initial cash capitalization rate for new property acquisitions was 7%, with a weighted average remaining lease term of 14.2 years and annual rent increases of 2.6% [9] Market Data and Key Metrics Changes - The company observed healthy activity in the transaction market, particularly within the industrial property segment, although pricing levels did not always align with targeted risk-adjusted returns [22] - The company sold 28 properties in 2025, yielding gross proceeds of $96 million at an average cash cap rate of 7.3% [23] Company Strategy and Development Direction - The company’s strategy is built on three core building blocks: solid in-place portfolio performance, a laddered pipeline of committed build-to-suit development projects, and stabilized acquisitions [6][7] - The company aims to maintain a pipeline of $350 million to $500 million in committed build-to-suit projects for the foreseeable future [21] - The focus remains on relationship-based sourcing of opportunities to mitigate traditional development risks [20] Management's Comments on Operating Environment and Future Outlook - Management reiterated 2026 AFFO guidance of $1.53-$1.57 per share, reflecting a 4% increase at the midpoint [13] - The company is optimistic about its build-to-suit strategy providing long-term growth and value creation, with approximately $350 million of high-quality developments scheduled to stabilize in 2026 [14] - Management expressed frustration with the company's relative valuation but remains focused on disciplined execution to close the gap versus peer averages [16] Other Important Information - The company raised a small amount of equity under its ATM program, totaling approximately $43 million, but does not expect to raise significant amounts at current market levels [16][32] - A quarterly dividend of $0.2925 per share was approved, reflecting a 1% increase over the prior dividend [33] Q&A Session Summary Question: Competitive landscape for build-to-suit opportunities - Management noted no significant increase in competition for deals they are pursuing, emphasizing their relationship-based sourcing strategy [38][39] Question: Project Triboro power delivery timeline - Management indicated that initial power delivery is expected in phases, with the first phase being 300 megawatts [41] Question: Use of proceeds from potential UNFI sale - Management stated that proceeds would be used opportunistically, with a focus on timing rather than mix of deployment [45] Question: Internal growth expectations for 2026 - Management indicated that a 2% annual growth rate is a reasonable assumption for internal growth [48] Question: Red Lobster exposure and potential actions - Management is actively looking to reduce exposure to Red Lobster and is in discussions for mutually beneficial solutions [52][54] Question: American Signature lease negotiations - Management confirmed that there would be no change in rent levels during negotiations for a new master lease [56] Question: Build-to-suit pipeline and project details - Management confirmed a rolling target of $350 million to $500 million in active development, primarily from repeat business [60] Question: Capital recycling and market conditions - Management noted that they are not forced sellers but are opportunistic, with a focus on accretive transactions [70] Question: Onshoring trends and industrial development demand - Management observed increased interest in onshoring within the build-to-suit pipeline, although these decisions take time [82]

Broadstone Net Lease (NYSE:BNL) Q4 2025 Earnings call February 19, 2026 11:00 AM ET Company ParticipantsAnthony Paolone - Executive DirectorBrent Maedl - Director of Corporate Finance and Investor RelationsJohn Moragne - CEOKevin Fennell - CFORonald Kamdem - Managing DirectorRyan Albano - President and COOConference Call ParticipantsBrian Caviola - Equity Research AnalystCaitlin Burrows - Equity Research AnalystEric Borden - Equity Research AnalystJohn Kim - Equity Research AnalystMichael Goldsmith - Equity ...

Broadstone Net Lease (NYSE:BNL) Q4 2025 Earnings call February 19, 2026 11:00 AM ET Speaker11Hello, and welcome to Broadstone Net Lease's fourth quarter 2025 earnings conference call. My name is Emily, and I'll 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.Speaker1Thank you, everyone, for joining us today for Broadstone Net Lease's fourth quarter 2025 e ...

Core Insights - Broadstone Net Lease, Inc. (BNL) reported quarterly funds from operations (FFO) of $0.38 per share, exceeding the Zacks Consensus Estimate of $0.37 per share, and showing an increase from $0.36 per share a year ago, resulting in an FFO surprise of +1.80% [1] - The company achieved revenues of $118.3 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.73% and increasing from $112.13 million year-over-year [2] - Broadstone Net Lease shares have appreciated approximately 14.3% since the beginning of the year, contrasting with the S&P 500's zero return [3] Financial Performance - Over the last four quarters, Broadstone Net Lease has exceeded consensus FFO estimates two times and topped consensus revenue estimates three times [2] - The current consensus FFO estimate for the upcoming quarter is $0.38 on revenues of $120.12 million, and for the current fiscal year, it is $1.55 on revenues of $492.36 million [7] Market Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call [3] - The estimate revisions trend for Broadstone Net Lease was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The REIT and Equity Trust - Residential industry is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting that the industry outlook could significantly impact stock performance [8]

Financial Performance - Total revenues for Q4 2025 were $118,295 thousand, compared to $114,167 thousand in Q3 2025, reflecting a quarter-over-quarter increase of 1.9%[15] - Net income for Q4 2025 was $35,028 thousand, a significant increase of 29.4% from $27,065 thousand in Q3 2025[15] - Funds From Operations (FFO) reached $73,010 thousand in Q4 2025, slightly up from $70,969 thousand in Q3 2025, indicating a growth of 2.9%[15] - Core FFO for Q4 2025 was $77,699 thousand, compared to $70,386 thousand in Q3 2025, marking an increase of 10.5%[15] - Net income for the three months ended December 31, 2025, was $35,028,000, an increase from $27,065,000 in the previous quarter[19] - Funds From Operations (FFO) for the same period was $73,010,000, compared to $70,969,000 in the prior quarter, reflecting a growth of 1.5%[19] - Core Funds From Operations (Core FFO) increased to $77,699,000 from $70,386,000, marking a significant rise of 10.4%[19] - Adjusted Funds From Operations (AFFO) reached $75,846,000, up from $74,314,000, indicating a growth of 2.1%[19] - EBITDA for the same period was $102,239,000, reflecting a 6.3% increase from $95,749,000 in the prior quarter[43] - Adjusted EBITDAre reached $104,578,000, up from $100,252,000 in the previous quarter, indicating a growth of 4.3%[45] - Annualized Adjusted EBITDAre was reported at $418,312,000, compared to $401,008,000 in the previous quarter, marking a 4.3% increase[45] Assets and Liabilities - Total assets rose to $5,717,267 thousand in Q4 2025, up from $5,519,271 thousand in Q3 2025, showing a growth of 3.6%[15] - Total liabilities increased to $2,683,806 thousand in Q4 2025, compared to $2,506,762 thousand in Q3 2025, reflecting a rise of 7.1%[15] - Total liabilities rose to $2,683,806 thousand as of December 31, 2025, compared to $2,506,762 thousand in the previous quarter, marking a 7.1% increase[16] - Cash and cash equivalents decreased to $30,540 thousand from $81,966 thousand in the previous quarter, a decline of 62.7%[16] - Net Debt as of December 31, 2025, was $2,489,112,000, an increase from $2,269,708,000 in the prior quarter[46] - The leverage ratio of Net Debt to Annualized EBITDAre stood at 6.3x, up from 5.7x in the previous quarter[46] Investments and Developments - Investment in rental property increased to $5,328,283 thousand in Q4 2025, up from $5,147,649 thousand in Q3 2025, representing a growth of 3.5%[15] - The property under development increased to $265,812 thousand in Q4 2025, up from $179,172 thousand in Q3 2025, indicating a growth of 48.4%[15] - The company invested $78.523 million in build-to-suit developments in Q4 2025, with a weighted average lease term of 17.1 years and an annual rent increase of 2.6%[56] - Total investments for transitional capital reached $315.337 million in 2025, maintaining a cash capitalization rate of 7.0%[56] - The company has ongoing in-process developments projected to generate an estimated total project investment of $610.584 million, with a weighted average annual rent escalation of 2.6%[57] - The estimated cash capitalization rate for in-process retail projects ranges from 7.1% to 7.2%, while industrial projects show rates between 7.7% and 8.0%[57] Equity and Shareholder Information - Total equity for Broadstone Net Lease, Inc. was $3,033,461 thousand, up from $3,012,509 thousand in the previous quarter, reflecting a 0.7% increase[16] - The diluted weighted average shares outstanding increased to 197,935,000 from 197,632,000, reflecting a slight increase in share count[19] - The net earnings per diluted share for the quarter was $0.17, up from $0.14 in the previous quarter, representing a growth of 21.4%[19] - Total equity market capitalization is $3,469,119, representing 57.9% of total capitalization[33] - Total debt outstanding is $2,522,753, which constitutes 42.1% of total capitalization[33] Property and Portfolio Metrics - As of December 31, 2025, the company has 771 properties across 44 U.S. states and 4 Canadian provinces, with total annualized base rent of $428.8 million[69] - The total rentable square footage as of December 31, 2025, is 41.6 million square feet, with an occupancy rate of 99.8%[69] - The top 10 tenants contribute 21.1% of the total annualized base rent, while the top 20 tenants account for 34.3%[72] - The weighted average remaining lease term is 9.6 years, with a rent collection rate of 100%[69] - The company’s stabilized retail projects have an occupancy rate of 98.3% and a rent collection rate of 99.4%[64] Financial Ratios and Metrics - The company maintained compliance with key financial covenants, including a leverage ratio of 0.37 against a required maximum of 0.60[48] - The weighted average debt maturity is 4.3 years, reflecting the company's strategy to manage its debt profile effectively[50] - Rent Coverage Ratio measures the ability of tenants to meet their rental obligations, calculated based on tenant-reported earnings[102] - Same Store Rental Revenue excludes non-recurring items and is presented on a constant currency basis for comparability[103] Acquisitions and Dispositions - In Q4 2025, the company completed 5 acquisitions involving 15 properties, totaling 1,104 square feet, with an acquisition price of $176.747 million[56] - The company reported a total of 12 acquisitions for the year-to-date 2025, with a total acquisition price of $429.935 million[56] - Year-to-date 2025, the company has acquired 28 properties totaling 878,000 square feet for $96,103,000, with a weighted average cash cap rate of 7.3%[68] - In Q1 2025, the company disposed of 3 properties totaling 30,000 square feet for $7,385,000, with a weighted average cash cap rate of 9.2%[65] - In Q2 2025, the company acquired 8 properties totaling 98,000 square feet for $13,098,000, with a weighted average cash cap rate of 9.5%[66] - In Q3 2025, the company disposed of 12 properties totaling 425,000 square feet for $38,723,000, with a weighted average cash cap rate of 7.0%[67] - In Q4 2025, the company acquired 5 properties totaling 325,000 square feet for $36,897,000, with a weighted average cash cap rate of 6.5%[68]

Core Insights - Broadstone Net Lease has announced its financial results for the fourth quarter and full year of 2025, highlighting significant performance metrics and strategic developments [1] Financial Performance - The company reported a total revenue increase, showcasing a strong growth trajectory compared to previous periods [1] - Net income figures for the fourth quarter and full year indicate a positive trend, reflecting effective management and operational efficiency [1] Strategic Developments - Broadstone Net Lease has made notable acquisitions during the year, contributing to its portfolio expansion and diversification [1] - The company continues to focus on enhancing shareholder value through strategic investments and asset management [1]

Group 1 - The article emphasizes that now is a favorable time for income investors, particularly in REITs with yields exceeding 6%, which provide six times the dividend yield of the S&P 500 [2] - The focus is on income-producing asset classes that offer sustainable portfolio income, diversification, and inflation hedging [1][2] - The investment group iREIT+HOYA Capital provides research on various income-focused portfolios, targeting dividend yields up to 10% [2] Group 2 - The investment strategy includes high-yield, dividend growth ideas, particularly in defensive stocks with a medium- to long-term horizon [2] - The group aims to help investors achieve dependable monthly income and portfolio diversification [2] - The article does not provide specific financial advice and encourages readers to conduct their own due diligence [4]

Core Insights - Broadstone Net Lease has scheduled its Fourth Quarter 2025 earnings release and conference call, indicating a proactive approach to investor communication and transparency [1] Company Summary - The earnings release and conference call are set to provide insights into the company's financial performance and strategic direction for the upcoming quarter [1]