Broadstone(US:BNL)2025-10-29 20:15Financial Performance - Net income for Q3 2025 was $27,065 thousand, a 36.5% increase from $19,830 thousand in Q2 2025[16] - Net income attributable to Broadstone Net Lease, Inc. for the three months ended September 30, 2025, was $26,466,000, compared to $35,608,000 for the same period in 2024, indicating a decrease of 25.7%[18] - Basic net earnings per common share for the three months ended September 30, 2025, were $0.14, compared to $0.19 in the same period last year, a decline of 26.3%[18] - For the three months ended September 30, 2025, the company reported a net income of $27,065,000, an increase from $19,830,000 in the previous quarter[20] - EBITDA for the three months ended September 30, 2025, was $95,749,000, compared to $83,716,000 in the prior quarter, reflecting a growth of 14.4%[35] - Adjusted EBITDAre for the same period was $100,252,000, up from $98,242,000 in the previous quarter, indicating a 2.0% increase[37] Assets and Liabilities - Total assets reached $5,519,271 thousand in Q3 2025, compared to $5,326,679 thousand in Q2 2025, reflecting an increase of 3.62%[16] - Total liabilities increased to $2,506,762 thousand in Q3 2025 from $2,290,858 thousand in Q2 2025, an increase of 9.45%[16] - Total liabilities as of September 30, 2025, were $2,506,762,000, an increase from $2,124,927,000 a year prior, marking a rise of 17.9%[17] - The company’s total debt as of September 30, 2025, was $2,353,029,000, which constitutes 40.0% of total capitalization[25] - The company’s net debt stands at $2,269,708,000, an increase from $1,941,756,000 in the previous year[38] - The gross debt has risen to $2,353,028,000 compared to $1,952,974,000 as of September 30, 2024, indicating a significant increase in leverage[38] Cash Flow and Operations - Net cash provided by operating activities was $64,190 thousand in Q3 2025, down from $79,280 thousand in Q2 2025, a decrease of 18.99%[16] - Funds From Operations (FFO) for Q3 2025 was $70,969 thousand, slightly down from $73,695 thousand in Q2 2025, a decrease of 3.7%[16] - Core FFO per share, diluted, decreased to $0.35 in Q3 2025 from $0.39 in Q2 2025, a decline of 10.26%[16] - Total operating expenses for the three months ended September 30, 2025, were $63,417,000, down from $77,369,000 in the same quarter of 2024, a decrease of 18.0%[18] - Adjusted Funds From Operations (AFFO) stood at $74,314,000, slightly up from $74,308,000 in the prior quarter, showing a marginal increase[20] Investments and Acquisitions - Investment in rental property increased to $5,147,649 thousand in Q3 2025, up from $5,058,791 thousand in Q2 2025, representing a growth of 1.75%[16] - The company completed 7 acquisitions year-to-date in 2025, totaling an acquisition price of $253,188,000 for 10 properties[47] - Total investments for the year-to-date 2025 amount to $433,025,000, with a weighted average lease term of 12.3 years[47] - The initial cash capitalization rate for acquisitions in Q3 2025 is 7.1%, consistent with the previous quarters, indicating stable investment returns[47] Property and Lease Information - Total lease revenues for the three months ended September 30, 2025, reached $114,167,000, an increase from $112,986,000 in the previous quarter, representing a growth of approximately 1.0%[22] - Total annualized base rent increased to $412.9 million as of September 30, 2025, up from $395.5 million in 2024, representing a growth of 4.5%[61] - Occupancy rate based on square footage reached 99.5% as of September 30, 2025, compared to 99.0% in 2024[61] - Rent collection rate improved to 100.0% in the latest quarter, up from 99.1% in the same period last year[61] - The company has 204 tenants across 759 properties in 44 U.S. states and 4 Canadian provinces[61] Debt and Financial Ratios - The weighted average interest rate on all outstanding borrowings was 4.09% as of September 30, 2025[33] - The net debt to annualized EBITDAre ratio is 5.7x, up from 5.3x in the previous quarter, reflecting a decline in financial leverage efficiency[38] - The company maintains a leverage ratio of 0.34, well below the required maximum of 0.60 to 1.00, demonstrating strong compliance with financial covenants[40] - The fixed charge coverage ratio is 3.23, significantly above the required minimum of 1.50 to 1.00, showcasing strong cash flow generation[40] Development and Future Projects - As of September 30, 2025, the total projected rentable square feet for in-process developments is 2,252, with a total project investment of $370,868,000[49] - The company expects to update project timelines quarterly based on actual construction progress and costs[53] - The estimated cash capitalization rate for the total in-process developments is 7.5%, with a straight-line yield of 8.9%[49] - The estimated total project investment for development properties will be updated quarterly, reflecting any significant changes in expected costs[100]