Core Viewpoint - Broadstone Net Lease, Inc. (BNL) is entering 2026 with strong momentum and a clear strategy for growth, as highlighted by CEO John Moragne [2][3]. Business Update - BNL has provided an update on its business activities through December 1, 2025, and issued guidance for fiscal year 2026, expecting an AFFO of $1.53 to $1.57 per diluted share, representing approximately 4.0% growth at the midpoint [3][4]. - The guidance is based on key assumptions regarding real estate investments, property dispositions, and capital market activities throughout the year [3]. Investor Day - The guidance was issued in conjunction with BNL's upcoming Investor Day scheduled for December 2, 2025, where the company plans to provide deeper insights into its long-term strategy and operational execution [4]. Development Projects - As of November 25, 2025, BNL has several in-process and stabilized development projects, including retail and industrial properties, with projected rentable square feet and annual rent escalations detailed in their reports [5][6]. - The company has invested $696.7 million year-to-date, including $416.6 million in new property acquisitions and $181.8 million in build-to-suit developments [6]. Financial Guidance - BNL maintains its 2025 AFFO guidance of $1.49 to $1.50 per share, indicating a growth of 4.2% to 4.9% [6]. - The company anticipates investments in real estate properties between $500 million and $625 million and dispositions between $75 million and $100 million [6]. Portfolio Overview - As of September 30, 2025, BNL's diversified portfolio consists of 759 individual net leased commercial properties across the U.S. and Canada, focusing on single-tenant commercial real estate [8].

Core Insights - The article focuses on the net lease real estate sector, which is characterized by corporate tenants and long-term leases, highlighting its significance within the broader real estate investment trust (REIT) landscape [1] Industry Overview - The net lease industry is described as a niche sector of real estate, emphasizing its unique attributes such as the presence of corporate tenants and the structure of long maturity leases [1]

Financial Data and Key Metrics Changes - NNN reported core FFO of $0.85 per share and AFFO of $0.86 per share for Q3 2025, representing increases of 1.2% and 2.4% year-over-year respectively [10] - Annualized base rent reached $912 million at the end of the quarter, an increase of over 7% year-over-year [10] - The company's NOI margin was 98% for the quarter, with G&A as a percentage of total revenues at about 5% [11] Business Line Data and Key Metrics Changes - NNN closed 20 deals containing 57 assets for $283 million during the quarter, with an initial cap rate of 7.3% and an average lease duration of nearly 18 years [2][7] - The company executed a high renewal rate of 92% for leases, with rental rates at 108% above prior rents [6] - Seven new properties were leased to new tenants at rates of 124% of previous rents, indicating strong demand [6] Market Data and Key Metrics Changes - The company is increasing its 2025 acquisition volume guidance to a midpoint of $900 million, which would be an all-time high for NNN [3][15] - NNN's balance sheet remains strong with $1.4 billion in liquidity and an industry-leading average debt maturity of nearly 11 years [2][8] Company Strategy and Development Direction - NNN's strategy focuses on disciplined growth, proactive management, and optimizing its portfolio to drive sustainable growth and enhance shareholder value [2][8] - The company aims to resolve more than 75% of its vacant assets by the end of Q1 2026, positioning itself for future growth [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving an occupancy rate exceeding 98% by year-end, despite temporary reductions due to legal disputes with tenants [5][6] - The company raised its guidance for core FFO per share to a range of $3.36-$3.40 and AFFO per share to $3.41-$3.45, reflecting year-to-date outperformance [15] Other Important Information - NNN has maintained a healthy 70% AFFO payout ratio with a quarterly dividend of $0.60, equating to a 5.6% annualized yield [14] - The company has proactively managed risks, including the successful resolution of the At Home bankruptcy, which significantly de-risked its capital structure [12][16] Q&A Session Summary Question: Could we get more color around the outsized interest income? - Management attributed the increase in interest income to a high cash balance and better-than-expected interest rates on short-term deposits [18] Question: What is the rationale behind using equity to fund acquisitions? - The company aims for a 60/40 mix of equity and debt for funding, and current market conditions allow for accretive acquisitions despite higher costs of capital [20][21] Question: Are you seeing increased competition impacting pricing? - Management acknowledged heightened competition but emphasized that NNN's long-standing tenant relationships allow for continued execution without significant pricing pressure [26] Question: What are the bad debt assumptions now compared to earlier in the year? - The company reduced its bad debt assumption for the full year to 25 basis points, down from 60 basis points, due to limited losses and successful tenant resolutions [30] Question: What is the expected occupancy trajectory going forward? - Management expects to resolve a significant number of vacancies by year-end, aiming for improved occupancy rates as leases are renewed and assets are disposed of [32][34] Question: How does the company plan to handle debt maturity in 2026? - NNN is exploring various options for refinancing, including bank loans and bond markets, to manage upcoming debt maturities effectively [59]

Group 1 - The recent months have seen a resurgence in net lease investments, indicating a positive trend in this sector [1] - Essential Properties Realty Trust, Inc. (EPRT) has been highlighted as a leader in the net lease market, showcasing its strong position [1]

Company Overview - Realty Income has an enterprise value of approximately $85 billion[6] - The company has approximately $61 billion in gross real estate value across 9 countries[7] - Approximately 32% of rent comes from investment-grade clients[6] - The company has declared 664 monthly dividends and has increased dividends for 112 consecutive quarters[9] Financial Performance - The company anticipates AFFO per share in the range of $4.25 to $4.27 for the year 2025[24] - The company's annualized dividend is $3.234[9] - The company's annualized base rent is approximately $5.2 billion[14] - The company invested $1.4 billion at an initial weighted average cash yield of 7.7% in Q3 2025, including $1 billion in Europe at 8.0% and $380 million in the U S at 7.0%[24] Portfolio and Operations - The company's portfolio consists of 15,542 commercial real estate properties[6] - The company's portfolio spans 1,647 industries[11] - The company's quarter-end occupancy was 98.7% with a rent recapture rate of 103.5% across 284 leases[24]

Core Viewpoint - Realty Income (O) has achieved an 11.6% year-to-date gain, leading to discussions about its valuation and whether it is a good time for investment [1][8] Performance Summary - Realty Income has outperformed peers in the free-standing retail space, including Agree Realty Corporation (ADC) and NNN REIT, Inc. (NNN), while also surpassing the broader Zacks REIT and Equity Trust - Retail industry, although it lags behind the S&P 500 composite [1][8] Growth and Expansion - The company is expanding in the U.S. and Europe, which supports its long-term growth outlook, and a recent dividend increase has positively impacted investor sentiment [2][8] - Realty Income owns over 15,600 properties across the U.S. and Europe, with a tenant mix focused on non-discretionary retail and service categories, contributing to stable cash flows [4][10] - The company has a disciplined acquisition strategy, maintaining a historical median occupancy rate of 98.3%, with current occupancy at 98.6% as of June 30, 2025 [5][10] Financial Strength - Realty Income has $5.1 billion in liquidity and maintains investment-grade credit ratings, with a dividend yield of 5.47% [10][18] - The company has increased its dividend for 112 consecutive quarters, with the most recent hike being its 132nd since its 1994 listing [10][18] Valuation Insights - Realty Income's stock is trading at a forward 12-month price-to-FFO of 13.53X, which is below the retail REIT industry average of 15.05X but above its one-year median of 13.15X [15] - The valuation is relatively favorable compared to Agree Realty Corporation, which trades at 15.89X, while NNN trades at 11.91X [15] Investment Outlook - Realty Income is recognized as a leading dividend-focused REIT, valued for its consistent payouts and long-term growth profile, with a diversified tenant base providing resilience during economic uncertainty [17][18] - The company’s strategic expansion in Europe and strong financial position suggest a solid foundation for long-term growth, although new investors may exercise caution until market conditions stabilize [18]

Financial Data and Key Metrics Changes - The company reported cash NOI of $41.9 million for Q2 2025, a 1.7% increase from Q2 2024, primarily driven by acquisitions [12] - AFFO was $0.54 per diluted share for Q2 2025, reflecting a 1.7% increase from Q2 2024, despite a 2.7% decrease year-over-year due to higher interest expenses [13][15] - The liquidity position at the end of the quarter was $568.8 million, with a net debt to EBITDAre ratio of 3.6 times [17] Business Line Data and Key Metrics Changes - The average EBITDARM coverage ratio improved to 5.31 times, up from 4.64 times in the previous year, indicating stronger tenant performance [16] - The company maintained a strong tenant base, with 40% associated with investment-grade rated tenants, up from 36.4% year-over-year [16] Market Data and Key Metrics Changes - The company closed on a two-property medical outpatient building portfolio for approximately $16.2 million, enhancing its operational synergies [20] - Year-to-date acquisitions totaled approximately $75 million, with over $70 million of properties under exclusive LOI [21] Company Strategy and Development Direction - The company focuses on necessity-based healthcare solutions, aiming to capitalize on the aging population and limited competition in its markets [5][19] - A strategic decision was made to demolish the Stoughton asset to halt expense leakage and maximize future land value [10][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow despite macroeconomic uncertainties, emphasizing a prudent capital allocation strategy [4][11] - The company aims to maintain a healthy dividend while pursuing growth through acquisitions and share repurchases [17] Other Important Information - The board approved a three-year share repurchase program for up to $75 million, with a cap of $25 million per year [15] - The company is currently under exclusive LOI for additional acquisitions, indicating a robust pipeline for future growth [21] Q&A Session Summary Question: What types of assets are included in the $70 million LOIs? - Management confirmed that the properties under LOI are consistent with their current portfolio and have long lease durations [25][26] Question: What is the current status of the Stoughton facility? - Management indicated that the demolition process is underway and will significantly reduce carrying costs [39][57] Question: How does the company evaluate share repurchases versus acquisitions? - Management stated that share repurchases are viewed as a tool, and decisions are based on the perceived disconnect between share price and intrinsic value [30][41] Question: What are the expectations for lease expirations in the near term? - Management is optimistic about renewing nearly all leases expiring in 2025 and 2026, with only minor exposures expected [42][46]

Financial Data and Key Metrics Changes - The company reported distributable earnings (DE) of $151 million or $0.43 per share, while GAAP net income was $130 million or $0.38 per share [4] - Capital deployment for the first six months of the year reached $5.5 billion, surpassing the total for all of 2024 [4] - The adjusted debt to undepreciated equity ratio ended the quarter at 2.5 times, slightly increasing from the previous quarter [14] Business Line Data and Key Metrics Changes - Commercial and residential lending contributed DE of $174 million for the quarter, with a loan portfolio growth of $946 million, bringing the total to $15.5 billion [5] - The residential lending portfolio ended the quarter at $2.3 billion, with $60 million in repayments [9] - The infrastructure lending segment contributed DE of $21 million, with a record $700 million of loans committed [12] Market Data and Key Metrics Changes - The company’s active servicing portfolio ended the quarter at $10.3 billion, with $1 billion of new transfers dominated by office properties [11] - The CMBS portfolio increased by $55 million due to new purchases [12] - The weighted average risk rating of the portfolio remained stable at 2.9 [7] Company Strategy and Development Direction - The acquisition of Fundamental Income Properties for $2.2 billion is expected to enhance the company’s capabilities in the net lease sector, with a focus on leveraging existing expertise [13][18] - The company aims to grow its diversified business model, reducing reliance on CRE loans, which now represent only 52% of total assets compared to 65% in 2022 [22] - The strategy includes optimizing the balance sheet by refinancing at lower spreads and maintaining a strong liquidity position [14][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for lower interest rates and a recovery in the real estate market, which could lead to increased transaction volumes [29][30] - The company is well-positioned to navigate challenges and is focused on becoming investment grade, with plans to grow earnings materially over time [41][36] - The management highlighted the importance of maintaining a fortress balance sheet and the benefits of diversification in sustaining dividends [35][36] Other Important Information - The company received recognition from rating agencies for its diversity, leverage profile, liquidity position, and stable earnings [14] - The company has maintained its dividend for 47 consecutive quarters, reflecting its commitment to shareholder returns [22] Q&A Session Summary Question: Expectations for CRE loan growth and impact of Fed rate cuts - Management expects to end the year close to $10 billion in CRE loans, with lower rates likely accelerating loan growth and refinancing opportunities [46][48] Question: Ramp up of the net lease portfolio business - The company is optimistic about growing the net lease portfolio, with potential for larger acquisitions as the pipeline rebuilds [56][60] Question: Sustainability of spreads in the infrastructure business - Management indicated that while spreads have widened, they are maintaining margins through more direct deals and expect continued growth in infrastructure origination [62][71] Question: Credit portfolio stabilization and hotel exposure - Management believes credit in the portfolio has stabilized, with no significant losses in the hotel sector, which comprises 6% of the overall asset base [78][82]

Financial Performance & Strategic Objectives - GNL reduced net debt by $748 million in Q2 2025, decreasing Net Debt to Adjusted EBITDA to 66x[10] - GNL increased the low end of its AFFO per Share guidance to a new range of $092 to $096[22] - GNL reaffirms its Net Debt to Adjusted EBITDA range of 65x to 71x[22] - GNL's liquidity totaled $10 billion in Q2 2025[36] Portfolio Transformation & Leasing Activity - GNL completed the final phases of the ~$18 billion Multi-Tenant Portfolio Sale, transforming into a pure-play net-lease REIT[11] - GNL achieved 60% renewal spreads and increased occupancy to 98% across the portfolio[12] - GNL's total non-core dispositions reach over $30 billion[24] - GNL repurchased 102 million shares for a total of $77 million[13] Balance Sheet & Credit Rating - S&P upgraded GNL's corporate credit rating to BB+ from BB[12] - GNL reduced net debt by $20 billion since Q2'24[13, 29] - GNL refinanced its Revolving Credit Facility, extending weighted average debt maturity to 37 years[11, 13]

Company Overview - Realty Income is the 6th largest global REIT with approximately $61 billion in gross real estate value[7] - The company has 15,606 commercial real estate properties[6] - Approximately 34% of rent comes from investment-grade clients[6] - The company's annualized base rent is approximately $5.17 billion[13] Portfolio Diversification - Approximately 90% of the total rent is resilient to economic downturns and/or isolated from e-commerce pressures[9] - Non-Discretionary, Low Price Point and/or Service-Oriented Retail accounts for 73% of the annualized base rent[9] - The company has 1,630 clients across 91 industries[9] Financial Performance and Guidance - The company has a strong dividend track record with over 30 consecutive years of rising dividends and a 4.2% CAGR[10] - The company is increasing its 2025 investment volume guidance to approximately $5.0 billion[22] - The company expects AFFO per share in the range of $4.24 to $4.28 for 2025[22] Investment and Capital Strategy - The company invested $1.2 billion in the second quarter of 2025 at an initial weighted average cash yield of 7.2%[22] - The company sourced $43 billion of volume in the second quarter of 2025, reflecting a 2.7% selectivity rate[22] - The company has sourced ~$66B in volume year-to-date, including $43B in 2Q alone[64]