- AFFO Growth Generated $1.49 AFFO/share in 2025, up 4.2% YoY, driven by 2% same-store rent growth and $430M in stabilized investments.
- Build-to-Suit Momentum $4.5M ABR from B/S projects with 7.4% initial cash yield and 8.6% straight-line yield; $345M in-process developments (9 projects) expected to add $26M incremental ABR by 2026.
- Capital Deployment Deployed $748.4M in 2025, including $429.9M in acquisitions and $209.3M in B/S; 2026 guidance for $500M–$625M deployment, prioritizing B/S ($350M target) over stabilized acquisitions.
- Portfolio Performance Maintained 99% leased, 99.8% rent collected; low bad debt assumptions and renegotiated leases (e.g., American Signature) ensure stable cash flow.
- Strategic Assets & Guidance Reiterated 2026 AFFO/share guidance of $1.53–$1.57; $350M–$500M annual B/S target and $350M+ in high-quality B/S projects scheduled for 2026 stabilization.
Financial Highlights
The company's financial performance was characterized by strong same-store rent growth of 2% and approximately $430 million in stabilized investment activity throughout the year. The build-to-suit strategy continues to be a key driver of growth, with $4.5 million of annual base rent (ABR) commenced from build-to-suit projects in 2025, featuring weighted average annual rent escalations of 2.9% and a weighted average lease term of 15 years.
Build-to-Suit Pipeline and Growth Prospects
Broadstone Net Lease has a robust pipeline of build-to-suit developments, with 9 in-process projects representing an estimated total project investment of $345 million. The company expects to deliver $350 million to $500 million of build-to-suit projects per year, with a rolling target. The build-to-suit pipeline is mostly repeat business, with one new project starting in 2026. As Ryan Albano noted, "Our pipeline building methodology serves as a strategic differentiator."
Valuation and Outlook
With a P/E Ratio of 34.41 and a Dividend Yield of 6.17%, the company's valuation multiples suggest a relatively stable income stream. The company's guidance for 2026 AFFO per share is $1.53 to $1.57, representing a 4% growth at the midpoint. Analysts estimate next year's revenue growth at 6.4%. The company's focus on build-to-suit developments and stabilized acquisitions is expected to drive long-term growth and value creation.
Capital Recycling and Investment Strategy
Broadstone Net Lease is exploring opportunities to recycle assets, with a focus on selling older assets that have a different value equation today. The company is also considering UNFI as a potential capital source later this year. The proceeds from asset sales will be deployed towards traditional acquisitions or funding new developments, with a focus on timing and leverage implications.