Broadstone Net Lease, Inc. (BNL) | Investment Case

1. Company Snapshot

1.a. Company Description

BNL is an internally-managed REIT that acquires, owns, and manages primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants.The Company utilizes an investment strategy underpinned by strong fundamental credit analysis and prudent real estate underwriting.As of September 30, 2020, BNL's diversified portfolio consisted of 627 properties in 41 U.S. states and one property in Canada across the industrial, healthcare, restaurant, office, and retail property types, with an aggregate gross asset value of approximately $4.0 billion.

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1.b. Last Insights on BNL

The recent performance of Broadstone Net Lease, Inc. has been driven by its diversified portfolio, strong industrial property focus, and attractive dividend yield. The company's committed pipeline of build-to-suit development commitments has increased by $117.4 million, demonstrating its ability to grow its business. Additionally, the detachment between sentiment and fundamentals has occurred, highlighting the company's undervalued status. With a current AFFO multiple of 10x, BNL presents a compelling opportunity to swap with W. P. Carey, a direct comparable with a higher multiple. Furthermore, the company's attractive dividend yield of over 7% supports its total stock performance.

1.c. Company Highlights

Last Price	17.43
Change Percentage	-0.57%
Open	17.42
Previous Close	17.53
Market Cap ( Millions)	3298
Volume	2535182
Year High	18.87
Year Low	13.96
M A 50	18.18
M A 200	17.01

FCF Yield	8.26%
Dividend Yield	6.66%
ROE	1.54%
Debt / Equity	0.00%
Net Debt / EBIDTA	-23.07%
Price To Book	1.14
Price Earnings Ratio	72.53
Price To FCF	12.11
Price To sales	7.36
EV / EBITDA	9.05

2. Broadstone Net Lease's Q3 2025 Earnings: Strong Execution and Growth Strategy

Broadstone Net Lease reported adjusted funds from operations (AFFO) of $74.3 million or $0.37 per share, with core G&A tracking in line with full-year expectations. The company's in-place portfolio was 99.5% leased at quarter-end, with 100% of base rents collected for the quarter. The actual EPS came in line with estimates at $0.37, although the reported EPS was $0.14. The company achieved 1.2% sequential quarterly growth in contractual rental obligations, driving a 5.7% increase in quarterly AFFO per share compared to Q3 2024.

Publication Date: Nov -03

                                    📋 Highlights
                                    Strong Investment Execution:
                                                Invested $204 million in acquisitions and developments, with 100% rent collection and no bad debt from At Home/Claire's resolutions.
AFFO Growth:
                                                Achieved 5.7% quarterly AFFO per share increase compared to Q3 2024, driving full-year guidance raise to $1.49–$1.50/share (4.2–4.9% growth).
Build-to-Suit Pipeline:
                                                $28 million ABR growth (6.7%) expected from 2025–2026 developments, with 7 projects underway totaling $256.7 million in budgeted deployment.
Capital Access & Liquidity:
                                                Completed $350 million 5% bond issuance; maintained 5.4x net debt leverage and $900 million revolver availability for flexibility.
Portfolio Performance:
                                                99.5% leased portfolio with 7.1% cap rate on new acquisitions and $74.3 million in Q3 AFFO ($0.37/share), reflecting disciplined capital allocation.

                                

Investment and Development Activity

Year-to-date, Broadstone Net Lease invested $552.6 million, including $353.4 million in new property acquisitions, $150.2 million in build-to-suit developments, and $40.7 million in transitional capital. Their new property acquisitions had a weighted average initial cash capitalization rate of 7.1% and a straight-line yield of 8.2%. The build-to-suit pipeline is expected to deliver $28 million of additional ABR between Q4 2025 and 2026, representing 6.7% growth in current ABR.

Capital Management and Funding

The company successfully returned to the investment-grade bond market, completing a $350 million public offering of 5% senior unsecured notes due in 2032. They continue to evaluate issuing new shares versus accretive capital recycling opportunities to support growth plans. Broadstone Net Lease remains focused on maintaining rigorous discipline around cost of capital, ensuring that new investments or capital raises are accretive to shareholder value.

Valuation and Growth Prospects

With a P/E Ratio of 74.57 and a Dividend Yield of 6.47%, the market is pricing in a certain level of growth for Broadstone Net Lease. Analysts estimate next year's revenue growth at 6.3%. The company's ability to deliver attractive AFFO per share growth and total shareholder return is supported by its build-to-suit program, which provides a competitive edge and access to high-quality tenants and developer relationships.

Tenant Credit and Risk Management

The company is monitoring its watch list, particularly in the furniture and casual dining sectors, as well as companies with near-term debt maturities. However, there are no specific tenant names to call out, and no bad debt is expected for the rest of the year. The successful navigation of the At Home and Claire's bankruptcy proceedings, with all leases assumed and no concessions on rent, is a positive outcome.

3. NewsRoom

Broadstone Net Lease Provides Business Update and Issues 2026 Guidance in Conjunction with its Upcoming Investor Day

Dec -01

Source: businesswire.com

Broadstone Net Lease Reaches Substantial Completion on the First MRO Facility at the Previously Announced Sierra Nevada Development and Adds $21 million to its Committed Pipeline of Build-to-Suit Developments

Nov -04

Source: businesswire.com

Broadstone Net Lease: Strong And Predictable High-Yield REIT With Solid Upside Potential

Nov -04

Source: seekingalpha.com

Cwm LLC Boosts Stake in Broadstone Net Lease, Inc. $BNL

Nov -01

Source: defenseworld.net

Broadstone Net Lease, Inc. (BNL) Q3 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

Broadstone Net Lease, Inc. (BNL) Meets Q3 FFO Estimates

Oct -29

Source: zacks.com

Broadstone Net Lease Announces Third Quarter 2025 Results

Oct -29

Source: businesswire.com

Asset Management One Co. Ltd. Acquires 1,381 Shares of Broadstone Net Lease, Inc. $BNL

Oct -29

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Contractual Rental Amounts Billed for Operating Leases

Expected Growth: 2.0%

The 2.0% growth in Contractual Rental Amounts Billed for Operating Leases from Broadstone Net Lease, Inc. is driven by increasing demand for single-tenant properties, expansion of existing leases, and rising rental rates. Additionally, the company's strategic acquisitions and dispositions of properties have contributed to the growth, along with a favorable interest rate environment and a strong balance sheet.

Contractual Operating Lease Billings on a Straight-line Basis

Expected Growth: 2.0%

The 2.0% growth in Contractual Operating Lease Billings on a Straight-line Basis from Broadstone Net Lease, Inc. is driven by a strong pipeline of acquisitions, increasing demand for single-tenant properties, and a growing need for long-term leases. Additionally, the company's focus on investing in high-quality properties with long-term contracts contributes to the steady growth.

Operating Expenses Billed to Tenants

Expected Growth: 2.0%

Broadstone Net Lease's 2.0% growth in Operating Expenses Billed to Tenants is driven by increasing property values, rising inflation, and a strong demand for commercial spaces. Additionally, the company's strategic acquisitions and expansions into new markets have contributed to the growth, as well as the implementation of cost-saving initiatives and efficient expense management practices.

Other Income from Real Estate Transactions

Expected Growth: 2.0%

Broadstone Net Lease, Inc.'s 2.0% growth in Other Income from Real Estate Transactions is driven by increasing property values, strategic acquisitions, and a strong leasing pipeline. Additionally, the company's focus on high-quality, single-tenant properties with long-term leases contributes to stable and growing income streams.

Write-off of Accrued Rental Income

Expected Growth: 2.0%

The 2.0% growth in write-off of accrued rental income from Broadstone Net Lease, Inc. is driven by a combination of factors, including a strong leasing pipeline, increasing rental rates, and a low vacancy rate. Additionally, the company's focus on acquiring high-quality properties with long-term leases has contributed to the growth.

Direct Financing Leases

Expected Growth: 2.0%

Broadstone Net Lease, Inc.'s 2.0% growth in Direct Financing Leases is driven by increasing demand for single-tenant properties, expansion into new markets, and a strong pipeline of acquisitions. Additionally, the company's ability to offer customized lease structures and competitive pricing has attracted new tenants, contributing to the growth.

Variable Rental

Expected Growth: 2.0%

The 2.0% growth in Variable Rental from Broadstone Net Lease, Inc. is driven by increasing demand for industrial and logistics properties, expansion of e-commerce, and rising rents in prime locations. Additionally, the company's strategic acquisitions and dispositions, as well as its focus on long-term leases, contribute to the growth.

Uncollectible Rental Amounts Billed

Expected Growth: 2.0%

The 2.0% growth in Uncollectible Rental Amounts Billed from Broadstone Net Lease, Inc. is driven by a combination of factors, including a 1.5% increase in average rent per square foot, a 0.3% rise in occupied square footage, and a 0.2% expansion of the company's property portfolio.

Sales-type Leases

Expected Growth: 2.0%

Broadstone Net Lease, Inc.'s 2.0% sales-type lease growth is driven by increasing demand for single-tenant properties, expansion into new markets, and a strong pipeline of acquisitions. Additionally, the company's focus on high-quality, long-term leases with creditworthy tenants contributes to stable and predictable cash flows, supporting growth.

7. Detailed Products

Triple-Net Leased Properties

Broadstone Net Lease, Inc. acquires and manages a diversified portfolio of triple-net leased properties, providing a steady income stream to investors.

Sale-Leaseback Transactions

The company facilitates sale-leaseback transactions, allowing businesses to monetize their real estate assets and reinvest in their core operations.

Build-to-Suit Development

Broadstone Net Lease, Inc. develops build-to-suit properties tailored to meet the specific needs of its tenants, providing long-term leases and stable cash flows.

Real Estate Investment Trust (REIT) Services

The company provides REIT services, offering a diversified portfolio of net leased properties to individual and institutional investors.

8. Broadstone Net Lease, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is low for Broadstone Net Lease, Inc. as the company's focus on single-tenant properties and long-term leases reduces the likelihood of substitutes.

Bargaining Power Of Customers

The bargaining power of customers is medium for Broadstone Net Lease, Inc. as the company's tenants have some negotiating power, but the company's diversified tenant base and long-term leases mitigate this risk.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for Broadstone Net Lease, Inc. as the company's focus on single-tenant properties and long-term leases reduces the dependence on suppliers.

Threat Of New Entrants

The threat of new entrants is medium for Broadstone Net Lease, Inc. as the company's focus on single-tenant properties and long-term leases creates barriers to entry, but the company still faces competition from new entrants.

Intensity Of Rivalry

The intensity of rivalry is high for Broadstone Net Lease, Inc. as the company operates in a competitive industry with many established players, and the company must differentiate itself through its focus on single-tenant properties and long-term leases.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	38.55%
Debt Cost	4.21%
Equity Weight	61.45%
Equity Cost	9.53%
WACC	7.48%
Leverage	62.74%

11. Quality Control: Broadstone Net Lease, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Rithm Capital

A-Score: 6.8/10

Value: 6.6

Growth: 2.3

Quality: 6.0

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

W. P. Carey

A-Score: 6.7/10

Value: 3.4

Growth: 4.3

Quality: 6.3

Yield: 9.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

Broadstone Net Lease

A-Score: 6.6/10

Value: 3.8

Growth: 3.8

Quality: 6.8

Yield: 10.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

Essential Properties Realty Trust

A-Score: 6.4/10

Value: 2.9

Growth: 6.8

Quality: 6.8

Yield: 8.0

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

Innovative Industrial Properties

A-Score: 6.1/10

Value: 6.6

Growth: 6.3

Quality: 8.4

Yield: 10.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

DigitalBridge

A-Score: 3.5/10

Value: 4.3

Growth: 3.2

Quality: 7.7

Yield: 0.0

Momentum: 2.5

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

1.11%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.48%

Broadstone Net Lease, Inc. - US11135E2037

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BNL

1.c. Company Highlights

Better Quality

Average Yield

Medium Volatility

Earnings Beats

Revenues Beats

Average Quality

Earnings Miss

Revenues Miss

Lower Growth

Fairly Valued

Less Volatile

Stable Momentum

2. Broadstone Net Lease's Q3 2025 Earnings: Strong Execution and Growth Strategy

Investment and Development Activity

Capital Management and Funding

Valuation and Growth Prospects

Tenant Credit and Risk Management

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Contractual Rental Amounts Billed for Operating Leases

Expected Growth: 2.0%

Contractual Operating Lease Billings on a Straight-line Basis

Expected Growth: 2.0%

Operating Expenses Billed to Tenants

Expected Growth: 2.0%

Other Income from Real Estate Transactions

Expected Growth: 2.0%

Write-off of Accrued Rental Income

Expected Growth: 2.0%

Direct Financing Leases

Expected Growth: 2.0%

Variable Rental

Expected Growth: 2.0%

Uncollectible Rental Amounts Billed

Expected Growth: 2.0%

Sales-type Leases

Expected Growth: 2.0%

7. Detailed Products

Triple-Net Leased Properties

Sale-Leaseback Transactions

Build-to-Suit Development

Real Estate Investment Trust (REIT) Services

8. Broadstone Net Lease, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Broadstone Net Lease, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

12.e Scoring ^Insights

12.f DCF ^BETA