Broadstone Net Lease Inc
NYSE:BNL
Broadstone Net Lease Inc
In the often-complex world of real estate investment, Broadstone Net Lease Inc. stands out by adhering to a straightforward and resilient business model. The company, headquartered in Rochester, New York, specializes in the acquisition of single-tenant, triple-net-leased properties across various sectors. This means Broadstone Net Lease takes ownership of properties leased to tenants who are responsible for the operating expenses, including property taxes, insurance, and maintenance. This arrangement not only ensures a steady stream of rental income but also reduces the landlord's exposure to the unpredictable costs associated with property management. By focusing on a diversified portfolio that includes retail, healthcare, industrial, office, and restaurant venues, the company strategically minimizes risks tied to any single industry, enhancing the stability of its revenue flow.
Broadstone Net Lease's success lies in its meticulous approach to acquisitions and tenant partnerships. The company seeks out properties with high-quality tenants, often with long-term leases and solid credit standings, effectively building a portfolio that's as robust as it is diversified. This strategy ensures that Broadstone benefits from predictable, long-term cash flows which are largely shielded from economic volatility. As a publicly-traded Real Estate Investment Trust (REIT), it also offers investors a tax-advantaged income stream. By distributing at least 90% of its taxable income to shareholders in the form of dividends, Broadstone Net Lease not only adheres to REIT regulations but also delivers tangible returns on investment, bolstering its reputation as a stable and reliable entity in the real estate sector.
In the often-complex world of real estate investment, Broadstone Net Lease Inc. stands out by adhering to a straightforward and resilient business model. The company, headquartered in Rochester, New York, specializes in the acquisition of single-tenant, triple-net-leased properties across various sectors. This means Broadstone Net Lease takes ownership of properties leased to tenants who are responsible for the operating expenses, including property taxes, insurance, and maintenance. This arrangement not only ensures a steady stream of rental income but also reduces the landlord's exposure to the unpredictable costs associated with property management. By focusing on a diversified portfolio that includes retail, healthcare, industrial, office, and restaurant venues, the company strategically minimizes risks tied to any single industry, enhancing the stability of its revenue flow.
Broadstone Net Lease's success lies in its meticulous approach to acquisitions and tenant partnerships. The company seeks out properties with high-quality tenants, often with long-term leases and solid credit standings, effectively building a portfolio that's as robust as it is diversified. This strategy ensures that Broadstone benefits from predictable, long-term cash flows which are largely shielded from economic volatility. As a publicly-traded Real Estate Investment Trust (REIT), it also offers investors a tax-advantaged income stream. By distributing at least 90% of its taxable income to shareholders in the form of dividends, Broadstone Net Lease not only adheres to REIT regulations but also delivers tangible returns on investment, bolstering its reputation as a stable and reliable entity in the real estate sector.
Strong AFFO Growth: Broadstone delivered $1.49 AFFO per share for 2025, up 4.2% year-over-year, reflecting solid portfolio performance and successful investment activity.
High Portfolio Occupancy: The portfolio ended the year 99% leased with 99.8% of rents collected, demonstrating resilient tenant performance.
Build-to-Suit Pipeline: The company maintained a $350M build-to-suit pipeline for 2026, with $26M incremental ABR expected and a rolling target of $350–$500M in active development.
2026 AFFO Guidance Reiterated: Management reaffirmed 2026 AFFO guidance of $1.53–$1.57 per share, implying 4% growth at the midpoint.
Low Bad Debt: 2025 bad debt was only 31 basis points, well below historical reserves, with 75 basis points assumed for 2026 guidance.
Disciplined Capital Deployment: $748M was invested in 2025, primarily in new property acquisitions and build-to-suit developments, and 28 properties were sold for $96M.
Project Triboro Update: About $100M invested in a major industrial site with significant power capacity, targeting data center development or multiple industrial uses.
Conservative Equity Issuance: Only $43M raised via the ATM program since November; management does not expect significant new equity issuance at current valuation levels.
