8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  May 8, 2018

BROADSTONE NET LEASE, INC.

(Exact name of registrant as specified in its charter)

Maryland	000-55774	26-1516177
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

800 Clinton Square, Rochester, New York	14604
(Address of principal executive offices)	(Zip Code)

(585) 287-6500

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company    ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☒

Item 2.02Results of Operations and Financial Condition

On May 8, 2018, Broadstone Net Lease, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2018. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. Additionally, on May 8, 2018, the Company made available on its website an updated presentation containing quarterly supplemental information pertaining to its operations and financial results including the quarter ended March 31, 2018. A copy of the quarterly supplemental information is attached hereto as Exhibit 99.2 and is incorporated herein by reference. The press release and the quarterly supplemental information are also available on the Company’s website.

The information contained in this Item 2.02, including the information contained in the press release attached as Exhibit 99.1 hereto and the quarterly supplemental information attached as Exhibit 99.2 hereto, are being “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. References to the Company’s website in this Current Report on Form 8-K and in the attached Exhibit 99.1 and Exhibit 99.2 to this Current Report on Form 8-K do not incorporate by reference the information on such website into this Current Report on Form 8-K and the Company disclaims any such incorporation by reference.

Item 9.01Financial Statements and Exhibits

(d)  Exhibits 

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press Release dated May 8, 2018
99.2	Quarterly Supplemental Information for the Quarter Ended March 31 2018

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BROADSTONE NET LEASE, INC.

/s/ John D. Moragne

Name: John D. Moragne

Title: Executive Vice President, General Counsel, Chief Compliance Officer, and Secretary

Date: May 8, 2018

EX-99.1

EXHIBIT 99.1

For Immediate Release

May 8, 2018

Investor Relations Contact: Christopher J. Brodhead Senior Vice President, Investor Relations chris.brodhead@broadstone.com 585.287.6499

Broadstone Net Lease, Inc. Reports 2018 First Quarter Operating Results

ROCHESTER, N.Y. – Broadstone Net Lease, Inc. (“BNL,” ”we,” or ”us”), a privately offered real estate investment trust (“REIT”) managed by Broadstone Real Estate, LLC (“Broadstone”), today filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 (the “Q1 2018 10-Q”), which is available free of charge on the public website of the Securities and Exchange Commission (“SEC”) and on our website at http://investors.bnl.broadstone.com.

“Broadstone Net Lease experienced exceptional performance during the first quarter of 2018, driven by the strong and accretive acquisition volume experienced throughout 2017, and exceptional portfolio performance via high occupancy levels, continued strong rent collections, and best-in-class annual rent escalations, combined with prudent capital and balance sheet management,” said Chris Czarnecki, BNL’s Chief Executive Officer. “As a result of implementing a monthly cap on new equity raises last November, we have been able to more closely match fund new acquisitions and move BNL’s leverage profile towards a consistent and optimal level while maintaining the discipline and conservatism that is key to our status as an investment grade borrower in the REIT space.“ Czarnecki continued, “During the quarter the REIT made two acquisitions, further diversifying the portfolio and strengthening the quality of our underlying tenant base. We are excited about the depth of our acquisition pipeline and anticipate continued growth in the REIT’s holdings during the coming quarters. We also continued to dispose of non-core assets to realize gains for investors and improve the overall quality of the portfolio.”

OPERATING HIGHLIGHTS

During the three months ended March 31, 2018, we:

- Increased revenues to $55.6 million, representing growth of 31.8% compared to the three months ended March 31, 2017.

- Generated earnings per diluted share (on a GAAP basis, as defined below), including amounts attributable to noncontrolling interests, of $0.92.

- Generated funds from operations (“FFO”) and adjusted funds from operations (“AFFO”), both of which are non-GAAP financial measures, of $1.68 and $1.46 per diluted share, respectively.

- Subsequent to quarter end, the Independent Directors Committee of our Board of Directors approved increasing the Determined Share Value (“DSV”) to $83.00 per share, from $81.00 per share, which will remain in effect through July 31, 2018.

- Closed two real estate acquisitions totaling $100.5 million, excluding capitalized acquisition expenses, adding 27 new properties at a weighted average initial cash capitalization rate of 6.4%. The propertiesacquiredhadaweightedaverageremainingleasetermof17.6yearsatthetimeofacquisitionwithweightedaverage annual rent increases of1.9%.

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- Disposed of five properties for $15.7 million, at a gain of $3.3 million above carrying value. These properties represented approximately 0.6% of our December 31, 2017 portfolio value.

- Received$57.0millioninsubscription proceedsfromnewandexistingstockholders.As of the end of the quarter there were 2,741 common stockholders and 52 holders of noncontrolling membership units in Broadstone Net Lease, LLC (the “OperatingCompany”).

- Collected more than 99% of rents due and maintained a 100% leased portfolio.

FFO and AFFO are performance measures that are not calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We present these non-GAAP measures as we believe certain investors and other users of our financialinformationusethemaspartoftheirevaluationofourhistoricaloperatingperformance.Pleaseseeourdiscussionbelowunder the heading “Reconciliation of Non-GAAP Measures,” which includes a discussion of the definition, purpose, and use of these non-GAAP measures as well as a reconciliation of each to the most comparable GAAP measure, and “Notice Regarding Non-GAAP Financial Measures.”

FINANCIAL RESULTS

	For the three months ended
	March 31,
(in thousands, except per share data)	2018		2017
Revenues	$	55,589	$	42,185
Net income, including non-controlling interests	$	18,995	$	13,747
Net earnings per diluted share	$	0.92	$	0.81
FFO	$	34,858	$	27,537
FFO per diluted share	$	1.68	$	1.62
AFFO	$	30,271	$	24,082
AFFO per diluted share	$	1.46	$	1.42
Diluted Weighted Average Shares Outstanding		20,719		17,009

Revenues

Revenues increased by $13.4 million, or 31.8%, to $55.6 million for the three months ended March 31, 2018, compared to $42.2 million for the three months ended March 31, 2017. The increase in revenues period-over-period is primarily attributable to the growth in our real estate portfolio in 2017. We acquired $683.6 million in real estate, excluding acquisition costs, throughout 2017, mainly during the second half of the year. The acquired properties will contribute annual straight-line rent income of $56.1 million, or $14.0 million per quarter. During the three months ended March 31, 2018, we closed two real estate acquisitions and acquired $100.5 million in real estate, excluding capitalized acquisition costs, comprised of 27 new properties which we expect to provide further growth compared to 2017 over the remainder of 2018.

Net Income

Net income increased by $5.2 million, or 38.2%, to $19.0 million for the three months ended March 31, 2018, compared to approximately $13.8 million for the three months ended March 31, 2017. Net earnings per diluted share increased $0.11 during the same period, to $0.92 per share. The increase is mainly attributable to growth in our portfolio, combined with an increase in gains on the sale of real estate. During the three months ended March 31, 2018, we disposed of five properties and recorded a

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gain on sale of $3.3 million over carrying value. This compares to a gain of $0.8 million recorded in the three months ended March 31, 2017, associated with the sale of one property. Partially offsetting these factors was increased interest expense, which reflected an increase in outstanding borrowings on our unsecured credit facilities in 2018 as compared to the prior year.

The increase in net income in the earnings per share computation was partially offset by a 3.7 million increase in the diluted weighted average number of shares of our common stock outstanding as compared to 2017, reflecting ongoing equity raises. We use proceeds from the sale of stock to partially fund acquisitions of real estate, which contributed to the increased revenues discussed above.

FFO

FFO increased $7.3 million, or 26.6%, to $34.9 million for the three months ended March 31, 2018, compared to $27.5 million for the three months ended March 31, 2017. FFO per diluted share increased by $0.06 during the same period, to $1.68 per share. Consistent with the growth in net income, the increase in FFO is primarily driven by growth in our real estate investment portfolio. FFO growth was also ahead of net income growth due to higher real property depreciation and amortization, which are added back to net income in calculating FFO. These factors were partially offset by increased gains on the sale of real estate in the three months ended March 31, 2018, which are deducted from net income in calculating FFO.

AFFO

AFFO increased $6.2 million, or 25.7%, to $30.3 million for the three months ended March 31, 2018, compared to $24.1 million for the three months ended March 31, 2017.AFFO per diluted share increased $0.04 during the same period, to $1.46 per diluted share. As compared to net income and FFO, the year-over-year growth in AFFO was impacted by a $1.1 million increase in the deduction for straight-line rent adjustments, which reflects the growth in our real estate investment portfolio.

REAL ESTATE PORTFOLIO UPDATE

As of March 31, 2018, we owned a diversified portfolio of 550 individual net leased commercial properties located in 40 states comprising approximately 16.3 million rentable square feet of operational space. As of March 31, 2018, our properties were 100% leased to 137 different commercial tenants, with no single tenant accounting for more than 4% of our annual rental stream. Our properties include those used for retail, industrial, healthcare, office, and other purposes.

During the three months ended March 31, 2018, we acquired 27 properties via two transactions for $100.5 million, excluding capitalized acquisition expenses, at a weighted average initial cash capitalization rate of 6.4%. The properties acquired had a weighted average lease term of 17.6 years at the time of acquisition and weighted average annual rent increases of 1.9%.

We also disposed of five properties during the three months ended March 31, 2018 for a gain of $3.3 million over carrying value. Our management team plans to continue to be strategic in its disposition activities. Such activities can improve the overall quality of our portfolio and capture value for stockholders, as some assets are sold for premiums. To the extent possible, we will deploy proceeds from the sale of real estate in order to make accretive investments, preferably on a tax-deferred basis pursuant to 1031 exchanges.

Based on current market conditions, anticipated equity and debt capital raises (including an anticipated debt private placement in the second quarter of 2018), and available capacity under our credit facilities, we continue to target a similar volume of acquisitions in 2018 as in 2017.

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CAPITALIZATION/BALANCE SHEET UPDATE

During the three months ended March 31, 2018, we raised $57.0 million in offering proceeds from our ongoing private offering of common stock, of which approximately $45.0millionwasreceivedincashand$12.0millionwasraisedviaourDistributionReinvestment Plan (“DRIP”). Approximately 46% of our investors participate in the DRIP, calculated based on the number of shares of our common stock and membership units in the Operating Companyoutstanding.

In addition to continued equity raises, we increased the outstanding borrowings on our revolver from $273.0 million at December 31, 2017, to $317.0 million at March 31, 2018. The proceeds were used to partially fund our portfolio acquisitions during the three months ended March 31, 2018. Atquarterend, ourtotaloutstandingborrowings,grossofdeferred debt issuance costs, totaled $1.2 billion, providing a leverage ratio of approximately 41.7% of the approximate market value of ourassets. On April 27, 2018, Moody’s Investor Services reaffirmed our investment grade credit rating of Baa3.

To balance the timing of equity capital inflows and deployment of those funds in the form of real estate investments, as well as to bring our leverage ratio closer to the higher end of our targeted leverage range while remaining well within our investment grade profile, we have implemented a cap and queue program for new and additional subscriptions at our monthly equity closings. The monthly cap only applies to new or additional investments, and not to investments made pursuant to our DRIP or equity capital received in connection with UPREIT transactions.ForthemonthsofFebruary 2018, March 2018, and April 2018,newand additionalinvestmentswerelimitedto$15.0 millionpermonth. This cap will remain in place for the months of May 2018, June 2018, and July 2018. Going forward, the use and amount of the cap will be adjusted as we deem appropriate based upon a number of factors, including, among others, targeted leverage, capital deployment, our acquisition pipeline, and market conditions.

DETERMINED SHARE VALUE (“DSV”)

At its May 8, 2018, meeting, the Independent Directors Committee of our Board of Directors (the “IDC”) voted to increase the DSVto$83persharefortheperiodfromMay1,2018,throughJuly 31,2018.At$83pershare,theimpliedcapitalizationrate for our portfolio is 6.76%. The DSV is established in good faith by the IDC based on the net asset value (“NAV”) of our portfolio, input from management and third-party consultants, and such other factors as the IDC may determine. Additional information regarding our valuationpolicyandprocedures,andthedeterminationoftheDSVbytheIDC,isavailableinour2017 Form10-Kfiled with the SEC on March 15, 2018.

DISTRIBUTIONS

AtitsMay 8,2018,meeting,ourBoardofDirectorsdeclaredmonthlydistributionsof$0.43pershareofourcommonstockand unit of membership interest in the Operating Company to be paid by us to our stockholders and members of the Operating Company (other than us) of record as follows:

Dividend Per Share/Unit	Record Date	Payment Date (on or before)
$0.43	May 30, 2018	June 15, 2018
$0.43	June 28, 2018	July 13, 2018
$0.43	July 30, 2018	August 15, 2018

Investorsmaypurchaseadditionalsharesofourcommonstockviacashinvestment(andthecompletionofasupplementalsubscription agreement),orbyelectingtoreinvesttheirdistributionsthroughtheDRIP.Thepurchasepriceforsharesofourcommonstockacquired through the DRIP will be 98% of theDSV.

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CONFERENCE CALL INFORMATION

In conjunction with the release of our operating results, we will host a conference call on Thursday, May 10, 2018, at 12:00 p.m. EDT to discuss the results.

To access the live webcast, please visit: https://services.choruscall.com/links/bnl180510.html.

To view a replay of the call, please visit:  http://investors.bnl.broadstone.com through May 24, 2018.

INVESTOR PRESENTATION

Our current investor presentation and supplemental materials for our first quarter 2018 financial and operating results are available at http://investors.bnl.broadstone.com. This site also offers the capability to sign up for automated email alerts when BNL issues public filings of any kind.

About Broadstone Net Lease, Inc.

BNL invests in freestanding, single-tenant, net leased commercial properties located throughout the United States, primarily via sale and leaseback, lease assumption, and UPREIT transactions. UPREIT transactions (where “UPREIT” means “umbrella partnership real estate investment trust”) provide a tax deferred exit strategy for owners of real estate who might otherwise recognize a significant taxable gain in a cash sale of a highly appreciated property with a low tax cost basis. With a diversified portfolio of 550 retail, healthcare, industrial, office and other properties in 40 states as of March 31, 2018, the REIT targets individual or portfolio acquisitions within the $5 million to $300 million range.

Therearecurrentlymorethan2,700shareholdersinBNL,whichisexternallymanagedbyBroadstoneRealEstate,LLC.BNLremains openfornewinvestmentbyaccreditedinvestorsonamonthlybasis,withaminimum direct investmentof$500,000.Sharesareoffereddirectly byBNLviaprivateplacement.For additional information about BNL, please visit its corporate website at http://investors.bnl.broadstone.com.

Forward-Looking Statements

Thispressreleasecontains“forward-looking”statementswithinthemeaningofSection27AoftheSecuritiesActof1933,asamended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies, and prospects, both business and financial. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," “should,” "expect," "intend," "anticipate," "estimate," “would be,“ "believe," "continue," or other similar words. Forward-looking statements involve known and unknown risks, which may cause our actual future results to differ materially from expected results, including risks related to general economic conditions, local real estate conditions, tenant financial health, property acquisitions and the timing of these acquisitions, and the availability of capital to finance planned growth, among others, as described in our filings with the Securities and Exchange Commission. Consequently, forward-lookingstatementsshouldberegardedsolelyasreflectionsofourcurrentoperatingplansandestimatesasofthedatesindicated.Actual operatingresultsmaydiffermateriallyfromwhatisexpressedorforecastinthispressrelease.Weundertakenoobligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements weremade.

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Notice Regarding Non-GAAP Financial Measures

In addition to our reported results and net earnings per diluted share, which are financial measures presented in accordance with GAAP,thispressreleaseandthereferencedinvestorpresentationandsupplementalfinancialandoperatingmaterialscontainandmay refer to certain non-GAAP financial measures, including Funds from Operations, or FFO, and Adjusted Funds from Operations, or AFFO. We believe the use of FFO and AFFO are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO and AFFO should not be considered alternatives to net incomeasaperformancemeasureortocashflowsfromoperations,asreportedonourstatementofcashflows,orasaliquiditymeasure, and should be considered in addition to, and not in lieu of, GAAP financial measures. A reconciliation of FFO and AFFO to the most directly comparable GAAP financial measure and statements of why management believes these measures are useful to investors are included below and in the investor presentation materials that are referencedabove.

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Broadstone Net Lease, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except per share amounts)

	March 31, 2018			December 31, 2017
Assets
Accounted for using the operating method, net of accumulated depreciation	$	2,251,938		$	2,186,141
Accounted for using the direct financing method		41,610			41,617
Investment in rental property, net		2,293,548			2,227,758
Cash and cash equivalents		13,499			9,355
Restricted cash		11,251			744
Accrued rental income		56,465			52,018
Tenant and other receivables, net		421			897
Tenant and capital reserves		992			943
Prepaid expenses and other assets		855			267
Notes receivable		6,527			6,527
Investment in related party		10,000			10,000
Interest rate swap, assets		24,040			11,008
Intangible lease assets, net		247,249			242,659
Debt issuance costs – unsecured revolver, net		2,835			3,026
Leasing fees, net		13,987			13,554
Total assets	$	2,681,669		$	2,578,756
Liabilities and equity
Unsecured revolver	$	317,000		$	273,000
Mortgages and notes payable, net		67,097			67,832
Unsecured term notes, net		837,159			836,912
Interest rate swap, liabilities		1,096			5,020
Accounts payable and other liabilities		22,197			20,345
Due to related parties		2,271			722
Tenant improvement allowances		4,292			5,669
Accrued interest payable		4,642			3,311
Intangible lease liabilities, net		80,235			81,744
Total liabilities		1,335,989			1,294,555
Equity
Broadstone Net Lease, Inc. stockholders' equity:
Preferred stock, $0.001 par value; 20,000 shares authorized, no shares issued    or outstanding		—			—
Common stock, $0.001 par value; 80,000 shares authorized, 19,572 and 18,909 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively		20			19
Additional paid-in capital		1,355,268			1,301,979
Subscriptions receivable		(144	)		(15	)
Cumulative distributions in excess of retained earnings		(127,183	)		(120,280	)
Accumulated other comprehensive income		20,807			5,122
Total Broadstone Net Lease, Inc. stockholders’ equity		1,248,768			1,186,825
Non-controlling interests		96,912			97,376
Total equity		1,345,680			1,284,201
Total liabilities and equity	$	2,681,669		$	2,578,756

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Broadstone Net Lease, Inc. and Subsidiaries

Condensed Consolidated Statements of Income and Comprehensive Income

(Unaudited)

(in thousands, except per share amounts)

	For the three months ended March 31,
	2018			2017
Revenues
Rental income from operating leases	$	51,832		$	39,401
Earned income from direct financing leases		966			1,133
Operating expenses reimbursed from tenants		2,749			1,617
Other income from real estate transactions		42			34
Total revenues		55,589			42,185
Operating expenses
Depreciation and amortization		19,202			14,593
Asset management fees		4,143			3,193
Property management fees		1,517			1,168
Property and operating expense		2,619			1,577
General and administrative		1,330			963
State and franchise tax		243			50
Total operating expenses		29,054			21,544
Operating income		26,535			20,641
Other income (expenses)
Preferred distribution income		188			181
Interest income		110			112
Interest expense		(11,177	)		(7,942	)
Cost of debt extinguishment		—			(48	)
Gain on sale of real estate		3,339			803
Net income		18,995			13,747
Net income attributable to non-controlling interests		(1,422	)		(1,153	)
Net income attributable to Broadstone Net Lease, Inc.	$	17,573		$	12,594
Weighted average number of common shares outstanding
Basic		19,167			15,582
Diluted		20,719			17,009
Net Earnings per common share
Basic and diluted	$	0.92		$	0.81
Comprehensive income
Net income	$	18,995		$	13,747
Other comprehensive income
Change in fair value of interest rate swaps		16,955			2,560
Comprehensive income		35,950			16,307
Comprehensive income attributable to non-controlling interests		(2,692	)		(1,368	)
Comprehensive income attributable to Broadstone Net Lease, Inc.	$	33,258		$	14,939

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Reconciliation of Non-GAAP Measures

The following is a reconciliation of net income to FFO and AFFO for the three months ended March 31, 2018 and 2017. Also presented is the weighted average number of shares of our common stock and noncontrolling membership units in the Operating Company used for the basic and diluted computation per share:

	For the three months ended
(in thousands, except per share data)	March 31,
	2018			2017
Net income	$	18,995		$	13,747
Real property depreciation and amortization		19,202			14,593
Gain on sale of real estate		(3,339	)		(803	)
FFO	$	34,858		$	27,537
Capital improvements / reserves		(49	)		(48	)
Straight line rent adjustment		(5,141	)		(4,038	)
Cost of debt extinguishment		—			48
Amortization of debt issuance costs		461			424
Amortization of net mortgage premiums		(36	)		(41	)
Amortization of lease intangibles		178			200
AFFO	$	30,271		$	24,082
Diluted WASO(1)		20,719			17,009
Net earnings per share, basic and diluted	$	0.92		$	0.81
FFO per diluted share		1.68			1.62
AFFO per diluted share	$	1.46		$	1.42

(1) Diluted weighted average number of shares of our common stock and membership units in the Operating Companyoutstanding(“WASO”), computed in accordance withGAAP.

Our reported results and net earnings per dilutive share are presented in accordance with GAAP. We also disclose Funds from Operations, or FFO, and Adjusted Funds from Operations, or AFFO, each of which are non-GAAP measures. We believe the use of FFO and AFFO are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO and AFFO should not be considered alternatives to net income as a performance measure or to cash flows from operations, as reported on our statement of cash flows, or as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures.

WecomputeFFOinaccordancewiththestandardsestablishedbythe2002WhitePaperonFFOapprovedbytheBoardofGovernors of the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as GAAP net income or loss adjusted toexcludenetgains(losses)fromsalesofdepreciatedrealestateassets,depreciationandamortizationexpensefromrealestateassets, and impairment charges related to previously depreciated real estate assets. To derive AFFO, we modify the NAREIT computation of FFOtoincludeotheradjustmentstoGAAPnetincomerelatedtocertainnon-cashrevenuesandexpenses,includingstraight-linerents, cost of debt extinguishments, amortization of debt issuance costs, amortization of net mortgage premiums, amortization of lease intangibles, (gain) loss on interest rate swaps and other non-cash interest expense, extraordinary items and other specified non-cash items. We believe that such items are not a result of normal operations and thus we believe excluding such items assists management and investors in distinguishing whether changes in our operations are due to growth or decline of operations at our properties or from otherfactors.

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Ourleasesincluderentsthatincreaseoverthetermoftheleasetocompensateusforanticipatedincreasesinmarketrentalsovertime. Our leases do not include significant front-loading or back-loading of payments or significant rent-free periods. Therefore, we find it useful to evaluate rent on a contractual basis as it allows for comparison of existing rental rates to market rental rates. Additionally, we exclude the amortization of lease intangibles.WeexcludethesecostsfromAFFObecausetheyareupfrontexpensesthatarerecognizedinconjunctionwithanacquisition,and therefore,arenotindicativeofongoingoperationalresultsoftheportfolio.We also exclude costs or gains recorded on the extinguishment of debt, non-cash interest expense and gains, and the amortizationofdebtissuancecostsandnetmortgagepremiumsastheyarenotindicativeofongoingoperationalresultsoftheportfolio. We use AFFO as a measure of our performance when we formulate corporategoals.

FFO is used by management, investors, and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers, primarily because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. We believe that AFFO is a useful supplemental measure for investors to consider because it will help them to better assess our operating performance without the distortions created by non-cash revenues or expenses. FFO and AFFO may not be comparable to similarly titled measures employed by other REITs, and comparisons of our FFO and AFFO with the same or similar measures disclosed by other REITs may not be meaningful.

Neither the SEC, nor any other regulatory body has passed judgment on the acceptability of the adjustments that we use to calculate FFO and AFFO. In the future, the SEC, or another regulatory body may decide to standardize the allowable adjustments across the REIT industry and in response to such standardization we may have to adjust our calculation and characterization of FFO and AFFO accordingly.

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EX-99.2

Exhibit 99.2

Q1 2018 QUARTERLY SUPPLEMENTAL INFORMATION Broadstone Net Lease, Inc. is a publicly reporting, privately offered Real Estate Investment Trust (REIT) that acquires and holds freestanding, single-tenant, net-leased commercial properties. It is focused on generating predictable, tax-sheltered cash flow and attractive total return for Stockholders. www.broadstone.com

Q1 2018 SUPPLEMENTAL INFORMATION

Table of Contents

Section	Page
Company Overview	4
Quarterly Financial Summary	5
Income Statement Summary	6
Funds From Operations (FFO)	7
Adjusted Funds From Operations (AFFO)	7
Balance Sheet	8
Capital Structure	9
Equity Summary	9
Debt Outstanding	10
Debt Maturities and Interest Rate Exposure	11
Credit Facility and Notes Covenants	12
Acquisitions	13
Dispositions	13
Portfolio at a Glance: Key Metrics	14
Diversification: Tenants and Brands	15
Diversification: Property Type	16
Diversification: Tenant Industry	16
Diversification: Geography	17
Lease Expirations	18
Occupancy	19
Dividends	19
Disclosures	20

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 2

Q1 2018 SUPPLEMENTAL INFORMATION

About the Data

This data and other information described herein are as of and for the three months ended March 31, 2018 unless otherwise indicated. Future performance may not be consistent with past performance and is subject to change and inherent risks and uncertainties. This information should be read in conjunction with the financial statements and the Management's Discussion and Analysis of Financial Condition and Results of Operations sections contained in Broadstone Net Lease, Inc.'s (the "Company," "BNL," "us," "our" and "we") Annual Report on Form 10-K for the year ended December 31, 2017 and Quarterly Reports on Form 10-Q for the periods ended March 31, 2018, September 30, 2017 and June 30, 2017.

Forward Looking Statements

This information contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” or other similar words. Forward-looking statements involve known and unknown risks, which may cause the Company’s actual future results to differ materially from expected results, including risks related to general economic conditions, local real estate conditions, tenant financial health, property acquisitions and the timing of these acquisitions, and the availability of capital to finance planned growth, among others, as described in the Company’s filings with the Securities and Exchange Commission. Consequently, forward-looking statements should be regarded solely as reflections of our current operating plans and estimates as of the dates indicated. Actual operating results may differ materially from what is expressed or forecast herein. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 3

Q1 2018 SUPPLEMENTAL INFORMATION

Company Overview

Broadstone Net Lease, Inc. is an externally managed REIT, formed as a Maryland corporation in 2007 to acquire and hold single-tenant, net-leased commercial real estate properties throughout the United States that are leased to the properties’ operators under long-term leases. We focus on real estate that is operated by a single tenant which is an integral part of the tenant’s business. Our diversified portfolio of real estate includes retail properties, such as quick service and casual dining restaurants, healthcare facilities, industrial manufacturing facilities, warehouse and distribution centers, and corporate offices, among others. We target properties with credit-worthy tenants that look to engage in a long-term lease relationship. Through long-term leases, our tenants are able to retain control of their critical locations, while conserving their debt and equity to fund their fundamental business operations.

Senior Management Amy L. Tait Executive Chairman of the Board & Chief Investment Officer Christopher J. Czarnecki Chief Executive Officer and Director Sean T. Cutt President and Chief Operating Officer Ryan M. Albano Executive Vice President and Chief Financial Officer Tim Dieffenbacher Senior Vice President and Chief Accounting Officer David E. Kasprzak Executive Vice President and Chief Business Development Officer John D. Moragne Executive Vice President, Chief Compliance Officer, General Counsel, and Secretary Timothy J. Holland
Executive Vice President and Chief Administrative Officer Board of Directors Amy L. Tait Executive Chairman & Chief Investment Officer of Broadstone Real Estate, LLC Christopher J. Czarnecki Chief Executive Officer of Broadstone Real Estate, LLC   Geoffrey H. Rosenberger Lead Independent Director Shekar Narasimhan Independent Director James H. Watters Independent Director David M. Jacobstein Independent Director Laurie A. Hawkes Independent Director Thomas P. Lydon, Jr. Independent Director Agha S. Khan Director

Corporate Office & Contact Information 800 Clinton Square
Rochester, New York 14604
585-287-6500

info@broadstone.com
www.broadstone.com   Transfer Agent Computershare Trust Company, N.A. 250 Royall Street Canton, Massachusetts 02021 800-736-3001

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 4

Q1 2018 SUPPLEMENTAL INFORMATION

Quarterly Financial Summary

(unaudited, dollars in thousands, except per share data)

	Q1 2018			Q4 2017			Q3 2017			Q2 2017			Q1 2017
Financial Summary
Investment in rental property, net	$	2,293,548		$	2,227,758		$	1,933,320		$	1,816,900		$	1,743,087
Total assets		2,681,669			2,578,756			2,244,099			2,138,177			2,047,326
Mortgage and notes payable, net		67,097			67,832			57,883			67,705			91,326
Unsecured term notes, net and revolver		1,154,159			1,109,912			848,407			811,670			778,171
Total liabilities		1,335,989			1,294,555			1,011,333			971,379			954,943
Total Broadstone Net Lease, Inc. stockholders'   equity		1,248,768			1,186,825			1,140,214			1,073,307			1,006,208
Total equity (Book Value)		1,345,680			1,284,201			1,232,766			1,166,798			1,092,383
Total revenues		55,589			49,472			46,235			43,671			42,185
Total operating expenses		29,054			26,284			26,827			22,026			21,544
Interest expense		11,177			9,569			9,380			7,860			7,942
Net income (loss)		18,995			16,826			12,990			15,992			13,747
Net earnings per common share, basic and diluted	$	0.92		$	0.84		$	0.68		$	0.89		$	0.81
FFO		34,858			31,460			27,189			25,248			27,537
FFO per share, basic and diluted	$	1.68		$	1.57		$	1.42		$	1.40		$	1.62
AFFO		30,271			27,006			24,813			24,048			24,082
AFFO per share, basic and diluted	$	1.46		$	1.34		$	1.30		$	1.33		$	1.42
Net cash provided by operating activities		32,237			25,575			27,057			21,322			23,986
Net cash used in investing activities		(87,524	)		(313,795	)		(134,292	)		(76,066	)		(87,682	)
Net cash provided by financing activities		69,938			283,696			78,087			58,878			80,230
Distributions declared		26,948			25,015			23,949			22,537			21,267
Distributions declared per diluted share	$	1.28		$	1.25		$	1.25		$	1.25		$	1.24
Portfolio Metrics
Properties		550			528			477			459			426
Rentable square feet	16.3M			15.9M			14.1M			13.4M			13.3M
% Leased		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Physical Occupancy		99.4	%		99.6	%		98.2	%		98.1	%		98.1	%
Weighted average remaining lease term (years)		13.0			13.1			13.2			13.4			13.5

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 5

Q1 2018 SUPPLEMENTAL INFORMATION

Income Statement Summary

(unaudited, in thousands, except per share data)

	Three Months Ended
	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Revenues
Rental income from operating leases	$	51,832		$	46,603		$	43,233		$	41,256		$	39,401
Earned income from direct financing leases		966			966			968			1,074			1,133
Operating expenses reimbursed from tenants		2,749			1,812			1,995			1,296			1,617
Other income from real estate transactions		42			91			39			45			34
Total revenues		55,589			49,472			46,235			43,671			42,185
Operating expenses
Depreciation and amortization		19,202			17,294			15,643			14,733			14,593
Asset management fees		4,143			4,088			3,844			3,629			3,193
Property management fees		1,517			1,353			1,249			1,218			1,168
Property and operating expense		2,619			1,795			2,009			1,124			1,577
General and administrative		1,330			1,641			1,173			1,162			963
State and franchise tax		243			113			301			160			50
Provision for impairment of investment in rental properties		—			—			2,608			—			—
Total operating expenses		29,054			26,284			26,827			22,026			21,544
Operating income		26,535			23,188			19,408			21,645			20,641
Other income (expenses)
Preferred distribution income		188			187			187			182			181
Interest income		110			113			127			115			112
Interest expense		(11,177	)		(9,569	)		(9,380	)		(7,860	)		(7,942	)
(Cost) gain of debt extinguishment		—			(132	)		(1,404	)		(3,567	)		(48	)
Gain (loss) on sale of real estate		3,339			2,660			4,052			5,477			803
Other gains		—			379			—			—			—
Net income		18,995			16,826			12,990			15,992			13,747
Net income attributable to non-controlling interests		(1,422	)		(1,296	)		(1,042	)		(1,265	)		(1,153	)
Net income attributable to Broadstone Net Lease, Inc.	$	17,573		$	15,530		$	11,948		$	14,727		$	12,594
Weighted average number of common shares outstanding
Basic		19,167			18,515			17,617			16,623			15,582
Diluted		20,719			20,096			19,147			18,051			17,009
Net earnings per common share
Basic and diluted	$	0.92		$	0.84		$	0.68		$	0.89		$	0.81

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 6

Q1 2018 SUPPLEMENTAL INFORMATION

Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)

(unaudited, in thousands, except per share data)

	Three Months Ended
	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Net income	$	18,995		$	16,826		$	12,990		$	15,992		$	13,747
Real property depreciation and amortization		19,202			17,294			15,643			14,733			14,593
Gain on sale of real estate		(3,339	)		(2,660	)		(4,052	)		(5,477	)		(803	)
Provision for impairment of investment in rental properties		—			—			2,608			—			—
FFO	$	34,858		$	31,460		$	27,189		$	25,248		$	27,537
Capital improvements/reserves		(49	)		(49	)		(49	)		(49	)		(48	)
Straight line rent adjustment		(5,141	)		(4,547	)		(4,520	)		(4,030	)		(4,038	)
Cost of debt extinguishment		—			132			1,404			3,567			48
Other gains		—			(379	)		—			—			—
Amortization of debt issuance costs		461			452			486			433			424
Amortization of net mortgage premiums		(36	)		(74	)		205			(29	)		(41	)
Gain on interest rate swaps and other non-cash interest expense		—			—			—			(1,280	)		—
Amortization of lease intangibles		178			11			99			188			200
AFFO	$	30,271		$	27,006		$	24,813		$	24,048		$	24,082
Diluted weighted average shares outstanding1		20,719			20,096			19,147			18,051			17,009
Net earnings per share, basic and diluted	$	0.92		$	0.84		$	0.68		$	0.89		$	0.81
FFO per diluted share		1.68			1.57			1.42			1.40			1.62
AFFO per diluted share		1.46			1.34			1.30			1.33			1.42

¹ Diluted weighted average number of shares of our common stock and membership units in Broadstone Net Lease, LLC outstanding computed in accordance with GAAP.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 7

Q1 2018 SUPPLEMENTAL INFORMATION

Balance Sheet

(unaudited, in thousands)

	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Assets
Accounted for using the operating method, net of accumulated depreciation	$	2,251,938		$	2,186,141		$	1,891,708		$	1,775,293		$	1,695,815
Accounted for using the direct financing method		41,610			41,617			41,612			41,607			47,272
Investment in rental property, net		2,293,548			2,227,758			1,933,320			1,816,900			1,743,087
Cash and cash equivalents		13,499			9,355			13,698			35,752			32,804
Restricted cash		11,251			744			925			8,019			6,833
Accrued rental income		56,465			52,018			47,766			43,930			40,335
Tenant and other receivables, net		421			897			1,120			900			3,175
Tenant and capital reserves		992			943			897			848			799
Prepaid expenses and other assets		855			267			699			1,202			656
Notes receivable		6,527			6,527			6,527			6,527			6,527
Investment in related party		10,000			10,000			10,000			10,000			10,000
Interest rate swap, assets		24,040			11,008			7,493			7,781			10,515
Intangible lease assets, net		247,249			242,659			205,469			190,467			179,924
Debt issuance costs – unsecured revolver, net		2,835			3,026			3,139			3,325			682
Leasing fees, net		13,987			13,554			13,046			12,526			11,989
Total assets	$	2,681,669		$	2,578,756		$	2,244,099		$	2,138,177		$	2,047,326
Liabilities and equity
Unsecured revolver	$	317,000		$	273,000		$	126,500		$	90,000		$	120,000
Mortgages and notes payable, net		67,097			67,832			57,883			67,705			91,326
Unsecured term notes, net		837,159			836,912			721,907			721,670			658,171
Interest rate swap, liabilities		1,096			5,020			7,119			7,691			8,472
Accounts payable and other liabilities		22,197			20,345			18,426			18,233			19,151
Due to related parties		2,271			722			1,688			1,310			406
Tenant improvement allowances		4,292			5,669			6,627			5,627			7,204
Accrued interest payable		4,642			3,311			4,880			2,439			1,457
Intangible lease liabilities, net		80,235			81,744			66,303			56,704			48,756
Total liabilities		1,335,989			1,294,555			1,011,333			971,379			954,943
Equity
Broadstone Net Lease, Inc. stockholders' equity:
Preferred stock, $0.001 par value		—			—			—			—			—
Common stock, $0.001 par value		20			19			18			17			16
Additional paid-in capital		1,355,268			1,301,979			1,253,431			1,176,319			1,098,696
Subscriptions receivable		(144	)		(15	)		(470	)		—			(250	)
Cumulative distributions in excess of retained earnings		(127,183	)		(120,280	)		(112,725	)		(102,711	)		(96,692	)
Accumulated other comprehensive income		20,807			5,122			(40	)		(318	)		4,438
Total Broadstone Net Lease, Inc. stockholders’ equity		1,248,768			1,186,825			1,140,214			1,073,307			1,006,208
Non-controlling interests		96,912			97,376			92,552			93,491			86,175
Total equity		1,345,680			1,284,201			1,232,766			1,166,798			1,092,383
Total liabilities and equity	$	2,681,669		$	2,578,756		$	2,244,099		$	2,138,177		$	2,047,326

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 8

Q1 2018 SUPPLEMENTAL INFORMATION

Capital Structure

(unaudited, in thousands, except per share data)

EQUITY ($ in thousands, except per share amounts)
Shares of Common Stock		19,572
Membership Units		1,543
Common Stock & OP Units		21,115
Price Per Share / Unit		$81.00
IMPLIED EQUITY MARKET CAPITALIZATION	$	1,710,285
% of Total Capitalization		58.3	%
DEBT ($ in thousands)
Unsecured Revolving Credit Facility - 2022	$	317,000
Unsecured Term Loan Facilities		690,000
Unsecured Term Loan - 2021		325,000
Unsecured Term Loan - 2023		265,000
Unsecured Term Loan - 2024		100,000
Senior Unsecured Notes - 2027		150,000
Mortgage Debt - Various		67,713
TOTAL DEBT	$	1,224,713
% of Total Capitalization		41.7	%
% of Total Capitalization Floating Rate Debt		6.5	%
% of Total Capitalization Fixed Rate Debt		35.2	%

ENTERPRISE VALUE ($ in thousands)
Total Capitalization	$	2,934,998
Less: Cash and Cash Equivalents		(13,499	)
Enterprise Value	$	2,921,499

$325 million loan facility maturity is depicted with available extension options. The value of common stock and operating company unit equity is calculated by multiplying the total number of shares and units by BNL’s Determined Share Value of $81 as of March 31, 2018. The fixed/hedged unsecured debt encompasses both outstanding term notes and a portion of BNL’s LOC. Debt percentages are presented inclusive of two interest rate swaps totaling $50 million of notional that became effective 4/5/2018.

Equity Summary

(unaudited, dollars in millions)

Broadstone Net Lease raises equity on a monthly basis through private offerings to accredited investors. Beginning in November 2017, BNL implemented a cap on new and additional investments at its monthly equity closings. The cap applies to new or additional investments and does not apply to investments made pursuant to its DRIP or equity capital received (operating company units) in connection with UPREIT transactions.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 9

Q1 2018 SUPPLEMENTAL INFORMATION

Debt Outstanding

(unaudited, in thousands)

Year of Maturity	2015 Unsecured Term Loan Agreement		5.5-Year Term Loan		7-Year Term Loan		Revolver		Senior Notes		Mortgages and Notes Payable		Total
2018	$	—	$	—	$	—	$	14,000	$	—	$	2,357	$	16,357
2019		325,000		—		—		—		—		3,351		328,351
2020		—		—		—		—		—		8,777		8,777
2021		—		—		—		—		—		18,268		18,268
2022		—		—		—		303,000		—		8,828		311,828
Thereafter		—		265,000		100,000		—		150,000		26,132		541,132
Total	$	325,000	$	265,000	$	100,000	$	317,000	$	150,000	$	67,713	$	1,224,713

At March 31, 2018, the Company had an outstanding balance of $14 million on the swingline loan feature of the Revolver, due within five business days, which subsequently was rolled into the Revolver and will mature in 2022.

	Outstanding Balance
	March 31,			December 31,
		2018			2017		Interest Rate	Maturity Date
2015 Unsecured Term Loan Agreement	$	325,000		$	325,000		1- month LIBOR + 1.40%	Feb. 2019
2017 Unsecured Revolving Credit and Term Loan Agreement
Revolver		317,000			273,000		1- and 3-month LIBOR + 1.20%	Jan. 2022
5.5-Year Term Loan		265,000			265,000		1- month LIBOR + 1.35%	Jan. 2023
7-Year Term Loan		100,000			100,000		1- month LIBOR + 1.90%	Jun. 2024
		682,000			638,000
2017 Senior Notes		150,000			150,000		4.84%	Apr. 2027
Total		1,157,000			1,113,000
Debt issuance costs, net		(2,841	)		(3,088	)
		1,154,159			1,109,912

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 10

Q1 2018 SUPPLEMENTAL INFORMATION

Debt Maturities and Interest Rate Exposure

(unaudited, dollars in millions)

Debt Maturities

Broadstone Net Lease utilizes diversified sources of debt capital including unsecured bank debt, private placement and secured mortgages (where appropriate).

$325 million term loan facility depicted with extension options.

Interest Rate Exposure

Broadstone Net Lease uses interest rate swaps to mitigate the impact of interest rate variability. The intended net impact of the swaps is that the Company pays a fixed interest rate on its variable rate borrowings.

Interest rate exposure not inclusive of floating rate debt, as borrowings are short-term in nature. Chart inclusive of two interest rate swaps totaling $50 million of notional that became effective 4/5/2018.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 11

Q1 2018 SUPPLEMENTAL INFORMATION

Credit Facility and Notes Covenants

(unaudited)

The following is a summary of key financial covenants for the Company’s unsecured credit facility. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of March 31, 2018, the Company believes it is in compliance with the covenants.

Covenants	Required	Actual as of March 31, 2018
Leverage ratio	≤ 0.60 to 1.00		0.43
Secured indebtedness ratio	≤ 0.40 to 1.00		0.02
Unencumbered coverage ratio	≥ 1.75 to 1.00		4.05
Fixed charge coverage ratio	≥ 1.50 to 1.00		3.46
Total unsecured indebtedness to total unencumbered eligible property value	≤ 0.60 to 1.00		0.48
Dividends and other restricted payments	Only applicable in case of default	Not Applicable

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 12

Q1 2018 SUPPLEMENTAL INFORMATION

Acquisitions(unaudited, square feet and dollars in thousands)

The following table summarizes the Company’s property acquisition activity during 2018.

Q1 2018
Property Type	Number of Properties		Square Feet ('000s)		Weighted Average Lease Term (years)		Acquisition Price ($'000s)
Retail		24		116		20.0		67,903
Industrial		3		335		13.0		32,627
Total Properties		27		451		17.6		100,530
Weighted average cash cap rate								6.4	%

Dispositions

(unaudited, square feet and dollars in thousands)

The following table summarizes the Company’s property disposition activity during 2018.

Q1 2018
Property Type	Number of Properties		Square Feet ('000s)		Acquisition Price ($'000s)		Disposition Price ($'000s)		Net Book Value ($'000s)		Cash Cap Rate
Retail		3		10		7,009		9,503		6,727		6.4	%
Healthcare		2		30		6,464		7,310		5,672		8.4	%
Total Properties		5		40		13,473		16,813		12,399		7.3	%

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 13

Q1 2018 SUPPLEMENTAL INFORMATION

Portfolio at a Glance: Key Metrics

Properties	550
States	40
Total Building Sq. Footage	16.3M
Enterprise Value	$2.9B
Tenants	137
Brands	115
Industries	43
% Leased	100%
Physical Occupancy (based on SF)	99.4%
Top Twenty Tenant Concentration	40.5%
Investment Grade (tenant/guarantor)	12.9%
Financial Reporting Coverage	88.0%
Weighted Average Annual Rent Increases	2.1%
Weighted Average Remaining Lease Term	13.0 years

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 14

Q1 2018 SUPPLEMENTAL INFORMATION

Diversification: Tenants & Brands

(unaudited, rent percentages based on contractual rent over the next twelve months)

Top 20 Tenants

Tenant	# Properties		NTM Rent ($'000s)		NTM Rent as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
Red Lobster Hospitality		25	$	7,275		3.7	%		203		1.2	%
Art Van Furniture		9		6,626		3.3	%		542		3.3	%
Jack's Family Restaurants		36		5,880		3.0	%		121		0.7	%
Outback Steakhouse		24		5,359		2.7	%		152		0.9	%
Krispy Kreme Doughnut Corporation		26		4,908		2.5	%		152		0.9	%
Big Tex Trailer Manufacturing		17		4,585		2.3	%		1,302		8.0	%
Siemens		2		4,513		2.3	%		545		3.3	%
Nestle' Dreyer's Ice Cream Company		1		4,243		2.1	%		309		1.9	%
Nationwide Mutual Insurance Company		2		3,997		2.0	%		407		2.5	%
Arkansas Surgical Hospital		1		3,989		2.0	%		128		0.8	%
Bob Evans Restaurants		25		3,710		1.9	%		131		0.8	%
BEF Foods		2		3,652		1.8	%		330		2.0	%
Centene Management Company		1		3,029		1.5	%		220		1.3	%
Shemin Nurseries		9		2,755		1.4	%		97		0.6	%
GRHS Foundation		1		2,718		1.4	%		120		0.7	%
Froedtert & Medical College of Wisconsin		4		2,686		1.4	%		90		0.5	%
Raben Tire		19		2,674		1.3	%		455		2.8	%
MedVet Associates		7		2,652		1.3	%		148		0.9	%
K&N Management		4		2,624		1.3	%		41		0.3	%
Law Firm		1		2,584		1.3	%		157		1.0	%
Total Top 20 Tenants		216	$	80,459		40.5	%		5,650		34.4	%

Top 20 Brands

Brand	# Properties		NTM Rent ($'000s)		NTM Rent as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
Bob Evans Farms		27	$	7,361		3.7	%		462		2.8	%
Red Lobster		25		7,275		3.7	%		203		1.2	%
Art Van Furniture		9		6,626		3.3	%		542		3.3	%
Jack's Family Restaurants		36		5,880		3.0	%		121		0.7	%
Taco Bell		41		5,142		2.6	%		103		0.6	%
Wendy's		35		4,982		2.5	%		105		0.7	%
Krispy Kreme		26		4,908		2.5	%		152		0.9	%
Outback Steakhouse		22		4,686		2.4	%		139		0.9	%
Big Tex Trailers		17		4,585		2.3	%		1,302		8.0	%
Siemens		2		4,513		2.3	%		545		3.3	%
Nestle		1		4,243		2.1	%		309		1.9	%
Nationwide Mutual Insurance Co.		2		3,997		2.0	%		407		2.5	%
Arkansas Surgical Hospital		1		3,989		2.0	%		128		0.8	%
Applebee's Neighborhood Grill & Bar		20		3,802		1.9	%		101		0.6	%
Centene Corp.		1		3,029		1.5	%		220		1.4	%
SiteOne Landscape Supply		9		2,755		1.4	%		97		0.6	%
Rochester Regional Health System		1		2,718		1.4	%		120		0.7	%
Froedtert & Medical College of Wisconsin		4		2,686		1.4	%		90		0.6	%
Raben Tire & Auto Service		19		2,674		1.3	%		455		2.8	%
MedVet Medical & Cancer Center for Pets		7		2,652		1.3	%		148		0.9	%
Total Top 20 Brands		305	$	88,503		44.6	%		5,748		35.2	%

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 15

Q1 2018 SUPPLEMENTAL INFORMATION

Diversification: Property Type

(unaudited, rent percentages based on contractual rent over the next twelve months)

Property Type	# Properties		NTM Rent ($'000s)		NTM Rent as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
Retail - Casual Dining		112	$	25,013		12.6	%		718		4.4	%
Retail - QSR		148		22,577		11.4	%		459		2.8	%
Retail - Other		93		22,121		11.1	%		1,731		10.6	%
Retail Total		353		69,711		35.1	%		2,908		17.8	%
Industrial - Warehouse/Distribution		19		22,276		11.2	%		2,962		18.1	%
Industrial - Manufacturing		42		20,328		10.2	%		4,415		27.0	%
Industrial - Flex		10		12,506		6.3	%		1,671		10.2	%
Industrial - Other		6		7,230		3.7	%		779		4.8	%
Industrial Total		77		62,340		31.4	%		9,827		60.1	%
Healthcare - Clinical		44		22,249		11.2	%		1,098		6.7	%
Healthcare - Surgical		13		9,715		4.9	%		322		2.0	%
Healthcare - Other		35		8,390		4.2	%		340		2.1	%
Healthcare Total		92		40,354		20.3	%		1,760		10.8	%
Office Total		15		18,869		9.5	%		1,369		8.4	%
Other Total		13		7,343		3.7	%		474		2.9	%
Total		550	$	198,617		100.0	%		16,338		100.0	%

Diversification: Tenant Industry(unaudited, rent percentages based on contractual rent over the next twelve months)

Industry	# Properties		NTM Rent ($'000s)		NTM Rent as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
Restaurants		262	$	48,254		24.3	%		1,212		7.4	%
Healthcare Facilities		80		34,991		17.6	%		1,416		8.7	%
Home Furnishing Retail		17		9,519		4.8	%		1,012		6.2	%
Specialized Consumer Services		37		9,451		4.8	%		741		4.5	%
Packaged Foods & Meats		5		8,796		4.4	%		727		4.4	%
Auto Parts & Equipment		31		8,745		4.4	%		2,008		12.3	%
Healthcare Services		11		5,453		2.7	%		334		2.0	%
Industrial Conglomerates		2		4,513		2.3	%		545		3.3	%
Multi-line Insurance		2		3,997		2.0	%		407		2.5	%
Life Sciences Tools & Services		5		3,912		2.0	%		301		1.8	%
Distributors		10		3,908		2.0	%		336		2.1	%
Air Freight & Logistics		2		3,598		1.8	%		226		1.4	%
Industrial Machinery		11		3,496		1.8	%		782		4.8	%
Aerospace & Defense		5		3,443		1.7	%		690		4.2	%
Metal & Glass Containers		3		3,158		1.6	%		516		3.2	%
All others (28)		67		43,383		21.8	%		5,085		31.2	%
Total Industries		550	$	198,617		100.0	%		16,338		100.0	%

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 16

Q1 2018 SUPPLEMENTAL INFORMATION

Diversification: Geography

(unaudited, rent percentages based on contractual rent over the next twelve months)

TOTAL PROPERTIES: 550 TOTAL STATES: 40

State	# Properties		NTM Rent ($'000s)		NTM Rent as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio			State	# Properties		NTM Rent ($'000s)		NTM Rent as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
TX		47	$	19,576		9.9	%		1,801		11.0	%	LA		2	$	2,726		1.4	%		161		1.0	%
FL		48		15,717		7.9	%		725		4.4	%	NM		7		2,372		1.2	%		77		0.5	%
WI		30		14,027		7.1	%		1,365		8.4	%	KS		7		2,348		1.2	%		72		0.4	%
MI		25		13,157		6.6	%		1,255		7.7	%	AZ		3		2,092		1.1	%		139		0.9	%
NC		27		9,783		4.9	%		1,090		6.7	%	WA		12		2,026		1.0	%		103		0.6	%
PA		16		8,988		4.5	%		1,067		6.5	%	UT		5		1,976		1.0	%		149		0.9	%
MN		15		8,568		4.3	%		1,101		6.7	%	IA		1		1,665		0.8	%		411		2.5	%
IL		16		8,522		4.3	%		768		4.7	%	MA		2		1,652		0.8	%		309		1.9	%
OH		31		8,311		4.2	%		612		3.8	%	CT		2		1,583		0.8	%		55		0.3	%
CA		9		8,084		4.1	%		674		4.1	%	WV		8		1,571		0.8	%		36		0.2	%
AL		45		7,728		3.9	%		173		1.1	%	NE		5		1,552		0.8	%		164		1.0	%
NY		13		7,647		3.9	%		413		2.5	%	CO		4		1,391		0.7	%		100		0.6	%
AR		11		7,129		3.6	%		284		1.7	%	MD		3		1,310		0.7	%		99		0.6	%
OK		30		6,202		3.1	%		623		3.8	%	SC		5		1,272		0.6	%		200		1.2	%
IN		21		6,135		3.1	%		635		3.9	%	NV		2		1,256		0.6	%		81		0.5	%
TN		32		5,504		2.8	%		171		1.1	%	NJ		3		778		0.4	%		17		0.1	%
GA		20		4,266		2.1	%		616		3.8	%	DE		3		650		0.3	%		35		0.2	%
VA		12		3,858		1.9	%		73		0.5	%	WY		1		279		0.1	%		21		0.1	%
KY		16		3,500		1.8	%		156		1.0	%	MS		1		257		0.1	%		7		0.1	%
MO		9		3,063		1.5	%		496		3.0	%	OR		1		96		0.1	%		4		<0.1	%
													Total		550	$	198,617		100.0	%		16,338		100.0	%

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 17

Q1 2018 SUPPLEMENTAL INFORMATION

Lease Expirations

(unaudited, rent percentages based on contractual rent over the next twelve months)

WEIGHTED AVERAGE
REMAINING LEASE TERM: 13.0 YRS

Expiration Year	# Properties		NTM Rent ($'000s)		NTM Rent as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
2018		1		73		<0.1	%		2		<0.1	%
2019		2		281		0.1	%		8		<0.1	%
2020		3		1,106		0.6	%		95		0.6	%
2021		4		580		0.3	%		9		0.1	%
2022		3		2,459		1.2	%		87		0.5	%
2023		11		6,259		3.2	%		694		4.2	%
2024		15		14,114		7.1	%		1,741		10.7	%
2025		8		1,042		0.5	%		28		0.2	%
2026		28		12,050		6.1	%		801		4.9	%
2027		35		18,690		9.4	%		1,726		10.6	%
2028		30		15,159		7.6	%		1,469		9.0	%
2029		62		17,982		9.1	%		2,664		16.3	%
Thereafter		348		108,822		54.8	%		7,014		42.9	%

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 18

Q1 2018 SUPPLEMENTAL INFORMATION

Portfolio Occupancy

(unaudited, based upon square feet)

Dividends Paid Per Share

(unaudited)

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Year-to-date total return through March 31, 2018, assuming dividend reinvestment, was 1.60%.

On May 8, 2018, the Determined Share Value of our common stock was increased 2.5%, from $81.00 to $83.00. Year-to-date total return, assuming dividend reinvestment, through May 31, 2018 is projected to be 5.2%.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 19

Q1 2018 SUPPLEMENTAL INFORMATION

Important Disclosures and Definitions Regarding Broadstone Net Lease, Inc. (BNL)

Not an offer to sell securities: Offers to sell interests in BNL are made exclusively through BNL’s Private Placement Memorandum (PPM). Offers, solicitations, and sales are not made in jurisdictions where not lawful or prohibited. Securities are not offered to residents of Arizona.

BNL’s securities are privately offered: BNL’s securities have not been registered under the Securities Act of 1933, as amended (the “Securities Act”). BNL conducts its private offering in reliance upon the exemptions from Securities Act registration provided by Rule 506(c) under Regulation D promulgated under the Securities Act and Section 4(a)(2) of the Securities Act and certain state securities laws. BNL’s securities have not been approved or disapproved by the U.S. Securities and Exchange Commission (the “SEC”), the attorney general of the State of New York, any other state securities commission or any other regulatory authority, nor have any of the foregoing passed upon the accuracy or adequacy of the information presented. Any representation to the contrary is a criminal offense.

BNL files public reports with the SEC: BNL has registered its shares of common stock pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). BNL is subject to the registration requirements of Section 12(g) of the Exchange Act because as of December 31, 2016, the aggregate value of its assets exceeded the applicable threshold and its common stock was held of record by 2,000 or more persons. As a result of the registration of its common stock pursuant to the Exchange Act, BNL is subject to the requirements of the Exchange Act and the rules promulgated thereunder. In particular, BNL is required to file Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K, and Current Reports on Form 8-K and otherwise comply with the disclosure obligations of the Exchange Act applicable to issuers filing registration statements to register a class of securities pursuant to Section 12(g) of the Exchange Act.

Investment Company Act: BNL’s securities are not subject to the protections of the Investment Company Act of 1940, as amended.

Accredited investors only: BNL’s securities are only offered and sold to “accredited investors,” as defined under the U.S. securities laws, pursuant to BNL’s PPM and related subscription documents. Individuals are accredited investors only if they meet certain minimum net worth

or sustained annual income thresholds. Entities are accredited investors only if they hold sufficient assets or are completely owned by accredited investors. Please see the definition on the SEC website. http://www.sec.gov/answers/accred.htm

Transfers restricted; No trading market: Transfers of BNL’s securities are restricted by federal and state securities laws and certain provisions of our organizational documents. There is no trading market for the shares and there can be no assurance that such a market will develop in the foreseeable future. BNL’s securities may not be transferred, resold, or otherwise disposed of by an investor unless, in the opinion of counsel acceptable to us, registration under federal and applicable state securities laws is not required or compliance is made with the registration requirements of such laws.

Liquidity of BNL’s securities is limited: Redemptions of BNL’s securities are limited in amount and require that the shares have been held for required periods. Provisions of state law, REIT requirements, and other matters may limit redemptions.

Investments involve significant risks: An investment in BNL’s securities involves significant risks. Only investors who can bear the economic risk of an investment of this type for an indefinite period of time and the risk of loss of their entire investment should invest in BNL’s securities. Factors that may cause our actual results, performance, or achievements to differ materially from our stated expectations include, among others: general economic conditions; local real estate conditions in the markets where our properties are located; financial difficulties of our tenants; loss of key personnel; interest rates rising; compliance with REIT requirements; and continued access to capital to fund growth. See the section entitled “Risk Factors” in our PPM for additional information.

This is not investment, financial, legal, or tax advice: This information is not investment, financial, legal, or tax advice and has been prepared without reference to any reader’s investment profile or financial circumstances. You should obtain financial and tax advice and conduct diligent investigation of information material to you before making any investment decision.

Performance data; Stock price: The value of investments and the income or distributions from investments may fall or rise. BNL’s stock price is not set by any market in the common stock but by our independent directors based on the net asset value of our portfolio of properties determined as described in the PPM. We are not required by law to follow any particular methodology in setting the stock price (referred to in our organizational documents as the Determined Share Value”). There may be variations from time to time in how our independent directors apply or weight the criteria described in the PPM in setting the stock price.

No guarantee of future performance: The information contained herein represents the past performance of BNL. Past performance is not a

guarantee of future performance. The current performance of BNL may be lower or higher than the past performance. Distributions are made at the discretion of BNL’s board of directors and past practices are not guarantees of the timing or amount of future distributions.

Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO): Our reported results and net earnings per dilutive share are presented in accordance with accounting principles generally accepted in the United States of America (GAAP). We also disclose FFO and AFFO, each of which are non-GAAP measures. We believe the use of FFO and AFFO are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO and AFFO should not be considered alternatives to net income as a performance measure or to cash flows from operations, as reported on our statement of cash flows, or as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures.

We compute FFO in accordance with the standards established by the 2002 White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gains (losses) from sales of depreciated real estate assets, depreciation and amortization expense from real estate assets, and impairment charges related to previously depreciated real estate assets. To derive AFFO, we modify the NAREIT computation of FFO to include other adjustments to GAAP net income related to certain non-cash revenues and expenses, including straight-line rents, cost of debt extinguishments, amortization of debt issuance costs, amortization of net mortgage premiums, amortization of lease intangibles, (gain) loss on interest rate swaps and other non-cash interest expense, extraordinary items and other specified non-cash items. We believe that such items are not a result of normal operations and thus we believe excluding such items assists management and investors in distinguishing whether changes in our operations are due to growth or decline of operations at our properties or from other factors.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. 20